As filed with the SEC on June 26, 2007.
UNITED STATES
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 | ||||||||
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TRANSAMERICA IDEX MUTUAL FUNDS | |||||||||
(Exact name of registrant as specified in charter) | |||||||||
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570 Carillon Parkway, St. Petersburg, Florida |
| 33716 | |||||||
(Address of principal executive offices) |
| (Zip code) | |||||||
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Dennis P. Gallagher, Esq. P.O. Box 9012, Clearwater, Florida 33758-9771 | |||||||||
(Name and address of agent for service) | |||||||||
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Registrant’s telephone number, including area code: | (727) 299-1800 |
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Date of fiscal year end: | October 31 |
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Date of reporting period: | November 1, 2006 – April 30, 2007 |
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Item 1: Report(s) to Shareholders. The Semi-Annual Report is attached.
Transamerica IDEX
Semi-Annual Report • April 30, 2007
www.TransamericaIDEX.com
Customer Service: 1-888-233-IDEX (4339)
P.O. Box 9012, Clearwater, FL 33758-9012
Distributor: Transamerica Capital, Inc., Member NASD
SARCVR0707
Not insured by FDIC or any federal government agency. May lose value. Not a deposit of or guaranteed by any bank, bank affiliate, or credit union.
Dear Fellow Shareholder,
On behalf of Transamerica IDEX Mutual Funds, I 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 advisor in the future. We value the trust you have placed in us.
This semi-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 recognize and understand current market conditions in order to provide a context for reading this report. The Federal Reserve's decision to keep the federal funds rate at 5.25% during the past six months has been somewhat of a neutral factor in the markets during the period as investors sought to digest other news regarding general inflation, corporate earnings, GDP growth, energy prices, and the housing markets. Worries over inflation and rising energy prices have been coupled with concerns over a slowdown in the housing markets and subprime lending. However, absent a sharp correction phase during late February and early March, markets have generally been quite resilient to these concerns. For the six months ending April 30, 2007, the Dow Jones Industrial Average returned 9.41%, while the Standard & Poor's 500 Index returned 8.60%. Please keep in mind it is important to maintain a diversified p ortfolio 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 advisor is a key resource to help you build a complete picture of your current and future financial needs. Financial advisors are familiar with the market's history, including long-term returns and volatility of various asset classes.
With your financial advisor, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.
Please contact your financial advisor if you have any questions about the contents of this report, and thanks again for the confidence you have placed in us.
Sincerely,
John Carter President & Chief Executive Officer Transamerica IDEX Mutual Funds | Christopher Staples Senior Vice President – Investment Management Transamerica IDEX Mutual Funds | ||||||
TA IDEX American Century Large Company Value
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,086.00 | 1.21 | % | $ | 6.26 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,018.79 | 1.21 | 6.06 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,086.60 | 1.23 | 6.36 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.70 | 1.23 | 6.16 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,086.00 | 1.12 | 5.79 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,019.24 | 1.12 | 5.61 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,088.30 | 0.86 | 4.45 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.53 | 0.86 | 4.31 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 1
TA IDEX American Century Large Company Value
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (96.5%) | |||||||||||
Aerospace (0.9%) | |||||||||||
Northrop Grumman Corp. | 81,000 | $ | 5,962 | ||||||||
Apparel & Accessory Stores (0.5%) | |||||||||||
Gap (The), Inc. | 200,300 | 3,595 | |||||||||
Apparel Products (1.3%) | |||||||||||
Liz Claiborne, Inc. | 101,100 | 4,521 | |||||||||
V.F. Corp. | 52,200 | 4,584 | |||||||||
Beverages (2.0%) | |||||||||||
Coca-Cola Co. (The) | 157,200 | 8,204 | |||||||||
Pepsi Bottling Group, Inc. | 158,800 | 5,210 | |||||||||
Business Credit Institutions (2.5%) | |||||||||||
Freddie Mac | 262,300 | 16,992 | |||||||||
Chemicals & Allied Products (2.1%) | |||||||||||
du Pont (E.I.) de Nemours & Co. | 124,600 | 6,127 | |||||||||
PPG Industries, Inc. | 107,800 | 7,932 | |||||||||
Commercial Banks (17.6%) | |||||||||||
Bank of America Corp. | 436,600 | 22,223 | |||||||||
Bank of New York Co., Inc. (The) | 156,200 | 6,323 | |||||||||
Citigroup, Inc. | 596,400 | 31,979 | |||||||||
JP Morgan Chase & Co. | 317,800 | 16,557 | |||||||||
National City Corp. | 112,800 | 4,123 | |||||||||
PNC Financial Services Group, Inc. | 60,600 | 4,491 | |||||||||
US Bancorp | 264,100 | 9,072 | |||||||||
Wachovia Corp. | 193,800 | 10,764 | |||||||||
Wells Fargo & Co. | 409,400 | 14,693 | |||||||||
Communications Equipment (0.2%) | |||||||||||
Motorola, Inc. | 95,100 | 1,648 | |||||||||
Computer & Data Processing Services (2.6%) | |||||||||||
Fiserv, Inc. ‡ | 65,700 | 3,493 | |||||||||
Microsoft Corp. | 348,300 | 10,428 | |||||||||
Oracle Corp. ‡ | 218,100 | 4,100 | |||||||||
Computer & Office Equipment (2.6%) | |||||||||||
Hewlett-Packard Co. | 222,300 | 9,368 | |||||||||
International Business Machines Corp. | 83,800 | 8,565 | |||||||||
Electric Services (1.4%) | |||||||||||
PPL Corp. | 214,900 | 9,372 | |||||||||
Electric, Gas & Sanitary Services (2.9%) | |||||||||||
Exelon Corp. | 153,100 | 11,545 | |||||||||
NiSource, Inc. | 161,100 | 3,961 | |||||||||
Waste Management, Inc. | 107,400 | 4,018 | |||||||||
Electronic & Other Electric Equipment (1.8%) | |||||||||||
General Electric Co. | 323,700 | 11,932 |
Shares | Value | ||||||||||
Electronic Components & Accessories (1.6%) | |||||||||||
Intel Corp. | 143,600 | $ | 3,087 | ||||||||
Tyco International, Ltd. | 247,700 | 8,082 | |||||||||
Fabricated Metal Products (0.7%) | |||||||||||
Parker Hannifin Corp. | 51,000 | 4,699 | |||||||||
Finance (0.9%) | |||||||||||
SPDR Trust Series 1 † | 43,500 | 6,450 | |||||||||
Food & Kindred Products (2.4%) | |||||||||||
Altria Group, Inc. | 109,900 | 7,574 | |||||||||
Unilever NV-NY Shares | 281,000 | 8,571 | |||||||||
Food Stores (0.6%) | |||||||||||
Kroger Co. | 146,300 | 4,317 | |||||||||
Health Services (0.2%) | |||||||||||
Quest Diagnostics, Inc. | 34,300 | 1,677 | |||||||||
Industrial Machinery & Equipment (3.3%) | |||||||||||
Applied Materials, Inc. | 93,600 | 1,799 | |||||||||
Caterpillar, Inc. | 47,000 | 3,413 | |||||||||
Deere & Co. | 45,200 | 4,945 | |||||||||
Dover Corp. | 90,700 | 4,365 | |||||||||
Ingersoll-Rand Co.–Class A | 136,700 | 6,104 | |||||||||
National Oilwell Varco, Inc. ‡ | 23,000 | 1,952 | |||||||||
Instruments & Related Products (0.7%) | |||||||||||
Xerox Corp. ‡ | 241,500 | 4,468 | |||||||||
Insurance (4.6%) | |||||||||||
Allstate Corp. (The) | 133,100 | 8,295 | |||||||||
American International Group, Inc. | 182,400 | 12,752 | |||||||||
Loews Corp. | 131,700 | 6,232 | |||||||||
MGIC Investment Corp. † | 64,800 | 3,992 | |||||||||
Insurance Agents, Brokers & Service (1.8%) | |||||||||||
Hartford Financial Services Group, Inc. (The) | 81,100 | 8,207 | |||||||||
Marsh & McLennan Cos., Inc. | 126,900 | 4,030 | |||||||||
Life Insurance (0.6%) | |||||||||||
Torchmark Corp. | 63,900 | 4,364 | |||||||||
Lumber & Other Building Materials (0.8%) | |||||||||||
Home Depot, Inc. (The) | 137,500 | 5,207 | |||||||||
Lumber & Wood Products (1.1%) | |||||||||||
Weyerhaeuser Co. | 94,500 | 7,486 | |||||||||
Motion Pictures (1.8%) | |||||||||||
Time Warner, Inc. | 585,400 | 12,077 | |||||||||
Oil & Gas Extraction (3.5%) | |||||||||||
Anadarko Petroleum Corp. | 56,000 | 2,613 | |||||||||
Devon Energy Corp. | 42,700 | 3,112 | |||||||||
Royal Dutch Shell PLC–Class A, ADR | 259,600 | 18,003 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 2
TA IDEX American Century Large Company Value
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Personal Services (0.5%) | |||||||||||
H&R Block, Inc. † | 159,300 | $ | 3,602 | ||||||||
Petroleum Refining (9.8%) | |||||||||||
Chevron Corp. | 265,200 | 20,630 | |||||||||
ConocoPhillips | 191,700 | 13,294 | |||||||||
Exxon Mobil Corp. | 413,700 | 32,840 | |||||||||
Pharmaceuticals (8.0%) | |||||||||||
Abbott Laboratories | 178,900 | 10,129 | |||||||||
Amgen, Inc. ‡ | 40,800 | 2,617 | |||||||||
Johnson & Johnson | 152,400 | 9,787 | |||||||||
Lilly (Eli) & Co. | 72,600 | 4,293 | |||||||||
Merck & Co., Inc. | 101,100 | 5,201 | |||||||||
Pfizer, Inc. | 488,800 | 12,934 | |||||||||
Wyeth | 175,100 | 9,718 | |||||||||
Primary Metal Industries (0.4%) | |||||||||||
Nucor Corp. | 47,700 | 3,027 | |||||||||
Printing & Publishing (1.8%) | |||||||||||
Gannett Co., Inc. † | 123,900 | 7,070 | |||||||||
RR Donnelley & Sons Co. † | 124,300 | 4,997 | |||||||||
Radio & Television Broadcasting (0.8%) | |||||||||||
Viacom, Inc.–Class B ‡ | 127,700 | 5,268 | |||||||||
Restaurants (1.0%) | |||||||||||
McDonald's Corp. | 137,600 | 6,643 | |||||||||
Retail Trade (0.9%) | |||||||||||
Wal-Mart Stores, Inc. | 127,000 | 6,086 | |||||||||
Rubber & Misc. Plastic Products (0.6%) | |||||||||||
Newell Rubbermaid, Inc. | 139,400 | 4,275 | |||||||||
Savings Institutions (1.1%) | |||||||||||
Washington Mutual, Inc. | 184,300 | 7,737 | |||||||||
Security & Commodity Brokers (3.4%) | |||||||||||
Merrill Lynch & Co., Inc. | 126,800 | 11,441 | |||||||||
Morgan Stanley | 138,400 | 11,627 | |||||||||
Telecommunications (5.2%) | |||||||||||
AT&T, Inc. d | 513,300 | 19,875 | |||||||||
Sprint Nextel Corp. | 313,500 | 6,279 | |||||||||
Verizon Communications, Inc. | 237,500 | 9,068 | |||||||||
Total Common Stocks (cost: $582,893) | 658,093 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (2.6%) | |||||||||||
Debt (2.6%) | |||||||||||
Bank Notes (0.2%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 560 | $ | 560 | |||||||
5.27%, due 06/18/2007 * | 560 | 560 |
Principal | Value | ||||||||||
Commercial Paper (0.6%) | |||||||||||
Bear Stearns & Co. | |||||||||||
5.31%, due 07/10/2007 | $ | 224 | $ | 224 | |||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 217 | 217 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 149 112 | 149 112 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 112 | 112 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 112 | 112 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 112 | 112 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 112 112 | 112 112 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 224 | 224 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 219 | 219 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 224 | 224 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 224 | 224 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 444 112 112 | 444 112 112 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 112 112 112 148 | 112 112 112 148 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 168 | 168 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 112 | 112 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 224 | 224 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 112 | 112 | |||||||||
Euro Dollar Overnight (0.3%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 112 | 112 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 224 | 224 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 3
TA IDEX American Century Large Company Value
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
Deutsche Bank | |||||||||||
5.28%, due 05/03/2007 | $ | 224 | $ | 224 | |||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 224 | 224 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 224 | 224 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 224 | 224 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 224 | 224 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 112 | 112 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 224 | 224 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 425 | 425 | |||||||||
Euro Dollar Terms (0.9%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 224 | 224 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 112 | 112 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 157 | 157 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 224 224 112 112 224 | 224 224 112 112 224 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 112 224 | 112 224 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 336 112 | 336 112 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 224 | 224 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 224 | 224 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 336 336 224 | 336 336 224 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 336 | 336 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Royal Bank of Scotland | |||||||||||
5.30%, due 05/08/2007 | $ | 224 | $ | 224 | |||||||
5.30%, due 05/09/2007 | 112 | 112 | |||||||||
5.31%, due 05/25/2007 | 224 | 224 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 112 | 112 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 224 | 224 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 224 | 224 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 224 448 336 560 | 224 448 336 560 | |||||||||
Repurchase Agreements (0.6%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $620 on 05/01/2007 | 620 | 620 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,464 on 05/01/2007 | 2,464 | 2,464 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,079 on 05/01/2007 | 1,079 | 1,079 | |||||||||
Total Security Lending Collateral (cost: $17,962) | 17,962 | ||||||||||
Total Investment Securities (cost: $600,855) # | $ | 676,055 | |||||||||
FUTURES CONTRACTS: |
Contracts u | Settlement Date | Amount | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
S&P 500 E-mini Index | 80 | 06/15/2007 | $ | 5,954 | $ | 7 | |||||||||||||
$ | 5,954 | $ | 7 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 4
TA IDEX American Century Large Company Value
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $17,385.
d At April 30, 2007, all or a portion of this security is segregated with the custodian to cover margin requirements for open futures contracts. The value of all securities segregated at April 30, 2007 is $3,864.
u Contract amounts are not in thousands.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $4,271, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $601,696. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $76,867 and $2,508, respectively. Net unrealized appreciation for tax purposes is $74,359.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $3,361 or 0.5% of the net assets of the Fund.
ADR American Depositary Receipt
SPDR Standard & Poor's Depository Receipts
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 5
TA IDEX American Century Large Company Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $600,855) (including securities loaned of $17,385) | $ | 676,055 | |||||
Cash | 23,534 | ||||||
Receivables: | |||||||
Shares of beneficial interest sold | 519 | ||||||
Interest | 82 | ||||||
Income from loaned securities | 1 | ||||||
Dividends | 742 | ||||||
Other | 9 | ||||||
700,942 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 20 | ||||||
Management and advisory fees | 452 | ||||||
Transfer agent fees | 12 | ||||||
Administration fees | 11 | ||||||
Payable for collateral for securities on loan | 17,962 | ||||||
Variation margin | 54 | ||||||
Other | 38 | ||||||
18,549 | |||||||
Net Assets | $ | 682,393 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 602,392 | |||||
Undistributed (accumulated) net investment income (loss) | 2,788 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities and futures contracts | 2,006 | ||||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | 75,200 | ||||||
Futures contracts | 7 | ||||||
Net Assets | $ | 682,393 | |||||
Net Assets by Class: | |||||||
Class A | $ | 7,654 | |||||
Class B | 11,786 | ||||||
Class C | 5,066 | ||||||
Class I | 657,887 | ||||||
Shares Outstanding: | |||||||
Class A | 602 | ||||||
Class B | 959 | ||||||
Class C | 413 | ||||||
Class I | 51,845 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 12.71 | |||||
Class B | 12.29 | ||||||
Class C | 12.25 | ||||||
Class I | 12.69 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 13.45 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $47) | $ | 5,716 | |||||
Interest | 536 | ||||||
Income from loaned securities-net | 50 | ||||||
6,302 | |||||||
Expenses: | |||||||
Management and advisory fees | 2,044 | ||||||
Transfer agent fees: | |||||||
Class A | 14 | ||||||
Class B | 23 | ||||||
Class C | 7 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 6 | ||||||
Custody fees | 24 | ||||||
Administration fees | 50 | ||||||
Legal fees | 5 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 8 | ||||||
Other | 3 | ||||||
Total expenses | 2,194 | ||||||
Net Investment Income (Loss) | 4,108 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 3,672 | ||||||
Futures contracts | (867 | ) | |||||
2,805 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 36,265 | ||||||
Futures contracts | 7 | ||||||
36,272 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Futures Contracts | 39,077 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 43,185 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 6
TA IDEX American Century Large Company Value
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) In Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 4,108 | $ | 4,997 | |||||||
Net realized gain (loss) from investment securities and futures contracts | 2,805 | 19,571 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and futures contracts | 36,272 | 28,231 | |||||||||
43,185 | 52,799 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (72 | ) | (616 | ) | |||||||
Class B | (99 | ) | (35 | ) | |||||||
Class C | (45 | ) | (15 | ) | |||||||
Class I | (4,641 | ) | (794 | ) | |||||||
(4,857 | ) | (1,460 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (425 | ) | (372 | ) | |||||||
Class B | (684 | ) | (629 | ) | |||||||
Class C | (279 | ) | (255 | ) | |||||||
Class I | (18,093 | ) | (10,623 | ) | |||||||
(19,481 | ) | (11,879 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 22 | 173 | |||||||||
Class B | 10 | 203 | |||||||||
Class C | 36 | 119 | |||||||||
Class I | 300,736 | 458,905 | |||||||||
300,804 | 459,400 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 490 | 983 | |||||||||
Class B | 739 | 617 | |||||||||
Class C | 248 | 218 | |||||||||
Class I | 22,734 | 11,417 | |||||||||
24,211 | 13,235 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (1,566 | ) | (406,544 | ) | |||||||
Class B | (2,280 | ) | (6,192 | ) | |||||||
Class C | (622 | ) | (2,870 | ) | |||||||
Class I | (555 | ) | (183,634 | ) | |||||||
(5,023 | ) | (599,240 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | – | (b) | ||||||||
Class B | – | – | (b) | ||||||||
Class C | – | – | (b) | ||||||||
– | – | (b) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 86 | $ | 40 | |||||||
Class B | (86 | ) | (40 | ) | |||||||
– | – | ||||||||||
319,992 | (126,605 | ) | |||||||||
Net increase (decrease) in net assets | 338,839 | (87,145 | ) | ||||||||
Net Assets: | |||||||||||
Beginning of period | 343,554 | 430,699 | |||||||||
End of period | $ | 682,393 | $ | 343,554 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 2,788 | $ | 3,537 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 2 | 15 | |||||||||
Class B | 1 | 19 | |||||||||
Class C | 3 | 11 | |||||||||
Class I | 24,575 | 40,760 | |||||||||
24,581 | 40,805 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 40 | 88 | |||||||||
Class B | 63 | 58 | |||||||||
Class C | 21 | 20 | |||||||||
Class I | 1,888 | 1,040 | |||||||||
2,012 | 1,206 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (127 | ) | (36,455 | ) | |||||||
Class B | (192 | ) | (565 | ) | |||||||
Class C | (53 | ) | (262 | ) | |||||||
Class I | (45 | ) | (16,373 | ) | |||||||
(417 | ) | (53,655 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 7 | 4 | |||||||||
Class B | (7 | ) | (4 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (78 | ) | (36,348 | ) | |||||||
Class B | (135 | ) | (492 | ) | |||||||
Class C | (29 | ) | (231 | ) | |||||||
Class I | 26,418 | 25,427 | |||||||||
26,176 | (11,644 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 7
TA IDEX American Century Large Company Value
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 12.44 | $ | 0.09 | $ | 0.94 | $ | 1.03 | $ | (0.11 | ) | $ | (0.65 | ) | $ | (0.76 | ) | $ | 12.71 | |||||||||||||||||||
10/31/2006 | 10.98 | 0.39 | 1.50 | 1.89 | (0.02 | ) | (0.41 | ) | (0.43 | ) | 12.44 | ||||||||||||||||||||||||||||
10/31/2005 | 10.20 | 0.13 | 0.80 | 0.93 | (0.15 | ) | – | (0.15 | ) | 10.98 | |||||||||||||||||||||||||||||
10/31/2004 | 9.09 | 0.11 | 1.01 | 1.12 | (0.01 | ) | – | (0.01 | ) | 10.20 | |||||||||||||||||||||||||||||
10/31/2003 | 7.55 | 0.04 | 1.50 | 1.54 | – | – | – | 9.09 | |||||||||||||||||||||||||||||||
10/31/2002 | 8.79 | 0.01 | (1.25 | ) | (1.24 | ) | – | – | – | 7.55 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 12.03 | 0.08 | 0.92 | 1.00 | (0.09 | ) | (0.65 | ) | (0.74 | ) | 12.29 | |||||||||||||||||||||||||||
10/31/2006 | 10.67 | 0.11 | 1.68 | 1.79 | (0.02 | ) | (0.41 | ) | (0.43 | ) | 12.03 | ||||||||||||||||||||||||||||
10/31/2005 | 9.88 | 0.02 | 0.77 | 0.79 | – | – | – | 10.67 | |||||||||||||||||||||||||||||||
10/31/2004 | 8.87 | 0.02 | 1.00 | 1.02 | (0.01 | ) | – | (0.01 | ) | 9.88 | |||||||||||||||||||||||||||||
10/31/2003 | 7.41 | (0.01 | ) | 1.47 | 1.46 | – | – | – | 8.87 | ||||||||||||||||||||||||||||||
10/31/2002 | 8.69 | (0.05 | ) | (1.23 | ) | (1.28 | ) | – | – | – | 7.41 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 12.01 | 0.09 | 0.90 | 0.99 | (0.10 | ) | (0.65 | ) | (0.75 | ) | 12.25 | |||||||||||||||||||||||||||
10/31/2006 | 10.64 | 0.12 | 1.68 | 1.80 | (0.02 | ) | (0.41 | ) | (0.43 | ) | 12.01 | ||||||||||||||||||||||||||||
10/31/2005 | 9.86 | 0.02 | 0.77 | 0.79 | (0.01 | ) | – | (0.01 | ) | 10.64 | |||||||||||||||||||||||||||||
10/31/2004 | 8.87 | – | 1.00 | 1.00 | (0.01 | ) | – | (0.01 | ) | 9.86 | |||||||||||||||||||||||||||||
10/31/2003 | 7.32 | (0.01 | ) | 1.56 | 1.55 | – | – | – | 8.87 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 12.45 | 0.10 | 0.96 | 1.06 | (0.17 | ) | (0.65 | ) | (0.82 | ) | 12.69 | |||||||||||||||||||||||||||
10/31/2006 | 11.15 | 0.17 | 1.57 | 1.74 | (0.03 | ) | (0.41 | ) | (0.44 | ) | 12.45 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 8.60 | % | $ | 7,654 | 1.21 | % | 1.21 | % | 1.44 | % | 4 | % | ||||||||||||||||||
10/31/2006 | 17.66 | 8,453 | 1.30 | 1.30 | 3.44 | (i) | 24 | ||||||||||||||||||||||||
10/31/2005 | 9.10 | 406,609 | 1.31 | (h) | 1.31 | (h) | 1.16 | (i) | 28 | ||||||||||||||||||||||
10/31/2004 | 12.38 | 157,103 | 1.54 | 1.54 | 1.11 | 61 | |||||||||||||||||||||||||
10/31/2003 | 20.40 | 8,988 | 1.85 | 2.56 | 0.53 | 76 | |||||||||||||||||||||||||
10/31/2002 | (14.15 | ) | 7,908 | 1.80 | 2.43 | 0.09 | 161 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 8.66 | 11,786 | 1.23 | 1.23 | 1.43 | 4 | ||||||||||||||||||||||||
10/31/2006 | 17.29 | 13,169 | 1.64 | 1.64 | 1.01 | (i) | 24 | ||||||||||||||||||||||||
10/31/2005 | 8.01 | 16,927 | 2.36 | (h) | 2.36 | (h) | 0.23 | (i) | 28 | ||||||||||||||||||||||
10/31/2004 | 11.54 | 18,612 | 2.32 | 2.32 | 0.20 | 61 | |||||||||||||||||||||||||
10/31/2003 | 19.70 | 17,245 | 2.50 | 3.21 | (0.12 | ) | 76 | ||||||||||||||||||||||||
10/31/2002 | (14.76 | ) | 14,446 | 2.45 | 3.08 | (0.56 | ) | 161 | |||||||||||||||||||||||
Class C | 4/30/2007 | 8.60 | 5,066 | 1.12 | 1.12 | 1.53 | 4 | ||||||||||||||||||||||||
10/31/2006 | 17.45 | 5,301 | 1.59 | 1.59 | 1.07 | (i) | 24 | ||||||||||||||||||||||||
10/31/2005 | 7.93 | 7,163 | 2.42 | (h) | 2.42 | (h) | 0.16 | (i) | 28 | ||||||||||||||||||||||
10/31/2004 | 11.38 | 7,586 | 2.50 | 2.54 | 0.04 | 61 | |||||||||||||||||||||||||
10/31/2003 | 21.17 | 1,230 | 2.50 | 3.21 | (0.12 | ) | 76 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 8.83 | 657,887 | 0.86 | 0.86 | 1.65 | 4 | ||||||||||||||||||||||||
10/31/2006 | 16.11 | 316,631 | 0.91 | 0.91 | 1.57 | 24 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 8
TA IDEX American Century Large Company Value
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Ratios of Total Expenses to Average Net Assets and net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment advisor, if any. The impact of recaptured expenses was 0.06%, 0.06% and 0.07% for Class A, Class B and Class C, respectively (see Note 2).
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The Impact of Redemption Fees is less than 0.01% for Class A, Class B, and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 9
TA IDEX American Century Large Company Value
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX American Century Large Company Value (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Classes A, B, and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $21, earned by IBT for its services.
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 Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received no redemption fees.
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.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 10
TA IDEX American Century Large Company Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation – Conservative Portfolio | $ | 23,694 | 3.47 | % | |||||||
TA IDEX Asset Allocation – Growth Portfolio | 221,741 | 32.49 | % | ||||||||
TA IDEX Asset Allocation – Moderate Portfolio | 123,036 | 18.03 | % | ||||||||
TA IDEX Asset Allocation – Moderate Growth Portfolio | 289,416 | 42.41 | % | ||||||||
Total | $ | 657,887 | 96.40 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
From November 1, 2006 to December 31, 2006:
0.85% of the first $250 million of ANA
0.80% of the next $250 million of ANA
0.775% of the next $250 million of ANA
0.70% of ANA over $750 million
From January 1, 2007 on:
0.835% of the first $250 million of ANA
0.80% of the next $150 million of ANA
0.775% of the next $350 million of ANA
0.70% of ANA over $750 million
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.45% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $39 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 11
TA IDEX American Century Large Company Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $9.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $16. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 312,445 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 19,762 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and distribution reclasses.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 12
TA IDEX American Century Large Company Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6.–(continued)
will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 13
TA IDEX American Century Large Company Value
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX American Century Large Company Value (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and American Century Investment Management, Inc. (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreem ent and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. The y 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's fund management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Trustees noted that TFAI and the Sub-Adviser had achieved below median performance, as compared to comparable funds, for the past one-, two- and three-year periods, but noted that TFAI and the Sub-Adviser generally achieved better performance over the longer-term five-year period. The Trustees believed performance could be improved and, in this regard, favorably noted a new management fee schedule with lower fees, which could contribute to improved performance. Also, they noted that TFAI had undertaken to work with the Sub-Adviser to attempt to improve performance. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring fund management services, as well as the costs of its provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and fund turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Trustees noted that although the management fees and overall expense ratio of the Fund are relatively high compared to its peers, a new lower pricing schedule should contribute to lowering the Fund's expense level to the benefit of shareholders. On the basis of its review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 14
TA IDEX American Century Large Company Value (continued)
(derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. The Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environme nt for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requiremen ts in particular. In addition, the Board determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are competitive with industry practices, reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the fund management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX American Century Large Company Value 15
TA IDEX Asset Allocation–Conservative Portfolio
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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. The expenses shown in the table do not reflect any expenses from the Fund's investment in other affiliated investment companies.
The average weighted annualized expense ratio of the underlying investment companies at April 30, 2007, was 0.83%.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,056.60 | 0.59 | % | $ | 3.01 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,021.87 | 0.59 | 2.96 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,053.30 | 1.26 | 6.41 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.55 | 1.26 | 6.31 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,053.50 | 1.22 | 6.21 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.74 | 1.22 | 6.11 | |||||||||||||||
Class R | |||||||||||||||||||
Actual | 1,000.00 | 1,057.10 | 0.70 | 3.57 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,021.32 | 0.70 | 3.51 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Investment Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the aggregate portfolio holdings of the underlying affiliated investment companies in which the Fund invests. The security lending collateral in the underlying funds is excluded from this calculation.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 1
TA IDEX Asset Allocation–Conservative Portfolio
SCHEDULE OF INVESTMENTS ø
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
INVESTMENT COMPANIES (100.1%) | |||||||||||
Aggressive Equity (8.3%) | |||||||||||
TA IDEX Evergreen Health Care | 844,899 | $ | 11,567 | ||||||||
TA IDEX JP Morgan Mid Cap Value | 906,064 | 11,072 | |||||||||
TA IDEX Oppenheimer Small- & Mid-Cap Value | 46,450 | 587 | |||||||||
TA IDEX Transamerica Growth Opportunities ‡ | 790,925 | 7,079 | |||||||||
TA IDEX Transamerica Small/Mid Cap Value | 976,354 | 19,468 | |||||||||
Capital Preservation (3.6%) | |||||||||||
TA IDEX Loomis Sayles Bond | 1,241,017 | 12,646 | |||||||||
TA IDEX Transamerica Money Market | 8,867,966 | 8,868 | |||||||||
Fixed-Income (43.8%) | |||||||||||
TA IDEX PIMCO Real Return TIPS | 4,047,293 | 41,120 | |||||||||
TA IDEX PIMCO Total Return | 8,658,711 | 89,444 | |||||||||
TA IDEX Transamerica Convertible Securities | 810,515 | 10,326 | |||||||||
TA IDEX Transamerica Flexible Income | 3,480,409 | 33,168 | |||||||||
TA IDEX Transamerica High-Yield Bond | 4,544,795 | 43,085 | |||||||||
TA IDEX Transamerica Short-Term Bond | 4,720,935 | 46,690 | |||||||||
Foreign Fixed-Income (10.1%) | |||||||||||
TA IDEX JPMorgan International Bond | 4,276,259 | 45,157 | |||||||||
TA IDEX Van Kampen Emerging Markets Debt | 1,382,442 | 15,442 | |||||||||
Growth & Income (3.3%) | |||||||||||
TA IDEX UBS Dynamic Alpha ‡ | 2,022,987 | 20,210 |
Shares | Value | ||||||||||
Growth Equity (22.8%) | |||||||||||
TA IDEX American Century Large Company Value | 1,867,107 | $ | 23,694 | ||||||||
TA IDEX Bjurman, Barry Micro Emerging Growth ‡ | 25,800 | 286 | |||||||||
TA IDEX BlackRock Large Cap Value | 1,064,294 | 13,676 | |||||||||
TA IDEX BlackRock Natural Resources ‡ | 825,656 | 9,206 | |||||||||
TA IDEX Federated Market Opportunity | 1,038,089 | 9,820 | |||||||||
TA IDEX Jennison Growth | 24,536 | 285 | |||||||||
TA IDEX Marsico Growth | 1,009,471 | 12,104 | |||||||||
TA IDEX Mellon Market Neutral Strategy ‡ | 1,024,427 | 10,336 | |||||||||
TA IDEX Transamerica Equity ‡ | 2,623,065 | 27,280 | |||||||||
TA IDEX UBS Large Cap Value | 2,069,823 | 27,839 | |||||||||
TA IDEX Van Kampen Mid-Cap Growth | 49,822 | 581 | |||||||||
TA IDEX Van Kampen Small Company Growth | 176,669 | 2,339 | |||||||||
Specialty–Real Estate (2.0%) | |||||||||||
TA IDEX Clarion Global Real Estate Securities | 577,142 | 11,803 | |||||||||
World Equity (6.2%) | |||||||||||
TA IDEX AllianceBernstein International Value | 741,091 | 10,272 | |||||||||
TA IDEX BlackRock Global Allocation | 24,539 | 290 | |||||||||
TA IDEX Evergreen International Small Cap | 686,515 | 11,698 | |||||||||
TA IDEX Marsico International Growth | 294,637 | 3,933 | |||||||||
TA IDEX Neuberger Berman International | 406,863 | 5,212 | |||||||||
TA IDEX Oppenheimer Developing Markets | 281,460 | 3,679 | |||||||||
TA IDEX Templeton Transamerica Global | 69,669 | 2,236 | |||||||||
Total Investment Companies (cost: $551,832) # | $ | 602,498 |
NOTES TO SCHEDULE OF INVESTMENTS:
ø The Fund invests its assets in Class I shares of the affiliated Transamerica IDEX Mutual Funds.
‡ Non-income producing.
# Aggregate cost for federal income tax purposes is $551,933. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $51,694 and $1,129, respectively. Net unrealized appreciation for tax purposes is $50,565.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 2
TA IDEX Asset Allocation–Conservative Portfolio
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment in affiliated investment companies at value (cost: $551,832) | $ | 602,498 | |||||
Receivables: | |||||||
Shares of beneficial interest sold | 2,732 | ||||||
Dividends | 17 | ||||||
Other | 17 | ||||||
605,264 | |||||||
Liabilities: | |||||||
Investment securities purchased | 789 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 2,040 | ||||||
Management and advisory fees | 50 | ||||||
Distribution and service fees | 394 | ||||||
Transfer agent fees | 33 | ||||||
Administration fees | 6 | ||||||
Dividends to shareholders | 4 | ||||||
Other | 55 | ||||||
3,371 | |||||||
Net Assets | $ | 601,893 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 536,557 | |||||
Undistributed (accumulated) net investment income (loss) | 465 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment in affiliated investment companies | 14,205 | ||||||
Net unrealized appreciation (depreciation) on investment in affiliated investment companies | 50,666 | ||||||
Net Assets | $ | 601,893 | |||||
Net Assets by Class: | |||||||
Class A | $ | 201,758 | |||||
Class B | 113,539 | ||||||
Class C | 286,181 | ||||||
Class R | 415 | ||||||
Shares Outstanding: | |||||||
Class A | 17,075 | ||||||
Class B | 9,639 | ||||||
Class C | 24,300 | ||||||
Class R | 35 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 11.82 | |||||
Class B | 11.78 | ||||||
Class C | 11.78 | ||||||
Class R | 11.90 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 12.51 |
(a) 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 and R shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends from affiliated investment companies | $ | 14,231 | |||||
Expenses: | |||||||
Management and advisory fees | 280 | ||||||
Distribution and service fees: | |||||||
Class A | 318 | ||||||
Class B | 556 | ||||||
Class C | 1,333 | ||||||
Class R | 1 | ||||||
Transfer agent fees: | |||||||
Class A | 71 | ||||||
Class B | 55 | ||||||
Class C | 87 | ||||||
Class R | – | (b) | |||||
Printing and shareholder reports | 15 | ||||||
Custody fees | 17 | ||||||
Administration fees | 35 | ||||||
Legal fees | 6 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 11 | ||||||
Registration fees | 62 | ||||||
Other | 4 | ||||||
Total expenses | 2,861 | ||||||
Net Investment Income (Loss) | 11,370 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies: | |||||||
Realized gain (loss) from investment in affiliated investment companies | 6,810 | ||||||
Realized gain distributions from investment in affiliated investment companies | 7,450 | ||||||
14,260 | |||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment in affiliated investment companies | 4,429 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies | 18,689 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 30,059 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 3
TA IDEX Asset Allocation–Conservative Portfolio
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) In Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 11,370 | $ | 9,649 | |||||||
Net realized gain (loss) from investment in affiliated investment companies | 14,260 | 14,708 | |||||||||
Change in unrealized appreciation (depreciation) on investment in affiliated investment companies | 4,429 | 19,377 | |||||||||
30,059 | 43,734 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (4,120 | ) | (4,299 | ) | |||||||
Class B | (2,278 | ) | (2,547 | ) | |||||||
Class C | (5,402 | ) | (5,527 | ) | |||||||
Class R | (3 | ) | – | (b) | |||||||
(11,803 | ) | (12,373 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (4,600 | ) | (3,698 | ) | |||||||
Class B | (3,022 | ) | (2,932 | ) | |||||||
Class C | (7,046 | ) | (5,989 | ) | |||||||
Class R | (1 | ) | – | ||||||||
(14,669 | ) | (12,619 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 55,282 | 67,139 | |||||||||
Class B | 10,090 | 20,499 | |||||||||
Class C | 53,953 | 104,425 | |||||||||
Class R | 510 | 50 | (c) | ||||||||
119,835 | 192,113 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 7,557 | 6,952 | |||||||||
Class B | 4,333 | 4,555 | |||||||||
Class C | 8,516 | 8,214 | |||||||||
Class R | 4 | – | |||||||||
20,410 | 19,721 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (27,933 | ) | (44,648 | ) | |||||||
Class B | (11,789 | ) | (24,686 | ) | |||||||
Class C | (35,560 | ) | (72,878 | ) | |||||||
Class R | (161 | ) | – | ||||||||
(75,443 | ) | (142,212 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | 1 | 2 | |||||||||
Class B | – | (b) | – | (b) | |||||||
Class C | 3 | 2 | |||||||||
4 | 4 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | 327 | 182 | |||||||||
Class B | (327 | ) | (182 | ) | |||||||
– | – | ||||||||||
64,806 | 69,626 | ||||||||||
Net increase (decrease) in net assets | 68,393 | 88,368 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 533,500 | 445,132 | |||||||||
End of period | $ | 601,893 | $ | 533,500 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 465 | $ | 898 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 4,751 | 5,850 | |||||||||
Class B | 867 | 1,793 | |||||||||
Class C | 4,645 | 9,138 | |||||||||
Class R | 44 | 4 | (c) | ||||||||
10,307 | 16,785 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 656 | 621 | |||||||||
Class B | 378 | 408 | |||||||||
Class C | 742 | 736 | |||||||||
1,776 | 1,765 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (2,393 | ) | (3,884 | ) | |||||||
Class B | (1,016 | ) | (2,154 | ) | |||||||
Class C | (3,060 | ) | (6,365 | ) | |||||||
Class R | (13 | ) | – | ||||||||
(6,482 | ) | (12,403 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 28 | 16 | |||||||||
Class B | (28 | ) | (16 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 3,042 | 2,603 | |||||||||
Class B | 201 | 31 | |||||||||
Class C | 2,327 | 3,509 | |||||||||
Class R | 31 | 4 | |||||||||
5,601 | 6,147 |
(a) Class R was offered for investment on June 15, 2006.
(b) Rounds to less than $1.
(c) Amount represents intial seeding of the Class.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 4
TA IDEX Asset Allocation–Conservative Portfolio
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 11.76 | $ | 0.26 | $ | 0.40 | $ | 0.66 | $ | (0.28 | ) | $ | (0.32 | ) | $ | (0.60 | ) | $ | 11.82 | |||||||||||||||||||
10/31/2006 | 11.35 | 0.28 | 0.80 | 1.08 | (0.35 | ) | (0.32 | ) | (0.67 | ) | 11.76 | ||||||||||||||||||||||||||||
10/31/2005 | 11.07 | 0.32 | 0.37 | 0.69 | (0.22 | ) | (0.19 | ) | (0.41 | ) | 11.35 | ||||||||||||||||||||||||||||
10/31/2004 | 10.67 | 0.17 | 0.77 | 0.94 | (0.51 | ) | (0.03 | ) | (0.54 | ) | 11.07 | ||||||||||||||||||||||||||||
10/31/2003 | 9.22 | 0.18 | 1.47 | 1.65 | (0.20 | ) | – | (0.20 | ) | 10.67 | |||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.07 | (0.85 | ) | (0.78 | ) | – | – | – | 9.22 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 11.73 | 0.22 | 0.39 | 0.61 | (0.24 | ) | (0.32 | ) | (0.56 | ) | 11.78 | |||||||||||||||||||||||||||
10/31/2006 | 11.32 | 0.20 | 0.81 | 1.01 | (0.28 | ) | (0.32 | ) | (0.60 | ) | 11.73 | ||||||||||||||||||||||||||||
10/31/2005 | 11.05 | 0.24 | 0.38 | 0.62 | (0.16 | ) | (0.19 | ) | (0.35 | ) | 11.32 | ||||||||||||||||||||||||||||
10/31/2004 | 10.66 | 0.10 | 0.76 | 0.86 | (0.44 | ) | (0.03 | ) | (0.47 | ) | 11.05 | ||||||||||||||||||||||||||||
10/31/2003 | 9.18 | 0.11 | 1.47 | 1.58 | (0.10 | ) | – | (0.10 | ) | 10.66 | |||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.03 | (0.85 | ) | (0.82 | ) | – | – | – | 9.18 | |||||||||||||||||||||||||||||
Class C | 4/30/2007 | 11.73 | 0.22 | 0.39 | 0.61 | (0.24 | ) | (0.32 | ) | (0.56 | ) | 11.78 | |||||||||||||||||||||||||||
10/31/2006 | 11.32 | 0.21 | 0.80 | 1.01 | (0.28 | ) | (0.32 | ) | (0.60 | ) | 11.73 | ||||||||||||||||||||||||||||
10/31/2005 | 11.05 | 0.25 | 0.37 | 0.62 | (0.16 | ) | (0.19 | ) | (0.35 | ) | 11.32 | ||||||||||||||||||||||||||||
10/31/2004 | 10.66 | 0.10 | 0.76 | 0.86 | (0.44 | ) | (0.03 | ) | (0.47 | ) | 11.05 | ||||||||||||||||||||||||||||
10/31/2003 | 9.19 | 0.11 | 1.46 | 1.57 | (0.10 | ) | – | (0.10 | ) | 10.66 | |||||||||||||||||||||||||||||
Class R | 4/30/2007 | 11.84 | 0.21 | 0.45 | 0.66 | (0.28 | ) | (0.32 | ) | (0.60 | ) | 11.90 | |||||||||||||||||||||||||||
10/31/2006 | 11.30 | 0.13 | 0.47 | 0.60 | (0.06 | ) | – | (0.06 | ) | 11.84 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a)(j) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a)(i) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 5.66 | % | $ | 201,758 | 0.59 | % | 0.59 | % | 4.47 | % (l) | 27 | % | ||||||||||||||||||
10/31/2006 | 9.90 | 165,071 | 0.60 | (k) | 0.60 | (k) | 2.44 | (l) | 29 | ||||||||||||||||||||||
10/31/2005 | 6.30 | 129,724 | 0.28 | 0.28 | 2.85 | (l) | 32 | ||||||||||||||||||||||||
10/31/2004 | 8.97 | 99,811 | 0.29 | (h) | 0.29 | (h) | 1.55 | 11 | |||||||||||||||||||||||
10/31/2003 | 18.18 | 59,250 | 0.41 | 0.41 | 1.80 | 22 | |||||||||||||||||||||||||
10/31/2002 | (7.80 | ) | 9,482 | 0.45 | 1.21 | 1.27 | 8 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 5.33 | 113,539 | 1.26 | 1.26 | 3.86 | (l) | 27 | |||||||||||||||||||||||
10/31/2006 | 9.19 | 110,701 | 1.26 | (k) | 1.26 | (k) | 1.78 | (l) | 29 | ||||||||||||||||||||||
10/31/2005 | 5.65 | 106,449 | 0.93 | 0.93 | 2.15 | (l) | 32 | ||||||||||||||||||||||||
10/31/2004 | 8.21 | 106,601 | 0.92 | (h) | 0.92 | (h) | 0.93 | 11 | |||||||||||||||||||||||
10/31/2003 | 17.38 | 85,134 | 1.06 | 1.06 | 1.15 | 22 | |||||||||||||||||||||||||
10/31/2002 | (8.20 | ) | 23,229 | 1.10 | 1.86 | 0.62 | 8 | ||||||||||||||||||||||||
Class C | 4/30/2007 | 5.35 | 286,181 | 1.22 | 1.22 | 3.87 | (l) | 27 | |||||||||||||||||||||||
10/31/2006 | 9.25 | 257,675 | 1.23 | (k) | 1.23 | (k) | 1.82 | (l) | 29 | ||||||||||||||||||||||
10/31/2005 | 5.61 | 208,959 | 0.90 | 0.90 | 2.21 | (l) | 32 | ||||||||||||||||||||||||
10/31/2004 | 8.26 | 182,112 | 0.93 | (h) | 0.93 | (h) | 0.89 | 11 | |||||||||||||||||||||||
10/31/2003 | 17.25 | 83,165 | 1.06 | 1.06 | 1.15 | 22 | |||||||||||||||||||||||||
Class R | 4/30/2007 | 5.71 | 415 | 0.70 | 0.70 | 3.64 | 27 | ||||||||||||||||||||||||
10/31/2006 | 5.35 | 53 | 0.66 | (k) | 0.66 | (k) | 3.03 | 29 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 5
TA IDEX Asset Allocation–Conservative Portfolio
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see Note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Asset Allocation–Conservative Portfolio ("the Fund") commenced operations on March 1, 2002.The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class R was June 15, 2006.
(h) Ratios of Total Expenses to Average Net Assets and net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment advisor, if any. The impact of recaptured expenses was 0.01%, 0.01% and 0.01% for Class A, Class B and Class C, respectively (see Note 2).
(i) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(j) Does not include expenses of the investment companies in which the Fund invests.
(k) On November 15, 2005, the Fund was authorized under the 12b-1 plan to pay fees on each class up to the following limits: Class A 0.35%, Class B 1.00%, Class C 1.00%, Class R 0.50%.
(l) Ratios of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 6
TA IDEX Asset Allocation–Conservative Portfolio
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Asset Allocation–Conservative Portfolio (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class R, each with a public offering price that reflects different sales charges, if any, and expense levels. Class R commenced operations on June 15, 2006. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: Investment company securities are valued at the net asset value of the underlying portfolio.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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. Dividends and net realized gain (loss) from investment securities for the Fund are from investments in shares of affiliated investment companies.
Redemption fees: A short-term trading redemption fee may be assessed on any fund shares in a fund account that are sold during the first five (5) New York Stock Exchange ("NYSE") trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received $4 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC ("TIM") is an affiliate of the Fund and a sub-adviser to other funds within Transamerica IDEX Mutual Funds.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of underlying funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following rate:
0.10% of ANA
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
0.45% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There are no amounts available for recapture at April 30, 2007.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 7
TA IDEX Asset Allocation–Conservative Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class R | 0.50 | % |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 938 | |||||
Retained by Underwriter | 162 | ||||||
Contingent Deferred Sales Charge | 137 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.0125% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $201 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $17.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $26. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 212,389 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 153,757 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and distribution reclasses.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 8
TA IDEX Asset Allocation–Conservative Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 9
TA IDEX Asset Allocation–Conservative Portfolio
INVESTMENT ADVISORY AND ASSET ALLOCATION MANAGEMENT AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Asset Allocation–Conservative Portfolio (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Asset Allocation Management Agreement of the Fund between TFAI and Morningstar Associates, LLC (the "Portfolio Construction Manager"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Asset Allocation Management Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investme nt Advisory Agreement and the Asset Allocation Management Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Portfolio Construction Manager such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Portfolio Construction Manager (such as in-person presentations by the Portfolio Construction Manager) 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and the Asset Allocation Management Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX coun sel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Portfolio Construction Manager to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Portfolio Construction Manager are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Portfolio Construction Manager's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Portfolio Construction Manager, TFAI's management oversight process, the professional qualifications and experience of the Po rtfolio Construction Manager's portfolio management team, and the Fund's investment performance. The Trustees also concluded that TFAI and the Portfolio Construction Manager proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Portfolio Construction Manager's obligations will remain substantially the same. They also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional way.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Portfolio Construction Manager generally had achieved strong investment performance, favorably noting that the performance of the Fund generally has been superior relative to its peers over the past one-, two- and three- year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Portfolio Construction Manager, the Trustees concluded that TFAI and the Portfolio Construction Manager are capable of generating a level of investment performance that is appr opriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Portfolio Construction Manager's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Board noted that the Portfolio Construction Manager receives the entirety of the management fee payable by the Fund because TFAI is compensated through the management fees payable by the underlying funds in which the Fund invests. The Trustees reviewed data from Lipper that compared the Fund's management fees, other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and the portfolio turnover rates against a peer group of comparable funds. The Trustees noted that, although the overall expense ratio of the Fund is slightly above its peers, the Fund's contractual management fees are below those of its peers and the Fund's performance had remained
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 10
TA IDEX Asset Allocation–Conservative Portfolio (continued)
strong. In addition, on the basis of the Board's review of the management fees charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Portfolio Construction Manager, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Portfolio Construction Manager's profitability, currently are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Portfolio Construction Manager.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board noted that the management fee of the Fund does not contain asset-based breakpoints, despite ongoing efforts to negotiate such breakpoints. The Board reviewed at length the information provided in response to a request that Management evaluate the Fund's pricing and fees, and the Board noted that the information included comparisons with the pricing structures of comparable funds. The Board also noted that based on the information provided by TFAI, the Fund's investments in underlying funds have permitted meaningful economies of scale and the realization of breakpoints (or lower breakpoints) at the underlying fund level which, indirectly, benefit the Fund and its shareholders, as well as the underlying funds. The Board carefully reviewed the performance record and the fees and expenses of the Fund and the comparative information provided by Lipper. The Board noted that the Fund has management fees in line with, or lower than, its peers. The Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 by the underlying funds to TFAI and fees payable to the Portfolio Construction Manager, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Portfolio Construction Manager from their relationship with the Fund. The Board concluded that other benefits derived by TFAI (including any benefits derived from investment advisory fees payable to TFAI with respect to the underlying funds in which the Fund invests) or the Portfolio Construction Manager from its relationship with the Fund are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that neither TFAI nor the Portfolio Construction Manager realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations. As a general matter, the Board also noted the popularity of the Fund with shareholders and the consequential ancillary benefits to the various underlying funds.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Portfolio Construction Manager. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation–Conservative Portfolio 11
TA IDEX Asset Allocation – Growth Portfolio
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
The expenses shown in the table do not reflect any expenses from the Fund's investment in other affiliated investment companies. The average weighted annualized expense ratio of the underlying investment companies at April 30, 2007, was 0.92%.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,103.60 | 0.62 | % | $ | 3.23 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,021.72 | 0.62 | 3.11 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,100.30 | 1.29 | 6.72 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.40 | 1.29 | 6.46 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,100.00 | 1.24 | 6.46 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.65 | 1.24 | 6.21 | |||||||||||||||
Class R | |||||||||||||||||||
Actual | 1,000.00 | 1,103.40 | 0.66 | 3.44 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,021.52 | 0.66 | 3.31 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Investment Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the aggregate portfolio holdings of the underlying affiliated investment companies in which the Fund invests. The security lending collateral in the underlying funds is excluded from this calculation.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 1
TA IDEX Asset Allocation – Growth Portfolio
SCHEDULE OF INVESTMENTS ø
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
INVESTMENT COMPANIES (99.9%) | |||||||||||
Aggressive Equity (16.1%) | |||||||||||
TA IDEX Evergreen Health Care | 3,986,685 | $ | 54,578 | ||||||||
TA IDEX JP Morgan Mid Cap Value | 6,612,445 | 80,804 | |||||||||
TA IDEX Oppenheimer Small- & Mid-Cap Value | 1,498,663 | 18,928 | |||||||||
TA IDEX Transamerica Growth Opportunities ‡ | 4,880,501 | 43,680 | |||||||||
TA IDEX Transamerica Small/Mid Cap Value | 6,751,082 | 134,617 | |||||||||
Capital Preservation (0.2%) | |||||||||||
TA IDEX Transamerica Money Market | 5,130,634 | 5,131 | |||||||||
Growth & Income (1.0%) | |||||||||||
TA IDEX UBS Dynamic Alpha ‡ | 2,119,978 | 21,179 | |||||||||
Growth Equity (55.1%) | |||||||||||
TA IDEX American Century Large Company Value | 17,473,654 | 221,741 | |||||||||
TA IDEX Bjurman, Barry Micro Emerging Growth ‡ | 1,023,157 | 11,336 | |||||||||
TA IDEX BlackRock Large Cap Value | 16,814,510 | 216,066 | |||||||||
TA IDEX BlackRock Natural Resources ‡ | 2,309,376 | 25,749 | |||||||||
TA IDEX Federated Market Opportunity | 122,999 | 1,163 | |||||||||
TA IDEX Jennison Growth | 9,197,850 | 106,787 | |||||||||
TA IDEX Marsico Growth | 7,254,989 | 86,987 | |||||||||
TA IDEX Mellon Market Neutral Strategy ‡ | 617,588 | 6,231 |
Shares | Value | ||||||||||
Growth Equity (continued) | |||||||||||
TA IDEX Transamerica Equity ‡ | 21,559,815 | $ | 224,222 | ||||||||
TA IDEX Transamerica Science & Technology ‡ | 3,943,100 | 16,679 | |||||||||
TA IDEX UBS Large Cap Value | 10,194,357 | 137,114 | |||||||||
TA IDEX Van Kampen Mid-Cap Growth | 4,413,420 | 51,505 | |||||||||
TA IDEX Van Kampen Small Company Growth | 2,696,214 | 35,698 | |||||||||
Specialty–Real Estate (4.9%) | |||||||||||
TA IDEX Clarion Global Real Estate Securities | 5,006,734 | 102,388 | |||||||||
World Equity (22.6%) | |||||||||||
TA IDEX AllianceBernstein International Value | 4,737,867 | 65,667 | |||||||||
TA IDEX BlackRock Global Allocation | 5,971,544 | 70,584 | |||||||||
TA IDEX Evergreen International Small Cap | 5,770,943 | 98,337 | |||||||||
TA IDEX Marsico International Growth | 4,280,576 | 57,146 | |||||||||
TA IDEX Neuberger Berman International | 7,218,210 | 92,465 | |||||||||
TA IDEX Oppenheimer Developing Markets | 5,913,894 | 77,295 | |||||||||
TA IDEX Templeton Transamerica Global | 196,623 | 6,310 | |||||||||
Total Investment Companies (cost: $1,746,201) # | $ | 2,070,387 |
NOTES TO SCHEDULE OF INVESTMENTS:
ø The fund invests its assets in Class 1 shares of the affiliated Transamerica IDEX Mutual Fund.
‡ Non-income producing.
# Aggregate cost for federal income tax purposes is $1,747,722. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $322,685 and $20, respectively. Net unrealized appreciation for tax purposes is $322,665.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 2
TA IDEX Asset Allocation – Growth Portfolio
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment in affiliated investment companies at value (cost: $1,746,201) | $ | 2,070,387 | |||||
Receivables: | |||||||
Shares of beneficial interest sold | 7,938 | ||||||
Dividends | 10 | ||||||
Other | 31 | ||||||
2,078,366 | |||||||
Liabilities: | |||||||
Investment securities purchased | 2,023 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 2,853 | ||||||
Management and advisory fees | 172 | ||||||
Distribution and service fees | 1,373 | ||||||
Transfer agent fees | 119 | ||||||
Administration fees | 22 | ||||||
Due to custodian | 3 | ||||||
Dividends to shareholders | 1 | ||||||
Other | 91 | ||||||
6,657 | |||||||
Net Assets | $ | 2,071,709 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 1,679,625 | |||||
Undistributed (accumulated) net investment income (loss) | 5,372 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment in affiliated investment companies | 62,526 | ||||||
Net unrealized appreciation (depreciation) on investment in affiliated investment companies | 324,186 | ||||||
Net Assets | $ | 2,071,709 | |||||
Net Assets by Class: | |||||||
Class A | $ | 647,227 | |||||
Class B | 332,327 | ||||||
Class C | 1,087,537 | ||||||
Class R | 4,618 | ||||||
Shares Outstanding: | |||||||
Class A | 46,038 | ||||||
Class B | 24,071 | ||||||
Class C | 78,800 | ||||||
Class R | 329 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 14.06 | |||||
Class B | 13.81 | ||||||
Class C | 13.80 | ||||||
Class R | 14.02 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 14.88 |
(a) 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 and R shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends from affiliated investment companies | $ | 45,427 | |||||
Interest | 1 | ||||||
45,428 | |||||||
Expenses: | |||||||
Management and advisory fees | 921 | ||||||
Distribution and service fees: | |||||||
Class A | 987 | ||||||
Class B | 1,536 | ||||||
Class C | 4,842 | ||||||
Class R | 7 | ||||||
Transfer agent fees: | |||||||
Class A | 343 | ||||||
Class B | 224 | ||||||
Class C | 460 | ||||||
Printing and shareholder reports | 63 | ||||||
Custody fees | 29 | ||||||
Administration fees | 115 | ||||||
Legal fees | 21 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 34 | ||||||
Registration fees | 117 | ||||||
Other | 12 | ||||||
Total expenses | 9,721 | ||||||
Net Investment Income (Loss) | 35,707 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies: | |||||||
Realized gain (loss) from investment in affiliated investment companies | 26,829 | ||||||
Realized gain distributions from investment in affiliated investment companies | 39,742 | ||||||
66,571 | |||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment in affiliated investment companies | 76,592 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies | 143,163 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 178,870 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 3
TA IDEX Asset Allocation – Growth Portfolio
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) In Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 35,707 | $ | (2,908 | ) | ||||||
Net realized gain (loss) from investment in affiliated investment companies | 66,571 | 57,402 | |||||||||
Change in unrealized appreciation (depreciation) on investment in affiliated investment companies | 76,592 | 129,165 | |||||||||
178,870 | 183,659 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (11,059 | ) | (2,674 | ) | |||||||
Class B | (4,453 | ) | (676 | ) | |||||||
Class C | (14,822 | ) | (1,942 | ) | |||||||
Class R | (2 | ) | – | ||||||||
(30,336 | ) | (5,292 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (17,257 | ) | (8,870 | ) | |||||||
Class B | (9,885 | ) | (6,584 | ) | |||||||
Class C | (30,473 | ) | (16,475 | ) | |||||||
Class R | (3 | ) | – | ||||||||
(57,618 | ) | (31,929 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 150,755 | 235,562 | |||||||||
Class B | 37,638 | 77,616 | |||||||||
Class C | 199,772 | 369,374 | |||||||||
Class R | 4,755 | 79 | (c) | ||||||||
392,920 | 682,631 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 25,197 | 10,031 | |||||||||
Class B | 12,443 | 6,220 | |||||||||
Class C | 33,562 | 13,231 | |||||||||
Class R | 5 | – | |||||||||
71,207 | 29,482 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (59,667 | ) | (73,397 | ) | |||||||
Class B | (20,811 | ) | (34,182 | ) | |||||||
Class C | (70,442 | ) | (109,442 | ) | |||||||
Class R | (478 | ) | – | ||||||||
(151,398 | ) | (217,021 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | 3 | 1 | |||||||||
Class B | – | (b) | 1 | ||||||||
Class C | 1 | 1 | |||||||||
4 | 3 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 793 | $ | 574 | |||||||
Class B | (793 | ) | (574 | ) | |||||||
– | – | ||||||||||
312,733 | 495,095 | ||||||||||
Net increase (decrease) in net assets | 403,649 | 641,533 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 1,668,060 | 1,026,527 | |||||||||
End of period | $ | 2,071,709 | $ | 1,668,060 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 5,372 | $ | 1 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 11,088 | 18,382 | |||||||||
Class B | 2,817 | 6,166 | |||||||||
Class C | 14,980 | 29,329 | |||||||||
Class R | 358 | 6 | (c) | ||||||||
29,243 | 53,883 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 1,890 | 826 | |||||||||
Class B | 948 | 520 | |||||||||
Class C | 2,558 | 1,105 | |||||||||
5,396 | 2,451 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (4,395 | ) | (5,738 | ) | |||||||
Class B | (1,558 | ) | (2,719 | ) | |||||||
Class C | (5,275 | ) | (8,752 | ) | |||||||
Class R | (35 | ) | – | ||||||||
(11,263 | ) | (17,209 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 59 | 44 | |||||||||
Class B | (60 | ) | (45 | ) | |||||||
(1 | ) | (1 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 8,642 | 13,514 | |||||||||
Class B | 2,147 | 3,922 | |||||||||
Class C | 12,263 | 21,682 | |||||||||
Class R | 323 | 6 | |||||||||
23,375 | 39,124 |
(a) Class R was offered for investment on June 15, 2006.
(b) Rounds to less than $1.
(c) Amount represents initial seeding of the class.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 4
TA IDEX Asset Allocation – Growth Portfolio
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 13.44 | $ | 0.29 | $ | 1.07 | $ | 1.36 | $ | (0.29 | ) | $ | (0.45 | ) | $ | (0.74 | ) | $ | 14.06 | |||||||||||||||||||
10/31/2006 | 11.99 | 0.03 | 1.89 | 1.92 | (0.11 | ) | (0.36 | ) | (0.47 | ) | 13.44 | ||||||||||||||||||||||||||||
10/31/2005 | 10.75 | 0.05 | 1.38 | 1.43 | (0.12 | ) | (0.07 | ) | (0.19 | ) | 11.99 | ||||||||||||||||||||||||||||
10/31/2004 | 9.82 | (0.02 | ) | 0.95 | 0.93 | – | – | – | 10.75 | ||||||||||||||||||||||||||||||
10/31/2003 | 7.95 | (0.03 | ) | 1.90 | 1.87 | – | – | – | 9.82 | ||||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.02 | ) | (2.03 | ) | (2.05 | ) | – | – | – | 7.95 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 13.17 | 0.24 | 1.05 | 1.29 | (0.20 | ) | (0.45 | ) | (0.65 | ) | 13.81 | |||||||||||||||||||||||||||
10/31/2006 | 11.77 | (0.05 | ) | 1.85 | 1.80 | (0.04 | ) | (0.36 | ) | (0.40 | ) | 13.17 | |||||||||||||||||||||||||||
10/31/2005 | 10.57 | (0.03 | ) | 1.36 | 1.33 | (0.06 | ) | (0.07 | ) | (0.13 | ) | 11.77 | |||||||||||||||||||||||||||
10/31/2004 | 9.71 | (0.09 | ) | 0.95 | 0.86 | – | – | – | 10.57 | ||||||||||||||||||||||||||||||
10/31/2003 | 7.91 | (0.08 | ) | 1.88 | 1.80 | – | – | – | 9.71 | ||||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.06 | ) | (2.03 | ) | (2.09 | ) | – | – | – | 7.91 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 13.18 | 0.24 | 1.05 | 1.29 | (0.22 | ) | (0.45 | ) | (0.67 | ) | 13.80 | |||||||||||||||||||||||||||
10/31/2006 | 11.78 | (0.05 | ) | 1.85 | 1.80 | (0.04 | ) | (0.36 | ) | (0.40 | ) | 13.18 | |||||||||||||||||||||||||||
10/31/2005 | 10.57 | (0.02 | ) | 1.37 | 1.35 | (0.07 | ) | (0.07 | ) | (0.14 | ) | 11.78 | |||||||||||||||||||||||||||
10/31/2004 | 9.71 | (0.08 | ) | 0.94 | 0.86 | – | – | – | 10.57 | ||||||||||||||||||||||||||||||
10/31/2003 | 7.86 | (0.08 | ) | 1.93 | 1.85 | – | – | – | 9.71 | ||||||||||||||||||||||||||||||
Class R | 4/30/2007 | 13.43 | 0.19 | 1.16 | 1.35 | (0.31 | ) | (0.45 | ) | (0.76 | ) | 14.02 | |||||||||||||||||||||||||||
10/31/2006 | 12.36 | 0.05 | 1.02 | 1.07 | – | – | – | 13.43 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a)(j) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a)(i) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 10.36 | % | $ | 647,227 | 0.62 | % | 0.62 | % | 4.30 | % (l) | 18 | % | ||||||||||||||||||
10/31/2006 | 16.38 | 502,488 | 0.65 | (k) | 0.65 | (k) | 0.22 | (l) | 22 | ||||||||||||||||||||||
10/31/2005 | 13.42 | 286,412 | 0.34 | 0.34 | 0.42 | (l) | 35 | ||||||||||||||||||||||||
10/31/2004 | 9.47 | 171,708 | 0.43 | (h) | 0.43 | (h) | (0.22 | ) | 5 | ||||||||||||||||||||||
10/31/2003 | 23.52 | 55,209 | 0.45 | 0.60 | (0.30 | ) | 25 | ||||||||||||||||||||||||
10/31/2002 | (20.50 | ) | 8,368 | 0.45 | 1.65 | (0.44 | ) | 31 | |||||||||||||||||||||||
Class B | 4/30/2007 | 10.03 | 332,327 | 1.29 | 1.29 | 3.68 | (l) | 18 | |||||||||||||||||||||||
10/31/2006 | 15.57 | 288,719 | 1.31 | (k) | 1.31 | (k) | (0.42 | ) (l) | 22 | ||||||||||||||||||||||
10/31/2005 | 12.55 | 211,904 | 0.99 | 0.99 | (0.24 | ) (l) | 35 | ||||||||||||||||||||||||
10/31/2004 | 8.96 | 160,959 | 1.05 | (h) | 1.05 | (h) | (0.82 | ) | 5 | ||||||||||||||||||||||
10/31/2003 | 22.76 | 82,318 | 1.10 | 1.25 | (0.95 | ) | 25 | ||||||||||||||||||||||||
10/31/2002 | (20.90 | ) | 10,452 | 1.10 | 2.30 | (1.09 | ) | 31 | |||||||||||||||||||||||
Class C | 4/30/2007 | 10.00 | 1,087,537 | 1.24 | 1.24 | 3.69 | (l) | 18 | |||||||||||||||||||||||
10/31/2006 | 15.61 | 876,768 | 1.26 | (k) | 1.26 | (k) | (0.38 | ) (l) | 22 | ||||||||||||||||||||||
10/31/2005 | 12.82 | 528,211 | 0.93 | 0.93 | (0.17 | ) (l) | 35 | ||||||||||||||||||||||||
10/31/2004 | 8.86 | 356,543 | 0.99 | (h) | 0.99 | (h) | (0.78 | ) | 5 | ||||||||||||||||||||||
10/31/2003 | 23.54 | 116,956 | 1.10 | 1.25 | (0.95 | ) | 25 | ||||||||||||||||||||||||
Class R | 4/30/2007 | 10.34 | 4,618 | 0.66 | 0.66 | 2.85 | 18 | ||||||||||||||||||||||||
10/31/2006 | 8.66 | 85 | 0.67 | (k) | 0.67 | (k) | 1.08 | 22 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 5
TA IDEX Asset Allocation – Growth Portfolio
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on the average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see Note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Asset Allocation–Growth Portfolio ("the Fund") commenced operations on March 1, 2002. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class R was June 15, 2006.
(h) Ratios of Total Expenses to Average Net Assets and net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment advisor, if any. The impact of recaptured expenses was 0.05%, 0.05% and 0.05% for Class A, Class B and Class C, respectively (see Note 2).
(i) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying companies in which the Fund invests.
(j) Does not include expenses of the investment companies in which the Fund invests.
(k) On November 15, 2005, the Fund was authorized under the 12b-1 plan to pay fees on each class up to the following units: Class A 0.35%, Class B 1.00%, Class C 1.00%, Class R 0.50%.
(l) Ratios of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 6
TA IDEX Asset Allocation – Growth Portfolio
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Asset Allocation–Growth Portfolio (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class R, each with a public offering price that reflects different sales charges, if any, and expense levels. Class R commenced operations on June 15, 2006. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: Investment company securities are valued at the net asset value of the underlying portfolio.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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. Dividends and net realized gain (loss) from investment securities for the Fund are from investments in shares of affiliated investment companies.
Redemption fees: A short-term trading redemption fee may be assessed on any fund shares in a fund account that are sold during the first five (5) New York Stock Exchange ("NYSE") trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received $4 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") was the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") is the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC ("TIM") is an affiliate of the Fund and a sub-adviser to other funds within Transamerica IDEX Mutual Funds.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of underlying funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following rate:
0.10% of ANA
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
0.45% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There are no amounts available for recapture at April 30, 2007.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 7
TA IDEX Asset Allocation – Growth Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class R | 0.50 | % |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 3,306 | |||||
Retained by Underwriter | 524 | ||||||
Contingent Deferred Sales Charge | 404 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.0125% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $965 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $31.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $73. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 635,253 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 334,013 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, net operating loss and distribution reclasses.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 8
TA IDEX Asset Allocation – Growth Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 9
TA IDEX Asset Allocation – Growth Portfolio
INVESTMENT ADVISORY AND ASSET ALLOCATION MANAGEMENT AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Asset Allocation - Growth Portfolio (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Asset Allocation Management Agreement of the Fund between TFAI and Morningstar Associates, LLC (the "Portfolio Construction Manager"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Asset Allocation Management Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Adviso ry Agreement and the Asset Allocation Management Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Portfolio Construction Manager such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Portfolio Construction Manager (such as in-person presentations by the Portfolio Construction Manager) 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and the Asset Allocation Management Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX counsel and i ndependent 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Portfolio Construction Manager to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Portfolio Construction Manager are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Portfolio Construction Manager's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Portfolio Construction Manager, TFAI's management oversight process, the professional qualifications and experience of the Po rtfolio Construction Manager's portfolio management team, and the Fund's investment performance. The Trustees also concluded that TFAI and the Portfolio Construction Manager proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Portfolio Construction Manager's obligations will remain substantially the same. They also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional way.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Portfolio Construction Manager generally had achieved strong investment performance, favorably noting that the performance of the Fund generally has been superior relative to its peers over the past one-, two- and three-year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Portfolio Construction Manager, the Trustees concluded that TFAI and the Portfolio Construction Manager are capable of generating a level of investment performance that is appro priate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Portfolio Construction Manager's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Board noted that the Portfolio Construction Manager receives the entirety of the management fee payable by the Fund because TFAI is compensated through the management fees payable by the underlying funds in which the Fund invests. The Trustees reviewed data from Lipper that compared the Fund's management fees, other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rates against a peer group of comparable funds. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund generally are competitive with industry averages. In addition, on the basis of the Board's review of
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 10
TA IDEX Asset Allocation – Growth Portfolio (continued)
the management fees charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Portfolio Construction Manager, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Portfolio Construction Manager's profitability, currently are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Portfolio Construction Manager.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board noted that the management fee of the Fund does not contain asset-based breakpoints, despite ongoing efforts to negotiate such breakpoints. The Board reviewed at length the information provided in response to a request that Management evaluate the Fund's pricing and fees, and the Board noted that the information included comparisons with the pricing structures of comparable funds. The Board also noted that, based on the information provided by TFAI, the Fund's investments in underlying funds have permitted meaningful economies of scale and the realization of breakpoints (or lower breakpoints) at the underlying fund level which, indirectly, benefit the Fund and its shareholders, as well as the underlying funds. The Boar d carefully reviewed the performance record and the fees and expenses of the Fund and the comparative information provided by Lipper. The Board noted that the Fund has management fees in line with, or lower than, its peers. The Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 by the underlying funds to TFAI and fees payable to the Portfolio Construction Manager, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Portfolio Construction Manager from their relationship with the Fund. The Board concluded that other benefits derived by TFAI (including any benefits derived from investment advisory fees payable to TFAI with respect to the underlying funds in which the Fund invests) or the Portfolio Construction Manager from its relationship with the Fund are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that neither TFAI nor the Portfolio Construction Manager realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations. As a general matter, the Board also noted the popularity of the Fund with shareholders and the consequential ancillary benefits to the various underlying funds.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Portfolio Construction Manager. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Growth Portfolio 11
TA IDEX Asset Allocation – Moderate Growth Portfolio
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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. The expenses shown in the table do not reflect any expenses from the Fund's investment in other affiliated investment companies. The average weighted annualized expense ratio of the underlying investment companies at April 30, 2007, was 0.89%.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,084.60 | 0.58 | % | $ | 3.00 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,021.92 | 0.58 | 2.91 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,081.30 | 1.26 | 6.50 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.55 | 1.26 | 6.31 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,080.90 | 1.22 | 6.29 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.74 | 1.22 | 6.11 | |||||||||||||||
Class R | |||||||||||||||||||
Actual | 1,000.00 | 1,083.60 | 0.65 | 3.36 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,021.57 | 0.65 | 3.26 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Investment Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the aggregate portfolio holdings of the underlying affiliated investment companies in which the Fund invests. The security lending collateral in the underlying funds is excluded from this calculation.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 1
TA IDEX Asset Allocation – Moderate Growth Portfolio
SCHEDULE OF INVESTMENTS ø
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
INVESTMENT COMPANIES (99.9%) | |||||||||||
Aggressive Equity (13.2%) | |||||||||||
TA IDEX Evergreen Health Care | 2,870,303 | $ | 39,294 | ||||||||
TA IDEX JP Morgan Mid Cap Value | 11,194,424 | 136,796 | |||||||||
TA IDEX Oppenheimer Small- & Mid-Cap Value | 2,872,853 | 36,284 | |||||||||
TA IDEX Transamerica Growth Opportunities ‡ | 8,931,898 | 79,941 | |||||||||
TA IDEX Transamerica Small/Mid Cap Value | 8,854,859 | 176,566 | |||||||||
Capital Preservation (1.1%) | |||||||||||
TA IDEX Loomis Sayles Bond | 2,964,824 | 30,212 | |||||||||
TA IDEX Transamerica Money Market | 10,314,140 | 10,314 | |||||||||
Fixed-Income (18.3%) | |||||||||||
TA IDEX PIMCO Real Return TIPS | 11,075,457 | 112,527 | |||||||||
TA IDEX PIMCO Total Return | 20,974,142 | 216,663 | |||||||||
TA IDEX Transamerica Convertible Securities | 6,504,411 | 82,866 | |||||||||
TA IDEX Transamerica Flexible Income | 6,135,725 | 58,474 | |||||||||
TA IDEX Transamerica High-Yield Bond | 8,755,677 | 83,004 | |||||||||
TA IDEX Transamerica Short-Term Bond | 9,689,435 | 95,829 | |||||||||
Foreign Fixed-Income (5.4%) | |||||||||||
TA IDEX JPMorgan International Bond | 12,459,506 | 131,572 | |||||||||
TA IDEX Van Kampen Emerging Markets Debt | 5,377,530 | 60,067 | |||||||||
Growth & Income (2.8%) | |||||||||||
TA IDEX UBS Dynamic Alpha ‡ | 10,161,378 | 101,512 | |||||||||
Growth Equity (38.6%) | |||||||||||
TA IDEX American Century Large Company Value | 22,806,513 | 289,415 |
Shares | Value | ||||||||||
Growth Equity (continued) | |||||||||||
TA IDEX Bjurman, Barry Micro Emerging Growth ‡ | 1,203,709 | $ | 13,337 | ||||||||
TA IDEX BlackRock Large Cap Value | 20,331,126 | 261,255 | |||||||||
TA IDEX BlackRock Natural Resources ‡ | 3,641,440 | 40,602 | |||||||||
TA IDEX Federated Market Opportunity | 161,124 | 1,524 | |||||||||
TA IDEX Jennison Growth | 1,175,573 | 13,648 | |||||||||
TA IDEX Legg Mason Partners Investors Value | 6,426,267 | 62,977 | |||||||||
TA IDEX Marsico Growth | 8,821,991 | 105,776 | |||||||||
TA IDEX Mellon Market Neutral Strategy ‡ | 3,153,961 | 31,824 | |||||||||
TA IDEX Transamerica Equity ‡ | 33,158,961 | 344,853 | |||||||||
TA IDEX Transamerica Science & Technology ‡ | 7,663,388 | 32,416 | |||||||||
TA IDEX UBS Large Cap Value | 9,521,445 | 128,063 | |||||||||
TA IDEX Van Kampen Mid-Cap Growth | 2,299,849 | 26,839 | |||||||||
TA IDEX Van Kampen Small Company Growth | 1,468,628 | 19,445 | |||||||||
Specialty–Real Estate (4.0%) | |||||||||||
TA IDEX Clarion Global Real Estate Securities | 6,961,767 | 142,368 | |||||||||
World Equity (16.5%) | |||||||||||
TA IDEX AllianceBernstein International Value | 5,009,984 | 69,438 | |||||||||
TA IDEX BlackRock Global Allocation | 9,906,680 | 117,097 | |||||||||
TA IDEX Evergreen International Small Cap | 6,121,447 | 104,309 | |||||||||
TA IDEX Marsico International Growth | 7,561,726 | 100,949 | |||||||||
TA IDEX Neuberger Berman International | 8,067,613 | 103,346 | |||||||||
TA IDEX Oppenheimer Developing Markets | 6,368,495 | 83,236 | |||||||||
TA IDEX Templeton Transamerica Global | 257,019 | 8,248 | |||||||||
Total Investment Companies (cost: $3,064,690) # | $ | 3,552,886 |
NOTES TO SCHEDULE OF INVESTMENTS:
ø The Fund invests its assets in Class I shares of the affiliated Transamerica IDEX Mutual Funds.
‡ Non-income producing.
# Aggregate cost for federal income tax purposes is $3,069,513. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $484,100 and $727, respectively. Net unrealized appreciation for tax purposes is $483,373.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 2
TA IDEX Asset Allocation – Moderate Growth Portfolio
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment in affiliated investment companies at value (cost: $3,064,690) | $ | 3,552,886 | |||||
Receivables: | |||||||
Shares of beneficial interest sold | 12,946 | ||||||
Dividends | 19 | ||||||
Other | 62 | ||||||
3,565,913 | |||||||
Liabilities: | |||||||
Investment securities purchased | 2,348 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 5,201 | ||||||
Management and advisory fees | 297 | ||||||
Distribution and service fees | 2,358 | ||||||
Transfer agent fees | 184 | ||||||
Administration fees | 37 | ||||||
Due to custodian | 27 | ||||||
Dividends to shareholders | 5 | ||||||
Other | 188 | ||||||
10,645 | |||||||
Net Assets | $ | 3,555,268 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 2,964,936 | |||||
Undistributed (accumulated) net investment income (loss) | (1,482 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment in affiliated investment companies | 103,618 | ||||||
Net unrealized appreciation (depreciation) on investment in affiliated investment companies | 488,196 | ||||||
Net Assets | $ | 3,555,268 | |||||
Net Assets by Class: | |||||||
Class A | $ | 1,124,996 | |||||
Class B | 609,155 | ||||||
Class C | 1,817,729 | ||||||
Class R | 3,388 | ||||||
Shares Outstanding: | |||||||
Class A | 83,588 | ||||||
Class B | 45,500 | ||||||
Class C | 135,847 | ||||||
Class R | 252 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 13.46 | |||||
Class B | 13.39 | ||||||
Class C | 13.38 | ||||||
Class R | 13.43 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 14.24 |
(a) 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 and R shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends from affiliated investment companies | $ | 83,450 | |||||
Interest | 1 | ||||||
83,451 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,617 | ||||||
Distribution and service fees: | |||||||
Class A | 1,763 | ||||||
Class B | 2,869 | ||||||
Class C | 8,251 | ||||||
Class R | 5 | ||||||
Transfer agent fees: | |||||||
Class A | 469 | ||||||
Class B | 354 | ||||||
Class C | 672 | ||||||
Class R | – | (b) | |||||
Printing and shareholder reports | 94 | ||||||
Custody fees | 41 | ||||||
Administration fees | 202 | ||||||
Legal fees | 38 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 61 | ||||||
Registration fees | 151 | ||||||
Other | 20 | ||||||
Total expenses | 16,617 | ||||||
Net Investment Income (Loss) | 66,834 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies: | |||||||
Realized gain (loss) from investment in affiliated investment companies | 42,140 | ||||||
Realized gain distributions from investment in affiliated investment companies | 64,290 | ||||||
106,430 | |||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment in affiliated investment companies | 83,432 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies | 189,862 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 256,696 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 3
TA IDEX Asset Allocation – Moderate Growth Portfolio
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) In Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 66,834 | $ | 18,034 | |||||||
Net realized gain (loss) from investment in affiliated investment companies | 106,430 | 73,212 | |||||||||
Change in unrealized appreciation (depreciation) on investment in affiliated investment companies | 83,432 | 218,530 | |||||||||
256,696 | 309,776 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (24,874 | ) | (9,785 | ) | |||||||
Class B | (10,915 | ) | (4,719 | ) | |||||||
Class C | (32,527 | ) | (11,391 | ) | |||||||
Class R | (2 | ) | – | ||||||||
(68,318 | ) | (25,895 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (23,422 | ) | (15,305 | ) | |||||||
Class B | (13,763 | ) | (11,562 | ) | |||||||
Class C | (38,752 | ) | (26,861 | ) | |||||||
Class R | (2 | ) | – | ||||||||
(75,939 | ) | (53,728 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 231,231 | 401,400 | |||||||||
Class B | 58,306 | 126,518 | |||||||||
Class C | 311,356 | 594,117 | |||||||||
Class R | 3,521 | 50 | (b) | ||||||||
604,414 | 1,122,085 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 43,964 | 22,752 | |||||||||
Class B | 21,734 | 14,113 | |||||||||
Class C | 51,609 | 27,388 | |||||||||
Class R | 3 | – | |||||||||
117,310 | 64,253 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (100,439 | ) | (139,736 | ) | |||||||
Class B | (38,733 | ) | (64,931 | ) | |||||||
Class C | (123,807 | ) | (197,486 | ) | |||||||
Class R | (339 | ) | – | ||||||||
(263,318 | ) | (402,153 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | 3 | 8 | |||||||||
Class B | 1 | – | (c) | ||||||||
Class C | 1 | 8 | |||||||||
5 | 16 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 1,425 | $ | 952 | |||||||
Class B | (1,425 | ) | (952 | ) | |||||||
– | – | ||||||||||
458,411 | 784,201 | ||||||||||
Net increase (decrease) in net assets | 570,850 | 1,014,354 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 2,984,418 | 1,970,064 | |||||||||
End of period | $ | 3,555,268 | $ | 2,984,418 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (1,482 | ) | $ | 2 | ||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 17,613 | 32,172 | |||||||||
Class B | 4,471 | 10,206 | |||||||||
Class C | 23,893 | 47,903 | |||||||||
Class R | 274 | 4 | (b) | ||||||||
46,251 | 90,285 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 3,410 | 1,915 | |||||||||
Class B | 1,691 | 1,191 | |||||||||
Class C | 4,019 | 2,311 | |||||||||
9,120 | 5,417 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (7,642 | ) | (11,211 | ) | |||||||
Class B | (2,970 | ) | (5,242 | ) | |||||||
Class C | (9,483 | ) | (15,934 | ) | |||||||
Class R | (26 | ) | – | ||||||||
(20,121 | ) | (32,387 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 108 | 76 | |||||||||
Class B | (108 | ) | (76 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 13,489 | 22,952 | |||||||||
Class B | 3,084 | 6,079 | |||||||||
Class C | 18,429 | 34,280 | |||||||||
Class R | 248 | 4 | |||||||||
35,250 | 63,315 |
(a) Class R was offerred for investment on June 15, 2006.
(b) Amount represents initial seeding of the Class.
(c) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 4
TA IDEX Asset Allocation – Moderate Growth Portfolio
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 13.05 | $ | 0.30 | $ | 0.77 | $ | 1.07 | $ | (0.34 | ) | $ | (0.32 | ) | $ | (0.66 | ) | $ | 13.46 | |||||||||||||||||||
10/31/2006 | 11.88 | 0.15 | 1.53 | 1.68 | (0.20 | ) | (0.31 | ) | (0.51 | ) | 13.05 | ||||||||||||||||||||||||||||
10/31/2005 | 10.97 | 0.16 | 1.00 | 1.16 | (0.20 | ) | (0.05 | ) | (0.25 | ) | 11.88 | ||||||||||||||||||||||||||||
10/31/2004 | 10.13 | 0.05 | 0.87 | 0.92 | (0.08 | ) | – | (0.08 | ) | 10.97 | |||||||||||||||||||||||||||||
10/31/2003 | 8.37 | 0.04 | 1.77 | 1.81 | (0.05 | ) | – | (0.05 | ) | 10.13 | |||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.02 | (1.65 | ) | (1.63 | ) | – | – | – | 8.37 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 12.94 | 0.25 | 0.78 | 1.03 | (0.26 | ) | (0.32 | ) | (0.58 | ) | 13.39 | |||||||||||||||||||||||||||
10/31/2006 | 11.80 | 0.06 | 1.52 | 1.58 | (0.13 | ) | (0.31 | ) | (0.44 | ) | 12.94 | ||||||||||||||||||||||||||||
10/31/2005 | 10.90 | 0.08 | 1.01 | 1.09 | (0.14 | ) | (0.05 | ) | (0.19 | ) | 11.80 | ||||||||||||||||||||||||||||
10/31/2004 | 10.09 | (0.02 | ) | 0.85 | 0.83 | (0.02 | ) | – | (0.02 | ) | 10.90 | ||||||||||||||||||||||||||||
10/31/2003 | 8.33 | (0.02 | ) | 1.78 | 1.76 | – | – | – | 10.09 | ||||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.01 | ) | (1.66 | ) | (1.67 | ) | – | – | – | 8.33 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 12.95 | 0.25 | 0.77 | 1.02 | (0.27 | ) | (0.32 | ) | (0.59 | ) | 13.38 | |||||||||||||||||||||||||||
10/31/2006 | 11.80 | 0.07 | 1.52 | 1.59 | (0.13 | ) | (0.31 | ) | (0.44 | ) | 12.95 | ||||||||||||||||||||||||||||
10/31/2005 | 10.91 | 0.08 | 1.01 | 1.09 | (0.15 | ) | (0.05 | ) | (0.20 | ) | 11.80 | ||||||||||||||||||||||||||||
10/31/2004 | 10.09 | (0.02 | ) | 0.86 | 0.84 | (0.02 | ) | – | (0.02 | ) | 10.91 | ||||||||||||||||||||||||||||
10/31/2003 | 8.31 | (0.02 | ) | 1.80 | 1.78 | – | – | – | 10.09 | ||||||||||||||||||||||||||||||
Class R | 4/30/2007 | 13.05 | 0.21 | 0.85 | 1.06 | (0.36 | ) | (0.32 | ) | (0.68 | ) | 13.43 | |||||||||||||||||||||||||||
10/31/2006 | 12.13 | 0.10 | 0.82 | 0.92 | – | – | – | 13.05 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a)(j) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a)(i) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 8.46 | % | $ | 1,124,996 | 0.58 | % | 0.58 | % | 4.58 | % (l) | 18 | % | ||||||||||||||||||
10/31/2006 | 14.59 | 914,835 | 0.61 | (k) | 0.61 | (k) | 1.17 | (l) | 21 | ||||||||||||||||||||||
10/31/2005 | 10.69 | 560,231 | 0.28 | 0.28 | 1.37 | (l) | 26 | ||||||||||||||||||||||||
10/31/2004 | 9.09 | 352,852 | 0.32 | (h) | 0.32 | (h) | 0.45 | 3 | |||||||||||||||||||||||
10/31/2003 | 21.79 | 136,295 | 0.44 | 0.44 | 0.48 | 15 | |||||||||||||||||||||||||
10/31/2002 | (16.30 | ) | 20,681 | 0.45 | 0.90 | 0.41 | 21 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 8.13 | 609,155 | 1.26 | 1.26 | 3.93 | (l) | 18 | |||||||||||||||||||||||
10/31/2006 | 13.74 | 549,040 | 1.28 | (k) | 1.28 | (k) | 0.51 | (l) | 21 | ||||||||||||||||||||||
10/31/2005 | 10.05 | 428,677 | 0.95 | 0.95 | 0.68 | (l) | 26 | ||||||||||||||||||||||||
10/31/2004 | 8.25 | 333,533 | 0.97 | (h) | 0.97 | (h) | (0.19 | ) | 3 | ||||||||||||||||||||||
10/31/2003 | 21.15 | 190,621 | 1.09 | 1.09 | (0.17 | ) | 15 | ||||||||||||||||||||||||
10/31/2002 | (16.70 | ) | 33,241 | 1.10 | 1.55 | (0.24 | ) | 21 | |||||||||||||||||||||||
Class C | 4/30/2007 | 8.09 | 1,817,729 | 1.22 | 1.22 | 3.94 | (l) | 18 | |||||||||||||||||||||||
10/31/2006 | 13.87 | 1,520,489 | 1.24 | (k) | 1.24 | (k) | 0.55 | (l) | 21 | ||||||||||||||||||||||
10/31/2005 | 10.02 | 981,156 | 0.90 | 0.90 | 0.74 | (l) | 26 | ||||||||||||||||||||||||
10/31/2004 | 8.35 | 675,562 | 0.92 | (h) | 0.92 | (h) | (0.15 | ) | 3 | ||||||||||||||||||||||
10/31/2003 | 21.44 | 239,043 | 1.09 | 1.09 | (0.17 | ) | 15 | ||||||||||||||||||||||||
Class R | 4/30/2007 | 8.36 | 3,388 | 0.65 | 0.65 | 3.19 | 18 | ||||||||||||||||||||||||
10/31/2006 | 7.58 | 54 | 0.66 | (k) | 0.66 | (k) | 2.08 | 21 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 5
TA IDEX Asset Allocation – Moderate Growth Portfolio
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see Note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Asset Allocation – Moderate Growth Portfolio ("the Fund") commenced operations on March 1, 2002. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class R was June 15, 2006.
(h) Ratios of Total Expenses to Average Net Assets and net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment advisor, if any. The impact of recaptured expenses was 0.01%, 0.01% and 0.01% for Class A, Class B and Class C, respectively (see Note 2).
(i) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(j) Does not include expenses of the investment companies in which the Fund invests.
(k) On November 15, 2005, the Fund was authorized under the 12b-1 plan to pay fees on each class up to the following limits: Class A 0.35%, Class B 1.00%, Class C 1.00%, Class R 0.50%.
(l) Ratios of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 6
TA IDEX Asset Allocation – Moderate Growth Portfolio
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Asset Allocation – Moderate Growth Portfolio (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class R, each with a public offering price that reflects different sales charges, if any, and expense levels. Class R commenced operations on June 15, 2006. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: Investment company securities are valued at the net asset value of the underlying portfolio.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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. Dividends and net realized gain (loss) from investment securities for the Fund are from investments in shares of affiliated investment companies.
Redemption fees: A short-term trading redemption fee may be assessed on any fund shares in a fund account that are sold during the first five (5) New York Stock Exchange ("NYSE") trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received $5 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC ("TIM") is an affiliate of the Fund and a sub-adviser to other funds within Transamerica IDEX Mutual Funds.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of underlying funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following rate:
0.10% of ANA
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
0.45% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There are no amounts available for recapture at April 30, 2007.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 7
TA IDEX Asset Allocation – Moderate Growth Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class R | 0.50 | % |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 6,072 | |||||
Retained by Underwriter | 985 | ||||||
Contingent Deferred Sales Charge | 692 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.0125% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $1,415 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $62.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $135. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 1,021,046 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 575,334 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and distribution reclasses.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 8
TA IDEX Asset Allocation – Moderate Growth Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 9
TA IDEX Asset Allocation – Moderate Growth Portfolio
INVESTMENT ADVISORY AND ASSET ALLOCATION MANAGEMENT AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Asset Allocation - Moderate Growth Portfolio (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Asset Allocation Management Agreement of the Fund between TFAI and Morningstar Associates, LLC (the "Portfolio Construction Manager"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Asset Allocation Management Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investme nt Advisory Agreement and the Asset Allocation Management Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Portfolio Construction Manager such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Portfolio Construction Manager (such as in-person presentations by the Portfolio Construction Manager) 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and the Asset Allocation Management Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX coun sel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Portfolio Construction Manager to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Portfolio Construction Manager are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Portfolio Construction Manager's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Portfolio Construction Manager, TFAI's management oversight process, the professional qualifications and experience of the Po rtfolio Construction Manager's portfolio management team, and the Fund's investment performance. The Trustees also concluded that TFAI and the Portfolio Construction Manager proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Portfolio Construction Manager's obligations will remain substantially the same. They also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional way.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Portfolio Construction Manager generally had achieved strong investment performance, favorably noting that the performance of the Fund generally has been superior relative to its peers over the past one-, two- and three-year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Portfolio Construction Manager, the Trustees concluded that TFAI and the Portfolio Construction Manager are capable of generating a level of investment performance that is appro priate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Portfolio Construction Manager's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Board noted that the Portfolio Construction Manager receives the entirety of the management fee payable by the Fund because TFAI is compensated through the management fees payable by the underlying funds in which the Fund invests. The Trustees reviewed data from Lipper that compared the Fund's management fees, other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rates against a peer group of comparable funds. Based on such information, the Trustees determined that the management fees are generally lower than industry averages and the overall expense ratio of the Fund generally is consistent with industry averages. In
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 10
TA IDEX Asset Allocation – Moderate Growth Portfolio (continued)
addition, on the basis of the Board's review of the management fees charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Portfolio Construction Manager, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Portfolio Construction Manager's profitability, currently are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Portfolio Construction Manager.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board noted that the management fee of the Fund does not contain asset-based breakpoints, despite ongoing efforts to negotiate such breakpoints. The Board reviewed at length the information provided in response to a request that Management evaluate the Fund's pricing and fees, and the Board noted that the information included comparisons with the pricing structures of comparable funds. The Board also noted that, based on the information provided by TFAI, the Fund's investments in underlying funds have permitted meaningful economies of scale and the realization of breakpoints (or lower breakpoints) at the underlying fund level which, indirectly, benefit the Fund and its shareholders, as well as the underlying funds. The Boar d carefully reviewed the performance record and the fees and expenses of the Fund and the comparative information provided by Lipper. The Board noted that the Fund has management fees in line with, or lower than, its peers. The Board concluded that the Fund's management fee appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 by the underlying funds to TFAI and fees payable to the Portfolio Construction Manager, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Portfolio Construction Manager from their relationship with the Fund. The Board concluded that other benefits derived by TFAI (including any benefits derived from investment advisory fees payable to TFAI with respect to the underlying funds in which the Fund invests) or the Portfolio Construction Manager from its relationship with the Fund are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that neither TFAI nor the Portfolio Construction Manager realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations. As a general matter, the Board also noted the popularity of the Fund with shareholders and the consequential ancillary benefits to the various underlying funds.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Portfolio Construction Manager. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Growth Portfolio 11
TA IDEX Asset Allocation – Moderate Portfolio
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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. The expenses shown in the table do not reflect any expenses from the Fund's investment in other affiliated investment companies. The average weighted annualized expense ratio of the underlying investment companies at April 30, 2007, was 0.85%.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,070.70 | 0.57 | % | $ | 2.93 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,021.97 | 0.57 | 2.86 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,067.00 | 1.25 | 6.41 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.60 | 1.25 | 6.26 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,067.30 | 1.21 | 6.20 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.79 | 1.21 | 6.06 | |||||||||||||||
Class R | |||||||||||||||||||
Actual | 1,000.00 | 1,071.10 | 0.67 | 3.44 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,021.47 | 0.67 | 3.36 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Investment Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the aggregate portfolio holdings of the underlying affiliated investment companies in which the Fund invests. The security lending collateral in the underlying funds is excluded from this calculation.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 1
TA IDEX Asset Allocation – Moderate Portfolio
SCHEDULE OF INVESTMENTS ø
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
INVESTMENT COMPANIES (99.9%) | |||||||||||
Aggressive Equity (9.4%) | |||||||||||
TA IDEX Evergreen Health Care | 1,930,993 | $ | 26,435 | ||||||||
TA IDEX JP Morgan Mid Cap Value | 3,393,033 | 41,463 | |||||||||
TA IDEX Oppenheimer Small- & Mid-Cap Value | 1,297,781 | 16,391 | |||||||||
TA IDEX Transamerica Growth Opportunities ‡ | 3,226,938 | 28,881 | |||||||||
TA IDEX Transamerica Small/ Mid Cap Value | 3,548,730 | 70,762 | |||||||||
Capital Preservation (1.6%) | |||||||||||
TA IDEX Loomis Sayles Bond | 2,451,899 | 24,985 | |||||||||
TA IDEX Transamerica Money Market | 5,499,658 | 5,500 | |||||||||
Fixed-Income (33.0%) | |||||||||||
TA IDEX PIMCO Real Return TIPS | 10,802,654 | 109,755 | |||||||||
TA IDEX PIMCO Total Return | 19,526,002 | 201,703 | |||||||||
TA IDEX Transamerica Convertible Securities | 5,523,759 | 70,373 | |||||||||
TA IDEX Transamerica Flexible Income | 7,351,667 | 70,061 | |||||||||
TA IDEX Transamerica High-Yield Bond | 11,993,269 | 113,696 | |||||||||
TA IDEX Transamerica Short-Term Bond | 8,138,842 | 80,493 | |||||||||
Foreign Fixed-Income (8.7%) | |||||||||||
TA IDEX JPMorgan International Bond | 12,437,783 | 131,343 | |||||||||
TA IDEX Van Kampen Emerging Markets Debt | 3,556,484 | 39,726 | |||||||||
Growth & Income (1.1%) | |||||||||||
TA IDEX UBS Dynamic Alpha ‡ | 2,066,553 | 20,645 | |||||||||
Growth Equity (32.9%) | |||||||||||
TA IDEX American Century Large Company Value | 9,695,500 | 123,036 | |||||||||
TA IDEX Bjurman, Barry Micro Emerging Growth ‡ | 380,773 | 4,219 |
Shares | Value | ||||||||||
Growth Equity (continued) | |||||||||||
TA IDEX BlackRock Large Cap Value | 6,523,004 | $ | 83,821 | ||||||||
TA IDEX BlackRock Natural Resources ‡ | 1,260,579 | 14,055 | |||||||||
TA IDEX Federated Market Opportunity | 3,011,910 | 28,493 | |||||||||
TA IDEX Jennison Growth | 313,689 | 3,642 | |||||||||
TA IDEX Legg Mason Partners Investors Value | 14,157 | 139 | |||||||||
TA IDEX Marsico Growth | 6,560,632 | 78,662 | |||||||||
TA IDEX Mellon Market Neutral Strategy ‡ | 3,562,659 | 35,947 | |||||||||
TA IDEX Transamerica Equity‡ | 12,549,848 | 130,518 | |||||||||
TA IDEX Transamerica Science & Technology ‡ | 3,057,294 | 12,932 | |||||||||
TA IDEX UBS Large Cap Value | 7,678,618 | 103,277 | |||||||||
TA IDEX Van Kampen Mid-Cap Growth | 354,501 | 4,137 | |||||||||
TA IDEX Van Kampen Small Company Growth | 1,595,911 | 21,130 | |||||||||
Specialty–Real Estate (3.1%) | |||||||||||
TA IDEX Clarion Global Real Estate Securities | 2,977,696 | 60,894 | |||||||||
World Equity (10.1%) | |||||||||||
TA IDEX AllianceBernstein International Value | 2,311,011 | 32,031 | |||||||||
TA IDEX BlackRock Global Allocation | 921,304 | 10,890 | |||||||||
TA IDEX Evergreen International Small Cap | 1,910,293 | 32,551 | |||||||||
TA IDEX Marsico International Growth | 2,332,124 | 31,134 | |||||||||
TA IDEX Neuberger Berman International | 2,475,769 | 31,715 | |||||||||
TA IDEX Oppenheimer Developing Markets | 2,681,336 | 35,045 | |||||||||
TA IDEX Templeton Transamerica Global | 721,652 | 23,158 | |||||||||
Total Investment Companies (cost: $1,718,338) # | $ | 1,953,638 |
NOTES TO SCHEDULE OF INVESTMENTS:
ø The Fund invests its assets in Class I shares of the affiliated Transamerica IDEX Mutual Funds.
‡ Non-income producing.
# Aggregate cost for federal income tax purposes is $1,718,901. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $237,356 and $2,619, respectively. Net unrealized appreciation for tax purposes is $234,737.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 2
TA IDEX Asset Allocation – Moderate Portfolio
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment in affiliated investment companies at value (cost: $1,718,338) | $ | 1,953,638 | |||||
Receivables: | |||||||
Shares of beneficial interest sold | 8,408 | ||||||
Dividends | 10 | ||||||
Other | 44 | ||||||
1,962,100 | |||||||
Liabilities: | |||||||
Investment securities purchased | 2,171 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 2,933 | ||||||
Management and advisory fees | 163 | ||||||
Distribution and service fees | 1,323 | ||||||
Transfer agent fees | 106 | ||||||
Administration fees | 20 | ||||||
Other | 131 | ||||||
6,847 | |||||||
Net Assets | $ | 1,955,253 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 1,654,364 | |||||
Undistributed (accumulated) net investment income (loss) | 2,659 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment in affiliated investment companies | 62,930 | ||||||
Net unrealized appreciation (depreciation) on investment in affiliated investment companies | 235,300 | ||||||
Net Assets | $ | 1,955,253 | |||||
Net Assets by Class: | |||||||
Class A | $ | 574,823 | |||||
Class B | 349,859 | ||||||
Class C | 1,029,079 | ||||||
Class R | 1,492 | ||||||
Shares Outstanding: | |||||||
Class A | 44,900 | ||||||
Class B | 27,446 | ||||||
Class C | 80,819 | ||||||
Class R | 117 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 12.80 | |||||
Class B | 12.75 | ||||||
Class C | 12.73 | ||||||
Class R | 12.79 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 13.54 |
(a) 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 and R shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends from affiliated investment companies | $ | 45,649 | |||||
Expenses: | |||||||
Management and advisory fees | 905 | ||||||
Distribution and service fees: | |||||||
Class A | 901 | ||||||
Class B | 1,700 | ||||||
Class C | 4,776 | ||||||
Class R | 1 | ||||||
Transfer agent fees: | |||||||
Class A | 198 | ||||||
Class B | 181 | ||||||
Class C | 321 | ||||||
Class R | – | (b) | |||||
Printing and shareholder reports | 47 | ||||||
Custody fees | 30 | ||||||
Administration fees | 113 | ||||||
Legal fees | 21 | ||||||
Audit fees | 11 | ||||||
Trustees fees | 35 | ||||||
Registration fees | 99 | ||||||
Other | 14 | ||||||
Total expenses | 9,353 | ||||||
Net Investment Income (Loss) | 36,296 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies: | |||||||
Realized gain (loss) from investment in affiliated investment companies | 35,301 | ||||||
Realized gain distributions from investment in affiliated investment companies | 28,080 | ||||||
63,381 | |||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment in affiliated investment companies | 20,518 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies | 83,899 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 120,195 |
(b) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 3
TA IDEX Asset Allocation – Moderate Portfolio
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) In Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 36,296 | $ | 22,736 | |||||||
Net realized gain (loss) from investment in affiliated investment companies | 63,381 | 46,259 | |||||||||
Change in unrealized appreciation (depreciation) on investment in affiliated investment companies | 20,518 | 93,731 | |||||||||
120,195 | 162,726 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (14,285 | ) | (8,158 | ) | |||||||
Class B | (7,540 | ) | (5,251 | ) | |||||||
Class C | (21,655 | ) | (12,581 | ) | |||||||
Class R | (2 | ) | – | ||||||||
(43,482 | ) | (25,990 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (12,970 | ) | (7,262 | ) | |||||||
Class B | (8,962 | ) | (6,368 | ) | |||||||
Class C | (24,568 | ) | (14,834 | ) | |||||||
Class R | (1 | ) | – | ||||||||
(46,501 | ) | (28,464 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 123,258 | 191,547 | |||||||||
Class B | 24,317 | 57,008 | |||||||||
Class C | 163,488 | 291,146 | |||||||||
Class R | 1,526 | 50 | (b) | ||||||||
312,589 | 539,751 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 24,128 | 13,604 | |||||||||
Class B | 13,765 | 9,722 | |||||||||
Class C | 32,294 | 19,404 | |||||||||
Class R | 3 | – | |||||||||
70,190 | 42,730 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (53,740 | ) | (92,905 | ) | |||||||
Class B | (29,189 | ) | (47,850 | ) | |||||||
Class C | (88,094 | ) | (140,834 | ) | |||||||
Class R | (121 | ) | – | ||||||||
(171,144 | ) | (281,589 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | 1 | 4 | |||||||||
Class B | 1 | 1 | |||||||||
Class C | 3 | 3 | |||||||||
5 | 8 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 1,174 | $ | 674 | |||||||
Class B | (1,174 | ) | (674 | ) | |||||||
– | – | ||||||||||
211,640 | 300,900 | ||||||||||
Net increase (decrease) in net assets | 241,852 | 409,172 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 1,713,401 | 1,304,229 | |||||||||
End of period | $ | 1,955,253 | $ | 1,713,401 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 2,659 | $ | 9,845 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 9,804 | 15,775 | |||||||||
Class B | 1,943 | 4,729 | |||||||||
Class C | 13,088 | 24,146 | |||||||||
Class R | 123 | 4 | (b) | ||||||||
24,958 | 44,654 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 1,955 | 1,169 | |||||||||
Class B | 1,117 | 837 | |||||||||
Class C | 2,623 | 1,671 | |||||||||
5,695 | 3,677 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (4,279 | ) | (7,664 | ) | |||||||
Class B | (2,331 | ) | (3,968 | ) | |||||||
Class C | (7,042 | ) | (11,684 | ) | |||||||
Class R | (10 | ) | – | ||||||||
(13,662 | ) | (23,316 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 94 | 55 | |||||||||
Class B | (94 | ) | (56 | ) | |||||||
– | (1 | ) | |||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 7,574 | 9,335 | |||||||||
Class B | 635 | 1,542 | |||||||||
Class C | 8,669 | 14,133 | |||||||||
Class R | 113 | 4 | |||||||||
16,991 | 25,014 |
(a) Class R was offered for investment on June 15th, 2006.
(b) Amount represents initial seeding of the class.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 4
TA IDEX Asset Allocation – Moderate Portfolio
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 12.64 | $ | 0.28 | $ | 0.59 | $ | 0.87 | $ | (0.37 | ) | $ | (0.34 | ) | $ | (0.71 | ) | $ | 12.80 | |||||||||||||||||||
10/31/2006 | 11.78 | 0.24 | 1.15 | 1.39 | (0.28 | ) | (0.25 | ) | (0.53 | ) | 12.64 | ||||||||||||||||||||||||||||
10/31/2005 | 11.23 | 0.27 | 0.67 | 0.94 | (0.33 | ) | (0.06 | ) | (0.39 | ) | 11.78 | ||||||||||||||||||||||||||||
10/31/2004 | 10.42 | 0.12 | 0.84 | 0.96 | (0.15 | ) | – | (0.15 | ) | 11.23 | |||||||||||||||||||||||||||||
10/31/2003 | 8.76 | 0.12 | 1.62 | 1.74 | (0.08 | ) | – | (0.08 | ) | 10.42 | |||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.04 | (1.28 | ) | (1.24 | ) | – | – | – | 8.76 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 12.55 | 0.24 | 0.58 | 0.82 | (0.28 | ) | (0.34 | ) | (0.62 | ) | 12.75 | |||||||||||||||||||||||||||
10/31/2006 | 11.70 | 0.16 | 1.15 | 1.31 | (0.21 | ) | (0.25 | ) | (0.46 | ) | 12.55 | ||||||||||||||||||||||||||||
10/31/2005 | 11.16 | 0.18 | 0.68 | 0.86 | (0.26 | ) | (0.06 | ) | (0.32 | ) | 11.70 | ||||||||||||||||||||||||||||
10/31/2004 | 10.37 | 0.05 | 0.83 | 0.88 | (0.09 | ) | – | (0.09 | ) | 11.16 | |||||||||||||||||||||||||||||
10/31/2003 | 8.71 | 0.05 | 1.63 | 1.68 | (0.02 | ) | – | (0.02 | ) | 10.37 | |||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.01 | (1.30 | ) | (1.29 | ) | – | – | – | 8.71 | |||||||||||||||||||||||||||||
Class C | 4/30/2007 | 12.54 | 0.24 | 0.59 | 0.83 | (0.30 | ) | (0.34 | ) | (0.64 | ) | 12.73 | |||||||||||||||||||||||||||
10/31/2006 | 11.70 | 0.16 | 1.14 | 1.30 | (0.21 | ) | (0.25 | ) | (0.46 | ) | 12.54 | ||||||||||||||||||||||||||||
10/31/2005 | 11.17 | 0.19 | 0.67 | 0.86 | (0.27 | ) | (0.06 | ) | (0.33 | ) | 11.70 | ||||||||||||||||||||||||||||
10/31/2004 | 10.37 | 0.05 | 0.84 | 0.89 | (0.09 | ) | – | (0.09 | ) | 11.17 | |||||||||||||||||||||||||||||
10/31/2003 | 8.71 | 0.05 | 1.63 | 1.68 | (0.02 | ) | – | (0.02 | ) | 10.37 | |||||||||||||||||||||||||||||
Class R | 4/30/2007 | 12.64 | 0.22 | 0.66 | 0.88 | (0.39 | ) | (0.34 | ) | (0.73 | ) | 12.79 | |||||||||||||||||||||||||||
10/31/2006 | 11.86 | 0.13 | 0.65 | 0.78 | – | – | – | 12.64 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets(a)(i) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a)(h) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 7.07 | % | $ | 574,823 | 0.57 | % | 0.57 | % | 4.46 | % (k) | 19 | % | ||||||||||||||||||
10/31/2006 | 12.22 | 471,902 | 0.58 | (j) | 0.58 | (j) | 1.98 | (k) | 22 | ||||||||||||||||||||||
10/31/2005 | 8.54 | 329,797 | 0.26 | 0.26 | 2.31 | (k) | 19 | ||||||||||||||||||||||||
10/31/2004 | 9.32 | 232,748 | 0.28 | 0.28 | 1.13 | 1 | |||||||||||||||||||||||||
10/31/2003 | 19.98 | 116,102 | 0.37 | 0.37 | 1.22 | 18 | |||||||||||||||||||||||||
10/31/2002 | (12.40 | ) | 17,517 | 0.45 | 0.78 | 0.83 | 12 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 6.70 | 349,859 | 1.25 | 1.25 | 3.82 | (k) | 19 | |||||||||||||||||||||||
10/31/2006 | 11.50 | 336,385 | 1.25 | (j) | 1.25 | (j) | 1.31 | (k) | 22 | ||||||||||||||||||||||
10/31/2005 | 7.81 | 295,649 | 0.92 | 0.92 | 1.61 | (k) | 19 | ||||||||||||||||||||||||
10/31/2004 | 8.62 | 261,772 | 0.93 | 0.93 | 0.48 | 1 | |||||||||||||||||||||||||
10/31/2003 | 19.39 | 183,148 | 1.02 | 1.02 | 0.57 | 18 | |||||||||||||||||||||||||
10/31/2002 | (12.90 | ) | 38,969 | 1.10 | 1.43 | 0.18 | 12 | ||||||||||||||||||||||||
Class C | 4/30/2007 | 6.73 | 1,029,079 | 1.21 | 1.21 | 3.83 | (k) | 19 | |||||||||||||||||||||||
10/31/2006 | 11.46 | 905,061 | 1.22 | (j) | 1.22 | (j) | 1.35 | (k) | 22 | ||||||||||||||||||||||
10/31/2005 | 7.85 | 678,783 | 0.89 | 0.89 | 1.67 | (k) | 19 | ||||||||||||||||||||||||
10/31/2004 | 8.67 | 518,527 | 0.89 | 0.89 | 0.50 | 1 | |||||||||||||||||||||||||
10/31/2003 | 19.39 | 201,774 | 1.02 | 1.02 | 0.57 | 18 | |||||||||||||||||||||||||
Class R | 4/30/2007 | 7.11 | 1,492 | 0.67 | 0.67 | 3.56 | 19 | ||||||||||||||||||||||||
10/31/2006 | 6.58 | 53 | 0.66 | (j) | 0.66 | (j) | 2.73 | 22 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 5
TA IDEX Asset Allocation – Moderate Portfolio
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Asset Allocation – Moderate Portfolio ("the Fund") commenced operations on March 1, 2002. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class R was June 15, 2006.
(h) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(i) Does not include expenses of the investment companies in which the Fund invests.
(j) On November 15, 2005, the Fund was authorized under the 12b-1 plan to pay fees on each class up to the following limits: Class A 0.35%, Class B 1.00%, Class C 1.00%, Class R 0.50%.
(k) Ratios of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The Impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 6
TA IDEX Asset Allocation – Moderate Portfolio
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Asset Allocation – Moderate Portfolio (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class R, each with a public offering price that reflects different sales charges, if any, and expense levels. Class R commenced operations on June 15, 2006. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: Investment company securities are valued at the net asset value of the underlying portfolio.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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. Dividends and net realized gain (loss) from investment securities for the Fund are from investments in shares of affiliated investment companies.
Redemption fees: A short-term trading redemption fee may be assessed on any fund shares in a fund account that are sold during the first five (5) New York Stock Exchange ("NYSE") trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received $5 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC ("TIM") is an affiliate of the Fund and a sub-adviser to other funds within Transamerica IDEX Mutual Funds.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of underlying funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following rate:
0.10% of ANA
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
0.45% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There are no amounts available for recapture at April 30, 2007.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 7
TA IDEX Asset Allocation – Moderate Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class R | 0.50 | % |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 2,754 | |||||
Retained by Underwriter | 455 | ||||||
Contingent Deferred Sales Charge | 406 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.0125% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $664 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $44.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $82. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 535,007 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 348,790 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 8
TA IDEX Asset Allocation – Moderate Portfolio
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to t he Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 9
TA IDEX Asset Allocation – Moderate Portfolio
INVESTMENT ADVISORY AND ASSET ALLOCATION MANAGEMENT AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Asset Allocation – Moderate Portfolio (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Asset Allocation Management Agreement of the Fund between TFAI and Morningstar Associates, LLC (the "Portfolio Construction Manager"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Asset Allocation Management Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Asset Allocation Management Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Portfolio Construction Manager such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Portfolio Construction Manager (such as in-person presentations by the Portfolio Construction Manager) 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and the Asset Allocation Management Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX counse l and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Portfolio Construction Manager to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Portfolio Construction Manager are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Portfolio Construction Manager's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Portfolio Construction Manager, TFAI's management oversight process, the professional qualifications and experience of the Po rtfolio Construction Manager's portfolio management team, and the Fund's investment performance. The Trustees also concluded that TFAI and the Portfolio Construction Manager proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Portfolio Construction Manager's obligations will remain substantially the same. They also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional way.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Portfolio Construction Manager generally had achieved strong investment performance, favorably noting that the performance of the Fund generally has been superior relative to its peers over the past one-, two- and three-year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Portfolio Construction Manager, the Trustees concluded that TFAI and the Portfolio Construction Manager are capable of generating a level of investment performance that is appro priate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Portfolio Construction Manager's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Board noted that the Portfolio Construction Manager receives the entirety of the management fee payable by the Fund because TFAI is compensated through the management fees payable by the underlying funds in which the Fund invests. The Trustees reviewed data from Lipper that compared the Fund's management fees, other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rates against a peer group of comparable funds. Based on such information, the Trustees determined that the management fees are generally lower than industry averages and the overall expense ratio of the Fund generally is consistent with industry averages. In addition, on
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 10
TA IDEX Asset Allocation – Moderate Portfolio (continued)
the basis of the Board's review of the management fees charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Portfolio Construction Manager, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Portfolio Construction Manager's profitability, currently are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Portfolio Construction Manager.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board noted that the management fee of the Fund does not contain asset-based breakpoints, despite ongoing efforts to negotiate such breakpoints. The Board reviewed at length the information provided in response to a request that Management evaluate the Fund's pricing and fees, and the Board noted that the information included comparisons with the pricing structures of comparable funds. The Board also noted that, based on the information provided by TFAI, the Fund's investments in underlying funds have permitted meaningful economies of scale and the realization of breakpoints (or lower breakpoints) at the underlying fund level which, indirectly, benefit the Fund and its shareholders, as well as the underlying funds. The Boar d carefully reviewed the performance record and the fees and expenses of the Fund and the comparative information provided by Lipper. The Board noted that the Fund has management fees in line with, or lower than, its peers. The Board concluded that the Fund's management fee appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 by the underlying funds to TFAI and fees payable to the Portfolio Construction Manager, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Portfolio Construction Manager from their relationship with the Fund. The Board concluded that other benefits derived by TFAI (including any benefits derived from investment advisory fees payable to TFAI with respect to the underlying funds in which the Fund invests) or the Portfolio Construction Manager from its relationship with the Fund are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that neither TFAI nor the Portfolio Construction Manager realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations. As a general matter, the Board also noted the popularity of the Fund with shareholders and the consequential ancillary benefits to the various underlying funds.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the fund management activities of the Portfolio Construction Manager. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for t he benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Asset Allocation – Moderate Portfolio 11
TA IDEX Clarion Global Real Estate Securities
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,142.40 | 1.15 | % | $ | 6.11 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,019.09 | 1.15 | 5.76 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,142.40 | 1.14 | 6.06 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,019.14 | 1.14 | 5.71 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,142.80 | 1.07 | 5.68 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,019.49 | 1.07 | 5.36 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,143.90 | 0.88 | 4.68 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.43 | 0.88 | 4.41 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Real Estate Property Breakdown
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by real estate property breakdown of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 1
TA IDEX Clarion Global Real Estate Securities
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (97.3%) | |||||||||||
Australia (10.5%) | |||||||||||
Centro Properties Group | 230,278 | $ | 1,792 | ||||||||
DB RREEF Trust | 486,254 | 729 | |||||||||
GPT Group (a) | 1,436,684 | 5,919 | |||||||||
Investa Property Group | 169,700 | 377 | |||||||||
Macquarie CountryWide Trust (a) | 992,170 | 1,767 | |||||||||
Macquarie Goodman Group | 913,084 | 5,404 | |||||||||
Mirvac Group | 272,264 | 1,192 | |||||||||
Stockland | 598,300 | 4,293 | |||||||||
Valad Property Group | 1,043,400 | 1,954 | |||||||||
Westfield Group (a) | 779,004 | 13,616 | |||||||||
Austria (0.9%) | |||||||||||
Conwert Immobilien Invest AG ‡ | 149,000 | 3,294 | |||||||||
Bermuda (2.3%) | |||||||||||
Hongkong Land Holdings, Ltd. | 1,108,700 | 5,189 | |||||||||
Kerry Properties, Ltd. | 618,000 | 3,109 | |||||||||
Canada (2.7%) | |||||||||||
Brookfield Properties Co. | 70,500 | 2,895 | |||||||||
Calloway Real Estate Investment Trust–144A | 40,600 | 1,010 | |||||||||
Dundee Real Estate Investment Trust | 72,700 | 2,638 | |||||||||
RioCan Real Estate Investment Trust | 126,900 | 2,951 | |||||||||
Cayman Islands (0.2%) | |||||||||||
Shui On Land, Ltd. ‡ | 730,300 | 630 | |||||||||
China (0.4%) | |||||||||||
Guangzhou R&F Properties Co., Ltd.–Class H | 528,100 | 1,275 | |||||||||
Finland (1.5%) | |||||||||||
Citycon Oyj | 267,600 | 2,155 | |||||||||
Sponda Oyj (a) | 182,980 | 3,119 | |||||||||
France (2.9%) | |||||||||||
Klepierre | 23,880 | 4,637 | |||||||||
Societe de la Tour Eiffel (a) | 11,100 | 1,897 | |||||||||
Unibail (a) | 13,920 | 3,884 | |||||||||
Germany (0.8%) | |||||||||||
Deutsche Wohnen AG | 17,180 | 1,008 | |||||||||
DIC Asset AG | 31,300 | 1,292 | |||||||||
IVG Immobilien AG | 13,212 | 599 | |||||||||
Hong Kong (5.9%) | |||||||||||
Agile Property Holdings, Ltd. | 2,023,700 | 2,137 | |||||||||
Cheung Kong Holdings, Ltd. (a) | 277,400 | 3,618 | |||||||||
Hang Lung Development Co. | 600,348 | 2,310 | |||||||||
Hang Lung Properties, Ltd. | 815,100 | 2,433 | |||||||||
Link (The) (a) | 645,200 | 1,475 | |||||||||
Sun Hung Kai Properties, Ltd. | 751,245 | 8,827 | |||||||||
Italy (0.5%) | |||||||||||
Beni Stabili SpA (a) | 992,060 | 1,690 |
Shares | Value | ||||||||||
Japan (14.8%) | |||||||||||
Japan Logistics Fund, Inc. (a) | 224 | $ | 2,259 | ||||||||
Japan Retail Fund Investment (a) | 213 | 2,144 | |||||||||
Kenedix Realty Investment Corp. (a) | 138 | 1,035 | |||||||||
Mitsubishi Estate Co., Ltd. | 538,600 | 16,696 | |||||||||
Mitsui Fudosan Co., Ltd. | 563,200 | 16,437 | |||||||||
New City Residence Investment Corp. | 239 | 1,356 | |||||||||
Nippon Accommodations Fund, Inc. | 147 | 1,145 | |||||||||
Nippon Building Fund, Inc. (a) | 247 | 3,992 | |||||||||
Nomura Real Estate Residential Fund, Inc. ‡ | 113 | 887 | |||||||||
Sumitomo Realty & Development Co., Ltd. | 167,000 | 6,163 | |||||||||
Netherlands (1.2%) | |||||||||||
Rodamco Europe NV (a) | 17,700 | 2,623 | |||||||||
Vastned Retail NV (a) | 15,400 | 1,503 | |||||||||
Norway (0.3%) | |||||||||||
Norwegian Property ASA ‡ | 82,500 | 992 | |||||||||
Singapore (3.8%) | |||||||||||
Allgreen Properties, Ltd. | 143,500 | 173 | |||||||||
Capitaland, Ltd. | 1,112,500 | 6,222 | |||||||||
CapitaMall Trust (a) | 1,080,500 | 2,830 | |||||||||
City Developments, Ltd. | 77,700 | 823 | |||||||||
Keppel Land, Ltd. | 411,500 | 2,396 | |||||||||
Wing Tai Holdings, Ltd. | 360,300 | 797 | |||||||||
Sweden (1.3%) | |||||||||||
Castellum AB | 298,800 | 4,566 | |||||||||
United Kingdom (10.3%) | |||||||||||
British Land Co. PLC | 288,500 | 8,499 | |||||||||
Derwent London PLC (a) | 101,729 | 4,343 | |||||||||
Great Portland Estates PLC | 225,600 | 3,246 | |||||||||
Hammerson PLC | 106,400 | 3,245 | |||||||||
Land Securities Group PLC | 301,660 | 11,836 | |||||||||
Mapeley, Ltd. | 7,855 | 589 | |||||||||
Safestore Holdings, Ltd. ‡ | 677,500 | 3,333 | |||||||||
Slough Estates PLC | 68,080 | 1,052 | |||||||||
United States (37.0%) | |||||||||||
AMB Property Corp. | 34,900 | 2,126 | |||||||||
Archstone-Smith Trust | 97,500 | 5,081 | |||||||||
AvalonBay Communities, Inc. † | 46,000 | 5,624 | |||||||||
BioMed Realty Trust, Inc. | 64,700 | 1,858 | |||||||||
Boston Properties, Inc. | 71,700 | 8,429 | |||||||||
BRE Properties–Class A † | 62,000 | 3,722 | |||||||||
Camden Property Trust | 30,060 | 2,094 | |||||||||
Corporate Office Properties Trust SBI MD † | 42,700 | 2,012 | |||||||||
Developers Diversified Realty Corp. † | 53,900 | 3,509 | |||||||||
Douglas Emmett, Inc. | 56,300 | 1,467 | |||||||||
Equity Residential | 64,600 | 2,999 | |||||||||
Extra Space Storage, Inc. † | 51,300 | 960 | |||||||||
Federal Realty Investment Trust | 47,000 | 4,238 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 2
TA IDEX Clarion Global Real Estate Securities
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
United States (continued) | |||||||||||
General Growth Properties, Inc. † | 104,260 | $ | 6,657 | ||||||||
Health Care Property Investors, Inc. | 74,100 | 2,622 | |||||||||
Highwood Properties, Inc. † | 63,500 | 2,590 | |||||||||
Hilton Hotels Corp. | 67,100 | 2,281 | |||||||||
Home Properties, Inc. | 25,300 | 1,409 | |||||||||
Host Hotels & Resorts, Inc. † | 249,043 | 6,385 | |||||||||
Kilroy Realty Corp. | 21,800 | 1,655 | |||||||||
Kimco Realty Corp. | 57,686 | 2,773 | |||||||||
LaSalle Hotel Properties | 21,700 | 1,008 | |||||||||
Liberty Property Trust | 51,449 | 2,490 | |||||||||
Macerich Co. (The) | 48,600 | 4,623 | |||||||||
Maguire Properties, Inc. † | 16,800 | 605 | |||||||||
Nationwide Health Properties, Inc. † | 86,500 | 2,773 | |||||||||
Omega Healthcare Investors, Inc. | 107,300 | 1,803 | |||||||||
Prologis † | 89,700 | 5,813 | |||||||||
Public Storage, Inc. | 44,900 | 4,190 | |||||||||
Regency Centers Corp. | 57,900 | 4,771 | |||||||||
Simon Property Group, Inc. | 108,600 | 12,519 | |||||||||
SL Green Realty Corp. | 35,300 | 4,974 | |||||||||
Strategic Hotels & Resorts, Inc. | 42,200 | 914 | |||||||||
Sunstone Hotel Investors, Inc. † | 50,600 | 1,443 | |||||||||
Taubman Centers, Inc. | 27,100 | 1,519 | |||||||||
UDR, Inc. | 79,900 | 2,400 | |||||||||
Ventas, Inc. | 39,200 | 1,653 | |||||||||
Vornado Realty Trust | 53,100 | 6,299 | |||||||||
Total Common Stocks (cost: $264,278) | 342,585 | ||||||||||
Contracts u | Value | ||||||||||
PURCHASED OPTIONS (0.7%) | |||||||||||
Put Options (0.7%) | |||||||||||
Brascan Residential Properties m Put Strike $.00 Expires 10/22/2007 | 306,100 | $ | 2,325 | ||||||||
Total Purchased Options (cost: $2,298) | 2,325 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (8.9%) | |||||||||||
Debt (8.9%) | |||||||||||
Bank Notes (0.5%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 982 | $ | 982 | |||||||
5.27%, due 06/18/2007 * | 982 | 982 | |||||||||
Commercial Paper (1.9%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 393 | 393 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 380 | 380 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Charta LLC–144A 5.30%, due 05/09/2007 | $ | 261 | $ | 261 | |||||||
5.29%, due 06/13/2007 | 196 | 196 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 196 | 196 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 196 | 196 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 196 | 196 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 | 196 | 196 | |||||||||
5.28%, due 05/24/2007 | 196 | 196 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 393 | 393 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 384 | 384 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 393 | 393 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 393 | 393 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 | 777 | 777 | |||||||||
5.30%, due 05/29/2007 | 196 | 196 | |||||||||
5.29%, due 05/31/2007 | 196 | 196 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 | 196 | 196 | |||||||||
5.29%, due 05/17/2007 | 196 | 196 | |||||||||
5.28%, due 06/01/2007 | 196 | 196 | |||||||||
5.29%, due 06/19/2007 | 259 | 259 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 295 | 295 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 196 | 196 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 393 | 393 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 196 | 196 | |||||||||
Euro Dollar Overnight (1.1%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 196 | 196 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 393 | 393 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 393 | 393 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 393 | 393 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 393 | 393 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 3
TA IDEX Clarion Global Real Estate Securities
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | $ | 393 | $ | 393 | |||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 393 | 393 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 196 | 196 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 393 | 393 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 745 | 745 | |||||||||
Euro Dollar Terms (3.3%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 393 | 393 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 196 | 196 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 275 | 275 | |||||||||
Barclays 5.29%, due 05/07/2007 | 393 | 393 | |||||||||
5.30%, due 05/16/2007 | 393 | 393 | |||||||||
5.29%, due 05/21/2007 | 196 | 196 | |||||||||
5.30%, due 06/04/2007 | 196 | 196 | |||||||||
5.29%, due 06/08/2007 | 393 | 393 | |||||||||
Calyon 5.30%, due 05/17/2007 | 196 | 196 | |||||||||
5.31%, due 05/24/2007 | 393 | 393 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 | 589 | 589 | |||||||||
5.28%, due 05/29/2007 | 196 | 196 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 393 | 393 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 393 | 393 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Fortis Bank 5.28%, due 05/21/2007 | $ | 589 | $ | 589 | |||||||
5.28%, due 05/25/2007 | 589 | 589 | |||||||||
5.30%, due 06/25/2007 | 393 | 393 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 589 | 589 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 | 393 | 393 | |||||||||
5.30%, due 05/09/2007 | 196 | 196 | |||||||||
5.31%, due 05/25/2007 | 393 | 393 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 196 | 196 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 393 | 393 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 393 | 393 | |||||||||
UBS AG 5.28%, due 06/01/2007 | 393 | 393 | |||||||||
5.29%, due 06/12/2007 | 785 | 785 | |||||||||
5.29%, due 06/15/2007 | 589 | 589 | |||||||||
5.29%, due 06/18/2007 | 982 | 982 | |||||||||
Repurchase Agreements (2.1%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $1,087 on 05/01/2007 | 1,087 | 1,087 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $4,320 on 05/01/2007 | 4,319 | 4,319 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,892 on 05/01/2007 | 1,892 | 1,892 | |||||||||
Total Security Lending Collateral (cost: $31,487) | 31,487 | ||||||||||
Total Investment Securities (cost: $298,063) # | $ | 376,397 |
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Passive Foreign Investment Company.
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $30,537.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $7,487, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
u Contract amounts are not in thousands.
m Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees.
# Aggregate cost for federal income tax purposes is $306,996. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $69,742 and $341, respectively. Net unrealized appreciation for tax purposes is $69,401.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $6,897 or 2.0% of the net assets of the Fund.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 4
TA IDEX Clarion Global Real Estate Securities
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Percentage of Net Assets | Value | ||||||||||
INVESTMENTS BY INDUSTRY: | |||||||||||
Diversified | 16.2 | % | $ | 56,992 | |||||||
Shopping Center | 12.6 | % | 44,379 | ||||||||
Regional Mall | 11.8 | % | 41,498 | ||||||||
Office Property | 11.7 | % | 41,042 | ||||||||
Engineering & Management Services | 10.0 | % | 35,168 | ||||||||
Residential Building Construction | 7.9 | % | 27,956 | ||||||||
Apartments | 7.3 | % | 25,830 | ||||||||
Operating/Development | 5.6 | % | 19,593 | ||||||||
Hotels | 5.1 | % | 17,951 | ||||||||
Industrial Property | 3.0 | % | 10,428 | ||||||||
Health Care | 2.5 | % | 8,851 | ||||||||
Storage | 2.4 | % | 8,483 | ||||||||
Put Options | 0.7 | % | 2,325 | ||||||||
Warehouse | 0.6 | % | 2,259 | ||||||||
Management Services | 0.6 | % | 2,155 | ||||||||
Investment Securities, at value | 98.0 | % | 344,910 | ||||||||
Short-Term Investments | 8.9 | % | 31,487 | ||||||||
Total Investment Securities | 106.9 | % | $ | 376,397 |
The notes to the financial statements are an integral part of this report.
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Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 5
TA IDEX Clarion Global Real Estate Securities
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $298,063) (including securities loaned of $30,537) | $ | 376,397 | |||||
Cash | 4,843 | ||||||
Foreign currency (cost: $78) | 78 | ||||||
Receivables: | |||||||
Investment securities sold | 2,297 | ||||||
Shares of beneficial interest sold | 412 | ||||||
Interest | 18 | ||||||
Dividends | 704 | ||||||
Other | 6 | ||||||
384,755 | |||||||
Liabilities: | |||||||
Investment securities purchased | 959 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 46 | ||||||
Management and advisory fees | 235 | ||||||
Transfer agent fees | 5 | ||||||
Administration fees | 6 | ||||||
Payable for collateral for securities on loan | 31,487 | ||||||
Other | 42 | ||||||
32,780 | |||||||
Net Assets | $ | 351,975 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 244,954 | |||||
Undistributed (accumulated) net investment income (loss) | (7,805 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | 36,467 | ||||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | 78,334 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 25 | ||||||
Net Assets | $ | 351,975 | |||||
Net Assets by Class: | |||||||
Class A | $ | 7,292 | |||||
Class B | 5,758 | ||||||
Class C | 3,025 | ||||||
Class I | 335,900 | ||||||
Shares Outstanding: | |||||||
Class A | 356 | ||||||
Class B | 282 | ||||||
Class C | 149 | ||||||
Class I | 16,428 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 20.50 | |||||
Class B | 20.44 | ||||||
Class C | 20.26 | ||||||
Class I | 20.45 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 21.69 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $717) | $ | 4,340 | |||||
Interest | 92 | ||||||
Income from loaned securities–net | 14 | ||||||
4,446 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,369 | ||||||
Transfer agent fees: | |||||||
Class A | 10 | ||||||
Class B | 8 | ||||||
Class C | 3 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 3 | ||||||
Custody fees | 83 | ||||||
Administration fees | 35 | ||||||
Legal fees | 4 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 7 | ||||||
Registration fees | 6 | ||||||
Other | 2 | ||||||
Total expenses | 1,540 | ||||||
Net Investment Income (Loss) | 2,906 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 36,865 | ||||||
Foreign currency transactions | (300 | ) | |||||
36,565 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 6,830 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 11 | ||||||
6,841 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 43,406 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 46,312 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 6
TA IDEX Clarion Global Real Estate Securities
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 2,906 | $ | 3,058 | |||||||
Net realized gain (loss) from investment securities and foreign currency transactions | 36,565 | 32,939 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation | 6,841 | 49,130 | |||||||||
46,312 | 85,127 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (243 | ) | (67 | ) | |||||||
Class B | (211 | ) | (67 | ) | |||||||
Class C | (100 | ) | (38 | ) | |||||||
Class I | (11,605 | ) | (3,664 | ) | |||||||
(12,159 | ) | (3,836 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (628 | ) | (603 | ) | |||||||
Class B | (544 | ) | (537 | ) | |||||||
Class C | (257 | ) | (345 | ) | |||||||
Class I | (29,230 | ) | (14,489 | ) | |||||||
(30,659 | ) | (15,974 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 6 | 2,118 | |||||||||
Class B | 1 | 111 | |||||||||
Class C | 3 | 61 | |||||||||
Class I | 20,707 | 309,146 | |||||||||
20,717 | 311,436 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 833 | 649 | |||||||||
Class B | 678 | 541 | |||||||||
Class C | 322 | 339 | |||||||||
Class I | 40,835 | 18,153 | |||||||||
42,668 | 19,682 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (913 | ) | (134,314 | ) | |||||||
Class B | (1,268 | ) | (2,362 | ) | |||||||
Class C | (318 | ) | (3,767 | ) | |||||||
Class I | (60,510 | ) | (59,453 | ) | |||||||
(63,009 | ) | (199,896 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | – | (b) | ||||||||
Class C | – | – | (b) | ||||||||
– | – | (b) | |||||||||
Automatic conversions: | |||||||||||
Class A | 60 | 18 | |||||||||
Class B | (60 | ) | (18 | ) | |||||||
– | – | ||||||||||
376 | 131,222 | ||||||||||
Net increase (decrease) in net assets | 3,870 | 196,539 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Net Assets: | |||||||||||
Beginning of period | $ | 348,105 | $ | 151,566 | |||||||
End of period | $ | 351,975 | $ | 348,105 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (7,805 | ) | $ | 1,448 | ||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | – | 134 | |||||||||
Class B | – | 7 | |||||||||
Class C | – | 4 | |||||||||
Class I | 1,011 | 19,087 | |||||||||
1,011 | 19,232 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 44 | 42 | |||||||||
Class B | 37 | 35 | |||||||||
Class C | 18 | 22 | |||||||||
Class I | 2,174 | 1,159 | |||||||||
2,273 | 1,258 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (46 | ) | (8,460 | ) | |||||||
Class B | (64 | ) | (141 | ) | |||||||
Class C | (16 | ) | (230 | ) | |||||||
Class I | (3,136 | ) | (3,867 | ) | |||||||
(3,262 | ) | (12,698 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 3 | 1 | |||||||||
Class B | (3 | ) | (1 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 1 | (8,283 | ) | ||||||||
Class B | (30 | ) | (100 | ) | |||||||
Class C | 2 | (204 | ) | ||||||||
Class I | 49 | 16,379 | |||||||||
22 | 7,792 |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 7
TA IDEX Clarion Global Real Estate Securities
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 20.30 | $ | 0.14 | $ | 2.53 | $ | 2.67 | $ | (0.69 | ) | $ | (1.78 | ) | $ | (2.47 | ) | $ | 20.50 | |||||||||||||||||||
10/31/2006 | 16.13 | 0.13 | (i) | 5.59 | (i) | 5.72 | (0.17 | ) | (1.38 | ) | (1.55 | ) | 20.30 | ||||||||||||||||||||||||||
10/31/2005 | 13.99 | 0.27 | 2.46 | 2.73 | (0.41 | ) | (0.18 | ) | (0.59 | ) | 16.13 | ||||||||||||||||||||||||||||
10/31/2004 | 12.25 | 0.28 | 3.05 | 3.33 | (0.53 | ) | (1.06 | ) | (1.59 | ) | 13.99 | ||||||||||||||||||||||||||||
10/31/2003 | 10.00 | 0.43 | 1.95 | 2.38 | (0.13 | ) | – | (0.13 | ) | 12.25 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 20.25 | 0.14 | 2.52 | 2.66 | (0.69 | ) | (1.78 | ) | (2.47 | ) | 20.44 | |||||||||||||||||||||||||||
10/31/2006 | 16.14 | 0.11 | (i) | 5.57 | (i) | 5.68 | (0.19 | ) | (1.38 | ) | (1.57 | ) | 20.25 | ||||||||||||||||||||||||||
10/31/2005 | 13.99 | 0.06 | 2.49 | 2.55 | (0.22 | ) | (0.18 | ) | (0.40 | ) | 16.14 | ||||||||||||||||||||||||||||
10/31/2004 | 12.22 | 0.25 | 3.03 | 3.28 | (0.45 | ) | (1.06 | ) | (1.51 | ) | 13.99 | ||||||||||||||||||||||||||||
10/31/2003 | 10.00 | 0.38 | 1.95 | 2.33 | (0.11 | ) | – | (0.11 | ) | 12.22 | |||||||||||||||||||||||||||||
Class C | 4/30/2007 | 20.09 | 0.15 | 2.50 | 2.65 | (0.70 | ) | (1.78 | ) | (2.48 | ) | 20.26 | |||||||||||||||||||||||||||
10/31/2006 | 16.02 | 0.11 | (i) | 5.54 | (i) | 5.65 | (0.20 | ) | (1.38 | ) | (1.58 | ) | 20.09 | ||||||||||||||||||||||||||
10/31/2005 | 13.92 | 0.11 | 2.44 | 2.55 | (0.27 | ) | (0.18 | ) | (0.45 | ) | 16.02 | ||||||||||||||||||||||||||||
10/31/2004 | 12.22 | 0.17 | 3.04 | 3.21 | (0.45 | ) | (1.06 | ) | (1.51 | ) | 13.92 | ||||||||||||||||||||||||||||
10/31/2003 | 10.00 | 0.38 | 1.95 | 2.33 | (0.11 | ) | – | (0.11 | ) | 12.22 | |||||||||||||||||||||||||||||
Class I | 4/30/2007 | 20.25 | 0.17 | 2.52 | 2.69 | (0.71 | ) | (1.78 | ) | (2.49 | ) | 20.45 | |||||||||||||||||||||||||||
10/31/2006 | 15.85 | 0.21 | (i) | 5.85 | (i) | 6.06 | (0.28 | ) | (1.38 | ) | (1.66 | ) | 20.25 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the | Net Assets, End of | Ratio of Expenses to Average | Net Investment Income (Loss) | Portfolio | |||||||||||||||||||||||||||
Period | Total | Period | Net Assets (a) | to Average | Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 14.24 | % | $ | 7,292 | 1.15 | % | 1.15 | % | 1.40 | % | 32 | % | ||||||||||||||||||
10/31/2006 | 38.39 | 7,199 | 1.30 | 1.30 | 0.77 | (h)(i) | 76 | ||||||||||||||||||||||||
10/31/2005 | 19.87 | 139,290 | 1.25 | 1.25 | 1.77 | (h) | 66 | ||||||||||||||||||||||||
10/31/2004 | 29.30 | 125,423 | 1.30 | 1.30 | 2.16 | 73 | |||||||||||||||||||||||||
10/31/2003 | 23.80 | 64,090 | 1.75 | 1.76 | 5.55 | 95 | |||||||||||||||||||||||||
Class B | 4/30/2007 | 14.24 | 5,758 | 1.14 | 1.14 | 1.43 | 32 | ||||||||||||||||||||||||
10/31/2006 | 38.20 | 6,323 | 1.55 | 1.55 | 0.64 | (i) | 76 | ||||||||||||||||||||||||
10/31/2005 | 18.45 | 6,644 | 2.38 | 2.38 | 0.42 | (h) | 66 | ||||||||||||||||||||||||
10/31/2004 | 28.96 | 4,042 | 1.51 | 1.51 | 1.97 | 73 | |||||||||||||||||||||||||
10/31/2003 | 23.33 | 1,804 | 2.40 | 2.41 | 4.91 | 95 | |||||||||||||||||||||||||
Class C | 4/30/2007 | 14.28 | 3,025 | 1.07 | 1.07 | 1.48 | 32 | ||||||||||||||||||||||||
10/31/2006 | 38.30 | 2,963 | 1.52 | 1.52 | 0.64 | (h)(i) | 76 | ||||||||||||||||||||||||
10/31/2005 | 18.53 | 5,632 | 2.27 | 2.27 | 0.76 | 66 | |||||||||||||||||||||||||
10/31/2004 | 28.32 | 5,325 | 2.22 | 2.22 | 1.32 | 73 | |||||||||||||||||||||||||
10/31/2003 | 23.33 | 1,913 | 2.40 | 2.41 | 4.91 | 95 | |||||||||||||||||||||||||
Class I | 4/30/2007 | 14.39 | 335,900 | 0.88 | 0.88 | 1.70 | 32 | ||||||||||||||||||||||||
10/31/2006 | 41.43 | 331,620 | 0.91 | 0.91 | 1.27 | (i) | 76 |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets shows the net expense ratio, which is total expenses less reimbursement by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Clarion Global Real Estate Securities (the "Fund") commenced operations on March 1, 2003. The inception date for the Fund's offering of share Class I was November 15, 2005.
(h) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, and Class C, respectively.
(i) For the year ended October 31, 2006, Net Investment Income (Loss), Net Realized and Unrealized Gains (Loss), and Net Investment Income (Loss) to Average Net Assets are inclusive of adjustments to dividend income resulting from differences between estimated and actual amounts for REIT investments. The adjustments for all classes include a decrease of $.06, and an increase of $.06 to Net Investment Income (Loss) and Net Realized and Unrealized Gains (Loss), respectively. The ratio of Net Investment Income (Loss) to Average Net Assets was decreased by .37%.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 8
TA IDEX Clarion Global Real Estate Securities
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
TA IDEX Clarion Global Real Estate Securities (the "Fund") is "non-diversified" under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Classes A, B, and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 9
TA IDEX Clarion Global Real Estate Securities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $32 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $6, earned by IBT for its services.
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. Since the Fund invests primarily in real estate securities, the net asset value per share may fluctuate more widely than the net asset value of shares of a fund that invests in a broad range of industries.
Dividend income 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.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received no amount in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
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TA IDEX Clarion Global Real Estate Securities 10
TA IDEX Clarion Global Real Estate Securities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 11,803 | 3.35 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 102,386 | 29.09 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 60,892 | 17.30 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 142,364 | 40.45 | % | ||||||||
TA IDEX Multi-Manager International Fund | 16,285 | 4.63 | % | ||||||||
TA IDEX Multi-Manager Alternative Strategies Fund | 2,170 | 0.62 | % | ||||||||
Total | $ | 335,900 | 95.44 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $250 million of ANA
0.775% of the next $250 million of ANA
0.70% of the next $500 million of ANA
0.65% of ANA over $1 billion
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.40% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $19 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $6.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current
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TA IDEX Clarion Global Real Estate Securities 11
TA IDEX Clarion Global Real Estate Securities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $13. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 109,748 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 153,170 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and distribution reclasses.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
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TA IDEX Clarion Global Real Estate Securities 12
TA IDEX Clarion Global Real Estate Securities
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Clarion Global Real Estate Securities (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and ING Clarion Real Estate Securities, L.P. (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement an d the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They base d 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser generally had achieved competitive investment performance over the past one-, two- and three-year periods. However, the Board expressed a continuing desire to improve the Fund's relative performance, and favorably noted that a recent change in investment objectives and strategies helped improve the Fund's performance. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to IDEX as a whole. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are very competitive with industry averages, although the Board asked that the Sub-Adviser be informed of the Board's desire to see improved trading costs. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with IDEX, the Board concluded that the
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 13
TA IDEX Clarion Global Real Estate Securities (continued)
level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current econo mic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including soft dollar benefits it may receive. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" require ments in particular. 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. In addition, the Trustees determined that the administration, fund accounting, and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Clarion Global Real Estate Securities 14
TA IDEX Evergreen Health Care
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,101.20 | 1.27 | % | $ | 6.62 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,018.50 | 1.27 | 6.36 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,100.80 | 1.26 | 6.56 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.55 | 1.26 | 6.31 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,100.50 | 1.38 | 7.19 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,017.95 | 1.38 | 6.90 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,103.30 | 0.89 | 4.64 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.38 | 0.89 | 4.46 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHIC PRESENTATION OF SCHEDULE OF INVESTMENTS
By Industry
At April 30, 2007 (unaudited)
This chart shows the percentage breakdown by industry of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 1
TA IDEX Evergreen Health Care
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
PREFERRED STOCKS (2.0%) | |||||||||||
Pharmaceuticals (2.0%) | |||||||||||
Fresenius AG | 87,630 | $ | 7,422 | ||||||||
Total Preferred Stocks (cost: $4,734) | 7,422 | ||||||||||
COMMON STOCKS (96.0%) | |||||||||||
Chemicals & Allied Products (5.0%) | |||||||||||
Bayer AG | 230,277 | 15,842 | |||||||||
Syngenta AG ‡ | 12,748 | 2,550 | |||||||||
Drug Stores & Proprietary Stores (2.2%) | |||||||||||
CVS/Caremark Corp. | 222,487 | 8,063 | |||||||||
Food & Kindred Products (0.4%) | |||||||||||
Altus Pharmaceuticals, Inc. ‡ | 100,000 | 1,481 | |||||||||
Health Services (4.3%) | |||||||||||
Brookdale Senior Living, Inc. † | 80,000 | 3,633 | |||||||||
Enzo Biochemical, Inc. ‡† | 188,330 | 3,166 | |||||||||
Human Genome Sciences, Inc. ‡† | 192,653 | 2,075 | |||||||||
Manor Care, Inc. † | 28,258 | 1,834 | |||||||||
Nektar Therapeutics ‡† | 107,430 | 1,329 | |||||||||
Quest Diagnostics, Inc. | 74,695 | 3,652 | |||||||||
Holding & Other Investment Offices (1.1%) | |||||||||||
Daiichi Sanyko Co., Ltd. | 137,500 | 4,101 | |||||||||
Poniard Pharmaceuticals, Inc. Warrants, Expires 12/08/2008 ‡m§ | 1,200 | — | o | ||||||||
Instruments & Related Products (2.8%) | |||||||||||
Bio-Rad Laboratories, Inc.–Class A ‡ | 33,391 | 2,363 | |||||||||
Thermo Electron Corp. ‡ | 150,542 | 7,837 | |||||||||
Insurance (2.3%) | |||||||||||
WellPoint, Inc. ‡ | 108,208 | 8,545 | |||||||||
Medical Instruments & Supplies (11.4%) | |||||||||||
Abiomed, Inc. ‡† | 125,712 | 1,612 | |||||||||
Applera Corp.–Applied Biosystems Group | 97,924 | 3,059 | |||||||||
Baxter International, Inc. | 44,533 | 2,522 | |||||||||
Biomet, Inc. | 95,563 | 4,128 | |||||||||
Cepheid, Inc. ‡† | 118,460 | 1,343 | |||||||||
Fresenius Medical Care AG | 21,116 | 3,182 | |||||||||
Kyphon, Inc. ‡† | 16,585 | 773 | |||||||||
Medtronic, Inc. | 75,968 | 4,021 | |||||||||
NMT Medical, Inc. ‡ | 131,129 | 2,043 | |||||||||
Smith & Nephew PLC | 299,122 | 3,757 | |||||||||
Sorin SpA ‡ | 319,854 | 806 | |||||||||
St. Jude Medical, Inc. ‡† | 148,709 | 6,363 | |||||||||
Thoratec Corp. ‡ | 175,000 | 3,433 | |||||||||
Vital Signs, Inc. | 26,515 | 1,513 | |||||||||
Zimmer Holdings, Inc. ‡ | 39,287 | 3,555 |
Shares | Value | ||||||||||
Pharmaceuticals (61.1%) | |||||||||||
Abbott Laboratories | 157,751 | $ | 8,932 | ||||||||
Adams Respiratory Therapeutics, Inc. ‡† | 100,000 | 3,751 | |||||||||
Advanced Magnetics, Inc. ‡† | 57,359 | 3,774 | |||||||||
Alexion Pharmaceuticals, Inc. ‡† | 16,428 | 688 | |||||||||
Amgen, Inc. ‡ | 131,114 | 8,410 | |||||||||
Arena Pharmaceuticals, Inc. ‡† | 90,939 | 1,185 | |||||||||
Arqule, Inc. ‡ | 172,015 | 1,510 | |||||||||
Auxilium Pharmaceuticals, Inc. ‡† | 252,000 | 3,745 | |||||||||
BioCryst Pharmaceuticals, Inc. ‡† | 93,872 | 798 | |||||||||
Biogen Idec, Inc. ‡ | 143,147 | 6,758 | |||||||||
BioMarin Pharmaceuticals, Inc. ‡† | 163,156 | 2,637 | |||||||||
Bristol-Myers Squibb Co. | 232,398 | 6,707 | |||||||||
Celgene Corp. ‡ | 83,067 | 5,080 | |||||||||
Chugai Pharmaceutical Co., Ltd. | 151,500 | 3,862 | |||||||||
Cubist Pharmaceuticals, Inc. ‡† | 104,876 | 2,250 | |||||||||
Cytokinetics, Inc. ‡ | 77,668 | 513 | |||||||||
Elan Corp. PLC, ADR ‡† | 60,940 | 846 | |||||||||
Genentech, Inc. ‡ | 81,523 | 6,521 | |||||||||
Genmab A/S ‡ | 108,700 | 7,665 | |||||||||
Genzyme Corp. ‡ | 88,345 | 5,770 | |||||||||
Geron Corp. ‡† | 106,611 | 758 | |||||||||
GlaxoSmithKline PLC, ADR | 124,282 | 7,181 | |||||||||
Hospira, Inc. ‡ | 75,136 | 3,047 | |||||||||
ImClone Systems, Inc. ‡ | 47,733 | 2,000 | |||||||||
Indevus Pharmaceuticals, Inc. ‡ | 213,634 | 1,540 | |||||||||
Indevus Pharmaceuticals, Inc. Rights, Expires 04/18/2012 ‡m§ | 188,440 | — | o | ||||||||
Inspire Pharmaceuticals, Inc. ‡ | 122,757 | 939 | |||||||||
Inverness Medical Innovations, Inc. ‡† | 85,000 | 3,404 | |||||||||
Inyx, Inc. ‡ | 271,034 | 691 | |||||||||
Ipsen | 67,505 | 3,588 | |||||||||
MannKind Corp., Warrants, Expires 8/5/2020 ‡m§ | 30,624 | 14 | |||||||||
McKesson Corp. | 89,000 | 5,236 | |||||||||
Medarex, Inc. ‡† | 162,977 | 2,231 | |||||||||
MedImmune, Inc. ‡† | 65,806 | 3,730 | |||||||||
Merck & Co., Inc. | 143,395 | 7,376 | |||||||||
Merck KGaA | 47,986 | 6,407 | |||||||||
MGI PHARMA, Inc. ‡† | 57,505 | 1,266 | |||||||||
Mylan Laboratories † | 51,159 | 1,122 | |||||||||
Novartis AG, ADR | 137,377 | 7,980 | |||||||||
Novo Nordisk A/S-Class B | 81,600 | 8,026 | |||||||||
OSI Pharmaceuticals, Inc. ‡† | 148,164 | 5,141 | |||||||||
Panacos Pharmaceuticals, Inc. ‡† | 578,583 | 2,754 | |||||||||
Par Pharmaceutical Cos., Inc. ‡ | 105,513 | 2,841 | |||||||||
PDL BioPharma, Inc. ‡ | 79,114 | 1,998 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 2
TA IDEX Evergreen Health Care
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Pharmaceuticals (continued) | |||||||||||
Pharmion Corp. ‡ | 130,000 | $ | 3,938 | ||||||||
Roche Holding AG-Genusschein | 57,735 | 10,918 | |||||||||
Sanofi-Aventis, ADR † | 58,452 | 2,681 | |||||||||
Santarus, Inc. ‡† | 245,000 | 1,872 | |||||||||
Schering-Plough Corp. | 330,205 | 10,477 | |||||||||
Sepracor, Inc. ‡ | 65,354 | 3,508 | |||||||||
Shire PLC | 250,000 | 5,850 | |||||||||
Spectrum Pharmaceuticals, Inc. ‡† | 287,034 | 1,926 | |||||||||
Tanox, Inc. ‡† | 200,509 | 3,741 | |||||||||
Tercica, Inc. ‡† | 58,418 | 350 | |||||||||
Theratechnologies, Inc. ‡ | 400,000 | 3,406 | |||||||||
Theravance, Inc. ‡ | 44,540 | 1,476 | |||||||||
Vertex Pharmaceuticals, Inc. ‡† | 26,752 | 822 | |||||||||
Viropharma, Inc. ‡† | 43,434 | 655 | |||||||||
Wyeth | 165,183 | 9,168 | |||||||||
Xenoport, Inc. ‡† | 32,000 | 1,372 | |||||||||
Zymogenetics, Inc. ‡† | 141,557 | 2,118 | |||||||||
Research & Testing Services (5.4%) | |||||||||||
Celera Group ‡ | 119,985 | 1,680 | |||||||||
Gen-Probe, Inc. ‡ | 105,607 | 5,398 | |||||||||
Incyte Corp. ‡† | 285,510 | 2,201 | |||||||||
Insmed, Inc. ‡† | 338,559 | 352 | |||||||||
Isis Pharmaceuticals, Inc. ‡† | 268,477 | 2,747 | |||||||||
Maxygen, Inc. ‡ | 64,362 | 691 | |||||||||
Orchid Cellmark, Inc. ‡ | 323,251 | 2,156 | |||||||||
Regeneron Pharmaceuticals, Inc. ‡ | 169,595 | 4,613 | |||||||||
Total Common Stocks (cost: $291,218) | 353,369 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (19.2%) | |||||||||||
Debt (19.2%) | |||||||||||
Bank Notes (1.2%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 2,201 | $ | 2,201 | |||||||
5.27%, due 06/18/2007 * | 2,201 | 2,201 | |||||||||
Commercial Paper (4.2%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 881 | 881 | |||||||||
CAFCO LLC-144A 5.29%, due 05/31/2007 | 853 | 853 | |||||||||
Charta LLC-144A 5.30%, due 05/09/2007 | 586 | 586 | |||||||||
5.29%, due 06/13/2007 | 440 | 440 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 440 | 440 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
CRC Funding LLC-144A 5.28%, due 05/16/2007 | $ | 440 | $ | 440 | |||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 440 | 440 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 | 440 | 440 | |||||||||
5.28%, due 05/24/2007 | 440 | 440 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 881 | 881 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 862 | 862 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 881 | 881 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 881 | 881 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 | 1,742 | 1,742 | |||||||||
5.30%, due 05/29/2007 | 440 | 440 | |||||||||
5.29%, due 05/31/2007 | 440 | 440 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 | 440 | 440 | |||||||||
5.29%, due 05/17/2007 | 440 | 440 | |||||||||
5.28%, due 06/01/2007 | 440 | 440 | |||||||||
5.29%, due 06/19/2007 | 580 | 580 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 660 | 660 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 440 | 440 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 881 | 881 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 440 | 440 | |||||||||
Euro Dollar Overnight (2.4%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 440 | 440 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 881 | 881 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 881 | 881 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 881 | 881 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 881 | 881 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 881 | 881 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 3
TA IDEX Evergreen Health Care
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | $ | 881 | $ | 881 | |||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 440 | 440 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 881 | 881 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 1,670 | 1,670 | |||||||||
Euro Dollar Terms (7.0%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 881 | 881 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 440 | 440 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 616 | 616 | |||||||||
Barclays 5.29%, due 05/07/2007 | 880 | 880 | |||||||||
5.30%, due 05/16/2007 | 880 | 880 | |||||||||
5.29%, due 05/21/2007 | 440 | 440 | |||||||||
5.30%, due 06/04/2007 | 440 | 440 | |||||||||
5.29%, due 06/08/2007 | 880 | 880 | |||||||||
Calyon 5.30%, due 05/17/2007 | 440 | 440 | |||||||||
5.31%, due 05/24/2007 | 880 | 880 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 | 1,321 | 1,321 | |||||||||
5.28%, due 05/29/2007 | 440 | 440 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 880 | 880 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 880 | 880 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 | 1,321 | 1,321 | |||||||||
5.28%, due 05/25/2007 | 1,321 | 1,321 | |||||||||
5.30%, due 06/25/2007 | 880 | 880 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | $ | 1,321 | $ | 1,321 | |||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 | 880 | 880 | |||||||||
5.30%, due 05/09/2007 | 440 | 440 | |||||||||
5.31%, due 05/25/2007 | 880 | 880 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 440 | 440 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 880 | 880 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 880 | 880 | |||||||||
UBS AG 5.28%, due 06/01/2007 | 880 | 880 | |||||||||
5.29%, due 06/12/2007 | 1,761 | 1,761 | |||||||||
5.29%, due 06/15/2007 | 1,321 | 1,321 | |||||||||
5.29%, due 06/18/2007 | 2,201 | 2,201 | |||||||||
Repurchase Agreements (4.4%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $2,438 on 05/01/2007 | 2,438 | 2,438 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $9,685 on 05/01/2007 | 9,685 | 9,685 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $4,242 on 05/01/2007 | 4,242 | 4,242 | |||||||||
Total Security Lending Collateral (cost: $70,596) | 70,596 | ||||||||||
Total Investment Securities (cost: $366,548) # | $ | 431,387 |
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $67,007.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
§ Security is deemed to be illiquid.
†† Cash collateral for the Repurchase Agreements, valued at $16,786, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively.
o Value is less than $1.
m Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees.
# Aggregate cost for federal income tax purposes is $369,845. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $65,095 and $3,553, respectively. Net unrealized appreciation for tax purposes is $61,542.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $13,206 or 3.6% of the net assets of the Fund.
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 4
TA IDEX Evergreen Health Care
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $366,548) (including securities loaned of $67,007) | $ | 431,387 | |||||
Cash | 8,267 | ||||||
Receivables: | |||||||
Interest | 40 | ||||||
Income from loaned securities | 1 | ||||||
Dividends | 484 | ||||||
Dividend reclaims receivable | 121 | ||||||
Other | 10 | ||||||
440,310 | |||||||
Liabilities: | |||||||
Investment securities purchased | 1,406 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 57 | ||||||
Management and advisory fees | 258 | ||||||
Transfer agent fees | 4 | ||||||
Administration fees | 6 | ||||||
Payable for collateral for securities on loan | 70,596 | ||||||
Other | 56 | ||||||
72,383 | |||||||
Net Assets | $ | 367,927 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 289,045 | |||||
Undistributed (accumulated) net investment income (loss) | 932 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | 13,107 | ||||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | 64,839 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 4 | ||||||
Net Assets | $ | 367,927 | |||||
Net Assets by Class: | |||||||
Class A | $ | 3,323 | |||||
Class B | 3,588 | ||||||
Class C | 1,630 | ||||||
Class I | 359,386 | ||||||
Shares Outstanding: | |||||||
Class A | 246 | ||||||
Class B | 276 | ||||||
Class C | 126 | ||||||
Class I | 26,255 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 13.49 | |||||
Class B | 12.99 | ||||||
Class C | 12.92 | ||||||
Class I | 13.69 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 14.28 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $124) | $ | 2,765 | |||||
Interest | 158 | ||||||
Income from loaned securities–net | 96 | ||||||
3,019 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,811 | ||||||
Transfer agent fees: | |||||||
Class A | 6 | ||||||
Class B | 7 | ||||||
Class C | 2 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 2 | ||||||
Custody fees | 54 | ||||||
Administration fees | 43 | ||||||
Legal fees | 6 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 10 | ||||||
Registration fees | 4 | ||||||
Other | 6 | ||||||
Total expenses | 1,961 | ||||||
Recaptured expenses: | |||||||
Class C | 2 | ||||||
Net expenses | 1,963 | ||||||
Net Investment Income (Loss) | 1,056 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 16,373 | ||||||
Foreign currency transactions | 31 | ||||||
16,404 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 26,276 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 2 | ||||||
26,278 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 42,682 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 43,738 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 5
TA IDEX Evergreen Health Care
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Increase (Decrease) In Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 1,056 | $ | (248 | ) | ||||||
Net realized gain (loss) from investment securities and foreign currency transactions | 16,404 | 68,935 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation | 26,278 | 13,323 | |||||||||
43,738 | 82,010 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class I | (125 | ) | – | ||||||||
(125 | ) | – | |||||||||
From net realized gains: | |||||||||||
Class A | (451 | ) | (229 | ) | |||||||
Class B | (560 | ) | (300 | ) | |||||||
Class C | (237 | ) | (127 | ) | |||||||
Class I | (67,027 | ) | (22,213 | ) | |||||||
(68,275 | ) | (22,869 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 6 | 1,353 | |||||||||
Class B | 2 | 157 | |||||||||
Class C | 21 | 62 | |||||||||
Class I | – | 271,042 | |||||||||
29 | 272,614 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 438 | 219 | |||||||||
Class B | 536 | 290 | |||||||||
Class C | 215 | 107 | |||||||||
Class I | 67,152 | 22,213 | |||||||||
68,341 | 22,829 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (611 | ) | (198,693 | ) | |||||||
Class B | (1,243 | ) | (1,768 | ) | |||||||
Class C | (276 | ) | (871 | ) | |||||||
Class I | (197,938 | ) | (4,146 | ) | |||||||
(200,068 | ) | (205,478 | ) | ||||||||
Redemption fees: | |||||||||||
Class B | – | – | (a) | ||||||||
– | – | (a) | |||||||||
Automatic conversions: | |||||||||||
Class A | 29 | 14 | |||||||||
Class B | (29 | ) | (14 | ) | |||||||
– | – | ||||||||||
(131,698 | ) | 89,965 | |||||||||
Net increase (decrease) in net assets | (156,360 | ) | 149,106 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 524,287 | 375,181 | |||||||||
End of period | $ | 367,927 | $ | 524,287 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 932 | $ | 1 |
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | – | 106 | |||||||||
Class B | – | 12 | |||||||||
Class C | 2 | 5 | |||||||||
Class I | – | 20,891 | |||||||||
2 | 21,014 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 35 | 18 | |||||||||
Class B | 44 | 24 | |||||||||
Class C | 18 | 9 | |||||||||
Class I | 5,283 | 1,760 | |||||||||
5,380 | 1,811 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (47 | ) | (15,492 | ) | |||||||
Class B | (99 | ) | (138 | ) | |||||||
Class C | (23 | ) | (69 | ) | |||||||
Class I | (15,205 | ) | (310 | ) | |||||||
(15,374 | ) | (16,009 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 2 | 1 | |||||||||
Class B | (2 | ) | (1 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (10 | ) | (15,367 | ) | |||||||
Class B | (57 | ) | (103 | ) | |||||||
Class C | (3 | ) | (55 | ) | |||||||
Class I | (9,922 | ) | 22,341 | ||||||||
(9,992 | ) | 6,816 |
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 6
TA IDEX Evergreen Health Care
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 14.06 | $ | 0.01 | $ | 1.27 | $ | 1.28 | $ | – | $ | (1.85 | ) | $ | (1.85 | ) | $ | 13.49 | ||||||||||||||||||||
10/31/2006 | 12.44 | (0.07 | ) | 2.41 | 2.34 | – | (0.72 | ) | (0.72 | ) | 14.06 | ||||||||||||||||||||||||||||
10/31/2005 | 10.84 | (0.12 | ) | 1.82 | 1.70 | – | (0.10 | ) | (0.10 | ) | 12.44 | ||||||||||||||||||||||||||||
10/31/2004 | 10.14 | (0.13 | ) | 1.18 | 1.05 | – | (0.35 | ) | (0.35 | ) | 10.84 | ||||||||||||||||||||||||||||
10/31/2003 | 8.28 | (0.16 | ) | 2.02 | 1.86 | – | – | – | 10.14 | ||||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.08 | ) | (1.64 | ) | (1.72 | ) | – | – | – | 8.28 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 13.61 | 0.01 | 1.22 | 1.23 | – | (1.85 | ) | (1.85 | ) | 12.99 | ||||||||||||||||||||||||||||
10/31/2006 | 12.10 | (0.10 | ) | 2.33 | 2.23 | – | (0.72 | ) | (0.72 | ) | 13.61 | ||||||||||||||||||||||||||||
10/31/2005 | 10.66 | (0.25 | ) | 1.79 | 1.54 | – | (0.10 | ) | (0.10 | ) | 12.10 | ||||||||||||||||||||||||||||
10/31/2004 | 10.03 | (0.17 | ) | 1.15 | 0.98 | – | (0.35 | ) | (0.35 | ) | 10.66 | ||||||||||||||||||||||||||||
10/31/2003 | 8.24 | (0.21 | ) | 2.00 | 1.79 | – | – | – | 10.03 | ||||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.11 | ) | (1.65 | ) | (1.76 | ) | – | – | – | 8.24 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 13.55 | 0.01 | 1.21 | 1.22 | – | (1.85 | ) | (1.85 | ) | 12.92 | ||||||||||||||||||||||||||||
10/31/2006 | 12.07 | (0.13 | ) | 2.33 | 2.20 | – | (0.72 | ) | (0.72 | ) | 13.55 | ||||||||||||||||||||||||||||
10/31/2005 | 10.63 | (0.25 | ) | 1.79 | 1.54 | – | (0.10 | ) | (0.10 | ) | 12.07 | ||||||||||||||||||||||||||||
10/31/2004 | 10.03 | (0.24 | ) | 1.19 | 0.95 | – | (0.35 | ) | (0.35 | ) | 10.63 | ||||||||||||||||||||||||||||
10/31/2003 | 8.10 | (0.22 | ) | 2.15 | 1.93 | – | – | – | 10.03 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 14.22 | 0.03 | 1.29 | 1.32 | – | (i) | (1.85 | ) | (1.85 | ) | 13.69 | |||||||||||||||||||||||||||
10/31/2006 | 12.52 | – | (i) | 2.42 | 2.42 | – | (0.72 | ) | (0.72 | ) | 14.22 | ||||||||||||||||||||||||||||
10/31/2005 | 11.26 | (0.07 | ) | 1.43 | 1.36 | – | (0.10 | ) | (0.10 | ) | 12.52 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 10.12 | % | $ | 3,323 | 1.27 | % | 1.27 | % | 0.22 | % | 28 | % | ||||||||||||||||||
10/31/2006 | 19.48 | 3,592 | 1.47 | (h) | 1.47 | (h) | (0.56 | ) | 92 | ||||||||||||||||||||||
10/31/2005 | 15.69 | 194,414 | 1.44 | 1.44 | (1.02 | ) | 59 | ||||||||||||||||||||||||
10/31/2004 | 10.19 | 154,957 | 1.53 | 1.53 | (1.15 | ) | 35 | ||||||||||||||||||||||||
10/31/2003 | 22.46 | 59,115 | 1.95 | 2.19 | (1.61 | ) | 30 | ||||||||||||||||||||||||
10/31/2002 | (17.20 | ) | 3,804 | 1.95 | 8.76 | (1.51 | ) | 43 | |||||||||||||||||||||||
Class B | 4/30/2007 | 10.08 | 3,588 | 1.26 | 1.26 | 0.21 | 28 | ||||||||||||||||||||||||
10/31/2006 | 19.11 | 4,528 | 1.71 | (h) | 1.71 | (h) | (0.79 | ) (j) | 92 | ||||||||||||||||||||||
10/31/2005 | 14.45 | 5,274 | 2.60 | 2.66 | (2.18 | ) (j) | 59 | ||||||||||||||||||||||||
10/31/2004 | 9.59 | 4,590 | 2.09 | 2.09 | (1.58 | ) | 35 | ||||||||||||||||||||||||
10/31/2003 | 21.72 | 2,952 | 2.60 | 2.84 | (2.26 | ) | 30 | ||||||||||||||||||||||||
10/31/2002 | (17.60 | ) | 758 | 2.60 | 9.41 | (2.16 | ) | 43 | |||||||||||||||||||||||
Class C | 4/30/2007 | 10.05 | 1,630 | 1.38 | (k) | 1.38 | (k) | 0.11 | 28 | ||||||||||||||||||||||
10/31/2006 | 18.90 | 1,748 | 1.89 | (h) | 1.89 | (h) | (0.99 | ) | 92 | ||||||||||||||||||||||
10/31/2005 | 14.44 | 2,223 | 2.60 | 2.90 | (2.18 | ) | 59 | ||||||||||||||||||||||||
10/31/2004 | 9.28 | 2,081 | 2.60 | 3.41 | (1.61 | ) | 35 | ||||||||||||||||||||||||
10/31/2003 | 23.83 | 201 | 2.60 | 2.84 | (2.26 | ) | 30 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 10.33 | 359,386 | 0.89 | 0.89 | 0.49 | 28 | ||||||||||||||||||||||||
10/31/2006 | 20.02 | 514,419 | 0.96 | (h) | 0.96 | (h) | (0.03 | ) | 92 | ||||||||||||||||||||||
10/31/2005 | 12.09 | 173,270 | 1.06 | 1.06 | (0.65 | ) | 59 |
The notes to the financial statements are an integral part of this report.
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Semi-Annual Report 2007
TA IDEX Evergreen Health Care 7
TA IDEX Evergreen Health Care
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser and includes the recapture of previously waived expenses, if any ( see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers, reimbursements and recapture of previously waived expenses by the investment adviser.
(g) TA IDEX Evergreen Health Care ("the Fund") commenced operations on March 1, 2002.
The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 8, 2004.
(h) Ratios of Total Expenses to Average Net Assets and Net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment adviser, if any. The impact of recaptured expenses was 0.01%, 0.07%, 0.30% and 0.01% for Class A, Class B, Class C and Class I respectively (see note 2).
(i) Rounds to less than ($0.01).
(j) Ratios of Net Investment Income (Loss) to Average Net Assets are inclusive of redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class B.
(k) Ratios of Total Expenses to Average Net Assets and Net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment adviser, if any. The impact of recaptured expenses was 0.22% for Class C. (see note 2).
The notes to the financial statements are an integral part of this report.
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TA IDEX Evergreen Health Care 8
TA IDEX Evergreen Health Care
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
Effective March 1, 2006, TA IDEX T. Rowe Price Health Sciences changed its name to TA IDEX Evergreen Health Care (the "Fund") and changed its sub-adviser from T. Rowe Price Associates, Inc. ("T. Rowe Price") to Evergreen Investment Management Company, LLC ("Evergreen").
The Fund is "non-diversified" under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Classes A, B, and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Committee , using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The Fund's previous sub-adviser, T. Rowe Price, to the extent consistent with the best execution and usual commission rate policies and practices, placed security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual Funds has established a Commission Recapture Program. A Commission Recapture Program is any arrangement under which a
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 9
TA IDEX Evergreen Health Care
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
broker/dealer applies a portion of the commissions received by such broker/dealer on the security transactions to the Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party. Evergeen does not participate in the commission recapture program.
Recaptured commissions during the six months ended April 30, 2007 of $4 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $41, earned by IBT for its services.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received no redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 11,564 | 3.14 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 54,564 | 14.83 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 26,428 | 7.18 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 39,284 | 10.68 | % | ||||||||
Asset Allocation–Conservative Portfolio | 25,826 | 7.02 | % | ||||||||
Asset Allocation–Growth Portfolio | 35,561 | 9.67 | % | ||||||||
Asset Allocation– Moderate Growth Portfolio | 113,864 | 30.95 | % | ||||||||
Asset Allocation– Moderate Portfolio | 52,295 | 14.21 | % | ||||||||
Total | $ | 359,386 | 97.68 | % |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 10
TA IDEX Evergreen Health Care
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.87% of the first $100 million of ANA
0.85% of the next $150 million of ANA
0.80% of ANA over $250 million
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.47% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
For the period ended February 28, 2007, the Fund recaptured $2 of previously reimbursed expenses from Class C.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
The former sub-adviser, T. Rowe Price, had agreed to a pricing discount based on the aggregate assets that they managed in the Transamerica IDEX Mutual Funds. The amount of the discount received by the Fund for the period from November 1, 2005 through February 28, 2006 was $11.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $14 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $10.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $25. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 11
TA IDEX Evergreen Health Care
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 120,004 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 320,768 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, foreign currency transactions, net operating losses and straddles.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 12
TA IDEX Evergreen Health Care
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Evergreen Health Care (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Evergreen Investment Management Company, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Inv estment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their d ecisions 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board also considered the Sub-Adviser's ongoing transition to new portfolio managers for the Fund. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifi cations and experience of the Sub-Adviser's portfolio management team, and the Fund's investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser had achieved superior performance, favorably noting the Fund's first quintile performance, relative to comparable funds, over the one-, two- and three-year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are highly competitive with industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 13
TA IDEX Evergreen Health Care (continued)
well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current econo mic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requiremen ts in particular. 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Evergreen Health Care 14
TA IDEX Jennison Growth
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,057.50 | 1.33 | % | $ | 6.78 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,018.20 | 1.33 | 6.66 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,058.60 | 1.29 | 6.58 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.40 | 1.29 | 6.46 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,057.50 | 1.24 | 6.33 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.65 | 1.24 | 6.21 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,059.90 | 0.88 | 4.49 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.43 | 0.88 | 4.41 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHIC PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 1
TA IDEX Jennison Growth
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (96.0%) | |||||||||||
Aerospace (3.8%) | |||||||||||
Boeing Co. (The) | 32,500 | $ | 3,022 | ||||||||
United Technologies Corp. | 41,200 | 2,766 | |||||||||
Amusement & Recreation Services (3.0%) | |||||||||||
Disney (Walt) Co. (The) | 130,300 | 4,558 | |||||||||
Apparel & Accessory Stores (0.7%) | |||||||||||
Kohl's Corp. ‡ | 15,500 | 1,148 | |||||||||
Beverages (2.1%) | |||||||||||
PepsiCo, Inc. | 49,200 | 3,252 | |||||||||
Business Services (1.3%) | |||||||||||
eBay, Inc. ‡ | 57,400 | 1,948 | |||||||||
Chemicals & Allied Products (4.6%) | |||||||||||
Colgate-Palmolive Co. | 30,100 | 2,039 | |||||||||
Monsanto Co. | 35,200 | 2,076 | |||||||||
Procter & Gamble Co. | 44,720 | 2,876 | |||||||||
Communications Equipment (4.9%) | |||||||||||
QUALCOMM, Inc. | 107,400 | 4,704 | |||||||||
Research In Motion, Ltd. ‡† | 11,400 | 1,500 | |||||||||
Sony Corp., ADR | 24,200 | 1,289 | |||||||||
Computer & Data Processing Services (12.8%) | |||||||||||
Adobe Systems, Inc. ‡ | 109,100 | 4,534 | |||||||||
Electronic Arts, Inc. ‡ | 42,000 | 2,117 | |||||||||
Google, Inc.–Class A ‡ | 14,400 | 6,788 | |||||||||
Infosys Technologies, Ltd., ADR | 20,000 | 1,047 | |||||||||
Juniper Networks, Inc. ‡ | 15,100 | 338 | |||||||||
Microsoft Corp. | 132,300 | 3,961 | |||||||||
Yahoo!, Inc. ‡† | 27,500 | 771 | |||||||||
Computer & Office Equipment (7.1%) | |||||||||||
Apple, Inc. ‡ | 41,100 | 4,102 | |||||||||
Cisco Systems, Inc. ‡ | 146,600 | 3,920 | |||||||||
Hewlett-Packard Co. | 67,800 | 2,857 | |||||||||
Department Stores (2.3%) | |||||||||||
Federated Department Stores, Inc. | 50,200 | 2,205 | |||||||||
JC Penney Co., Inc. | 17,500 | 1,384 | |||||||||
Electric Services (0.9%) | |||||||||||
Suntech Power Holdings, ADR ‡† | 39,200 | 1,422 | |||||||||
Electronic & Other Electric Equipment (1.8%) | |||||||||||
General Electric Co. | 74,300 | 2,739 | |||||||||
Electronic Components & Accessories (4.2%) | |||||||||||
Broadcom Corp.–Class A ‡ | 63,550 | 2,069 | |||||||||
Intel Corp. | 98,300 | 2,113 | |||||||||
Marvell Technology Group, Ltd. ‡ | 118,800 | 1,916 | |||||||||
NVIDIA Corp. ‡ | 12,100 | 398 |
Shares | Value | ||||||||||
Entertainment (1.1%) | |||||||||||
International Game Technology | 43,600 | $ | 1,663 | ||||||||
Food Stores (0.4%) | |||||||||||
Whole Foods Market, Inc. | 13,300 | 622 | |||||||||
Hotels & Other Lodging Places (1.3%) | |||||||||||
Marriott International, Inc.–Class A | 45,300 | 2,048 | |||||||||
Instruments & Related Products (1.7%) | |||||||||||
Alcon, Inc. † | 19,100 | 2,577 | |||||||||
Insurance (2.8%) | |||||||||||
American International Group, Inc. | 55,900 | 3,908 | |||||||||
WellPoint, Inc. ‡ | 5,400 | 426 | |||||||||
Leather & Leather Products (2.3%) | |||||||||||
Coach, Inc. ‡ | 71,700 | 3,501 | |||||||||
Lumber & Other Building Materials (1.3%) | |||||||||||
Lowe's Cos., Inc. | 64,000 | 1,956 | |||||||||
Medical Instruments & Supplies (2.9%) | |||||||||||
Baxter International, Inc. | 38,800 | 2,197 | |||||||||
St. Jude Medical, Inc. ‡† | 50,900 | 2,178 | |||||||||
Motion Pictures (2.0%) | |||||||||||
News Corp., Inc.–Class A | 136,200 | 3,049 | |||||||||
Oil & Gas Extraction (1.9%) | |||||||||||
Occidental Petroleum Corp. | 26,600 | 1,349 | |||||||||
Schlumberger, Ltd. | 20,300 | 1,499 | |||||||||
Petroleum Refining (0.4%) | |||||||||||
Suncor Energy, Inc. | 7,400 | 596 | |||||||||
Pharmaceuticals (14.0%) | |||||||||||
Abbott Laboratories | 46,800 | 2,650 | |||||||||
Genentech, Inc. ‡ | 42,300 | 3,384 | |||||||||
Gilead Sciences, Inc. ‡ | 61,800 | 5,050 | |||||||||
Merck & Co., Inc. | 28,500 | 1,466 | |||||||||
Novartis AG, ADR | 34,200 | 1,987 | |||||||||
Roche Holding AG, ADR | 49,438 | 4,675 | |||||||||
Schering-Plough Corp. | 12,700 | 403 | |||||||||
Wyeth | 34,300 | 1,904 | |||||||||
Printing & Publishing (0.3%) | |||||||||||
McGraw-Hill Cos., Inc. (The) | 7,800 | 511 | |||||||||
Radio, Television & Computer Stores (0.9%) | |||||||||||
Best Buy Co., Inc. † | 30,200 | 1,409 | |||||||||
Restaurants (1.0%) | |||||||||||
Starbucks Corp. ‡ | 48,200 | 1,495 | |||||||||
Retail Trade (1.3%) | |||||||||||
Target Corp. | 33,700 | 2,001 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 2
TA IDEX Jennison Growth
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Rubber & Misc. Plastic Products (1.4%) | |||||||||||
NIKE, Inc.–Class B | 39,000 | $ | 2,100 | ||||||||
Security & Commodity Brokers (8.2%) | |||||||||||
American Express Co. | 31,200 | 1,893 | |||||||||
Charles Schwab Corp. (The) | 93,100 | 1,780 | |||||||||
Goldman Sachs Group, Inc. (The) | 13,500 | 2,951 | |||||||||
IntercontinentalExchange, Inc. ‡ | 3,100 | 394 | |||||||||
NYSE Euronext ‡† | 32,100 | 2,707 | |||||||||
UBS AG–Registered | 44,000 | 2,856 | |||||||||
Telecommunications (1.3%) | |||||||||||
NII Holdings, Inc. ‡† | 26,000 | 1,994 | |||||||||
Total Common Stocks (cost: $126,517) | 147,038 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (8.0%) | |||||||||||
Debt (8.0%) | |||||||||||
Bank Notes (0.5%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 383 | $ | 383 | |||||||
5.27%, due 06/18/2007 * | 383 | 383 | |||||||||
Commercial Paper (1.7%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 153 | 153 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 148 | 148 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 102 76 | 102 76 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 76 | 76 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 76 | 76 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 76 | 76 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 76 76 5.28%, due 05/24/2007 | 76 | 76 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 153 | 153 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 150 | 150 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 153 | 153 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 153 | 153 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Paradigm Funding LLC–144A | |||||||||||
5.28%, due 05/22/2007 | $ | 303 | $ | 303 | |||||||
5.30%, due 05/29/2007 | 76 | 76 | |||||||||
5.29%, due 05/31/2007 | 76 | 76 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 76 76 76 101 | 76 76 76 101 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 115 | 115 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 76 | 76 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 153 | 153 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 76 | 76 | |||||||||
Euro Dollar Overnight (1.0%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 76 | 76 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 153 | 153 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 153 | 153 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 153 | 153 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 153 | 153 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 153 | 153 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 153 | 153 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 77 | 77 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 153 | 153 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 290 | 290 | |||||||||
Euro Dollar Terms (2.9%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 153 | 153 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 77 | 77 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 107 | 107 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 3
TA IDEX Jennison Growth
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Barclays | |||||||||||
5.29%, due 05/07/2007 | $ | 153 | $ | 153 | |||||||
5.30%, due 05/16/2007 | 153 | 153 | |||||||||
5.29%, due 05/21/2007 | 77 | 77 | |||||||||
5.30%, due 06/04/2007 | 77 | 77 | |||||||||
5.29%, due 06/08/2007 | 153 | 153 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 77 153 | 77 153 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 230 230 5.28%, due 05/29/2007 | 77 | 77 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 153 | 153 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 153 | 153 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 230 230 153 | 230 230 153 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 230 | 230 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 153 153 5.30%, due 05/09/2007 77 77 5.31%, due 05/25/2007 | 153 | 153 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | $ | 77 | $ | 77 | |||||||
Swedbank AB 5.30%, due 05/11/2007 | 153 | 153 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 153 | 153 | |||||||||
UBS AG 5.28%, due 06/01/2007 153 153 5.29%, due 06/12/2007 306 306 5.29%, due 06/15/2007 230 230 5.29%, due 06/18/2007 | 384 | 384 | |||||||||
Repurchase Agreements (1.9%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $424 on 05/01/2007 | 424 | 424 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $1,684 on 05/01/2007 | 1,683 | 1,683 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $737 on 05/01/2007 | 737 | 737 | |||||||||
Total Security Lending Collateral (cost: $12,271) | 12,271 | ||||||||||
Total Investment Securities (cost: $138,788) # | $ | 159,309 |
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $11,954.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $2,918, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $139,210. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $22,239 and $2,140, respectively. Net unrealized appreciation for tax purposes is $20,099.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $2,290 or 1.5% of the net assets of the Fund.
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 4
TA IDEX Jennison Growth
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $138,788) (including securities loaned of $11,954) | $ | 159,309 | |||||
Cash | 7,498 | ||||||
Receivables: | |||||||
Investment securities sold | 544 | ||||||
Shares of beneficial interest sold | 248 | ||||||
Interest | 19 | ||||||
Income from loaned securities | 9 | ||||||
Dividends | 63 | ||||||
Dividend reclaims receivable | 16 | ||||||
Other | 8 | ||||||
167,714 | |||||||
Liabilities: | |||||||
Investment securities purchased | 2,048 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 26 | ||||||
Management and advisory fees | 102 | ||||||
Transfer agent fees | 17 | ||||||
Administration fees | 3 | ||||||
Payable for collateral for securities on loan | 12,271 | ||||||
Other | 36 | ||||||
14,503 | |||||||
Net Assets | $ | 153,211 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 132,159 | |||||
Undistributed (accumulated) net investment income (loss) | 145 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities | 386 | ||||||
Net unrealized appreciation (depreciation) on investment securities | 20,521 | ||||||
Net Assets | $ | 153,211 | |||||
Net Assets by Class: | |||||||
Class A | $ | 9,212 | |||||
Class B | 14,518 | ||||||
Class C | 5,083 | ||||||
Class I | 124,398 | ||||||
Shares Outstanding: | |||||||
Class A | 799 | ||||||
Class B | 1,347 | ||||||
Class C | 471 | ||||||
Class I | 10,713 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 11.53 | |||||
Class B | 10.78 | ||||||
Class C | 10.80 | ||||||
Class I | 11.61 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 12.20 |
(a) 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, and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $30) | $ | 645 | |||||
Interest | 64 | ||||||
Income from loaned securities–net | 121 | ||||||
830 | |||||||
Expenses: | |||||||
Management and advisory fees | 563 | ||||||
Transfer agent fees: | |||||||
Class A | 23 | ||||||
Class B | 33 | ||||||
Class C | 10 | ||||||
Printing and shareholder reports | 10 | ||||||
Custody fees | 12 | ||||||
Administration fees | 14 | ||||||
Legal fees | 2 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 3 | ||||||
Registration fees | 1 | ||||||
Other | 2 | ||||||
Total expenses | 683 | ||||||
Net Investment Income (Loss) | 147 | ||||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | 685 | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | 7,255 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 7,940 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 8,087 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 5
TA IDEX Jennison Growth
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 147 | $ | (356 | ) | ||||||
Net realized gain (loss) from investment securities | 685 | 5,829 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities | 7,255 | (1,651 | ) | ||||||||
8,087 | 3,822 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net realized gains: | |||||||||||
Class A | (415 | ) | (277 | ) | |||||||
Class B | (711 | ) | (623 | ) | |||||||
Class C | (246 | ) | (208 | ) | |||||||
Class I | (4,207 | ) | (1,276 | ) | |||||||
(5,579 | ) | (2,384 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 3 | 400 | |||||||||
Class B | 10 | 1,307 | |||||||||
Class C | 3 | 174 | |||||||||
Class I | 21,861 | 97,108 | |||||||||
21,877 | 98,989 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 401 | 266 | |||||||||
Class B | 651 | 544 | |||||||||
Class C | 221 | 189 | |||||||||
Class I | 4,207 | 1,276 | |||||||||
5,480 | 2,275 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (2,377 | ) | (56,926 | ) | |||||||
Class B | (3,832 | ) | (17,354 | ) | |||||||
Class C | (1,347 | ) | (5,645 | ) | |||||||
Class I | (15 | ) | (721 | ) | |||||||
(7,571 | ) | (80,646 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | – | (b) | ||||||||
Class B | – | – | (b) | ||||||||
Class C | – | (b) | – | (b) | |||||||
– | (b) | – | (b) | ||||||||
Automatic conversions: | |||||||||||
Class A | 103 | 300 | |||||||||
Class B | (103 | ) | (300 | ) | |||||||
– | – | ||||||||||
19,786 | 20,618 | ||||||||||
Net increase (decrease) in net assets | 22,294 | 22,056 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 130,917 | 108,861 | |||||||||
End of period | $ | 153,211 | $ | 130,917 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 145 | $ | (2 | ) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | – | (b) | 34 | ||||||||
Class B | 1 | 119 | |||||||||
Class C | – | (b) | 16 | ||||||||
Class I | 1,896 | 8,400 | |||||||||
1,897 | 8,569 | ||||||||||
Shares issued-reinvested from distributions: | |||||||||||
Class A | 36 | 23 | |||||||||
Class B | 62 | 49 | |||||||||
Class C | 21 | 17 | |||||||||
Class I | 375 | 109 | |||||||||
494 | 198 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (209 | ) | (4,991 | ) | |||||||
Class B | (360 | ) | (1,640 | ) | |||||||
Class C | (125 | ) | (530 | ) | |||||||
Class I | (1 | ) | (66 | ) | |||||||
(695 | ) | (7,227 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 9 | 27 | |||||||||
Class B | (10 | ) | (29 | ) | |||||||
(1 | ) | (2 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (164 | ) | (4,907 | ) | |||||||
Class B | (307 | ) | (1,501 | ) | |||||||
Class C | (104 | ) | (497 | ) | |||||||
Class I | 2,270 | 8,443 | |||||||||
1,695 | 1,538 |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 6
TA IDEX Jennison Growth
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 11.35 | $ | (0.01 | ) | $ | 0.65 | $ | 0.64 | $ | – | $ | (0.46 | ) | $ | (0.46 | ) | $ | 11.53 | |||||||||||||||||||
10/31/2006 | 11.06 | (0.06 | ) | 0.56 | 0.50 | – | (0.21 | ) | (0.21 | ) | 11.35 | ||||||||||||||||||||||||||||
10/31/2005 | 9.52 | (0.03 | ) | 1.57 | 1.54 | – | – | – | 11.06 | ||||||||||||||||||||||||||||||
10/31/2004 | 8.54 | (0.07 | ) | 1.05 | 0.98 | – | – | – | 9.52 | ||||||||||||||||||||||||||||||
10/31/2003 | 6.88 | (0.04 | ) | 1.70 | 1.66 | – | – | – | 8.54 | ||||||||||||||||||||||||||||||
10/31/2002 | 8.04 | (0.05 | ) | (1.11 | ) | (1.16 | ) | – | – | – | 6.88 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 10.63 | (0.01 | ) | 0.62 | 0.61 | – | (0.46 | ) | (0.46 | ) | 10.78 | |||||||||||||||||||||||||||
10/31/2006 | 10.39 | (0.08 | ) | 0.53 | 0.45 | – | (0.21 | ) | (0.21 | ) | 10.63 | ||||||||||||||||||||||||||||
10/31/2005 | 9.03 | (0.11 | ) | 1.47 | 1.36 | – | – | – | 10.39 | ||||||||||||||||||||||||||||||
10/31/2004 | 8.14 | (0.12 | ) | 1.01 | 0.89 | – | – | – | 9.03 | ||||||||||||||||||||||||||||||
10/31/2003 | 6.60 | (0.08 | ) | 1.62 | 1.54 | – | – | – | 8.14 | ||||||||||||||||||||||||||||||
10/31/2002 | 7.77 | (0.10 | ) | (1.07 | ) | (1.17 | ) | – | – | – | 6.60 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 10.66 | – | (h) | 0.60 | 0.60 | – | (0.46 | ) | (0.46 | ) | 10.80 | |||||||||||||||||||||||||||
10/31/2006 | 10.41 | (0.08 | ) | 0.54 | 0.46 | – | (0.21 | ) | (0.21 | ) | 10.66 | ||||||||||||||||||||||||||||
10/31/2005 | 9.05 | (0.12 | ) | 1.48 | 1.36 | – | – | – | 10.41 | ||||||||||||||||||||||||||||||
10/31/2004 | 8.14 | (0.15 | ) | 1.06 | 0.91 | – | – | – | 9.05 | ||||||||||||||||||||||||||||||
10/31/2003 | 6.60 | (0.09 | ) | 1.63 | 1.54 | – | – | – | 8.14 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 11.40 | 0.02 | 0.65 | 0.67 | – | (0.46 | ) | (0.46 | ) | 11.61 | ||||||||||||||||||||||||||||
10/31/2006 | 11.43 | – | (h) | 0.18 | 0.18 | – | (0.21 | ) | (0.21 | ) | 11.40 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 5.75 | % | $ | 9,212 | 1.33 | % | 1.33 | % | (0.17 | )% | 32 | % | ||||||||||||||||||
10/31/2006 | 4.44 | 10,924 | 1.41 | 1.41 | (0.56 | ) (i) | 80 | ||||||||||||||||||||||||
10/31/2005 | 16.18 | 64,920 | 1.41 | 1.41 | (0.33 | ) (i) | 86 | ||||||||||||||||||||||||
10/31/2004 | 11.48 | 57,760 | 1.59 | 1.59 | (0.79 | ) | 147 | ||||||||||||||||||||||||
10/31/2003 | 24.13 | 18,833 | 1.75 | 1.90 | (0.54 | ) | 100 | ||||||||||||||||||||||||
10/31/2002 | (14.47 | ) | 21,836 | 1.75 | 1.82 | (0.52 | ) | 98 | |||||||||||||||||||||||
Class B | 4/30/2007 | 5.86 | 14,518 | 1.29 | 1.29 | (0.12 | ) | 32 | |||||||||||||||||||||||
10/31/2006 | 4.24 | 17,590 | 1.62 | 1.62 | (0.75 | ) (i) | 80 | ||||||||||||||||||||||||
10/31/2005 | 15.06 | 32,778 | 2.27 | 2.27 | (1.18 | ) | 86 | ||||||||||||||||||||||||
10/31/2004 | 10.93 | 34,667 | 2.24 | 2.24 | (1.37 | ) | 147 | ||||||||||||||||||||||||
10/31/2003 | 23.33 | 37,500 | 2.40 | 2.55 | (1.19 | ) | 100 | ||||||||||||||||||||||||
10/31/2002 | (15.10 | ) | 37,363 | 2.40 | 2.47 | (1.17 | ) | 98 | |||||||||||||||||||||||
Class C | 4/30/2007 | 5.75 | 5,083 | 1.24 | 1.24 | (0.08 | ) (i) | 32 | |||||||||||||||||||||||
10/31/2006 | 4.33 | 6,130 | 1.66 | 1.66 | (0.79 | ) (i) | 80 | ||||||||||||||||||||||||
10/31/2005 | 15.03 | 11,163 | 2.37 | 2.37 | (1.20 | ) (i) | 86 | ||||||||||||||||||||||||
10/31/2004 | 11.18 | 13,717 | 2.39 | 2.39 | (1.68 | ) | 147 | ||||||||||||||||||||||||
10/31/2003 | 23.33 | 607 | 2.40 | 2.55 | (1.19 | ) | 100 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 5.99 | 124,398 | 0.88 | 0.88 | 0.31 | 32 | ||||||||||||||||||||||||
10/31/2006 | 1.50 | 96,273 | 0.89 | 0.89 | (0.02 | ) | 80 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 7
TA IDEX Jennison Growth
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on the average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Rounds to less than $(0.01) per share.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 8
TA IDEX Jennison Growth
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Jennison Growth (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Classes A, B, and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $11 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $52, earned by IBT for its services.
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
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 9
TA IDEX Jennison Growth
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
as the Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 285 | 0.19 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 106,818 | 69.72 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 3,643 | 2.38 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 13,652 | 8.91 | % | ||||||||
Total | $ | 124,398 | 81.20 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $250 million of ANA
0.775% of the next $250 million of ANA
0.70% of the next $500 million of ANA
0.675% of the next $500 million of ANA
0.65% of ANA over $1.5 billion
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.40% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 10
TA IDEX Jennison Growth
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $61 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $8.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $7. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 53,474 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 43,798 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and net operating losses.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 11
TA IDEX Jennison Growth
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 12
TA IDEX Jennison Growth
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Jennison Growth (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Jennison Associates LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreem ent. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their decisions on the followin g 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser generally had achieved acceptable investment performance, noting the competitive performance of the Fund relative to its peers over the past three- and five-year periods, although the Fund's performance was below median compared to its peers over the past one- and two-year periods. The Board indicated to TFAI its desire to see improved performance. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI an d the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Board noted the Fund's new pricing schedule, which allows for the investment sub-advisory fee to be calculated by combining average daily net assets with the same named fund managed by the Sub-Adviser for AEGON/Transamerica Series Trust, another mutual fund managed by TFAI, for purposes of reaching asset-based breakpoints. This new pricing schedule could lower the effective sub-advisory fee rate paid by TFAI with respe ct to the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund generally are consistent with industry averages. In addition, on the basis of the Board's review of the management fees to
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 13
TA IDEX Jennison Growth (continued)
be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current econo mic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requiremen ts in particular. 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Jennison Growth 14
TA IDEX Legg Mason Partners All Cap
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,094.00 | 1.55 | % | $ | 8.05 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.11 | 1.55 | 7.75 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,091.10 | 2.20 | 11.41 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,013.88 | 2.20 | 10.99 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,091.10 | 2.15 | 11.15 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.13 | 2.15 | 10.74 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 1
TA IDEX Legg Mason Partners All Cap
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (99.8%) | |||||||||||
Aerospace (1.5%) | |||||||||||
Boeing Co. (The) | 33,100 | $ | 3,078 | ||||||||
Amusement & Recreation Services (2.3%) | |||||||||||
Disney (Walt) Co. (The) | 132,600 | 4,638 | |||||||||
Apparel & Accessory Stores (1.1%) | |||||||||||
Gap (The), Inc. | 120,600 | 2,165 | |||||||||
Automotive (0.1%) | |||||||||||
Magna International, Inc.–Class A † | 1,890 | 150 | |||||||||
Business Services (2.6%) | |||||||||||
eBay, Inc. ‡ | 40,000 | 1,358 | |||||||||
Interpublic Group of Cos., Inc. †‡ | 298,900 | 3,790 | |||||||||
Chemicals & Allied Products (2.7%) | |||||||||||
Dow Chemical Co. (The) | 49,800 | 2,222 | |||||||||
du Pont (E.I.) de Nemours & Co. | 62,900 | 3,093 | |||||||||
Commercial Banks (6.8%) | |||||||||||
Bank of America Corp. | 82,533 | 4,201 | |||||||||
JP Morgan Chase & Co. | 110,500 | 5,757 | |||||||||
State Street Corp. | 51,000 | 3,512 | |||||||||
Communications Equipment (1.8%) | |||||||||||
Motorola, Inc. | 210,600 | 3,650 | |||||||||
Computer & Data Processing Services (2.8%) | |||||||||||
Microsoft Corp. | 139,600 | 4,180 | |||||||||
VeriSign, Inc. ‡ | 49,500 | 1,354 | |||||||||
Wave Systems Corp.–Class A †‡ | 52,633 | 130 | |||||||||
Computer & Office Equipment (2.9%) | |||||||||||
Cisco Systems, Inc. ‡ | 108,400 | 2,899 | |||||||||
International Business Machines Corp. | 28,700 | 2,933 | |||||||||
Diversified (2.6%) | |||||||||||
Honeywell International, Inc. | 95,100 | 5,152 | |||||||||
Electronic & Other Electric Equipment (4.1%) | |||||||||||
General Electric Co. | 112,000 | 4,128 | |||||||||
Samsung Electronics Co., Ltd., GDR–144A | 13,300 | 4,083 | |||||||||
Electronic Components & Accessories (4.4%) | |||||||||||
Novellus Systems, Inc. ‡ | 55,200 | 1,787 | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd., ADR | 252,536 | 2,662 | |||||||||
Texas Instruments, Inc. | 112,400 | 3,863 | |||||||||
Verigy, Ltd. ‡ | 15,411 | 389 | |||||||||
Fabricated Metal Products (0.3%) | |||||||||||
Simpson Manufacturing Co., Inc. † | 18,900 | 608 |
Shares | Value | ||||||||||
Food & Kindred Products (3.9%) | |||||||||||
Kraft Foods, Inc.–Class A | 93,496 | $ | 3,129 | ||||||||
Smithfield Foods, Inc. ‡ | 11,800 | 361 | |||||||||
Unilever PLC | 41,575 | 1,310 | |||||||||
Unilever PLC, Sponsored ADR | 92,419 | 2,894 | |||||||||
Furniture & Home Furnishings Stores (0.4%) | |||||||||||
Williams-Sonoma, Inc. † | 25,240 | 889 | |||||||||
Gas Production & Distribution (0.9%) | |||||||||||
Williams Cos., Inc. (The) | 61,800 | 1,823 | |||||||||
Health Services (1.5%) | |||||||||||
Enzo Biochemical, Inc. †‡ | 173,417 | 2,915 | |||||||||
Industrial Machinery & Equipment (5.2%) | |||||||||||
Applied Materials, Inc. | 207,700 | 3,992 | |||||||||
Baker Hughes, Inc. | 17,400 | 1,399 | |||||||||
Caterpillar, Inc. | 42,800 | 3,108 | |||||||||
Deere & Co. | 17,600 | 1,925 | |||||||||
Instruments & Related Products (3.3%) | |||||||||||
Agilent Technologies, Inc. ‡ | 57,300 | 1,969 | |||||||||
Raytheon Co. | 87,400 | 4,679 | |||||||||
Insurance (7.2%) | |||||||||||
Allied World Assurance Holdings, Ltd./Bermuda | 23,110 | 1,024 | |||||||||
American International Group, Inc. | 36,000 | 2,517 | |||||||||
Chubb Corp. | 64,960 | 3,497 | |||||||||
MGIC Investment Corp. | 43,300 | 2,668 | |||||||||
PMI Group, Inc. (The) | 94,400 | 4,576 | |||||||||
Insurance Agents, Brokers & Service (1.1%) | |||||||||||
Hartford Financial Services Group, Inc. (The) | 21,100 | 2,135 | |||||||||
Lumber & Other Building Materials (1.6%) | |||||||||||
Home Depot, Inc. (The) | 82,700 | 3,132 | |||||||||
Lumber & Wood Products (1.4%) | |||||||||||
Weyerhaeuser Co. | 35,200 | 2,789 | |||||||||
Metal Mining (0.1%) | |||||||||||
AngloGold Ashanti, Ltd., ADR | 2,500 | 111 | |||||||||
Newmont Mining Corp. | 2,200 | 92 | |||||||||
Motion Pictures (5.1%) | |||||||||||
News Corp., Inc.–Class B † | 267,800 | 6,427 | |||||||||
Time Warner, Inc. | 184,300 | 3,802 | |||||||||
Oil & Gas Extraction (4.1%) | |||||||||||
Anadarko Petroleum Corp. | 44,600 | 2,081 | |||||||||
BJ Services Co. | 43,300 | 1,241 | |||||||||
GlobalSantaFe Corp. | 22,600 | 1,445 | |||||||||
Halliburton Co. | 43,300 | 1,376 | |||||||||
Schlumberger, Ltd. | 26,300 | 1,942 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 2
TA IDEX Legg Mason Partners All Cap
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Paper & Allied Products (1.4%) | |||||||||||
Kimberly-Clark Corp. | 40,300 | $ | 2,868 | ||||||||
Petroleum Refining (1.9%) | |||||||||||
Chevron Corp. | 16,400 | 1,276 | |||||||||
ConocoPhillips | 12,100 | 839 | |||||||||
Exxon Mobil Corp. | 19,800 | 1,572 | |||||||||
Pharmaceuticals (12.2%) | |||||||||||
Abbott Laboratories | 87,400 | 4,949 | |||||||||
Bentley Pharmaceuticals, Inc. ‡ | 1,489 | 14 | |||||||||
GlaxoSmithKline PLC, ADR | 55,400 | 3,201 | |||||||||
Johnson & Johnson | 56,500 | 3,628 | |||||||||
Lilly (Eli) & Co. | 33,300 | 1,969 | |||||||||
Novartis AG, ADR | 37,700 | 2,190 | |||||||||
Pfizer, Inc. | 146,300 | 3,871 | |||||||||
Wyeth | 81,900 | 4,545 | |||||||||
Primary Metal Industries (1.3%) | |||||||||||
Alcoa, Inc. | 74,400 | 2,640 | |||||||||
Radio & Television Broadcasting (2.8%) | |||||||||||
Pearson PLC | 329,200 | 5,672 | |||||||||
Retail Trade (2.0%) | |||||||||||
Wal-Mart Stores, Inc. | 81,300 | 3,896 | |||||||||
Security & Commodity Brokers (4.4%) | |||||||||||
American Express Co. | 49,200 | 2,985 | |||||||||
Franklin Resources, Inc. | 6,000 | 788 | |||||||||
Merrill Lynch & Co., Inc. | 54,500 | 4,918 | |||||||||
Nuveen Investments, Inc.–Class A | 1,490 | 80 | |||||||||
Telecommunications (2.0%) | |||||||||||
Vodafone Group PLC, ADR | 137,137 | 3,940 | |||||||||
Total Common Stocks (cost: $155,012) | 198,871 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (6.7%) | |||||||||||
Debt (6.7%) | |||||||||||
Bank Notes (0.4%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 417 | $ | 417 | |||||||
5.27%, due 06/18/2007 * | 417 | 417 | |||||||||
Commercial Paper (1.5%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 167 | 167 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 162 | 162 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 111 84 | 111 84 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | $ | 84 | $ | 84 | |||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 84 | 84 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 84 | 84 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 84 84 | 84 84 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 167 | 167 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 163 | 163 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 167 | 167 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 167 | 167 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 330 84 84 | 330 84 84 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 84 84 84 110 | 84 84 84 110 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 125 | 125 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 84 | 84 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 167 | 167 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 84 | 84 | |||||||||
Euro Dollar Overnight (0.8%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 84 | 84 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 167 | 167 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 167 | 167 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 167 | 167 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 167 | �� | 167 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 3
TA IDEX Legg Mason Partners All Cap
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | $ | 167 | $ | 167 | |||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 167 | 167 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 83 | 83 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 167 | 167 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 316 | 316 | |||||||||
Euro Dollar Terms (2.4%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 167 | 167 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 83 | 83 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 117 | 117 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 167 167 83 83 167 | 167 167 83 83 167 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 83 167 | 83 167 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 250 83 | 250 83 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 167 | 167 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 167 | 167 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Fortis Bank | |||||||||||
5.28%, due 05/21/2007 | $ | 250 | $ | 250 | |||||||
5.28%, due 05/25/2007 | 250 | 250 | |||||||||
5.30%, due 06/25/2007 | 167 | 167 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 250 | 250 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 167 83 167 | 167 83 167 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 83 | 83 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 167 | 167 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 167 | 167 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 167 334 250 417 | 167 334 250 417 | |||||||||
Repurchase Agreements (1.6%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $462 on 05/01/2007 | 462 | 462 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $1,837 on 05/01/2007 | 1,836 | 1,836 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $804 on 05/01/2007 | 804 | 804 | |||||||||
Total Security Lending Collateral (cost: $13,386) | 13,386 | ||||||||||
Total Investment Securities (cost: $168,398) # | $ | 212,257 |
NOTES TO SCHEDULE OF INVESTMENTS:
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $12,753.
‡ Non-income producing.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $3,183, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $169,075. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $43,630 and $448, respectively. Net unrealized appreciation for tax purposes is $43,182.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 4
TA IDEX Legg Mason Partners All Cap
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
DEFINITIONS:
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 April 30, 2007, these securities aggregated $6,593 or 3.3% of the net assets of the Fund.
ADR American Depositary Receipt
GDR Global Depositary Receipt
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 5
TA IDEX Legg Mason Partners All Cap
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $168,398) (including securities loaned of $12,753) | $ | 212,257 | |||||
Cash | 1,176 | ||||||
Receivables: | |||||||
Shares of beneficial interest sold | 68 | ||||||
Interest | 5 | ||||||
Income from loaned securities | 1 | ||||||
Dividends | 284 | ||||||
Dividend reclaims receivable | 13 | ||||||
Other | 29 | ||||||
213,833 | |||||||
Liabilities: | |||||||
Investment securities purchased | 265 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 547 | ||||||
Management and advisory fees | 130 | ||||||
Distribution and service fees | 139 | ||||||
Transfer agent fees | 60 | ||||||
Administration fees | 3 | ||||||
Dividends to shareholders | 1 | ||||||
Payable for collateral for securities on loan | 13,386 | ||||||
Other | 91 | ||||||
14,622 | |||||||
Net Assets | $ | 199,211 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 145,951 | |||||
Undistributed (accumulated) net investment income (loss) | (225 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | 9,625 | ||||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | 43,859 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 1 | ||||||
Net Assets | $ | 199,211 | |||||
Net Assets by Class: | |||||||
Class A | $ | 54,129 | |||||
Class B | 104,753 | ||||||
Class C | 40,329 | ||||||
Shares Outstanding: | |||||||
Class A | 3,165 | ||||||
Class B | 6,511 | ||||||
Class C | 2,505 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 17.10 | |||||
Class B | 16.09 | ||||||
Class C | 16.10 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 18.10 |
(a) 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 and C shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $17) | $ | 1,863 | |||||
Interest | 54 | ||||||
Income from loaned securities-net | 26 | ||||||
1,943 | |||||||
Expenses: | |||||||
Management and advisory fees | 807 | ||||||
Distribution and service fees: | |||||||
Class A | 95 | ||||||
Class B | 535 | ||||||
Class C | 203 | ||||||
Transfer agent fees: | |||||||
Class A | 83 | ||||||
Class B | 155 | ||||||
Class C | 45 | ||||||
Printing and shareholder reports | 41 | ||||||
Custody fees | 16 | ||||||
Administration fees | 20 | ||||||
Legal fees | 3 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 4 | ||||||
Registration fees | 32 | ||||||
Other | 2 | ||||||
Total expenses | 2,051 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (9 | ) | |||||
Class B | (9 | ) | |||||
Total reimbursed expenses | (18 | ) | |||||
Net expenses | 2,033 | ||||||
Net Investment Income (Loss) | (90 | ) | |||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 10,298 | ||||||
Foreign currency transactions | 3 | ||||||
10,301 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 7,699 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 1 | ||||||
7,700 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 18,001 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 17,911 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 6
TA IDEX Legg Mason Partners All Cap
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | (90 | ) | $ | 172 | ||||||
Net realized gain (loss) from investment securities and foreign currency transactions | 10,301 | 29,576 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency | |||||||||||
translation | 7,700 | 8,372 | |||||||||
17,911 | 38,120 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (175 | ) | (73 | ) | |||||||
Class B | – | (31 | ) | ||||||||
Class C | – | (12 | ) | ||||||||
(175 | ) | (116 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (7,681 | ) | (1,963 | ) | |||||||
Class B | (16,118 | ) | (4,251 | ) | |||||||
Class C | (6,121 | ) | (1,665 | ) | |||||||
Class I | – | (1,431 | ) | ||||||||
(29,920 | ) | (9,310 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 2,908 | 5,337 | |||||||||
Class B | 2,894 | 5,189 | |||||||||
Class C | 1,170 | 2,352 | |||||||||
Class I | – | 115,961 | |||||||||
6,972 | 128,839 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 7,515 | 1,945 | |||||||||
Class B | 14,734 | 3,948 | |||||||||
Class C | 5,460 | 1,557 | |||||||||
Class I | – | 1,431 | |||||||||
27,709 | 8,881 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (9,691 | ) | (134,522 | ) | |||||||
Class B | (15,018 | ) | (35,861 | ) | |||||||
Class C | (5,106 | ) | (17,534 | ) | |||||||
Class I | – | (119,300 | ) | ||||||||
(29,815 | ) | (307,217 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (b) | – | (b) | |||||||
Class B | – | (b) | – | (b) | |||||||
Class C | – | (b) | – | (b) | |||||||
– | (b) | – | (b) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 693 | $ | 350 | |||||||
Class B | (693 | ) | (350 | ) | |||||||
– | – | ||||||||||
4,866 | (169,497 | ) | |||||||||
Net increase (decrease) in net assets | (7,318 | ) | (140,803 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 206,529 | 347,332 | |||||||||
End of period | $ | 199,211 | $ | 206,529 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (225 | ) | $ | 40 | ||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 172 | 313 | |||||||||
Class B | 179 | 320 | |||||||||
Class C | 75 | 146 | |||||||||
Class I | – | 7,081 | |||||||||
426 | 7,860 | ||||||||||
Shares issued-reinvested from distributions: | |||||||||||
Class A | 462 | 119 | |||||||||
Class B | 960 | 253 | |||||||||
Class C | 355 | 100 | |||||||||
Class I | – | 88 | |||||||||
1,777 | 560 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (569 | ) | (8,195 | ) | |||||||
Class B | (939 | ) | (2,220 | ) | |||||||
Class C | (321 | ) | (1,092 | ) | |||||||
Class I | – | (7,169 | ) | ||||||||
(1,829 | ) | (18,676 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 40 | 21 | |||||||||
Class B | (43 | ) | (22 | ) | |||||||
(3 | ) | (1 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 105 | (7,742 | ) | ||||||||
Class B | 157 | (1,669 | ) | ||||||||
Class C | 109 | (846 | ) | ||||||||
371 | (10,257 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 7
TA IDEX Legg Mason Partners All Cap
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 18.18 | $ | 0.03 | $ | 1.54 | $ | 1.57 | $ | (0.06 | ) | $ | (2.60 | ) | $ | (2.66 | ) | $ | 17.10 | |||||||||||||||||||
10/31/2006 | 16.10 | 0.09 | 2.55 | 2.64 | (0.01 | ) | (0.55 | ) | (0.56 | ) | 18.18 | ||||||||||||||||||||||||||||
10/31/2005 | 14.80 | 0.06 | 1.24 | 1.30 | – | (h) | – | – | 16.10 | ||||||||||||||||||||||||||||||
10/31/2004 | 13.95 | (0.03 | ) | 0.88 | 0.85 | – | – | – | 14.80 | ||||||||||||||||||||||||||||||
10/31/2003 | 10.34 | (0.04 | ) | 3.65 | 3.61 | – | – | – | 13.95 | ||||||||||||||||||||||||||||||
10/31/2002 | 13.63 | – | (3.15 | ) | (3.15 | ) | – | (0.14 | ) | (0.14 | ) | 10.34 | |||||||||||||||||||||||||||
Class B | 4/30/2007 | 17.24 | (0.02 | ) | 1.47 | 1.45 | – | (2.60 | ) | (2.60 | ) | 16.09 | |||||||||||||||||||||||||||
10/31/2006 | 15.39 | (0.03 | ) | 2.43 | 2.40 | – | (h) | (0.55 | ) | (0.55 | ) | 17.24 | |||||||||||||||||||||||||||
10/31/2005 | 14.27 | (0.09 | ) | 1.21 | 1.12 | – | – | – | 15.39 | ||||||||||||||||||||||||||||||
10/31/2004 | 13.53 | (0.11 | ) | 0.85 | 0.74 | – | – | – | 14.27 | ||||||||||||||||||||||||||||||
10/31/2003 | 10.08 | (0.12 | ) | 3.57 | 3.45 | – | – | – | 13.53 | ||||||||||||||||||||||||||||||
10/31/2002 | 13.41 | (0.10 | ) | (3.09 | ) | (3.19 | ) | – | (0.14 | ) | (0.14 | ) | 10.08 | ||||||||||||||||||||||||||
Class C | 4/30/2007 | 17.25 | (0.02 | ) | 1.46 | 1.45 | – | (2.60 | ) | (2.60 | ) | 16.10 | |||||||||||||||||||||||||||
10/31/2006 | 15.39 | (0.02 | ) | 2.43 | 2.41 | – | (h) | (0.55 | ) | (0.55 | ) | 17.25 | |||||||||||||||||||||||||||
10/31/2005 | 14.26 | (0.08 | ) | 1.21 | 1.13 | – | – | – | 15.39 | ||||||||||||||||||||||||||||||
10/31/2004 | 13.53 | (0.12 | ) | 0.85 | 0.73 | – | – | – | 14.26 | ||||||||||||||||||||||||||||||
10/31/2003 | 10.26 | (0.12 | ) | 3.39 | 3.27 | – | – | – | 13.53 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net(e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 9.40 | % | $ | 54,129 | 1.55 | % | 1.58 | % | 0.38 | % (i) | 13 | % | ||||||||||||||||||
10/31/2006 | 16.74 | 55,622 | 1.55 | 1.57 | 0.52 | (i) | 25 | ||||||||||||||||||||||||
10/31/2005 | 8.79 | 173,929 | 1.32 | 1.32 | 0.36 | (i) | 27 | ||||||||||||||||||||||||
10/31/2004 | 6.09 | 438,047 | 1.33 | 1.33 | (0.17 | ) | 25 | ||||||||||||||||||||||||
10/31/2003 | 34.91 | 271,958 | 1.55 | 1.64 | (0.36 | ) | 30 | ||||||||||||||||||||||||
10/31/2002 | (23.44 | ) | 57,528 | 1.55 | 1.65 | (0.03 | ) | 162 | |||||||||||||||||||||||
Class B | 4/30/2007 | 9.11 | 104,753 | 2.20 | 2.22 | (0.27 | ) (i) | 13 | |||||||||||||||||||||||
10/31/2006 | 15.97 | 109,567 | 2.20 | 2.21 | (0.17 | ) (i) | 25 | ||||||||||||||||||||||||
10/31/2005 | 7.84 | 123,494 | 2.19 | 2.19 | (0.58 | ) (i) | 27 | ||||||||||||||||||||||||
10/31/2004 | 5.48 | 150,829 | 1.97 | 1.97 | (0.80 | ) | 25 | ||||||||||||||||||||||||
10/31/2003 | 34.23 | 158,147 | 2.20 | 2.29 | (1.01 | ) | 30 | ||||||||||||||||||||||||
10/31/2002 | (24.11 | ) | 130,709 | 2.20 | 2.30 | (0.68 | ) | 162 | |||||||||||||||||||||||
Class C | 4/30/2007 | 9.11 | 40,329 | 2.15 | 2.15 | (0.23 | ) (i) | 13 | |||||||||||||||||||||||
10/31/2006 | 16.04 | 41,340 | 2.15 | 2.15 | (0.12 | ) (i) | 25 | ||||||||||||||||||||||||
10/31/2005 | 7.89 | 49,909 | 2.15 | 2.15 | (0.53 | ) (i) | 27 | ||||||||||||||||||||||||
10/31/2004 | 5.43 | 65,391 | 1.99 | 1.99 | (0.83 | ) | 25 | ||||||||||||||||||||||||
10/31/2003 | 31.87 | 2,547 | 2.20 | 2.29 | (1.01 | ) | 30 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 8
TA IDEX Legg Mason Partners All Cap
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception date for the Fund's offering of share Class C was November 11, 2002.
(h) Rounds to less than $(0.01) per share.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 9
TA IDEX Legg Mason Partners All Cap
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
Effective October 27, 2006, TA IDEX Salomon All Cap was renamed to TA IDEX Legg Mason Partners All Cap ("the Fund") and changed its sub-advisor from Salomon Brothers Asset Management Inc ("SaBAM") to ClearBridge Advisors, LLC.
The Fund is "non-diversified" under the 1940 act.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class I is currently uninvested. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual Funds has established a Commission Recapture Program. A Commission Recapture Program is any arrangement under which a broker/dealer applies a portion of
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 10
TA IDEX Legg Mason Partners All Cap
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
the commissions received by such broker/dealer on the security transactions to the Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $10 are included in net realized gains on the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $11, earned by IBT for its services.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
From November 1, 2006 to December 31, 2006:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
From January 1, 2007 on:
0.80% of the first $500 million of ANA
0.675% of ANA over $500 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.20% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 11
TA IDEX Legg Mason Partners All Cap
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Reimbursement of Expenses | Available for Recapture Through | ||||||||||
Fiscal Year 2006: | |||||||||||
Class B | $ | 11 | 10/31/2009 | ||||||||
Class C | 15 | 10/31/2009 |
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 35 | |||||
Retained by Underwriter | 5 | ||||||
Contingent Deferred Sales Charge | 70 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $266 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all defer red fees in the Plan amounted, as of April 30, 2007, to $29.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $13. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 25,474 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 45,377 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and deferred compensation.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 12
TA IDEX Legg Mason Partners All Cap
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 13
TA IDEX Legg Mason Partners All Cap
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Legg Mason Partners All Cap Fund (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and ClearBridge Advisors, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, a majority of the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including a majority of the independent members of the Board, unanimously approved the renewal of the Investment Advisory A greement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Board favorably noted the strong performance of the Fund in comparison to its peers over the past one-year trailing period, which represented a notable improvement compared to the Fund's performance over the past two-, three- and five-year trailing periods. In this regard, the Board favorably noted a new management fee pricing schedule with lower advisory fees at certain asset levels, which could help improve performance. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Truste es concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Trustees noted that the management fees and overall expense ratio of the Fund could be improved, but that the Fund's recent performance was strong compared to peer funds, and the new, lower advisory fee schedule could help improve the Fund's expense level. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated man
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 14
TA IDEX Legg Mason Partners All Cap (continued)
agement income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the asset-based breakpoints in the Fund's advisory fee schedule appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows. The Board also noted that new asset-based fee breakpoint levels were negotiated, and that the Sub-Adviser calculates its sub-advisory fee based on the combined net assets of both the Fund and another investment company advised by TFAI, which may allow for greater realization of economies of scale in the future. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that other benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" req uirements in particular. 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. In addition, the Trustees determined that the administration, fund accounting, and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. The Trustees also considered the recent change in control of the Sub-Adviser and its still ongoing reorganization within its new corporate group, as well as consequences of these changes on the Fund. In this regard, the Trustees took note of the recent improvement of the Fund's performance.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners All Cap 15
TA IDEX Legg Mason Partners Investors Value
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,085.80 | 1.21 | % | $ | 6.26 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,018.79 | 1.21 | 6.06 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,085.20 | 1.21 | 6.26 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.79 | 1.21 | 6.06 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,085.20 | 1.22 | 6.31 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.74 | 1.22 | 6.11 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,086.60 | 0.89 | 4.60 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.38 | 0.89 | 4.46 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 1
TA IDEX Legg Mason Partners Investors Value
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (97.1%) | |||||||||||
Aerospace (5.1%) | |||||||||||
Boeing Co. (The) | 15,200 | $ | 1,414 | ||||||||
Textron, Inc. | 15,500 | 1,576 | |||||||||
United Technologies Corp. | 21,100 | 1,416 | |||||||||
Business Credit Institutions (1.3%) | |||||||||||
Freddie Mac | 18,090 | 1,172 | |||||||||
Chemicals & Allied Products (2.8%) | |||||||||||
Air Products & Chemicals, Inc. | 15,400 | 1,178 | |||||||||
du Pont (E.I.) de Nemours & Co. | 25,600 | 1,259 | |||||||||
Commercial Banks (9.0%) | |||||||||||
Bank of America Corp. | 33,900 | 1,726 | |||||||||
Bank of New York Co., Inc. (The) | 23,900 | 967 | |||||||||
JP Morgan Chase & Co. | 43,100 | 2,246 | |||||||||
Wachovia Corp. | 23,953 | 1,330 | |||||||||
Wells Fargo & Co. | 44,500 | 1,597 | |||||||||
Communication (1.5%) | |||||||||||
EchoStar Communications Corp.–Class A ‡ | 27,500 | 1,280 | |||||||||
Communications Equipment (4.9%) | |||||||||||
Comverse Technology, Inc. ‡ | 42,700 | 968 | |||||||||
L-3 Communications Holdings, Inc. | 10,200 | 917 | |||||||||
Nokia Corp., ADR | 62,900 | 1,588 | |||||||||
SES FDR | 42,800 | 841 | |||||||||
Computer & Data Processing Services (1.1%) | |||||||||||
Microsoft Corp. | 32,200 | 964 | |||||||||
Computer & Office Equipment (1.2%) | |||||||||||
International Business Machines Corp. | 9,900 | 1,012 | |||||||||
Electric Services (2.3%) | |||||||||||
Sempra Energy | 31,300 | 1,987 | |||||||||
Electronic & Other Electric Equipment (3.1%) | |||||||||||
General Electric Co. | 74,500 | 2,746 | |||||||||
Fabricated Metal Products (1.1%) | |||||||||||
Parker Hannifin Corp. | 10,700 | 986 | |||||||||
Food & Kindred Products (3.8%) | |||||||||||
Altria Group, Inc. | 35,200 | 2,426 | |||||||||
Kraft Foods, Inc.-Class A | 27,466 | 919 | |||||||||
Furniture & Fixtures (0.9%) | |||||||||||
Masco Corp. | 28,700 | 781 | |||||||||
Instruments & Related Products (1.2%) | |||||||||||
Raytheon Co. | 19,200 | 1,028 |
Shares | Value | ||||||||||
Insurance (12.7%) | |||||||||||
AFLAC, Inc. | 27,000 | $ | 1,386 | ||||||||
American International Group, Inc. | 23,800 | 1,664 | |||||||||
Chubb Corp. | 26,400 | 1,421 | |||||||||
Loews Corp. | 43,200 | 2,044 | |||||||||
Travelers Cos., Inc. (The) | 27,300 | 1,477 | |||||||||
UnitedHealth Group, Inc. | 28,700 | 1,523 | |||||||||
WellPoint, Inc. ‡ | 19,200 | 1,516 | |||||||||
Insurance Agents, Brokers & Service (1.6%) | |||||||||||
Marsh & McLennan Cos., Inc. | 44,200 | 1,404 | |||||||||
Lumber & Other Building Materials (1.4%) | |||||||||||
Home Depot, Inc. (The) | 32,000 | 1,212 | |||||||||
Motion Pictures (4.7%) | |||||||||||
News Corp., Inc.–Class B † | 106,100 | 2,546 | |||||||||
Time Warner, Inc. | 75,900 | 1,566 | |||||||||
Oil & Gas Extraction (5.6%) | |||||||||||
GlobalSantaFe Corp. | 21,500 | 1,375 | |||||||||
Royal Dutch Shell PLC–Class A, ADR † | 13,800 | 957 | |||||||||
Total SA, ADR † | 34,200 | 2,520 | |||||||||
Paper & Allied Products (2.9%) | |||||||||||
Avery Dennison Corp. | 15,500 | 964 | |||||||||
Kimberly-Clark Corp. | 22,500 | 1,601 | |||||||||
Personal Credit Institutions (2.4%) | |||||||||||
Capital One Financial Corp. † | 27,800 | 2,064 | |||||||||
Petroleum Refining (1.1%) | |||||||||||
Suncor Energy, Inc. | 12,500 | 1,006 | |||||||||
Pharmaceuticals (4.1%) | |||||||||||
Abbott Laboratories | 24,400 | 1,382 | |||||||||
Johnson & Johnson | 13,300 | 854 | |||||||||
Novartis AG, ADR | 22,600 | 1,313 | |||||||||
Radio & Television Broadcasting (1.5%) | |||||||||||
Liberty Media Holding Corp.–Capital–Class A ‡ | 5,380 | 608 | |||||||||
Liberty Media Holding Corp.–Interactive– Class A ‡ | 26,500 | 663 | |||||||||
Restaurants (2.2%) | |||||||||||
McDonald's Corp. | 38,900 | 1,878 | |||||||||
Retail Trade (3.1%) | |||||||||||
Target Corp. | 16,600 | 986 | |||||||||
Wal-Mart Stores, Inc. | 36,200 | 1,735 | |||||||||
Security & Commodity Brokers (6.4%) | |||||||||||
American Express Co. | 37,500 | 2,275 | |||||||||
Goldman Sachs Group, Inc. (The) | 5,300 | 1,159 | |||||||||
Merrill Lynch & Co., Inc. | 23,400 | 2,111 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 2
TA IDEX Legg Mason Partners Investors Value
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Telecommunications (8.1%) | |||||||||||
ALLTEL Corp. | 24,900 | $ | 1,561 | ||||||||
AT&T, Inc. | 64,284 | 2,489 | |||||||||
Embarq Corp. † | 20,845 | 1,252 | |||||||||
Sprint Nextel Corp. | 85,713 | 1,717 | |||||||||
Total Common Stocks (cost: $67,055) | 84,553 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (9.0%) | |||||||||||
Debt (9.0%) | |||||||||||
Bank Notes (0.6%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 244 | $ | 244 | |||||||
5.27%, due 06/18/2007 * | 244 | 244 | |||||||||
Commercial Paper (1.9%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 98 | 98 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 94 | 94 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 65 49 | 65 49 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 49 | 49 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 49 | 49 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 49 | 49 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 49 49 | 49 49 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 97 | 97 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 95 | 95 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 97 | 97 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 97 | 97 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 193 49 49 | 193 49 49 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 49 49 49 64 | 49 49 49 64 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | $ | 73 | $ | 73 | |||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 49 | 49 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 97 | 97 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 49 | 49 | |||||||||
Euro Dollar Overnight (1.1%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 49 | 49 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 97 | 97 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 97 | 97 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 97 | 97 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 97 | 97 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 97 | 97 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 97 | 97 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 49 | 49 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 97 | 97 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 185 | 185 | |||||||||
Euro Dollar Terms (3.3%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 97 | 97 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 49 | 49 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 68 | 68 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 97 97 49 49 97 | 97 97 49 49 97 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 49 97 | 49 97 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 3
TA IDEX Legg Mason Partners Investors Value
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Canadian Imperial Bank of Commerce | |||||||||||
5.28%, due 05/16/2007 | $ | 146 | $ | 146 | |||||||
5.28%, due 05/29/2007 | 49 | 49 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 97 | 97 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 97 | 97 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 146 146 97 | 146 146 97 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 146 | 146 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 97 49 97 | 97 49 97 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 49 | 49 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 97 | 97 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | $ | 97 | $ | 97 | |||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 97 195 146 244 | 97 195 146 244 | |||||||||
Repurchase Agreements (2.1%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $270 on 05/01/2007 | 270 | 270 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $1,071 on 05/01/2007 | 1,071 | 1,071 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $469 on 05/01/2007 | 469 | 469 | |||||||||
Total Security Lending Collateral (cost: $7,808) | 7,808 | ||||||||||
Total Investment Securities (cost: $74,863) # | $ | 92,361 |
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $7,602.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $1,857, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $75,399. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $17,249 and $287, respectively. Net unrealized appreciation for tax purposes is $16,962.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $1,463 or 1.7% of the net assets of the Fund.
ADR American Depositary Receipt
FDR Finnish Depositary Receipt
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 4
TA IDEX Legg Mason Partners Investors Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $74,863) (including securities loaned of $7,602) | $ | 92,361 | |||||
Cash | 2,205 | ||||||
Receivables: | |||||||
Investment securities sold | 340 | ||||||
Interest | 6 | ||||||
Dividends | 84 | ||||||
Dividend reclaims receivable | 3 | ||||||
Other | 12 | ||||||
95,011 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 13 | ||||||
Management and advisory fees | 59 | ||||||
Transfer agent fees | 9 | ||||||
Administration fees | 1 | ||||||
Payable for collateral for securities on loan | 7,808 | ||||||
Other | 34 | ||||||
7,924 | |||||||
Net Assets | $ | 87,087 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 67,584 | |||||
Undistributed (accumulated) net investment income (loss) | 256 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities | 1,749 | ||||||
Net unrealized appreciation (depreciation) on investment securities | 17,498 | ||||||
Net Assets | $ | 87,087 | |||||
Net Assets by Class: | |||||||
Class A | $ | 10,137 | |||||
Class B | 11,122 | ||||||
Class C | 2,720 | ||||||
Class I | 63,108 | ||||||
Shares Outstanding: | |||||||
Class A | 1,034 | ||||||
Class B | 1,246 | ||||||
Class C | 307 | ||||||
Class I | 6,440 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 9.81 | |||||
Class B | 8.93 | ||||||
Class C | 8.86 | ||||||
Class I | 9.80 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 10.38 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $17) | $ | 865 | |||||
Interest | 50 | ||||||
Income from loaned securities–net | 3 | ||||||
918 | |||||||
Expenses: | |||||||
Management and advisory fees | 353 | ||||||
Transfer agent fees: | |||||||
Class A | 18 | ||||||
Class B | 20 | ||||||
Class C | 5 | ||||||
Printing and shareholder reports | 7 | ||||||
Custody fees | 11 | ||||||
Administration fees | 9 | ||||||
Legal fees | 1 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 2 | ||||||
Other | 1 | ||||||
Total expenses | 437 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (1 | ) | |||||
Class B | (1 | ) | |||||
Class C | (1 | ) | |||||
Total reimbursed expenses | (3 | ) | |||||
Net expenses | 434 | ||||||
Net Investment Income (Loss) | 484 | ||||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | 2,285 | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | 4,651 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 6,936 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 7,420 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 5
TA IDEX Legg Mason Partners Investors Value
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 484 | $ | 1,060 | |||||||
Net realized gain (loss) from investment securities | 2,285 | 17,756 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities | 4,651 | 360 | |||||||||
7,420 | 19,176 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (73 | ) | (62 | ) | |||||||
Class B | (70 | ) | (32 | ) | |||||||
Class C | (19 | ) | (8 | ) | |||||||
Class I | (730 | ) | (322 | ) | |||||||
(892 | ) | (424 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (1,984 | ) | (4,033 | ) | |||||||
Class B | (2,405 | ) | (6,299 | ) | |||||||
Class C | (608 | ) | (1,640 | ) | |||||||
Class I | (12,249 | ) | (32,188 | ) | |||||||
(17,246 | ) | (44,160 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 14 | 292 | |||||||||
Class B | 4 | 1,891 | |||||||||
Class C | 6 | 120 | |||||||||
Class I | – | 226,214 | |||||||||
24 | 228,517 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 2,014 | 4,016 | |||||||||
Class B | 2,396 | 6,142 | |||||||||
Class C | 591 | 1,518 | |||||||||
Class I | 12,979 | 32,510 | |||||||||
17,980 | 44,186 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (1,957 | ) | (174,854 | ) | |||||||
Class B | (2,073 | ) | (8,635 | ) | |||||||
Class C | (504 | ) | (2,475 | ) | |||||||
Class I | (8,000 | ) | (172,521 | ) | |||||||
(12,534 | ) | (358,485 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | – | (b) | ||||||||
Class C | – | – | (b) | ||||||||
– | – | (b) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 374 | $ | 533 | |||||||
Class B | (374 | ) | (533 | ) | |||||||
– | – | ||||||||||
5,470 | (85,782 | ) | |||||||||
Net increase (decrease) in net assets | (5,248 | ) | (111,190 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 92,335 | 203,525 | |||||||||
End of period | $ | 87,087 | $ | 92,335 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 256 | $ | 664 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 1 | 26 | |||||||||
Class B | 1 | 181 | |||||||||
Class C | 1 | 12 | |||||||||
Class I | – | 17,521 | |||||||||
3 | 17,740 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 217 | 403 | |||||||||
Class B | 282 | 668 | |||||||||
Class C | 70 | 166 | |||||||||
Class I | 1,394 | 3,284 | |||||||||
1,963 | 4,521 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (200 | ) | (12,273 | ) | |||||||
Class B | (226 | ) | (876 | ) | |||||||
Class C | (59 | ) | (249 | ) | |||||||
Class I | (853 | ) | (14,906 | ) | |||||||
(1,338 | ) | (28,304 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 38 | 50 | |||||||||
Class B | (42 | ) | (54 | ) | |||||||
(4 | ) | (4 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 56 | (11,794 | ) | ||||||||
Class B | 15 | (81 | ) | ||||||||
Class C | 12 | (71 | ) | ||||||||
Class I | 541 | 5,899 | |||||||||
624 | (6,047 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 6
TA IDEX Legg Mason Partners Investors Value
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 11.12 | $ | 0.04 | $ | 0.80 | $ | 0.84 | $ | (0.07 | ) | $ | (2.08 | ) | $ | (2.15 | ) | $ | 9.81 | |||||||||||||||||||
10/31/2006 | 14.17 | 0.11 | 1.73 | 1.84 | (0.03 | ) | (4.86 | ) | (4.89 | ) | 11.12 | ||||||||||||||||||||||||||||
10/31/2005 | 13.30 | 0.16 | 1.11 | 1.27 | (0.19 | ) | (0.21 | ) | (0.40 | ) | 14.17 | ||||||||||||||||||||||||||||
10/31/2004 | 12.51 | 0.10 | 1.09 | 1.19 | (0.10 | ) | (0.30 | ) | (0.40 | ) | 13.30 | ||||||||||||||||||||||||||||
10/31/2003 | 10.21 | 0.08 | 2.31 | 2.39 | (0.02 | ) | (0.07 | ) | (0.09 | ) | 12.51 | ||||||||||||||||||||||||||||
10/31/2002 | 12.55 | 0.04 | (2.10 | ) | (2.06 | ) | – | (0.28 | ) | (0.28 | ) | 10.21 | |||||||||||||||||||||||||||
Class B | 4/30/2007 | 10.30 | 0.04 | 0.73 | 0.77 | (0.06 | ) | (2.08 | ) | (2.14 | ) | 8.93 | |||||||||||||||||||||||||||
10/31/2006 | 13.48 | 0.05 | 1.65 | 1.70 | (0.02 | ) | (4.86 | ) | (4.88 | ) | 10.30 | ||||||||||||||||||||||||||||
10/31/2005 | 12.65 | – | (h) | 1.08 | 1.08 | (0.04 | ) | (0.21 | ) | (0.25 | ) | 13.48 | |||||||||||||||||||||||||||
10/31/2004 | 11.99 | 0.01 | 1.05 | 1.06 | (0.10 | ) | (0.30 | ) | (0.40 | ) | 12.65 | ||||||||||||||||||||||||||||
10/31/2003 | 9.84 | 0.01 | 2.23 | 2.24 | (0.02 | ) | (0.07 | ) | (0.09 | ) | 11.99 | ||||||||||||||||||||||||||||
10/31/2002 | 12.19 | (0.01 | ) | (2.06 | ) | (2.07 | ) | – | (0.28 | ) | (0.28 | ) | 9.84 | ||||||||||||||||||||||||||
Class C | 4/30/2007 | 10.24 | 0.04 | 0.72 | 0.76 | (0.06 | ) | (2.08 | ) | (2.14 | ) | 8.86 | |||||||||||||||||||||||||||
10/31/2006 | 13.43 | 0.05 | 1.64 | 1.69 | (0.02 | ) | (4.86 | ) | (4.88 | ) | 10.24 | ||||||||||||||||||||||||||||
10/31/2005 | 12.62 | – | (h) | 1.08 | 1.08 | (0.06 | ) | (0.21 | ) | (0.27 | ) | 13.43 | |||||||||||||||||||||||||||
10/31/2004 | 11.99 | (0.05 | ) | 1.08 | 1.03 | (0.10 | ) | (0.30 | ) | (0.40 | ) | 12.62 | |||||||||||||||||||||||||||
10/31/2003 | 9.77 | 0.01 | 2.30 | 2.31 | (0.02 | ) | (0.07 | ) | (0.09 | ) | 11.99 | ||||||||||||||||||||||||||||
Class I | 4/30/2007 | 11.15 | 0.06 | 0.79 | 0.85 | (0.12 | ) | (2.08 | ) | (2.20 | ) | 9.80 | |||||||||||||||||||||||||||
10/31/2006 | 14.35 | 0.12 | 1.59 | 1.71 | (0.05 | ) | (4.86 | ) | (4.91 | ) | 11.15 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 8.58 | % | $ | 10,137 | 1.21 | % | 1.23 | % | 0.87 | % | 6 | % | ||||||||||||||||||
10/31/2006 | 17.14 | 10,885 | 1.33 | 1.33 | 0.95 | (i) | 23 | ||||||||||||||||||||||||
10/31/2005 | 9.60 | 180,933 | 1.25 | 1.25 | 1.14 | (i) | 47 | ||||||||||||||||||||||||
10/31/2004 | 9.52 | 405,455 | 1.25 | 1.25 | 0.72 | 33 | |||||||||||||||||||||||||
10/31/2003 | 23.57 | 233,779 | 1.42 | 1.42 | 0.71 | 32 | |||||||||||||||||||||||||
10/31/2002 | (16.90 | ) | 46,960 | 1.55 | 1.91 | 0.56 | 101 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 8.52 | 11,122 | 1.21 | 1.24 | 0.87 | 6 | ||||||||||||||||||||||||
10/31/2006 | 17.02 | 12,677 | 1.57 | 1.58 | 0.49 | 23 | |||||||||||||||||||||||||
10/31/2005 | 8.53 | 17,684 | 2.20 | 2.24 | 0.02 | 47 | |||||||||||||||||||||||||
10/31/2004 | 8.82 | 20,463 | 1.86 | 1.86 | 0.11 | 33 | |||||||||||||||||||||||||
10/31/2003 | 22.93 | �� | 20,102 | 2.07 | 2.07 | 0.06 | 32 | ||||||||||||||||||||||||
10/31/2002 | (17.47 | ) | 16,980 | 2.20 | 2.56 | (0.09 | ) | 101 | |||||||||||||||||||||||
Class C | 4/30/2007 | 8.52 | 2,720 | 1.22 | 1.27 | 0.86 | 6 | ||||||||||||||||||||||||
10/31/2006 | 16.99 | 3,015 | 1.60 | 1.67 | 0.47 | (i) | 23 | ||||||||||||||||||||||||
10/31/2005 | 8.57 | 4,908 | 2.20 | 2.38 | 0.03 | (i) | 47 | ||||||||||||||||||||||||
10/31/2004 | 8.62 | 5,981 | 2.20 | 2.30 | (0.37 | ) | 33 | ||||||||||||||||||||||||
10/31/2003 | 23.81 | 797 | 2.07 | 2.07 | 0.05 | 32 | |||||||||||||||||||||||||
Class I | 4/30/2007 | 8.66 | 63,108 | 0.89 | 0.89 | 1.19 | 6 | ||||||||||||||||||||||||
10/31/2006 | 16.22 | 65,758 | 0.90 | 0.90 | 1.17 | 23 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 7
TA IDEX Legg Mason Partners Investors Value
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Rounds to less than $0.01.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 8
TA IDEX Legg Mason Partners Investors Value
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
Effective October 27, 2006, TA IDEX Salomon Investors Value was renamed to TA IDEX Legg Mason Partners Investors Value ("the Fund") and changed its sub-advisor from Salomon Brothers Asset Management Inc ("SaBAM") to ClearBridge Advisors, LLC.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Classes A, B, and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 9
TA IDEX Legg Mason Partners Investors Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
For the six months ended April 30, 2007, there were no recaptured commissions.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $1, earned by IBT for its services.
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.
Dividend income 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.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received no redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule represents the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Moderate Portfolio | $ | 139 | 0.16 | % | |||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 62,969 | 72.31 | % | ||||||||
Total | $ | 63,108 | 72.47 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 10
TA IDEX Legg Mason Partners Investors Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.20% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $41 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $12.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $6. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 5,330 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 16,794 | ||||||
U.S. Government | – |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 11
TA IDEX Legg Mason Partners Investors Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
These differences are primarily due to differing treatment for items including, but not limited to, wash sales and deferred compensation.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 12
TA IDEX Legg Mason Partners Investors Value
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Legg Mason Partners Investors Value (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and ClearBridge Advisors, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, a majority of the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including a majority of the independent members of the Board, unanimously approved the renewal of the Investment Advisor y Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relev ant. 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Board favorably noted the improved performance of the Fund, noting that its one-year performance record is competitive with its peer group of comparable funds. The Board also noted that Management would closely monitor the Fund for continued performance improvement. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment ob jective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Board expressed concern that the Fund's expenses were higher than its peer group of comparable funds . However, the Board noted that the Fund's contractual advisory fees are in line with its peer group. Moreover, the Board also noted that despite a flat sub-advisory fee schedule provided by the Sub-Adviser, which effectively precludes lower advisory fees or more significant advisory fee breakpoints, the Sub-Adviser is offering the Fund its most competitive fee rate. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements),
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 13
TA IDEX Legg Mason Partners Investors Value (continued)
TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current econo mic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that other benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" req uirements in particular. 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. In addition, the Trustees determined that the administration, fund accounting, and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. The Trustees also considered the recent change in control of the Sub-Adviser and its still ongoing reorganization within its new corporate group, as well as consequences of these changes on the Fund. In this regard, the Trustees took note of the recent improvement of the Fund's performance.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Legg Mason Partners Investors Value 14
TA IDEX Marsico Growth
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,083.50 | 1.23 | % | $ | 6.35 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,018.70 | 1.23 | 6.16 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,084.10 | 1.21 | 6.25 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.79 | 1.21 | 6.06 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,085.00 | 1.03 | 5.32 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,019.69 | 1.03 | 5.16 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,084.50 | 0.86 | 4.44 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.53 | 0.86 | 4.31 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHIC PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 1
TA IDEX Marsico Growth
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (94.5%) | |||||||||||
Aerospace (5.1%) | |||||||||||
Boeing Co. (The) | 54,914 | $ | 5,107 | ||||||||
General Dynamics Corp. | 63,456 | 4,981 | |||||||||
Lockheed Martin Corp. | 60,378 | 5,805 | |||||||||
Air Transportation (2.6%) | |||||||||||
FedEx Corp. | 77,452 | 8,167 | |||||||||
Amusement & Recreation Services (0.4%) | |||||||||||
Station Casinos, Inc. | 15,437 | 1,343 | |||||||||
Automotive (2.8%) | |||||||||||
Toyota Motor Corp., ADR | 72,992 | 8,863 | |||||||||
Beer, Wine & Distilled Beverages (1.5%) | |||||||||||
Heineken NV, ADR | 171,359 | 4,600 | |||||||||
Business Services (3.8%) | |||||||||||
Mastercard, Inc.–Class A † | 81,388 | 9,089 | |||||||||
Moody's Corp. | 43,154 | 2,853 | |||||||||
Chemicals & Allied Products (5.7%) | |||||||||||
Monsanto Co. | 150,794 | 8,895 | |||||||||
Praxair, Inc. | 21,597 | 1,394 | |||||||||
Procter & Gamble Co. | 115,599 | 7,434 | |||||||||
Commercial Banks (5.3%) | |||||||||||
China Merchants Bank Co., Ltd.–Class H ‡ | 720,500 | 1,774 | |||||||||
Citigroup, Inc. | 69,151 | 3,708 | |||||||||
Industrial & Commercial Bank of China–Class H ‡ | 13,158,000 | 7,217 | |||||||||
Wells Fargo & Co. | 104,416 | 3,748 | |||||||||
Communication (3.5%) | |||||||||||
Comcast Corp.–Class A ‡ | 405,844 | 10,820 | |||||||||
Computer & Data Processing Services (3.5%) | |||||||||||
Google, Inc.–Class A ‡ | 22,783 | 10,739 | |||||||||
Computer & Office Equipment (3.8%) | |||||||||||
Cisco Systems, Inc. ‡ | 440,563 | 11,781 | |||||||||
Department Stores (1.7%) | |||||||||||
Federated Department Stores, Inc. | 123,741 | 5,435 | |||||||||
Electric Services (0.3%) | |||||||||||
NRG Energy, Inc. †‡ | 11,765 | 929 | |||||||||
Electronic Components & Accessories (2.0%) | |||||||||||
Intel Corp. | 291,760 | 6,273 | |||||||||
Food & Kindred Products (1.2%) | |||||||||||
Kraft Foods, Inc.–Class A | 111,370 | 3,728 |
Shares | Value | ||||||||||
Hotels & Other Lodging Places (6.6%) | |||||||||||
Las Vegas Sands Corp. ‡ | 98,333 | $ | 8,377 | ||||||||
MGM Mirage, Inc. ‡ | 107,348 | 7,219 | |||||||||
Wynn Resorts, Ltd. † | 47,661 | 4,871 | |||||||||
Industrial Machinery & Equipment (0.5%) | |||||||||||
Cameron International Corp. ‡ | 23,524 | 1,519 | |||||||||
Insurance (6.4%) | |||||||||||
UnitedHealth Group, Inc. | 375,498 | 19,924 | |||||||||
Lumber & Other Building Materials (1.3%) | |||||||||||
Lowe's Cos., Inc. | 134,624 | 4,114 | |||||||||
Metal Mining (1.0%) | |||||||||||
Freeport-McMoRan Copper & Gold, Inc. | 44,721 | 3,004 | |||||||||
Motion Pictures (1.5%) | |||||||||||
News Corp., Inc.–Class A | 214,122 | 4,794 | |||||||||
Oil & Gas Extraction (2.9%) | |||||||||||
Schlumberger, Ltd. | 120,929 | 8,928 | |||||||||
Pharmaceuticals (6.6%) | |||||||||||
Amylin Pharmaceuticals, Inc. †‡ | 62,246 | 2,573 | |||||||||
Genentech, Inc. ‡ | 139,432 | 11,153 | |||||||||
Genzyme Corp. ‡ | 49,708 | 3,246 | |||||||||
Schering-Plough Corp. | 109,473 | 3,474 | |||||||||
Railroads (6.0%) | |||||||||||
Burlington Northern Santa Fe Corp. | 61,152 | 5,353 | |||||||||
Union Pacific Corp. | 115,752 | 13,225 | |||||||||
Real Estate (1.0%) | |||||||||||
CB Richard Ellis Group, Inc.–Class A ‡ | 67,485 | 2,284 | |||||||||
St. Joe Co. (The) † | 15,962 | 904 | |||||||||
Restaurants (2.5%) | |||||||||||
McDonald's Corp. | 18,368 | 887 | |||||||||
Starbucks Corp. ‡ | 98,966 | 3,070 | |||||||||
Yum! Brands, Inc. | 59,421 | 3,676 | |||||||||
Retail Trade (1.9%) | |||||||||||
Target Corp. | 101,689 | 6,037 | |||||||||
Security & Commodity Brokers (7.0%) | |||||||||||
Goldman Sachs Group, Inc. (The) | 49,686 | 10,862 | |||||||||
Lehman Brothers Holdings, Inc. | 60,738 | 4,572 | |||||||||
UBS AG–Registered | 99,037 | 6,428 | |||||||||
Telecommunications (6.1%) | |||||||||||
America Movil SAB de CV, Series L, ADR | 154,506 | 8,116 | |||||||||
AT&T, Inc. | 61,809 | 2,393 | |||||||||
China Mobile Hong Kong, Ltd. | 932,500 | 8,519 | |||||||||
Total Common Stocks (cost: $260,152) | 294,205 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 2
TA IDEX Marsico Growth
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (4.3%) | |||||||||||
Debt (4.3%) | |||||||||||
Bank Notes (0.3%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 416 | $ | 416 | |||||||
5.27%, due 06/18/2007 * | 416 | 416 | |||||||||
Commercial Paper (0.9%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 166 | 166 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 161 | 161 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 111 83 | 111 83 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 83 | 83 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 83 | 83 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 83 | 83 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 83 83 | 83 83 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 166 | 166 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 163 | 163 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 166 | 166 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 166 | 166 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 329 83 83 | 329 83 83 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 83 83 83 110 | 83 83 83 110 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 125 | 125 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 83 | 83 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 166 | 166 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | $ | 83 | $ | 83 | |||||||
Euro Dollar Overnight (0.5%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 83 | 83 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 166 | 166 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 166 | 166 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 166 | 166 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 167 | 167 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 167 | 167 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 167 | 167 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 83 | 83 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 167 | 167 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 316 | 316 | |||||||||
Euro Dollar Terms (1.6%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 167 | 167 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 83 | 83 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 117 | 117 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 167 167 83 83 167 | 167 167 83 83 167 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 83 167 | 83 167 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 250 83 | 250 83 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 167 | 167 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 167 | 167 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 3
TA IDEX Marsico Growth
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Fortis Bank | |||||||||||
5.28%, due 05/21/2007 | $ | 250 | $ | 250 | |||||||
5.28%, due 05/25/2007 | 250 | 250 | |||||||||
5.30%, due 06/25/2007 | 167 | 167 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 250 | 250 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 167 83 167 | 167 83 167 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 83 | 83 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 167 | 167 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 167 | 167 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 167 333 250 416 | 167 333 250 416 |
Principal | Value | ||||||||||
Repurchase Agreements (1.0%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $461 on 05/01/2007 | $ | 461 | $ | 461 | |||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $1,832 on 05/01/2007 | 1,832 | 1,832 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $802 on 05/01/2007 | 802 | 802 | |||||||||
Total Security Lending Collateral (cost: $13,351) | 13,351 | ||||||||||
Total Investment Securities (cost: $273,503) # | $ | 307,556 |
NOTES TO SCHEDULE OF INVESTMENTS:
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $13,024.
‡ Non-income producing.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $3,175, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $273,712. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $34,943 and $1,099, respectively. Net unrealized appreciation for tax purposes is $33,844.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $2,493 or 0.8% of the net assets of the Fund.
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 4
TA IDEX Marsico Growth
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $273,503) (including securities loaned of $13,024) | $ | 307,556 | |||||
Cash | 16,467 | ||||||
Receivables: | |||||||
Investment securities sold | 39 | ||||||
Shares of beneficial interest sold | 507 | ||||||
Interest | 61 | ||||||
Income from loaned securities | 2 | ||||||
Dividends | 160 | ||||||
Dividend reclaims receivable | 36 | ||||||
Other | 5 | ||||||
324,833 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 96 | ||||||
Management and advisory fees | 207 | ||||||
Transfer agent fees | 10 | ||||||
Administration fees | 5 | ||||||
Payable for collateral for securities on loan | 13,351 | ||||||
Other | 27 | ||||||
13,696 | |||||||
Net Assets | $ | 311,137 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 281,012 | |||||
Undistributed (accumulated) net investment income (loss) | 389 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | (4,317 | ) | |||||
Net unrealized appreciation (depreciation) on investment securities | 34,053 | ||||||
Net Assets | $ | 311,137 | |||||
Net Assets by Class: | |||||||
Class A | $ | 7,936 | |||||
Class B | 11,672 | ||||||
Class C | 7,867 | ||||||
Class I | 283,662 | ||||||
Shares Outstanding: | |||||||
Class A | 665 | ||||||
Class B | 1,028 | ||||||
Class C | 693 | ||||||
Class I | 23,650 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 11.94 | |||||
Class B | 11.35 | ||||||
Class C | 11.36 | ||||||
Class I | 11.99 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 12.63 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $36) | $ | 1,081 | |||||
Interest | 354 | ||||||
Income from loaned securities–net | 24 | ||||||
1,459 | |||||||
Expenses: | |||||||
Management and advisory fees | 823 | ||||||
Transfer agent fees: | |||||||
Class A | 16 | ||||||
Class B | 22 | ||||||
Class C | 7 | ||||||
Printing and shareholder reports | 7 | ||||||
Custody fees | 13 | ||||||
Administration fees | 21 | ||||||
Legal fees | 2 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 3 | ||||||
Other | 1 | ||||||
Total expenses | 925 | ||||||
Net Investment Income (Loss) | 534 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | (549 | ) | |||||
Foreign currency transactions | (1 | ) | |||||
(550 | ) | ||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 11,984 | ||||||
11,984 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 11,434 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 11,968 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 5
TA IDEX Marsico Growth
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 534 | $ | (166 | ) | ||||||
Net realized gain (loss) from investment securities and foreign currency transactions | (550 | ) | 8,867 | ||||||||
Change in unrealized appreciation (depreciation) on investment securities | 11,984 | 626 | |||||||||
11,968 | 9,327 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class I | (144 | ) | – | ||||||||
(144 | ) | – | |||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | – | 1,086 | |||||||||
Class B | 17 | 2,143 | |||||||||
Class C | – | 287 | |||||||||
Class I | 173,983 | 96,416 | |||||||||
174,000 | 99,932 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class I | 144 | – | |||||||||
144 | – | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (2,236 | ) | (98,268 | ) | |||||||
Class B | (2,607 | ) | (10,546 | ) | |||||||
Class C | (929 | ) | (4,902 | ) | |||||||
Class I | (168 | ) | – | ||||||||
(5,940 | ) | (113,716 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | – | (b) | ||||||||
Class B | – | 1 | |||||||||
Class C | – | – | (b) | ||||||||
– | 1 | ||||||||||
Automatic conversions: | |||||||||||
Class A | 95 | 104 | |||||||||
Class B | (95 | ) | (104 | ) | |||||||
– | – | ||||||||||
168,204 | (13,783 | ) | |||||||||
Net increase (decrease) in net assets | 180,028 | (4,456 | ) | ||||||||
Net Assets: | |||||||||||
Beginning of period | 131,109 | 135,565 | |||||||||
End of period | $ | 311,137 | $ | 131,109 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 389 | $ | (1 | ) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | – | 101 | |||||||||
Class B | 2 | 203 | |||||||||
Class C | – | 27 | |||||||||
Class I | 14,589 | 9,062 | |||||||||
14,591 | 9,393 | ||||||||||
Shares issued-reinvested from distributions: | |||||||||||
Class I | 13 | – | |||||||||
13 | – | ||||||||||
Shares redeemed: | |||||||||||
Class A | (193 | ) | (9,231 | ) | |||||||
Class B | (238 | ) | (1,022 | ) | |||||||
Class C | (84 | ) | (474 | ) | |||||||
Class I | (14 | ) | – | ||||||||
(529 | ) | (10,727 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 8 | 10 | |||||||||
Class B | (8 | ) | (10 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (185 | ) | (9,120 | ) | |||||||
Class B | (244 | ) | (829 | ) | |||||||
Class C | (84 | ) | (447 | ) | |||||||
Class I | 14,588 | 9,062 | |||||||||
14,075 | (1,334 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 6
TA IDEX Marsico Growth
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 11.02 | $ | 0.02 | $ | 0.90 | $ | 0.92 | $ | – | $ | – | $ | – | $ | 11.94 | ||||||||||||||||||||||
10/31/2006 | 10.32 | (0.05 | ) | 0.75 | 0.70 | – | – | – | 11.02 | ||||||||||||||||||||||||||||||
10/31/2005 | 9.15 | (0.03 | ) | 1.20 | 1.17 | – | – | – | 10.32 | ||||||||||||||||||||||||||||||
10/31/2004 | 8.97 | (0.05 | ) | 0.23 | 0.18 | – | – | – | 9.15 | ||||||||||||||||||||||||||||||
10/31/2003 | 7.56 | (0.08 | ) | 1.49 | 1.41 | – | – | – | 8.97 | ||||||||||||||||||||||||||||||
10/31/2002 | 9.10 | (0.06 | ) | (1.48 | ) | (1.54 | ) | – | – | – | 7.56 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 10.47 | 0.02 | 0.86 | 0.88 | – | – | – | 11.35 | ||||||||||||||||||||||||||||||
10/31/2006 | 9.83 | (0.07 | ) | 0.71 | 0.64 | – | – | – | 10.47 | ||||||||||||||||||||||||||||||
10/31/2005 | 8.80 | (0.12 | ) | 1.15 | 1.03 | – | – | – | 9.83 | ||||||||||||||||||||||||||||||
10/31/2004 | 8.68 | (0.10 | ) | 0.22 | 0.12 | – | – | – | 8.80 | ||||||||||||||||||||||||||||||
10/31/2003 | 7.36 | (0.12 | ) | 1.44 | 1.32 | – | – | – | 8.68 | ||||||||||||||||||||||||||||||
10/31/2002 | 8.92 | (0.11 | ) | (1.45 | ) | (1.56 | ) | – | – | – | 7.36 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 10.47 | 0.03 | 0.86 | 0.89 | – | – | – | 11.36 | ||||||||||||||||||||||||||||||
10/31/2006 | 9.81 | (0.05 | ) | 0.71 | 0.66 | – | – | – | 10.47 | ||||||||||||||||||||||||||||||
10/31/2005 | 8.78 | (0.11 | ) | 1.14 | 1.03 | – | – | – | 9.81 | ||||||||||||||||||||||||||||||
10/31/2004 | 8.68 | (0.12 | ) | 0.22 | 0.10 | – | – | – | 8.78 | ||||||||||||||||||||||||||||||
10/31/2003 | 7.18 | (0.12 | ) | 1.62 | 1.50 | – | – | – | 8.68 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 11.07 | 0.03 | 0.90 | 0.93 | (0.01 | ) | – | (0.01 | ) | 11.99 | ||||||||||||||||||||||||||||
10/31/2006 | 10.63 | 0.01 | 0.43 | 0.44 | – | – | – | 11.07 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 8.35 | % | $ | 7,936 | 1.23 | % | 1.23 | % | 0.28 | % | 9 | % | ||||||||||||||||||
10/31/2006 | 6.78 | 9,362 | 1.34 | 1.34 | (0.43 | ) (i) | 62 | ||||||||||||||||||||||||
10/31/2005 | 12.79 | 102,906 | 1.35 | (h) | 1.35 | (h) | (0.30 | ) | 74 | ||||||||||||||||||||||
10/31/2004 | 2.01 | 37,186 | 1.52 | 1.52 | (0.58 | ) | 85 | ||||||||||||||||||||||||
10/31/2003 | 18.65 | 34,167 | 1.75 | 1.80 | (0.97 | ) | 129 | ||||||||||||||||||||||||
10/31/2002 | (16.88 | ) | 5,752 | 1.73 | 2.05 | (0.56 | ) | 34 | |||||||||||||||||||||||
Class B | 4/30/2007 | 8.41 | 11,672 | 1.21 | 1.21 | 0.29 | 9 | ||||||||||||||||||||||||
10/31/2006 | 6.51 | 13,327 | 1.58 | 1.58 | (0.64 | ) (i) | 62 | ||||||||||||||||||||||||
10/31/2005 | 11.70 | 20,650 | 2.31 | (h) | 2.31 | (h) | (1.24 | ) (i) | 74 | ||||||||||||||||||||||
10/31/2004 | 1.38 | 19,792 | 2.13 | 2.13 | (1.19 | ) | 85 | ||||||||||||||||||||||||
10/31/2003 | 17.93 | 19,723 | 2.40 | 2.45 | (1.62 | ) | 129 | ||||||||||||||||||||||||
10/31/2002 | (17.52 | ) | 14,130 | 2.38 | 2.70 | (1.21 | ) | 34 | |||||||||||||||||||||||
Class C | 4/30/2007 | 8.50 | 7,867 | 1.03 | 1.03 | 0.46 | 9 | ||||||||||||||||||||||||
10/31/2006 | 6.73 | 8,140 | 1.46 | 1.46 | (0.52 | ) (i) | 62 | ||||||||||||||||||||||||
10/31/2005 | 11.69 | 12,009 | 2.26 | (h) | 2.26 | (h) | (1.20 | ) (i) | 74 | ||||||||||||||||||||||
10/31/2004 | 1.27 | 9,379 | 2.40 | 2.40 | (1.38 | ) | 85 | ||||||||||||||||||||||||
10/31/2003 | 20.89 | 1,200 | 2.40 | 2.46 | (1.62 | ) | 129 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 8.45 | 283,662 | 0.86 | 0.86 | 0.55 | 9 | ||||||||||||||||||||||||
10/31/2006 | 4.14 | 100,280 | 0.89 | 0.89 | 0.07 | 62 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 7
TA IDEX Marsico Growth
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Ratios of Total Expenses to Average Net Assets and net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment adviser, if any. The impact of recaptured expenses was 0.03%, 0.03% and 0.03% for Class A, Class B and Class C, respectively (see Note 2).
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 8
TA IDEX Marsico Growth
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Marsico Growth (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Classes A, B, and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 9
TA IDEX Marsico Growth
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
Recaptured commissions during the six months ended April 30, 2007 of $6 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $10, earned by IBT for its services.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received no redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 12,110 | 3.89 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 87,028 | 27.97 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 78,699 | 25.29 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 105,825 | 34.01 | % | ||||||||
Total | $ | 283,662 | 91.16 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.40% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 10
TA IDEX Marsico Growth
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $42 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all defer red fees in the Plan amounted, as of April 30, 2007, to $5.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $8. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 176,897 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 18,390 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, net operating losses and capital loss carryforwards.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 11
TA IDEX Marsico Growth
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 4.–(continued)
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 3,698 | October 31, 2011 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 12
TA IDEX Marsico Growth
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Marsico Growth (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Columbia Management Advisors, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement . The Board's vote was unanimous, with the exception of a Trustee who abstained from voting on either Agreement because of prior business associations with the Sub-Adviser's corporate parent. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment perfor mance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser generally had achieved relatively strong performance and noted that the Fund's performance was above median relative to comparable funds over each of the past one-, two-, three- and five year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund generally are consistent with industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 13
TA IDEX Marsico Growth (continued)
affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current econo mic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requiremen ts in particular. 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. In addition, the Trustees determined that the administration, fund accounting and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Marsico Growth 14
TA IDEX MFS International Equity
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,141.80 | 1.47 | % | $ | 7.81 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.50 | 1.47 | 7.35 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,142.20 | 1.48 | 7.86 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,017.46 | 1.48 | 7.40 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,142.20 | 1.43 | 7.60 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,017.70 | 1.43 | 7.15 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by region of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 1
TA IDEX MFS International Equity
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (99.7%) | |||||||||||
Australia (0.8%) | |||||||||||
QBE Insurance Group, Ltd. | 9,850 | $ | 253 | ||||||||
Austria (1.0%) | |||||||||||
Erste Bank der Oesterreichischen Sparkassen AG | 4,020 | 324 | |||||||||
Bermuda (0.9%) | |||||||||||
Li & Fung, Ltd. | 86,000 | 270 | |||||||||
Canada (0.9%) | |||||||||||
Canadian National Railway Co. | 5,890 | 296 | |||||||||
Czech Republic (0.7%) | |||||||||||
Komercni Banka AS | 1,148 | 216 | |||||||||
France (23.4%) | |||||||||||
Air Liquide | 3,610 | 900 | |||||||||
AXA | 19,320 | 895 | |||||||||
Credit Agricole SA | 15,780 | 669 | |||||||||
Gaz De France | 6,100 | 288 | |||||||||
Legrand Promesses | 10,170 | 348 | |||||||||
L'Oreal SA | 2,300 | 277 | |||||||||
LVMH Moet Hennessy Louis Vuitton SA | 7,770 | 912 | |||||||||
Pernod-Ricard | 3,116 | 667 | |||||||||
Sanofi-Aventis | 5,480 | 505 | |||||||||
Schneider Electric SA | 7,100 | 1,008 | |||||||||
Total SA | 10,100 | 751 | |||||||||
Vivendi Universal SA | 6,560 | 272 | |||||||||
Germany (7.0%) | |||||||||||
Bayer AG | 10,510 | 723 | |||||||||
Bayerische Motoren Werke AG | 5,300 | 328 | |||||||||
Continental AG | 2,031 | 284 | |||||||||
E.ON AG | 6,080 | 915 | |||||||||
Indonesia (0.5%) | |||||||||||
Bank Central Asia Tbk PT | 266,000 | 155 | |||||||||
Italy (1.4%) | |||||||||||
Assicurazioni Generali SpA | 3,480 | 161 | |||||||||
Intesa Sanpaolo SpA ‡ | 34,738 | 293 | |||||||||
Japan (17.6%) | |||||||||||
Aeon Credit Service Co., Ltd. | 12,100 | 201 | |||||||||
Asahi Glass Co., Ltd. | 27,000 | 363 | |||||||||
Bridgestone Corp. | 12,400 | 251 | |||||||||
Canon, Inc. | 12,300 | 690 | |||||||||
Fanuc, Ltd. | 3,400 | 333 | |||||||||
Hirose Electric Co., Ltd. | 1,300 | 158 | |||||||||
Kao Corp. | 30,000 | 823 | |||||||||
Nintendo Co., Ltd. | 900 | 281 | |||||||||
Nomura Holdings, Inc. | 24,000 | 459 |
Shares | Value | ||||||||||
Japan (continued) | |||||||||||
Omron Corp. | 10,800 | $ | 289 | ||||||||
Ricoh Co., Ltd. | 23,000 | 505 | |||||||||
Shinsei Bank, Ltd. | 45,000 | 194 | |||||||||
Shizuoka Bank, Ltd. | 18,000 | 190 | |||||||||
Tokyo Gas Co., Ltd. | 41,000 | 206 | |||||||||
Toyota Motor Corp. | 11,400 | 692 | |||||||||
Netherlands (1.2%) | |||||||||||
TNT NV | 8,670 | 393 | |||||||||
Singapore (1.2%) | |||||||||||
Singapore Telecommunications, Ltd. | 168,150 | 367 | |||||||||
South Korea (2.5%) | |||||||||||
Samsung Electronics Co., Ltd. | 1,283 | 791 | |||||||||
Spain (0.9%) | |||||||||||
Banco Bilbao Vizcaya Argentaria SA | 12,410 | 299 | |||||||||
Sweden (0.7%) | |||||||||||
Telefonaktiebolaget LM Ericsson–Class B | 59,790 | 232 | |||||||||
Switzerland (17.3%) | |||||||||||
Actelion NV ‡ | 810 | 193 | |||||||||
Givaudan | 360 | 339 | |||||||||
Julius Baer Holding AG | 7,600 | 535 | |||||||||
Nestle SA | 3,409 | 1,355 | |||||||||
Roche Holding AG-Genusschein | 6,360 | 1,203 | |||||||||
Swiss Reinsurance (a) | 7,450 | 705 | |||||||||
Synthes, Inc. | 1,490 | 196 | |||||||||
UBS AG-Registered | 15,340 | 1,006 | |||||||||
Thailand (0.4%) | |||||||||||
Bangkok Bank PCL-(Foreign Registered) | 41,700 | 136 | |||||||||
United Kingdom (21.3%) | |||||||||||
BG Group PLC | 23,080 | 335 | |||||||||
BHP Billiton PLC | 12,430 | 281 | |||||||||
Diageo PLC | 33,190 | 703 | |||||||||
GlaxoSmithKline PLC | 28,300 | 820 | |||||||||
HSBC Holdings PLC | 21,140 | 392 | |||||||||
Ladbrokes PLC | 46,100 | 377 | |||||||||
Next PLC | 5,460 | 256 | |||||||||
Reckitt Benckiser PLC | 18,990 | 1,045 | |||||||||
Royal Dutch Shell PLC–Class A | 14,420 | 505 | |||||||||
Smiths Group PLC | 22,150 | 481 | |||||||||
Tesco PLC | 34,040 | 315 | |||||||||
William Hill PLC | 56,100 | 674 | |||||||||
WPP Group PLC | 42,530 | 634 | |||||||||
Total Common Stocks (cost: $26,642) | 31,913 | ||||||||||
Total Investment Securities (cost: $26,642) # | $ | 31,913 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 2
TA IDEX MFS International Equity
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
(a) Passive Foreign Investment Company.
# Aggregate cost for federal income tax purposes is $26,829. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $5,313 and $229, respectively. Net unrealized appreciation for tax purposes is $5,084.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 3
TA IDEX MFS International Equity
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Percentage of Net Assets | Value | ||||||||||
INVESTMENTS BY INDUSTRY: | |||||||||||
Chemicals & Allied Products | 12.8 | % | $ | 4,107 | |||||||
Commercial Banks | 10.6 | % | 3,402 | ||||||||
Pharmaceuticals | 8.5 | % | 2,721 | ||||||||
Beverages | 7.1 | % | 2,281 | ||||||||
Security & Commodity Brokers | 4.6 | % | 1,465 | ||||||||
Oil & Gas Extraction | 4.3 | % | 1,366 | ||||||||
Food & Kindred Products | 4.2 | % | 1,355 | ||||||||
Computer & Office Equipment | 3.7 | % | 1,195 | ||||||||
Electronic Components & Accessories | 3.5 | % | 1,128 | ||||||||
Insurance | 3.5 | % | 1,119 | ||||||||
Business Services | 3.5 | % | 1,115 | ||||||||
Amusement & Recreation Services | 3.3 | % | 1,052 | ||||||||
Automotive | 3.2 | % | 1,020 | ||||||||
Industrial Machinery & Equipment | 3.2 | % | 1,008 | ||||||||
Electric Services | 2.9 | % | 915 | ||||||||
Life Insurance | 2.8 | % | 895 | ||||||||
Electronic & Other Electric Equipment | 2.5 | % | 791 | ||||||||
Rubber & Misc. Plastic Products | 1.7 | % | 535 | ||||||||
Petroleum Refining | 1.6 | % | 505 | ||||||||
Gas Production & Distribution | 1.5 | % | 494 | ||||||||
Transportation & Public Utilities | 1.2 | % | 393 | ||||||||
Telecommunications | 1.1 | % | 367 | ||||||||
Lumber & Other Building Materials | 1.1 | % | 363 | ||||||||
Food Stores | 1.0 | % | 315 | ||||||||
Railroads | 0.9 | % | 296 | ||||||||
Manufacturing Industries | 0.9 | % | 281 | ||||||||
Radio & Television Broadcasting | 0.9 | % | 272 | ||||||||
Transportation Equipment | 0.9 | % | 271 | ||||||||
Apparel & Accessory Stores | 0.8 | % | 257 | ||||||||
Communications Equipment | 0.7 | % | 232 | ||||||||
Personal Credit Institutions | 0.6 | % | 201 | ||||||||
Medical Instruments & Supplies | 0.6 | % | 196 | ||||||||
Investment Securities, at value | 99.7 | % | 31,913 | ||||||||
Total Investment Securities | 99.7 | % | $ | 31,913 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 4
TA IDEX MFS International Equity
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $26,642) | $ | 31,913 | |||||
Receivables: | |||||||
Investment securities sold | 74 | ||||||
Interest | 1 | ||||||
Dividends | 108 | ||||||
Dividend reclaims receivable | 54 | ||||||
Other | 7 | ||||||
32,157 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 54 | ||||||
Management and advisory fees | 25 | ||||||
Deferred foreign taxes | 1 | ||||||
Transfer agent fees | 14 | ||||||
Administration fees | 1 | ||||||
Due to custodian | 7 | ||||||
Other | 37 | ||||||
139 | |||||||
Net Assets | $ | 32,018 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 28,686 | |||||
Undistributed (accumulated) net investment income (loss) | (546 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | (1,397 | ) | |||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | 5,270 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 5 | ||||||
Net Assets | $ | 32,018 | |||||
Net Assets by Class: | |||||||
Class A | $ | 11,225 | |||||
Class B | 15,149 | ||||||
Class C | 5,644 | ||||||
Shares Outstanding: | |||||||
Class A | 2,384 | ||||||
Class B | 3,725 | ||||||
Class C | 1,422 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 4.71 | |||||
Class B | 4.07 | ||||||
Class C | 3.97 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 4.98 |
(a) 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 and C shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $33) | $ | 328 | |||||
Interest | 3 | ||||||
331 | |||||||
Expenses: | |||||||
Management and advisory fees | 151 | ||||||
Transfer agent fees: | |||||||
Class A | 26 | ||||||
Class B | 35 | ||||||
Class C | 9 | ||||||
Printing and shareholder reports | 13 | ||||||
Custody fees | 47 | ||||||
Administration fees | 3 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 1 | ||||||
Other | 1 | ||||||
Total expenses | 296 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (21 | ) | |||||
Class B | (28 | ) | |||||
Class C | (8 | ) | |||||
Total reimbursed expenses | (57 | ) | |||||
Net expenses | 239 | ||||||
Net Investment Income (Loss) | 92 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities (net of foreign capital gains tax of $1) | 1,778 | ||||||
Foreign currency transactions | (23 | ) | |||||
1,755 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities (net of foreign capital gains tax accrual of $1) | 2,531 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 1 | ||||||
2,532 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 4,287 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 4,379 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 5
TA IDEX MFS International Equity
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 92 | $ | 131 | |||||||
Net realized gain (loss) from investment securities and foreign currency transactions | 1,755 | 19,277 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation | 2,532 | (7,441 | ) | ||||||||
4,379 | 11,967 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (248 | ) | (106 | ) | |||||||
Class B | (348 | ) | (155 | ) | |||||||
Class C | (134 | ) | (64 | ) | |||||||
Class I | – | (189 | ) | ||||||||
(730 | ) | (514 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (5,481 | ) | (4,776 | ) | |||||||
Class B | (8,185 | ) | (7,874 | ) | |||||||
Class C | (3,159 | ) | (3,241 | ) | |||||||
Class I | – | (8,013 | ) | ||||||||
(16,825 | ) | (23,904 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 8 | 465 | |||||||||
Class B | 73 | 355 | |||||||||
Class C | 132 | 303 | |||||||||
Class I | – | 54,442 | |||||||||
213 | 55,565 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 5,688 | 4,834 | |||||||||
Class B | 8,274 | 7,686 | |||||||||
Class C | 3,094 | 3,056 | |||||||||
Class I | – | 8,202 | |||||||||
17,056 | 23,778 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (1,966 | ) | (59,776 | ) | |||||||
Class B | (2,727 | ) | (8,983 | ) | |||||||
Class C | (1,166 | ) | (4,356 | ) | |||||||
Class I | – | (57,455 | ) | ||||||||
(5,859 | ) | (130,570 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | – | (b) | ||||||||
Class B | – | – | (b) | ||||||||
Class C | – | (b) | – | ||||||||
– | (b) | – | (b) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 108 | $ | 173 | |||||||
Class B | (108 | ) | (173 | ) | |||||||
– | – | ||||||||||
11,410 | (51,227 | ) | |||||||||
Net increase (decrease) in net assets | (1,766 | ) | (63,678 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 33,784 | 97,462 | |||||||||
End of period | $ | 32,018 | $ | 33,784 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (546 | ) | $ | 92 | ||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 2 | 59 | |||||||||
Class B | 20 | 46 | |||||||||
Class C | 36 | 44 | |||||||||
Class I | – | 5,373 | |||||||||
58 | 5,522 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 1,317 | 699 | |||||||||
Class B | 2,218 | 1,196 | |||||||||
Class C | 850 | 481 | |||||||||
Class I | – | 1,189 | |||||||||
4,385 | 3,565 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (395 | ) | (6,059 | ) | |||||||
Class B | (632 | ) | (1,262 | ) | |||||||
Class C | (286 | ) | (618 | ) | |||||||
Class I | – | (6,562 | ) | ||||||||
(1,313 | ) | (14,501 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 23 | 22 | |||||||||
Class B | (27 | ) | (24 | ) | |||||||
(4 | ) | (2 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 947 | (5,279 | ) | ||||||||
Class B | 1,579 | (44 | ) | ||||||||
Class C | 600 | (93 | ) | ||||||||
Class I | – | – | |||||||||
3,126 | (5,416 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 6
TA IDEX MFS International Equity
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 8.07 | $ | 0.01 | $ | 0.76 | $ | 0.77 | $ | (0.18 | ) | $ | (3.95 | ) | $ | (4.13 | ) | $ | 4.71 | |||||||||||||||||||
10/31/2006 | 10.07 | 0.03 | 1.76 | 1.79 | (0.08 | ) | (3.71 | ) | (3.79 | ) | 8.07 | ||||||||||||||||||||||||||||
10/31/2005 | 8.81 | 0.03 | 1.30 | 1.33 | (0.07 | ) | – | (0.07 | ) | 10.07 | |||||||||||||||||||||||||||||
10/31/2004 | 8.03 | – | (h) | 0.80 | 0.80 | (0.02 | ) | – | (0.02 | ) | 8.81 | ||||||||||||||||||||||||||||
10/31/2003 | 7.00 | 0.02 | 1.01 | 1.03 | – | – | – | 8.03 | |||||||||||||||||||||||||||||||
10/31/2002 | 8.38 | 0.01 | (1.39 | ) | (1.38 | ) | – | – | – | 7.00 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 7.50 | 0.01 | 0.68 | 0.69 | (0.17 | ) | (3.95 | ) | (4.12 | ) | 4.07 | |||||||||||||||||||||||||||
10/31/2006 | 9.62 | 0.01 | 1.65 | 1.66 | (0.07 | ) | (3.71 | ) | (3.78 | ) | 7.50 | ||||||||||||||||||||||||||||
10/31/2005 | 8.41 | – | (h) | 1.21 | 1.21 | – | (h) | – | – | 9.62 | |||||||||||||||||||||||||||||
10/31/2004 | 7.70 | (0.04 | ) | 0.77 | 0.73 | (0.02 | ) | – | (0.02 | ) | 8.41 | ||||||||||||||||||||||||||||
10/31/2003 | 6.76 | (0.03 | ) | 0.97 | 0.94 | – | – | – | 7.70 | ||||||||||||||||||||||||||||||
10/31/2002 | 8.15 | (0.04 | ) | (1.35 | ) | (1.39 | ) | – | – | – | 6.76 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 7.41 | 0.01 | 0.67 | 0.68 | (0.17 | ) | (3.95 | ) | (4.12 | ) | 3.97 | |||||||||||||||||||||||||||
10/31/2006 | 9.55 | 0.01 | 1.63 | 1.64 | (0.07 | ) | (3.71 | ) | (3.78 | ) | 7.41 | ||||||||||||||||||||||||||||
10/31/2005 | 8.40 | – | (h) | 1.20 | 1.20 | (0.05 | ) | – | (0.05 | ) | 9.55 | ||||||||||||||||||||||||||||
10/31/2004 | 7.70 | (0.09 | ) | 0.81 | 0.72 | (0.02 | ) | – | (0.02 | ) | 8.40 | ||||||||||||||||||||||||||||
10/31/2003 | 6.73 | (0.03 | ) | 1.00 | 0.97 | – | – | – | 7.70 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 14.18 | % | $ | 11,225 | 1.47 | % | 1.85 | % | 0.56 | % | 12 | % | ||||||||||||||||||
10/31/2006 | 24.04 | 11,604 | 1.48 | 1.92 | 0.39 | (i) | 131 | ||||||||||||||||||||||||
10/31/2005 | 15.17 | 67,656 | 1.56 | 1.56 | 0.36 | (i) | 82 | ||||||||||||||||||||||||
10/31/2004 | 9.95 | 187,608 | 1.59 | 1.59 | (0.05 | ) | 159 | ||||||||||||||||||||||||
10/31/2003 | 14.71 | 152,086 | 1.78 | 2.39 | 0.23 | 220 | |||||||||||||||||||||||||
10/31/2002 | (16.49 | ) | 14,921 | 1.87 | 3.68 | 0.22 | 241 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 14.22 | 15,149 | 1.48 | 1.84 | 0.55 | 12 | ||||||||||||||||||||||||
10/31/2006 | 23.78 | 16,091 | 1.69 | 2.20 | 0.17 | (i) | 131 | ||||||||||||||||||||||||
10/31/2005 | 14.41 | 21,069 | 2.34 | 2.72 | (0.01 | ) (i) | 82 | ||||||||||||||||||||||||
10/31/2004 | 9.46 | 20,153 | 2.09 | 2.09 | (0.46 | ) | 159 | ||||||||||||||||||||||||
10/31/2003 | 13.91 | 21,421 | 2.44 | 3.05 | (0.42 | ) | 220 | ||||||||||||||||||||||||
10/31/2002 | (17.09 | ) | 5,328 | 2.52 | 4.33 | (0.43 | ) | 241 | |||||||||||||||||||||||
Class C | 4/30/2007 | 14.22 | 5,644 | 1.43 | 1.71 | 0.58 | (i) | 12 | |||||||||||||||||||||||
10/31/2006 | 23.77 | 6,089 | 1.70 | 2.08 | 0.17 | 131 | |||||||||||||||||||||||||
10/31/2005 | 14.36 | 8,737 | 2.34 | 2.70 | (0.01 | ) (i) | 82 | ||||||||||||||||||||||||
10/31/2004 | 9.33 | 9,166 | 2.40 | 2.49 | (1.07 | ) | 159 | ||||||||||||||||||||||||
10/31/2003 | 14.41 | 568 | 2.44 | 3.04 | (0.42 | ) | 220 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 7
TA IDEX MFS International Equity
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2.)
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX MFS International Equity commenced operations on February 1, 1997. The inception date for the Fund's offering of share Class C was November 11, 2002.
(h) Rounds to less than $0.01 per share.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 8
TA IDEX MFS International Equity
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
Effective July 3, 2006, TA IDEX American Century International changed its name to TA IDEX MFS International Equity (the "Fund") and changed its sub-adviser from American Century Global Investment Management, Inc. to MFS Investment Management.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has three classes of shares, Class A, Class B and Class C, each with different expense levels. Currently all share classes are closed to new investors. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Committee , using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of less than $1, earned by IBT for its services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 9
TA IDEX MFS International Equity
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
Foreign capital gains taxes: The Fund may be subject to taxes imposed by countries in which it invests, with respect to its investment 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 Fund accrues 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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.925% of the first $250 million of ANA
0.90% of the next $250 million of ANA
0.85% of the next $500 million of ANA
0.80% of ANA over $1 billion
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.32% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 10
TA IDEX MFS International Equity
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $69 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $7.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $3. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 3,967 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 10,195 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, foreign currency transactions, passive foreign investment companies and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 3,138 | October 31, 2010 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 11
TA IDEX MFS International Equity
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
adverse impact on it is remote. It is important to note that the Fund is not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginn ing after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 12
TA IDEX MFS International Equity
INVESTMENT ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX MFS International Equity (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and MFS Investment Management ("MFS") to determine whether the agreements should be renewed for a one-year period. The Board noted that it had recently approved an Investment Sub-Advisory Agreement between TFAI and MFS to appoint MFS to replace American Century Global Investment Management, Inc. ("American Century") as sub-adviser to the Fund for an initial two-year period at a meeting of the Board held on April 4 and 5, 2006. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and MFS such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI, MFS and American Century (such as in-person presentations by MFS and American Century) 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment A dvisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI, MFS and American Century to the Fund in the past, as well as the services anticipated to be provided by TFAI and MFS in the future. The Board noted the competitive fees and expenses for the Fund and the strongly improved performance of the Fund since MFS became sub-adviser. The Board concluded that TFAI and MFS are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and MFS's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and MFS, TFAI's management oversight process , the professional qualifications and experience of MFS's portfolio management team, and the Fund's investment performance. The Trustees also concluded that TFAI and MFS proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and MFS's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner. In addition, the Board discussed the likelihood that MFS may be sold by its parent company, and the potential consequences of such a change on the day-to-day management of the Fund, and concluded t hat the Board should evaluate the expected impact of such a transaction once the final terms of the transaction are established.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, noting the below-average performance over various trailing periods ended June 30, 2006. However, the Board also considered the recent change of sub-adviser and changes to the Fund's investment program, designed to improve performance. The Board noted the Fund's strongly improved performance since MFS became the Fund's sub-adviser. On the basis of its assessment of the nature, extent and quality of the investment advisory services to be provided or procured by TFAI, the Board concluded that TFAI and MFS are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that perform ance records of TFAI and MFS indicate that its management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 13
TA IDEX MFS International Equity (continued)
ratio of the Fund generally are competitive with industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of MFS, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and MFS's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and MFS.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedules appropriately benefits investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. However, the Board also noted that the Fund is closed to new investors and investments, and that this may limit the Fund's ability to realize economies of scale. 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 TFAI, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or MFS from their relationship with the Fund. The Board noted that it receives quarterly reports on MFS's brokerage practices, including the soft-dollar benefits it receives. The Board concluded that other benefits derived by TFAI, its affiliates, and MFS from their relationship with the Fund, including "soft-dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that MFS's "soft-dollar" arrangements are consistent with applicable law, including "best execution" requirements in particular. In addition, the Tru stees determined that the administration, fund accounting and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of MFS. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX MFS International Equity 14
TA IDEX Multi-Manager Alternative Strategies Fund
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at December 28, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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. The expenses shown in the table do not reflect any expenses from the Fund's investment in other affiliated investment companies. The average weighted annualized expense ratio of the underlying investment companies at April 30, 2007, was 1.02%.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,027.00 | 0.90 | % | $ | 3.07 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,013.82 | 0.90 | 3.05 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,025.00 | 1.55 | 5.29 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,011.63 | 1.55 | 5.25 |
(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 number of days in the period (123 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Investment Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the aggregate portfolio holdings of the underlying affiliated investment companies in which the Fund invests. The security lending collateral in the underlying funds is excluded from this calculation.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 1
TA IDEX Multi-Manager Alternative Strategies Fund
SCHEDULE OF INVESTMENTS ø
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
INVESTMENT COMPANIES (94.5%) | |||||||||||
Capital Preservation (20.3%) | |||||||||||
TA IDEX Loomis Sayles Bond | 403,676 | $ | 4,113 | ||||||||
TA IDEX Transamerica Money Market | 1,202,068 | 1,202 | |||||||||
Foreign Fixed-Income (10.2%) | |||||||||||
TA IDEX JPMorgan International Bond | 252,658 | 2,668 | |||||||||
Growth & Income (10.2%) | |||||||||||
TA IDEX UBS Dynamic Alpha ‡ | 269,139 | 2,689 | |||||||||
Growth Equity (32.7%) | |||||||||||
TA IDEX Bjurman, Barry Micro Emerging Growth ‡ | 65,811 | 729 | |||||||||
TA IDEX BlackRock Natural Resources ‡ | 206,786 | 2,306 | |||||||||
TA IDEX Federated Market Opportunity | 290,421 | 2,747 | |||||||||
TA IDEX Mellon Market Neutral Strategy ‡ | 277,540 | 2,800 | |||||||||
Specialty–Real Estate (8.3%) | |||||||||||
TA IDEX Clarion Global Real Estate Securities | 106,099 | 2,170 | |||||||||
World Equity (12.8%) | |||||||||||
TA IDEX BlackRock Global Allocation | 135,426 | 1,601 | |||||||||
TA IDEX Evergreen International Small Cap | 59,288 | 1,010 | |||||||||
TA IDEX Oppenheimer Developing Markets | 57,655 | 754 | |||||||||
Total Investment Companies (cost: $24,446) # | $ | 24,789 |
NOTES TO SCHEDULE OF INVESTMENTS:
ø The Fund invests its assets in Class I shares of the affiliated Transamerica IDEX Mutual Funds.
‡ Non-income producing.
# Aggregate cost for federal income tax purposes is $24,446. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $390 and $47, respectively. Net unrealized appreciation for tax purposes is $343.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 2
TA IDEX Multi-Manager Alternative Strategies Fund
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment in affiliated investment companies at value (cost: $24,446) | $ | 24,789 | |||||
Receivables: | |||||||
Shares of beneficial interest sold | 1,896 | ||||||
Dividends | 2 | ||||||
Due from investment advisor | 24 | ||||||
Prepaid expenses | 66 | ||||||
26,777 | |||||||
Liabilities: | |||||||
Investment securities purchased | 537 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 1 | ||||||
Distribution and service fees | 12 | ||||||
550 | |||||||
Net Assets | $ | 26,227 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 25,893 | |||||
Undistributed (accumulated) net investment income (loss) | (9 | ) | |||||
Net unrealized appreciation (depreciation) on investment in affiliated investment companies | 343 | ||||||
Net Assets | $ | 26,227 | |||||
Net Assets by Class: | |||||||
Class A | $ | 12,153 | |||||
Class C | 14,074 | ||||||
Shares Outstanding: | |||||||
Class A | 1,183 | ||||||
Class C | 1,373 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 10.27 | |||||
Class C | 10.25 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 10.87 |
(a) 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 Class C share represents offering price. The redemption price for Class C share equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007 (b)
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends from affiliated investment companies | $ | 32 | |||||
Expenses: | |||||||
Management and advisory fees | 6 | ||||||
Distribution and service fees: | |||||||
Class A | 5 | ||||||
Class C | 18 | ||||||
Transfer agent fees: | |||||||
Class A | 1 | ||||||
Class C | 2 | ||||||
Printing and shareholder reports | 5 | ||||||
Custody fees | 7 | ||||||
Legal fees | 5 | ||||||
Audit fees | 8 | ||||||
Trustees fees | 1 | ||||||
Registration fees | 17 | ||||||
Other | 1 | ||||||
Total expenses | 76 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (14 | ) | |||||
Class C | (21 | ) | |||||
Total reimbursed expenses | (35 | ) | |||||
Net expenses | 41 | ||||||
Net Investment Income (Loss) | (9 | ) | |||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies: | |||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment in affiliated investment companies | 343 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies | 343 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 334 |
(b) Commenced operations on December 28, 2006.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 3
TA IDEX Multi-Manager Alternative Strategies Fund
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
April 30, 2007 (unaudited) (a) | |||||||
Increase (Decrease) In Net Assets From: | |||||||
Operations: | |||||||
Net investment income (loss) | $ | (9 | ) | ||||
Change in unrealized appreciation (depreciation) on investment in affiliated investment companies | 343 | ||||||
334 | |||||||
Capital Share Transactions: | |||||||
Proceeds from shares sold: | |||||||
Class A | 12,269 | ||||||
Class C | 14,039 | ||||||
26,308 | |||||||
Cost of shares redeemed: | |||||||
Class A | (254 | ) | |||||
Class C | (161 | ) | |||||
(415 | ) | ||||||
25,893 | |||||||
Net increase (decrease) in net assets | 26,227 | ||||||
Net Assets: | |||||||
Beginning of period | – | ||||||
End of period | $ | 26,227 | |||||
Undistributed (accumulated) net investment income (loss) | $ | (9 | ) | ||||
Share Activity: | |||||||
Shares issued: | |||||||
Class A | 1,208 | ||||||
Class C | 1,389 | ||||||
2,597 | |||||||
Shares redeemed: | |||||||
Class A | (25 | ) | |||||
Class C | (16 | ) | |||||
(41 | ) | ||||||
Net increase (decrease) in shares outstanding: | |||||||
Class A | 1,183 | ||||||
Class C | 1,373 | ||||||
2,556 |
(a) Commenced operations on December 28, 2006.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 4
TA IDEX Multi-Manager Alternative Strategies Fund
FINANCIAL HIGHLIGHTS
(unaudited)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 10.00 | $ | – | (j) | $ | 0.27 | $ | 0.27 | $ | – | $ | – | $ | – | $ | 10.27 | |||||||||||||||||||||
Class C | 4/30/2007 | 10.00 | (0.02 | ) | 0.27 | 0.25 | – | – | – | 10.25 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a)(i) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a)(h) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 2.70 | % | $ | 12,153 | 0.90 | % | 1.88 | % | 0.10 | % | – | % | ||||||||||||||||||
Class C | 4/30/2007 | 2.50 | 14,074 | 1.55 | 2.67 | 0.56 | – |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding,
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see Note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Multi-Manager Alternative Strategies Fund ("the Fund") commenced operations on December 28, 2006.
(h) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(i) Does not include expenses of the investment companies in which the Fund invests.
(j) Amount rounds to less than $0.01.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 5
TA IDEX Multi-Manager Alternative Strategies Fund
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). TA IDEX Multi-Manager Alternative Strategies Fund (the "Fund") began operations on December 28, 2006.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers two classes of shares, Class A and Class C, each with a public offering price that reflects different sales charges, if any, and expense levels. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: Investment company securities are valued at the net asset value of the underlying portfolio.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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. Dividends and net realized gain (loss) from investment securities for the Fund are from investments in shares of affiliated investment companies.
Redemption fees: A short-term trading redemption fee may be assessed on any fund shares in a fund account that are sold during the first five (5) New York Stock Exchange ("NYSE") trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the period from inception through April 30, 2007, the Fund received no redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC ("TIM") is an affiliate of the Fund and a sub-adviser to other funds within Transamerica IDEX Mutual Funds.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of underlying funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.20% of the first $500 million of ANA
0.19% of the next $500 million of ANA
0.18% of ANA over $1 billion
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
0.55% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There are no amounts available for recapture at April 30, 2007.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 6
TA IDEX Multi-Manager Alternative Strategies Fund
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class C | 1.00 | % |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
Underwriter commissions relate to front-end sales charges imposed for Class A shares and contingent deferred sales charges from Class C, and certain A share redemptions. For the period from inception through April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 389 | |||||
Retained by Underwriter | 62 | ||||||
Contingent Deferred Sales Charge | 8 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.0125% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $3 for the period from inception through April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to less than $1.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the period ended April 30, 2007, there was no amount related to the Emeritus Plan. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the period from inception through April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 24,446 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | – | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 7
TA IDEX Multi-Manager Alternative Strategies Fund
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 8
TA IDEX Multi-Manager Alternative Strategies Fund
INVESTMENT ADVISORY AND ASSET ALLOCATION MANAGEMENT AGREEMENTS – REVIEW AND APPROVAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on July 18 & 19, 2006, the Board reviewed and considered the proposed the proposed Investment Advisory Agreement between TA IDEX Multi-Manager Alternative Strategies Fund (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI"), as well as the proposed Asset Allocation Management Agreement of the Fund between TFAI and Morningstar Associates, LLC (the "Portfolio Construction Manager"), to determine whether the agreements should be approved for an initial two-year period. Following their review and consideration, the Trustees determined that the proposed Investment Advisory Agreement and the Asset Allocation Management Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the B oard, unanimously approved the proposed Investment Advisory Agreement and the Asset Allocation Management Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Portfolio Construction Manager such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the anticipated fee and expense information and profitability data prepared by TFAI. In addition, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by Fund counsel and 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 service to be provided. The Board considered the nature and quality of the services expected to be provided by TFAI and the Portfolio Construction Manager to the Fund. The Board concluded that TFAI and the Portfolio Construction Manager are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided to other TA IDEX funds in the past, TFAI's and the Portfolio Construction Manager's management capabilities demonstrated with respect to the funds they manage, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Portfolio Construction Manager, TFAI's management oversight process and the professional qualifications and experience of the Portfolio Construction Manager's portfolio management team. The Trustees also concluded that TFAI and the Portfolio Construction Manager proposed to provide investment and related services that are appropriate in scope and extent in light of the Fund's operations and 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 determined that most other funds managed by the Portfolio Construction Manager have generally performed well and generated considerable investor interest. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services expected to be provided or procured by TFAI and the Portfolio Construction Manager, the Trustees concluded that TFAI and the Portfolio Construction Manager are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Portfolio Construction Manager's performance record s for other funds (or accounts) indicate that their management is likely to benefit the Fund and its shareholders.
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 estimated profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, transfer agency, fund accounting and other services to the Fund and other funds within the fund complex. Based on such information and the proposed management and sub-advisory fees for the Fund, the Trustees determined that the proposed management fees of the Fund generally are consistent with industry averages and are appropriate in light of the services expected to be provided or procured, the management fees and the anticipated profitability of the relationship between the F und, TFAI and its affiliates, and the Sub-Adviser. The Board also took note of the costs involved in establishing a new fund.
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 Asset Allocation Management Agreements reflect economies of scale or will permit economies of scale to be realized in the future, the Board took note of TFAI's pricing strategy and the proposed advisory fee breakpoints as detailed in the materials provided, and noted each fee breakpoint with respect to the various asset levels achieved by the Fund. The Board also noted that the Fund's investments in underlying funds also could permit the realization of breakpoints (or lower breakpoints) at the underlying fund level which, indirectly, benefit the Fund and its shareholders, as well as the underlying funds. The Board concluded that the proposed fees and breakpoints appropriately 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 concluded that the Fund's anticipated management fee appropriately reflects the Fund's anticipated size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. The Trustees also
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 9
TA IDEX Multi-Manager Alternative Strategies Fund (continued)
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 TFAI and fees payable to the Portfolio Construction Manager, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Portfolio Construction Manager from their relationship with the Fund. The Board concluded that other benefits expected to be derived by TFAI and its affiliates (including benefits derived from investment advisory fees payable to TFAI with respect to the underlying funds in which the Fund will invest), or the Portfolio Construction Manager from their relationship with the Fund should be reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that neither TFAI nor the Portfolio Construction Manager will realize "soft dollar" benefits from its relationship with the Fund.
Other considerations. The Board noted that other asset allocation series of TA IDEX have generated considerable investor interest. The Board determined that TFAI 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 TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Portfolio Construction Manager. The Trustees also determined that TFAI has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TFAI's expens e limitation and fee waiver arrangements with TA IDEX funds, including the Fund which may result in TFAI waiving a substantial amount of management fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. In approving the Fund, the Board also considered the high quality of the Portfolio Construction Manager's portfolio management personnel who will manage the Fund under the Asset Allocation Management Agreement, and their overall portfolio management capabilities. The Board determined that they, too, have made substantial commitments to the recruitment and retention of high quality personnel, and maintain the financial and operational resources reasonably necessary to manage the Fund.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager Alternative Strategies Fund 10
TA IDEX Multi-Manager International Fund
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
The expenses shown in the table do not reflect any expenses from the Fund's investment in other affiliated investment companies. The average weighted annualized expense ratio of the underlying investment companies at April 30, 2007, was 1.09%.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,153.30 | 0.65 | % | $ | 3.47 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,021.57 | 0.65 | 3.26 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,149.30 | 1.42 | 7.57 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,017.75 | 1.42 | 7.10 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,149.50 | 1.31 | 6.98 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,018.30 | 1.31 | 6.56 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Investment Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the aggregate portfolio holdings of the underlying affiliated investment companies in which the Fund invests. The security lending collateral in the underlying funds is excluded from this calculation.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 1
TA IDEX Multi-Manager International Fund
SCHEDULE OF INVESTMENTS ø
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Investment Companies (98.8%) | |||||||||||
Specialty–Real Estate (5.6%) | |||||||||||
TA IDEX Clarion Global Real Estate Securities | 796,342 | $ | 16,285 | ||||||||
World Equity (93.2%) | |||||||||||
TA IDEX AllianceBernstein International Value | 3,946,433 | 54,697 | |||||||||
TA IDEX BlackRock Global Allocation | 1,199,380 | 14,177 | |||||||||
TA IDEX Evergreen International Small Cap | 1,532,343 | 26,111 | |||||||||
TA IDEX Marsico International Growth | 4,020,213 | 53,670 | |||||||||
TA IDEX Neuberger Berman International | 5,221,456 | 66,887 | |||||||||
TA IDEX Oppenheimer Developing Markets | 4,304,364 | 56,258 | |||||||||
Total Investment Companies (cost: $263,860) # | $ | 288,085 |
NOTES TO SCHEDULE OF INVESTMENTS:
ø The Fund invests its assets in Class I shares of the affiliated Transamerica IDEX Mutual Funds.
# Aggregate cost for federal income tax purposes is $264,196. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $23,889 and $0, respectively. Net unrealized appreciation for tax purposes is $23,889.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 2
TA IDEX Multi-Manager International Fund
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Assets: | |||||||
Investment in affiliated investment companies at value (cost: $263,860) | $ | 288,085 | |||||
Cash | 4 | ||||||
Receivables: | |||||||
Shares of beneficial interest sold | 5,428 | ||||||
Other | 10 | ||||||
293,527 | |||||||
Liabilities: | |||||||
Investment securities purchased | 1,465 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 216 | ||||||
Management and advisory fees | 23 | ||||||
Distribution and service fees | 173 | ||||||
Administration fees | 3 | ||||||
Other | 6 | ||||||
1,886 | |||||||
Net Assets | $ | 291,641 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 264,648 | |||||
Undistributed (accumulated) net investment income (loss) | (297 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment in affiliated investment companies | 3,065 | ||||||
Net unrealized appreciation (depreciation) on investment in affiliated investment companies | 24,225 | ||||||
Net Assets | $ | 291,641 | |||||
Net Assets by Class: | |||||||
Class A | $ | 116,283 | |||||
Class B | 19,597 | ||||||
Class C | 155,761 | ||||||
Shares Outstanding: | |||||||
Class A | 10,001 | ||||||
Class B | 1,693 | ||||||
Class C | 13,462 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 11.63 | |||||
Class B | 11.58 | ||||||
Class C | 11.57 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 12.31 |
(a) 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, and C shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
The notes to the financial statements are an integral part of this report.
Investment Income: | |||||||
Dividends from affiliated investment companies | $ | 9,613 | |||||
Expenses: | |||||||
Management and advisory fees | 104 | ||||||
Distribution and service fees: | |||||||
Class A | 146 | ||||||
Class B | 71 | ||||||
Class C | 555 | ||||||
Transfer agent fees: | |||||||
Class A | 38 | ||||||
Class B | 15 | ||||||
Class C | 54 | ||||||
Printing and shareholder reports | 5 | ||||||
Custody fees | 13 | ||||||
Administration fees | 13 | ||||||
Legal fees | 2 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 3 | ||||||
Registration fees | 67 | ||||||
Other | 2 | ||||||
Total expenses | 1,098 | ||||||
Net Investment Income (Loss) | 8,515 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies: | |||||||
Realized gain (loss) from investment in affiliated investment companies | (192 | ) | |||||
Realized gain distributions from investment in affiliated investment companies | 3,396 | ||||||
3,204 | |||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment in affiliated investment companies | 17,577 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment in Affiliated Investment Companies | 20,781 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 29,296 |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 3
TA IDEX Multi-Manager International Fund
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 8,515 | $ | (542 | ) | ||||||
Net realized gain (loss) from investment in affiliated investment companies | 3,204 | (139 | ) | ||||||||
Change in unrealized appreciation (depreciation) on investment in affiliated investment companies | 17,577 | 6,648 | |||||||||
29,296 | 5,967 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (3,679 | ) | – | ||||||||
Class B | (591 | ) | – | ||||||||
Class C | (4,542 | ) | – | ||||||||
(8,812 | ) | – | |||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 55,043 | 58,484 | |||||||||
Class B | 8,864 | 9,775 | |||||||||
Class C | 71,862 | 77,781 | |||||||||
135,769 | 146,040 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 2,473 | – | |||||||||
Class B | 488 | – | |||||||||
Class C | 2,851 | – | |||||||||
5,812 | – | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (7,653 | ) | (2,871 | ) | |||||||
Class B | (876 | ) | (316 | ) | |||||||
Class C | (6,538 | ) | (4,181 | ) | |||||||
(15,067 | ) | (7,368 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | 1 | – | (b) | ||||||||
Class B | – | – | (b) | ||||||||
Class C | 1 | 2 | |||||||||
2 | 2 | ||||||||||
Automatic conversions: | |||||||||||
Class A | 81 | 10 | |||||||||
Class B | (81 | ) | (10 | ) | |||||||
– | – | ||||||||||
126,516 | 138,674 | ||||||||||
Net increase (decrease) in net assets | 147,000 | 144,641 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 144,641 | – | |||||||||
End of period | $ | 291,641 | $ | 144,641 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (297 | ) | $ | – |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 4,986 | 5,756 | |||||||||
Class B | 804 | 963 | |||||||||
Class C | 6,543 | 7,679 | |||||||||
12,333 | 14,398 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 231 | – | |||||||||
Class B | 46 | – | |||||||||
Class C | 266 | – | |||||||||
543 | – | ||||||||||
Shares redeemed: | |||||||||||
Class A | (695 | ) | (285 | ) | |||||||
Class B | (80 | ) | (32 | ) | |||||||
Class C | (591 | ) | (435 | ) | |||||||
(1,366 | ) | (752 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 7 | 1 | |||||||||
Class B | (7 | ) | (1 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 4,529 | 5,472 | |||||||||
Class B | 763 | 930 | |||||||||
Class C | 6,218 | 7,244 | |||||||||
11,510 | 13,646 |
(a) Commenced operations on March 1, 2006.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 4
TA IDEX Multi-Manager International Fund
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 10.63 | $ | 0.47 | $ | 1.11 | $ | 1.58 | $ | (0.58 | ) | $ | – | $ | (0.58 | ) | $ | 11.63 | ||||||||||||||||||||
10/31/2006 | 10.00 | (0.04 | ) | 0.67 | 0.63 | – | – | – | 10.63 | ||||||||||||||||||||||||||||||
Class B | 4/30/2007 | 10.59 | 0.43 | 1.11 | 1.54 | (0.55 | ) | – | (0.55 | ) | 11.58 | ||||||||||||||||||||||||||||
10/31/2006 | 10.00 | (0.09 | ) | 0.68 | 0.59 | – | – | – | 10.59 | ||||||||||||||||||||||||||||||
Class C | 4/30/2007 | 10.58 | 0.43 | 1.11 | 1.54 | (0.55 | ) | – | (0.55 | ) | 11.57 | ||||||||||||||||||||||||||||
10/31/2006 | 10.00 | (0.09 | ) | 0.67 | 0.58 | – | – | – | 10.58 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a)(i) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a)(h) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 15.33 | % | $ | 116,283 | 0.65 | % | 0.65 | % | 8.59 | % (j) | 1 | % | ||||||||||||||||||
10/31/2006 | 6.30 | 58,142 | 0.80 | 0.88 | (0.67 | ) (j) | 1 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 14.93 | 19,597 | 1.42 | 1.42 | 7.81 | 1 | ||||||||||||||||||||||||
10/31/2006 | 5.90 | 9,849 | 1.45 | 1.69 | (1.32 | ) (j) | 1 | ||||||||||||||||||||||||
Class C | 4/30/2007 | 14.95 | 155,761 | 1.31 | 1.31 | 7.89 | (j) | 1 | |||||||||||||||||||||||
10/31/2006 | 5.80 | 76,650 | 1.45 | 1.53 | (1.32 | ) (j) | 1 |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Multi-Manager International Fund ("the Fund") commenced operations on March 1, 2006.
(h) Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the underlying investment companies in which the Fund invests.
(i) Does not include expenses of the investment companies in which the Fund invests.
(j) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 5
TA IDEX Multi-Manager International Fund
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Multi-Manager International Fund (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers three classes of shares, Class A, Class B and Class C, each with 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. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: Investment company securities are valued at the net asset value of the underlying portfolio.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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 Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received $2 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC ("TIM") is an affiliate of the Fund and a sub-adviser to other funds within Transamerica IDEX Mutual Funds.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Because the underlying funds have varied expense and fee levels and the Fund may own different proportions of underlying funds at different times, the amount of fees and expenses incurred indirectly by the Fund will vary.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following rate:
0.10% of ANA
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
0.45% Expense Limit
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 6
TA IDEX Multi-Manager International Fund
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 660 | |||||
Retained by Underwriter | 100 | ||||||
Contingent Deferred Sales Charge | 36 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.0125% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $105 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $1.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $4. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 129,630 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 2,454 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales.
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 1 | October 31, 2014 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 7
TA IDEX Multi-Manager International Fund
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 8
TA IDEX Multi-Manager International Fund
INVESTMENT ADVISORY AND ASSET ALLOCATION MANAGEMENT AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Multi-Manager International Fund (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Asset Allocation Management Agreement of the Fund between TFAI and Morningstar Associates, LLC (the "Portfolio Construction Manager"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Asset Allocation Management Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Asset Allocation Management Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Portfolio Construction Manager such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Portfolio Construction Manager (such as in-person presentations by the Portfolio Construction Manager) as part of their regular oversight of the Fund and other series for which the Portfolio Construction Manager renders services, as well as comparative fee, expense and performance information prepared by Lipper Inc. ("Lipper"), an independent provider of mutual fund performance, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and the Asset Allocation Management Agreement, the Trustees evaluated a number of considerations that they beli eve, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Portfolio Construction Manager to the Fund and other series for which the Portfolio Construction Manager renders services in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Portfolio Construction Manager are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Portfolio Construction Manager's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Portfolio Construction Manager, TFAI's ma nagement oversight process, and the professional qualifications and experience of the Portfolio Construction Manager's portfolio management team. The Trustees also concluded that TFAI and the Portfolio Construction Manager proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Portfolio Construction Manager's obligations will remain substantially the same. They also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional way.
The investment performance of the Fund. The Board examined the performance of the Fund since it commenced operations on March 1, 2006 until June 30, 2006, including relative performance against a peer group of comparable mutual funds as prepared by Lipper. The Board noted that the Fund was launched during a volatile period in the international market, and concluded that the Fund has not yet had enough time to establish a meaningful performance record which would allow for a comprehensive review. The Board noted that most other portfolios managed by the Portfolio Construction Manager have performed well and generated considerable investor interest. As a result, the Board resolved to closely monitor the Fund's performance going forward. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or proc ured by TFAI and the Portfolio Construction Manager, the Trustees concluded that TFAI and the Portfolio Construction Manager are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Portfolio Construction Manager's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Board noted that the Portfolio Construction Manager receives the entirety of the management fee payable by the Fund because TFAI is compensated through the management fees payable by the underlying funds in which the Fund invests. The Trustees reviewed data from Lipper that
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 9
TA IDEX Multi-Manager International Fund (continued)
compared the Fund's management fees, other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and the portfolio turnover rates against a peer group of comparable funds. The Trustees noted that the overall expense ratio of the Fund is higher than those of peer funds, but the Fund's contractual management fees are competitive with those of its peers. In addition, on the basis of the Board's review of the management fees charged by TFAI for investment advisory and related services, TFAI's profitability information, TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Portfolio Construction Manager, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Portfolio Construction Manag er's profitability, currently are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Portfolio Construction Manager.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board noted that the management fee of the Fund does not contain asset-based breakpoints, despite ongoing efforts to negotiate such breakpoints. The Board reviewed at length the information provided in response to a request that Management evaluate the Fund's pricing and fees, and the Board noted that the information included comparisons with the pricing structures of comparable funds. The Board also noted that the Fund's investments in underlying funds could permit economies of scale and the realization of breakpoints (or lower breakpoints) at the underlying fund level which, indirectly, would benefit the Fund and its shareholders, as well as the underlying funds. The Board carefully reviewed the performance record and the fees and expenses of the Fund and the comparative information provided by Lipper. The Board noted that the Fund has management fees in line with, or lower than, its peers. The Board concluded that the Fund's management fee appropriately reflects the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 by the underlying funds to TFAI and fees payable to the Portfolio Construction Manager, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Portfolio Construction Manager from their relationship with the Fund. The Board concluded that other benefits derived by TFAI (including any benefits derived from investment advisory fees payable to TFAI with respect to the underlying funds in which the Fund invests) or the Portfolio Construction Manager from its relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that neither TFAI nor the Portfolio Construction Manager realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration, fund accounti ng and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Portfolio Construction Manager. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. In addition, the Board noted the historical popularity with investors of the other series of TA IDEX managed by the Portfolio Construction Manager and consequential ancillary benefits to underlying series.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Multi-Manager International Fund 10
TA IDEX PIMCO Real Return TIPS
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,015.50 | 0.89 | % | $ | 4.45 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,020.38 | 0.89 | 4.46 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,015.60 | 0.90 | 4.50 | �� | ||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.33 | 0.90 | 4.51 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,015.80 | 0.89 | 4.45 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.38 | 0.89 | 4.46 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,017.30 | 0.72 | 3.60 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,021.22 | 0.72 | 3.61 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF
INVESTMENTS
By Asset Type
At April 30, 2007 (unaudited)
This chart shows the percentage breakdown by asset type of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 1
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
U.S. GOVERNMENT OBLIGATIONS (98.4%) | |||||||||||
U.S. Treasury Bond 6.00%, due 02/15/2026 | $ | 800 | $ | 908 | |||||||
2.38%, due 01/15/2027 | 11,905 | 11,993 | |||||||||
6.63%, due 02/15/2027 | 900 | 1,096 | |||||||||
U.S. Treasury Inflation Indexed Bond 3.63%, due 01/15/2008 | 8,690 | 8,800 | |||||||||
3.88%, due 01/15/2009 | 30,644 | 31,669 | |||||||||
4.25%, due 01/15/2010 | 43,415 | 46,099 | |||||||||
0.88%, due 04/15/2010 | 32,542 | 31,507 | |||||||||
3.50%, due 01/15/2011 | 39,045 | 41,219 | |||||||||
2.38%, due 04/15/2011 | 7,586 | 7,690 | |||||||||
3.38%, due 01/15/2012 | 520 | 552 | |||||||||
3.00%, due 07/15/2012 | 30,327 | 31,821 | |||||||||
1.88%, due 07/15/2013 | 82,310 | 81,355 | |||||||||
2.00%, due 01/15/2014 | 38,980 | 38,650 | |||||||||
2.00%, due 07/15/2014 | 43,932 | 43,561 | |||||||||
1.88%, due 07/15/2015 | 25,732 | 25,180 | |||||||||
2.00%, due 01/15/2016 | 5,126 | 5,051 | |||||||||
2.50%, due 07/15/2016 | 14,004 | 14,379 | |||||||||
2.38%, due 01/15/2025 | 57,208 | 57,510 | |||||||||
2.00%, due 01/15/2026 | 33,931 | 32,214 | |||||||||
3.63%, due 04/15/2028 | 37,487 | 45,572 | |||||||||
3.88%, due 04/15/2029 | 41,264 | 52,276 | |||||||||
3.38%, due 04/15/2032 | 917 | 1,115 | |||||||||
U.S. Treasury Note 4.50%, due 02/28/2011 | 800 | 800 | |||||||||
2.38%, due 01/15/2017 | 42,173 | 42,830 | |||||||||
Total U.S. Government Obligations (cost: $657,376) | 653,847 | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (4.7%) | |||||||||||
Fannie Mae 5.47%, due 08/25/2034 * | 346 | 346 | |||||||||
6.18%, due 10/01/2044 * | 121 | 123 | |||||||||
Fannie Mae TBA 5.50%, due 05/01/2037 | 9,200 | 9,096 | |||||||||
6.00%, due 05/01/2037 | 8,000 | 8,060 | |||||||||
5.50%, due 06/01/2037 | 10,900 | 10,777 | |||||||||
Freddie Mac 4.50%, due 05/15/2017 | 215 | 212 | |||||||||
5.00%, due 02/15/2020 | 2,866 | 2,851 | |||||||||
Total U.S. Government Agency Obligations (cost: $31,402) | 31,465 | ||||||||||
FOREIGN GOVERNMENT OBLIGATIONS (6.7%) | |||||||||||
Canada Government 3.00%, due 12/01/2036 | CAD | 428 | 497 |
Principal | Value | ||||||||||
Republic of Germany Zero Coupon, due 06/13/2007 | EUR | 29,810 | $ | 40,501 | |||||||
Russian Federation 7.50%, due 03/31/2030 | $ | 498 | 565 | ||||||||
United Kingdom 2.50%, due 05/20/2009 | GBP | 600 | 3,065 | ||||||||
Total Foreign Government Obligations (cost: $43,381) | 44,628 | ||||||||||
MORTGAGE-BACKED SECURITIES (0.8%) | |||||||||||
Bank of America Mortgage Securities, Series 2004-1, Class 5A1 6.50%, due 09/25/2033 | $ | 105 | 106 | ||||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-3, Class 1A2 5.61%, due 04/25/2035 * | 1,879 | 1,883 | |||||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-R2, Class 1AF1-144A 5.66%, due 06/25/2035 * | 452 | 453 | |||||||||
Greenpoint Mortgage Funding Trust, Series 2005-AR1, Class A2 5.54%, due 06/25/2045 * | 923 | 923 | |||||||||
GSR Mortgage Loan Trust, Series 2005-AR6, Class 2A1 4.54%, due 09/25/2035 * | 1,350 | 1,337 | |||||||||
Lehman XS Trust, Series 2006-10N, Class 1A1A 5.40%, due 07/25/2046 * | 499 | 499 | |||||||||
Total Mortgage-Backed Securities (cost: $5,208) | 5,201 | ||||||||||
ASSET-BACKED SECURITIES (0.2%) | |||||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2005-1L, Class A1A 4.90%, due 12/25/2035 * | 74 | 74 | |||||||||
Equity One ABS, Inc., Series 2004-1, Class AV2 5.62%, due 04/25/2034 * | 48 | 48 | |||||||||
GSAMP Trust, Series 2004-SEA2, Class A2A 5.61%, due 03/25/2034 * | 157 | 158 | |||||||||
Merrill Lynch Mortgage Investors, Inc., Series 2006-WMC1, Class A2A 5.40%, due 01/25/2037 * | 74 | 74 | |||||||||
Residential Asset Securities Corp., Series 2006-KS3, Class AI1 5.39%, due 04/25/2036 * | 35 | 35 | |||||||||
Sequoia Mortgage Trust, Series 5, Class A 5.67%, due 10/19/2026 * | 250 | 251 | |||||||||
Small Business Administration, Series 2004-P10, Class A 4.50%, due 02/10/2014 | 863 | 840 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 2
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Soundview Home Equity Loan Trust, Series 2006-2, Class A1 5.39%, due 03/25/2036 * | $ | 10 | $ | 9 | |||||||
Truman Capital Mortgage Loan Trust, Series 2004-1, Class A1-144A 5.66%, due 01/25/2034 * | 23 | 23 | |||||||||
Total Asset-Backed Securities (cost: $1,534) | 1,512 | ||||||||||
MUNICIPAL BONDS (0.1%) | |||||||||||
Revenue-Tobacco (0.1%) | |||||||||||
Tobacco Settlement Financing Corp., RI 6.00%, due 06/01/2023 | 600 | 639 | |||||||||
Revenue-Utilities (0.0%) | |||||||||||
New York, NY, City Municipal Water Finance Authority 4.75%, due 06/15/2038 | 200 | 205 | |||||||||
Total Municipal Bonds (cost: $739) | 844 | ||||||||||
CORPORATE DEBT SECURITIES (4.9%) | |||||||||||
Commercial Banks (1.7%) | |||||||||||
Abbey National Treasury Services PLC/Stamford, CT 5.27%, due 07/02/2008 * | 5,800 | 5,800 | |||||||||
Fortis Bank SA/NV - New York, NY 5.27%, due 06/30/2008 * | 3,000 | 3,000 | |||||||||
Rabobank Nederland-144A 5.38%, due 01/15/2009 * | 400 | 400 | |||||||||
Unicredit Luxembourg Finance SA-144A 5.41%, due 10/24/2008 * | 900 | 900 | |||||||||
Wachovia Bank NA 5.42%, due 12/02/2010 * | 1,200 | 1,200 | |||||||||
Communication (0.2%) | |||||||||||
CSC Holdings, Inc. 7.88%, due 12/15/2007 | 1,100 | 1,114 | |||||||||
Electric Services (0.3%) | |||||||||||
Mission Energy Holding Co. 13.50%, due 07/15/2008 | 1,700 | 1,857 | |||||||||
Holding & Other Investment Offices (0.0%) | |||||||||||
Ajax Re., Ltd.-144A 11.58%, due 05/08/2009 §m | 100 | 100 | |||||||||
Hotels & Other Lodging Places (0.0%) | |||||||||||
Harrah's Operating Co., Inc. 7.50%, due 01/15/2009 | 200 | 206 |
Principal | Value | ||||||||||
Insurance (0.1%) | |||||||||||
Foundation Re II, Ltd.–144A 12.11%, due 11/26/2010 *§(a)m | $ | 500 | $ | 508 | |||||||
Mortgage Bankers & Brokers (0.4%) | |||||||||||
Atlantic & Western Re, Ltd., Series B–144A 11.60%, due 01/09/2009 *§(a) | 700 | 710 | |||||||||
C10 Capital SPV, Ltd.–144A 6.72%, due 12/31/2016(b)(c) | 300 | 300 | |||||||||
Longpoint Re, Ltd., –144A Zero Coupon, due 05/08/2010 §m | 600 | 600 | |||||||||
Mystic Re, Ltd.–144A 14.36%, due 12/05/2008 *§(a)m | 400 | 402 | |||||||||
Redwood Capital IX, Ltd., Series D–144A 13.10%, due 01/09/2008 *§(a)m | 300 | 303 | |||||||||
Vita Capital III, Ltd., Series B-II–144A 6.47%, due 01/01/2012 *§(a)m | 400 | 401 | |||||||||
Personal Credit Institutions (0.7%) | |||||||||||
Ford Motor Credit Co. 7.25%, due 10/25/2011 | 2,100 | 2,057 | |||||||||
General Electric Capital Corp. 5.39%, due 03/04/2008 * 5.38%, due 12/12/2008 * | 2,300 500 | 2,302 500 | |||||||||
Security & Commodity Brokers (1.0%) | |||||||||||
Citigroup Funding, Inc., (MTN) 5.32%, due 04/23/2009 * | 3,200 | 3,199 | |||||||||
Citigroup, Inc. 5.40%, due 01/30/2009 * | 500 | 500 | |||||||||
Goldman Sachs Group, Inc. 5.65%, due 06/28/2010 * | 3,000 | 3,015 | |||||||||
Telecommunications (0.5%) | |||||||||||
BellSouth Corp.–144A 4.24%, due 04/26/2008 | 3,300 | 3,269 | |||||||||
Total Corporate Debt Securities (cost: $32,590) | 32,643 | ||||||||||
LOAN ASSIGNMENTS (0.8%) | |||||||||||
Holding & Other Investment Offices (0.2%) | |||||||||||
OAO Rosneft Zero Coupon, due 09/16/2007 §m | 1,000 | 999 | |||||||||
Medical Instruments & Supplies (0.5%) | |||||||||||
HCA, Inc., Series B 7.60%, due 11/14/2013 m | 3,092 | 3,128 | |||||||||
Paper & Allied Products (0.1%) | |||||||||||
Koch Forest Products, Inc., Series B 7.39%, due 12/20/2012 | 988 | 992 | |||||||||
Total Loan Assignments (cost: $5,079) | 5,119 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 3
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (0.2%) | |||||||||||
U.S. Treasury Bill | |||||||||||
5.04%, due 05/31/2007 v | $ | 405 | $ | 403 | |||||||
4.96%, due 06/14/2007 v | 735 | 731 | |||||||||
Total Short-Term U.S. Government Obligations (cost: $1,134) | 1,134 | ||||||||||
COMMERCIAL PAPER (3.9%) | |||||||||||
Commercial Banks (3.9%) | |||||||||||
Danske Corp. 5.21%, due 08/20/2007 | 26,100 | 25,681 | |||||||||
Total Commercial Paper (cost: $25,681) | 25,681 | ||||||||||
Notional Amount | Value | ||||||||||
PURCHASED SWAPTIONS (0.0%) | |||||||||||
Covered Call Swaptions (0.0%) | |||||||||||
LIBOR Rate Swaption §m | |||||||||||
Call Strike $4.75 | |||||||||||
Expires 03/31/2008 | $ | 21,000 | $ | 105 | |||||||
LIBOR Rate Swaption §m Call Strike $4.75 Expires 09/26/2008 | 5,000 | 29 | |||||||||
Total Purchased Swaptions (cost: $143) | 134 | ||||||||||
FORWARD VOLATILITY OPTIONS (0.0%) | |||||||||||
Call & Put–OTC U.S. Dollar vs. Swiss Franc | |||||||||||
Forward Delta Straddle, Strike and premium | |||||||||||
determined on 09/26/2007, based upon implied | |||||||||||
volatility parameter of 7.2%. §(d) | |||||||||||
Counterparty: Royal Bank of Scotland PLC | |||||||||||
Expires 09/26/2007 | 15,800 | $ | 8 | ||||||||
Call & Put–OTC U.S. Dollar vs. Swiss Franc Forward Delta Straddle, Strike and premium determined on 09/26/2007, based upon implied volatility parameter of 7.075%. §(d) Counterparty: JP Morgan & Chase Expires 09/26/2007 | 3,200 | 5 | |||||||||
Total Forward Volatility Options (premium: $0) | 13 | ||||||||||
Total Investment Securities (cost: $804,267) # | $ | 802,221 | |||||||||
WRITTEN SWAPTIONS (0.0%) | |||||||||||
Covered Call Swaptions (0.0%) | |||||||||||
LIBOR Rate Swaption m Call Strike $4.95 Expires 03/31/2008 | 9,000 | (104 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $4.95 Expires 09/26/2008 | 2,000 | (26 | ) | ||||||||
Total Written Swaptions (premiums: $133) | (130 | ) |
Contracts u | Value | ||||||||||
WRITTEN OPTIONS (0.0%) | |||||||||||
Covered Call Options (0.0%) | |||||||||||
10 Year U.S. Treasury Note Futures | |||||||||||
Call Strike $108.00 | |||||||||||
Expires 05/25/2007 | 66 | $ | (41 | ) | |||||||
Put Options (0.0%) | |||||||||||
10 Year U.S. Treasury Note Futures Put Strike $105.00 Expires 05/25/2007 | 66 | (1 | ) | ||||||||
Total Written Options (premiums: $49) | (42 | ) | |||||||||
SWAP AGREEMENTS: |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 2.1025% and the Fund will pay a floating rate based on FRC– Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Barclays Bank PLC m§ | 10/15/10 | EUR | 5,000 | $ | 117 | ||||||||||
Receive a fixed rate equal to 2.04% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Goldman Sachs Capital Markets, LP m§ | 2/21/11 | EUR | 5,500 | 93 | |||||||||||
Receive a floating rate based on 6-month Great British Pound–LIBOR and the Fund will pay a fixed rate equal to 4.25%. Counterparty:HSBC Bank USA, N.A. § | 6/12/36 | GBP | 1,300 | 250 | |||||||||||
Receive a floating rate based on 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Deutsche Bank AG § | 12/20/21 | $ | 1,200 | (47 | ) | ||||||||||
Receive a floating rate based on 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Deutsche Bank AG § | 12/20/26 | 1,300 | (64 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 4
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 2.095% and the Fund will pay a floating rate based on FRC– Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: UBS AG m§ | 10/15/11 | EUR | 3,600 | $ | 70 | ||||||||||
Receive a floating rate based on CPTFEMU Index and the Fund will pay a fixed rate equal to 2.275%.Counterparty: UBS AG m | 10/15/16 | EUR | 1,400 | (3 | ) | ||||||||||
Receive a fixed rate equal to 2.35% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: UBS AG m§ | 10/15/16 | EUR | 1,400 | 9 | |||||||||||
Receive a fixed rate equal to 2.0275% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: JP Morgan & Chase m§ | 10/15/11 | EUR | 1,400 | 22 | |||||||||||
Receive a fixed rate equal to 2.35% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: JP Morgan & Chase m§ | 10/15/16 | EUR | 1,300 | 9 | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 3-month United States Dollar–LIBOR. Counterparty: UBS AG § | 6/18/09 | $ | 105,000 | 445 | |||||||||||
Receive a fixed rate equal to 5.0% and the Fund will pay a floating rate based on 6-month British Pound–LIBOR Counterparty: Barclays Bank PLC | 6/15/09 | GBP | 10,200 | (211 | ) |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 1.97% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: JP Morgan & Chase m§ | 12/15/11 | EUR | 2,200 | $ | 12 | ||||||||||
Receive a floating rate based on 6-month-EURIBOR and the Fund will pay a fixed rate equal to 4.00%. Counterparty: Credit Suisse International § | 6/15/17 | EUR | 7,600 | 343 | |||||||||||
Receive a fixed rate equal to 1.99% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: BNP Paribas m§ | 12/15/11 | EUR | 2,900 | 17 | |||||||||||
Receive a fixed rate equal to 1.98% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Goldman Sachs Capital Markets, LP m§ | 12/15/11 | EUR | 7,400 | 49 | |||||||||||
Receive a fixed rate equal to 5.50% and the Fund will pay a floating rate based on the 3-month Canadian Bank rate. Counterparty: Merrill Lynch Capital Services § | 6/15/35 | CAD | 2,000 | (72 | ) | ||||||||||
Receive a fixed rate equal to 5.50% and the Fund will pay a floating rate based on the 3-month Canadian Bank rate. Counterparty: Deutsche Bank AG § | 6/15/35 | CAD | 1,000 | (36 | ) | ||||||||||
Receive a fixed rate equal to 6.50% and the Fund will pay a floating rate based on the 6-month Australian Dollar- Bank Bill Rate–BBSW (AUD–BBR-BBSW). Counterparty: JP Morgan & Chase m | 1/15/10 | AUD | 1,700 | — | o |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 5
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 6.50% and the Fund will pay a floating rate based on the 6-month AUD–BBR-BBSW. Counterparty: Deutsche Bank AG m | 1/15/10 | AUD | 10,400 | $ | 2 | ||||||||||
Receive a fixed rate equal to 6.50% and the Fund will pay a floating rate based on the 6-month AUD–BBR-BBSW. Counterparty: Citibank NA m | 1/15/10 | AUD | 2,700 | — | o | ||||||||||
Receive a fixed rate equal to 6.50% and the Fund will pay a floating rate based on the 6-month AUD–BBR-BBSW. Counterparty: Royal Bank of Scotland m | 1/15/10 | AUD | 1,100 | — | o | ||||||||||
Receive a floating rate based on 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Goldman Sachs Capital Markets, LP § | 6/20/14 | $ | 4,000 | 22 | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Royal Bank of Scotland PLC § | 6/20/12 | 15,800 | (108 | ) | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: UBS AG | 6/20/09 | 3,800 | (12 | ) | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Goldman Sachs Capital Markets, LP | 6/20/09 | 7,900 | (25 | ) |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Barclays Bank PLC | 6/20/09 | $ | 2,600 | $ | (8 | ) | |||||||||
Receive a floating rate based on 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Bank of America m§ | 6/20/17 | 16,800 | 370 | ||||||||||||
Receive a fixed rate equal to 0.30% and the Fund will pay to the counterparty at the notional amount in the event of default of Republic of Panama Government Bond, 8.875%, due 09/30/2027. Counterparty: Barclays Bank PLC § | 12/20/08 | 1,700 | 2 | ||||||||||||
Receive a fixed rate equal to 0.33% and the Fund will pay to the counterparty at the notional amount in the event of default of Russian Federation Government Bond, 5.00%, due 03/31/2030. Counterparty: Barclays Bank PLC § | 12/20/08 | 1,700 | 1 | ||||||||||||
Receive a fixed rate equal to 0.35% and The Fund will pay to the counterparty at the notional amount in the event of default of Republic of PERU Government Bond, 8.75%, due 11/21/2033. Counterparty: Barclays Bank PLC § | 12/20/08 | 1,700 | 1 | ||||||||||||
Receive a fixed rate equal to 0.51% and The Fund will pay to the counterparty at the notional amount in the event of default of Republic of Indonesia Government Bond, 6.75%, due 03/10/2014. Counterparty: Deutsche Bank AG § | 12/20/08 | 1,700 | 4 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 6
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 0.78% and The Fund will pay to the counterparty at the notional amount in the event of default of Ukraine Government Bond, 7.65%, due 06/11/2013. Counterparty: Barclays Bank PLC § | 12/20/08 | $ | 1,700 | $ | 6 | ||||||||||
Receive a floating rate based on 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: JP Morgan & Chase § | 6/20/17 | 8,400 | 185 | ||||||||||||
Receive a floating rate based on 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Morgan Stanley Capital Services, Inc. § | 6/20/17 | 100 | 2 | ||||||||||||
Receive a floating rate based on 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Barclays Bank PLC § | 6/20/17 | 5,700 | 3 | ||||||||||||
Receive a fixed rate equal to 0.28% and the Fund will pay to the counterparty at the notional amount in the event of default of Russian Federation Government Bond, 5.00%, due 03/31/2030. Counterparty: HSBC Bank USA § | 11/20/07 | 1,000 | — | o | |||||||||||
Receive a fixed rate equal to 0.24% and the Fund will pay to the counterparty at the notional amount in the event of default of Russian Federation Government Bond, 7.50%, due 03/31/2030. Counterparty: HSBC Bank USA | 2/20/08 | 1,000 | — | o |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 1.01% and the Fund will pay to the counterparty at the notional amount in the event of default of Chesapeake Energy Corp, 6.88%, due 01/15/2016. Counterparty: Credit Suisse International | 6/20/12 | $ | 200 | $ | — | o | |||||||||
Receive a fixed rate equal to 0.97% and the Fund will pay to the counterparty at the notional amount in the event of default of Chesapeake Energy Corp, 6.88%, due 01/15/2016. Counterparty: Credit Suisse International | 6/20/12 | 200 | (1 | ) | |||||||||||
Receive a fixed rate equal to 2.00% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Goldman Sachs Capital Markets, LP m§ | 3/15/12 | EUR | 1,300 | 5 | |||||||||||
Receive a fixed rate equal to 1.98% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: BNP Paribas m | 3/15/12 | EUR | 1,100 | 2 | |||||||||||
Receive a fixed rate equal to 1.95% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: BNP Paribas m§ | 3/15/12 | EUR | 700 | 1 | |||||||||||
Receive a fixed rate equal to 1.95% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Royal Bank of Scotland PLC m§ | 3/30/12 | EUR | 700 | — | o |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 7
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 1.96% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Barclays Bank PLC m§ | 4/5/12 | EUR | 200 | $ | — | o | |||||||||
Receive a fixed rate equal to 1.98% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Barclays Bank PLC m | 4/30/12 | EUR | 500 | (1 | ) | ||||||||||
Receive a fixed rate equal to 1.96% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Royal Bank of Scotland PLC m | 3/28/12 | EUR | 200 | — | o | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Morgan Stanley Capital Services, Inc. | 6/22/37 | $ | 5,000 | (123 | ) | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Citibank NA § | 6/20/12 | 5,300 | 34 | ||||||||||||
Receive a floating rate based on 6-month-EURIBOR and the Fund will pay a fixed rate equal to 4.00%. Counterparty: Barclays Bank PLC § | 12/17/35 | GBP | 3,300 | 147 | |||||||||||
Receive a fixed rate equal to 8.33% and the Fund will pay a floating rate based on Mexican Peso TIIE-Banxico. Counterparty: Barclays Bank PLC m§ | 2/14/17 | MXN | 6,400 | 12 |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a floating rate based on 6-month Great British Pound–LIBOR and the Fund will pay a fixed rate equal to 4.0%. Counterparty: Royal Bank of Scotland PLC § | 12/17/35 | GBP | 1,400 | $ | 60 | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty:Royal Bank of Scotland PLC | 6/22/37 | $ | 4,600 | 29 | |||||||||||
Receive a fixed rate equal to 8.17% and the Fund will pay a floating rate based on Mexican Peso TIIE-Banxico. Counterparty: Citibank NA m§ | 11/4/16 | MXN | 6,700 | 12 | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Bank of America | 6/22/37 | $ | 2,500 | (38 | ) | ||||||||||
Receive a floating rate based on 6-month Great British Pound–LIBOR and the Fund will pay a fixed rate equal to 5.0%. Counterparty: Goldman Sachs Capital Markets, LP § | 9/15/15 | GBP | 2,400 | 72 | |||||||||||
Receive a floating rate based on 6-month Great British Pound–LIBOR and the Fund will pay a fixed rate equal to 5.0%. Counterparty: Royal Bank of Scotland PLC m | 9/15/10 | GBP | 5,100 | (71 | ) | ||||||||||
Receive a floating rate based on 6-month Great British Pound–LIBOR and the Fund will pay a fixed rate equal to 5.0%. Counterparty: Royal Bank of Scotland PLC m | 9/15/10 | GBP | 3,400 | (52 | ) | ||||||||||
Total Swap Agreements (premium $-455) | 304,400 | $ | 1,536 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 8
TA IDEX PIMCO Real Return TIPS
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
FUTURES CONTRACTS: | |||||||||||||||||||
Contractsu | Settlement Date | Amount | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
10-Year U.S. Treasury Note | 13 | 06/20/2007 | $ | 14,616 | $ | 1 | |||||||||||||
10-Year U.S. Treasury Note | (36 | ) | 06/30/2007 | (3,900 | ) | 8 | |||||||||||||
5-Year U.S. Treasury Note | 269 | 07/05/2007 | 28,468 | 153 | |||||||||||||||
90-Day Euro Dollar | 41 | 06/18/2007 | 9,704 | (37 | ) | ||||||||||||||
90-Day Euro Dollar | 85 | 09/17/2007 | 20,145 | (78 | ) | ||||||||||||||
90-Day Euro Dollar | 126 | 12/17/2007 | 29,922 | (42 | ) | ||||||||||||||
90-Day Euro Dollar | 35 | 03/17/2008 | 8,329 | 13 | |||||||||||||||
90-Day Euro Dollar | (17 | ) | 06/16/2008 | (4,051 | ) | (6 | ) | ||||||||||||
90-Day Euro Dollar | (17 | ) | 09/15/2008 | (4,054 | ) | (8 | ) | ||||||||||||
90-Day Euro Dollar | (13 | ) | 12/15/2008 | (3,100 | ) | (7 | ) | ||||||||||||
90-Day Euro Dollar | (13 | ) | 03/16/2009 | (3,099 | ) | (7 | ) | ||||||||||||
90-Day GBP LIBOR | 261 | 03/19/2008 | 61,435 | (193 | ) | ||||||||||||||
90-Day GBP LIBOR | 365 | 06/18/2008 | 85,960 | (128 | ) | ||||||||||||||
Euro-BUND | (12 | ) | 05/24/2007 | – | o | 5 | |||||||||||||
Euro-BUND | (190 | ) | 05/24/2007 | (3 | ) | 72 | |||||||||||||
Euro-BUND | (12 | ) | 05/24/2007 | (3 | ) | 2 | |||||||||||||
Euro-BUND | (190 | ) | 05/24/2007 | (163 | ) | (88 | ) | ||||||||||||
U.S. Treasury Long Bond | (313 | ) | 06/29/2007 | (34,978 | ) | 376 | |||||||||||||
$ | 205,228 | $ | 36 |
FORWARD FOREIGN CURRENCY CONTRACTS: | |||||||||||||||||||
Currency | Bought (Sold) | Settlement Date | Amount in U.S. Dollars Bought (Sold) | Net Unrealized Appreciation (Depreciation) | |||||||||||||||
British Pound Sterling | (2,992 | ) | 05/17/2007 | $ | (5,915 | ) | $ | (68 | ) | ||||||||||
Canadian Dollar | (981 | ) | 05/17/2007 | (848 | ) | (40 | ) | ||||||||||||
Chinese Yuan Renminbi | 51,704 | 01/10/2008 | 6,928 | 28 | |||||||||||||||
Chinese Yuan Renminbi | 43,219 | 03/02/2009 | 6,107 | 68 | |||||||||||||||
Chinese Yuan Renminbi | 26,240 | 03/07/2008 | 3,578 | (13 | ) | ||||||||||||||
Euro Dollar | (30,308 | ) | 05/24/2007 | (41,204 | ) | (194 | ) | ||||||||||||
Japanese Yen | 141,392 | 05/15/2007 | 1,175 | 10 | |||||||||||||||
Japanese Yen | (208,769 | ) | 05/15/2007 | (1,788 | ) | 38 | |||||||||||||
Swiss Franc | 5,877 | 06/07/2007 | 4,848 | 37 | |||||||||||||||
$ | (27,119 | ) | $ | (134 | ) |
NOTES TO SCHEDULE OF INVESTMENTS:
* Floating or variable rate note. Rate is listed as of April 30, 2007.
(a) Passive Foreign Investment Company.
(b) The security has a perpetual maturity. The date shown is the next call date.
(c) Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of April 30, 2007.
(d) Exercise price and final cost determined on a future date, based upon implied volatility parameters.
§ Security is deemed to be illiquid.
o Value is less than $1.
v At April 30, 2007, all or a portion of this security is segregated with the custodian to cover margin requirements for open option contracts and open futures contracts. The values of all securities segregated at April 30, 2007, are $398 and $736, respectively.
u Contract amounts are not in thousands.
m Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees.
# Aggregate cost for federal income tax purposes is $806,073. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $2,988 and $6,840, respectively. Net unrealized depreciation for tax purposes is $3,852.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $8,369 or 1.3% of the net assets of the Fund.
AUD Australian Dollar
CAD Canadian Dollar
EUR Euro
EURIBOR Euro Interbank Offer Rate
GBP Great British Pound
LIBOR London Interbank Offer Rate
MTN Medium-Term Note
MXN Mexican Peso
TBA Mortgage-backed securities traded under delayed delivery commitments.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 9
TA IDEX PIMCO Real Return TIPS
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $804,267) | $ | 802,221 | |||||
Cash | 4,291 | ||||||
Foreign currency (cost: $4,598) | 4,629 | ||||||
Receivables: | |||||||
Investment securities sold | 11,670 | ||||||
Shares of beneficial interest sold | 423 | ||||||
Interest | 4,590 | ||||||
Swap agreements at value(premium $-455) | 1,081 | ||||||
Unrealized appreciation on forward foreign currency contracts | 181 | ||||||
Other | 14 | ||||||
829,100 | |||||||
Liabilities: | |||||||
Investment securities purchased | 163,621 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 225 | ||||||
Management and advisory fees | 370 | ||||||
Transfer agent fees | 2 | ||||||
Administration fees | 11 | ||||||
Unrealized depreciation on forward foreign currency contracts | 315 | ||||||
Variation margin | 17 | ||||||
Written options and swaptions (premiums $182) | 172 | ||||||
Other | 57 | ||||||
164,790 | |||||||
Net Assets | $ | 664,310 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 674,540 | |||||
Undistributed (accumulated) net investment income (loss) | 2,297 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities, futures contracts, written options and swaptions, swaps and foreign currency transactions | (11,962 | ) | |||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | (2,046 | ) | |||||
Futures contracts | 36 | ||||||
Written option and swaption contracts | 10 | ||||||
Swap agreements | 1,536 | ||||||
Translation of assets and liabilities denominated in foreign currencies | (101 | ) | |||||
Net Assets | $ | 664,310 | |||||
Net Assets by Class: | |||||||
Class A | $ | 3,372 | |||||
Class B | 3,575 | ||||||
Class C | 2,418 | ||||||
Class I | 654,945 | ||||||
Shares Outstanding: | |||||||
Class A | 332 | ||||||
Class B | 356 | ||||||
Class C | 242 | ||||||
Class I | 64,471 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 10.15 | |||||
Class B | 10.05 | ||||||
Class C | 10.01 | ||||||
Class I | 10.16 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 10.66 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 7,129 | |||||
Expenses: | |||||||
Management and advisory fees | 2,074 | ||||||
Transfer agent fees: | |||||||
Class A | 3 | ||||||
Class B | 4 | ||||||
Class C | 2 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 2 | ||||||
Custody fees | 47 | ||||||
Administration fees | 62 | ||||||
Legal fees | 7 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 12 | ||||||
Registration fees | 2 | ||||||
Other | 5 | ||||||
Total expenses | 2,230 | ||||||
Net Investment Income (Loss) | 4,899 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 235 | ||||||
Futures contracts | (682 | ) | |||||
Written option and swaption contracts | 229 | ||||||
Swap agreements | (443 | ) | |||||
Foreign currency transactions | 612 | ||||||
(49 | ) | ||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 4,999 | ||||||
Futures contracts | (397 | ) | |||||
Written option and swaption contracts | 125 | ||||||
Swap agreements | 1,429 | ||||||
Translation of assets and liabilities denominated in foreign currencies | (168 | ) | |||||
5,988 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities, Futures Contracts, Written Options and Swaptions, Swaps and Foreign Currency Transactions | 5,939 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 10,838 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 10
TA IDEX PIMCO Real Return TIPS
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 4,899 | $ | 27,941 | |||||||
Net realized gain (loss) from investment securities, futures contracts, written options and swaptions, swaps and foreign currency transactions | (49 | ) | (9,947 | ) | |||||||
Change in unrealized appreciation (depreciation) on investment securities, futures contracts, written options and swaptions, swaps and foreign currency translation | 5,988 | (3,150 | ) | ||||||||
10,838 | 14,844 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (20 | ) | (987 | ) | |||||||
Class B | (24 | ) | (284 | ) | |||||||
Class C | (15 | ) | (200 | ) | |||||||
Class I | (3,899 | ) | (23,731 | ) | |||||||
(3,958 | ) | (25,202 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | – | (4 | ) | ||||||||
Class B | – | (5 | ) | ||||||||
Class C | – | (4 | ) | ||||||||
Class I | – | (265 | ) | ||||||||
– | (278 | ) | |||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 10 | 128 | |||||||||
Class B | 1 | 24 | |||||||||
Class C | 3 | 299 | |||||||||
Class I | 69,239 | 355,682 | |||||||||
69,253 | 356,133 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 15 | 940 | |||||||||
Class B | 18 | 219 | |||||||||
Class C | 11 | 134 | |||||||||
Class I | 3,899 | 23,996 | |||||||||
3,943 | 25,289 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (800 | ) | (272,101 | ) | |||||||
Class B | (1,621 | ) | (4,791 | ) | |||||||
Class C | (697 | ) | (5,364 | ) | |||||||
Class I | (28,589 | ) | (63,907 | ) | |||||||
(31,707 | ) | (346,163 | ) |
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Redemption fees: | |||||||||||
Class B | $ | – | $ | – | (a) | ||||||
Class C | – | – | (a) | ||||||||
– | – | (a) | |||||||||
Automatic conversions: | |||||||||||
Class A | 7 | 12 | |||||||||
Class B | (7 | ) | (12 | ) | |||||||
– | – | ||||||||||
41,489 | 35,259 | ||||||||||
Net increase (decrease) in net assets | 48,369 | 24,623 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 615,941 | 591,318 | |||||||||
End of period | $ | 664,310 | $ | 615,941 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 2,297 | $ | 1,356 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 1 | 13 | |||||||||
Class B | – | (b) | 3 | ||||||||
Class C | – | (b) | 30 | ||||||||
Class I | 6,944 | 35,025 | |||||||||
6,945 | 35,071 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 1 | 93 | |||||||||
Class B | 2 | 22 | |||||||||
Class C | 1 | 13 | |||||||||
Class I | 388 | 2,398 | |||||||||
392 | 2,526 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (80 | ) | (26,811 | ) | |||||||
Class B | (163 | ) | (479 | ) | |||||||
Class C | (70 | ) | (539 | ) | |||||||
Class I | (2,892 | ) | (6,267 | ) | |||||||
(3,205 | ) | (34,096 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 1 | 1 | |||||||||
Class B | (1 | ) | (1 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (77 | ) | (26,704 | ) | |||||||
Class B | (162 | ) | (455 | ) | |||||||
Class C | (69 | ) | (496 | ) | |||||||
Class I | 4,440 | 31,156 | |||||||||
4,132 | 3,501 |
(a) Amount rounds to less than $1.
(b) Share rounds to less than 1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 11
TA IDEX PIMCO Real Return TIPS
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 10.05 | $ | 0.06 | $ | 0.10 | $ | 0.16 | $ | (0.06 | ) | $ | – | $ | (0.06 | ) | $ | 10.15 | ||||||||||||||||||||
10/31/2006 | 10.23 | 0.94 | (0.70 | ) | 0.24 | (0.41 | ) | (0.01 | ) | (0.42 | ) | 10.05 | |||||||||||||||||||||||||||
10/31/2005 | 10.48 | 0.30 | (0.06 | ) | 0.24 | (0.32 | ) | (0.17 | ) | (0.49 | ) | 10.23 | |||||||||||||||||||||||||||
10/31/2004 | 10.10 | 0.02 | 0.76 | 0.78 | (0.02 | ) | (0.38 | ) | (0.40 | ) | 10.48 | ||||||||||||||||||||||||||||
10/31/2003 | 10.00 | 0.14 | 0.07 | 0.21 | (0.11 | ) | – | (0.11 | ) | 10.10 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 9.95 | 0.05 | 0.10 | 0.15 | (0.05 | ) | – | (0.05 | ) | 10.05 | ||||||||||||||||||||||||||||
10/31/2006 | 10.17 | 0.42 | (0.21 | ) | 0.21 | (0.42 | ) | (0.01 | ) | (0.43 | ) | 9.95 | |||||||||||||||||||||||||||
10/31/2005 | 10.42 | 0.23 | (0.09 | ) | 0.14 | (0.22 | ) | (0.17 | ) | (0.39 | ) | 10.17 | |||||||||||||||||||||||||||
10/31/2004 | 10.08 | (0.02 | ) | 0.75 | 0.73 | (0.01 | ) | (0.38 | ) | (0.39 | ) | 10.42 | |||||||||||||||||||||||||||
10/31/2003 | 10.00 | 0.09 | 0.08 | 0.17 | (0.09 | ) | – | (0.09 | ) | 10.08 | |||||||||||||||||||||||||||||
Class C | 4/30/2007 | 9.91 | 0.05 | 0.11 | 0.16 | (0.06 | ) | – | (0.06 | ) | 10.01 | ||||||||||||||||||||||||||||
10/31/2006 | 10.13 | 0.39 | (0.18 | ) | 0.21 | (0.42 | ) | (0.01 | ) | (0.43 | ) | 9.91 | |||||||||||||||||||||||||||
10/31/2005 | 10.39 | 0.23 | (0.09 | ) | 0.14 | (0.23 | ) | (0.17 | ) | (0.40 | ) | 10.13 | |||||||||||||||||||||||||||
10/31/2004 | 10.08 | (0.06 | ) | 0.76 | 0.70 | (0.01 | ) | (0.38 | ) | (0.39 | ) | 10.39 | |||||||||||||||||||||||||||
10/31/2003 | 10.00 | 0.09 | 0.08 | 0.17 | (0.09 | ) | – | (0.09 | ) | 10.08 | |||||||||||||||||||||||||||||
Class I | 4/30/2007 | 10.05 | 0.08 | 0.09 | 0.17 | (0.06 | ) | – | (0.06 | ) | 10.16 | ||||||||||||||||||||||||||||
10/31/2006 | 10.25 | 0.48 | (0.22 | ) | 0.26 | (0.45 | ) | (0.01 | ) | (0.46 | ) | 10.05 | |||||||||||||||||||||||||||
10/31/2005 | 10.45 | 0.37 | (0.04 | ) | 0.33 | (0.36 | ) | (0.17 | ) | (0.53 | ) | 10.25 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 1.55 | % | $ | 3,372 | 0.89 | % | 0.89 | % | 1.15 | % | 148 | % | ||||||||||||||||||
10/31/2006 | 2.36 | 4,107 | 1.07 | 1.07 | 9.24 | 384 | |||||||||||||||||||||||||
10/31/2005 | 2.35 | 277,289 | 1.10 | 1.10 | 2.89 | (h) | 662 | ||||||||||||||||||||||||
10/31/2004 | 7.94 | 330,282 | 1.15 | 1.15 | 0.20 | 1,438 | |||||||||||||||||||||||||
10/31/2003 | 2.09 | 36,531 | 1.65 | 2.03 | 2.07 | 480 | |||||||||||||||||||||||||
Class B | 4/30/2007 | 1.56 | 3,575 | 0.90 | 0.90 | 0.99 | 148 | ||||||||||||||||||||||||
10/31/2006 | 2.09 | 5,155 | 1.28 | 1.28 | 4.21 | (h) | 384 | ||||||||||||||||||||||||
10/31/2005 | 1.39 | 9,896 | 2.00 | 2.00 | 2.26 | (h) | 662 | ||||||||||||||||||||||||
10/31/2004 | 7.51 | 7,496 | 1.51 | 1.51 | (0.20 | ) | 1,438 | ||||||||||||||||||||||||
10/31/2003 | 1.72 | 3,194 | 2.30 | 2.68 | 1.42 | 480 | |||||||||||||||||||||||||
Class C | 4/30/2007 | 1.58 | 2,418 | 0.89 | 0.89 | 1.08 | 148 | ||||||||||||||||||||||||
10/31/2006 | 2.09 | 3,082 | 1.33 | 1.33 | 3.95 | (h) | 384 | ||||||||||||||||||||||||
10/31/2005 | 1.35 | 8,167 | 2.04 | 2.04 | 2.22 | 662 | |||||||||||||||||||||||||
10/31/2004 | 7.20 | 6,601 | 1.87 | 1.87 | (0.52 | ) | 1,438 | ||||||||||||||||||||||||
10/31/2003 | 1.72 | 3,148 | 2.30 | 2.68 | 1.42 | 480 | |||||||||||||||||||||||||
Class I | 4/30/2007 | 1.73 | 654,945 | 0.72 | 0.72 | 1.59 | 148 | ||||||||||||||||||||||||
10/31/2006 | 2.55 | 603,597 | 0.73 | 0.73 | 4.79 | 384 | |||||||||||||||||||||||||
10/31/2005 | 3.20 | 295,966 | 0.73 | 0.73 | 3.60 | 662 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 12
TA IDEX PIMCO Real Return TIPS
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding,
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX PIMCO Real Return TIPS (the "Fund") commenced operations on March 1, 2003. The inception date of the Fund's offering of share Class I was November 8, 2004.
(h) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 13
TA IDEX PIMCO Real Return TIPS
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX PIMCO Real Return TIPS (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
The Fund is "non-diversified" under the 1940 Act.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class I, each with different expense levels. Classes A, B, and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
TBA purchase commitments: The Fund may enter into "TBA" (to be announced) purchase commitments to purchase securities for a fixed price at a future date, typically not to exceed 45 days. TBA purchase commitments 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 Fund's other assets. Unsettled TBA purchase commitments are valued at the current value of the underlying securities, according to the procedures described under Security Valuations.
Loan participations/assignments: The Fund may purchase participations/assignments in commercial loans. Such indebtedness may be secured or unsecured. These investments may include standby financing commitments, including revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loan participations/ assignments involve risks of insolvency of the lending bank or other financial intermediaries. As such, the Fund assumes the credit risk associated with the corporate borrower and may assume the credit risk associated with the interposed bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments. Loan participations typically represent direct participation in a loan to a corporate borrower, and gener ally are offered by banks or other financial institutions or lending syndicates. The Fund may participate in such syndications, or can buy part of a loan, becoming a part lender.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 14
TA IDEX PIMCO Real Return TIPS
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
A loan is often administered by an agent bank acting as agent for all holders. The agent bank administers the terms of the loan, as specified in the loan agreement. In addition, the agent bank is normally responsible for the collection of principal and interest payments from the corporate borrower and the apportionment of these payments to the credit of all institutions that are parties to the loan agreement. Unless, under the terms of the loan or other indebtedness, the portfolio has direct recourse against the corporate borrower, the Fund may have to rely on the agent bank or other financial intermediary to apply appropriate credit remedies against a corporate borrower.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Forward foreign currency contracts: The Fund may enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Contracts are valued at the contractual forward rate and 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 April 30, 2007 are listed in the Schedule of Investments.
Swap agreements: The Fund may enter into swap agreements to manage its exposure to interest rates and credit risk. Interest rate swap agreements involve commitments to pay/receive interest in exchange for a market-linked return, both based on notional amounts. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate issues or sovereign issues of an emerging country, on its obligation. The portfolio may use credit default swaps to provide a measure of protection against defaults of sovereign issuers (i.e., to reduce risk where the portfolio owns or has exposure to the sovereign issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default.
Entering into these agreements involves elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates.
Swaps are marked to market daily based upon quotations from market makers and vendors and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss in the Statement of Operations. Net periodic payments are included as part of realized gain or loss on the Statement of Operations.
Open swap agreements at April 30, 2007 are listed in the Schedule of Investments.
Futures contracts: The Fund may enter into futures contracts to manage exposure to market, interest rate or currency fluctuations. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. The primary risks associated with futures contracts are imperfect correlation between the change in market value of the securities held and the prices of futures contracts; the possibility of an illiquid market and inability of the counterparty to meet the contract terms.
The underlying face amount of open futures contracts at April 30, 2007, are listed in the Schedule of Investments. The variation margin receivable or payable, as applicable, is included in the accompanying Statement of Assets and Liabilities. Variation margin represents the additional payment due or excess deposits made in order to maintain the equity account at the required margin level.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 15
TA IDEX PIMCO Real Return TIPS
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
Option contracts: The Fund may enter into options contracts to manage exposure to 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 imperfect correlation between the change in value of the securities held and the prices of the options contracts; the possibility of an illiquid market; and inability of the counterparty to meet the contracts terms. When the Fund writes a covered call or put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as an asset and as an equivalent liability. Certain options, such as forward volatility options may be written with premiums to be determined on a future date. The premium s for these options are based upon implied volatility parameters at specified terms. Options are marked-to-market daily to reflect the current value of the option written.
Transactions in written options were as follows:
Premium | Contracts* | ||||||||||
Balance at October 31, 2006 | $ | – | – | ||||||||
Sales | 221 | 452 | |||||||||
Closing Buys | – | – | |||||||||
Expirations | (172 | ) | (320 | ) | |||||||
Exercised | – | – | |||||||||
Balance at April 30, 2007 | $ | 49 | 132 |
* Contracts not in thousands
Swaptions contracts: The Fund is authorized to write swaption contracts to manage exposure to fluctuations in interest rates and to enhance fund yield. Swaption contracts written by the Fund represent an option that gives the purchaser the right, but not the obligation, to enter into a previously agreed upon swap contract on a future date. If a written call option is exercised, the writer will enter a swap and is obligated to pay the fixed rate and receive a variable rate in exchange. Swaptions are marked-to-market daily based upon quotations from market makers.
When the Fund writes a swaption, the premium received is recorded as a liability and is subsequently adjusted to the current value of the swaption. Changes in the value of the swaption are reported as Unrealized gains or losses in written options in the Statement of Assets and Liabilities. Gain or loss is recognized when the swaption contract expires or is closed. Premiums received from writing swaptions that expire or are exercised are treated by the Fund as realized gains from written options. The difference between the premium and the amount paid on affecting a closing purchase transaction is treated as a realized gain or loss.
Transactions in written swaptions were as follows:
Premium | Notional Amount | ||||||||||
Balance at October 31, 2006 | $ | 288 | $ | 35,000 | |||||||
Sales | 198 | 54,000 | |||||||||
Closing Buys | (171 | ) | (23,000 | ) | |||||||
Expirations | (182 | ) | (55,000 | ) | |||||||
Exercised | – | – | |||||||||
Balance at April 30, 2007 | $ | 133 | $ | 11,000 |
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last.
For the six months ended April 30, 2007, the Fund received no redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 41,149 | 6.19 | % | |||||||
TA IDEX Asset Allocation– Moderate Portfolio | 109,831 | 16.53 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 112,605 | 16.95 | % | ||||||||
Asset Allocation–Conservative Portfolio | 65,199 | 9.81 | % | ||||||||
Asset Allocation–Moderate Growth Portfolio | 142,333 | 21.43 | % | ||||||||
Asset Allocation–Moderate Portfolio | 180,751 | 27.21 | % | ||||||||
International Moderate Growth Fund | 3,077 | 0.46 | % | ||||||||
Total | $ | 654,945 | 98.58 | % |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 16
TA IDEX PIMCO Real Return TIPS
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.70% of the first $250 million of ANA
0.65% of the next $500 million of ANA
0.60% of ANA over $750 million
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.30% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $9 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $14.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $31. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 17
TA IDEX PIMCO Real Return TIPS
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 30,046 | |||||
U.S. Government | 1,041,643 | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 10,557 | ||||||
U.S. Government | 1,078,525 |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, swap reclass, futures, options and foreign currency transactions.
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 9,731 | October 31, 2014 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 18
TA IDEX PIMCO Real Return TIPS
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX PIMCO Real Return TIPS (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Pacific Investment Management Company LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Inves tment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their dec isions 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment performance . The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser generally had achieved competitive investment performance, noting that the performance of the Fund was competitive with the median relative to its peers over the past one- and two-year periods and better than the median over the past three-year period. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investmen t objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Trustees noted that, although the management fees are above industry median, the Fund's performance has remained competitive overall with peer funds. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 19
TA IDEX PIMCO Real Return TIPS (continued)
and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that, despite the absence of such breakpoints in the sub-advisory fee payable by TFAI to the Sub-Adviser, the sub-advisory fee schedule is consistent with the Sub-Adviser's proprietary mutual fund advisory fees. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scal e. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the i mpact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Real Return TIPS 20
TA IDEX PIMCO Total Return
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,024.20 | 1.06 | % | $ | 5.32 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,019.54 | 1.06 | 5.31 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,025.40 | 1.00 | 5.02 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,019.84 | 1.00 | 5.01 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,025.50 | 0.99 | 4.97 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,019.89 | 0.99 | 4.96 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,025.60 | 0.74 | 3.72 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,021.12 | 0.74 | 3.71 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At April 30, 2007 (unaudited)
This chart shows the percentage breakdown by asset type of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 1
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
U.S. GOVERNMENT OBLIGATIONS (3.5%) | |||||||||||
U.S. Treasury Inflation Indexed Bond 0.88%, due 04/15/2010 | $ | 5,155 | $ | 4,991 | |||||||
2.00%, due 07/15/2014 | 1,727 | 1,712 | |||||||||
2.38%, due 01/15/2025 | 389 | 391 | |||||||||
U.S. Treasury Note 4.63%, due 02/15/2017 | 11,400 | 11,395 | |||||||||
Total U.S. Government Obligations (cost: $18,351) | 18,489 | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (54.7%) | |||||||||||
Fannie Mae 4.00%, due 07/01/2015 | 3,455 | 3,353 | |||||||||
5.50%, due 07/01/2016 | 205 | 206 | |||||||||
5.50%, due 12/01/2016 | 72 | 72 | |||||||||
5.50%, due 01/01/2017 | 91 | 91 | |||||||||
5.50%, due 02/01/2017 | 92 | 92 | |||||||||
5.50%, due 05/01/2017 | 103 | 103 | |||||||||
5.00%, due 11/01/2017 | 600 | 593 | |||||||||
5.00%, due 02/01/2018 | 185 | 182 | |||||||||
5.00%, due 03/01/2018 | 611 | 604 | |||||||||
5.00%, due 05/01/2018 | 36 | 36 | |||||||||
5.00%, due 06/01/2018 | 832 | 822 | |||||||||
5.00%, due 08/01/2018 | 160 | 158 | |||||||||
5.00%, due 05/01/2019 | 258 | 254 | |||||||||
5.00%, due 09/01/2019 | 203 | 200 | |||||||||
5.00%, due 10/01/2019 | 444 | 438 | |||||||||
5.00%, due 11/01/2019 | 762 | 753 | |||||||||
5.00%, due 12/01/2019 | 284 | 280 | |||||||||
5.00%, due 08/01/2020 | 1,236 | 1,219 | |||||||||
5.00%, due 09/01/2020 | 5,046 | 4,977 | |||||||||
7.22%, due 01/01/2026 * | 8 | 8 | |||||||||
7.15%, due 01/01/2028 * | 86 | 87 | |||||||||
5.50%, due 11/01/2032 | 2,250 | 2,231 | |||||||||
5.50%, due 01/01/2033 | 649 | 644 | |||||||||
5.50%, due 04/01/2033 | 4,630 | 4,591 | |||||||||
5.50%, due 07/01/2033 | 192 | 190 | |||||||||
5.50%, due 08/01/2033 | 206 | 204 | |||||||||
4.02%, due 11/01/2033 * | 518 | 514 | |||||||||
5.50%, due 11/01/2033 | 43 | 43 | |||||||||
5.50%, due 01/01/2034 | 446 | 442 | |||||||||
4.16%, due 03/01/2034 * | 888 | 879 | |||||||||
5.50%, due 04/01/2034 | 4,212 | 4,177 | |||||||||
5.50%, due 05/01/2034 | 2,362 | 2,342 | |||||||||
5.50%, due 06/01/2034 | 34 | 34 | |||||||||
5.50%, due 09/01/2034 | 320 | 317 | |||||||||
5.50%, due 11/01/2034 | 2,233 | 2,212 | |||||||||
5.50%, due 01/01/2035 | 3,416 | 3,384 |
Principal | Value | ||||||||||
Fannie Mae (continued) 5.50%, due 02/01/2035 | $ | 9,725 | $ | 9,637 | |||||||
5.50%, due 03/01/2035 | 1,058 | 1,047 | |||||||||
5.50%, due 04/01/2035 | 1,494 | 1,479 | |||||||||
5.50%, due 05/01/2035 | 1,635 | 1,619 | |||||||||
5.50%, due 06/01/2035 | 1,177 | 1,165 | |||||||||
4.74%, due 07/01/2035 * | 1,372 | 1,362 | |||||||||
5.50%, due 07/01/2035 | 657 | 651 | |||||||||
5.50%, due 08/01/2035 | 143 | 142 | |||||||||
4.71%, due 09/01/2035 * | 1,681 | 1,674 | |||||||||
5.50%, due 09/01/2035 | 563 | 558 | |||||||||
5.50%, due 10/01/2035 | 1,903 | 1,885 | |||||||||
5.50%, due 11/01/2035 | 268 | 265 | |||||||||
5.00%, due 03/01/2036 | 1,857 | 1,823 | |||||||||
5.50%, due 04/01/2036 | 941 | 931 | |||||||||
5.50%, due 05/01/2036 | 1,889 | 1,869 | |||||||||
5.67%, due 09/25/2042 * | 801 | 804 | |||||||||
6.18%, due 03/01/2044 * | 3,587 | 3,642 | |||||||||
6.18%, due 10/01/2044 * | 1,529 | 1,554 | |||||||||
Fannie Mae TBA 5.00%, due 05/01/2022 | 7,000 | 6,899 | |||||||||
5.50%, due 05/01/2037 | 101,000 | 99,864 | |||||||||
6.00%, due 05/01/2037 | 53,000 | 53,397 | |||||||||
5.50%, due 06/01/2037 | 8,300 | 8,207 | |||||||||
6.00%, due 06/01/2037 | 6,000 | 6,043 | |||||||||
6.50%, due 06/01/2037 | 7,000 | 7,144 | |||||||||
Fannie Mae, Series 2002-79, Class AD 5.00%, due 07/25/2019 | 84 | 84 | |||||||||
Fannie Mae, Series 2004-49, Class SM 1.78%, due 07/25/2034 *§ | 4,343 | 260 | |||||||||
Freddie Mac 4.00%, due 05/01/2014 | 1,040 | 1,009 | |||||||||
4.50%, due 05/15/2018 | 1,503 | 1,477 | |||||||||
4.50%, due 09/15/2018 | 550 | 539 | |||||||||
5.00%, due 02/15/2020 | 3,917 | 3,896 | |||||||||
5.00%, due 08/15/2020 | 5,968 | 5,935 | |||||||||
5.00%, due 01/15/2026 | 3,115 | 3,099 | |||||||||
5.00%, due 05/15/2026 | 1,564 | 1,560 | |||||||||
6.50%, due 04/15/2029 | 14 | 15 | |||||||||
4.11%, due 11/01/2033 * | 507 | 502 | |||||||||
4.22%, due 03/01/2034 * | 632 | 622 | |||||||||
4.24%, due 03/01/2034 * | 471 | 464 | |||||||||
4.74%, due 09/01/2035 * | 1,563 | 1,554 | |||||||||
5.33%, due 09/01/2035 * | 1,323 | 1,327 | |||||||||
6.50%, due 07/25/2043 | 38 | 39 | |||||||||
6.18%, due 10/25/2044 * | 1,064 | 1,077 | |||||||||
Freddie Mac, Series 2495, Class PD 5.50%, due 03/15/2017 | 300 | 302 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 2
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Freddie Mac, Series 2591, Class QM 4.50%, due 06/15/2017 | $ | 2,968 | $ | 2,922 | |||||||
Freddie Mac, Series 2979, Class QG 5.00%, due 04/15/2026 | 7,721 | 7,690 | |||||||||
Ginnie Mae 6.50%, due 07/15/2023 | 5 | 5 | |||||||||
5.38%, due 05/20/2024 * | 92 | 93 | |||||||||
6.50%, due 02/15/2028 | 143 | 148 | |||||||||
6.50%, due 06/15/2029 | 191 | 198 | |||||||||
6.50%, due 01/15/2030 | 7 | 8 | |||||||||
5.50%, due 03/15/2032 | 58 | 58 | |||||||||
6.50%, due 06/20/2032 | 55 | 57 | |||||||||
5.50%, due 12/15/2032 | 150 | 149 | |||||||||
5.50%, due 12/15/2033 | 222 | 221 | |||||||||
5.50%, due 02/15/2034 | 1,146 | 1,141 | |||||||||
5.50%, due 12/15/2034 | 68 | 68 | |||||||||
5.50%, due 11/15/2035 | 83 | 82 | |||||||||
5.50%, due 05/15/2036 | 1,276 | 1,270 | |||||||||
Ginnie Mae, Series 2003-69, Class SB 1.28%, due 08/16/2033 *§ | 5,129 | 247 | |||||||||
Ginnie Mae, Series 2003-92, Class S 1.24%, due 10/16/2033 *§ | 1,947 | 99 | |||||||||
Ginnie Mae, Series 2003-94, Class SA 1.24%, due 04/16/2033 *§ | 2,052 | 92 | |||||||||
Ginnie Mae, Series 2004-76, Class S 1.28%, due 09/20/2034 *§ | 3,758 | 186 | |||||||||
Total U.S. Government Agency Obligations (cost: $288,892) | 288,888 | ||||||||||
FOREIGN GOVERNMENT OBLIGATIONS (0.3%) | |||||||||||
Hong Kong Government–144A 5.13%, due 08/01/2014 | 400 | 401 | |||||||||
Korea Highway Corp.–144A 5.13%, due 05/20/2015 | 200 | 197 | |||||||||
Malaysia Government 7.50%, due 07/15/2011 | 10 | 11 | |||||||||
Republic of Brazil 10.25%, due 01/10/2028 | BRL | 1,000 | 542 | ||||||||
Republic of South Africa 5.25%, due 05/16/2013 | EUR | 90 | 126 | ||||||||
Total Foreign Government Obligations (cost: $1,169) | 1,277 | ||||||||||
MORTGAGE-BACKED SECURITIES (10.9%) | |||||||||||
Banc of America Funding Corp., Series 2005-D, Class A1 4.11%, due 05/25/2035 * | 1,819 | 1,790 | |||||||||
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-8, Class 2A1 4.78%, due 01/25/2034 * | 52 | 52 |
Principal | Value | ||||||||||
Bear Stearns Adjustable Rate Mortgage Trust, Series 2003-8, Class 4A1 4.62%, due 01/25/2034 * | $ | 89 | $ | 89 | |||||||
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-9, Class A1 4.63%, due 10/25/2035 * | 935 | 921 | |||||||||
Bear Stearns ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AB, Class A1B1 5.82%, due 11/25/2036 * | 607 | 611 | |||||||||
Bear Stearns Asset Backed Securities, Inc., Series 2006-SD4, Class 1A1 5.46%, due 10/25/2036 * | 1,583 | 1,570 | |||||||||
CC Mortgage Funding Corp., Series 2004-3A, Class A1–144A 5.57%, due 08/25/2035 *m | 766 | 768 | |||||||||
Citigroup Commercial Mortgage Trust, Series 2006-FL2, Class A1–144A 5.39%, due 11/15/2036 | 497 | 497 | |||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2006-AR1, Class IA1 4.90%, due 10/25/2035 | 1,903 | 1,888 | |||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH3, Class A1 5.37%, due 10/25/2036 * | 915 | 915 | |||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH3, Class A2 5.42%, due 10/25/2036 * | 1,300 | 1,299 | |||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2006-WMC1, Class A2A 5.40%, due 12/25/2035 * | 269 | 269 | |||||||||
Countrywide Alternative Loan Trust, Series 2003-J11, Class 4A1 6.00%, due 10/25/2032 | 13 | 13 | |||||||||
Countrywide Alternative Loan Trust, Series 2005-11CB, Class 2A8 4.50%, due 06/25/2035 | 604 | 597 | |||||||||
Countrywide Alternative Loan Trust, Series 2005-81, Class A1 5.60%, due 02/25/2037 * | 897 | 900 | |||||||||
Countrywide Alternative Loan Trust, Series 2007-OA6, Class A1B 5.52%, due 05/25/2037 m | 1,800 | 1,800 | |||||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2002-30, Class M 3.82%, due 10/19/2032 * | 73 | 73 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 3
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-12, Class 12A1 4.71%, due 08/25/2034 * | $ | 876 | $ | 872 | |||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-7, Class 1A2 5.59%, due 05/25/2034 * | 6 | 6 | |||||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2004-R1, Class 2A–144A 6.50%, due 11/25/2034 | 1,105 | 1,131 | |||||||||
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-R2, Class 1AF1–144A 5.66%, due 06/25/2035 * | 3,097 | 3,110 | |||||||||
Credit Suisse First Boston Mortgage Securities Corp., Series 2002-P1, Class A1 5.95%, due 03/25/2032 | 2 | 2 | |||||||||
Credit-Based Asset Servicing and Securitization LLC, Series 2007-SP1, Class A1 5.41%, due 12/25/2037 * | 1,757 | 1,756 | |||||||||
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2006-AR6, Class A1 5.40%, due 02/25/2037 * | 1,255 | 1,255 | |||||||||
Deutsche ALT-A Securities, Inc. Alternate Loan Trust, Series 2007-AR1, Class A3B 5.39%, due 01/25/2047 * | 1,651 | 1,651 | |||||||||
GS Mortgage Securities Corp. II, Series 1998-C1, Class A2 6.62%, due 10/18/2030 | 1,022 | 1,031 | |||||||||
GSR Mortgage Loan Trust, Series 2005-AR6, Class 2A1 4.54%, due 09/25/2035 * | 278 | 275 | |||||||||
Harborview Mortgage Loan Trust, Series 2006-1, Class 2A1A 5.56%, due 03/19/2037 * | 2,624 | 2,629 | |||||||||
Harborview Mortgage Loan Trust, Series 2006-12, Class 2A2A 5.51%, due 01/19/2038 * | 1,208 | 1,209 | |||||||||
Harborview Mortgage Loan Trust, Series 2006-122, Class A1A1 5.41%, due 01/19/2038 * | 1,050 | 1,051 |
Principal | Value | ||||||||||
Harborview Mortgage Loan Trust, Series 2007-1, Class 2A1A 5.45%, due 04/19/2038 * | $ | 2,069 | $ | 2,068 | |||||||
HSI Asset Securitization Corp. Trust, Series 2007-OPT1, Class 2A1 5.37%, due 02/25/2037 * | 1,860 | 1,860 | |||||||||
Indymac Index Mortgage Loan Trust, Series 2006-AR14, Class 1A1A 5.41%, due 11/25/2046 * | 1,167 | 1,167 | |||||||||
JP Morgan Mortgage Trust, Series 2007-A1, Class 5A5 4.77%, due 07/25/2035 * | 1,935 | 1,919 | |||||||||
Lehman XS Trust, Series 2006-10N, Class 1A1A 5.40%, due 07/25/2046 * | 686 | 686 | |||||||||
Mellon Residential Funding Corp., Series 2000-TBC3, Class A1 5.76%, due 12/15/2030 * | 777 | 780 | |||||||||
Morgan Stanley Capital I, Series 2007-XLFA, Class A1–144A 5.38%, due 10/15/2020 *m | 1,825 | 1,825 | |||||||||
Newcastle Mortgage Securities Trust, Series 2006-1, Class A1 5.39%, due 03/25/2036 * | 506 | 505 | |||||||||
Residential Accredit Loans, Inc., Series 2006-QO3, Class A1 5.53%, due 04/25/2046 * | 927 | 925 | |||||||||
Residential Accredit Loans, Inc., Series 2006-QO7, Class 3A1 5.42%, due 09/25/2046 *m | 1,105 | 1,104 | |||||||||
Residential Asset Securities Corp., Series 2006-EMX9, Class 1A1 5.39%, due 11/25/2036 * | 1,174 | 1,174 | |||||||||
Residential Funding Mortgage Securities I, Series 2003-S9, Class A1 6.50%, due 03/25/2032 | 13 | 12 | |||||||||
Sequoia Mortgage Trust, Series 10, Class 2A1 5.70%, due 10/20/2027 * | 70 | 70 | |||||||||
Small Business Administration Participation, Series 2003-201 5.13%, due 09/01/2023 | 77 | 77 | |||||||||
Small Business Administration, Series 2004-20C 4.34%, due 03/01/2024 | 491 | 468 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 4
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-19, Class 2A1 6.41%, due 01/25/2035 *m | $ | 406 | $ | 408 | |||||||
Structured Asset Mortgage Investments, Inc., Series 2002-AR3, Class A-1 5.65%, due 09/19/2032 * | 44 | 44 | |||||||||
Structured Asset Mortgage Investments, Inc., Series 2005-AR8, Class A1 5.60%, due 02/25/2036 m | 868 | 867 | |||||||||
Structured Asset Mortgage Investments, Inc., Series 2006-AR3, Class 2A1 5.54%, due 05/25/2036 * | 972 | 973 | |||||||||
TBW Mortgage Backed Pass Through Certificates, Series 2006-6, Class A1 5.43%, due 01/25/2037 * | 1,274 | 1,274 | |||||||||
Thornburg Mortgage Securities Trust, Series 2006-6, Class A1 5.43%, due 12/25/2036 * | 1,374 | 1,373 | |||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2002-C1, Class A2 5.68%, due 04/15/2034 | 686 | 688 | |||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-WHL7, Class A1 5.41%, due 09/15/2021 * | 1,659 | 1,659 | |||||||||
Washington Mutual, Inc., Series 2002-AR9, Class 1A 6.41%, due 08/25/2042 * | 36 | 36 | |||||||||
Washington Mutual, Inc., Series 2006-AR19, Class 1A1A 5.71%, due 01/25/2047 *m | 1,472 | 1,476 | |||||||||
Washington Mutual, Inc., Series 2006-AR9, Class 2A 5.88%, due 08/25/2046 * | 1,032 | 1,038 | |||||||||
Washington Mutual, Series 2002-AR10, Class A6 4.82%, due 10/25/2032 * | 12 | 12 | |||||||||
Washington Mutual, Series 2002-AR2, Class A 5.63%, due 02/27/2034 * | 37 | 37 | |||||||||
Washington Mutual, Series 2003-R1, Class A1 5.86%, due 12/25/2027 * | 1,419 | 1,419 | |||||||||
Wells Fargo Mortgage Backed Securities Trust, Series 2003-13, Class A5 4.50%, due 11/25/2018 | 841 | 823 |
Principal | Value | ||||||||||
Wells Fargo Mortgage Backed Securities Trust, Series 2006-AR11, Class A2 5.53%, due 08/25/2036 * | $ | 510 | $ | 508 | |||||||
Total Mortgage-Backed Securities (cost: $57,255) | 57,305 | ||||||||||
ASSET-BACKED SECURITIES (16.8%) | |||||||||||
Accredited Mortgage Loan Trust, Series 2007-1, Class A1 5.37%, due 02/25/2037 * | 1,850 | 1,850 | |||||||||
ACE Securities Corp., Series 2006-NC1, Class A2B | |||||||||||
5.39%, due 12/25/2035 * | 354 | 355 | |||||||||
5.47%, due 12/25/2035 * | 1,100 | 1,100 | |||||||||
ACE Securities Corp., Series 2006-NC3, Class A2A 5.37%, due 12/25/2036 * | 644 | 644 | |||||||||
American Express Credit Account Master Trust, Series 2005-3, Class A 5.32%, due 01/18/2011 * | 2,400 | 2,397 | |||||||||
Amortizing Residential Collateral Trust, Series 2002-BC4, Class A 5.61%, due 07/25/2032 * | 4 | 4 | |||||||||
Argent Securities, Inc., Series 2006-M3, Class A2A 5.37%, due 10/25/2036 * | 883 | 883 | |||||||||
Argent Securities, Inc., Series 2006-W1, Class A2A 5.40%, due 03/25/2036 * | 281 | 281 | |||||||||
Asset Backed Funding Certificates, Series 2004-OPT5, Class A1 5.67%, due 06/25/2034 * | 629 | 630 | |||||||||
Asset Backed Funding Certificates, Series 2006-HE1, Class A2A 5.38%, due 01/25/2037 * | 1,305 | 1,305 | |||||||||
Asset Backed Funding Certificates, Series 2006-OPT2, Class A3A 5.38%, due 10/25/2036 * | 824 | 824 | |||||||||
Bank One Issuance Trust, Series 2002-1A, Class A 5.43%, due 01/15/2010 * | 1,600 | 1,600 | |||||||||
Bank One Issuance Trust, Series 2004-4A, Class A 5.36%, due 02/16/2010 * | 2,600 | 2,600 | |||||||||
Bear Stearns Asset Backed Securities, Inc., Series 2002-2, Class A1 5.65%, due 10/25/2032 * | 33 | 33 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 5
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Bear Stearns Asset Backed Securities, Inc., Series 2007-AQ1, Class A1 5.43%, due 11/25/2036 * | $ | 1,837 | $ | 1,837 | |||||||
Carrington Mortgage Loan Trust, Series 2006-NC4, Class A1 5.37%, due 10/25/2036 * | 1,378 | 1,377 | |||||||||
Citigroup Mortgage Loan Trust, Inc., Series 2007-AHL1, Class A2A–144A 5.36%, due 12/25/2036 * | 2,006 | 2,006 | |||||||||
Countrywide Asset-Backed Certificates, Series 2006-1, Class AF1 5.45%, due 07/25/2036 * | 203 | 203 | |||||||||
Countrywide Asset-Backed Certificates, Series 2006-23, Class 2A1 5.37%, due 05/25/2037 * | 2,706 | 2,705 | |||||||||
Countrywide Asset-Backed Certificates, Series 2006-26, Class 2A1 5.40%, due 06/25/2037 * | 1,866 | 1,865 | |||||||||
Countrywide Asset-Backed Certificates, Series 2006-SD1, Class A1–144A 5.48%, due 02/25/2036 * | 365 | 365 | |||||||||
Countrywide Asset-Backed Certificates, Series 2007-1, Class 2A1 5.37%, due 07/25/2037 * | 2,042 | 2,042 | |||||||||
Countrywide Asset-Backed Certificates, Series 2007-7, Class 2A1 5.40%, due 05/25/2037 m | 400 | 400 | |||||||||
Credit-Based Asset Servicing and Securitization LLC, Series 2007-CB1, Class AF1A 5.39%, due 01/25/2037 * | 1,978 | 1,978 | |||||||||
Credit-Based Asset Servicing and Securitization, Series 2005-CB4, Class AV1 5.42%, due 08/25/2035 * | 245 | 245 | |||||||||
First Franklin Mortgage Loan Asset Backed Certificates, Series 2005-FF1, Class A2C 5.69%, due 12/25/2034 * | 1,197 | 1,198 | |||||||||
First Franklin Mortgage Loan Asset Backed Certificates, Series 2007-FF1, Class A2A 5.36%, due 01/25/2038 * | 1,724 | 1,724 | |||||||||
Fremont Home Loan Trust, Series 2006-E, Class 2A1 5.38%, due 01/25/2037 * | 1,399 | 1,397 | |||||||||
GSAMP Trust, Series 2006-S2, Class A1A 5.39%, due 01/25/2036 * | 360 | 360 |
Principal | Value | ||||||||||
HFC Home Equity Loan Asset Backed Certificates, Series 2006-4, Class A1V 5.39%, due 03/20/2036 * | $ | 511 | $ | 511 | |||||||
Home Equity Asset Trust, Series 2002-1, Class A4 5.92%, due 11/25/2032 * | 1 | 1 | |||||||||
Honda Auto Receivables Owner Trust, Series 2006-3, Class A1 5.34%, due 11/15/2007 | 445 | 445 | |||||||||
Honda Auto Receivables Owner Trust, Series 2007-1, Class A1 5.32%, due 03/18/2008 | 3,583 | 3,583 | |||||||||
HSI Asset Securitization Corp. Trust, Series 2006-OPT1, Class 2A1 5.40%, due 12/25/2035 * | 298 | 298 | |||||||||
Hyundai Auto Receivables Trust, Series 2006-B, Class A1 5.35%, due 11/15/2007 | 207 | 207 | |||||||||
Indymac Residential Asset Backed Trust, Series 2006-A, Class A1 5.41%, due 03/25/2036 * | 414 | 414 | |||||||||
JP Morgan Mortgage Acquisition Corp., Series 2006-CH1, Class A2 5.37%, due 11/25/2028 * | 762 | 762 | |||||||||
JP Morgan Mortgage Acquisition Corp., Series 2006-CH2, Class AV2 5.37%, due 10/25/2036 * | 3,090 | 3,087 | |||||||||
Lehman XS Trust, Series 2006-16N, Class A1A 5.40%, due 11/25/2046 * | 1,080 | 1,080 | |||||||||
Lehman XS Trust, Series 2006-17, Class WF11 5.44%, due 11/25/2036 * | 911 | 912 | |||||||||
Long Beach Mortgage Loan Trust, Series 2006-9, Class 2A1 5.38%, due 10/25/2036 * | 1,039 | 1,039 | |||||||||
Long Beach Mortgage Loan Trust, Series 2006-WL1, Class IIA1 5.41%, due 01/25/2036 * | 752 | 752 | |||||||||
MASTR Asset Backed Securities Trust, Series 2005-NC2, Class A1 5.43%, due 11/25/2035 * | 351 | 351 | |||||||||
MBNA Credit Card Master Note Trust, Series 2002-4B, Class B 5.82%, due 03/15/2010 * | 1,100 | 1,102 | |||||||||
MBNA Credit Card Master Note Trust, Series 2002-A9, Class A9 5.45%, due 12/15/2009 * | 2,600 | 2,601 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 6
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
MBNA Credit Card Master Note Trust, Series 2003-A3, Class A3 5.44%, due 08/16/2010 * | $ | 2,100 | $ | 2,102 | |||||||
Merrill Lynch Mortgage Investors, Inc., Series 2006-FF1, Class A2A 5.39%, due 08/25/2036 * | 1,273 | 1,272 | |||||||||
Mid-State Trust, Series 4, Class A 8.33%, due 04/01/2030 | 393 | 414 | |||||||||
Morgan Stanley ABS Capital I, Series 2006-HE7, Class A2A 5.37%, due 09/25/2036 * | 1,007 | 1,006 | |||||||||
Morgan Stanley ABS Capital I, Series 2006-HE8, Class A2A 5.37%, due 10/25/2036 * | 1,218 | 1,217 | |||||||||
Morgan Stanley ABS Capital I, Series 2007-HE2, Class A2A 5.36%, due 01/25/2037 * | 1,998 | 1,998 | |||||||||
Morgan Stanley ABS Capital I, Series 2007-NC1, Class A2A 5.37%, due 11/25/2036 * | 1,764 | 1,763 | |||||||||
Morgan Stanley Home Equity Loans, Series 2007-1, Class A1 5.37%, due 12/25/2036 | 3,176 | 3,176 | |||||||||
Morgan Stanley Mortgage Loan Trust, Series 2007-3XS, Class 2A1A 5.39%, due 02/25/2047 * | 2,147 | 2,148 | |||||||||
Nelnet Student Loan Trust, Series 2005-2, Class A2 5.36%, due 12/22/2014 * | 628 | 628 | |||||||||
NSTAR, Series 2007-A, Class A1 5.38%, due 03/25/2037 | 1,623 | 1,623 | |||||||||
Option One Mortgage Loan Trust, Series 2007-1, Class 2A1 5.37%, due 01/25/2037 * | 1,623 | 1,623 | |||||||||
Park Place Securities, Inc., Series 2005-WCW1, Class A1B 5.58%, due 09/25/2035 * | 162 | 162 | |||||||||
Quest Trust, Series 2004-X2, Class A–144A 5.88%, due 06/25/2034 * | 8 | 8 | |||||||||
RACERS Series 1997-R-8-3–144A 5.66%, due 08/15/2007 *§m | 300 | 300 | |||||||||
Residential Asset Mortgage Products, Inc., Series 2006-NC1, Class A1 5.40%, due 01/25/2036 * | 133 | 133 | |||||||||
Residential Asset Mortgage Products, Inc., Series 2006-RS1, Class AI1 5.40%, due 01/25/2036 * | 267 | 267 |
Principal | Value | ||||||||||
Residential Asset Securities Corp., Series 2006-EMX1, Class A1 5.40%, due 01/25/2036 * | $ | 325 | $ | 325 | |||||||
Residential Asset Securities Corp., Series 2006-KS5, Class A1 5.39%, due 07/25/2036 * | 590 | 590 | |||||||||
Residential Asset Securities Corp., Series 2006-KS9, Class A11 5.39%, due 11/25/2036 * | 1,179 | 1,179 | |||||||||
Residential Asset Securities Corp., Series 2007-KS2, Class AI1 5.39%, due 02/25/2037 | 2,781 | 2,781 | |||||||||
Saxon Asset Securities Trust, Series 2006-3, Class A1 5.38%, due 11/25/2036 * | 886 | 885 | |||||||||
SBI Heloc Trust, Series 2006-1, Class 1A2A-144A 5.49%, due 08/25/2036 * | 159 | 159 | |||||||||
Securitized Asset Backed Receivables LLC Trust, Series 2007-HE1, Class A2A 5.38%, due 12/25/2036 * | 1,667 | 1,667 | |||||||||
SLM Student Loan Trust, Series 2006-9, Class A1 5.33%, due 10/25/2012 * | 578 | 578 | |||||||||
SLM Student Loan Trust, Series 2007-1, Class A1 5.33%, due 04/25/2012 * | 931 | 932 | |||||||||
SLM Student Loan Trust, Series 2007-3, Class A1 5.35%, due 10/27/2014 | 2,326 | 2,326 | |||||||||
Small Business Administration, Series 2004-P10, Class A 4.50%, due 02/10/2014 | 216 | 210 | |||||||||
Soundview Home Equity Loan Trust, Series 2006-3, Class A1 5.36%, due 11/25/2036 * | 1,089 | 1,088 | |||||||||
Structured Asset Securities Corp., Series 2002-HF1, Class A 5.61%, due 01/25/2033 * | 4 | 4 | |||||||||
Structured Asset Securities Corp., Series 2006-BC3, Class A2 5.37%, due 10/25/2036 * | 1,046 | 1,046 | |||||||||
Structured Asset Securities Corp., Series 2006-BC6, Class A2 5.40%, due 01/25/2037 * | 1,440 | 1,440 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 7
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Triad Auto Receivables Owner Trust, Series 2006-C, Class A1 5.34%, due 11/13/2007 | $ | 51 | $ | 51 | |||||||
Wells Fargo Home Equity Trust, Series 2005-3, Class AII1 5.43%, due 11/25/2035 * | 669 | 669 | |||||||||
Wells Fargo Home Equity Trust, Series 2006-3, Class A1 5.37%, due 01/25/2037 * | 1,435 | 1,435 | |||||||||
Total Asset-Backed Securities (cost: $88,577) | 88,558 | ||||||||||
MUNICIPAL BONDS (0.6%) | |||||||||||
Revenue–Education (0.0%) | |||||||||||
Chicago, IL, Board of Education 5.00%, due 12/01/2012 | 255 | 271 | |||||||||
Revenue–Tobacco (0.1%) | |||||||||||
Tobacco Settlement Financing Corp., LA 5.88%, due 05/15/2039 | 40 | 43 | |||||||||
Tobacco Settlement Financing Corp., VA 5.25%, due 06/01/2019 | 200 | 209 | |||||||||
5.50%, due 06/01/2026 | 200 | 213 | |||||||||
Revenue–Transportation (0.5%) | |||||||||||
Chicago, IL, Drivers Series 1287 5.84%, due 01/01/2014 * | 2,430 | 2,617 | |||||||||
Total Municipal Bonds (cost: $3,186) | 3,353 | ||||||||||
CORPORATE DEBT SECURITIES (20.5%) | |||||||||||
Air Transportation (0.1%) | |||||||||||
Continental Airlines, Inc. 7.06%, due 09/15/2009 | 200 | 207 | |||||||||
UAL Corp. 6.20%, due 09/01/2008 | 144 | 146 | |||||||||
6.60%, due 09/01/2013 | 63 | 64 | |||||||||
Amusement & Recreation Services (0.2%) | |||||||||||
Mandalay Resort Group 6.50%, due 07/31/2009 | 200 | 203 | |||||||||
Mirage Resorts, Inc. 6.75%, due 02/01/2008 | 1,000 | 1,005 | |||||||||
Automotive (0.5%) | |||||||||||
DaimlerChrysler NA Holding Corp., (MTN) 5.69%, due 03/13/2009 * | 300 | 301 | |||||||||
DaimlerChrysler NA Holding Corp., Series E, (MTN) 5.89%, due 10/31/2008 * | 2,000 | 2,010 | |||||||||
General Motors Acceptance Corp. 5.85%, due 01/14/2009 | 300 | 297 |
Principal | Value | ||||||||||
Business Credit Institutions (0.5%) | |||||||||||
General Electric Capital Corp., Series G, (MTN) 5.37%, due 03/12/2010 * | $ | 2,800 | $ | 2,800 | |||||||
Chemicals & Allied Products (0.1%) | |||||||||||
Equistar Chemicals, LP/Equistar Funding Corp. 10.13%, due 09/01/2008 | 600 | 633 | |||||||||
Commercial Banks (8.8%) | |||||||||||
Bank of America NA 5.35%, due 12/18/2008 * | 1,600 | 1,600 | |||||||||
5.36%, due 02/27/2009 * | 3,000 | 3,000 | |||||||||
Bank of Ireland 5.36%, due 12/19/2008 * | 1,600 | 1,601 | |||||||||
Banque Nationale de Paris/New York 5.26%, due 05/28/2008 * | 1,500 | 1,500 | |||||||||
BNP Paribas NY Branch CD 5.26%, due 04/03/2008 | 1,000 | 1,000 | |||||||||
China Development Bank 5.00%, due 10/15/2015 | 100 | 99 | |||||||||
European Investment Bank 2.13%, due 09/20/2007 | JPY | 200,000 | 1,683 | ||||||||
Export-Import Bank of China–144A 5.25%, due 07/29/2014 | 250 | 250 | |||||||||
Export-Import Bank Of Korea–144A 5.57%, due 10/04/2011 * | 2,500 | 2,500 | |||||||||
Fortis Bank SA/NV–New York, NY 5.27%, due 04/28/2008 * | 2,800 | 2,801 | |||||||||
5.30%, due 09/30/2008 * | 2,400 | 2,399 | |||||||||
General Electric Capital Corp., (MTN) 5.43%, due 01/20/2010 * | 2,000 | 2,003 | |||||||||
HSBC Capital Funding LP–144A 10.18%, due 06/30/2030 (a)(b) | 150 | 219 | |||||||||
KBC Bank Fund Trust III Preferred–144A 9.86%, due 11/02/2009 (a)(b) | 15 | 17 | |||||||||
Nordea Bank Finland PLC/New York, NY 5.30%, due 05/28/2008 * | 1,500 | 1,500 | |||||||||
Nykredit Realkredit A/S 4.83%, due 10/01/2038 * | DKK | 2,900 | 519 | ||||||||
4.83%, due 10/01/2038 * | DKK | 2,888 | 521 | ||||||||
Rabobank Capital Funding II–144A 5.26%, due 12/31/2013 (a)(b) | 210 | 205 | |||||||||
Rabobank Capital Funding Trust III–144A 5.25%, due 10/21/2016 (a)(b) | 280 | 270 | |||||||||
Rabobank Nederland, Series E 0.20%, due 06/20/2008 | JPY | 449,000 | 3,731 | ||||||||
Rabobank Nederland–144A 5.38%, due 01/15/2009 * | 1,100 | 1,100 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 8
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Banks (continued) | |||||||||||
Realkredit Danmark A/S 5.00%, due 10/01/2038 * | DKK | 2,986 | $ | 539 | |||||||
Realkredit Danmark A/S, Series 83D 5.00%, due 10/01/2038 * | DKK | 8,595 | 1,542 | ||||||||
Royal Bank of Canada/New York 5.38%, due 06/30/2008 * | $ | 1,600 | 1,601 | ||||||||
Santander US Debt SA Unipersonal, Senior Note–144A 5.41%, due 11/20/2009 * | 1,500 | 1,504 | |||||||||
Santander US Debt SA Unipersonal–144A 5.42%, due 02/06/2009 * | 1,100 | 1,102 | |||||||||
Skandinav Enskilda BK/NY 5.27%, due 10/03/2007 * | 1,400 | 1,400 | |||||||||
Skandinaviska Enskilda Banken AB/New York, NY 5.34%, due 08/21/2008 | 2,200 | 2,200 | |||||||||
Societe Generale/New York 5.27%, due 03/28/2008 * | 2,000 | 2,001 | |||||||||
Sumitomo Mitsui Banking–144A 5.63%, due 10/15/2015 (a)(b) | 150 | 148 | |||||||||
Unicredit Luxembourg Finance SA–144A 5.41%, due 10/24/2008 * | 1,300 | 1,300 | |||||||||
Unicredito Italiano/New York 5.36%, due 05/29/2008 * | 1,600 | 1,600 | |||||||||
VTB Capital SA for Vneshtorgbank–144A 5.96%, due 08/01/2008 * | 700 | 701 | |||||||||
Wachovia Bank NA/Old 5.36%, due 02/23/2009 * | 2,300 | 2,300 | |||||||||
Department Stores (0.3%) | |||||||||||
Wal-Mart Stores, Inc. 5.25%, due 06/16/2008 * | 1,600 | 1,599 | |||||||||
Electric Services (0.7%) | |||||||||||
CMS Energy Corp., Senior Note 9.88%, due 10/15/2007 | 1,000 | 1,016 | |||||||||
Florida Power Corp. 4.80%, due 03/01/2013 | 450 | 440 | |||||||||
Mission Energy Holding Co. 13.50%, due 07/15/2008 | 1,000 | 1,092 | |||||||||
NRG Energy, Inc. 7.25%, due 02/01/2014 | 600 | 621 | |||||||||
PSEG Power LLC 6.95%, due 06/01/2012 | 210 | 225 | |||||||||
TXU Energy Co. LLC–144A 5.85%, due 09/16/2008 * | 100 | 100 |
Principal | Value | ||||||||||
Electric, Gas & Sanitary Services (0.1%) | |||||||||||
Entergy Gulf States, Inc. 5.70%, due 06/01/2015 | $ | 200 | $ | 197 | |||||||
Niagara Mohawk Power Corp. 7.75%, due 10/01/2008 | 250 | 258 | |||||||||
Waste Management, Inc. 6.38%, due 11/15/2012 | 75 | 79 | |||||||||
Food & Kindred Products (0.5%) | |||||||||||
Kellogg Co. 6.60%, due 04/01/2011 | 2,000 | 2,100 | |||||||||
Reynolds American, Inc., Senior Note 7.63%, due 06/01/2016 † | 200 | 219 | |||||||||
Food Stores (0.2%) | |||||||||||
Albertsons LLC, Senior Note 6.95%, due 08/01/2009 | 1,200 | 1,236 | |||||||||
Gas Production & Distribution (0.3%) | |||||||||||
Ras Laffan Liquefied Natural Gas Co., Ltd.–144A 3.44%, due 09/15/2009 | 48 | 47 | |||||||||
SEMCO Energy, Inc., Senior Note 7.13%, due 05/15/2008 | 1,100 | 1,110 | |||||||||
Sonat, Inc. 7.63%, due 07/15/2011 | 370 | 398 | |||||||||
Southern Natural Gas Co. 8.00%, due 03/01/2032 | 100 | 120 | |||||||||
Holding & Other Investment Offices (0.4%) | |||||||||||
Ventas Realty, LP/Ventas Capital Corp. REIT, Senior Note 8.75%, due 05/01/2009 | 700 | 740 | |||||||||
6.75%, due 06/01/2010 | 1,500 | 1,534 | |||||||||
Hotels & Other Lodging Places (0.1%) | |||||||||||
Park Place Entertainment Corp. 7.50%, due 09/01/2009 | 350 | 364 | |||||||||
Instruments & Related Products (0.2%) | |||||||||||
Xerox Corp., Senior Note 9.75%, due 01/15/2009 | 1,100 | 1,178 | |||||||||
Insurance (0.5%) | |||||||||||
American International Group, Inc.–144A 5.35%, due 06/23/2008 * | 2,300 | 2,300 | |||||||||
Mortgage Bankers & Brokers (0.2%) | |||||||||||
C8 Capital SPV, Ltd.–144A 6.64%, due 12/31/2014 (a)(b) | 1,000 | 1,003 | |||||||||
Petroleum Export/Cayman–144A 5.27%, due 06/15/2011 | 150 | 147 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 9
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Motion Pictures (0.0%) | |||||||||||
Time Warner, Inc. 6.88%, due 05/01/2012 | $ | 20 | $ | 21 | |||||||
Oil & Gas Extraction (0.1%) | |||||||||||
Gaz Capital for Gazprom 8.63%, due 04/28/2034 | 500 | 651 | |||||||||
Paper & Allied Products (0.2%) | |||||||||||
Bowater Canada Finance Corp. 7.95%, due 11/15/2011 | 1,210 | 1,183 | |||||||||
Personal Credit Institutions (3.0%) | |||||||||||
American Honda Finance Corp., (MTN)–144A 5.40%, due 03/09/2009 * | 2,000 | 2,004 | |||||||||
Ford Motor Credit Co. 4.95%, due 01/15/2008 | 400 | 396 | |||||||||
7.25%, due 10/25/2011 | 1,100 | 1,077 | |||||||||
7.00%, due 10/01/2013 | 700 | 662 | |||||||||
General Motors Acceptance Corp. 4.38%, due 12/10/2007 | 300 | 297 | |||||||||
HSBC Finance Corp. 5.43%, due 03/12/2010 * | 2,400 | 2,400 | |||||||||
6.38%, due 10/15/2011 | 4,500 | 4,693 | |||||||||
HSBC Finance Corp., (MTN) 5.49%, due 12/05/2008 * | 2,100 | 2,105 | |||||||||
SLM Corp., Series X, (MTN)–144A 5.33%, due 04/18/2008 *m | 2,000 | 1,986 | |||||||||
Petroleum Refining (0.0%) | |||||||||||
Enterprise Products Operating, LP 4.95%, due 06/01/2010 | 100 | 99 | |||||||||
Security & Commodity Brokers (1.5%) | |||||||||||
Citigroup, Inc. 5.39%, due 12/26/2008 * | 1,500 | 1,500 | |||||||||
Lehman Brothers Holdings, Inc. 5.40%, due 12/23/2008 * | 1,600 | 1,601 | |||||||||
Lehman Brothers Holdings, Inc., (MTN) 5.45%, due 10/22/2008 * | 200 | 200 | |||||||||
Merrill Lynch & Co., Inc. 5.40%, due 10/23/2008 * | 1,300 | 1,300 | |||||||||
5.38%, due 12/22/2008 * | 300 | 300 | |||||||||
Morgan Stanley 5.81%, due 10/18/2016 * | 2,800 | 2,805 | |||||||||
Stone, Clay & Glass Products (0.2%) | |||||||||||
Owens-Brockway 8.88%, due 02/15/2009 | 1,100 | 1,122 |
Principal | Value | ||||||||||
Telecommunications (1.6%) | |||||||||||
BellSouth Corp.–144A 4.24%, due 04/26/2008 | $ | 4,300 | $ | 4,259 | |||||||
Cingular Wireless LLC 6.50%, due 12/15/2011 | 180 | 190 | |||||||||
Deutsche Telekom International Finance BV 8.13%, due 05/29/2012 (c) | EUR | 124 | 195 | ||||||||
France Telecom SA 6.75%, due 03/14/2008 (d) | EUR | 307 | 427 | ||||||||
KT Corp.–144A 4.88%, due 07/15/2015 | 200 | 192 | |||||||||
Nippon Telegraph & Telephone Corp. 2.50%, due 07/25/2007 | JPY | 190,000 | 1,597 | ||||||||
Qwest Capital Funding, Inc. 6.38%, due 07/15/2008 † | 1,000 | 1,004 | |||||||||
SBC Communications, Inc. 4.13%, due 09/15/2009 | 575 | 562 | |||||||||
Tobacco Products (0.2%) | |||||||||||
Reynolds American, Inc., Senior Secured Note 7.75%, due 06/01/2018 † | 1,000 | 1,110 | |||||||||
Total Corporate Debt Securities (cost: $107,634) | 108,183 | ||||||||||
LOAN ASSIGNMENTS (0.3%) | |||||||||||
Medical Instruments & Supplies (0.3%) | |||||||||||
HCA, Inc., Series B 7.60%, due 11/14/2013 m | 1,496 | 1,514 | |||||||||
Total Loan Assignments (cost: $1,496) | 1,514 | ||||||||||
Shares | Value | ||||||||||
PREFERRED STOCKS (0.2%) | |||||||||||
Commercial Banks (0.2%) | |||||||||||
DG Funding Trust–144A *§ | 119 | $ | 1,258 | ||||||||
Total Preferred Stocks (cost: $1,266) | 1,258 | ||||||||||
COMMON STOCKS (0.2%) | |||||||||||
Health Services (0.2%) | |||||||||||
Health Management Associates, Inc.–Class A m | 1,100,000 | 1,106 | |||||||||
Total Common Stocks (cost: $1,100) | 1,106 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 10
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS (0.7%) | |||||||||||
U.S. Treasury Bill 4.89%, due 06/14/2007 v | $ | 900 | $ | 895 | |||||||
4.90%, due 06/14/2007 | 1,250 | 1,243 | |||||||||
4.96%, due 06/14/2007 | 1,575 | 1,565 | |||||||||
Total Short-Term U.S. Government Obligations (cost: $3,703) | 3,703 | ||||||||||
COMMERCIAL PAPER (17.8%) | |||||||||||
Commercial Banks (16.5%) | |||||||||||
Abbey National North America LLC 5.23%, due 06/08/2007 | 10,600 | 10,541 | |||||||||
Bank of Ireland–144A 5.24%, due 05/02/2007 | 1,500 | 1,500 | |||||||||
Danske Corp. 5.22%, due 07/06/2007 | 12,900 | 12,777 | |||||||||
5.21%, due 08/20/2007 | 400 | 394 | |||||||||
General Electric Capital Corp. 5.21%, due 06/06/2007 | 12,400 | 12,335 | |||||||||
Skandinaviska Enskilda Banken AB–144A 5.20%, due 08/20/2007 | 11,800 | 11,611 | |||||||||
5.20%, due 08/21/2007 | 400 | 393 | |||||||||
Societe Generale North America, Inc. 5.23%, due 05/04/2007 | 5,900 | 5,897 | |||||||||
5.20%, due 08/07/2007 | 2,300 | 2,267 | |||||||||
UBS Finance Delaware LLC 5.23%, due 05/15/2007 | 10,700 | 10,678 | |||||||||
5.22%, due 06/25/2007 | 3,300 | 3,274 | |||||||||
5.23%, due 07/19/2007 | 500 | 494 | |||||||||
5.20%, due 08/02/2007 | 1,100 | 1,085 | |||||||||
Unicredito Italiano Bank, Ireland 5.23%, due 05/22/2007 | 9,200 | 9,172 | |||||||||
Westpac Banking Corp.–144A 5.17%, due 10/15/2007 | 5,100 | 4,978 | |||||||||
Holding & Other Investment Offices (0.3%) | |||||||||||
DaimlerChrysler North America Holding Corp. 5.35%, due 06/22/2007 | 1,600 | 1,588 | |||||||||
Security & Commodity Brokers (1.0%) | |||||||||||
IXIS Commercial Paper–144A 5.24%, due 05/04/2007 | 5,200 | 5,198 | |||||||||
Total Commercial Paper (cost: $94,182) | 94,182 | ||||||||||
CERTIFICATES OF DEPOSIT (2.7%) | |||||||||||
Barclays Bank PLC, NY 5.28%, due 03/17/2008 * | 4,800 | 4,799 | |||||||||
Royal Bank of Scotland NY 5.27%, due 03/26/2008 | 4,800 | 4,799 | |||||||||
Societe Generale NY 5.27%, due 03/26/2008 | 4,800 | 4,799 | |||||||||
Total Certificates Of Deposit (cost: $14,397) | 14,397 |
Contractsu | Value | ||||||||||
PURCHASED OPTIONS (0.2%) | |||||||||||
Covered Call Options (0.1%) | |||||||||||
90-Day Euro Dollar Futures Call Strike $95.25 Expires 06/18/2007 | 226 | $ | 1 | ||||||||
90-Day Euro Dollar Futures Call Strike $95.25 Expires 03/17/2008 | 184 | 110 | |||||||||
JPY Currency Future § Call Strike $121.00 Expires 01/18/2008 | 1,500,000 | 10 | |||||||||
JPY Currency Future § Call Strike $103.80 Expires 03/17/2010 | 2,400,000 | 144 | |||||||||
JPY Currency Future § Call Strike $104.00 Expires 03/17/2010 | 4,100,000 | 241 | |||||||||
JPY Currency Future § Call Strike $105.40 Expires 03/31/2010 | 1,900,000 | 97 | |||||||||
Put Options (0.1%) | |||||||||||
90-Day Euro Dollar Futures Put Strike $91.25 Expires 06/18/2007 | 230 | 1 | |||||||||
90-Day Euro Dollar Futures Put Strike $90.75 Expires 09/17/2007 | 80 | 1 | |||||||||
90-Day Euro Dollar Futures Put Strike $91.25 Expires 09/17/2007 | 137 | 1 | |||||||||
90-Day Euro Dollar Futures Put Strike $91.50 Expires 09/17/2007 | 331 | 2 | |||||||||
90-Day Euro Dollar Futures Put Strike $91.50 Expires 12/17/2007 | 600 | 4 | |||||||||
90-Day Euro Dollar Futures Put Strike $91.75 Expires 03/17/2008 | 221 | 1 | |||||||||
90-Day Euro Dollar Futures Put Strike $93.00 Expires 03/17/2008 | 392 | 3 | |||||||||
90-Day Euro Dollar Futures Put Strike $92.75 Expires 03/17/2008 | 124 | 1 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 11
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Contractsu | Value | ||||||||||
Put Options (continued) | |||||||||||
90-Day Euro Dollar Futures Put Strike $92.50 Expires 06/16/2008 | 409 | $ | 3 | ||||||||
Fannie Mae TBA § Put Strike $91.00 Expires 06/05/2007 | 6,000,000 | — | o | ||||||||
Fannie Mae TBA § Put Strike $86.00 Expires 06/05/2007 | 10,000,000 | — | o | ||||||||
Fannie Mae TBA §m Put Strike $89.00 Expires 06/05/2007 | 35,000,000 | — | o | ||||||||
JPY Currency Future § Put Strike $103.80 Expires 03/17/2010 | 2,400,000 | 76 | |||||||||
JPY Currency Future § Put Strike $104.00 Expires 03/17/2010 | 4,100,000 | 133 | |||||||||
JPY Currency Future § Put Strike $105.40 Expires 03/31/2010 | 1,900,000 | 70 | |||||||||
Total Purchased Options (cost: $1,011) | 899 | ||||||||||
Notional Amount | Value | ||||||||||
PURCHASED SWAPTIONS (0.3%) | |||||||||||
Covered Call Swaptions (0.3%) | |||||||||||
EURIBOR Rate Swaption §m Call Strike $3.96 Expires 07/04/2009 | $ | 24,000 | $ | — | o | ||||||
GBP-LIBOR Rate Swaption §m Call Strike $5.06 Expires 06/15/2007 | 7,000 | — | o | ||||||||
GBP-LIBOR Rate Swaption §m Call Strike $5.18 Expires 09/14/2007 | 22,200 | 6 | |||||||||
LIBOR Rate Swaption §m Call Strike $5.50 Expires 06/30/2007 | 27,700 | 275 | |||||||||
LIBOR Rate Swaption §m Call Strike $4.85 Expires 07/02/2007 | 15,900 | 1 | |||||||||
LIBOR Rate Swaption §m Call Strike $5.25 Expires 07/02/2007 | 33,200 | 191 |
Notional Amount | Value | ||||||||||
Covered Call Swaptions (continued) | |||||||||||
LIBOR Rate Swaption §m Call Strike $5.00 Expires 08/08/2007 | $ | 275,600 | $ | 208 | |||||||
LIBOR Rate Swaption §m Call Strike $4.90 Expires 08/08/2007 | 17,500 | 8 | |||||||||
LIBOR Rate Swaption §m Call Strike $4.90 Expires 10/25/2007 | 10,100 | 41 | |||||||||
LIBOR Rate Swaption §m Call Strike $5.00 Expires 12/20/2007 | 12,500 | 76 | |||||||||
LIBOR Rate Swaption §m Call Strike $5.00 Expires 02/01/2008 | 12,500 | 83 | |||||||||
LIBOR Rate Swaption §m Call Strike $4.75 Expires 02/01/2008 | 14,400 | 30 | |||||||||
LIBOR Rate Swaption §m Call Strike $4.75 Expires 03/31/2008 | 46,100 | 230 | |||||||||
LIBOR Rate Swaption §m Call Strike $5.37 Expires 07/05/2009 | 22,400 | 173 | |||||||||
LIBOR Rate Swaption §m Call Strike $5.20 Expires 01/25/2010 | 21,200 | 222 | |||||||||
Put Swaptions (0.0%) | |||||||||||
LIBOR Rate Swaption §m Put Strike $5.20 Expires 01/25/2010 | 21,200 | 151 | |||||||||
Total Purchased Swaptions (cost: $1,909) | 1,695 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (0.5%) | |||||||||||
Debt (0.5%) | |||||||||||
Bank Notes (0.0%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 76 | $ | 76 | |||||||
5.27%, due 06/18/2007 * | 76 | 76 | |||||||||
Commercial Paper (0.1%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 30 | 30 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 30 | 30 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 12
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Charta LLC–144A 5.30%, due 05/09/2007 | $ | 20 | $ | 20 | |||||||
5.29%, due 06/13/2007 | 15 | 15 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 15 | 15 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 15 | 15 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 15 | 15 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 | 15 | 15 | |||||||||
5.28%, due 05/24/2007 | 15 | 15 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 30 | 30 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 30 | 30 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 30 | 30 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 30 | 30 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 | 60 | 60 | |||||||||
5.30%, due 05/29/2007 | 15 | 15 | |||||||||
5.29%, due 05/31/2007 | 15 | 15 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 | 15 | 15 | |||||||||
5.29%, due 05/17/2007 | 15 | 15 | |||||||||
5.28%, due 06/01/2007 | 15 | 15 | |||||||||
5.29%, due 06/19/2007 | 20 | 20 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 23 | 23 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 15 | 15 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 31 | 31 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 15 | 15 | |||||||||
Euro Dollar Overnight (0.1%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 15 | 15 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 31 | 31 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 31 | 31 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 31 | 31 |
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
National Australia Bank 5.30%, due 05/01/2007 | $ | 31 | $ | 31 | |||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 31 | 31 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 31 | 31 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 15 | 15 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 31 | 31 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 58 | 58 | |||||||||
Euro Dollar Terms (0.2%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 31 | 31 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 15 | 15 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 21 | 21 | |||||||||
Barclays 5.29%, due 05/07/2007 | 31 | 31 | |||||||||
5.30%, due 05/16/2007 | 31 | 31 | |||||||||
5.29%, due 05/21/2007 | 15 | 15 | |||||||||
5.30%, due 06/04/2007 | 15 | 15 | |||||||||
5.29%, due 06/08/2007 | 31 | 31 | |||||||||
Calyon 5.30%, due 05/17/2007 | 15 | 15 | |||||||||
5.31%, due 05/24/2007 | 31 | 31 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 | 46 | 46 | |||||||||
5.28%, due 05/29/2007 | 15 | 15 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 31 | 31 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 31 | 31 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 | 46 | 46 | |||||||||
5.28%, due 05/25/2007 | 46 | 46 | |||||||||
5.30%, due 06/25/2007 | 31 | 31 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 46 | 46 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 | 31 | 31 | |||||||||
5.30%, due 05/09/2007 | 15 | 15 | |||||||||
5.31%, due 05/25/2007 | 31 | 31 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 13
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | $ | 15 | $ | 15 | |||||||
Swedbank AB 5.30%, due 05/11/2007 | 31 | 31 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 31 | 31 | |||||||||
UBS AG 5.28%, due 06/01/2007 | 31 | 31 | |||||||||
5.29%, due 06/12/2007 | 61 | 61 | |||||||||
5.29%, due 06/15/2007 | 46 | 46 | |||||||||
5.29%, due 06/18/2007 | 76 | 76 | |||||||||
Repurchase Agreements (0.1%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $85 on 05/01/2007 | 85 | 85 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $336 on 05/01/2007 | 336 | 336 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $147 on 05/01/2007 | 147 | 147 | |||||||||
Total Security Lending Collateral (cost: $2,450) | 2,450 | ||||||||||
Total Investment Securities (cost: $686,578) # | $ | 687,257 | |||||||||
Contractsu | Value | ||||||||||
WRITTEN OPTIONS (0.0%) | |||||||||||
Covered Call Options (0.0%) | |||||||||||
10-Year U.S. Treasury Note Future Call Strike $110.00 Expires 05/25/2007 | 162 | $ | (5 | ) | |||||||
EURO Dollar 1-Year MID-CRV June 2008 Future Call Strike $95.75 Expires 06/15/2007 | 226 | (10 | ) | ||||||||
Total Written Options (premiums: $154) | $ | (15 | ) | ||||||||
Notional Amount | Value | ||||||||||
WRITTEN SWAPTIONS (-0.3%) | |||||||||||
Covered Call Swaptions (-0.3%) | |||||||||||
EURIBOR Rate Swaption m Call Strike $4.10 Expires 07/04/2012 | $ | 10,200 | $ | (6 | ) | ||||||
GBP-LIBOR Rate Swaption m Call Strike $4.85 Expires 06/15/2007 | 2,000 | — | o |
Notional Amount | Value | ||||||||||
Covered Call Swaptions (continued) | |||||||||||
GBP-LIBOR Rate Swaption m Call Strike $4.85 Expires 09/14/2007 | $ | 6,300 | $ | (5 | ) | ||||||
LIBOR Rate Swaption m Call Strike $5.60 Expires 06/30/2007 | 12,000 | (323 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $4.95 Expires 07/02/2007 | 3,400 | (15 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $5.50 Expires 07/02/2007 | 7,300 | (190 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $5.37 Expires 07/02/2007 | 14,400 | (251 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $4.90 Expires 08/08/2007 | 49,600 | (235 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $4.90 Expires 08/08/2007 | 2,900 | (12 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $5.01 Expires 10/25/2007 | 4,400 | (42 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $5.15 Expires 12/20/2007 | 5,400 | (77 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $5.10 Expires 02/01/2008 | 5,400 | (75 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $4.95 Expires 03/31/2008 | 6,000 | (69 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $4.90 Expires 03/31/2008 | 14,400 | (152 | ) | ||||||||
LIBOR Rate Swaption m Call Strike $4.90 Expires 02/05/2013 | 3,200 | (30 | ) | ||||||||
Total Written Swaptions (premiums: $1,483) | $ | (1,482 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 14
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
SWAP AGREEMENTS: | |||||||||||||||
Receive a fixed rate equal to 3.20% and the Fund will pay to the counterparty at the notional amount in the event of default of General Motors Acceptance Corp, 6.875%, due 8/28/2012 Counterparty: Lehman Brothers Special Financing, Inc. § | 6/20/07 | $ | 300 | $ | 1 | ||||||||||
Receive a fixed rate equal to 0.77% and the Fund will pay to the counterparty at the notional amount in the event of default of Russian Federation Government Bond, 5.00%, due 03/31/2030. Counterparty: JP Morgan Chase Bank § | 5/20/07 | 300 | — | o | |||||||||||
Receive a fixed rate equal to 2.1455% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: UBS AG m§ | 10/15/10 | EUR | 2,100 | 50 | |||||||||||
Receive a fixed rate equal to 2.09% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty:BNP Paribas m§ | 10/15/10 | EUR | 2,000 | 43 | |||||||||||
Receive a fixed rate equal to 2.1025% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty:Barclays Bank PLC m§ | 10/15/10 | EUR | 1,000 | 22 | |||||||||||
Receive a floating rate based on 6-month British Pound– LIBOR and the Fund will pay a fixed rate equal to 4.00%. Counterparty:Barclays Bank PLC § | 12/15/35 | GBP | 5,500 | 299 |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a floating rate based on 6-month British Pound– LIBOR and the Fund will pay a fixed rate equal to 4.00%. Counterparty: Deutsche Bank AG § | 12/15/35 | GBP | 2,000 | $ | 130 | ||||||||||
Receive a floating rate based on 6-month Japanese Yen– LIBOR and the Fund will pay a fixed rate equal to 2.00%. Counterparty:Morgan Stanley Capital Services, Inc. | 12/20/13 | JPY | 140,000 | (4 | ) | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 3-month United States Dollar–LIBOR. Counterparty: Deutsche Bank AG | 12/15/35 | $ | 5,900 | (158 | ) | ||||||||||
Receive a floating rate based on 6-month British Pound– LIBOR and the Fund will pay a fixed rate equal to 4.25%. Counterparty: Goldman Sachs Capital Markets, LP § | 6/12/36 | GBP | 400 | 34 | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 6-month British Pound–LIBOR Counterparty: Deutsche Bank AG | 9/15/15 | GBP | 500 | (35 | ) | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 6-month British Pound–LIBOR Counterparty: Goldman Sachs Capital Markets, LP | 9/15/15 | GBP | 500 | (34 | ) | ||||||||||
Receive a fixed rate equal to 6.00% and the Fund will pay a floating rate based on 6-month-EURIBOR Counterparty: Morgan Stanley Capital Services, Inc. § | 6/18/34 | EUR | 300 | 8 | |||||||||||
Receive a fixed rate equal to 8.86% and the Fund will pay a floating rate based on Mexican Peso TIIE–Banxico. Counterparty: Citibank NA m§ | 9/12/16 | MXN | 4,400 | 23 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 15
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 0.32% and the Fund will pay to the counterparty at the notional amount in the event of default of Morgan Stanley BP, 5.82%, due 10/18/2016. Counterparty: Royal Bank of Scotland PLC § | 12/20/16 | $ | 2,800 | $ | 16 | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 3-month United States Dollar–LIBOR. Counterparty: UBS AG § | 6/18/09 | 32,900 | 140 | ||||||||||||
Receive from the Counterparty, in the event of default on any of the securities in the iTraxx Europe HiVol Series Version 1 Index, the remaining interest payments on those defaulted securities and the Fund will pay a fixed rate equal to 0.85%. Counterparty: HSBC Bank USA | 12/20/16 | EUR | 2,900 | (14 | ) | ||||||||||
Receive from the Counterparty, in the event of default on any of the securities in the iTraxx Europe HiVol Series Version 1 Index, the remaining interest payments on those defaulted securities and the Fund will pay a fixed rate equal to 0.85%. Counterparty: Deutsche Bank AG | 12/20/16 | EUR | 2,600 | (13 | ) | ||||||||||
Receive a fixed rate equal to 1.00% and the Fund will pay a floating rate based on 6-month Japanese Yen–LIBOR. Counterparty:UBS AG § | 9/18/08 | JPY | 2,000,000 | 8 | |||||||||||
Receive a floating rate based on 6-month British Pound– LIBOR and the Fund will pay a fixed rate equal to 4.00%. Counterparty: Goldman Sachs Capital Markets, LP § | 12/15/35 | GBP | 6,400 | 383 | |||||||||||
Receive a fixed rate equal to 8.72% and the Fund will pay a floating rate based on Mexican Peso TIIE–Banxico. Counterparty: Citibank NA m§ | 9/05/16 | MXN | 21,100 | 39 |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 8.72% and the Fund will pay a floating rate based on Mexican Peso TIIE–Banxico. Counterparty: Merrill Lynch Capital Services m§ | 9/05/16 | MXN | 8,800 | $ | 10 | ||||||||||
Receive a fixed rate equal to 8.17% and the Fund will pay a floating rate based on Mexican Peso TIIE–Banxico. Counterparty: Goldman Sachs Capital Markets, LP m§ | 11/4/16 | MXN | 41,700 | (19 | ) | ||||||||||
Receive a fixed rate equal to 8.17% and the Fund will pay a floating rate based on Mexican Peso TIIE–Banxico. Counterparty: Citibank NA m§ | 11/4/16 | MXN | 9,200 | 19 | |||||||||||
Receive a fixed rate equal to 7.25% and the Fund will pay a floating rate based on the New Zealand Dollar-Bank Bill Rate–FRA (NZD-BBR-FRA). Counterparty: Citibank NA m | 6/15/09 | NZD | 12,500 | (105 | ) | ||||||||||
Receive a floating rate based on the 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Citibank NA § | 6/20/17 | $ | 16,000 | 337 | |||||||||||
Receive a floating rate based on the 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty: Morgan Stanley Capital Services, Inc. § | 6/20/17 | 8,200 | 181 | ||||||||||||
Receive from the Counterparty, in the event of default on any of the securities in the Dow Jones CDX.IG.5 7 year Index, the remaining interest payments on those defaulted securities and the Fund will pay a fixed rate equal to 0.142%. Counterparty: Morgan Stanley Capital Ser vices, Inc. m§ | 12/20/12 | 4,500 | 1 | ||||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar– LIBOR. Counterparty: Lehman Securities, Inc. § | 6/20/12 | 6,800 | (46 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 16
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar– LIBOR. Counterparty:Royal Bank of Scotland PLC | 6/20/37 | $ | 4,200 | $ | (111 | ) | |||||||||
Receive a floating rate based on the 3-month United States Dollar–LIBOR and the Fund will pay a fixed rate equal to 5.00%. Counterparty:Royal Bank of Scotland PLC § | 6/20/17 | 14,300 | 105 | ||||||||||||
Receive a fixed rate equal to 0.463% and the Fund will pay to the Counterparty, in the event of default on any of the securities in the Dow Jones CDX.IG.5 10 Year Index, the remaining interest payments on those defaulted securities. Counterparty: Morgan Stanley Capital Services, Inc. m | 12/20/15 | 3,200 | (9 | ) | |||||||||||
Receive from the Counterparty, in the event of default on any of the securities in the Dow Jones CDX.NA.IG.7 Index, the remaining interest payments on those defaulted securities and the Fund will pay a fixed rate equal to 0.65%. Counterparty: Morgan Stanley Capital Services, Inc. | 12/20/16 | 5,400 | 45 | ||||||||||||
Receive from the Counterparty, in the event of default on any of the securities in the Dow Jones CDX.NA.IG.7 Index, the remaining interest payments on those defaulted securities and the Fund will pay a fixed rate equal to 0.4%. Counterparty: Deutsche Bank AG | 12/20/11 | 6,500 | 4 | ||||||||||||
Receive from the counterparty at the notional amount in the event of default of Avebury Finance CDO PLC, 9.00%, due 01/08/2051 and the Fund will pay a fixed rate equal to 3.68%. Counterparty: Merrill Lynch International m§ | 1/8/51 | 3,000 | 660 |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 0.72% and the Fund will pay to the counterparty at the notional amount in the event of default of Ukraine Government Bond, 7.65%, due 06/11/2013. Counterparty: Barclays Bank PLC § | 12/20/08 | $ | 800 | $ | 2 | ||||||||||
Receive a fixed rate equal to 0.71% and the Fund will pay to the counterparty at the notional amount in the event of default of Ukraine Government Bond, 7.65%, due 06/11/2013. Counterparty: Barclays Bank PLC § | 12/20/08 | 100 | — | o | |||||||||||
Receive a fixed rate equal to 0.72% and the Fund will pay to the counterparty at the notional amount in the event of default of Ukraine Government Bond, 7.65%, due 06/11/2013. Counterparty: Deutsche Bank AG § | 12/20/08 | 100 | — | o | |||||||||||
Receive a fixed rate equal to 0.26% and the Fund will pay to the counterparty at the notional amount in the event of default of Russian Federation Government Bond, 5.00%, due 03/31/2030. Counterparty: Morgan Stanley Capital Services, Inc. § | 12/20/07 | 300 | — | o | |||||||||||
Receive a fixed rate equal to 0.26% and the Fund will pay to the counterparty at the notional amount in the event of default of Russian Federation Government Bond, 5.00%, due 03/31/2030. Counterparty: Deutsche Bank AG § | 12/20/07 | 300 | — | o | |||||||||||
Receive a fixed rate equal to 0.40% and the Fund will pay to the counterparty at the notional amount in the event of default of Republic of Indonesia Government Bond, 6.75%, due 03/10/2014. Counterparty:Royal Bank of Scotland PLC § | 12/20/08 | 200 | — | o |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 17
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 3-month United States Dollar– LIBOR. Counterparty: Deutsche Bank AG | 6/20/37 | $ | 4,800 | $ | (175 | ) | |||||||||
Receive a fixed rate equal to 0.29% and the Fund will pay to the counterparty at the notional amount in the event of default of Pemex Project Funding Master Trust, 9.5%, due 9/15/2027. Counterparty: Barclays Bank PLC | 12/20/08 | 1,400 | (1 | ) | |||||||||||
Receive a fixed rate equal to 0.055% and the Fund will pay to the counterparty at the notional amount in the event of default of American International Group, Inc. 5.60%, due 10/18/2016 Counterparty: Lehman Securities, Inc. | 3/20/08 | 2,800 | — | o | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Barclays Bank PLC § | 6/20/12 | 3,300 | (22 | ) | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Morgan Stanley Capital Services, Inc. | 6/20/37 | 6,000 | (202 | ) | |||||||||||
Receive from the counterparty at the notional amount in the event of default of HSBC Finance Corp BP, 6.38%, due 10/15/2011 and the Fund will pay a fixed rate equal to 0.20%. Counterparty: Royal Bank of Scotland PLC | 12/20/11 | 4,900 | (15 | ) | |||||||||||
Receive from the counterparty at the notional amount in the event of default of Weyerhaeuser Co, 6.75%, due 3/15/2012 and the Fund will pay a fixed rate equal to 0.96%. Counterparty: UBS AG | 6/20/17 | 700 | — | o |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive from the counterparty at the notional amount in the event of default of Kellogg Co, 5.75%, due 2/2/2001 and the Fund will pay a fixed rate equal to 0.11%. Counterparty: Lehman Brothers Special Financing, Inc. § | 6/20/11 | $ | 2,000 | $ | 1 | ||||||||||
Receive from the counterparty at the notional amount in the event of default of Diamond Offshore Drill, Zero Coupon, due 6/6/2020 and the Fund will pay a fixed rate equal to 0.44%. Counterparty: Citibank NA § | 6/20/17 | 1,400 | 1 | ||||||||||||
Receive a fixed rate equal to 2.00% and the Fund will pay a floating rate based on FRC–Excluding Tobacco-Non-Revised Consumer Price Index. Counterparty: Goldman Sachs Capital Markets, LP m§ | 3/15/12 | EUR | 1,300 | 5 | |||||||||||
Receive a fixed rate equal to 1.97% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Lehman Brothers Special Financing, Inc. m§ | 3/15/12 | EUR | 400 | 1 | |||||||||||
Receive a fixed rate equal to 1.95% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Barclays Bank PLC m§ | 3/15/12 | EUR | 1,400 | 3 | |||||||||||
Receive a fixed rate equal to 1.96% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Goldman Sachs Capital Markets, LP m§ | 3/30/12 | EUR | 400 | — | o |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 18
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 1.95% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Royal Bank of Scotland PLC m§ | 3/30/12 | EUR | 400 | $ | — | o | |||||||||
Receive a fixed rate equal to 1.96% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Barclays Bank PLC m | 4/5/12 | EUR | 300 | — | o | ||||||||||
Receive a fixed rate equal to 1.95% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Barclays Bank PLC m | 4/30/12 | EUR | 500 | (1 | ) | ||||||||||
Receive a fixed rate equal to 1.94% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Royal Bank of Scotland PLC m | 4/10/12 | EUR | 600 | (1 | ) | ||||||||||
Receive a fixed rate equal to 1.94% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: BNP Paribas m | 4/10/12 | EUR | 600 | (1 | ) | ||||||||||
Receive a fixed rate equal to 1.96% and the Fund will pay a floating rate based on FRC– Excluding Tobacco- Non-Revised Consumer Price Index. Counterparty: Royal Bank of Scotland PLC m§ | 3/28/12 | EUR | 400 | — | o | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Deutsche Bank AG | 6/22/09 | $ | 44,600 | (96 | ) |
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Barclays Bank PLC | 6/22/09 | $ | 27,200 | $ | 29 | ||||||||||
Receive a fixed rate equal to 6.50% and the Fund will pay a floating rate based on the 6-month Australian Dollar– Bank Bill Rate–BBSW (AUD–BBR-BBSW). Counterparty: Morgan Stanley Capital Services, Inc. m | 1/15/10 | AUD | 34,300 | 6 | |||||||||||
Receive a fixed rate equal to 6.50% and the Fund will pay a floating rate based on the 6-month Australian Dollar– Bank Bill Rate–BBSW (AUD–BBR-BBSW). Counterparty: Citibank NA m | 1/15/10 | AUD | 17,150 | 1 | |||||||||||
Receive a fixed rate equal to 7.25% and the Fund will pay a floating rate based on the New Zealand Dollar–Bank Bill Rate–FRA (NZD–BBR-FRA). Counterparty: UBS AG m | 6/15/09 | NZD | 14,900 | (68 | ) | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Goldman Sachs Capital Markets, LP | 6/20/14 | $ | 23,600 | (68 | ) | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Lehman Brothers Special Financing, Inc. | 6/20/14 | 27,700 | 364 | ||||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: UBS AG § | 6/20/12 | 6,900 | (3 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 19
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Expiration Date | Notional Amount | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on the 3-month United States Dollar–LIBOR. Counterparty: Goldman Sachs Capital Markets, LP | 6/22/37 | $ | 5,000 | $ | 6 | ||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 6-month British Pound– LIBOR Counterparty: Barclays Bank PLC | 9/15/10 | GBP | 11,200 | (165 | ) | ||||||||||
Receive a floating rate based on 6-month-EURIBOR and the Fund will pay a fixed rate equal to 4.00%. Counterparty: Deutsche Bank AG § | 12/15/11 | EUR | 10,800 | (18 | ) | ||||||||||
Receive a floating rate based on 6-month-EURIBOR and the Fund will pay a fixed rate equal to 4.00%. Counterparty: Barclays Bank PLC § | 12/15/11 | EUR | 27,200 | 224 | |||||||||||
Receive a fixed rate equal to 5.00% and the Fund will pay a floating rate based on 6-month British Pound–LIBOR Counterparty:Royal Bank of Scotland PLC | 9/15/10 | GBP | 1,300 | (18 | ) | ||||||||||
Total Swap Agreements (premium $-1,196) | 2,665,450 | $ | 1,799 | ||||||||||||
FUTURES CONTRACTS: |
Contractsu | Settlement Date | Amount | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
10-Year U.S. Treasury Note | 1 | 06/20/2007 | $ | 1,124 | $ | 1 | |||||||||||||
10-Year U.S. Treasury Note | 224 | 06/30/2007 | 24,266 | 84 | |||||||||||||||
2-Year U.S. Treasury Note | (376 | ) | 07/05/2007 | (76,974 | ) | (12 | ) | ||||||||||||
3-Month Euro EURIBOR | 46 | 09/17/2007 | 15,027 | (65 | ) | ||||||||||||||
3-Month GBP LIBOR | 213 | 06/18/2008 | — | o | (3 | ) | |||||||||||||
90-Day Euro Dollar | 558 | 12/17/2007 | 132,511 | (46 | ) | ||||||||||||||
90-Day Euro Dollar | 999 | 03/17/2008 | 237,725 | 171 | |||||||||||||||
90-Day Euro Dollar | 886 | 06/16/2008 | 211,134 | 213 | |||||||||||||||
90-Day GBP LIBOR | 717 | 03/19/2008 | — | o | (9 | ) |
Contractsu | Settlement Date | Amount | Net Unrealized Appreciation (Depreciation) | ||||||||||||||||
90-Day GBP LIBOR | 725 | 03/19/2008 | $ | 170,652 | $ | (315 | ) | ||||||||||||
90-Day GBP LIBOR | 511 | 06/18/2008 | 120,344 | (342 | ) | ||||||||||||||
90-Day GBP LIBOR | 55 | 09/17/2008 | 12,958 | (36 | ) | ||||||||||||||
90-Day GBP LIBOR | 128 | 12/17/2008 | 30,167 | (79 | ) | ||||||||||||||
Euro-BOBL | 318 | 06/12/2007 | 46,771 | (297 | ) | ||||||||||||||
Euro-BUND | (21 | ) | 05/24/2007 | — | o | 7 | |||||||||||||
Euro-BUND | (21 | ) | 05/24/2007 | (18 | ) | (11 | ) | ||||||||||||
Euro-BUND | 72 | 06/10/2007 | 11,217 | (93 | ) | ||||||||||||||
$ | 936,904 | $ | (832 | ) | |||||||||||||||
FORWARD FOREIGN CURRENCY CONTRACTS: | |||||||||||||||||||
Currency | Bought (Sold) | Settlement Date | Amount in U.S. Dollars Bought (Sold) | Net Unrealized Appreciation (Depreciation) | |||||||||||||||
Australian Dollar | 132 | 05/17/2007 | $ | 110 | $ | — | o | ||||||||||||
Australian Dollar | (239 | ) | 05/17/2007 | (199 | ) | — | o | ||||||||||||
Brazilian Real | 368 | 03/04/2008 | 170 | 4 | |||||||||||||||
Brazilian Real | 4,493 | 05/03/2007 | 3,010 | 133 | |||||||||||||||
Brazilian Real | (4,493 | ) | 05/03/2007 | (3,069 | ) | (74 | ) | ||||||||||||
Brazilian Real | 6,150 | 06/04/2007 | 2,848 | 162 | |||||||||||||||
Brazilian Real | (731 | ) | 06/04/2007 | (342 | ) | (16 | ) | ||||||||||||
Brazilian Real | 4,566 | 10/02/2007 | 2,196 | 1 | |||||||||||||||
British Pound Sterling | (4,683 | ) | 05/17/2007 | (9,252 | ) | (113 | ) | ||||||||||||
Canadian Dollar | (5,735 | ) | 05/17/2007 | (4,981 | ) | (211 | ) | ||||||||||||
Danish Krone | 381 | 06/07/2007 | 70 | — | o | ||||||||||||||
Danish Krone | (17,329 | ) | 06/07/2007 | (3,077 | ) | (101 | ) | ||||||||||||
Euro Dollar | (1,994 | ) | 05/24/2007 | (2,711 | ) | (13 | ) | ||||||||||||
Japanese Yen | 953,057 | 05/15/2007 | 8,027 | (39 | ) | ||||||||||||||
Japanese Yen | (1,371,434 | ) | 05/15/2007 | (11,543 | ) | 48 | |||||||||||||
Malaysian Ringgit | 1,408 | 07/10/2007 | 411 | 2 | |||||||||||||||
Mexican Peso | 12,364 | 03/13/2008 | 1,099 | 10 | |||||||||||||||
New Zealand Dollar | (124 | ) | 05/17/2007 | (92 | ) | — | o | ||||||||||||
Norwegian Krone | 7,113 | 06/07/2007 | 1,167 | 30 | |||||||||||||||
Polish Zloty | 2,920 | 09/28/2007 | 1,011 | 46 | |||||||||||||||
Korean Won | 1,020,868 | 07/18/2007 | 1,097 | 2 | |||||||||||||||
Korean Won | 1,280,420 | 07/30/2007 | 1,381 | (2 | ) | ||||||||||||||
Russian Rouble | 19,420 | 01/11/2008 | 752 | 5 | |||||||||||||||
Russian Rouble | 28,868 | 12/07/2007 | 1,101 | 24 | |||||||||||||||
Singapore Dollar | 1,644 | 07/18/2007 | 1,088 | — | o | ||||||||||||||
Singapore Dollar | 1,035 | 08/07/2007 | 687 | (1 | ) | ||||||||||||||
$ | (9,041 | ) | $ | (103 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 20
TA IDEX PIMCO Total Return
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
NOTES TO SCHEDULE OF INVESTMENTS:
* Floating or variable rate note. Rate is listed as of April 30, 2007.
§ Security is deemed to be illiquid.
(a) The security has a perpetual maturity. The date shown is the next call date.
(b) Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of April 30, 2007.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $2,390.
(c) Coupon steps up by 50 BP for each rating downgrade by Standard & Poor's or Moody's for each notch below BBB+/Baa1. Coupon steps down by 50 BP for each rating upgrade above Baa2/BBB.
(d) Coupon steps up or down by 25 BP for each rating upgrade or downgrade by Standard and Poor's or Moody's for each notch above or below A-/A3.
v At April 30, 2007, all or a portion of this security is segregated with the custodian to cover margin requirements for open futures contracts. The value of the security segregated at April 30, 2007, is $3,703, respectively.
†† Cash collateral for the Repurchase Agreements, valued at $583, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively.
u Contract amounts are not in thousands.
o Value is less than $1.
m Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees.
# Aggregate cost for federal income tax purposes is $686,661. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $2,447 and $1,851, respectively. Net unrealized appreciation for tax purposes is $596.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $57,513 or 10.9% of the net assets of the Fund.
AUD Australian Dollar
BRL Brazilian Real
DKK Danish Krone
EUR Euro
EURIBOR Euro Interbank Offer Rate
GBP Great British Pound
JPY Japanese Yen
LIBOR London Interbank Offer Rate
MTN Medium-Term Note
MXN Mexican Peso
NZD New Zealand Dollar
RACERS Restructured Asset Certificates with Enhanced Returns
REIT Real Estate Investment Trust
TBA Mortgage-backed securities traded under delayed delivery commitments.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 21
TA IDEX PIMCO Total Return
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $686,578) (including securities loaned of $2,390) | $ | 687,257 | |||||
Cash | 19,954 | ||||||
Foreign currency (cost: $8,631) | 8,719 | ||||||
Receivables: | |||||||
Investment securities sold | 86,379 | ||||||
Shares of beneficial interest sold | 931 | ||||||
Interest | 1,924 | ||||||
Income from loaned securities | 1 | ||||||
Variation margin | 716 | ||||||
Swap agreements at value(premium $-1,196) | 603 | ||||||
Unrealized appreciation on forward foreign currency contracts | 467 | ||||||
Other | 8 | ||||||
806,959 | |||||||
Liabilities: | |||||||
Investment securities purchased | 273,586 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 423 | ||||||
Management and advisory fees | 286 | ||||||
Transfer agent fees | 7 | ||||||
Administration fees | 9 | ||||||
Payable for collateral for securities on loan | 2,450 | ||||||
Unrealized depreciation on forward foreign currency contracts | 570 | ||||||
Written options and swaptions (premiums $1,637) | 1,497 | ||||||
Other | 30 | ||||||
278,858 | |||||||
Net Assets | $ | 528,101 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 523,669 | |||||
Undistributed (accumulated) net investment income (loss) | 1,316 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities, futures contracts, written options and swaptions, swaps and foreign currency transactions | 1,342 | ||||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | 679 | ||||||
Futures contracts | (832 | ) | |||||
Written options and swaption contracts | 140 | ||||||
Swap agreements | 1,799 | ||||||
Translation of assets and liabilities denominated in foreign currencies | (12 | ) | |||||
Net Assets | $ | 528,101 | |||||
Net Assets by Class: | |||||||
Class A | $ | 4,822 | |||||
Class B | 11,000 | ||||||
Class C | 4,207 | ||||||
Class I | 508,072 | ||||||
Shares Outstanding: | |||||||
Class A | 466 | ||||||
Class B | 1,063 | ||||||
Class C | 408 | ||||||
Class I | 49,175 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 10.34 | |||||
Class B | 10.34 | ||||||
Class C | 10.31 | ||||||
Class I | 10.33 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 10.86 |
(a) 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, and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 10,209 | |||||
Dividends | 46 | ||||||
Income from loaned securities–net | 3 | ||||||
10,258 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,345 | ||||||
Transfer agent fees: | |||||||
Class A | 8 | ||||||
Class B | 16 | ||||||
Class C | 6 | ||||||
Printing and shareholder reports | 8 | ||||||
Custody fees | 70 | ||||||
Administration fees | 40 | ||||||
Legal fees | 3 | ||||||
Audit fees | 9 | ||||||
Trustees fees | 6 | ||||||
Registration fees | 7 | ||||||
Other | 3 | ||||||
Total expenses | 1,521 | ||||||
Net Investment Income (Loss) | 8,737 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 945 | ||||||
Futures contracts | 876 | ||||||
Written options and swaption contracts | 136 | ||||||
Swap agreements | 253 | ||||||
Foreign currency transactions | (88 | ) | |||||
2,122 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | (128 | ) | |||||
Futures contracts | (1,505 | ) | |||||
Written options and swaption contracts | 734 | ||||||
Swap agreements | 1,149 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 45 | ||||||
295 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities, Futures Contracts, Written Options and Swaptions, Swaps and Foreign Currency Transactions | 2,417 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 11,154 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 22
TA IDEX PIMCO Total Return
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006(a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 8,737 | $ | 9,015 | |||||||
Net realized gain (loss) from investment securities, futures contracts, written options and swaptions, swaps and foreign currency transactions | 2,122 | (1,790 | ) | ||||||||
Change in unrealized appreciation (depreciation) on investment securities, futures contracts, written options and swaptions, swaps and foreign currency translation | 295 | 3,810 | |||||||||
11,154 | 11,035 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (98 | ) | (452 | ) | |||||||
Class B | (231 | ) | (546 | ) | |||||||
Class C | (85 | ) | (215 | ) | |||||||
Class I | (7,618 | ) | (7,090 | ) | |||||||
(8,032 | ) | (8,303 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (3 | ) | – | ||||||||
Class B | (7 | ) | – | ||||||||
Class C | (2 | ) | – | ||||||||
Class I | (154 | ) | – | ||||||||
(166 | ) | – | |||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 7 | 218 | |||||||||
Class B | 5 | 136 | |||||||||
Class C | 5 | 153 | |||||||||
Class I | 230,898 | 258,105 | |||||||||
230,915 | 258,612 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 89 | 419 | |||||||||
Class B | 174 | 394 | |||||||||
Class C | 68 | 182 | |||||||||
Class I | 7,772 | 7,090 | |||||||||
8,103 | 8,085 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (1,156 | ) | (120,452 | ) | |||||||
Class B | (2,455 | ) | (9,402 | ) | |||||||
Class C | (652 | ) | (5,225 | ) | |||||||
Class I | (1,617 | ) | (4 | ) | |||||||
(5,880 | ) | (135,083 | ) |
April 30, 2007 (unaudited) | October 31, 2006(a) | ||||||||||
Redemption fees: | |||||||||||
Class A | $ | – | $ | – | (b) | ||||||
Class B | – | – | (b) | ||||||||
– | – | (b) | |||||||||
Automatic conversions: | |||||||||||
Class A | 121 | 46 | |||||||||
Class B | (121 | ) | (46 | ) | |||||||
– | – | ||||||||||
233,138 | 131,614 | ||||||||||
Net increase (decrease) in net assets | 236,094 | 134,346 | |||||||||
Net Assets: | |||||||||||
Beginning of period | 292,007 | 157,661 | |||||||||
End of period | $ | 528,101 | $ | 292,007 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 1,316 | $ | 611 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 1 | 21 | |||||||||
Class B | – | (c) | 13 | ||||||||
Class C | 1 | 15 | |||||||||
Class I | 22,483 | 25,391 | |||||||||
22,485 | 25,440 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 8 | 41 | |||||||||
Class B | 17 | 39 | |||||||||
Class C | 6 | 18 | |||||||||
Class I | 756 | 702 | |||||||||
787 | 800 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (112 | ) | (11,898 | ) | |||||||
Class B | (238 | ) | (924 | ) | |||||||
Class C | (63 | ) | (518 | ) | |||||||
Class I | (157 | ) | – | ||||||||
(570 | ) | (13,340 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 12 | 5 | |||||||||
Class B | (12 | ) | (5 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (91 | ) | (11,831 | ) | |||||||
Class B | (233 | ) | (877 | ) | |||||||
Class C | (56 | ) | (485 | ) | |||||||
Class I | 23,082 | 26,093 | |||||||||
22,702 | 12,900 |
(a) Class I was offered for investment on November 15, 2005.
(b) Amount rounds to less than $1.
(c) Share rounds to less than 1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 23
TA IDEX PIMCO Total Return
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 10.29 | $ | 0.20 | $ | 0.05 | $ | 0.25 | $ | (0.19 | ) | $ | (0.01 | ) | $ | (0.20 | ) | $ | 10.34 | |||||||||||||||||||
10/31/2006 | 10.16 | 0.38 | 0.09 | 0.47 | (0.34 | ) | – | (0.34 | ) | 10.29 | |||||||||||||||||||||||||||||
10/31/2005 | 10.48 | 0.26 | (0.17 | ) | 0.09 | (0.28 | ) | (0.13 | ) | (0.41 | ) | 10.16 | |||||||||||||||||||||||||||
10/31/2004 | 10.52 | 0.12 | 0.36 | 0.48 | (0.14 | ) | (0.38 | ) | (0.52 | ) | 10.48 | ||||||||||||||||||||||||||||
10/31/2003 | 10.32 | 0.20 | 0.39 | 0.59 | (0.25 | ) | (0.14 | ) | (0.39 | ) | 10.52 | ||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.13 | 0.28 | 0.41 | (0.09 | ) | – | (0.09 | ) | 10.32 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 10.29 | 0.21 | 0.04 | 0.25 | (0.19 | ) | (0.01 | ) | (0.20 | ) | 10.34 | |||||||||||||||||||||||||||
10/31/2006 | 10.18 | 0.36 | 0.08 | 0.44 | (0.33 | ) | – | (0.33 | ) | 10.29 | |||||||||||||||||||||||||||||
10/31/2005 | 10.48 | 0.17 | (0.16 | ) | 0.01 | (0.18 | ) | (0.13 | ) | (0.31 | ) | 10.18 | |||||||||||||||||||||||||||
10/31/2004 | 10.51 | 0.07 | 0.36 | 0.43 | (0.08 | ) | (0.38 | ) | (0.46 | ) | 10.48 | ||||||||||||||||||||||||||||
10/31/2003 | 10.32 | 0.13 | 0.38 | 0.51 | (0.18 | ) | (0.14 | ) | (0.32 | ) | 10.51 | ||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.09 | 0.29 | 0.38 | (0.06 | ) | – | (0.06 | ) | 10.32 | |||||||||||||||||||||||||||||
Class C | 4/30/2007 | 10.26 | 0.21 | 0.04 | 0.25 | (0.19 | ) | (0.01 | ) | (0.20 | ) | 10.31 | |||||||||||||||||||||||||||
10/31/2006 | 10.15 | 0.36 | 0.08 | 0.44 | (0.33 | ) | – | (0.33 | ) | 10.26 | |||||||||||||||||||||||||||||
10/31/2005 | 10.47 | 0.16 | (0.16 | ) | – | (0.19 | ) | (0.13 | ) | (0.32 | ) | 10.15 | |||||||||||||||||||||||||||
10/31/2004 | 10.51 | 0.04 | 0.38 | 0.42 | (0.08 | ) | (0.38 | ) | (0.46 | ) | 10.47 | ||||||||||||||||||||||||||||
10/31/2003 | 10.38 | 0.13 | 0.32 | 0.45 | (0.18 | ) | (0.14 | ) | (0.32 | ) | 10.51 | ||||||||||||||||||||||||||||
Class I | 4/30/2007 | 10.28 | 0.22 | 0.05 | 0.27 | (0.21 | ) | (0.01 | ) | (0.22 | ) | 10.33 | |||||||||||||||||||||||||||
10/31/2006 | 10.12 | 0.41 | 0.12 | 0.53 | (0.37 | ) | – | (0.37 | ) | 10.28 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 2.42 | % | $ | 4,822 | 1.06 | % | 1.06 | % | 3.98 | % | 405 | % | ||||||||||||||||||
10/31/2006 | 4.72 | 5,735 | 1.21 | 1.21 | 3.77 | (i) | 544 | ||||||||||||||||||||||||
10/31/2005 | 0.86 | 125,910 | 1.20 | 1.20 | 2.55 | (i) | 459 | ||||||||||||||||||||||||
10/31/2004 | 4.78 | 106,366 | 1.34 | 1.34 | 1.19 | 385 | |||||||||||||||||||||||||
10/31/2003 | 5.88 | 56,452 | 1.43 | 1.43 | 1.91 | 326 | |||||||||||||||||||||||||
10/31/2002 | 4.13 | 40,767 | 1.65 | 1.81 | 2.28 | 240 | |||||||||||||||||||||||||
Class B | 4/30/2007 | 2.54 | 11,000 | 1.00 | 1.00 | 4.04 | 405 | ||||||||||||||||||||||||
10/31/2006 | 4.45 | 13,337 | 1.40 | 1.40 | 3.53 | (i) | 544 | ||||||||||||||||||||||||
10/31/2005 | 0.07 | 22,116 | 2.06 | 2.06 | 1.64 | (i) | 459 | ||||||||||||||||||||||||
10/31/2004 | 4.30 | 28,219 | 1.92 | 1.92 | 0.64 | 385 | |||||||||||||||||||||||||
10/31/2003 | 5.08 | 34,547 | 2.08 | 2.08 | 1.26 | 326 | |||||||||||||||||||||||||
10/31/2002 | 3.80 | 30,909 | 2.30 | 2.46 | 1.63 | 240 | |||||||||||||||||||||||||
Class C | 4/30/2007 | 2.55 | 4,207 | 0.99 | 0.99 | 4.05 | 405 | ||||||||||||||||||||||||
10/31/2006 | 4.48 | 4,762 | 1.41 | 1.41 | 3.52 | 544 | |||||||||||||||||||||||||
10/31/2005 | – | (h) | 9,635 | 2.11 | 2.11 | 1.58 | (i) | 459 | |||||||||||||||||||||||
10/31/2004 | 4.10 | 12,850 | 2.09 | 2.09 | 0.41 | 385 | |||||||||||||||||||||||||
10/31/2003 | 4.47 | 5,231 | 2.08 | 2.08 | 1.25 | 326 | |||||||||||||||||||||||||
Class I | 4/30/2007 | 2.56 | 508,072 | 0.74 | 0.74 | 4.38 | 405 | ||||||||||||||||||||||||
10/31/2006 | 5.33 | 268,173 | 0.80 | 0.80 | 4.18 | 544 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 24
TA IDEX PIMCO Total Return
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX PIMCO Total Return ("the Fund") commenced operations on March 1, 2002. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Amount rounds to less than 0.01%.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 25
TA IDEX PIMCO Total Return
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX PIMCO Total Return (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Classes A, B and C are closed to new investors. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
TBA purchase commitments: The Fund may enter into "TBA" (to be announced) purchase commitments to purchase securities for a fixed price at a future date, typically not to exceed 45 days. TBA purchase commitments 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 Fund's other assets. Unsettled TBA purchase commitments are valued at the current value of the underlying securities, according to the procedures described under Security Valuations.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 26
TA IDEX PIMCO Total Return
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $1, earned by IBT for its services.
Loan participations/assignments: The Fund may purchase participations/assignments in commercial loans. Such indebtedness may be secured or unsecured. These investments may include standby financing commitments, including revolving credit facilities that obligate the Fund to supply additional cash to the borrower on demand. Loan participations/ assignments involve risks of insolvency of the lending bank or other financial intermediaries. As such, the Fund assumes the credit risk associated with the corporate borrower and may assume the credit risk associated with the interposed bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments. Loan participations typically represent direct participation in a loan to a corporate borrower, and gener ally are offered by banks or other financial institutions or lending syndicates. The Fund may participate in such syndications, or can buy part of a loan, becoming a part lender. A loan is often administered by an agent bank acting as agent for all holders. The agent bank administers the terms of the loan, as specified in the loan agreement. In addition, the agent bank is normally responsible for the collection of principal and interest payments from the corporate borrower and the apportionment of these payments to the credit of all institutions that are parties to the loan agreement. Unless, under the terms of the loan or other indebtedness, the portfolio has direct recourse against the corporate borrower, the Fund may have to rely on the agent bank or other financial intermediary to apply appropriate credit remedies against a corporate borrower.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Forward foreign currency contracts: The Fund may enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Contracts are valued at the contractual forward rate and 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 April 30, 2007 are listed in the Schedule of Investments.
Swap agreements: The Fund may enter into swap agreements to manage its exposure to interest rates and credit risk. Interest rate swap agreements involve commitments to pay/receive interest in exchange for a market-linked return, both based on notional amounts. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate issues or sovereign issues of an emerging country, on its obligation. The portfolio may use credit default swaps to provide a measure of protection against defaults of sovereign issuers (i.e., to reduce risk where the portfolio owns or has exposure to the sovereign issuer) or to take an active long or short position with respect to the likelihood of a particular issuer's default.
Entering into these agreements involves elements of credit, market and documentation risk in excess of the amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 27
TA IDEX PIMCO Total Return
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of contractual terms in the agreements, and that there may be unfavorable changes in interest rates.
Swaps are marked to market daily based upon quotations from market makers and vendors and the change in value, if any, is recorded as unrealized gain or loss in the Statement of Operations. Payments received or made at the beginning of the measurement period are reflected as such on the Statement of Assets and Liabilities. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss in the Statement of Operations. Net periodic payments are included as part of realized gain or loss on the Statement of Operations.
Open swaps agreements at April 30, 2007 are listed in the Schedule of Investments.
Futures contracts: The Fund may enter into futures contracts to manage exposure to market, interest rate or currency fluctuations. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. The primary risks associated with futures contracts are imperfect correlation between the change in market value of the securities held and the prices of futures contracts; the possibility of an illiquid market and inability of the counterparty to meet the contract terms.
The underlying face amounts of open futures contracts at April 30, 2007, are listed in the Schedule of Investments. The variation margin receivable or payable, as applicable, is included in the Statement of Assets and Liabilities. Variation margin represents the additional payment due or excess deposits made in order to maintain the equity account at the required margin level.
Option contracts: The Fund may enter into options contracts to manage exposure to 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 imperfect correlation between the change in value of the securities held and the prices of the options contracts; the possibility of an illiquid market; and inability of the counterparty to meet the contracts terms. When the Fund writes a covered call or put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as an asset and as an equivalent liability. Options are marked-to-market daily to reflect the current value of the option written.
Transactions in written options were as follows:
Premium | Contracts* | ||||||||||
Balance at October 31, 2006 | $ | 31 | 81 | ||||||||
Sales | 154 | 388 | |||||||||
Closing Buys | – | – | |||||||||
Expirations | (31 | ) | (81 | ) | |||||||
Exercised | – | – | |||||||||
Balance at April 30, 2007 | $ | 154 | 388 |
* Contracts not in thousands
Swaptions contracts: The Fund is authorized to write swaption contracts to manage exposure to fluctuations in interest rates and to enhance fund yield. Swaption contracts written by the Fund represent an option that gives the purchaser the right, but not the obligation, to enter into a previously agreed upon swap contract on a future date. If a written call option is exercised, the writer will enter a swap and is obligated to pay the fixed rate and receive a variable rate in exchange. Swaptions are marked-to-market daily based upon quotations from market makers.
When the Fund writes a swaption, the premium received is recorded as a liability and is subsequently adjusted to the current value of the swaption. Changes in the value of the swaption are reported as Unrealized gains or losses in written options in the Statement of Assets and Liabilities. Gain or loss is recognized when the swaption contract expires or is closed. Premiums received from writing swaptions that expire or are exercised are treated by the Fund as realized gains from written options. The difference between the premium and the amount paid on affecting a closing purchase transaction is treated as a realized gain or loss.
Transactions in written swaptions were as follows:
Premium | Notional Amount | ||||||||||
Balance at October 31, 2006 | $ | 871 | $ | 88,200 | |||||||
Sales | 859 | 95,500 | |||||||||
Closing Buys | (181 | ) | (20,400 | ) | |||||||
Expirations | (66 | ) | (16,400 | ) | |||||||
Exercised | – | – | |||||||||
Balance at April 30, 2007 | $ | 1,483 | $ | 146,900 |
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received no redemption fees.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 28
TA IDEX PIMCO Total Return
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 89,491 | 16.95 | % | |||||||
TA IDEX Asset Allocation– Moderate Portfolio | 201,807 | 38.21 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 216,774 | 41.05 | % | ||||||||
Total | $ | 508,072 | 96.21 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
From November 1, 2006 to December 31, 2006:
0.70% of the first $250 million of ANA
0.65% of the next $500 million of ANA
0.60% of ANA over $750 million
From January 1, 2007 on:
0.675% of the first $250 million of ANA
0.65% of the next $500 million of ANA
0.60% of ANA over $750 million
Prior to March 1, 2007, TFAI contractually agreed to waive its advisory fee and reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceeded the following stated annual limit:
From November 1, 2006 to February 28, 2007:
1.30% Expense Limit
Prior to March 1, 2007, if total Fund expenses fell below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There were no amounts available for recapture at February 28, 2007.
As of March 1, 2007, TFAI no longer requires the Fund to pay prior reimbursed class expenses.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
From February 28, 2006 through March 1, 2008, the Fund will not pay 12b-1 fees under these plans.
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 six months ended April 30, 2007, there were no underwriter commissions.
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $28 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 29
TA IDEX PIMCO Total Return
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $8.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $12. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 249,935 | |||||
U.S. Government | 1,897,730 | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 98,254 | ||||||
U.S. Government | 1,770,869 |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, capital loss carryforwards, swap contracts, distribution reclassifications, futures, options and foreign currency transactions.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 30
TA IDEX PIMCO Total Return
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6.–(continued)
Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 31
TA IDEX PIMCO Total Return
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS ��� REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX PIMCO Total Return (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Pacific Investment Management Company LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investmen t Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their decisio ns 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment performance . The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser generally had achieved competitive investment performance, noting that the performance of the Fund fell below the median relating to its peers over the past one-year period, but that the performance of the Fund was competitive with the median relative to its peers over the past two- and three-year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Trustees noted that although the management fees are above industry median, the Fund's performance h as remained overall competitive with peer funds. The Board favorably noted a new lower investment advisory fee schedule, which would contribute to lowering the Fund's expense level for the benefit of its shareholders. Based on such information, the Trustees determined that
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 32
TA IDEX PIMCO Total Return (continued)
the management fees and overall expense ratio of the Fund generally are consistent with industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board noted that, despite the absence of such breakpoints in the sub-advisory fee payable by TFAI to the Sub-Adviser, the sub-advisory fee schedule is consistent with the Sub-Adviser's proprietary mutual fund advisory fees. The Board further noted that TFAI is proposing to offer the Fund an additional advisory fee breakpoint in an effort to further reduce the level of Fund expenses. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except th at it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund's ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the i mpact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX PIMCO Total Return 33
TA IDEX Protected Principal Stock
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,036.20 | 1.95 | % | $ | 9.84 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,015.12 | 1.95 | 9.74 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,033.40 | 2.59 | 13.06 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,011.95 | 2.59 | 12.92 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,033.50 | 2.60 | 13.11 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,011.90 | 2.60 | 12.97 | |||||||||||||||
Class M | |||||||||||||||||||
Actual | 1,000.00 | 1,033.40 | 2.52 | 12.71 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,012.30 | 2.52 | 12.57 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 1
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (99.2%) l | |||||||||||
Aerospace (1.9%) | |||||||||||
Boeing Co. (The) | 2,300 | $ | 214 | ||||||||
General Dynamics Corp. | 1,100 | 86 | |||||||||
Goodrich Corp. | 400 | 23 | |||||||||
Lockheed Martin Corp. | 1,000 | 96 | |||||||||
Northrop Grumman Corp. | 970 | 71 | |||||||||
Textron, Inc. | 400 | 41 | |||||||||
United Technologies Corp. | 2,900 | 195 | |||||||||
Air Transportation (0.3%) | |||||||||||
FedEx Corp. | 900 | 95 | |||||||||
Southwest Airlines Co. | 2,300 | 33 | |||||||||
Amusement & Recreation Services (0.7%) | |||||||||||
Disney (Walt) Co. (The) | 5,900 | 206 | |||||||||
Harrah's Entertainment, Inc. | 600 | 51 | |||||||||
Apartments (0.1%) | |||||||||||
AvalonBay Communities, Inc. REIT | 200 | 24 | |||||||||
Apparel & Accessory Stores (0.5%) | |||||||||||
Abercrombie & Fitch Co.–Class A | 200 | 16 | |||||||||
Gap (The), Inc. | 1,600 | 29 | |||||||||
Kohl's Corp. ‡ | 900 | 67 | |||||||||
Limited Brands, Inc. | 1,000 | 28 | |||||||||
Nordstrom, Inc. | 700 | 38 | |||||||||
Apparel Products (0.2%) | |||||||||||
Cintas Corp. | 400 | 15 | |||||||||
Jones Apparel Group, Inc. | 300 | 10 | |||||||||
Liz Claiborne, Inc. | 300 | 13 | |||||||||
Polo Ralph Lauren Corp. | 200 | 18 | |||||||||
V.F. Corp. | 300 | 26 | |||||||||
Auto Repair, Services & Parking (0.0%) | |||||||||||
Ryder System, Inc. | 200 | 10 | |||||||||
Automotive (0.7%) | |||||||||||
Ford Motor Co. | 5,400 | 43 | |||||||||
General Motors Corp. | 1,700 | 53 | |||||||||
Genuine Parts Co. | 500 | 25 | |||||||||
Harley-Davidson, Inc. | 800 | 51 | |||||||||
ITT Industries, Inc. | 500 | 32 | |||||||||
PACCAR, Inc. | 700 | 59 | |||||||||
Automotive Dealers (0.1%) | |||||||||||
AutoNation, Inc. ‡ | 450 | 9 | |||||||||
AutoZone, Inc. ‡ | 100 | 13 | |||||||||
Beverages (2.0%) | |||||||||||
Anheuser-Busch Cos., Inc. | 2,200 | 108 | |||||||||
Brown-Forman Corp.–Class B | 200 | 13 |
Shares | Value | ||||||||||
Beverages (continued) | |||||||||||
Coca-Cola Co. (The) | 5,650 | $ | 295 | ||||||||
Coca-Cola Enterprises, Inc. | 800 | 18 | |||||||||
Constellation Brands, Inc.–Class A ‡ | 600 | 13 | |||||||||
Molson Coors Brewing Co.–Class B | 100 | 9 | |||||||||
Pepsi Bottling Group, Inc. | 400 | 13 | |||||||||
PepsiCo, Inc. | 4,650 | 307 | |||||||||
Business Credit Institutions (0.4%) | |||||||||||
CIT Group, Inc. | 600 | 36 | |||||||||
Freddie Mac | 2,000 | 130 | |||||||||
Business Services (1.4%) | |||||||||||
Convergys Corp. ‡ | 400 | 10 | |||||||||
eBay, Inc. ‡ | 3,300 | 112 | |||||||||
Equifax, Inc. | 400 | 16 | |||||||||
Fannie Mae | 2,800 | 165 | |||||||||
First Data Corp. | 2,195 | 71 | |||||||||
Interpublic Group of Cos., Inc. ‡ | 1,369 | 17 | |||||||||
Monster Worldwide, Inc. ‡ | 400 | 17 | |||||||||
Moody's Corp. | 700 | 46 | |||||||||
Omnicom Group, Inc. | 500 | 52 | |||||||||
Robert Half International, Inc. | 500 | 17 | |||||||||
Chemicals & Allied Products (3.5%) | |||||||||||
Air Products & Chemicals, Inc. | 600 | 46 | |||||||||
Avon Products, Inc. | 1,300 | 52 | |||||||||
Clorox Co. | 400 | 27 | |||||||||
Colgate-Palmolive Co. | 1,500 | 102 | |||||||||
Dow Chemical Co. (The) | 2,800 | 125 | |||||||||
du Pont (E.I.) de Nemours & Co. | 2,650 | 130 | |||||||||
Eastman Chemical Co. | 200 | 14 | |||||||||
Ecolab, Inc. | 500 | 21 | |||||||||
International Flavors & Fragrances, Inc. | 200 | 10 | |||||||||
Lauder (Estee) Cos., Inc. (The)–Class A | 350 | 18 | |||||||||
Monsanto Co. | 1,642 | 97 | |||||||||
PPG Industries, Inc. | 500 | 37 | |||||||||
Praxair, Inc. | 900 | 58 | |||||||||
Procter & Gamble Co. | 8,952 | 576 | |||||||||
Rohm & Haas Co. | 400 | 20 | |||||||||
Sherwin-Williams Co. (The) | 300 | 19 | |||||||||
Commercial Banks (9.4%) | |||||||||||
Bank of America Corp. | 12,622 | 642 | |||||||||
Bank of New York Co., Inc. (The) | 2,200 | 89 | |||||||||
BB&T Corp. | 1,600 | 67 | |||||||||
Citigroup, Inc. | 13,800 | 740 | |||||||||
Comerica, Inc. | 500 | 31 | |||||||||
Commerce Bancorp, Inc. | 600 | 20 | |||||||||
Compass Bancshares, Inc. | 400 | 27 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 2
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Commercial Banks (continued) | |||||||||||
Fifth Third Bancorp | 1,600 | $ | 65 | ||||||||
First Horizon National Corp. | 400 | 16 | |||||||||
Huntington Bancshares, Inc. | 700 | 15 | |||||||||
JP Morgan Chase & Co. | 9,748 | 508 | |||||||||
KeyCorp | 1,200 | 43 | |||||||||
M&T Bank Corp. | 200 | 22 | |||||||||
Marshall & IIsley Corp. | 800 | 38 | |||||||||
Mellon Financial Corp. | 1,200 | 51 | |||||||||
National City Corp. | 1,800 | 66 | |||||||||
Northern Trust Corp. | 600 | 38 | |||||||||
PNC Financial Services Group, Inc. | 900 | 67 | |||||||||
Regions Financial Corp. | 2,058 | 72 | |||||||||
State Street Corp. | 1,000 | 69 | |||||||||
SunTrust Banks, Inc. | 1,100 | 93 | |||||||||
Synovus Financial Corp. | 1,000 | 32 | |||||||||
US Bancorp | 5,000 | 172 | |||||||||
Wachovia Corp. | 5,497 | 305 | |||||||||
Wells Fargo & Co. | 9,600 | 345 | |||||||||
Zions Bancorp | 300 | 25 | |||||||||
Communication (0.7%) | |||||||||||
Comcast Corp.–Class A ‡ | 8,878 | 237 | |||||||||
DIRECTV Group (The), Inc. ‡ | 2,200 | 52 | |||||||||
Communications Equipment (1.5%) | |||||||||||
ADC Telecommunications, Inc. ‡ | 342 | 6 | |||||||||
Avaya, Inc. ‡ | 1,300 | 17 | |||||||||
Ciena Corp. ‡ | 285 | 8 | |||||||||
Corning, Inc. ‡ | 4,500 | 107 | |||||||||
L-3 Communications Holdings, Inc. | 400 | 36 | |||||||||
Motorola, Inc. | 6,800 | 118 | |||||||||
Network Appliance, Inc. ‡ | 1,100 | 41 | |||||||||
QUALCOMM, Inc. | 4,650 | 204 | |||||||||
Rockwell Collins, Inc. | 500 | 33 | |||||||||
Tellabs, Inc. ‡ | 1,300 | 14 | |||||||||
Computer & Data Processing Services (5.2%) | |||||||||||
Adobe Systems, Inc. ‡ | 1,700 | 71 | |||||||||
Affiliated Computer Services, Inc.–Class A ‡ | 250 | 15 | |||||||||
Autodesk, Inc. ‡ | 700 | 29 | |||||||||
Automatic Data Processing, Inc. | 1,600 | 72 | |||||||||
BMC Software, Inc. ‡ | 600 | 19 | |||||||||
CA, Inc. | 1,200 | 33 | |||||||||
Citrix Systems, Inc. ‡ | 500 | 16 | |||||||||
Cognizant Technology Solutions Corp. ‡ | 400 | 36 | |||||||||
Computer Sciences Corp. ‡ | 500 | 28 | |||||||||
Compuware Corp. ‡ | 1,000 | 10 |
Shares | Value | ||||||||||
Computer & Data Processing Services (continued) | |||||||||||
Electronic Arts, Inc. ‡ | 900 | $ | 45 | ||||||||
Electronic Data Systems Corp. | 1,500 | 44 | |||||||||
Fidelity National Information Services, Inc. | 400 | 20 | |||||||||
Fiserv, Inc. ‡ | 500 | 27 | |||||||||
Google, Inc.–Class A ‡ | 600 | 283 | |||||||||
IMS Health, Inc. | 600 | 18 | |||||||||
Intuit, Inc. ‡ | 1,000 | 28 | |||||||||
Juniper Networks, Inc. ‡ | 1,700 | 38 | |||||||||
Microsoft Corp. | 24,300 | 728 | |||||||||
NCR Corp. ‡ | 500 | 25 | |||||||||
Novell, Inc. ‡ | 1,000 | 7 | |||||||||
Oracle Corp. ‡ | 11,456 | 215 | |||||||||
Sun Microsystems, Inc. ‡ | 10,200 | 53 | |||||||||
Symantec Corp. ‡ | 2,723 | 48 | |||||||||
Unisys Corp. ‡ | 1,000 | 8 | |||||||||
VeriSign, Inc. ‡ | 700 | 19 | |||||||||
Yahoo!, Inc. ‡ | 3,400 | 95 | |||||||||
Computer & Office Equipment (4.6%) | |||||||||||
Apple, Inc. ‡ | 2,400 | 239 | |||||||||
Cisco Systems, Inc. ‡ | 17,050 | 456 | |||||||||
Dell, Inc. ‡ | 6,450 | 163 | |||||||||
EMC Corp. ‡ | 6,000 | 91 | |||||||||
Hewlett-Packard Co. | 7,550 | 318 | |||||||||
International Business Machines Corp. | 4,200 | 429 | |||||||||
Jabil Circuit, Inc. | 500 | 12 | |||||||||
Lexmark International, Inc. ‡ | 300 | 16 | |||||||||
Pitney Bowes, Inc. | 700 | 34 | |||||||||
Sandisk Corp. ‡ | 500 | 22 | |||||||||
Construction (0.2%) | |||||||||||
Centex Corp. | 400 | 18 | |||||||||
Fluor Corp. | 300 | 29 | |||||||||
KB Home | 200 | 9 | |||||||||
Pulte Homes, Inc. | 600 | 16 | |||||||||
Department Stores (0.4%) | |||||||||||
Dillard's, Inc.–Class A | 200 | 7 | |||||||||
Federated Department Stores, Inc. | 1,484 | 65 | |||||||||
JC Penney Co., Inc. | 700 | 55 | |||||||||
TJX Cos., Inc. | 1,300 | 36 | |||||||||
Diversified (0.3%) | |||||||||||
Honeywell International, Inc. | 2,300 | 125 | |||||||||
Drug Stores & Proprietary Stores (0.7%) | |||||||||||
CVS/Caremark Corp. | 4,371 | 158 | |||||||||
Walgreen Co. | 2,950 | 129 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 3
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Educational Services (0.1%) | |||||||||||
Apollo Group, Inc.–Class A ‡ | 400 | $ | 19 | ||||||||
Electric Services (2.6%) | |||||||||||
AES Corp. (The) ‡ | 2,000 | 44 | |||||||||
Allegheny Energy, Inc. ‡ | 500 | 27 | |||||||||
American Electric Power Co., Inc. | 1,200 | 60 | |||||||||
CenterPoint Energy, Inc. | 900 | 17 | |||||||||
CMS Energy Corp. ‡ | 700 | 13 | |||||||||
Consolidated Edison, Inc. | 700 | 36 | |||||||||
Constellation Energy Group, Inc. | 500 | 45 | |||||||||
Dominion Resources, Inc. | 1,000 | 91 | |||||||||
DTE Energy Co. | 500 | 25 | |||||||||
Duke Energy Corp. | 3,648 | 75 | |||||||||
Dynegy, Inc.–Class A ‡ | 1,128 | 11 | |||||||||
Edison International | 1,000 | 52 | |||||||||
FirstEnergy Corp. | 900 | 62 | |||||||||
FPL Group, Inc. | 1,200 | 77 | |||||||||
Integrys Energy Group, Inc. | 82 | 5 | |||||||||
Pinnacle West Capital Corp. | 300 | 14 | |||||||||
PPL Corp. | 1,100 | 48 | |||||||||
Progress Energy, Inc. | 800 | 40 | |||||||||
Sempra Energy | 800 | 51 | |||||||||
Southern Co. (The) | 2,200 | 83 | |||||||||
TECO Energy, Inc. | 600 | 11 | |||||||||
TXU Corp. | 1,400 | 92 | |||||||||
Xcel Energy, Inc. | 1,200 | 29 | |||||||||
Electric, Gas & Sanitary Services (1.1%) | |||||||||||
Allied Waste Industries, Inc. ‡ | 800 | 11 | |||||||||
Ameren Corp. | 600 | 32 | |||||||||
Entergy Corp. | 600 | 68 | |||||||||
Exelon Corp. | 1,900 | 143 | |||||||||
NiSource, Inc. | 800 | 20 | |||||||||
PG&E Corp. | 1,000 | 51 | |||||||||
Public Service Enterprise Group, Inc. | 700 | 60 | |||||||||
Waste Management, Inc. | 1,600 | 60 | |||||||||
Electronic & Other Electric Equipment (3.2%) | |||||||||||
Cooper Industries, Ltd.–Class A | 500 | 25 | |||||||||
Emerson Electric Co. | 2,400 | 113 | |||||||||
General Electric Co. | 29,000 | 1,069 | |||||||||
Harman International Industries, Inc. | 200 | 24 | |||||||||
Whirlpool Corp. | 185 | 20 | |||||||||
Electronic Components & Accessories (2.7%) | |||||||||||
Advanced Micro Devices, Inc. ‡ | 1,500 | 21 | |||||||||
Altera Corp. ‡ | 1,100 | 25 | |||||||||
Analog Devices, Inc. | 1,000 | 39 |
Shares | Value | ||||||||||
Electronic Components & Accessories (continued) | |||||||||||
Broadcom Corp.–Class A ‡ | 1,400 | $ | 46 | ||||||||
Intel Corp. | 16,250 | 349 | |||||||||
JDS Uniphase Corp. ‡ | 612 | 10 | |||||||||
Linear Technology Corp. | 900 | 34 | |||||||||
LSI Corp. ‡ | 1,300 | 11 | |||||||||
Maxim Integrated Products, Inc. | 1,000 | 32 | |||||||||
Micron Technology, Inc. ‡ | 2,200 | 25 | |||||||||
Molex, Inc. | 400 | 12 | |||||||||
National Semiconductor Corp. | 800 | 21 | |||||||||
Novellus Systems, Inc. ‡ | 300 | 10 | |||||||||
NVIDIA Corp. ‡ | 1,100 | 36 | |||||||||
PMC-Sierra, Inc. ‡ | 600 | 5 | |||||||||
QLogic Corp. ‡ | 500 | 9 | |||||||||
Sanmina-SCI Corp. ‡ | 1,600 | 5 | |||||||||
Solectron Corp. ‡ | 2,700 | 9 | |||||||||
Texas Instruments, Inc. | 4,100 | 141 | |||||||||
Tyco International, Ltd. | 5,600 | 183 | |||||||||
Xilinx, Inc. | 1,000 | 29 | |||||||||
Entertainment (0.1%) | |||||||||||
International Game Technology | 1,000 | 38 | |||||||||
Fabricated Metal Products (0.2%) | |||||||||||
Fortune Brands, Inc. | 500 | 40 | |||||||||
Parker Hannifin Corp. | 350 | 32 | |||||||||
Finance (1.2%) | |||||||||||
SPDR Trust Series 1 | 3,040 | 451 | |||||||||
Food & Kindred Products (2.5%) | |||||||||||
Altria Group, Inc. | 5,950 | 410 | |||||||||
Archer-Daniels-Midland Co. | 1,800 | 70 | |||||||||
Campbell Soup Co. | 600 | 23 | |||||||||
ConAgra Foods, Inc. | 1,500 | 37 | |||||||||
General Mills, Inc. | 1,000 | 60 | |||||||||
Hercules, Inc. ‡ | 300 | 6 | |||||||||
Hershey Co. (The) | 500 | 27 | |||||||||
HJ Heinz Co. | 1,000 | 47 | |||||||||
Kellogg Co. | 700 | 37 | |||||||||
Kraft Foods, Inc.–Class A | 4,517 | 151 | |||||||||
McCormick & Co., Inc. | 400 | 15 | |||||||||
Sara Lee Corp. | 2,200 | 36 | |||||||||
Tyson Foods, Inc.–Class A | 700 | 15 | |||||||||
WM Wrigley Jr. Co. | 675 | 40 | |||||||||
Food Stores (0.3%) | |||||||||||
Kroger Co. | 2,100 | 62 | |||||||||
Safeway, Inc. | 1,300 | 47 | |||||||||
Whole Foods Market, Inc. | 450 | 21 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 4
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Furniture & Fixtures (0.3%) | |||||||||||
Johnson Controls, Inc. | 600 | $ | 61 | ||||||||
Leggett & Platt, Inc. | 500 | 12 | |||||||||
Masco Corp. | 1,200 | 33 | |||||||||
Furniture & Home Furnishings Stores (0.1%) | |||||||||||
Bed Bath & Beyond, Inc. ‡ | 800 | 33 | |||||||||
Gas Production & Distribution (0.6%) | |||||||||||
El Paso Corp. | 2,100 | 31 | |||||||||
KeySpan Corp. | 500 | 21 | |||||||||
Kinder Morgan, Inc. | 300 | 32 | |||||||||
Nicor, Inc. | 100 | 5 | |||||||||
Questar Corp. | 300 | 29 | |||||||||
Spectra Energy Corp. | 1,874 | 49 | |||||||||
Williams Cos., Inc. (The) | 1,700 | 50 | |||||||||
Health Services (0.4%) | |||||||||||
Coventry Health Care, Inc. ‡ | 500 | 29 | |||||||||
Express Scripts, Inc. ‡ | 400 | 38 | |||||||||
Laboratory Corp. of America Holdings ‡ | 400 | 32 | |||||||||
Manor Care, Inc. | 200 | 13 | |||||||||
Quest Diagnostics, Inc. | 500 | 24 | |||||||||
Tenet Healthcare Corp. ‡ | 1,400 | 10 | |||||||||
Holding & Other Investment Offices (0.6%) | |||||||||||
Apartment Investment & Management Co. REIT–Class A | 240 | 13 | |||||||||
Archstone-Smith Trust REIT | 600 | 31 | |||||||||
Equity Residential REIT | 900 | 42 | |||||||||
Host Hotels & Resorts, Inc. REIT | 1,500 | 38 | |||||||||
Kimco Realty Corp. REIT | 700 | 34 | |||||||||
Plum Creek Timber Co., Inc. REIT | 500 | 20 | |||||||||
Public Storage, Inc. REIT | 300 | 28 | |||||||||
Vornado Realty Trust REIT | 350 | 41 | |||||||||
Hotels & Other Lodging Places (0.4%) | |||||||||||
Hilton Hotels Corp. | 1,100 | 37 | |||||||||
Marriott International, Inc.–Class A | 1,000 | 45 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. | 600 | 40 | |||||||||
Wyndham Worldwide Corp. ‡ | 580 | 20 | |||||||||
Industrial Machinery & Equipment (1.9%) | |||||||||||
American Standard Cos., Inc. | 500 | 27 | |||||||||
Applied Materials, Inc. | 3,900 | 75 | |||||||||
Baker Hughes, Inc. | 900 | 72 | |||||||||
Black & Decker Corp. | 200 | 18 | |||||||||
Caterpillar, Inc. | 1,800 | 131 | |||||||||
Cummins, Inc. | 300 | 28 | |||||||||
Deere & Co. | 700 | 77 | |||||||||
Dover Corp. | 600 | 29 |
Shares | Value | ||||||||||
Industrial Machinery & Equipment (continued) | |||||||||||
Eaton Corp. | 400 | $ | 36 | ||||||||
Illinois Tool Works, Inc. | 1,200 | 62 | |||||||||
Ingersoll-Rand Co.–Class A | 900 | 40 | |||||||||
National Oilwell Varco, Inc. ‡ | 500 | 42 | |||||||||
Pall Corp. | 400 | 17 | |||||||||
Smith International, Inc. | 600 | 31 | |||||||||
Stanley Works (The) | 200 | 12 | |||||||||
Terex Corp. ‡ | 300 | 23 | |||||||||
Instruments & Related Products (1.1%) | |||||||||||
Agilent Technologies, Inc. ‡ | 1,200 | 41 | |||||||||
Bausch & Lomb, Inc. | 200 | 12 | |||||||||
Danaher Corp. | 700 | 50 | |||||||||
Eastman Kodak Co. | 900 | 22 | |||||||||
KLA-Tencor Corp. | 600 | 33 | |||||||||
PerkinElmer, Inc. | 400 | 10 | |||||||||
Raytheon Co. | 1,300 | 70 | |||||||||
Rockwell Automation, Inc. | 500 | 30 | |||||||||
Snap-On, Inc. | 200 | 11 | |||||||||
Tektronix, Inc. | 200 | 6 | |||||||||
Teradyne, Inc. ‡ | 600 | 10 | |||||||||
Thermo Electron Corp. ‡ | 1,200 | 62 | |||||||||
Waters Corp. ‡ | 300 | 18 | |||||||||
Xerox Corp. ‡ | 2,800 | 52 | |||||||||
Insurance (4.5%) | |||||||||||
ACE, Ltd. | 1,000 | 59 | |||||||||
Aetna, Inc. | 1,500 | 70 | |||||||||
AFLAC, Inc. | 1,500 | 77 | |||||||||
Allstate Corp. (The) | 1,800 | 112 | |||||||||
AMBAC Financial Group, Inc. | 300 | 28 | |||||||||
American International Group, Inc. | 7,300 | 510 | |||||||||
Assurant, Inc. | 250 | 14 | |||||||||
Chubb Corp. | 1,200 | 65 | |||||||||
Cigna Corp. | 300 | 47 | |||||||||
Cincinnati Financial Corp. | 482 | 22 | |||||||||
Loews Corp. | 1,300 | 61 | |||||||||
MBIA, Inc. | 400 | 28 | |||||||||
MGIC Investment Corp. | 200 | 12 | |||||||||
Principal Financial Group | 800 | 51 | |||||||||
Progressive Corp. (The) | 2,200 | 51 | |||||||||
SAFECO Corp. | 300 | 20 | |||||||||
Travelers Cos., Inc. (The) | 1,947 | 105 | |||||||||
UnitedHealth Group, Inc. | 3,800 | 202 | |||||||||
Unum Group | 1,000 | 25 | |||||||||
WellPoint, Inc. ‡ | 1,700 | 134 | |||||||||
XL Capital, Ltd.–Class A | 500 | 39 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 5
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Insurance Agents, Brokers & Service (0.5%) | |||||||||||
AON Corp. | 900 | $ | 35 | ||||||||
Hartford Financial Services Group, Inc. (The) | 900 | 91 | |||||||||
Humana, Inc. ‡ | 500 | 32 | |||||||||
Marsh & McLennan Cos., Inc. | 1,600 | 51 | |||||||||
Leather & Leather Products (0.1%) | |||||||||||
Coach, Inc. ‡ | 1,100 | 54 | |||||||||
Life Insurance (1.0%) | |||||||||||
Genworth Financial, Inc.–Class A | 1,200 | 44 | |||||||||
Lincoln National Corp. | 849 | 60 | |||||||||
Metlife, Inc. | 2,200 | 145 | |||||||||
Prudential Financial, Inc. | 1,300 | 123 | |||||||||
Torchmark Corp. | 300 | 20 | |||||||||
Lumber & Other Building Materials (0.9%) | |||||||||||
Home Depot, Inc. (The) | 5,800 | 220 | |||||||||
Lowe's Cos., Inc. | 4,300 | 131 | |||||||||
Lumber & Wood Products (0.1%) | |||||||||||
Weyerhaeuser Co. | 600 | 47 | |||||||||
Management Services (0.1%) | |||||||||||
Paychex, Inc. | 1,000 | 37 | |||||||||
Medical Instruments & Supplies (1.7%) | |||||||||||
Applera Corp.-Applied Biosystems Group | 500 | 16 | |||||||||
Bard, (C.R.) Inc. | 300 | 25 | |||||||||
Baxter International, Inc. | 1,800 | 102 | |||||||||
Becton Dickinson & Co. | 700 | 55 | |||||||||
Biomet, Inc. | 700 | 30 | |||||||||
Boston Scientific Corp. ‡ | 3,315 | 51 | |||||||||
Medtronic, Inc. | 3,200 | 169 | |||||||||
Millipore Corp. ‡ | 200 | 15 | |||||||||
St. Jude Medical, Inc. ‡ | 1,100 | 47 | |||||||||
Stryker Corp. | 900 | 58 | |||||||||
Varian Medical Systems, Inc. ‡ | 350 | 15 | |||||||||
Zimmer Holdings, Inc. ‡ | 700 | 63 | |||||||||
Metal Cans & Shipping Containers (0.0%) | |||||||||||
Ball Corp. | 300 | 15 | |||||||||
Metal Mining (0.3%) | |||||||||||
Freeport-McMoRan Copper & Gold, Inc. | 1,069 | 72 | |||||||||
Newmont Mining Corp. | 1,300 | 54 | |||||||||
Mining (0.3%) | |||||||||||
Consol Energy, Inc. | 575 | 24 | |||||||||
Peabody Energy Corp. | 800 | 38 | |||||||||
Vulcan Materials Co. | 300 | 37 |
Shares | Value | ||||||||||
Mortgage Bankers & Brokers (0.2%) | |||||||||||
Countrywide Financial Corp. | 1,800 | $ | 67 | ||||||||
Motion Pictures (1.0%) | |||||||||||
News Corp., Inc.–Class A | 6,700 | 150 | |||||||||
Time Warner, Inc. | 10,800 | 223 | |||||||||
Office Property (0.1%) | |||||||||||
Boston Properties, Inc. REIT | 300 | 35 | |||||||||
Oil & Gas Extraction (2.8%) | |||||||||||
Anadarko Petroleum Corp. | 1,400 | 65 | |||||||||
Apache Corp. | 910 | 66 | |||||||||
BJ Services Co. | 900 | 26 | |||||||||
Chesapeake Energy Corp. | 1,250 | 42 | |||||||||
Devon Energy Corp. | 1,300 | 95 | |||||||||
ENSCO International, Inc. | 200 | 11 | |||||||||
EOG Resources, Inc. | 700 | 51 | |||||||||
Halliburton Co. | 2,600 | 83 | |||||||||
Nabors Industries, Ltd. ‡ | 800 | 26 | |||||||||
Noble Corp. | 400 | 34 | |||||||||
Occidental Petroleum Corp. | 2,500 | 127 | |||||||||
Rowan Cos., Inc. | 300 | 11 | |||||||||
Schlumberger, Ltd. | 3,300 | 244 | |||||||||
Transocean, Inc. ‡ | 900 | 78 | |||||||||
Weatherford International, Ltd. ‡ | 1,000 | 52 | |||||||||
XTO Energy, Inc. | 1,133 | 61 | |||||||||
Paper & Allied Products (1.0%) | |||||||||||
3M Co. | 2,100 | 174 | |||||||||
Avery Dennison Corp. | 300 | 19 | |||||||||
Bemis Co. | 300 | 10 | |||||||||
International Paper Co. | 1,300 | 49 | |||||||||
Kimberly-Clark Corp. | 1,300 | 92 | |||||||||
MeadWestvaco Corp. | 500 | 17 | |||||||||
OfficeMax, Inc. | 200 | 10 | |||||||||
Pactiv Corp. ‡ | 400 | 14 | |||||||||
Temple-Inland, Inc. | 300 | 18 | |||||||||
Personal Credit Institutions (0.4%) | |||||||||||
Capital One Financial Corp. | 1,025 | 76 | |||||||||
SLM Corp. | 1,200 | 65 | |||||||||
Personal Services (0.1%) | |||||||||||
H&R Block, Inc. | 1,000 | 23 | |||||||||
Petroleum Refining (6.2%) | |||||||||||
Ashland, Inc. | 200 | 12 | |||||||||
Chevron Corp. | 6,041 | 470 | |||||||||
ConocoPhillips | 4,617 | 320 | |||||||||
Exxon Mobil Corp. | 16,050 | 1,274 | |||||||||
Hess Corp. | 700 | 40 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 6
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Petroleum Refining (continued) | |||||||||||
Marathon Oil Corp. | 1,070 | $ | 109 | ||||||||
Murphy Oil Corp. | 600 | 33 | |||||||||
Sunoco, Inc. | 300 | 23 | |||||||||
Valero Energy Corp. | 1,700 | 119 | |||||||||
Pharmaceuticals (8.3%) | |||||||||||
Abbott Laboratories | 4,300 | 243 | |||||||||
Allergan, Inc. | 500 | 61 | |||||||||
AmerisourceBergen Corp. | 600 | 30 | |||||||||
Amgen, Inc. ‡ | 3,272 | 210 | |||||||||
Barr Pharmaceuticals, Inc. ‡ | 250 | 12 | |||||||||
Biogen Idec, Inc. ‡ | 1,000 | 47 | |||||||||
Bristol-Myers Squibb Co. | 5,650 | 163 | |||||||||
Cardinal Health, Inc. | 1,100 | 77 | |||||||||
Celgene Corp. ‡ | 900 | 55 | |||||||||
Forest Laboratories, Inc. ‡ | 900 | 48 | |||||||||
Genzyme Corp. ‡ | 800 | 52 | |||||||||
Gilead Sciences, Inc. ‡ | 1,300 | 106 | |||||||||
Hospira, Inc. ‡ | 420 | 17 | |||||||||
Johnson & Johnson | 8,150 | 523 | |||||||||
King Pharmaceuticals, Inc. ‡ | 700 | 14 | |||||||||
Lilly (Eli) & Co. | 2,900 | 171 | |||||||||
McKesson Corp. | 900 | 53 | |||||||||
Medco Health Solutions, Inc. ‡ | 853 | 67 | |||||||||
MedImmune, Inc. ‡ | 700 | 40 | |||||||||
Merck & Co., Inc. | 6,150 | 316 | |||||||||
Mylan Laboratories | 600 | 13 | |||||||||
Pfizer, Inc. | 19,990 | 529 | |||||||||
Schering-Plough Corp. | 4,100 | 130 | |||||||||
Sigma-Aldrich Corp. | 400 | 17 | |||||||||
Watson Pharmaceuticals, Inc. ‡ | 300 | 8 | |||||||||
Wyeth | 3,800 | 211 | |||||||||
Primary Metal Industries (0.6%) | |||||||||||
Alcoa, Inc. | 2,500 | 89 | |||||||||
Allegheny Technologies, Inc. | 300 | 33 | |||||||||
Nucor Corp. | 900 | 57 | |||||||||
United States Steel Corp. | 400 | 41 | |||||||||
Printing & Publishing (0.6%) | |||||||||||
CBS Corp.–Class B | 2,150 | 68 | |||||||||
Dow Jones & Co., Inc. | 200 | 7 | |||||||||
Gannett Co., Inc. | 700 | 40 | |||||||||
McGraw-Hill Cos., Inc. (The) | 1,100 | 72 | |||||||||
Meredith Corp. | 100 | 6 | |||||||||
New York Times Co.–Class A | 400 | 9 | |||||||||
RR Donnelley & Sons Co. | 600 | 24 | |||||||||
Scripps (E.W.) Co. (The) | 200 | 9 | |||||||||
Tribune Co. | 500 | 16 |
Shares | Value | ||||||||||
Radio & Television Broadcasting (0.4%) | |||||||||||
Clear Channel Communications, Inc. | 1,500 | $ | 53 | ||||||||
IAC/InterActiveCorp. ‡ | 600 | 23 | |||||||||
Viacom, Inc.–Class B ‡ | 2,050 | 85 | |||||||||
Radio, Television & Computer Stores (0.2%) | |||||||||||
Best Buy Co., Inc. | 1,250 | 58 | |||||||||
Circuit City Stores, Inc. | 400 | 7 | |||||||||
RadioShack Corp. | 400 | 12 | |||||||||
Railroads (0.8%) | |||||||||||
Burlington Northern Santa Fe Corp. | 1,100 | 96 | |||||||||
CSX Corp. | 1,300 | 56 | |||||||||
Norfolk Southern Corp. | 1,200 | 64 | |||||||||
Union Pacific Corp. | 800 | 91 | |||||||||
Real Estate (0.0%) | |||||||||||
CB Richard Ellis Group, Inc.–Class A ‡ | 500 | 17 | |||||||||
Regional Mall (0.2%) | |||||||||||
Simon Property Group, Inc. REIT | 700 | 81 | |||||||||
Residential Building Construction (0.1%) | |||||||||||
DR Horton, Inc. | 800 | 18 | |||||||||
Lennar Corp.–Class A | 400 | 17 | |||||||||
Restaurants (0.8%) | |||||||||||
Darden Restaurants, Inc. | 400 | 17 | |||||||||
McDonald's Corp. | 3,400 | 164 | |||||||||
Starbucks Corp. ‡ | 2,200 | 68 | |||||||||
Wendy's International, Inc. | 300 | 11 | |||||||||
Yum! Brands, Inc. | 800 | 49 | |||||||||
Retail Trade (2.0%) | |||||||||||
Amazon.com, Inc. ‡ | 900 | 55 | |||||||||
Big Lots, Inc. ‡ | 300 | 10 | |||||||||
Costco Wholesale Corp. | 1,300 | 70 | |||||||||
Dollar General Corp. | 900 | 19 | |||||||||
Family Dollar Stores, Inc. | 400 | 13 | |||||||||
Office Depot, Inc. ‡ | 800 | 27 | |||||||||
Sears Holdings Corp. ‡ | 183 | 35 | |||||||||
Staples, Inc. | 2,050 | 51 | |||||||||
Target Corp. | 2,500 | 148 | |||||||||
Tiffany & Co. | 400 | 19 | |||||||||
Wal-Mart Stores, Inc. | 6,900 | 331 | |||||||||
Rubber & Misc. Plastic Products (0.3%) | |||||||||||
Goodyear Tire & Rubber Co. (The) ‡ | 500 | 17 | |||||||||
Newell Rubbermaid, Inc. | 800 | 25 | |||||||||
NIKE, Inc.–Class B | 1,100 | 59 | |||||||||
Sealed Air Corp. | 500 | 16 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 7
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Savings Institutions (0.4%) | |||||||||||
Hudson City Bancorp, Inc. | 1,200 | $ | 16 | ||||||||
Sovereign Bancorp, Inc. | 1,055 | 26 | |||||||||
Washington Mutual, Inc. | 2,540 | 107 | |||||||||
Security & Commodity Brokers (4.0%) | |||||||||||
American Express Co. | 3,300 | 200 | |||||||||
Ameriprise Financial, Inc. | 720 | 43 | |||||||||
Bear Stearns Cos. Inc. (The) | 400 | 62 | |||||||||
Charles Schwab Corp. (The) | 3,000 | 57 | |||||||||
Chicago Mercantile Exchange | 125 | 65 | |||||||||
E*TRADE Financial Corp. ‡ | 1,250 | 28 | |||||||||
Federated Investors, Inc.–Class B | 250 | 10 | |||||||||
Franklin Resources, Inc. | 500 | 66 | |||||||||
Goldman Sachs Group, Inc. (The) | 1,200 | 262 | |||||||||
Janus Capital Group, Inc. | 600 | 15 | |||||||||
Legg Mason, Inc. | 400 | 40 | |||||||||
Lehman Brothers Holdings, Inc. | 1,600 | 120 | |||||||||
Merrill Lynch & Co., Inc. | 2,600 | 235 | |||||||||
Morgan Stanley | 3,100 | 260 | |||||||||
T. Rowe Price Group, Inc. | 800 | 40 | |||||||||
Western Union Co. (The) | 2,195 | 46 | |||||||||
Shopping Center (0.0%) | |||||||||||
Developers Diversified Realty Corp. REIT | 300 | 19 | |||||||||
Telecommunications (3.5%) | |||||||||||
ALLTEL Corp. | 1,100 | 69 | |||||||||
AT&T, Inc. | 17,659 | 684 | |||||||||
CenturyTel, Inc. | 300 | 14 | |||||||||
Citizens Communications Co. | 1,000 | 16 | |||||||||
Embarq Corp. | 451 | 27 | |||||||||
Qwest Communications International ‡ | 4,500 | 40 | |||||||||
Sprint Nextel Corp. | 8,434 | 169 | |||||||||
Verizon Communications, Inc. | 8,200 | 313 | |||||||||
Windstream Corp. | 1,447 | 21 | |||||||||
Tobacco Products (0.1%) | |||||||||||
Reynolds American, Inc. | 400 | 26 | |||||||||
UST, Inc. | 500 | 28 | |||||||||
Toys, Games & Hobbies (0.1%) | |||||||||||
Hasbro, Inc. | 500 | 16 | |||||||||
Mattel, Inc. | 1,200 | 34 | |||||||||
Transportation & Public Utilities (0.1%) | |||||||||||
CH Robinson Worldwide, Inc. | 500 | 27 |
Shares | Value | ||||||||||
Transportation Equipment (0.0%) | |||||||||||
Brunswick Corp. | 300 | $ | 10 | ||||||||
Trucking & Warehousing (0.5%) | |||||||||||
United Parcel Service, Inc.-Class B | 3,000 | 211 | |||||||||
Warehouse (0.1%) | |||||||||||
Prologis REIT | 750 | 49 | |||||||||
Water Transportation (0.2%) | |||||||||||
Carnival Corp. | 1,300 | 64 | |||||||||
Wholesale Trade Durable Goods (0.1%) | |||||||||||
Grainger (W.W.), Inc. | 200 | 16 | |||||||||
Patterson Cos., Inc. ‡ | 400 | 14 | |||||||||
Wholesale Trade Nondurable Goods (0.3%) | |||||||||||
Dean Foods Co. | 400 | 15 | |||||||||
SUPERVALU, Inc. | 618 | 28 | |||||||||
SYSCO Corp. | 1,800 | 59 | |||||||||
Total Common Stocks (cost: $24,498) | 38,428 | ||||||||||
Contracts u | Value | ||||||||||
PURCHASED OPTIONS (0.2%) | |||||||||||
Put Options (0.2%) | |||||||||||
S&P 500 Index | 37 | $ | 2 | ||||||||
Put Strike $1,300.00 | |||||||||||
Expires 05/19/2007 | |||||||||||
S&P 500 Index Put Strike $1,325.00 Expires 06/16/2007 | 39 | 10 | |||||||||
S&P 500 Index Put Strike $1,350.00 Expires 06/16/2007 | 32 | 11 | |||||||||
S&P 500 Index Put Strike $1,300.00 Expires 06/17/2007 | 73 | 14 | |||||||||
S&P 500 Index Put Strike $1,350.00 Expires 07/21/2007 | 37 | 25 | |||||||||
S&P 500 Index Put Strike $1,325.00 Expires 09/22/2007 | 40 | 41 | |||||||||
Total Purchased Options (cost: $178) | 103 | ||||||||||
Total Investment Securities (cost: $24,676) # | $ | 38,531 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 8
TA IDEX Protected Principal Stock
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Contracts u | Value | ||||||||||
WRITTEN OPTIONS (-3.9%) | |||||||||||
Covered Call Options (-3.9%) | |||||||||||
S&P 500 Index | 28 | $ | (245 | ) | |||||||
Call Strike $1,400.00 | |||||||||||
Expires 05/19/2007 | |||||||||||
S&P 500 Index Call Strike $1,450.00 Expires 05/19/2007 | 34 | (142 | ) | ||||||||
S&P 500 Index Call Strike $1,425.00 Expires 05/19/2007 | 33 | (210 | ) | ||||||||
S&P 500 Index Call Strike $1,475.00 Expires 05/19/2007 | 33 | (75 | ) | ||||||||
S&P 500 Index Call Strike $1,425.00 Expires 06/16/2007 | 34 | (249 | ) | ||||||||
S&P 500 Index Call Strike $1,475.00 Expires 06/16/2007 | 28 | (96 | ) | ||||||||
S&P 500 Index Call Strike $1,400.00 Expires 06/16/2007 | 33 | (315 | ) | ||||||||
S&P 500 Index Call Strike $1,450.00 Expires 06/16/2007 | 35 | (185 | ) | ||||||||
Total Written Options (premiums: $850) | (1,517 | ) |
NOTES TO SCHEDULE OF INVESTMENTS:
l Substantially all of the Fund's securities are pledged as collateral by the custodian for the listed open option contracts written by the Fund.
‡ Non-income producing.
u Contract amounts are not in thousands.
# Aggregate cost for federal income tax purposes is $24,905. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $14,118 and $492, respectively. Net unrealized appreciation for tax purposes is $13,626.
DEFINITIONS:
REIT Real Estate Investment Trust
SPDR Standard & Poor's Depository Receipts
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 9
TA IDEX Protected Principal Stock
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $24,676) | $ | 38,531 | |||||
Cash | 1,794 | ||||||
Receivables: | |||||||
Interest | 5 | ||||||
Dividends | 40 | ||||||
Other | 4 | ||||||
40,374 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 24 | ||||||
Management and advisory fees | 43 | ||||||
Distribution and service fees | 30 | ||||||
Transfer agent fees | 3 | ||||||
Administration fees | 1 | ||||||
Written options (premiums $850) | 1,517 | ||||||
Other | 15 | ||||||
1,633 | |||||||
Net Assets | $ | 38,741 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 25,919 | |||||
Undistributed (accumulated) net investment income (loss) | (62 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities and written options | (304 | ) | |||||
Net unrealized appreciation (depreciation) on: | |||||||
Investment securities | 13,855 | ||||||
Written option contracts | (667 | ) | |||||
Net Assets | $ | 38,741 | |||||
Net Assets by Class: | |||||||
Class A | $ | 5,146 | |||||
Class B | 28,568 | ||||||
Class C | 3,702 | ||||||
Class M | 1,325 | ||||||
Shares Outstanding: | |||||||
Class A | 408 | ||||||
Class B | 2,310 | ||||||
Class C | 300 | ||||||
Class M | 107 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 12.61 | |||||
Class B | 12.37 | ||||||
Class C | 12.35 | ||||||
Class M | 12.39 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 13.34 | |||||
Class M | 12.52 |
(a) 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 and C shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends | $ | 400 | |||||
Interest | 37 | ||||||
437 | |||||||
Expenses: | |||||||
Management and advisory fees | 259 | ||||||
Distribution and service fees: | |||||||
Class A | 9 | ||||||
Class B | 147 | ||||||
Class C | 19 | ||||||
Class M | 6 | ||||||
Transfer agent fees: | |||||||
Class A | 2 | ||||||
Class B | 12 | ||||||
Class C | 2 | ||||||
Class M | 1 | ||||||
Printing and shareholder reports | 3 | ||||||
Custody fees | 18 | ||||||
Administration fees | 4 | ||||||
Legal fees | 1 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 1 | ||||||
Other | 5 | ||||||
Total expenses | 499 | ||||||
Net Investment Income (Loss) | (62 | ) | |||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 1,091 | ||||||
Written option contracts | (1,304 | ) | |||||
(213 | ) | ||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 1,447 | ||||||
Written option contracts | 149 | ||||||
1,596 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Written Options | 1,383 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,321 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 10
TA IDEX Protected Principal Stock
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | (62 | ) | $ | (220 | ) | |||||
Net realized gain (loss) from investment securities and written options | (213 | ) | 2,337 | ||||||||
Change in unrealized appreciation (depreciation) on investment securities and written options | 1,596 | 1,185 | |||||||||
1,321 | 3,302 | ||||||||||
Capital Share Transactions: | |||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (771 | ) | (1,684 | ) | |||||||
Class B | (2,659 | ) | (6,580 | ) | |||||||
Class C | (248 | ) | (1,422 | ) | |||||||
Class M | (80 | ) | (473 | ) | |||||||
(3,758 | ) | (10,159 | ) | ||||||||
(3,758 | ) | (10,159 | ) | ||||||||
Net increase (decrease) in net assets | (2,437 | ) | (6,857 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 41,178 | 48,035 | |||||||||
End of period | $ | 38,741 | $ | 41,178 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (62 | ) | $ | – | ||||||
Share Activity: | |||||||||||
Shares redeemed: | |||||||||||
Class A | (62 | ) | (144 | ) | |||||||
Class B | (218 | ) | (570 | ) | |||||||
Class C | (20 | ) | (123 | ) | |||||||
Class M | (6 | ) | (41 | ) | |||||||
(306 | ) | (878 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (62 | ) | (144 | ) | |||||||
Class B | (218 | ) | (570 | ) | |||||||
Class C | (20 | ) | (123 | ) | |||||||
Class M | (6 | ) | (41 | ) | |||||||
(306 | ) | (878 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 11
TA IDEX Protected Principal Stock
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 12.17 | $ | 0.02 | $ | 0.42 | $ | 0.44 | $ | – | $ | – | $ | – | $ | 12.61 | ||||||||||||||||||||||
10/31/2006 | 11.24 | 0.01 | 0.92 | 0.93 | – | – | – | 12.17 | |||||||||||||||||||||||||||||||
10/31/2005 | 10.64 | 0.01 | 0.59 | 0.60 | – | – | – | 11.24 | |||||||||||||||||||||||||||||||
10/31/2004 | 10.15 | (0.05 | ) | 0.54 | 0.49 | – | – | – | 10.64 | ||||||||||||||||||||||||||||||
10/31/2003 | 10.01 | (0.04 | ) | 0.92 | 0.88 | – | (0.74 | ) | (0.74 | ) | 10.15 | ||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.02 | ) | 0.03 | 0.01 | – | – | – | 10.01 | ||||||||||||||||||||||||||||||
Class B | 4/30/2007 | 11.97 | (0.02 | ) | 0.42 | 0.40 | – | – | – | 12.37 | |||||||||||||||||||||||||||||
10/31/2006 | 11.13 | (0.07 | ) | 0.91 | 0.84 | – | – | – | 11.97 | ||||||||||||||||||||||||||||||
10/31/2005 | 10.60 | (0.06 | ) | 0.59 | 0.53 | – | – | – | 11.13 | ||||||||||||||||||||||||||||||
10/31/2004 | 10.15 | (0.10 | ) | 0.55 | 0.45 | – | – | – | 10.60 | ||||||||||||||||||||||||||||||
10/31/2003 | 10.01 | (0.11 | ) | 0.99 | 0.88 | – | (0.74 | ) | (0.74 | ) | 10.15 | ||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.04 | ) | 0.05 | 0.01 | – | – | – | 10.01 | ||||||||||||||||||||||||||||||
Class C | 4/30/2007 | 11.95 | (0.02 | ) | 0.42 | 0.40 | – | – | – | 12.35 | |||||||||||||||||||||||||||||
10/31/2006 | 11.12 | (0.07 | ) | 0.90 | 0.83 | – | – | – | 11.95 | ||||||||||||||||||||||||||||||
10/31/2005 | 10.58 | (0.05 | ) | 0.59 | 0.54 | – | – | – | 11.12 | ||||||||||||||||||||||||||||||
10/31/2004 | 10.15 | (0.12 | ) | 0.55 | 0.43 | – | – | – | 10.58 | ||||||||||||||||||||||||||||||
10/31/2003 | 10.01 | (0.11 | ) | 0.99 | 0.88 | – | (0.74 | ) | (0.74 | ) | 10.15 | ||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.04 | ) | 0.05 | 0.01 | – | – | – | 10.01 | ||||||||||||||||||||||||||||||
Class M | 4/30/2007 | 11.99 | (0.02 | ) | 0.42 | 0.40 | – | – | – | 12.39 | |||||||||||||||||||||||||||||
10/31/2006 | 11.14 | (0.06 | ) | 0.91 | 0.85 | – | – | – | 11.99 | ||||||||||||||||||||||||||||||
10/31/2005 | 10.59 | (0.04 | ) | 0.59 | 0.55 | – | – | – | 11.14 | ||||||||||||||||||||||||||||||
10/31/2004 | 10.14 | (0.10 | ) | 0.55 | 0.45 | – | – | – | 10.59 | ||||||||||||||||||||||||||||||
10/31/2003 | 10.01 | (0.10 | ) | 0.97 | 0.87 | – | (0.74 | ) | (0.74 | ) | 10.14 | ||||||||||||||||||||||||||||
10/31/2002 | 10.00 | (0.04 | ) | 0.05 | 0.01 | – | – | – | 10.01 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 3.62 | % | $ | 5,146 | 1.95 | % | 1.95 | % | 0.25 | % | 1 | % | ||||||||||||||||||
10/31/2006 | 8.27 | 5,724 | 1.96 | 1.96 | 0.07 | 4 | |||||||||||||||||||||||||
10/31/2005 | 5.64 | 6,906 | 2.12 | (h) | 2.12 | (h) | 0.05 | 3 | |||||||||||||||||||||||
10/31/2004 | 4.82 | 8,006 | 2.22 | (i) | 2.22 | (i) | (0.53 | ) | 1 | ||||||||||||||||||||||
10/31/2003 | 9.44 | 9,320 | 2.25 | 2.25 | (0.46 | ) | 3 | ||||||||||||||||||||||||
10/31/2002 | 0.10 | 10,381 | 2.25 | 2.62 | (0.70 | ) | 14 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 3.34 | 28,568 | 2.59 | 2.59 | (0.40 | ) | 1 | |||||||||||||||||||||||
10/31/2006 | 7.55 | 30,268 | 2.61 | 2.61 | (0.59 | ) | 4 | ||||||||||||||||||||||||
10/31/2005 | 5.00 | 34,487 | 2.69 | (h) | 2.69 | (h) | (0.51 | ) | 3 | ||||||||||||||||||||||
10/31/2004 | 4.43 | 40,756 | 2.69 | (i) | 2.69 | (i) | (0.97 | ) | 1 | ||||||||||||||||||||||
10/31/2003 | 9.44 | 46,709 | 2.90 | 2.90 | (1.11 | ) | 3 | ||||||||||||||||||||||||
10/31/2002 | 0.10 | 47,170 | 2.90 | 3.28 | (1.35 | ) | 14 | ||||||||||||||||||||||||
Class C | 4/30/2007 | 3.35 | 3,702 | 2.60 | 2.60 | (0.41 | ) | 1 | |||||||||||||||||||||||
10/31/2006 | 7.46 | 3,826 | 2.62 | 2.62 | (0.59 | ) | 4 | ||||||||||||||||||||||||
10/31/2005 | 5.10 | 4,924 | 2.69 | (h) | 2.69 | (h) | (0.50 | ) | 3 | ||||||||||||||||||||||
10/31/2004 | 4.24 | 6,423 | 2.82 | (i) | 2.82 | (i) | (1.12 | ) | 1 | ||||||||||||||||||||||
10/31/2003 | 9.44 | 7,041 | 2.90 | 2.90 | (1.11 | ) | 3 | ||||||||||||||||||||||||
10/31/2002 | 0.10 | 6,969 | 2.90 | 3.28 | (1.35 | ) | 14 | ||||||||||||||||||||||||
Class M | 4/30/2007 | 3.34 | 1,325 | 2.52 | 2.52 | (0.33 | ) | 1 | |||||||||||||||||||||||
10/31/2006 | 7.63 | 1,360 | 2.52 | 2.52 | (0.50 | ) | 4 | ||||||||||||||||||||||||
10/31/2005 | 5.19 | 1,718 | 2.59 | (h) | 2.59 | (h) | (0.39 | ) | 3 | ||||||||||||||||||||||
10/31/2004 | 4.44 | 2,316 | 2.80 | (i) | 2.80 | (i) | (1.01 | ) | 1 | ||||||||||||||||||||||
10/31/2003 | 9.33 | 3,576 | 2.80 | 2.80 | (1.01 | ) | 3 | ||||||||||||||||||||||||
10/31/2002 | 0.10 | 4,076 | 2.80 | 3.18 | (1.25 | ) | 14 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 12
TA IDEX Protected Principal Stock
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Protected Principal Stock commenced operations on July 1, 2002.
(h) Ratios of Total Expenses to Average Net Assets and net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment adviser. The impact of recaptured expenses was 0.10%, 0.10%, 0.10% and 0.10% for Class A, Class B, Class C and Class M, respectively (see Note 2).
(i) Ratios of Total Expenses to Average Net Assets and net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment adviser. The impact of recaptured expenses was 0.06%, 0.06%, 0.06% and 0.07% for Class A, Class B, Class C and Class M, respectively (see Note 2).
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 13
TA IDEX Protected Principal Stock
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Protected Principal Stock (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently has four classes of shares, Class A, Class B, Class C and Class M, each with different expense levels. Class B shares will convert to Class A shares eight years after purchase. Currently all share classes are closed to new investors. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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.
Dividend income 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.
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 Fund is 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.
Option contracts: The Fund may enter into options contracts to manage exposure to 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 imperfect correlation between the change in value of the securities held and the prices of the options contracts; the possibility of an illiquid market; and inability of the counterparty to meet the contracts terms. When the Fund writes a covered call or put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as an asset and as an equivalent liability. Options are marked-to-market daily to reflect the current value of the option written.
The underlying face amounts of open contracts at April 30, 2007 are listed in the Schedule of Investments.
Transactions in written call and put options were as follows:
Premium | Contracts* | ||||||||||
Balance at October 31, 2006 | $ | 1,250 | 294 | ||||||||
Sales | 3,856 | 988 | |||||||||
Closing Buys | (4,256 | ) | (1,024 | ) | |||||||
Expirations | – | – | |||||||||
Exercised | – | – | |||||||||
Balance at April 30, 2007 | $ | 850 | 258 |
* Contracts not in thousands
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 14
TA IDEX Protected Principal Stock
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
TA IDEX Protected Principal Stock Guarantee: The Fund's investment adviser, TFAI, guarantees shareholders a Guaranteed Amount five years after the end of the Offering Period. The Guaranteed Amount will be no less than the value of the shareholders' accounts on their Investment Date, less extraordinary charges, provided that shareholders have reinvested all dividends and distributions in additional shares and have redeemed no shares ("Guarantee"). Please see the Prospectus and Statement of Additional Information for further information on the Guarantee.
Investment advisory fee: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
1.30% of the first $100 million of ANA
1.25% of ANA over $100 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.90% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the waived advisory fees.
There are no amounts available for recapture at April 30, 2007.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class M | 0.90 | % |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
Underwriter commissions relate to front-end sales charges imposed for Class A and M shares and contingent deferred sales charges from Classes B, M, and certain A share redemptions. For the six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | – | |||||
Retained by Underwriter | – | ||||||
Contingent Deferred Sales Charge | 44 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $16 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $4.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 15
TA IDEX Protected Principal Stock
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $2. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities:
Long-Term | $ | 544 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 5,591 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, capital loss carryforwards, net operating losses, options and REITS.
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 773 | October 31, 2011 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 16
TA IDEX Protected Principal Stock
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6.–(continued)
value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 17
TA IDEX Protected Principal Stock
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Protected Principal Stock (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Gateway Investment Advisers, L.P. (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their decision s 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Trustees noted that TFAI and the Sub-Adviser had achieved below-median performance, as compared to comparable funds, over the one-, two- and three-year periods. However, the Trustees' noted the effect of the unique guarantee feature on the Fund's investment program, which guarantees investor returns. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate i n light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees dete rmined that the management fees and overall expense ratio of the Fund are relatively high compared with industry averages. However, the Trustees noted the effect of the unique guarantee feature on the level of management fees and the Fund's investment program, as well as the fact that investors' returns are guaranteed under that feature. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Protected Principal Stock 18
TA IDEX Protected Principal Stock (continued)
relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the unique characteristics of the Fund (which include a guarantee feature), management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board noted that the inclusion of an asset-based breakpoint in the Fund's advisory fee schedule benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows, although the Board noted that the Fund is closed to new investments, which limits the ability of the Fund to realize economies of scale except through asset growth due to improved performance. The Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the Fund's investment program and guarantee feature, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. The Trustees also concluded that they will ha ve the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the i mpact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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TA IDEX Protected Principal Stock 19
TA IDEX Templeton Transamerica Global
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,105.10 | 1.55 | % | $ | 8.09 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.11 | 1.55 | 7.75 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,101.80 | 2.20 | 11.46 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,013.88 | 2.20 | 10.99 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,101.60 | 2.20 | 11.46 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,013.88 | 2.20 | 10.99 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,108.10 | 0.95 | 4.97 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.08 | 0.95 | 4.76 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
This chart shows the percentage breakdown by region of the Fund's total investment securities.
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TA IDEX Templeton Transamerica Global
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS ( 98.3%) | |||||||||||
Australia (1.1%) | |||||||||||
National Australia Bank, Ltd. | 55,598 | $ | 1,990 | ||||||||
Qantas Airways, Ltd. | 190,170 | 842 | |||||||||
Austria (0.3%) | |||||||||||
Telekom Austria AG | 32,300 | 918 | |||||||||
Brazil (0.6%) | |||||||||||
Cia Vale do Rio Doce, ADR † | 18,510 | 752 | |||||||||
Empresa Brasileira de Aeronautica SA, ADR | 15,590 | 731 | |||||||||
Canada (1.9%) | |||||||||||
Jean Coutu Group, Inc.–Class A | 86,700 | 1,177 | |||||||||
Research In Motion, Ltd. †‡ | 13,500 | 1,776 | |||||||||
Suncor Energy, Inc. | 25,500 | 2,053 | |||||||||
Cayman Islands (0.7%) | |||||||||||
ACE, Ltd. | 29,360 | 1,746 | |||||||||
Denmark (0.8%) | |||||||||||
Vestas Wind Systems A/S ‡ | 31,370 | 2,063 | |||||||||
Finland (1.1%) | |||||||||||
Stora Enso Oyj–Class R | 80,690 | 1,484 | |||||||||
UPM-Kymmene Oyj | 50,550 | 1,254 | |||||||||
France (6.3%) | |||||||||||
Accor SA | 10,590 | 1,004 | |||||||||
AXA | 46,550 | 2,156 | |||||||||
France Telecom SA | 79,180 | 2,333 | |||||||||
Michelin (C.G.D.E.)–Class B | 23,487 | 3,007 | |||||||||
Sanofi-Aventis | 24,089 | 2,218 | |||||||||
Suez SA, ADR‡ | 25,350 | 1,448 | |||||||||
Thomson Multimedia SA | 49,160 | 953 | |||||||||
Thomson, Sponsored ADR | 26,060 | 502 | |||||||||
Total SA | 33,902 | 2,520 | |||||||||
Germany (5.3%) | |||||||||||
Bayerische Motoren Werke AG | 30,870 | 1,909 | |||||||||
Celesio AG | 24,940 | 1,793 | |||||||||
Deutsche Post AG | 78,810 | 2,726 | |||||||||
E.ON AG, ADR | 31,610 | 1,585 | |||||||||
Infineon Technologies AG ‡ | 115,240 | 1,802 | |||||||||
Muenchener Rueckversicherungs AG | 6,160 | 1,102 | |||||||||
Siemens AG | 22,340 | 2,720 | |||||||||
Hong Kong (0.7%) | |||||||||||
Cheung Kong Holdings, Ltd. (a) | 77,000 | 1,004 | |||||||||
Hutchison Whampoa, Ltd. | 80,000 | 775 | |||||||||
Israel (0.5%) | |||||||||||
Check Point Software Technologies, Ltd. ‡ | 54,980 | 1,295 |
Shares | Value | ||||||||||
Italy (2.2%) | |||||||||||
ENI SpA, ADR | 25,045 | $ | 1,659 | ||||||||
Mediaset SpA | 162,435 | 1,847 | |||||||||
UniCredito Italiano SpA †(a) | 206,413 | 2,135 | |||||||||
Japan (4.0%) | |||||||||||
FUJIFILM Holdings Corp. | 21,600 | 890 | |||||||||
Hitachi, Ltd. | 83,000 | 630 | |||||||||
Konica Minolta Holdings, Inc. | 93,500 | 1,279 | |||||||||
Mabuchi Motor Co., Ltd. † | 16,200 | 1,006 | |||||||||
Mitsubishi UFJ Financial Group, Inc., ADR † | 55,600 | 581 | |||||||||
Nintendo Co., Ltd. | 4,400 | 1,374 | |||||||||
Nomura Holdings, Inc. | 32,800 | 627 | |||||||||
Olympus Corp. | 25,800 | 902 | |||||||||
Sompo Japan Insurance, Inc. | 81,000 | 989 | |||||||||
Sony Corp., ADR | 13,410 | 714 | |||||||||
Takeda Pharmaceutical Co., Ltd. | 19,000 | 1,232 | |||||||||
Mexico (0.3%) | |||||||||||
Telefonos de Mexico SA de CV–Class L, ADR | 19,450 | 664 | |||||||||
Netherland Antilles (0.9%) | |||||||||||
Schlumberger, Ltd. | 33,000 | 2,436 | |||||||||
Netherlands (2.6%) | |||||||||||
ING Groep NV | 38,940 | 1,788 | |||||||||
ING Groep NV, ADR | 11,170 | 509 | |||||||||
Koninklijke Philips Electronics NV | 42,220 | 1,745 | |||||||||
Reed Elsevier NV | 98,440 | 1,855 | |||||||||
Vedior NV | 32,340 | 864 | |||||||||
Norway (0.9%) | |||||||||||
Telenor ASA | 127,390 | 2,383 | |||||||||
Portugal (0.5%) | |||||||||||
Portugal Telecom SGPS SA | 91,410 | 1,306 | |||||||||
Singapore (1.4%) | |||||||||||
DBS Group Holdings, Ltd. | 112,600 | 1,578 | |||||||||
DBS Group Holdings, Ltd., ADR † | 5,310 | 298 | |||||||||
Flextronics International, Ltd. ‡ | 62,280 | 694 | |||||||||
Singapore Telecommunications, Ltd. | 454,000 | 992 | |||||||||
South Korea (1.9%) | |||||||||||
Kookmin Bank, ADR | 10,370 | 931 | |||||||||
Korea Electric Power Corp., ADR † | 27,190 | 562 | |||||||||
KT Corp., ADR | 41,135 | 932 | |||||||||
Samsung Electronics Co., Ltd., GDR–144A | 6,530 | 2,005 | |||||||||
SK Telecom Co., Ltd., ADR † | 23,200 | 576 | |||||||||
Spain (2.5%) | |||||||||||
Banco Santander Central Hispano SA | 108,179 | 1,947 | |||||||||
Iberdrola SA | 15,000 | 747 |
The notes to the financial statements are an integral part of this report.
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SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Spain (continued) | |||||||||||
Repsol YPF SA | 48,018 | $ | 1,589 | ||||||||
Telefonica SA | 92,885 | 2,093 | |||||||||
Sweden (1.4%) | |||||||||||
Atlas Copco AB–Class A | 8,560 | 329 | |||||||||
Nordic Baltic Holding, FDR | 84,720 | 1,468 | |||||||||
Securitas AB–Class B | 44,390 | 682 | |||||||||
Securitas Systems AB–Class B ‡ | 44,390 | 165 | |||||||||
Svenska Cellulosa AB–Class B | 20,050 | 1,039 | |||||||||
Switzerland (3.1%) | |||||||||||
Lonza Group AG | 19,840 | 1,952 | |||||||||
Nestle SA, ADR † | 15,810 | 1,571 | |||||||||
Novartis AG, ADR | 24,470 | 1,421 | |||||||||
Swiss Reinsurance (a) | 15,160 | 1,435 | |||||||||
UBS AG–Registered | 19,900 | 1,305 | |||||||||
UBS AG–Registered | 5,800 | 376 | |||||||||
Taiwan (0.4%) | |||||||||||
Chunghwa Telecom Co., Ltd., ADR | 46,852 | 932 | |||||||||
United Kingdom (12.8%) | |||||||||||
Aviva PLC | 98,450 | 1,556 | |||||||||
BAE Systems PLC | 257,280 | 2,351 | |||||||||
BP PLC, ADR | 36,240 | 2,440 | |||||||||
British Sky Broadcasting PLC | 119,620 | 1,376 | |||||||||
Cadbury Schweppes PLC | 111,140 | 1,480 | |||||||||
Compass Group PLC | 354,050 | 2,581 | |||||||||
GlaxoSmithKline PLC | 73,959 | 2,143 | |||||||||
Group 4 Securicor PLC | 413,550 | 1,910 | |||||||||
HSBC Holdings PLC | 46,099 | 856 | |||||||||
HSBC Holdings PLC, ADR | 7,650 | 707 | |||||||||
Kingfisher PLC | 146,210 | 797 | |||||||||
Kingfisher PLC, Sponsored ADR † | 62,900 | 686 | |||||||||
National Grid PLC | 69,347 | 1,091 | |||||||||
Pearson PLC | 74,900 | 1,290 | |||||||||
Rentokil Initial PLC | 334,070 | 1,161 | |||||||||
Rolls-Royce Group PLC ‡ | 171,980 | 1,650 | |||||||||
Royal Bank of Scotland Group PLC | 59,310 | 2,289 | |||||||||
Royal Dutch Shell PLC–Class B | 62,150 | 2,206 | |||||||||
Smiths Group PLC | 39,100 | 848 | |||||||||
Unilever PLC | 43,647 | 1,376 | |||||||||
Vodafone Group PLC | 780,692 | 2,240 | |||||||||
United States (44.1%) | |||||||||||
Allergan, Inc. | 32,000 | 3,878 | |||||||||
American Express Co. | 80,000 | 4,854 | |||||||||
American International Group, Inc. | 26,000 | 1,818 | |||||||||
Ameriprise Financial, Inc. | 62,000 | 3,687 |
Shares | Value | ||||||||||
United States (continued) | |||||||||||
Apple, Inc. ‡ | 62,000 | $ | 6,188 | ||||||||
AT&T, Inc. | 62,000 | 2,401 | |||||||||
BlackRock, Inc. † | 8,000 | 1,198 | |||||||||
Caterpillar, Inc. | 40,000 | 2,905 | |||||||||
Chicago Mercantile Exchange † | 7,500 | 3,876 | |||||||||
Coach, Inc. ‡ | 57,900 | 2,827 | |||||||||
Disney (Walt) Co. (The) | 69,000 | 2,414 | |||||||||
Electronic Arts, Inc. ‡ | 33,080 | 1,668 | |||||||||
Expeditors International of Washington, Inc. | 70,000 | 2,926 | |||||||||
FedEx Corp. | 21,000 | 2,214 | |||||||||
Genentech, Inc. ‡ | 15,000 | 1,200 | |||||||||
General Electric Co. | 90,000 | 3,317 | |||||||||
Gilead Sciences, Inc. ‡ | 22,000 | 1,798 | |||||||||
Google, Inc.–Class A ‡ | 7,500 | 3,535 | |||||||||
Harley-Davidson, Inc. | 17,000 | 1,076 | |||||||||
Intuit, Inc. ‡ | 87,700 | 2,495 | |||||||||
Jacobs Engineering Group, Inc. ‡ | 51,000 | 2,572 | |||||||||
JP Morgan Chase & Co. | 95,000 | 4,950 | |||||||||
Las Vegas Sands Corp. ‡ | 23,000 | 1,959 | |||||||||
Marriott International, Inc.–Class A | 80,000 | 3,617 | |||||||||
McGraw-Hill Cos., Inc. (The) | 62,500 | 4,096 | |||||||||
Microsoft Corp. | 130,975 | 3,921 | |||||||||
Nordstrom, Inc. | 62,000 | 3,405 | |||||||||
PACCAR, Inc. | 27,000 | 2,267 | |||||||||
PepsiCo, Inc. | 63,000 | 4,164 | |||||||||
Praxair, Inc. | 38,000 | 2,453 | |||||||||
QUALCOMM, Inc. | 99,000 | 4,336 | |||||||||
Starbucks Corp. ‡ | 85,000 | 2,637 | |||||||||
T. Rowe Price Group, Inc. | 89,000 | 4,422 | |||||||||
Varian Medical Systems, Inc. †‡ | 41,000 | 1,731 | |||||||||
Verizon Communications, Inc. | 82,000 | 3,131 | |||||||||
Walgreen Co. | 66,000 | 2,897 | |||||||||
Whole Foods Market, Inc. | 60,965 | 2,853 | |||||||||
Zimmer Holdings, Inc. ‡ | 21,500 | 1,945 | |||||||||
Total Common Stocks (cost: $197,800) | 253,337 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL ( 5.7%) | |||||||||||
Debt (5.7%) | |||||||||||
Bank Notes (0.4%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 459 | $ | 459 | |||||||
5.27%, due 06/18/2007 * | 459 | 459 | |||||||||
Commercial Paper (1.2%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 184 | 184 |
The notes to the financial statements are an integral part of this report.
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SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | $ | 178 | $ | 178 | |||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 122 92 | 122 92 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 92 | 92 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 92 | 92 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 92 | 92 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 92 92 | 92 92 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 184 | 184 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 180 | 180 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 184 | 184 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 184 | 184 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 363 92 92 | 363 92 92 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 92 92 92 121 | 92 92 92 121 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 138 | 138 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 92 | 92 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 184 | 184 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 92 | 92 | |||||||||
Euro Dollar Overnight (0.7%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 92 | 92 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 184 | 184 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 184 | 184 |
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | $ | 184 | $ | 184 | |||||||
National Australia Bank 5.30%, due 05/01/2007 | 184 | 184 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 184 | 184 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 184 | 184 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 92 | 92 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 184 | 184 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 348 | 348 | |||||||||
Euro Dollar Terms (2.1%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 184 | 184 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 92 | 92 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 128 | 128 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 184 184 92 92 184 | 184 184 92 92 184 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 92 184 | 92 184 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 275 92 | 275 92 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 184 | 184 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 184 | 184 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 275 275 184 | 275 275 184 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 275 | 275 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 184 92 184 | 184 92 184 |
The notes to the financial statements are an integral part of this report.
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SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | $ | 92 | $ | 92 | |||||||
Swedbank AB 5.30%, due 05/11/2007 | 184 | 184 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 184 | 184 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 184 367 275 459 | 184 367 275 459 | |||||||||
Repurchase Agreements (1.3%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $509 on 05/01/2007 | 509 | 509 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,021 on 05/01/2007 | 2,021 | 2,021 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $885 on 05/01/2007 | 885 | 885 | |||||||||
Total Security Lending Collateral (cost: $14,736) | 14,736 | ||||||||||
Total Investment Securities (cost: $212,536) # | $ | 268,073 |
NOTES TO SCHEDULE OF INVESTMENTS:
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $14,231.
‡ Non-income producing.
(a) Passive Foreign Investment Company.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $3,504, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $213,486. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $56,171 and $1,584, respectively. Net unrealized appreciation for tax purposes is $54,587.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $4,763 or 1.8% of the net assets of the Fund.
ADR American Depositary Receipt
FDR Finnish Depositary Receipt
GDR Global Depositary Receipt
SGPS Sociedade Gestora de Participações Socialis (Holding Enterprise)
The notes to the financial statements are an integral part of this report.
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SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Percentage of Net Assets | Value | ||||||||||
INVESTMENTS BY INDUSTRY: | |||||||||||
Security & Commodity Brokers | 7.9 | % | $ | 20,344 | |||||||
Commercial Banks | 7.7 | % | 19,730 | ||||||||
Telecommunications | 7.6 | % | 19,595 | ||||||||
Pharmaceuticals | 6.1 | % | 15,684 | ||||||||
Computer & Data Processing Services | 5.0 | % | 12,914 | ||||||||
Electronic & Other Electric Equipment | 3.4 | % | 8,840 | ||||||||
Insurance | 3.4 | % | 8,646 | ||||||||
Business Services | 3.2 | % | 8,350 | ||||||||
Oil & Gas Extraction | 3.2 | % | 8,204 | ||||||||
Communications Equipment | 3.2 | % | 8,133 | ||||||||
Computer & Office Equipment | 2.6 | % | 6,818 | ||||||||
Petroleum Refining | 2.6 | % | 6,699 | ||||||||
Hotels & Other Lodging Places | 2.6 | % | 6,580 | ||||||||
Printing & Publishing | 2.3 | % | 5,951 | ||||||||
Transportation & Public Utilities | 2.2 | % | 5,651 | ||||||||
Automotive | 2.0 | % | 5,253 | ||||||||
Electronic Components & Accessories | 2.0 | % | 5,248 | ||||||||
Restaurants | 2.0 | % | 5,218 | ||||||||
Aerospace | 1.8 | % | 4,733 | ||||||||
Life Insurance | 1.7 | % | 4,453 | ||||||||
Food & Kindred Products | 1.7 | % | 4,427 | ||||||||
Chemicals & Allied Products | 1.7 | % | 4,404 | ||||||||
Beverages | 1.6 | % | 4,164 | ||||||||
Drug Stores & Proprietary Stores | 1.6 | % | 4,074 | ||||||||
Electric Services | 1.6 | % | 3,985 | ||||||||
Paper & Allied Products | 1.5 | % | 3,777 | ||||||||
Medical Instruments & Supplies | 1.4 | % | 3,676 | ||||||||
Apparel & Accessory Stores | 1.3 | % | 3,405 | ||||||||
Industrial Machinery & Equipment | 1.3 | % | 3,234 | ||||||||
Radio & Television Broadcasting | 1.2 | % | 3,137 | ||||||||
Instruments & Related Products | 1.2 | % | 3,071 | ||||||||
Air Transportation | 1.2 | % | 3,056 | ||||||||
Rubber & Misc. Plastic Products | 1.2 | % | 3,007 | ||||||||
Food Stores | 1.1 | % | 2,853 | ||||||||
Leather & Leather Products | 1.1 | % | 2,827 | ||||||||
Engineering & Management Services | 1.0 | % | 2,572 | ||||||||
Amusement & Recreation Services | 0.9 | % | 2,414 | ||||||||
Lumber & Other Building Materials | 0.6 | % | 1,482 | ||||||||
Electric, Gas & Sanitary Services | 0.6 | % | 1,447 | ||||||||
Communication | 0.5 | % | 1,376 | ||||||||
Manufacturing Industries | 0.5 | % | 1,374 | ||||||||
Specialty–Real Estate | 0.4 | % | 1,004 | ||||||||
Holding & Other Investment Offices | 0.3 | % | 775 | ||||||||
Metal Mining | 0.3 | % | 752 | ||||||||
Investment Securities, at value | 98.3 | % | 253,337 | ||||||||
Short-Term Investments | 5.7 | % | 14,736 | ||||||||
Total Investment Securities | 104.0 | % | $ | 268,073 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 6
TA IDEX Templeton Transamerica Global
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $212,536) (including securities loaned of $14,231) | $ | 268,073 | |||||
Cash | 7,396 | ||||||
Receivables: | |||||||
Investment securities sold | 1,748 | ||||||
Shares of beneficial interest sold | 79 | ||||||
Interest | 18 | ||||||
Dividends | 629 | ||||||
Dividend reclaims receivable | 475 | ||||||
Other | 247 | ||||||
278,665 | |||||||
Liabilities: | |||||||
Investment securities purchased | 4,919 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 684 | ||||||
Management and advisory fees | 142 | ||||||
Distribution and service fees | 121 | ||||||
Transfer agent fees | 88 | ||||||
Administration fees | 4 | ||||||
Payable for collateral for securities on loan | 14,736 | ||||||
Other | 226 | ||||||
20,920 | |||||||
Net Assets | $ | 257,745 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 523,458 | |||||
Undistributed (accumulated) net investment income (loss) | (858 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | (320,481 | ) | |||||
Net unrealized appreciation (depreciation) on: Investment securities | 55,537 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 89 | ||||||
Net Assets | $ | 257,745 | |||||
Net Assets by Class: | |||||||
Class A | $ | 116,350 | |||||
Class B | 69,854 | ||||||
Class C | 31,586 | ||||||
Class I | 39,955 | ||||||
Shares Outstanding: | |||||||
Class A | 3,636 | ||||||
Class B | 2,326 | ||||||
Class C | 1,053 | ||||||
Class I | 1,245 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 32.00 | |||||
Class B | 30.04 | ||||||
Class C | 29.99 | ||||||
Class I | 32.09 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 33.86 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $136) | $ | 2,323 | |||||
Interest | 90 | ||||||
Income from loaned securities–net | 11 | ||||||
2,424 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,030 | ||||||
Distribution and service fees: | |||||||
Class A | 201 | ||||||
Class B | 362 | ||||||
Class C | 158 | ||||||
Transfer agent fees: | |||||||
Class A | 198 | ||||||
Class B | 173 | ||||||
Class C | 62 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 80 | ||||||
Custody fees | 44 | ||||||
Administration fees | 26 | ||||||
Legal fees | 3 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 5 | ||||||
Registration fees | 22 | ||||||
Other | 5 | ||||||
Total expenses | 2,379 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (56 | ) | |||||
Class B | (83 | ) | |||||
Class C | (23 | ) | |||||
Total reimbursed expenses | (162 | ) | |||||
Net expenses | 2,217 | ||||||
Net Investment Income (Loss) | 207 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities (net of foreign capital gains tax of $11) | 9,113 | ||||||
Foreign currency transactions | (44 | ) | |||||
9,069 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 16,424 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 11 | ||||||
16,435 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 25,504 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 25,711 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 7
TA IDEX Templeton Transamerica Global
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 207 | $ | 1,207 | |||||||
Net realized gain (loss) from investment securities and foreign currency transactions | 9,069 | 45,126 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation | 16,435 | 10,954 | |||||||||
25,711 | 57,287 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (1,297 | ) | (31 | ) | |||||||
Class B | (375 | ) | – | ||||||||
Class C | (173 | ) | – | ||||||||
Class I | (688 | ) | – | ||||||||
(2,533 | ) | (31 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 3,872 | 5,127 | |||||||||
Class B | 1,934 | 2,562 | |||||||||
Class C | 882 | 1,794 | |||||||||
Class I | – | 265,295 | |||||||||
6,688 | 274,778 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 1,262 | 31 | |||||||||
Class B | 356 | – | |||||||||
Class C | 164 | – | |||||||||
Class I | 688 | – | |||||||||
2,470 | 31 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (19,981 | ) | (303,291 | ) | |||||||
Class B | (11,242 | ) | (25,962 | ) | |||||||
Class C | (4,707 | ) | (12,100 | ) | |||||||
Class I | (3,552 | ) | (239,142 | ) | |||||||
(39,482 | ) | (580,495 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (b) | – | (b) | |||||||
Class B | – | (b) | 1 | ||||||||
Class C | – | (b) | 1 | ||||||||
– | (b) | 2 | |||||||||
Automatic conversions: | |||||||||||
Class A | 3,543 | 5,471 | |||||||||
Class B | (3,543 | ) | (5,471 | ) | |||||||
– | – | ||||||||||
(30,324 | ) | (305,684 | ) | ||||||||
Net increase (decrease) in net assets | (7,146 | ) | (248,428 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 264,891 | 513,319 | |||||||||
End of period | $ | 257,745 | $ | 264,891 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (858 | ) | $ | 1,468 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 128 | 188 | |||||||||
Class B | 68 | 101 | |||||||||
Class C | 31 | 71 | |||||||||
Class I | – | 10,591 | |||||||||
227 | 10,951 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 42 | 1 | |||||||||
Class B | 13 | – | |||||||||
Class C | 6 | – | |||||||||
Class I | 23 | – | |||||||||
84 | 1 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (659 | ) | (12,007 | ) | |||||||
Class B | (394 | ) | (1,031 | ) | |||||||
Class C | (166 | ) | (480 | ) | |||||||
Class I | (118 | ) | (9,251 | ) | |||||||
(1,337 | ) | (22,769 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 117 | 204 | |||||||||
Class B | (124 | ) | (217 | ) | |||||||
(7 | ) | (13 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (372 | ) | (11,614 | ) | |||||||
Class B | (437 | ) | (1,147 | ) | |||||||
Class C | (129 | ) | (409 | ) | |||||||
Class I | (95 | ) | 1,340 | ||||||||
(1,033 | ) | (11,830 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 8
TA IDEX Templeton Transamerica Global
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 29.28 | $ | 0.05 | $ | 3.01 | $ | 3.06 | $ | (0.34 | ) | $ | – | $ | (0.34 | ) | $ | 32.00 | ||||||||||||||||||||
10/31/2006 | 24.68 | 0.15 | 4.45 | 4.60 | – | (h) | – | – | 29.28 | ||||||||||||||||||||||||||||||
10/31/2005 | 22.57 | 0.21 | 2.14 | 2.35 | (0.24 | ) | – | (0.24 | ) | 24.68 | |||||||||||||||||||||||||||||
10/31/2004 | 21.41 | (0.07 | ) | 1.23 | 1.16 | – | – | – | 22.57 | ||||||||||||||||||||||||||||||
10/31/2003 | 19.06 | (0.05 | ) | 2.40 | 2.35 | – | – | – | 21.41 | ||||||||||||||||||||||||||||||
10/31/2002 | 23.67 | (0.08 | ) | (4.53 | ) | (4.61 | ) | – | – | – | 19.06 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 27.40 | (0.05 | ) | 2.83 | 2.78 | (0.14 | ) | – | (0.14 | ) | 30.04 | |||||||||||||||||||||||||||
10/31/2006 | 23.24 | (0.01 | ) | 4.17 | 4.16 | – | (h) | – | – | 27.40 | |||||||||||||||||||||||||||||
10/31/2005 | 21.23 | 0.02 | 1.99 | 2.01 | – | (h) | – | – | 23.24 | ||||||||||||||||||||||||||||||
10/31/2004 | 20.25 | (0.20 | ) | 1.18 | 0.98 | – | – | – | 21.23 | ||||||||||||||||||||||||||||||
10/31/2003 | 18.14 | (0.17 | ) | 2.28 | 2.11 | – | – | – | 20.25 | ||||||||||||||||||||||||||||||
10/31/2002 | 22.71 | (0.22 | ) | (4.35 | ) | (4.57 | ) | – | – | – | 18.14 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 27.37 | (0.05 | ) | 2.82 | 2.77 | (0.15 | ) | – | (0.15 | ) | 29.99 | |||||||||||||||||||||||||||
10/31/2006 | 23.21 | (0.01 | ) | 4.17 | 4.16 | – | – | – | 27.37 | ||||||||||||||||||||||||||||||
10/31/2005 | 21.21 | 0.02 | 1.99 | 2.01 | (0.01 | ) | – | (0.01 | ) | 23.21 | |||||||||||||||||||||||||||||
10/31/2004 | 20.25 | (0.15 | ) | 1.11 | 0.96 | – | – | – | 21.21 | ||||||||||||||||||||||||||||||
10/31/2003 | 18.00 | (0.17 | ) | 2.42 | 2.25 | – | ��� | – | 20.25 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 29.46 | 0.14 | 3.01 | 3.15 | (0.52 | ) | – | (0.52 | ) | 32.09 | ||||||||||||||||||||||||||||
10/31/2006 | 25.05 | 0.25 | 4.16 | 4.41 | – | – | – | 29.46 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 10.51 | % | $ | 116,350 | 1.55 | % | 1.65 | % | 0.34 | % (i) | 13 | % | ||||||||||||||||||
10/31/2006 | 18.65 | 117,367 | 1.55 | 1.62 | 0.55 | (i) | 55 | ||||||||||||||||||||||||
10/31/2005 | 10.41 | 385,504 | 1.42 | 1.42 | 0.85 | (i) | 79 | ||||||||||||||||||||||||
10/31/2004 | 5.41 | 226,517 | 1.85 | 1.85 | (0.31 | ) | 140 | ||||||||||||||||||||||||
10/31/2003 | 12.33 | 189,046 | 2.07 | 2.07 | (0.26 | ) | 103 | ||||||||||||||||||||||||
10/31/2002 | (19.46 | ) | 225,722 | 1.88 | 1.88 | (0.34 | ) | 72 | |||||||||||||||||||||||
Class B | 4/30/2007 | 10.18 | 69,854 | 2.20 | 2.43 | (0.33 | ) (i) | 13 | |||||||||||||||||||||||
10/31/2006 | 17.90 | 75,711 | 2.20 | 2.42 | (0.05 | ) (i) | 55 | ||||||||||||||||||||||||
10/31/2005 | 9.48 | 90,877 | 2.20 | 2.41 | 0.07 | 79 | |||||||||||||||||||||||||
10/31/2004 | 4.83 | 117,409 | 2.49 | 2.49 | (0.93 | ) | 140 | ||||||||||||||||||||||||
10/31/2003 | 11.57 | 153,046 | 2.72 | 2.72 | (0.91 | ) | 103 | ||||||||||||||||||||||||
10/31/2002 | (20.09 | ) | 193,259 | 2.53 | 2.53 | (0.99 | ) | 72 | |||||||||||||||||||||||
Class C | 4/30/2007 | 10.16 | 31,586 | 2.20 | 2.35 | (0.32 | ) (i) | 13 | |||||||||||||||||||||||
10/31/2006 | 17.87 | 32,341 | 2.20 | 2.35 | (0.05 | ) (i) | 55 | ||||||||||||||||||||||||
10/31/2005 | 9.52 | 36,938 | 2.20 | 2.38 | 0.07 | (i) | 79 | ||||||||||||||||||||||||
10/31/2004 | 4.74 | 48,378 | 2.18 | 2.18 | (0.72 | ) | 140 | ||||||||||||||||||||||||
10/31/2003 | 12.50 | 163 | 2.72 | 2.72 | (0.92 | ) | 103 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 10.81 | 39,955 | 0.95 | 0.95 | 0.94 | 13 | ||||||||||||||||||||||||
10/31/2006 | 17.60 | 39,472 | 0.94 | 0.94 | 0.99 | 55 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 9
TA IDEX Templeton Transamerica Global
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Rounds to less than $(0.01) per share.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 10
TA IDEX Templeton Transamerica Global
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
Effective October 27, 2006, TA IDEX Templeton Great Companies Global was renamed to TA IDEX Templeton Transamerica Global ("the Fund") and changed its sub-advisor from Great Companies, L.L.C. ("Great Companies") to Transamerica Investment Management, LLC ("TIM").
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-advisers, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual Funds has established a
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 11
TA IDEX Templeton Transamerica Global
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $8 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $5, earned by IBT for its services.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received is less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation–Conservative Portfolio | $ | 2,236 | 0.87 | % | |||||||
TA IDEX Asset Allocation–Growth Portfolio | 6,310 | 2.45 | % | ||||||||
TA IDEX Asset Allocation–Moderate Portfolio | 23,160 | 8.99 | % | ||||||||
TA IDEX Asset Allocation–Moderate Growth Portfolio | 8,249 | 3.20 | % | ||||||||
Total | $ | 39,955 | 15.51 | % |
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TA IDEX Templeton Transamerica Global 12
TA IDEX Templeton Transamerica Global
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Investment advisory fee: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $500 million of ANA
0.70% of ANA over $500 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.20% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
Reimbursement of Class Expenses | Available for Recapture Through | ||||||||||
Fiscal Year 2006 | |||||||||||
Class A | $ | 97 | 10/31/2009 | ||||||||
Class B | 184 | 10/31/2009 | |||||||||
Class C | 53 | 10/31/2009 | |||||||||
Fiscal Year 2005 | |||||||||||
Class B | 226 | 10/31/2008 | |||||||||
Class C | 77 | 10/31/2008 |
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. Effective November 15, 2005, the Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 50 | |||||
Retained by Underwriter | 8 | ||||||
Contingent Deferred Sales Charge | 18 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $415 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $119.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007,
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TA IDEX Templeton Transamerica Global 13
TA IDEX Templeton Transamerica Global
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
the amount related to the Emeritus Plan was $17. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 34,017 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 61,115 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, foreign currency transactions, passive foreign investment companies, deferred compensation and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital gains through the periods listed:
Capital Loss Carryforwards | Available through | ||||||
$ | 66,404 | October 31, 2009 | |||||
205,203 | October 31, 2010 | ||||||
57,944 | October 31, 2011 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allegation of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginn ing after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 14
TA IDEX Templeton Transamerica Global
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the investment advisory agreement between TA IDEX Templeton Transamerica Global (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") (the "Investment Advisory Agreement"), as well as the investment sub-advisory agreement between TFAI and Templeton Investment Counsel, LLC, the co-investment sub-adviser to the Fund's international Fund ("Templeton") (the "Investment Sub-Advisory Agreement"), to determine whether the agreements should be renewed for a one-year period. The Board noted that it had recently approved an investment sub-advisory agreement between TFAI and Transamerica Investment Management, LLC ("TIM") to appoint TIM to replace Great Companies, LLC ("Great Companies") as co-investment sub-adviser to the Fund's domestic Fund for an initial two-year period at a meeting of the Board held on July 18 and 19, 2006. Following their review and consideration, a majority of the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including a majority of the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI, Templeton and TIM such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI, Great Companies, Templeton and TIM (such as in-person presentations by Great Companies, Templeton and TIM) as part of their regular oversight of the Fund, as well as comparative fee, expen se and performance information prepared by Lipper Inc. ("Lipper"), an independent provider of mutual fund performance, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and Templeton to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and Templeton are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and Templeton's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's and Templeton's management, the financial resources of TFAI and Templeton, TFAI's management oversight process, and the professional qualifications and experience of Templeton's portfolio management team. The Trustees also concluded that TFAI and Templet on proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and Templeton's future obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds for various trailing periods ended June 30, 2006. The Board noted the Fund's trailing underperformance relative to its peers, but also noted that much of that performance is attributable to Great Companies, which was replaced by TIM on August 1, 2006. The Board asked Management to continue to monitor closely the Fund's ongoing performance and expenses. On the basis of its assessment of the nature, extent and quality of the investment advisory services to be provided or procured by TFAI and Templeton, the Board concluded that TFAI and Templeton are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and Templeton's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Board expressed concern that the total expenses of the Fund were sl ight higher than average compared to its peer group, but noted that the contractual management fees were lower than the average management fees of
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 15
TA IDEX Templeton Transamerica Global (continued)
that group. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of Templeton, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and Templeton's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and Templeton.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory and sub-advisory fee schedules appropriately benefits investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI and Templeton, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to Te mpleton, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or Templeton from their relationship with the Fund. The Board noted that it receives quarterly reports on Templeton's brokerage practices, including "soft dollar" benefits that Templeton may receive. The Board concluded that benefits derived by TFAI, its affiliates, and Templeton from their relationships with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that Templeton participates 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 Templeton may engage in with respect to the Fund's brokerage transactions. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Templeton Transamerica Global 16
TA IDEX Transamerica Balanced
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,060.90 | 1.58 | % | $ | 8.07 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,016.96 | 1.58 | 7.90 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,057.80 | 2.17 | 11.07 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.03 | 2.17 | 10.84 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,058.00 | 2.14 | 10.92 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.18 | 2.14 | 10.69 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 1
TA IDEX Transamerica Balanced
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
U.S. GOVERNMENT OBLIGATIONS (2.8%) | |||||||||||
U.S. Treasury Bond 8.00%, due 11/15/2021 † | $ | 1,450 | $ | 1,923 | |||||||
U.S. Treasury Inflation Indexed Bond 2.00%, due 01/15/2016 | 566 | 558 | |||||||||
U.S. Treasury Note 3.88%, due 02/15/2013 | 870 | 842 | |||||||||
4.50%, due 02/15/2016 | 13 | 13 | |||||||||
4.63%, due 02/15/2017 † | 1,035 | 1,034 | |||||||||
4.50%, due 02/15/2036 † | 1,186 | 1,125 | |||||||||
Total U.S. Government Obligations (cost: $5,430) | 5,495 | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (2.3%) | |||||||||||
Fannie Mae, Series 2004-90, Class LH 5.00%, due 04/25/2034 | 700 | 681 | |||||||||
Freddie Mac 5.35%, due 11/14/2011 | 1,070 | 1,071 | |||||||||
Freddie Mac, Series 2631, Class CE 4.25%, due 10/15/2026 | 980 | 961 | |||||||||
Freddie Mac, Series 2941, Class WC 5.00%, due 10/15/2030 | 1,700 | 1,678 | |||||||||
Total U.S. Government Agency Obligations (cost: $4,390) | 4,391 | ||||||||||
MORTGAGE-BACKED SECURITIES (2.9%) | |||||||||||
Bear Stearns Commercial Mortgage Securities, Series 2006-PW14, Class A4 5.20%, due 12/01/2038 | 1,060 | 1,045 | |||||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD, Class A4 5.32%, due 12/11/2049 | 350 | 348 | |||||||||
Crown Castle Towers LLC, Series 2006-1A, Class AFX-144A 5.24%, due 11/15/2036 | 989 | 989 | |||||||||
Morgan Stanley Capital I, Series 2006-HQ10, Class A4 5.33%, due 11/12/2041 * | 1,140 | 1,135 | |||||||||
SBA CMBS Trust, Series 2006-1A, Class A–144A 5.31%, due 11/15/2036 | 880 | 882 | |||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4 5.57%, due 10/15/2048 * | 1,114 | 1,128 | |||||||||
Total Mortgage-Backed Securities (cost: $5,542) | 5,527 |
Principal | Value | ||||||||||
CORPORATE DEBT SECURITIES (18.4%) | |||||||||||
Aerospace (0.3%) | |||||||||||
Honeywell International, Inc. 6.13%, due 11/01/2011 | $ | 660 | $ | 688 | |||||||
Agriculture (0.2%) | |||||||||||
Michael Foods, Inc. 8.00%, due 11/15/2013 | 320 | 330 | |||||||||
Automotive Service Stations (0.1%) | |||||||||||
Petro Stopping Centers, LP / Petro Financial Corp. 9.00%, due 02/15/2012 | 250 | 260 | |||||||||
Business Credit Institutions (1.2%) | |||||||||||
John Deere Capital Corp., Series D 4.40%, due 07/15/2009 | 1,000 | 985 | |||||||||
National Rural Utilities Cooperative Finance Corp. 7.25%, due 03/01/2012 | 500 | 544 | |||||||||
Pemex Finance, Ltd. 9.03%, due 02/15/2011 | 680 | 728 | |||||||||
Chemicals & Allied Products (1.3%) | |||||||||||
ICI Wilmington, Inc. 4.38%, due 12/01/2008 | 791 | 779 | |||||||||
Lubrizol Corp. 4.63%, due 10/01/2009 | 1,350 | 1,331 | |||||||||
Monsanto Co. 5.50%, due 07/30/2035 | 415 | 388 | |||||||||
Commercial Banks (1.7%) | |||||||||||
HBOS PLC–144A 5.92%, due 10/01/2015 (a)(b) | 700 | 689 | |||||||||
ICICI Bank, Ltd., Subordinated Note–144A 6.38%, due 04/30/2022 (b) | 353 | 353 | |||||||||
Royal Bank of Scotland Group PLC 7.65%, due 09/30/2031 (a)(b) | 220 | 257 | |||||||||
Shinsei Finance Cayman, Ltd.–144A 6.42%, due 07/20/2016 (a)(b) | 325 | 329 | |||||||||
Sumitomo Mitsui Banking–144A 5.63%, due 10/15/2015 (a)(b) | 200 | 197 | |||||||||
US Bank NA 3.75%, due 02/06/2009 | 435 | 425 | |||||||||
Wachovia Capital Trust III 5.80%, due 03/15/2011 (a)(b) | 260 | 264 | |||||||||
ZFS Finance USA Trust I–144A 6.45%, due 12/15/2065 (b) | 765 | 774 | |||||||||
Communication (0.2%) | |||||||||||
Comcast Corp. 7.05%, due 03/15/2033 | 325 | 353 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 2
TA IDEX Transamerica Balanced
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Computer & Office Equipment (0.4%) | |||||||||||
Hewlett-Packard Co. 3.63%, due 03/15/2008 | $ | 765 | $ | 754 | |||||||
Construction (0.6%) | |||||||||||
Centex Corp., Senior Note 4.75%, due 01/15/2008 | 620 | 618 | |||||||||
DR Horton, Inc., Senior Note 5.38%, due 06/15/2012 | 500 | 480 | |||||||||
Department Stores (0.1%) | |||||||||||
Neiman-Marcus Group, Inc. 9.00%, due 10/15/2015 | 200 | 220 | |||||||||
Electric Services (0.7%) | |||||||||||
FPL Group Capital, Inc., Series B 5.55%, due 02/16/2008 | 3 | 3 | |||||||||
PPL Capital Funding, Guaranteed Note 6.70%, due 03/30/2067 (b) | 540 | 540 | |||||||||
PSEG Funding Trust 5.38%, due 11/16/2007 | 875 | 874 | |||||||||
Food & Kindred Products (0.7%) | |||||||||||
Archer-Daniels-Midland Co. 5.38%, due 09/15/2035 | 500 | 463 | |||||||||
Bunge, Ltd. Finance Corp. 4.38%, due 12/15/2008 | 930 | 916 | |||||||||
Food Stores (0.1%) | |||||||||||
Albertson's, Inc. 7.50%, due 02/15/2011 | 270 | 285 | |||||||||
Gas Production & Distribution (1.6%) | |||||||||||
Kinder Morgan Energy Partners, LP 7.75%, due 03/15/2032 | 334 | 380 | |||||||||
Oneok, Inc. 5.51%, due 02/16/2008 | 1,730 | 1,733 | |||||||||
Southern Union Co., Senior Note 6.15%, due 08/16/2008 | 926 | 934 | |||||||||
Holding & Other Investment Offices (2.2%) | |||||||||||
Ameriprise Financial, Inc. 7.52%, due 06/01/2066 (b) | 500 | 543 | |||||||||
BRE Properties, Inc. REIT 5.75%, due 09/01/2009 | 1,115 | 1,124 | |||||||||
Hutchison Whampoa International, Ltd.–144A 5.45%, due 11/24/2010 | 950 | 959 | |||||||||
iStar Financial, Inc. REIT 4.88%, due 01/15/2009 | 875 | 869 | |||||||||
PPF Funding, Inc., REIT–144A 5.35%, due 04/15/2012 | 781 | 780 |
Principal | Value | ||||||||||
Hotels & Other Lodging Places (0.4%) | |||||||||||
Las Vegas Sands Corp. 6.38%, due 02/15/2015 | $ | 300 | $ | 292 | |||||||
Starwood Hotels & Resorts Worldwide, Inc. 7.38%, due 05/01/2007 | 400 | 400 | |||||||||
Insurance (0.4%) | |||||||||||
Oil Insurance, Ltd.–144A 7.56%, due 06/30/2011 (a)(b) | 325 | 341 | |||||||||
St. Paul Travelers Cos. (The), Inc. 6.75%, due 06/20/2036 | 480 | 523 | |||||||||
Life Insurance (0.4%) | |||||||||||
Prudential Financial, Inc. 5.75%, due 07/15/2033 | 820 | 803 | |||||||||
Lumber & Other Building Materials (0.3%) | |||||||||||
CRH America, Inc. 5.30%, due 10/15/2013 | 570 | 560 | |||||||||
Mortgage Bankers & Brokers (0.5%) | |||||||||||
Idearc, Inc., Senior Note–144A 8.00%, due 11/15/2016 | 200 | 208 | |||||||||
ILFC E-Capital Trust II–144A 6.25%, due 12/21/2065 (b) | 360 | 369 | |||||||||
MUFG Capital Finance 1, Ltd. 6.35%, due 07/25/2016 (a)(b) | 325 | 332 | |||||||||
Oil & Gas Extraction (0.5%) | |||||||||||
Husky Oil, Ltd. 8.90%, due 08/15/2028 (b) | 570 | 591 | |||||||||
PetroHawk Energy Corp., Senior Note 9.13%, due 07/15/2013 | 360 | 386 | |||||||||
Personal Credit Institutions (0.4%) | |||||||||||
Capital One Bank 5.75%, due 09/15/2010 | 800 | 812 | |||||||||
Petroleum Refining (0.5%) | |||||||||||
Enterprise Products Operating, LP 8.38%, due 08/01/2066 (b) | 285 | 316 | |||||||||
Valero Logistics Operations, LP, Guaranteed Senior Note 6.88%, due 07/15/2012 | 710 | 747 | |||||||||
Printing & Publishing (0.2%) | |||||||||||
News America Holdings, Inc. 7.75%, due 12/01/2045 | 392 | 447 | |||||||||
Radio & Television Broadcasting (0.3%) | |||||||||||
Clear Channel Communications, Inc. 4.63%, due 01/15/2008 | 545 | 539 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 3
TA IDEX Transamerica Balanced
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Real Estate (0.3%) | |||||||||||
Post Apartment Homes, LP 6.30%, due 06/01/2013 | $ | 569 | $ | 590 | |||||||
Restaurants (0.2%) | |||||||||||
Aramark Corp., Senior Note–144A 8.50%, due 02/01/2015 | 300 | 314 | |||||||||
Security & Commodity Brokers (1.0%) | |||||||||||
E*Trade Financial Corp. 8.00%, due 06/15/2011 | 500 | 526 | |||||||||
Mizuho Preferred Capital Co. LLC–144A 8.79%, due 06/30/2008 (a)(b) | 1,100 | 1,142 | |||||||||
Western Union Co. (The) 5.93%, due 10/01/2016 | 290 | 292 | |||||||||
Stone, Clay & Glass Products (0.2%) | |||||||||||
Lafarge SA 7.13%, due 07/15/2036 | 385 | 421 | |||||||||
Telecommunications (0.7%) | |||||||||||
Nextel Communications, Inc., Series D 7.38%, due 08/01/2015 | 360 | 372 | |||||||||
SBC Communications, Inc. 4.13%, due 09/15/2009 | 1,003 | 981 | |||||||||
Transportation & Public Utilities (0.2%) | |||||||||||
Hertz Corp., Senior Subordinated Note 10.50%, due 01/01/2016 | 300 | 342 | |||||||||
Water Transportation (0.5%) | |||||||||||
Royal Caribbean Cruises, Ltd. 8.75%, due 02/02/2011 | 815 | 895 | |||||||||
Total Corporate Debt Securities (cost: $35,504) | 35,690 | ||||||||||
Shares | Value | ||||||||||
COMMON STOCKS (71.4%) | |||||||||||
Air Transportation (0.8%) | |||||||||||
FedEx Corp. | 15,000 | $ | 1,582 | ||||||||
Apparel & Accessory Stores (1.8%) | |||||||||||
Nordstrom, Inc. | 65,000 | 3,570 | |||||||||
Automotive (5.2%) | |||||||||||
Harley-Davidson, Inc. | 65,000 | 4,116 | |||||||||
PACCAR, Inc. † | 70,000 | 5,879 | |||||||||
Beverages (1.1%) | |||||||||||
PepsiCo, Inc. | 33,500 | 2,214 | |||||||||
Communications Equipment (2.7%) | |||||||||||
QUALCOMM, Inc. | 120,000 | 5,256 |
Shares | Value | ||||||||||
Computer & Data Processing Services (5.2%) | |||||||||||
Google, Inc.–Class A ‡ | 6,000 | $ | 2,828 | ||||||||
Intuit, Inc. ‡ | 90,000 | 2,560 | |||||||||
Microsoft Corp. | 153,465 | 4,595 | |||||||||
Computer & Office Equipment (2.9%) | |||||||||||
Apple, Inc. ‡ | 56,000 | 5,589 | |||||||||
Drug Stores & Proprietary Stores (2.5%) | |||||||||||
Walgreen Co. | 110,000 | 4,829 | |||||||||
Electronic & Other Electric Equipment (1.6%) | |||||||||||
General Electric Co. | 83,000 | 3,059 | |||||||||
Engineering & Management Services (4.6%) | |||||||||||
Jacobs Engineering Group, Inc. ‡ | 178,000 | 8,976 | |||||||||
Food Stores (1.5%) | |||||||||||
Whole Foods Market, Inc. | 61,500 | 2,878 | |||||||||
Hotels & Other Lodging Places (4.5%) | |||||||||||
Marriott International, Inc.–Class A | 130,000 | 5,877 | |||||||||
MGM Mirage, Inc. †‡ | 43,000 | 2,892 | |||||||||
Industrial Machinery & Equipment (5.6%) | |||||||||||
Caterpillar, Inc. | 79,000 | 5,737 | |||||||||
Kennametal, Inc. | 73,500 | 5,186 | |||||||||
Insurance (1.5%) | |||||||||||
American International Group, Inc. | 42,000 | 2,936 | |||||||||
Medical Instruments & Supplies (2.8%) | |||||||||||
Varian Medical Systems, Inc. ‡ | 42,000 | 1,773 | |||||||||
Zimmer Holdings, Inc. †‡ | 40,000 | 3,619 | |||||||||
Oil & Gas Extraction (2.0%) | |||||||||||
Schlumberger, Ltd. | 53,000 | 3,913 | |||||||||
Petroleum Refining (1.8%) | |||||||||||
Suncor Energy, Inc. | 42,000 | 3,381 | |||||||||
Pharmaceuticals (4.9%) | |||||||||||
Allergan, Inc. | 26,000 | 3,151 | |||||||||
Gilead Sciences, Inc. ‡ | 23,000 | 1,880 | |||||||||
Roche Holding AG-Genusschein | 24,000 | 4,539 | |||||||||
Printing & Publishing (4.4%) | |||||||||||
McGraw-Hill Cos., Inc. (The) † | 130,000 | 8,519 | |||||||||
Restaurants (1.0%) | |||||||||||
Starbucks Corp. ‡ | 60,000 | 1,861 | |||||||||
Security & Commodity Brokers (8.4%) | |||||||||||
American Express Co. | 90,000 | 5,460 | |||||||||
Ameriprise Financial, Inc. | 70,000 | 4,163 | |||||||||
BlackRock, Inc. † | 13,000 | 1,946 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 4
TA IDEX Transamerica Balanced
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
Security & Commodity Brokers (continued) | |||||||||||
Chicago Mercantile Exchange † | 9,000 | $ | 4,651 | ||||||||
Telecommunications (1.0%) | |||||||||||
Verizon Communications, Inc. | 50,000 | 1,909 | |||||||||
Transportation & Public Utilities (2.0%) | |||||||||||
Expeditors International of Washington, Inc. | 94,000 | 3,929 | |||||||||
Wholesale Trade Durable Goods (1.6%) | |||||||||||
Grainger (W.W.), Inc. | 38,500 | 3,181 | |||||||||
Total Common Stocks (cost: $102,611) | 138,434 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (8.0%) |
Debt (8.0%)
Bank Notes (0.5%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 486 | $ | 486 | |||||||
5.27%, due 06/18/2007 * | 486 | 486 | |||||||||
Commercial Paper (1.7%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 194 | 194 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 188 | 188 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 | 130 | 130 | |||||||||
5.29%, due 06/13/2007 | 97 | 97 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 97 | 97 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 97 | 97 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 97 | 97 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 | 97 | 97 | |||||||||
5.28%, due 05/24/2007 | 97 | 97 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 194 | 194 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 190 | 190 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 194 | 194 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 194 | 194 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 | 384 | 384 | |||||||||
5.30%, due 05/29/2007 | 97 | 97 | |||||||||
5.29%, due 05/31/2007 | 97 | 97 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 | $ | 97 | $ | 97 | |||||||
5.29%, due 05/17/2007 | 97 | 97 | |||||||||
5.28%, due 06/01/2007 | 97 | 97 | |||||||||
5.29%, due 06/19/2007 | 128 | 128 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 146 | 146 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 97 | 97 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 194 | 194 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 97 | 97 | |||||||||
Euro Dollar Overnight (1.0%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 97 | 97 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 194 | 194 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 194 | 194 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 194 | 194 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 194 | 194 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 194 | 194 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 194 | 194 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 97 | 97 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 194 | 194 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 368 | 368 | |||||||||
Euro Dollar Terms (2.9%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 194 | 194 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 97 | 97 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 136 | 136 | |||||||||
Barclays 5.29%, due 05/07/2007 | 194 | 194 | |||||||||
5.30%, due 05/16/2007 | 194 | 194 | |||||||||
5.29%, due 05/21/2007 | 97 | 97 | |||||||||
5.30%, due 06/04/2007 | 97 | 97 | |||||||||
5.29%, due 06/08/2007 | 194 | 194 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 5
TA IDEX Transamerica Balanced
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Calyon 5.30%, due 05/17/2007 | $ | 97 | $ | 97 | |||||||
5.31%, due 05/24/2007 | 194 | 194 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 | 292 | 292 | |||||||||
5.28%, due 05/29/2007 | 97 | 97 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 194 | 194 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 194 | 194 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 | 292 | 292 | |||||||||
5.28%, due 05/25/2007 | 291 | 291 | |||||||||
5.30%, due 06/25/2007 | 194 | 194 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 291 | 291 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 | 194 | 194 | |||||||||
5.30%, due 05/09/2007 | 97 | 97 | |||||||||
5.31%, due 05/25/2007 | 194 | 194 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 97 | 97 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Swedbank AB 5.30%, due 05/11/2007 | $ | 194 | $ | 194 | |||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 194 | 194 | |||||||||
UBS AG 5.28%, due 06/01/2007 | 194 | 194 | |||||||||
5.29%, due 06/12/2007 | 389 | 389 | |||||||||
5.29%, due 06/15/2007 | 291 | 291 | |||||||||
5.29%, due 06/18/2007 | 486 | 486 | |||||||||
Repurchase Agreements (1.9%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $538 on 05/01/2007 | 538 | 538 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,136 on 05/01/2007 | 2,136 | 2,136 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $936 on 05/01/2007 | 936 | 936 | |||||||||
Total Security Lending Collateral (cost: $15,568) | 15,568 | ||||||||||
Total Investment Securities (cost: $169,045) # | $ | 205,105 |
NOTES TO SCHEDULE OF INVESTMENTS:
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $15,257.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
(a) The security has a perpetual maturity. The date shown is the next call date.
(b) Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of April 30, 2007.
‡ Non-income producing.
†† Cash collateral for the Repurchase Agreements, valued at $3,702, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $169,312. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $37,377 and $1,584, respectively. Net unrealized appreciation for tax purposes is $35,793.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $11,238 or 5.8% of the net assets of the Fund.
REIT Real Estate Investment Trust
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 6
TA IDEX Transamerica Balanced
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $169,045) (including securities loaned of $15,257) | $ | 205,105 | |||||
Receivables: | |||||||
Investment securities sold | 4,582 | ||||||
Shares of beneficial interest sold | 76 | ||||||
Interest | 733 | ||||||
Dividends | 57 | ||||||
Dividend reclaims receivable | 81 | ||||||
Other | 41 | ||||||
210,675 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 469 | ||||||
Management and advisory fees | 132 | ||||||
Distribution and service fees | 136 | ||||||
Transfer agent fees | 54 | ||||||
Administration fees | 3 | ||||||
Due to custodian | 425 | ||||||
Payable for collateral for securities on loan | 15,568 | ||||||
Other | 112 | ||||||
16,899 | |||||||
Net Assets | $ | 193,776 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 161,508 | |||||
Undistributed (accumulated) net investment income (loss) | (73 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | (3,714 | ) | |||||
Net unrealized appreciation (depreciation) on: Investment securities | 36,060 | ||||||
Translation of assets and liabilities denominated in foreign currencies | (5 | ) | |||||
Net Assets | $ | 193,776 | |||||
Net Assets by Class: | |||||||
Class A | $ | 53,513 | |||||
Class B | 107,373 | ||||||
Class C | 32,890 | ||||||
Shares Outstanding: | |||||||
Class A | 2,295 | ||||||
Class B | 4,625 | ||||||
Class C | 1,421 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 23.31 | |||||
Class B | 23.22 | ||||||
Class C | 23.15 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 24.67 |
(a) 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 and C shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 1,485 | |||||
Dividends (net of withholding taxes on foreign dividends of $17) | 832 | ||||||
Income from loaned securities–net | 15 | ||||||
2,332 | |||||||
Expenses: | |||||||
Management and advisory fees | 801 | ||||||
Distribution and service fees: | |||||||
Class A | 94 | ||||||
Class B | 561 | ||||||
Class C | 172 | ||||||
Transfer agent fees: | |||||||
Class A | 84 | ||||||
Class B | 138 | ||||||
Class C | 38 | ||||||
Printing and shareholder reports | 43 | ||||||
Custody fees | 18 | ||||||
Administration fees | 20 | ||||||
Legal fees | 3 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 4 | ||||||
Registration fees | 19 | ||||||
Other | 3 | ||||||
Total expenses | 2,008 | ||||||
Net Investment Income (Loss) | 324 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 15,969 | ||||||
Foreign currency transactions | 1 | ||||||
15,970 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | (4,787 | ) | |||||
Translation of assets and liabilities denominated in foreign currencies | (6 | ) | |||||
(4,793 | ) | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 11,177 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 11,501 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 7
TA IDEX Transamerica Balanced
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 324 | $ | 359 | |||||||
Net realized gain (loss) from investment securities and foreign currency transactions | 15,970 | 16,546 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation | (4,793 | ) | 7,466 | ||||||||
11,501 | 24,371 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (187 | ) | (248 | ) | |||||||
Class B | (140 | ) | (110 | ) | |||||||
Class C | (44 | ) | (35 | ) | |||||||
(371 | ) | (393 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 2,255 | 4,157 | |||||||||
Class B | 1,815 | 3,947 | |||||||||
Class C | 588 | 2,027 | |||||||||
4,658 | 10,131 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 179 | 239 | |||||||||
Class B | 130 | 102 | |||||||||
Class C | 40 | 32 | |||||||||
349 | 373 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (9,991 | ) | (19,168 | ) | |||||||
Class B | (16,554 | ) | (40,189 | ) | |||||||
Class C | (6,399 | ) | (12,737 | ) | |||||||
(32,944 | ) | (72,094 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (a) | – | (a) | |||||||
Class B | – | (a) | – | (a) | |||||||
Class C | – | (a) | – | (a) | |||||||
– | (a) | – | (a) | ||||||||
Automatic conversions: | |||||||||||
Class A | 2,497 | 1,663 | |||||||||
Class B | (2,497 | ) | (1,663 | ) | |||||||
– | – | ||||||||||
(27,937 | ) | (61,590 | ) | ||||||||
Net increase (decrease) in net assets | (16,807 | ) | (37,612 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 210,583 | 248,195 | |||||||||
End of period | $ | 193,776 | $ | 210,583 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (73 | ) | $ | (26 | ) |
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 98 | 196 | |||||||||
Class B | 80 | 186 | |||||||||
Class C | 26 | 96 | |||||||||
204 | 478 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 8 | 11 | |||||||||
Class B | 6 | 5 | |||||||||
Class C | 2 | 1 | |||||||||
16 | 17 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (440 | ) | (903 | ) | |||||||
Class B | (733 | ) | (1,897 | ) | |||||||
Class C | (284 | ) | (604 | ) | |||||||
(1,457 | ) | (3,404 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 110 | 78 | |||||||||
Class B | (110 | ) | (78 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (224 | ) | (618 | ) | |||||||
Class B | (757 | ) | (1,784 | ) | |||||||
Class C | (256 | ) | (507 | ) | |||||||
(1,237 | ) | (2,909 | ) |
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 8
TA IDEX Transamerica Balanced
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 22.05 | $ | 0.08 | $ | 1.26 | $ | 1.34 | $ | (0.08 | ) | $ | – | $ | (0.08 | ) | $ | 23.31 | ||||||||||||||||||||
10/31/2006 | 19.90 | 0.12 | 2.12 | 2.24 | (0.09 | ) | – | (0.09 | ) | 22.05 | |||||||||||||||||||||||||||||
10/31/2005 | 18.53 | 0.15 | 1.41 | 1.56 | (0.19 | ) | – | (0.19 | ) | 19.90 | |||||||||||||||||||||||||||||
10/31/2004 | 17.43 | 0.14 | 1.08 | 1.22 | (0.12 | ) | – | (0.12 | ) | 18.53 | |||||||||||||||||||||||||||||
10/31/2003 | 16.23 | 0.19 | 1.21 | 1.40 | (0.20 | ) | – | (0.20 | ) | 17.43 | |||||||||||||||||||||||||||||
10/31/2002 | 17.31 | 0.29 | (1.09 | ) | (0.80 | ) | (0.28 | ) | – | (0.28 | ) | 16.23 | |||||||||||||||||||||||||||
Class B | 4/30/2007 | 21.98 | 0.02 | 1.25 | 1.27 | (0.03 | ) | – | (0.03 | ) | 23.22 | ||||||||||||||||||||||||||||
10/31/2006 | 19.88 | – | (h) | 2.12 | 2.12 | (0.02 | ) | – | (0.02 | ) | 21.98 | ||||||||||||||||||||||||||||
10/31/2005 | 18.47 | 0.04 | 1.40 | 1.44 | (0.03 | ) | – | (0.03 | ) | 19.88 | |||||||||||||||||||||||||||||
10/31/2004 | 17.39 | 0.04 | 1.08 | 1.12 | (0.04 | ) | – | (0.04 | ) | 18.47 | |||||||||||||||||||||||||||||
10/31/2003 | 16.22 | 0.08 | 1.18 | 1.26 | (0.09 | ) | – | (0.09 | ) | 17.39 | |||||||||||||||||||||||||||||
10/31/2002 | 17.30 | 0.18 | (1.09 | ) | (0.91 | ) | (0.17 | ) | – | (0.17 | ) | 16.22 | |||||||||||||||||||||||||||
Class C | 4/30/2007 | 21.91 | 0.02 | 1.25 | 1.27 | (0.03 | ) | – | (0.03 | ) | 23.15 | ||||||||||||||||||||||||||||
10/31/2006 | 19.82 | 0.01 | 2.10 | 2.11 | (0.02 | ) | – | (0.02 | ) | 21.91 | |||||||||||||||||||||||||||||
10/31/2005 | 18.45 | 0.04 | 1.41 | 1.45 | (0.08 | ) | – | (0.08 | ) | 19.82 | |||||||||||||||||||||||||||||
10/31/2004 | 17.39 | (0.01 | ) | 1.11 | 1.10 | (0.04 | ) | – | (0.04 | ) | 18.45 | ||||||||||||||||||||||||||||
10/31/2003 | 16.22 | 0.08 | 1.18 | 1.26 | (0.09 | ) | – | (0.09 | ) | 17.39 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 6.09 | % | $ | 53,513 | 1.58 | % | 1.58 | % | 0.75 | % (i) | 23 | % | ||||||||||||||||||
10/31/2006 | 11.27 | 55,547 | 1.58 | 1.58 | 0.57 | (i) | 51 | ||||||||||||||||||||||||
10/31/2005 | 8.41 | 62,440 | 1.59 | 1.59 | 0.75 | (i) | 27 | ||||||||||||||||||||||||
10/31/2004 | 7.03 | 72,997 | 1.70 | 1.70 | 0.76 | 107 | |||||||||||||||||||||||||
10/31/2003 | 8.71 | 89,335 | 1.73 | 1.73 | 1.13 | 69 | |||||||||||||||||||||||||
10/31/2002 | (4.72 | ) | 100,923 | 1.68 | 1.70 | 1.70 | 87 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 5.78 | 107,373 | 2.17 | 2.17 | 0.16 | (i) | 23 | |||||||||||||||||||||||
10/31/2006 | 10.65 | 118,286 | 2.15 | 2.15 | 0.01 | (i) | 51 | ||||||||||||||||||||||||
10/31/2005 | 7.80 | 142,479 | 2.14 | 2.14 | 0.20 | (i) | 27 | ||||||||||||||||||||||||
10/31/2004 | 6.44 | 170,630 | 2.26 | 2.26 | 0.19 | 107 | |||||||||||||||||||||||||
10/31/2003 | 7.84 | 199,472 | 2.37 | 2.37 | 0.48 | 69 | |||||||||||||||||||||||||
10/31/2002 | (5.31 | ) | 214,019 | 2.33 | 2.35 | 1.05 | 87 | ||||||||||||||||||||||||
Class C | 4/30/2007 | 5.80 | 32,890 | 2.14 | 2.14 | 0.19 | (i) | 23 | |||||||||||||||||||||||
10/31/2006 | 10.64 | 36,750 | 2.12 | 2.12 | 0.03 | (i) | 51 | ||||||||||||||||||||||||
10/31/2005 | 7.85 | 43,276 | 2.13 | 2.13 | 0.21 | (i) | 27 | ||||||||||||||||||||||||
10/31/2004 | 6.33 | 53,990 | 2.28 | 2.28 | (0.08 | ) | 107 | ||||||||||||||||||||||||
10/31/2003 | 7.84 | 4,354 | 2.38 | 2.39 | 0.48 | 69 |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception date for the Fund's offering of share Class C was November 11, 2002.
(h) Rounds to less than $0.01 per share.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 9
TA IDEX Transamerica Balanced
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Balanced (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class I is currently uninvested. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Fund's net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not "readily available." As a result, foreign equity securities held by the Fund may be valued at fair market value as determined in good faith by the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 10
TA IDEX Transamerica Balanced
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007, of $3 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $6, earned by IBT for its services.
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.
Dividend income 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.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $250 million of ANA
0.75% of the next $250 million of ANA
0.70% of the next $1 billion of ANA
0.625% of ANA over $1.5 billion
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 11
TA IDEX Transamerica Balanced
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.45% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There are no amounts available for recapture at April 30, 2007.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 46 | |||||
Retained by Underwriter | 7 | ||||||
Contingent Deferred Sales Charge | 52 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $248 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $41.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $13. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 36,488 | |||||
U.S. Government | 10,187 | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 58,995 | ||||||
U.S. Government | 18,294 |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 12
TA IDEX Transamerica Balanced
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital gains through the periods listed:
Capital Loss Carryforwards | Available through | ||||||
$ | 10,346 | October 31, 2010 | |||||
9,071 | October 31, 2011 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Balanced 13
TA IDEX Transamerica Balanced
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Balanced (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investme nt Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their decisi ons 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Board favorably noted the Fund's strong performance compared to its peer group over the past one- and ten-year periods and its competitive performance compared to its peers over the past two-, three- and five-year periods, noting that the Fund's performance over the past three-, five- and ten-year periods is partially attributable to a prior investment sub-adviser. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser have achieved an acceptable level of investment performance and are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records with respect to the Fund and other mutual funds indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy and noted that the apparent profitability of TFAI was inflated by a one-time redemption of seed capital from the Fund. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are acceptable despite generally being above industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived
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Semi-Annual Report 2007
TA IDEX Transamerica Balanced 14
TA IDEX Transamerica Balanced (continued)
from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including the Sub-Adviser) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI, the Sub-Adviser and their affiliates.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the asset-based breakpoints in the Fund's advisory fee schedule appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requirem ents in particular. 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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TA IDEX Transamerica Balanced 15
TA IDEX Transamerica Convertible Securities
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,055.60 | 1.32 | % | $ | 6.73 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,018.25 | 1.32 | 6.61 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,051.70 | 1.99 | 10.12 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.93 | 1.99 | 9.94 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,053.00 | 1.95 | 9.93 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,015.12 | 1.95 | 9.74 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,058.90 | 0.82 | 4.19 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.73 | 0.82 | 4.11 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 1
TA IDEX Transamerica Convertible Securities
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
CONVERTIBLE BOND (80.3%) | |||||||||||
Aerospace (2.1%) | |||||||||||
Armor Holdings, Inc. 2.00%, due 11/01/2024 (a) | $ | 2,590 | $ | 3,778 | |||||||
Automotive Dealers (3.2%) | |||||||||||
United Auto Group, Inc., Subordinated Note 3.50%, due 04/01/2026 | 650 | 688 | |||||||||
United Auto Group, Inc., Subordinated Note–144A 3.50%, due 04/01/2026 | 4,750 | 5,029 | |||||||||
Business Services (2.9%) | |||||||||||
Lamar Advertising Co. 2.88%, due 12/31/2010 | 4,000 | 5,320 | |||||||||
Commercial Banks (11.1%) | |||||||||||
Credit Suisse/New York NY, Series IGT 0.25%, due 04/21/2014 | 2,800 | 2,689 | |||||||||
Deutsche Bank AG London 0.25%, due 04/11/2013 | 2,905 | 3,723 | |||||||||
Euronet Worldwide, Inc., Senior Note 3.50%, due 10/15/2025 † | 3,005 | 3,095 | |||||||||
Wachovia Bank NA-144A 0.25%, due 01/30/2014 § | 10,500 | 10,479 | |||||||||
Communication (1.2%) | |||||||||||
XM Satellite Radio Holdings, Inc. 1.75%, due 12/01/2009 † | 2,500 | 2,156 | |||||||||
Computer & Data Processing Services (1.7%) | |||||||||||
Informatica Corp., Senior Note 3.00%, due 03/15/2026 † | 3,000 | 3,068 | |||||||||
Computer & Office Equipment (6.4%) | |||||||||||
EMC Corp/Massachusetts, Senior Note, Reg S 1.75%, due 12/01/2013 † | 3,500 | 3,933 | |||||||||
SanDisk Corp., Senior Note 1.00%, due 05/15/2013 † | 2,775 | 2,414 | |||||||||
Scientific Games Corp. 0.75%, due 12/01/2024 | 4,200 | 5,203 | |||||||||
Electric Services (1.5%) | |||||||||||
Covanta Holding Corp. 1.00%, due 02/01/2027 | 2,600 | 2,678 | |||||||||
Electronic Components & Accessories (2.9%) | |||||||||||
Intel Corp., Junior Subordinated Note 2.95%, due 12/15/2035 † | 2,700 | 2,457 | |||||||||
Sunpower Corp., Senior Note | |||||||||||
1.25%, due 02/15/2027 | 2,300 | 2,797 | |||||||||
Food & Kindred Products (1.5%) | |||||||||||
Archer-Daniels-Midland Co.–144A 0.88%, due 02/15/2014 † | 2,500 | 2,622 |
Principal | Value | ||||||||||
Holding & Other Investment Offices (5.4%) | |||||||||||
BRE Properties, Inc., REIT, Senior Note 4.13%, due 08/15/2026 † | $ | 5,480 | $ | 5,686 | |||||||
Vornado Realty Trust REIT, Senior Note 3.63%, due 11/15/2026 † | 4,000 | 3,980 | |||||||||
Hotels & Other Lodging Places (4.8%) | |||||||||||
Hilton Hotels Corp., Senior Note 3.38%, due 04/15/2023 | 2,865 | 4,401 | |||||||||
Host Marriott, LP–144A 3.25%, due 04/15/2024 | 2,700 | 4,185 | |||||||||
Instruments & Related Products (2.9%) | |||||||||||
Allergan, Inc. 1.50%, due 04/01/2026 † | 4,750 | 5,172 | |||||||||
Mortgage Bankers & Brokers (2.3%) | |||||||||||
WMT Debt Exchangeable Trust–144A 0.25%, due 05/02/2013 § | 327 | S | 4,164 | ||||||||
Motion Pictures (5.4%) | |||||||||||
Lions Gate Entertainment Corp. 2.94%, due 10/15/2024 † | 3,750 | 4,294 | |||||||||
Macrovision Corp.–144A 2.63%, due 08/15/2011 | 4,900 | 5,408 | |||||||||
Oil & Gas Extraction (1.3%) | |||||||||||
Schlumberger, Ltd., Series B 2.13%, due 06/01/2023 | 1,270 | 2,373 | |||||||||
Pharmaceuticals (1.5%) | |||||||||||
Gilead Sciences, Inc. 0.63%, due 05/01/2013 | 2,240 | 2,668 | |||||||||
Research & Testing Services (1.3%) | |||||||||||
Core Laboratories LP, Senior Note 0.25%, due 10/31/2011 † | 2,070 | 2,303 | |||||||||
Security & Commodity Brokers (13.9%) | |||||||||||
BlackRock, Inc./New York 2.63%, due 02/15/2035 | 1,870 | 2,854 | |||||||||
Goldman Sachs Group, Inc. 0.25%, due 01/25/2017 | 7,010 | 7,255 | |||||||||
Lehman Brothers Holdings, Inc. 0.25%, due 12/12/2013 | 6,930 | 6,767 | |||||||||
Morgan Stanley Group, Inc.–144A 0.25%, due 07/30/2014 § | 4,800 | 5,291 | |||||||||
Svensk Exportkredit AB 0.25%, due 01/31/2015 § | 1,320 | 2,942 | |||||||||
Telecommunications (2.2%) | |||||||||||
NII Holdings, Inc., Senior Note 2.75%, due 08/15/2025 | 2,355 | 3,889 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 2
TA IDEX Transamerica Convertible Securities
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Transportation Equipment (3.6%) | |||||||||||
Trinity Industries, Inc. 3.88%, due 06/01/2036 | $ | 5,500 | $ | 6,545 | |||||||
Water Transportation (1.2%) | |||||||||||
Carnival Corp. 1.13%, due 04/29/2033 (b) | 3,150 | 2,197 | |||||||||
Total Convertible Bond (cost: $132,597) | 144,503 | ||||||||||
Shares | Value | ||||||||||
CONVERTIBLE PREFERRED STOCKS (12.6%) | |||||||||||
Automotive (2.4%) | |||||||||||
Ford Motor Co. Capital Trust II | 122,000 | $ | 4,377 | ||||||||
Chemicals & Allied Products (1.8%) | |||||||||||
Celanese Corp. † | 72,850 | 3,169 | |||||||||
Insurance (1.2%) | |||||||||||
Fortis Insurance NV–144A | 1,495 | 2,168 | |||||||||
Life Insurance (1.4%) | |||||||||||
Metlife, Inc. ‡ | 75,470 | 2,481 | |||||||||
Oil & Gas Extraction (2.6%) | |||||||||||
Chesapeake Energy Corp. | 16,700 | 4,712 | |||||||||
Security & Commodity Brokers (3.2%) | |||||||||||
Credit Suisse First Boston USA, Inc. | 78,730 | 5,806 | |||||||||
Total Convertible Preferred Stocks (cost: $18,413) | 22,713 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (14.1%) | |||||||||||
Debt (14.1%) | |||||||||||
Bank Notes (0.9%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 791 | $ | 791 | |||||||
5.27%, due 06/18/2007 * | 791 | 791 | |||||||||
Commercial Paper (3.1%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 317 | 317 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 307 | 307 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 211 158 | 211 158 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 158 | 158 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 158 | 158 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 158 | 158 |
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 | $158 | $158 | |||||||||
5.28%, due 05/24/2007 | 158 | 158 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 317 | 317 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 310 | 310 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 317 | 317 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 317 | 317 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 626 158 158 | 626 158 158 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 158 158 158 209 | 158 158 158 209 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 237 | 237 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 158 | 158 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 317 | 317 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 158 | 158 | |||||||||
Euro Dollar Overnight (1.7%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 158 | 158 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 317 | 317 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 317 | 317 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 317 | 317 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 316 | 316 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 316 | 316 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 316 | 316 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 158 | 158 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 316 | 316 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 600 | 600 |
The notes to the financial statements are an integral part of this report.
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Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 3
TA IDEX Transamerica Convertible Securities
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (5.1%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | $ | 316 | $ | 316 | |||||||
Bank of Montreal 5.28%, due 05/18/2007 | 158 | 158 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 222 | 222 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 316 316 158 158 316 | 316 316 158 158 316 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 158 316 | 158 316 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 475 158 | 475 158 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 316 | 316 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 316 | 316 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 475 475 316 | 475 475 316 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 475 | 475 |
Principal | Value | ||||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 | $ | 316 | $ | 316 | |||||||
5.31%, due 05/25/2007 5.30%, due 05/09/2007 | 158 316 | 158 316 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 158 | 158 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 316 | 316 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 316 | 316 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 316 633 475 791 | 316 633 475 791 | |||||||||
Repurchase Agreements (3.3%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $876 on 05/01/2007 | 876 | 876 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $3,480 on 05/01/2007 | 3,480 | 3,480 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,524 on 05/01/2007 | 1,524 | 1,524 | |||||||||
Total Security Lending Collateral (cost: $25,367) | 25,367 | ||||||||||
Total Investment Securities (cost: $176,377) # | $ | 192,583 |
NOTES TO SCHEDULE OF INVESTMENTS:
(a) Armor Holdings, Inc. has a coupon rate of 2.00% until 11/01/2011, thereafter the coupon rate will be 0.00%.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $24,690.
S Security trades in units. Each unit represents $1,000.
(b) Carnival Corp. has a coupon rate of 1.13% until 04/29/2008, thereafter the coupon rate will be 0.00%.
‡ Non-income producing.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
§ Security is deemed to be illiquid.
†† Cash collateral for the Repurchase Agreements, valued at $6,032, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $176,412. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $17,366 and $1,195, respectively. Net unrealized appreciation for tax purposes is $16,171.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $44,093 or 24.5% of the net assets of the Fund.
REIT Real Estate Investment Trust
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 4
TA IDEX Transamerica Convertible Securities
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $176,377) (including securities loaned of $24,690) | $ | 192,583 | |||||
Cash | 12,216 | ||||||
Receivables: | |||||||
Shares of beneficial interest sold | 85 | ||||||
Interest | 571 | ||||||
Dividends | 49 | ||||||
Other | 9 | ||||||
205,513 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 26 | ||||||
Management and advisory fees | 125 | ||||||
Distribution and service fees | 10 | ||||||
Transfer agent fees | 2 | ||||||
Administration fees | 3 | ||||||
Payable for collateral for securities on loan | 25,367 | ||||||
Other | 38 | ||||||
25,571 | |||||||
Net Assets | $ | 179,942 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 140,024 | |||||
Undistributed (accumulated) net investment income (loss) | 116 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities | 23,596 | ||||||
Net unrealized appreciation (depreciation) on investment securities | 16,206 | ||||||
Net Assets | $ | 179,942 | |||||
Net Assets by Class: | |||||||
Class A | $ | 6,810 | |||||
Class B | 6,337 | ||||||
Class C | 3,245 | ||||||
Class I | 163,550 | ||||||
Shares Outstanding: | |||||||
Class A | 535 | ||||||
Class B | 500 | ||||||
Class C | 257 | ||||||
Class I | 12,839 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 12.73 | |||||
Class B | 12.67 | ||||||
Class C | 12.63 | ||||||
Class I | 12.74 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 13.36 |
(a) Includes the maximum selling commission (represented as a percentage of offering price) whuch is reduced on certain levels of sales as set forth in the Prospectus. Net asset value per share for Classes B, C and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 1,883 | |||||
Dividends | 628 | ||||||
Income from loaned securities-net | 17 | ||||||
2,528 | |||||||
Expenses: | |||||||
Management and advisory fees | 928 | ||||||
Distribution and service fees: | |||||||
Class A | 12 | ||||||
Class B | 33 | ||||||
Class C | 17 | ||||||
Transfer agent fees: | |||||||
Class A | 5 | ||||||
Class B | 5 | ||||||
Class C | 2 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 1 | ||||||
Custody fees | 19 | ||||||
Administration fees | 25 | ||||||
Legal fees | 3 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 5 | ||||||
Registration fees | 27 | ||||||
Other | 2 | ||||||
Total expenses | 1,094 | ||||||
Net Investment Income (Loss) | 1,434 | ||||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | 23,631 | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | (10,151 | ) | |||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 13,480 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 14,914 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 5
TA IDEX Transamerica Convertible Securities
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 1,434 | $ | 2,591 | |||||||
Net realized gain (loss) from investment securities | 23,631 | 14,409 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities | (10,151 | ) | 8,663 | ||||||||
14,914 | 25,663 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (29 | ) | (62 | ) | |||||||
Class B | (8 | ) | (10 | ) | |||||||
Class C | (5 | ) | (5 | ) | |||||||
Class I | (1,534 | ) | (2,253 | ) | |||||||
(1,576 | ) | (2,330 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (337 | ) | (69 | ) | |||||||
Class B | (351 | ) | (74 | ) | |||||||
Class C | (180 | ) | (51 | ) | |||||||
Class I | (13,541 | ) | (1,987 | ) | |||||||
(14,409 | ) | (2,181 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 1,250 | 3,899 | |||||||||
Class B | 518 | 882 | |||||||||
Class C | 229 | 1,213 | |||||||||
Class I | 3,432 | 276,702 | |||||||||
5,429 | 282,696 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 339 | 107 | |||||||||
Class B | 295 | 66 | |||||||||
Class C | 118 | 46 | |||||||||
Class I | 15,075 | 4,240 | |||||||||
15,827 | 4,459 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (1,179 | ) | (210,248 | ) | |||||||
Class B | (1,047 | ) | (1,615 | ) | |||||||
Class C | (648 | ) | (2,598 | ) | |||||||
Class I | (110,395 | ) | (41,315 | ) | |||||||
(113,269 | ) | (255,776 | ) | ||||||||
Redemption fees: | |||||||||||
Class B | – | (b) | – | (b) | |||||||
Class C | – | – | (b) | ||||||||
– | (b) | – | (b) | ||||||||
Automatic conversions: | |||||||||||
Class A | 64 | 4 | |||||||||
Class B | (64 | ) | (4 | ) | |||||||
– | – | ||||||||||
(92,013 | ) | 31,379 | |||||||||
Net increase (decrease) in net assets | (93,084 | ) | 52,531 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 273,026 | 220,495 | |||||||||
End of period | $ | 179,942 | $ | 273,026 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 116 | $ | 258 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 98 | 311 | |||||||||
Class B | 41 | 72 | |||||||||
Class C | 18 | 98 | |||||||||
Class I | 270 | 23,177 | |||||||||
427 | 23,658 | ||||||||||
Shares issued-reinvested from distributions: | |||||||||||
Class A | 27 | 9 | |||||||||
Class B | 23 | 5 | |||||||||
Class C | 10 | 4 | |||||||||
Class I | 1,196 | 346 | |||||||||
1,256 | 364 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (93 | ) | (17,934 | ) | |||||||
Class B | (83 | ) | (130 | ) | |||||||
Class C | (51 | ) | (210 | ) | |||||||
Class I | (8,725 | ) | (3,425 | ) | |||||||
(8,952 | ) | (21,699 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 5 | – | |||||||||
Class B | (5 | ) | – | ||||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 37 | (17,614 | ) | ||||||||
Class B | (24 | ) | (53 | ) | |||||||
Class C | (23 | ) | (108 | ) | |||||||
Class I | (7,259 | ) | 20,098 | ||||||||
(7,269 | ) | 2,323 |
(a) Class I was offered for investment on November 15,2005.
(b) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 6
TA IDEX Transamerica Convertible Securities
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 12.76 | $ | 0.05 | $ | 0.64 | $ | 0.69 | $ | (0.05 | ) | $ | (0.67 | ) | $ | (0.72 | ) | $ | 12.73 | |||||||||||||||||||
10/31/2006 | 11.56 | 0.07 | 1.33 | 1.40 | (0.07 | ) | (0.13 | ) | (0.20 | ) | 12.76 | ||||||||||||||||||||||||||||
10/31/2005 | 11.00 | 0.20 | 0.81 | 1.01 | (0.20 | ) | (0.25 | ) | (0.45 | ) | 11.56 | ||||||||||||||||||||||||||||
10/31/2004 | 11.32 | 0.21 | 0.56 | 0.77 | (0.22 | ) | (0.87 | ) | (1.09 | ) | 11.00 | ||||||||||||||||||||||||||||
10/31/2003 | 9.39 | 0.24 | 1.92 | 2.16 | (0.23 | ) | – | (0.23 | ) | 11.32 | |||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.14 | (0.67 | ) | (0.53 | ) | (0.08 | ) | – | (0.08 | ) | 9.39 | |||||||||||||||||||||||||||
Class B | 4/30/2007 | 12.71 | – | (h) | 0.65 | 0.65 | (0.02 | ) | (0.67 | ) | (0.69 | ) | 12.67 | ||||||||||||||||||||||||||
10/31/2006 | 11.54 | – | (h) | 1.32 | 1.32 | (0.02 | ) | (0.13 | ) | (0.15 | ) | 12.71 | |||||||||||||||||||||||||||
10/31/2005 | 11.00 | 0.09 | 0.80 | 0.89 | (0.10 | ) | (0.25 | ) | (0.35 | ) | 11.54 | ||||||||||||||||||||||||||||
10/31/2004 | 11.31 | 0.14 | 0.57 | 0.71 | (0.15 | ) | (0.87 | ) | (1.02 | ) | 11.00 | ||||||||||||||||||||||||||||
10/31/2003 | 9.38 | 0.17 | 1.93 | 2.10 | (0.17 | ) | – | (0.17 | ) | 11.31 | |||||||||||||||||||||||||||||
10/31/2002 | 10.00 | 0.11 | (0.68 | ) | (0.57 | ) | (0.05 | ) | – | (0.05 | ) | 9.38 | |||||||||||||||||||||||||||
Class C | 4/30/2007 | 12.66 | 0.01 | 0.65 | 0.66 | (0.02 | ) | (0.67 | ) | (0.69 | ) | 12.63 | |||||||||||||||||||||||||||
10/31/2006 | 11.50 | – | (i) | 1.31 | 1.31 | (0.02 | ) | (0.13 | ) | (0.15 | ) | 12.66 | |||||||||||||||||||||||||||
10/31/2005 | 10.97 | 0.08 | 0.82 | 0.90 | (0.12 | ) | (0.25 | ) | (0.37 | ) | 11.50 | ||||||||||||||||||||||||||||
10/31/2004 | 11.31 | 0.11 | 0.57 | 0.68 | (0.15 | ) | (0.87 | ) | (1.02 | ) | 10.97 | ||||||||||||||||||||||||||||
10/31/2003 | 9.36 | 0.17 | 1.95 | 2.12 | (0.17 | ) | – | (0.17 | ) | 11.31 | |||||||||||||||||||||||||||||
Class I | 4/30/2007 | 12.76 | 0.08 | 0.65 | 0.73 | (0.08 | ) | (0.67 | ) | (0.75 | ) | 12.74 | |||||||||||||||||||||||||||
10/31/2006 | 11.71 | 0.14 | 1.17 | 1.31 | (0.13 | ) | (0.13 | ) | (0.26 | ) | 12.76 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 5.56 | % | $ | 6,810 | 1.32 | % | 1.32 | % | 0.74 | % | 46 | % | ||||||||||||||||||
10/31/2006 | 12.15 | 6,350 | 1.25 | 1.25 | 0.59 | 69 | |||||||||||||||||||||||||
10/31/2005 | 9.24 | 209,374 | 1.17 | 1.17 | 1.74 | 87 | |||||||||||||||||||||||||
10/31/2004 | 7.06 | 188,049 | 1.20 | 1.20 | 1.83 | 157 | |||||||||||||||||||||||||
10/31/2003 | 23.49 | 175,175 | 1.33 | 1.33 | 2.27 | 119 | |||||||||||||||||||||||||
10/31/2002 | (5.42 | ) | 10,205 | 1.73 | 3.85 | 2.59 | 170 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 5.17 | 6,337 | 1.99 | 1.99 | 0.06 | (j) | 46 | |||||||||||||||||||||||
10/31/2006 | 11.47 | 6,651 | 1.99 | 1.99 | – | (h)(j) | 69 | ||||||||||||||||||||||||
10/31/2005 | 8.09 | 6,656 | 2.15 | 2.15 | 0.76 | (j) | 87 | ||||||||||||||||||||||||
10/31/2004 | 6.52 | 6,379 | 1.79 | 1.79 | 1.24 | 157 | |||||||||||||||||||||||||
10/31/2003 | 22.58 | 6,508 | 1.98 | 1.98 | 1.62 | 119 | |||||||||||||||||||||||||
10/31/2002 | (5.68 | ) | 1,138 | 2.38 | 4.50 | 1.94 | 170 | ||||||||||||||||||||||||
Class C | 4/30/2007 | 5.30 | 3,245 | 1.95 | 1.95 | 0.10 | 46 | ||||||||||||||||||||||||
10/31/2006 | 11.44 | 3,551 | 1.94 | 1.94 | 0.02 | (j) | 69 | ||||||||||||||||||||||||
10/31/2005 | 8.17 | 4,465 | 2.16 | 2.16 | 0.73 | (j) | 87 | ||||||||||||||||||||||||
10/31/2004 | 6.33 | 5,204 | 2.05 | 2.05 | 0.98 | 157 | |||||||||||||||||||||||||
10/31/2003 | 22.84 | 5,048 | 1.98 | 1.98 | 1.62 | 119 | |||||||||||||||||||||||||
Class I | 4/30/2007 | 5.89 | 163,550 | 0.82 | 0.82 | 1.21 | 46 | ||||||||||||||||||||||||
10/31/2006 | 11.26 | 256,474 | 0.82 | 0.82 | 1.20 | 69 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 7
TA IDEX Transamerica Convertible Securities
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Transamerica Convertible Securities ("the Fund") commenced operations on March 1, 2002. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Rounds to less than $(0.01).
(i) Rounds to less than $0.01.
(j) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 8
TA IDEX Transamerica Convertible Securities
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Convertible Securities (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $7, earned by IBT for its services.
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.
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 Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 9
TA IDEX Transamerica Convertible Securities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule represents the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 10,325 | 5.74 | % | |||||||
TA IDEX Asset Allocation– Moderate Portfolio | 70,367 | 39.11 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 82,858 | 46.05 | % | ||||||||
Total | $ | 163,550 | 90.90 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.75% of the first $250 million of ANA
0.70% of ANA over $250 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.35% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There are no amounts available for recapture at April 30, 2007.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 11 | |||||
Retained by Underwriter | 2 | ||||||
Contingent Deferred Sales Charge | 9 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $12 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $9.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 10
TA IDEX Transamerica Convertible Securities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $13. As of April 30, 2007, the Fund has not made payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 107,246 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 220,543 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting
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Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 11
TA IDEX Transamerica Convertible Securities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6.–(continued)
standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
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Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 12
TA IDEX Transamerica Convertible Securities
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Convertible Securities (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement an d the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They base d 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the S ub-Adviser's portfolio management team, and the Fund's investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser generally had achieved strong investment performance, noting that the performance of the Fund was superior to its peers over all the past one-, two- and three-year periods, and that its performance had continued improving recently as evidenced by the Fund's improved performance ranking compared to its peers. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generati ng a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees dete rmined that while the management fees of the Fund are slightly above industry averages, the Fund's overall expense ratio is lower than industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services,
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 13
TA IDEX Transamerica Convertible Securities (continued)
TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that asset-based breakpoints in the Fund's advisory fee schedule appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy, although the Board suggested that Management should consider attempting to introduce asset-based breakpoints into the sub-advisory fee schedule. The Board also asked Management to actively work with the Sub-Adviser to propose even more favorable advisory and sub-advisory fee bre akpoints for the Fund in the future. The Trustees 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that other benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law and "best execution" requireme nts. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Convertible Securities 14
TA IDEX Transamerica Equity
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,046.80 | 1.48 | % | $ | 7.51 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.46 | 1.48 | 7.40 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,042.80 | 2.17 | 10.99 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.03 | 2.17 | 10.84 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,042.70 | 2.17 | 10.99 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.03 | 2.17 | 10.84 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,050.50 | 0.80 | 4.07 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.83 | 0.80 | 4.01 | |||||||||||||||
Class T | |||||||||||||||||||
Actual | 1,000.00 | 1,049.70 | 0.95 | 4.83 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.08 | 0.95 | 4.76 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 1
TA IDEX Transamerica Equity
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (97.8%) | |||||||||||
Air Transportation (2.2%) | |||||||||||
FedEx Corp. | 350,000 | $ | 36,904 | ||||||||
Amusement & Recreation Services (0.1%) | |||||||||||
Disney (Walt) Co. (The) | 50,660 | 1,772 | |||||||||
Apparel & Accessory Stores (1.7%) | |||||||||||
Nordstrom, Inc. | 510,550 | 28,039 | |||||||||
Automotive (2.8%) | |||||||||||
Harley-Davidson, Inc. | 450,000 | 28,494 | |||||||||
PACCAR, Inc. | 223,000 | 18,728 | |||||||||
Beverages (2.4%) | |||||||||||
PepsiCo, Inc. | 600,000 | 39,654 | |||||||||
Chemicals & Allied Products (3.9%) | |||||||||||
Praxair, Inc. | 1,000,000 | 64,550 | |||||||||
Communications Equipment (5.5%) | |||||||||||
QUALCOMM, Inc. | 1,446,015 | 63,335 | |||||||||
Research In Motion, Ltd. ‡† | 220,000 | 28,948 | |||||||||
Computer & Data Processing Services (9.5%) | |||||||||||
Electronic Arts, Inc. ‡ | 458,540 | 23,115 | |||||||||
Google, Inc.–Class A ‡ | 100,000 | 47,138 | |||||||||
Intuit, Inc. ‡ | 1,210,700 | 34,444 | |||||||||
Microsoft Corp. | 1,810,000 | 54,191 | |||||||||
Computer & Office Equipment (5.0%) | |||||||||||
Apple, Inc. ‡ | 830,000 | 82,834 | |||||||||
Drug Stores & Proprietary Stores (2.6%) | |||||||||||
Walgreen Co. | 1,000,000 | 43,900 | |||||||||
Electronic & Other Electric Equipment (2.7%) | |||||||||||
General Electric Co. | 1,200,000 | 44,232 | |||||||||
Engineering & Management Services (3.0%) | |||||||||||
Jacobs Engineering Group, Inc. ‡ | 991,700 | 50,011 | |||||||||
Food Stores (2.6%) | |||||||||||
Whole Foods Market, Inc. † | 932,550 | 43,634 | |||||||||
Hotels & Other Lodging Places (6.5%) | |||||||||||
Las Vegas Sands Corp. ‡† | 250,000 | 21,298 | |||||||||
Marriott International, Inc.–Class A | 1,040,000 | 47,018 | |||||||||
MGM Mirage, Inc. ‡† | 605,000 | 40,686 | |||||||||
Industrial Machinery & Equipment (2.8%) | |||||||||||
Caterpillar, Inc. | 650,000 | 47,203 | |||||||||
Insurance (1.5%) | |||||||||||
American International Group, Inc. | 365,000 | 25,517 |
Shares | Value | ||||||||||
Management Services (1.5%) | |||||||||||
Paychex, Inc. | 663,820 | $ | 24,628 | ||||||||
Medical Instruments & Supplies (5.2%) | |||||||||||
Varian Medical Systems, Inc. ‡ | 554,225 | 23,394 | |||||||||
Zimmer Holdings, Inc. ‡ | 700,000 | 63,336 | |||||||||
Oil & Gas Extraction (2.0%) | |||||||||||
Schlumberger, Ltd. † | 448,000 | 33,076 | |||||||||
Petroleum Refining (1.6%) | |||||||||||
Suncor Energy, Inc. | 340,000 | 27,370 | |||||||||
Pharmaceuticals (9.6%) | |||||||||||
Allergan, Inc. | 425,000 | 51,510 | |||||||||
Genentech, Inc. ‡ | 200,000 | 15,998 | |||||||||
Gilead Sciences, Inc. ‡† | 330,000 | 26,968 | |||||||||
Roche Holding AG-Genusschein | 342,981 | 64,861 | |||||||||
Printing & Publishing (4.7%) | |||||||||||
McGraw-Hill Cos., Inc. (The) | 1,190,500 | 78,014 | |||||||||
Restaurants (2.2%) | |||||||||||
Starbucks Corp. ‡ | 1,200,000 | 37,224 | |||||||||
Security & Commodity Brokers (11.8%) | |||||||||||
American Express Co. | 900,000 | 54,603 | |||||||||
Ameriprise Financial, Inc. | 800,000 | 47,576 | |||||||||
BlackRock, Inc. † | 130,000 | 19,461 | |||||||||
Chicago Mercantile Exchange † | 140,000 | 72,345 | |||||||||
T. Rowe Price Group, Inc. | 59,000 | 2,931 | |||||||||
Telecommunications (2.1%) | |||||||||||
AT&T, Inc. | 850,000 | 32,912 | |||||||||
Verizon Communications, Inc. | 48,000 | 1,833 | |||||||||
Transportation & Public Utilities (2.3%) | |||||||||||
Expeditors International of Washington, Inc. | 906,790 | 37,904 | |||||||||
Total Common Stocks (cost: $1,362,873) | 1,631,589 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (5.2%) | |||||||||||
Debt (5.2%) | |||||||||||
Bank Notes (0.3%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 2,724 | $ | 2,724 | |||||||
5.27%, due 06/18/2007 * | 2,724 | 2,724 | |||||||||
Commercial Paper (1.1%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 1,090 | 1,090 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 1,055 | 1,055 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 2
TA IDEX Transamerica Equity
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Charta LLC–144A 5.30%, due 05/09/2007 | $ | 725 | $ | 725 | |||||||
5.29%, due 06/13/2007 | 545 | 545 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 545 | 545 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 545 | 545 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 545 | 545 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 545 545 | 545 545 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 1,090 | 1,090 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 1,066 | 1,066 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 1,090 | 1,090 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 1,090 | 1,090 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 2,156 545 545 | 2,156 545 545 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 545 545 545 718 | 545 545 545 718 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 817 | 817 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 545 | 545 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 1,090 | 1,090 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 545 | 545 | |||||||||
Euro Dollar Overnight (0.7%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 545 | 545 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 1,090 | 1,090 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 1,090 | 1,090 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 1,090 | 1,090 |
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
National Australia Bank 5.30%, due 05/01/2007 | $ | 1,090 | $ | 1,090 | |||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 1,090 | 1,090 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 1,090 | 1,090 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 545 | 545 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 1,090 | 1,090 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 2,067 | 2,067 | |||||||||
Euro Dollar Terms (1.9%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 1,090 | 1,090 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 545 | 545 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 763 | 763 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 1,090 1,090 545 545 1,090 | 1,090 1,090 545 545 1,090 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 545 1,090 | 545 1,090 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 1,634 545 | 1,634 545 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 1,090 | 1,090 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 1,090 | 1,090 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 1,634 1,634 1,090 | 1,634 1,634 1,090 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 1,634 | 1,634 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 1,090 545 1,090 | 1,090 545 1,090 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 3
TA IDEX Transamerica Equity
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | $ | 545 | $ | 545 | |||||||
Swedbank AB 5.30%, due 05/11/2007 | 1,090 | 1,090 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 1,090 | 1,090 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 1,090 2,179 1,634 2,724 | 1,090 2,179 1,634 2,724 | |||||||||
Repurchase Agreements (1.2%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $3,018 on 05/01/2007 | 3,017 | 3,017 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $11,989 on 05/01/2007 | 11,987 | 11,987 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $5,251 on 05/01/2007 | 5,250 | 5,250 | |||||||||
Total Security Lending Collateral (cost: $87,382) | 87,382 | ||||||||||
Total Investment Securities (cost: $1,450,255) # | $ | 1,718,971 |
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $85,182.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $20,778, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $1,453,977. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $283,015 and $18,021, respectively. Net unrealized appreciation for tax purposes is $264,994.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $16,347 or 1.0% of the net assets of the Fund.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 4
TA IDEX Transamerica Equity
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $1,450,255) (including securities loaned of $85,182) | $ | 1,718,971 | |||||
Cash | 42,894 | ||||||
Receivables: | |||||||
Investment securities sold | 18,029 | ||||||
Shares of beneficial interest sold | 988 | ||||||
Interest | 135 | ||||||
Dividends | 1,075 | ||||||
Dividend reclaims receivable | 344 | ||||||
Other | 427 | ||||||
1,782,863 | |||||||
Liabilities: | |||||||
Investment securities purchased | 22,366 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 1,875 | ||||||
Management and advisory fees | 987 | ||||||
Distribution and service fees | 392 | ||||||
Transfer agent fees | 521 | ||||||
Administration fees | 28 | ||||||
Payable for collateral for securities on loan | 87,382 | ||||||
Other | 822 | ||||||
114,373 | |||||||
Net Assets | $ | 1,668,490 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 2,039,101 | |||||
Undistributed (accumulated) net investment income (loss) | (3,211 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions | (636,135 | ) | |||||
Net unrealized appreciation (depreciation) on: Investment securities | 268,714 | ||||||
Translation of assets and liabilities denominated in foreign currencies | 21 | ||||||
Net Assets | $ | 1,668,490 | |||||
Net Assets by Class: | |||||||
Class A | $ | 476,438 | |||||
Class B | 196,782 | ||||||
Class C | 93,030 | ||||||
Class I | 726,846 | ||||||
Class T | 175,394 | ||||||
Shares Outstanding: | |||||||
Class A | 46,291 | ||||||
Class B | 20,175 | ||||||
Class C | 9,520 | ||||||
Class I | 69,894 | ||||||
Class T | 6,147 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 10.29 | |||||
Class B | 9.75 | ||||||
Class C | 9.77 | ||||||
Class I | 10.40 | ||||||
Class T | 28.53 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 10.89 | |||||
Class T | 31.18 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $157) | $ | 7,241 | |||||
Interest | 560 | ||||||
Income from loaned securities–net | 34 | ||||||
7,835 | |||||||
Expenses: | |||||||
Management and advisory fees | 6,035 | ||||||
Distribution and service fees: | |||||||
Class A | 845 | ||||||
Class B | 1,049 | ||||||
Class C | 476 | ||||||
Transfer agent fees: | |||||||
Class A | 795 | ||||||
Class B | 559 | ||||||
Class C | 173 | ||||||
Class T | 141 | ||||||
Printing and shareholder reports | 257 | ||||||
Custody fees | 104 | ||||||
Administration fees | 169 | ||||||
Legal fees | 21 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 34 | ||||||
Registration fees | 119 | ||||||
Other | 21 | ||||||
Total expenses | 10,808 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class B | (172 | ) | |||||
Total reimbursed expenses | (172 | ) | |||||
Net expenses | 10,636 | ||||||
Net Investment Income (Loss) | (2,801 | ) | |||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 150,348 | ||||||
Foreign currency transactions | (2 | ) | |||||
150,346 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | (66,614 | ) | |||||
Translation of assets and liabilities denominated in foreign currencies | 18 | ||||||
(66,596 | ) | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions | 83,750 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 80,949 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 5
TA IDEX Transamerica Equity
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a)(c) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | (2,801 | ) | $ | (1,682 | ) | |||||
Net realized gain (loss) from investment securities and foreign currency transactions | 150,346 | 1,388 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation | (66,596 | ) | 66,056 | ||||||||
80,949 | 65,762 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net realized gains: | |||||||||||
Class A | – | (623 | ) | ||||||||
Class B | – | (446 | ) | ||||||||
Class C | – | (214 | ) | ||||||||
Class I | – | (3,129 | ) | ||||||||
– | (4,412 | ) | |||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 23,968 | 56,726 | |||||||||
Class B | 4,388 | 8,675 | |||||||||
Class C | 5,651 | 14,235 | |||||||||
Class I | 57,780 | 520,048 | |||||||||
Class T | 981 | 7 | |||||||||
92,768 | 599,691 | ||||||||||
Proceeds from fund acquisition: | |||||||||||
Class A | – | 397,128 | |||||||||
Class B | – | 172,096 | |||||||||
Class C | – | 62,104 | |||||||||
Class I | – | 157,501 | |||||||||
Class T | – | 195,217 | |||||||||
– | 984,046 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | – | 613 | |||||||||
Class B | – | 434 | |||||||||
Class C | – | 198 | |||||||||
Class I | – | 3,129 | |||||||||
– | 4,374 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (76,957 | ) | (275,131 | ) | |||||||
Class B | (32,395 | ) | (12,898 | ) | |||||||
Class C | (13,764 | ) | (6,283 | ) | |||||||
Class I | (81,850 | ) | – | ||||||||
Class T | (30,158 | ) | (409 | ) | |||||||
(235,124 | ) | (294,721 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (b) | 1 | ||||||||
Class B | – | (b) | – | (b) | |||||||
Class C | – | (b) | – | (b) | |||||||
Class T | – | (b) | – | (b) | |||||||
– | (b) | 1 |
April 30, 2007 (unaudited) | October 31, 2006 (a)(c) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 6,439 | $ | 1,408 | |||||||
Class B | (6,439 | ) | (1,408 | ) | |||||||
– | – | ||||||||||
(142,356 | ) | 1,293,391 | |||||||||
Net increase (decrease) in net assets | (61,407 | ) | 1,354,741 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 1,729,897 | 375,156 | |||||||||
End of period | $ | 1,668,490 | $ | 1,729,897 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (3,211 | ) | $ | (410 | ) | |||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 2,361 | 6,055 | |||||||||
Class B | 456 | 956 | |||||||||
Class C | 587 | 1,599 | |||||||||
Class I | 5,648 | 55,914 | |||||||||
Class T | 35 | – | |||||||||
9,087 | 64,524 | ||||||||||
Shares issued on fund acquisition: | |||||||||||
Class A | – | 40,523 | |||||||||
Class B | – | 18,465 | |||||||||
Class C | – | 6,649 | |||||||||
Class I | – | 15,958 | |||||||||
Class T | – | 7,204 | |||||||||
– | 88,799 | ||||||||||
Shares issued-reinvested from distributions: | |||||||||||
Class A | – | 65 | |||||||||
Class B | – | 48 | |||||||||
Class C | – | 22 | |||||||||
Class I | – | 331 | |||||||||
– | 466 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (7,617 | ) | (29,894 | ) | |||||||
Class B | (3,372 | ) | (1,425 | ) | |||||||
Class C | (1,427 | ) | (693 | ) | |||||||
Class I | (7,957 | ) | – | ||||||||
Class T | (1,077 | ) | (15 | ) | |||||||
(21,450 | ) | (32,027 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 637 | 148 | |||||||||
Class B | (671 | ) | (155 | ) | |||||||
(34 | ) | (7 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (4,619 | ) | 16,897 | ||||||||
Class B | (3,587 | ) | 17,889 | ||||||||
Class C | (840 | ) | 7,577 | ||||||||
Class I | (2,309 | ) | 72,203 | ||||||||
Class T | (1,042 | ) | 7,189 | ||||||||
(12,397 | ) | 121,755 |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
(c) Class T was offered for investment on October 27, 2006.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 6
TA IDEX Transamerica Equity
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 9.83 | $ | (0.03 | ) | $ | 0.49 | $ | 0.46 | $ | – | $ | – | $ | – | $ | 10.29 | |||||||||||||||||||||
10/31/2006 | 8.87 | (0.07 | ) | 1.11 | 1.04 | – | (0.08 | ) | (0.08 | ) | 9.83 | ||||||||||||||||||||||||||||
10/31/2005 | 7.44 | (0.02 | ) | 1.58 | 1.56 | – | (0.13 | ) | (0.13 | ) | 8.87 | ||||||||||||||||||||||||||||
10/31/2004 | 6.86 | (0.07 | ) | 0.65 | 0.58 | – | – | – | 7.44 | ||||||||||||||||||||||||||||||
10/31/2003 | 5.52 | (0.05 | ) | 1.39 | 1.34 | – | – | – | 6.86 | ||||||||||||||||||||||||||||||
10/31/2002 | 6.38 | (0.07 | ) | (0.79 | ) | (0.86 | ) | – | – | – | 5.52 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 9.35 | (0.06 | ) | 0.46 | 0.40 | – | – | – | 9.75 | |||||||||||||||||||||||||||||
10/31/2006 | 8.49 | (0.12 | ) | 1.06 | 0.94 | – | (0.08 | ) | (0.08 | ) | 9.35 | ||||||||||||||||||||||||||||
10/31/2005 | 7.19 | (0.08 | ) | 1.51 | 1.43 | – | (0.13 | ) | (0.13 | ) | 8.49 | ||||||||||||||||||||||||||||
10/31/2004 | 6.68 | (0.11 | ) | 0.62 | 0.51 | – | – | – | 7.19 | ||||||||||||||||||||||||||||||
10/31/2003 | 5.40 | (0.09 | ) | 1.37 | 1.28 | – | – | – | 6.68 | ||||||||||||||||||||||||||||||
10/31/2002 | 6.29 | (0.12 | ) | (0.77 | ) | (0.89 | ) | – | – | – | 5.40 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 9.37 | (0.06 | ) | 0.46 | 0.40 | – | – | – | 9.77 | |||||||||||||||||||||||||||||
10/31/2006 | 8.50 | (0.12 | ) | 1.07 | 0.95 | – | (0.08 | ) | (0.08 | ) | 9.37 | ||||||||||||||||||||||||||||
10/31/2005 | 7.20 | (0.08 | ) | 1.51 | 1.43 | – | (0.13 | ) | (0.13 | ) | 8.50 | ||||||||||||||||||||||||||||
10/31/2004 | 6.68 | (0.11 | ) | 0.63 | 0.52 | – | – | – | 7.20 | ||||||||||||||||||||||||||||||
10/31/2003 | 5.30 | (0.09 | ) | 1.47 | 1.38 | – | – | – | 6.68 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 9.90 | 0.01 | 0.49 | 0.50 | – | – | – | 10.40 | ||||||||||||||||||||||||||||||
10/31/2006 | 9.17 | – | (h) | 0.81 | 0.81 | – | (0.08 | ) | (0.08 | ) | 9.90 | ||||||||||||||||||||||||||||
Class T | 4/30/2007 | 27.18 | – | (h) | 1.35 | 1.35 | – | – | – | 28.53 | |||||||||||||||||||||||||||||
10/31/2006 | 27.10 | – | (h) | 0.08 | 0.08 | – | – | – | 27.18 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 4.68 | % | $ | 476,438 | 1.48 | % | 1.48 | % | (0.55 | )% (i) | 39 | % | ||||||||||||||||||
10/31/2006 | 11.71 | 500,483 | 1.51 | 1.51 | (0.70 | ) (i) | 19 | ||||||||||||||||||||||||
10/31/2005 | 21.16 | 301,635 | 1.36 | 1.36 | (0.27 | ) (i) | 39 | ||||||||||||||||||||||||
10/31/2004 | 8.45 | 176,851 | 1.50 | 1.50 | (0.90 | ) | 97 | ||||||||||||||||||||||||
10/31/2003 | 24.28 | 56,618 | 1.56 | 1.56 | (0.87 | ) | 55 | ||||||||||||||||||||||||
10/31/2002 | (13.50 | ) | 25,127 | 1.74 | 2.32 | (1.19 | ) | 19 | |||||||||||||||||||||||
Class B | 4/30/2007 | 4.28 | 196,782 | 2.17 | 2.33 | (1.24 | ) (i) | 39 | |||||||||||||||||||||||
10/31/2006 | 11.06 | 222,144 | 2.17 | 2.34 | (1.34 | ) (i) | 19 | ||||||||||||||||||||||||
10/31/2005 | 20.03 | 49,865 | 2.18 | 2.61 | (0.99 | ) (i) | 39 | ||||||||||||||||||||||||
10/31/2004 | 7.68 | 47,928 | 2.20 | 2.72 | (1.62 | ) | 97 | ||||||||||||||||||||||||
10/31/2003 | 23.70 | 4,613 | 2.21 | 2.21 | (1.52 | ) | 55 | ||||||||||||||||||||||||
10/31/2002 | (14.22 | ) | 2,732 | 2.39 | 2.98 | (1.84 | ) | 19 | |||||||||||||||||||||||
Class C | 4/30/2007 | 4.27 | 93,030 | 2.17 | 2.17 | (1.24 | ) (i) | 39 | |||||||||||||||||||||||
10/31/2006 | 11.16 | 97,047 | 2.10 | 2.10 | (1.27 | ) (i) | 19 | ||||||||||||||||||||||||
10/31/2005 | 20.05 | 23,656 | 2.18 | 2.31 | (1.00 | ) (i) | 39 | ||||||||||||||||||||||||
10/31/2004 | 7.78 | 21,808 | 2.20 | 2.55 | (1.63 | ) | 97 | ||||||||||||||||||||||||
10/31/2003 | 26.04 | 1,435 | 2.21 | 2.21 | (1.52 | ) | 55 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 5.05 | 726,846 | 0.80 | 0.80 | 0.13 | 39 | ||||||||||||||||||||||||
10/31/2006 | 8.83 | 714,803 | 0.81 | 0.81 | 0.02 | 19 | |||||||||||||||||||||||||
Class T | 4/30/2007 | 4.97 | 175,394 | 0.95 | 0.95 | (0.03 | ) (i) | 39 | |||||||||||||||||||||||
10/31/2006 | 0.30 | 195,420 | 0.84 | 0.84 | (0.21 | ) (i) | 19 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 7
TA IDEX Transamerica Equity
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Transamerica Equity commenced operations on March 1, 2000. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
Class T was October 27, 2006.
(h) Rounds to less than $0.01.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B, Class C, and Class T, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 8
TA IDEX Transamerica Equity
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Equity (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
On October 27, 2006, the Fund acquired all of the net assets of TA IDEX Janus Growth pursuant to a plan of reorganization. TA IDEX Transamerica Equity is the accounting survivor. The acquisition was accomplished by a tax free exchange of 80,968 shares of the Fund for 35,488 shares of TA IDEX Janus Growth outstanding on October 27, 2006. TA IDEX Janus Growth's net assets at that date, $909,453, including $191,972 unrealized appreciation, were combined with those of the Fund. The aggregate net assets of TA IDEX Transamerica Equity immediately before the acquisition was $743,220, the combined net assets of the Fund immediately after the acquisition was $1,652,673. Shares issued with the acquisition were as follows:
Shares | Amount | ||||||||||
Shares issued with the acquisition | |||||||||||
Class A | 38,237 | $ | 374,725 | ||||||||
Class B | 15,174 | 141,422 | |||||||||
Class C | 5,268 | 49,206 | |||||||||
Class I | 15,085 | 148,883 | |||||||||
Class T | 7,204 | 195,217 |
On October 27, 2006, the Fund acquired all of the net assets of TA IDEX Great Companies – AmericaSM pursuant to a plan of reorganization. TA IDEX Transamerica Equity is the accounting survivor. The acquisition was accomplished by a tax free exchange of 7,831 shares of the Fund for 7,489 shares of TA IDEX Great Companies – AmericaSM outstanding on October 27, 2006. TA IDEX Great Companies – AmericaSM's net assets at that date, $74,593, including $7,478 unrealized appreciation, were combined with those of the Fund. The aggregate net assets of TA IDEX Transamerica Equity immediately before the acquisition was $1,652,673, the combined net assets of the Fund immediately after the acquisition was $2,470,486. Shares issued with the acquisition were as follows:
Shares | Amount | ||||||||||
Shares issued with the acquisition | |||||||||||
Class A | 2,286 | $ | 22,403 | ||||||||
Class B | 3,291 | 30,674 | |||||||||
Class C | 1,381 | 12,898 | |||||||||
Class I | 873 | 8,618 |
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers five classes of shares, Class A, Class B, Class C, Class I and Class T, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I shares commenced operations on November 15, 2005. Class I is only available for investment to certain affiliated asset allocation funds. Class T shares commenced operations on October 27, 2006. Class T shares are not available to new investors. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 9
TA IDEX Transamerica Equity
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $102 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $14, earned by IBT for its services.
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 Fund is 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.
Foreign currency denominated investments: The accounting records of the Fund 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. The 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 10
TA IDEX Transamerica Equity
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
The following schedule represents the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 27,279 | 1.63 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 224,214 | 13.44 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 130,513 | 7.82 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 344,840 | 20.67 | % | ||||||||
Total | $ | 726,846 | 43.56 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.75% of the first $500 million of ANA
0.70% of the next $2 billion of ANA
0.65% of ANA over $2.5 billion
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.17% Expense Limit
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A | ||||||
Class T | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
Underwriter commissions relate to front-end sales charges imposed for Class A and T shares and contingent deferred sales charges from Classes B, C, and certain A share redemptions. For the six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 291 | |||||
Retained by Underwriter | 44 | ||||||
Contingent Deferred Sales Charge | 125 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $1,421 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $427.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $96. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 11
TA IDEX Transamerica Equity
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 645,443 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 771,754 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, net operating losses and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital gains through the periods listed:
Capital Loss Carryforwards | Available through | ||||||
$ | 380,095 | October 31, 2008 | |||||
308,384 | October 31, 2009 | ||||||
94,612 | October 31, 2010 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 12
TA IDEX Transamerica Equity
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Equity (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their decision s 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment perfor mance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Board concluded that TFAI and the Sub-Adviser had achieved consistently strong investment performance, noting that the performance of the Fund was superior to its peers over the past one-, two-, three- and five-year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investme nt companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees dete rmined that while the overall expense ratio of the Fund is slightly above industry average, the Fund's contractual advisory fees are approximately in line with its peers and the Fund's performance has remained strong. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and i ts affiliates, and the Sub-Adviser. The Board expressed its satisfaction with the Fund's competitive level of expenses.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 13
TA IDEX Transamerica Equity (continued)
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board noted that the merger of other TA IDEX funds into the Fund, which took place on October 27, 2006, may increase the Fund's assets, which could allow the Fund to realize fee breakpoints and further economies of scale. The Board also concluded that the management fees appropriately reflect the Fund's current size, long-term performance, the current economic environment for TFAI, and the competitive nature of the investment company market. In addition, the Board noted that it wi ll have the opportunity to periodically reexamine whether the Fund has achieved economies of scale, and the appropriateness of management fees payable to TFAI and fees payable by TFAI to the Sub-Adviser (including whether it would be appropriate to implement additional advisory fee breakpoints) in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requirem ents in particular. 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Equity 14
TA IDEX Transamerica Flexible Income
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,036.90 | 1.43 | % | $ | 7.22 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.70 | 1.43 | 7.15 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,033.80 | 2.06 | 10.39 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.58 | 2.06 | 10.29 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,033.90 | 2.03 | 10.24 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.73 | 2.03 | 10.14 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,040.00 | 0.81 | 4.10 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.78 | 0.81 | 4.06 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At April 30, 2007 (unaudited)
This chart shows the percentage breakdown by asset type of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 1
TA IDEX Transamerica Flexible Income
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
MORTGAGE-BACKED SECURITIES (2.6%) | |||||||||||
American Tower Trust, Series 2007-1A, Class C–144A 5.62%, due 04/15/2037 | $ | 3,590 | $ | 3,602 | |||||||
Crown Castle Towers LLC, Series 2006-1A, Class C–144A 5.47%, due 11/15/2036 | 3,300 | 3,316 | |||||||||
SBA CMBS Trust, Series 2006-1A, Class D–144A 5.85%, due 11/15/2036 | 3,254 | 3,262 | |||||||||
Total Mortgage-Backed Securities (cost: $10,147) | 10,180 | ||||||||||
CORPORATE DEBT SECURITIES (92.9%) | |||||||||||
Aerospace (1.7%) | |||||||||||
Boeing Co. (The) 8.75%, due 08/15/2021 | 2,500 | 3,287 | |||||||||
Embraer Overseas, Ltd., Guaranteed Note–144A 6.38%, due 01/24/2017 | 2,975 | 3,016 | |||||||||
Vought Aircraft Industries, Inc. 8.00%, due 07/15/2011 | 500 | 505 | |||||||||
Agriculture (0.7%) | |||||||||||
Michael Foods, Inc. 8.00%, due 11/15/2013 | 2,575 | 2,652 | |||||||||
Air Transportation (1.8%) | |||||||||||
Continental Airlines, Inc., Series B 6.90%, due 04/19/2022 | 3,000 | 3,037 | |||||||||
FedEx Corp. 9.65%, due 06/15/2012 | 3,200 | 3,805 | |||||||||
Amusement & Recreation Services (1.1%) | |||||||||||
Harrah's Operating Co., Inc. 5.50%, due 07/01/2010 | 3,450 | 3,390 | |||||||||
Virgin River Casino Corp./RBG LLC/B&BB, Inc. 9.00%, due 01/15/2012 | 1,000 | 1,045 | |||||||||
Automotive (0.4%) | |||||||||||
General Motors Corp. 7.13%, due 07/15/2013 † | 1,500 | 1,386 | |||||||||
Automotive Dealers (0.7%) | |||||||||||
Asbury Automotive Group, Inc., Senior Subordinated Note–144A 7.63%, due 03/15/2017 | 1,000 | 1,005 | |||||||||
United Auto Group, Inc., Senior Subordinated Note–144A 7.75%, due 12/15/2016 | 1,750 | 1,776 | |||||||||
Automotive Service Stations (0.5%) | |||||||||||
Petro Stopping Centers, LP / Petro Financial Corp. 9.00%, due 02/15/2012 | 2,000 | 2,080 |
Principal | Value | ||||||||||
Beverages (1.8%) | |||||||||||
Brown-Forman Corp. 5.20%, due 04/01/2012 | $ | 3,600 | $ | 3,589 | |||||||
FBG Finance, Ltd.–144A 5.88%, due 06/15/2035 | 3,725 | 3,451 | |||||||||
Business Credit Institutions (1.4%) | |||||||||||
Pemex Finance, Ltd. 9.03%, due 02/15/2011 | 5,080 | 5,442 | |||||||||
Business Services (1.1%) | |||||||||||
Cardtronics, Inc., Senior Subordinated Note 9.25%, due 08/15/2013 | 1,500 | 1,586 | |||||||||
FTI Consulting, Inc., Senior Note 7.75%, due 10/01/2016 | 1,900 | 1,983 | |||||||||
iPayment, Inc., Senior Subordinated Note 9.75%, due 05/15/2014 | 825 | 859 | |||||||||
Chemicals & Allied Products (3.1%) | |||||||||||
Cytec Industries, Inc. 6.75%, due 03/15/2008 | 2,700 | 2,715 | |||||||||
ICI Wilmington, Inc. 4.38%, due 12/01/2008 | 3,000 | 2,955 | |||||||||
Ineos Group Holdings PLC–144A 8.50%, due 02/15/2016 † | 1,375 | 1,330 | |||||||||
Lubrizol Corp. 4.63%, due 10/01/2009 | 2,000 | 1,972 | |||||||||
Mosaic Global Holdings, Inc., Senior Note–144A 7.63%, due 12/01/2016 | 1,500 | 1,601 | |||||||||
Nalco Co. 7.75%, due 11/15/2011 | 1,000 | 1,030 | |||||||||
Reichhold Industries, Inc., Senior Note–144A 9.00%, due 08/15/2014 | 650 | 677 | |||||||||
Commercial Banks (11.4%) | |||||||||||
ACE Cash Express, Inc., Senior Note–144A 10.25%, due 10/01/2014 | 690 | 712 | |||||||||
Barclays Bank PLC 6.28%, due 12/15/2034 (a)(b) | 3,500 | 3,419 | |||||||||
HBOS PLC–144A 5.92%, due 10/01/2015 (a)(b) | 3,000 | 2,953 | |||||||||
HSBC Capital Funding, LP/Jersey Channel Islands–144A 9.55%, due 06/30/2010 (a)(b) | 1,500 | 1,683 | |||||||||
HSBK Europe BV–144A 7.75%, due 05/13/2013 | 900 | 944 | |||||||||
ICICI Bank, Ltd., Subordinated Note–144A 6.38%, due 04/30/2022 †(b) | 3,802 | 3,801 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 2
TA IDEX Transamerica Flexible Income
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Banks (continued) | |||||||||||
Lloyds TSB Group PLC–144A 6.27%, due 11/14/2016 (a)(b) | $ | 2,900 | $ | 2,885 | |||||||
Shinsei Finance Cayman, Ltd.–144A 6.42%, due 07/20/2016 (a)(b) | 3,000 | 3,034 | |||||||||
Sumitomo Mitsui Banking–144A 5.63%, due 10/15/2015 (a)(b) | 3,965 | 3,911 | |||||||||
Suntrust Preferred Capital I 5.85%, due 12/15/2011 (a)(b) | 2,640 | 2,683 | |||||||||
USB Capital IX 6.19%, due 04/15/2011 (a)(b) | 4,015 | 4,123 | |||||||||
VTB Capital SA for Vneshtorgbank–144A 5.96%, due 08/01/2008 * | 3,500 | 3,503 | |||||||||
Wachovia Capital Trust III 5.80%, due 03/15/2011 (a)(b) | 4,100 | 4,161 | |||||||||
Wells Fargo Capital X 5.95%, due 12/15/2036 | 2,825 | 2,766 | |||||||||
ZFS Finance USA Trust I–144A 6.45%, due 12/15/2065 (b) | 4,000 | 4,046 | |||||||||
Communication (1.7%) | |||||||||||
Comcast Cable Communications 6.88%, due 06/15/2009 | 3,760 | 3,888 | |||||||||
Echostar DBS Corp., Senior Note 7.13%, due 02/01/2016 | 1,800 | 1,874 | |||||||||
Kabel Deutschland GmbH 10.63%, due 07/01/2014 | 750 | 838 | |||||||||
Construction (1.9%) | |||||||||||
Centex Corp., Senior Note 4.75%, due 01/15/2008 | 3,990 | 3,977 | |||||||||
DR Horton, Inc., Senior Note 6.88%, due 05/01/2013 | 3,500 | 3,578 | |||||||||
Department Stores (0.8%) | |||||||||||
Neiman-Marcus Group, Inc. 9.00%, due 10/15/2015 | 1,650 | 1,819 | |||||||||
10.38%, due 10/15/2015 † | 1,000 | 1,124 | |||||||||
Electric Services (3.8%) | |||||||||||
AES Gener SA 7.50%, due 03/25/2014 † | 2,000 | 2,152 | |||||||||
DPL, Inc., Senior Note 8.00%, due 03/31/2009 | 5,000 | 5,243 | |||||||||
PPL Capital Funding, Guaranteed Note 6.70%, due 03/30/2067 (b) | 4,093 | 4,096 | |||||||||
PSEG Funding Trust 5.38%, due 11/16/2007 | 3,250 | 3,246 |
Principal | Value | ||||||||||
Electronic Components & Accessories (0.7%) | |||||||||||
NXP BV, Senior Note–144A 7.88%, due 10/15/2014 | $ | 1,650 | $ | 1,716 | |||||||
9.50%, due 10/15/2015 | 1,000 | 1,050 | |||||||||
Food & Kindred Products (0.5%) | |||||||||||
ConAgra Foods, Inc,–144A 5.82%, due 06/15/2017 | 1,575 | 1,574 | |||||||||
ConAgra Foods, Inc. 9.75%, due 03/01/2021 | 325 | 423 | |||||||||
Food Stores (0.5%) | |||||||||||
Stater Brothers Holdings, Inc. 8.13%, due 06/15/2012 † | 2,000 | 2,060 | |||||||||
Gas Production & Distribution (2.3%) | |||||||||||
Kinder Morgan Energy Partners, LP 7.75%, due 03/15/2032 | 3,450 | 3,926 | |||||||||
MarkWest Energy Partners, LP / MarkWest Energy Finance Corp., Senior Note 8.50%, due 07/15/2016 | 2,050 | 2,153 | |||||||||
Southern Union Co., Senior Note 6.15%, due 08/16/2008 | 2,975 | 3,000 | |||||||||
Holding & Other Investment Offices (6.5%) | |||||||||||
Ameriprise Financial, Inc. 7.52%, due 06/01/2066 (b) | 6,160 | 6,686 | |||||||||
Healthcare Realty Trust, Inc. REIT, Senior Note 8.13%, due 05/01/2011 | 2,650 | 2,881 | |||||||||
iStar Financial, Inc. REIT 4.88%, due 01/15/2009 | 6,000 | 5,956 | |||||||||
Kimco Realty Corp., Series C REIT 3.95%, due 08/05/2008 | 2,825 | 2,770 | |||||||||
Noble Group, Ltd.–144A 6.63%, due 03/17/2015 | 1,000 | 955 | |||||||||
Rouse Co., LP/TRC Co-Issuer, Inc. REIT, Senior Note–144A 6.75%, due 05/01/2013 | 1,500 | 1,531 | |||||||||
Susser Holdings LLC, Senior Note 10.63%, due 12/15/2013 | 1,412 | 1,550 | |||||||||
United Dominion Realty Trust, Inc. REIT, Series E, (MTN) 4.50%, due 03/03/2008 | 3,000 | 2,998 | |||||||||
Hotels & Other Lodging Places (2.0%) | |||||||||||
Host Marriott, LP REIT 7.13%, due 11/01/2013 | 2,000 | 2,060 | |||||||||
Las Vegas Sands Corp. 6.38%, due 02/15/2015 | 1,500 | 1,461 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 3
TA IDEX Transamerica Flexible Income
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Hotels & Other Lodging Places (continued) | |||||||||||
Starwood Hotels & Resorts Worldwide, Inc. 7.88%, due 05/01/2012 | $ | 2,500 | $ | 2,681 | |||||||
Station Casinos, Inc. 6.88%, due 03/01/2016 | 500 | 470 | |||||||||
Wyndham Worldwide Corp.–144A 6.00%, due 12/01/2016 | 1,270 | 1,260 | |||||||||
Industrial Machinery & Equipment (1.0%) | |||||||||||
Cummins Engine Co., Inc. 5.65%, due 03/01/2098 | 2,000 | 1,532 | |||||||||
Douglas Dynamics LLC–144A 7.75%, due 01/15/2012 | 915 | 842 | |||||||||
Goodman Global Holding Co., Inc. 7.88%, due 12/15/2012 † | 1,500 | 1,511 | |||||||||
Insurance (4.0%) | |||||||||||
AXA SA–144A 6.38%, due 12/14/2036 (a)(b) | 3,500 | 3,407 | |||||||||
Metlife, Inc. 6.40%, due 12/15/2036 * | 2,665 | 2,660 | |||||||||
Oil Insurance, Ltd.–144A 7.56%, due 06/30/2011 (a)(b) | 4,750 | 4,986 | |||||||||
Reinsurance Group of America 6.75%, due 12/15/2065 (b) | 2,730 | 2,742 | |||||||||
St. Paul Travelers Cos. (The), Inc. 6.75%, due 06/20/2036 | 1,557 | 1,698 | |||||||||
Lumber & Other Building Materials (1.2%) | |||||||||||
CRH America, Inc. 5.30%, due 10/15/2013 | 3,500 | 3,441 | |||||||||
Masonite Corp., Senior Subordinated Note–144A 11.00%, due 04/06/2015 † | 1,325 | 1,219 | |||||||||
Lumber & Wood Products (0.2%) | |||||||||||
Masonite International Corp., Senior Subordinated Note–144A 11.00%, due 04/06/2015 | 1,000 | 920 | |||||||||
Medical Instruments & Supplies (0.3%) | |||||||||||
PTS Acquisition Corp., Senior Note–144A, (PIK) 9.50%, due 04/15/2015 | 1,100 | 1,125 | |||||||||
Metal Mining (2.0%) | |||||||||||
Freeport-McMoRan Copper & Gold, Inc., Senior Note 8.38%, due 04/01/2017 | 1,375 | 1,504 | |||||||||
Phelps Dodge Corp. 9.50%, due 06/01/2031 | 847 | 1,087 | |||||||||
Vale Overseas, Ltd., Guaranteed Note 6.25%, due 01/23/2017 | 4,995 | 5,122 |
Principal | Value | ||||||||||
Mortgage Bankers & Brokers (6.2%) | |||||||||||
Erac USA Finance Co., Guaranteed Note–144A 7.35%, due 06/15/2008 | $ | 5,000 | $ | 5,081 | |||||||
Galaxy Entertainment Finance Co., Ltd., Senior Note–144A 9.88%, due 12/15/2012 | 1,400 | 1,533 | |||||||||
Glencore Funding LLC–144A 6.00%, due 04/15/2014 | 3,950 | 3,944 | |||||||||
ILFC E-Capital Trust II–144A 6.25%, due 12/21/2065 (b) | 4,000 | 4,099 | |||||||||
Innophos Investments Holdings, Inc. 13.37%, due 02/15/2015 | 999 | 1,029 | |||||||||
KAR Holdings, Inc., Senior Subordinated Note–144A 10.00%, due 05/01/2015 | 350 | 363 | |||||||||
Mangrove Bay Pass-Through Trust–144A 6.10%, due 07/15/2033 (b) | 2,845 | 2,795 | |||||||||
Momentive Performance Materials, Inc., Senior Note–144A 9.75%, due 12/01/2014 | 2,000 | 2,115 | |||||||||
MUFG Capital Finance 1, Ltd. 6.35%, due 07/25/2016 (a)(b) | 2,360 | 2,410 | |||||||||
Petroplus Finance, Ltd., Guaranteed Senior Note–144A 7.00%, due 05/01/2017 | 1,000 | 1,009 | |||||||||
Motion Pictures (2.4%) | |||||||||||
Time Warner, Inc. 9.13%, due 01/15/2013 | 5,000 | 5,868 | |||||||||
7.63%, due 04/15/2031 | 3,000 | 3,393 | |||||||||
Oil & Gas Extraction (2.7%) | |||||||||||
Chesapeake Energy Corp. 6.38%, due 06/15/2015 | 1,000 | 1,001 | |||||||||
Compagnie Generale de Geophysique-Veritas, Senior Note 7.75%, due 05/15/2017 | 1,000 | 1,058 | |||||||||
Gazprom International SA–144A 7.20%, due 02/01/2020 | 2,957 | 3,127 | |||||||||
OPTI Canada, Inc., Senior Note–144A 8.25%, due 12/15/2014 | 1,800 | 1,904 | |||||||||
PetroHawk Energy Corp., Senior Note 9.13%, due 07/15/2013 | 1,300 | 1,393 | |||||||||
Sabine Pass LNG, LP, Senior Secured Note–144A 7.50%, due 11/30/2016 | 1,000 | 1,025 | |||||||||
Stone Energy Corp. 8.25%, due 12/15/2011 | 1,000 | 995 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 4
TA IDEX Transamerica Flexible Income
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Paper & Allied Products (0.4%) | |||||||||||
Bowater Canada Finance Corp. 7.95%, due 11/15/2011 | $ | 1,500 | $ | 1,466 | |||||||
Paper & Paper Products (0.6%) | |||||||||||
Exopack Holding Corp., Senior Note 11.25%, due 02/01/2014 | 2,000 | 2,165 | |||||||||
Paperboard Containers & Boxes (0.3%) | |||||||||||
Graham Packaging Co., Inc. 9.88%, due 10/15/2014 † | 1,250 | 1,294 | |||||||||
Personal Credit Institutions (1.1%) | |||||||||||
Ford Motor Credit Co. 9.81%, due 04/15/2012 * | 2,000 | 2,138 | |||||||||
General Motors Acceptance Corp. 5.13%, due 05/09/2008 | 1,275 | 1,260 | |||||||||
SLM Corp. 5.40%, due 10/25/2011 | 975 | 935 | |||||||||
Petroleum Refining (2.0%) | |||||||||||
Enterprise Products Operating, LP 8.38%, due 08/01/2066 (b) | 3,700 | 4,097 | |||||||||
Valero Logistics Operations, LP, Guaranteed Senior Note 6.88%, due 07/15/2012 | 3,690 | 3,884 | |||||||||
Primary Metal Industries (1.4%) | |||||||||||
Aleris International, Inc.–144A 10.00%, due 12/15/2016 | 1,500 | 1,566 | |||||||||
Belden CDT, Inc., Senior Subordinated Note–144A 7.00%, due 03/15/2017 | 1,000 | 1,023 | |||||||||
Metals USA Holdings Corp., Senior Note–144A 11.36%, due 01/15/2012 * | 650 | 644 | |||||||||
PNA Group, Inc., Senior Note–144A 10.75%, due 09/01/2016 | 2,025 | 2,228 | |||||||||
Printing & Publishing (2.0%) | |||||||||||
News America Holdings, Inc. 7.75%, due 12/01/2045 | 3,400 | 3,873 | |||||||||
RH Donnelley Corp., Senior Note 8.88%, due 01/15/2016 | 1,400 | 1,519 | |||||||||
Valassis Communications, Inc., Senior Note–144A 8.25%, due 03/01/2015 | 2,500 | 2,456 |
Principal | Value | ||||||||||
Radio & Television Broadcasting (1.8%) | |||||||||||
Chancellor Media Corp. 8.00%, due 11/01/2008 | $ | 3,695 | $ | 3,826 | |||||||
Grupo Televisa SA 6.63%, due 03/18/2025 | 2,000 | 2,121 | |||||||||
Umbrella Acquisition–144A 9.75%, due 03/15/2015 † | 1,000 | 1,004 | |||||||||
Railroads (0.7%) | |||||||||||
BNSF Funding Trust I, Guaranteed Note 6.61%, due 12/15/2055 (b) | 2,850 | 2,723 | |||||||||
Real Estate (1.3%) | |||||||||||
Colonial Realty, LP 7.00%, due 07/14/2007 | 5,075 | 5,090 | |||||||||
Restaurants (1.2%) | |||||||||||
Aramark Corp., Senior Note–144A 8.50%, due 02/01/2015 | 2,000 | 2,093 | |||||||||
NPC International, Inc., Senior Subordinated Note 9.50%, due 05/01/2014 | 1,000 | 1,050 | |||||||||
Sbarro, Inc., Senior Note–144A 10.38%, due 02/01/2015 | 1,400 | 1,467 | |||||||||
Retail Trade (0.5%) | |||||||||||
Michaels Stores, Inc., Senior Subordinated Note–144A 11.38%, due 11/01/2016 † | 1,795 | 1,975 | |||||||||
Rubber & Misc. Plastic Products (0.6%) | |||||||||||
NTK Holdings, Inc. 0.00%, due 03/01/2014 †(c) | 1,500 | 1,125 | |||||||||
Titan International, Inc., Senior Note–144A 8.00%, due 01/15/2012 | 1,200 | 1,242 | |||||||||
Savings Institutions (1.1%) | |||||||||||
Sovereign Capital Trust VI, Guaranteed Note 7.91%, due 06/13/2036 | 3,700 | 4,125 | |||||||||
Security & Commodity Brokers (3.9%) | |||||||||||
Countrywide Financial Corp., Series A 4.50%, due 06/15/2010 | 4,000 | 3,901 | |||||||||
E*Trade Financial Corp. 8.00%, due 06/15/2011 | 2,000 | 2,103 | |||||||||
JP Morgan Chase Capital XVIII 6.95%, due 08/17/2036 | 1,000 | 1,070 | |||||||||
Lazard Group, Senior Note 7.13%, due 05/15/2015 | 3,000 | 3,177 | |||||||||
SB Treasury Co. LLC–144A 9.40%, due 06/30/2008 (a)(b) | 1,470 | 1,534 | |||||||||
Western Union Co. (The) 5.93%, due 10/01/2016 | 3,335 | 3,359 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 5
TA IDEX Transamerica Flexible Income
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Stone, Clay & Glass Products (1.0%) | |||||||||||
Lafarge SA 7.13%, due 07/15/2036 | $ | 2,600 | $ | 2,842 | |||||||
Owens Brockway Glass Container, Inc. 6.75%, due 12/01/2014 | 1,000 | 1,006 | |||||||||
Telecommunications (3.1%) | |||||||||||
AT&T Wireless Services, Inc. 8.13%, due 05/01/2012 | 3,600 | 4,052 | |||||||||
Nextel Communications, Inc., Series D 7.38%, due 08/01/2015 | 3,500 | 3,621 | |||||||||
Verizon Global Funding Corp. 7.75%, due 12/01/2030 | 2,455 | 2,874 | |||||||||
West Corp.–144A 11.00%, due 10/15/2016 † | 1,500 | 1,631 | |||||||||
Transportation & Public Utilities (0.8%) | |||||||||||
Hertz Corp., Senior Subordinated Note 10.50%, due 01/01/2016 | 2,600 | 2,964 | |||||||||
Water Transportation (1.7%) | |||||||||||
Royal Caribbean Cruises, Ltd. 8.75%, due 02/02/2011 | 5,000 | 5,489 | |||||||||
US Shipping Partners LP/US Shipping Finance Corp., Senior Note 13.00%, due 08/15/2014 | 925 | 982 | |||||||||
Wholesale Trade Nondurable Goods (1.0%) | |||||||||||
Alliance One International, Inc., Senior Note–144A 8.50%, due 05/15/2012 | 2,000 | 2,065 | |||||||||
Supervalu, Inc., Senior Note 7.50%, due 11/15/2014 | 1,800 | 1,881 | |||||||||
Total Corporate Debt Securities (cost: $359,930) | 362,672 | ||||||||||
CONVERTIBLE BOND (0.6%) | |||||||||||
Computer & Office Equipment (0.3%) | |||||||||||
Scientific Games Corp. 0.75%, due 12/01/2024 | 1,000 | 1,239 | |||||||||
Electronic Components & Accessories (0.3%) | |||||||||||
Intel Corp., Junior Subordinated Note 2.95%, due 12/15/2035 † | 1,000 | 910 | |||||||||
Total Convertible Bond (cost: $1,954) | 2,149 | ||||||||||
Shares | Value | ||||||||||
CONVERTIBLE PREFERRED STOCKS (0.1%) | |||||||||||
Business Credit Institutions (0.1%) | |||||||||||
Sovereign Capital Trust II ‡ | 9,500 | $ | 467 | ||||||||
Total Convertible Preferred Stocks (cost: $475) | 467 |
Shares | Value | ||||||||||
PREFERRED STOCKS (1.0%) | |||||||||||
Holding & Other Investment Offices (0.5%) | |||||||||||
Saul Centers, Inc. REIT | 1,850 | $ | 47 | ||||||||
Tanger Factory Outlet Centers REIT | 66,666 | 1,696 | |||||||||
Telecommunications (0.5%) | |||||||||||
Centaur Funding Corp.–144A ‡ | 1,661 | 1,958 | |||||||||
Total Preferred Stocks (cost: $3,866) | 3,701 | ||||||||||
COMMON STOCKS (0.0%) | |||||||||||
Telecommunications (0.0%) | |||||||||||
Versatel Telecom International NV Warrants, Expires 5/15/2008 ‡m | 75 | — | o | ||||||||
Total Common Stocks (cost: $0) | — | o | |||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (4.9%) | |||||||||||
Debt (4.9%) | |||||||||||
Bank Notes (0.3%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 601 | $ | 601 | |||||||
5.27%, due 06/18/2007 * | 601 | 601 | |||||||||
Commercial Paper (1.1%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 240 | 240 | |||||||||
CAFCO LLC-144A 5.29%, due 05/31/2007 | 233 | 233 | |||||||||
Charta LLC-144A 5.30%, due 05/09/2007 | 160 | 160 | |||||||||
5.29%, due 06/13/2007 | 120 | 120 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 120 | 120 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 120 | 120 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 120 | 120 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 | 120 | 120 | |||||||||
5.28%, due 05/24/2007 | 120 | 120 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 240 | 240 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 235 | 235 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 240 | 240 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 6
TA IDEX Transamerica Flexible Income
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | $ | 240 | $ | 240 | |||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 | 476 | 476 | |||||||||
5.30%, due 05/29/2007 | 120 | 120 | |||||||||
5.29%, due 05/31/2007 | 120 | 120 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 | 120 | 120 | |||||||||
5.29%, due 05/17/2007 | 120 | 120 | |||||||||
5.28%, due 06/01/2007 | 120 | 120 | |||||||||
5.29%, due 06/19/2007 | 159 | 159 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 180 | 180 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 120 | 120 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 240 | 240 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 120 | 120 | |||||||||
Euro Dollar Overnight (0.6%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 120 | 120 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 241 | 241 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 241 | 241 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 241 | 241 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 241 | 241 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 241 | 241 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 241 | 241 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 120 | 120 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 241 | 241 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 456 | 456 |
Principal | Value | ||||||||||
Euro Dollar Terms (1.8%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | $ | 241 | $ | 241 | |||||||
Bank of Montreal 5.28%, due 05/18/2007 | 120 | 120 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 168 | 168 | |||||||||
Barclays 5.29%, due 05/07/2007 | 241 | 241 | |||||||||
5.30%, due 05/16/2007 | 241 | 241 | |||||||||
5.29%, due 05/21/2007 | 120 | 120 | |||||||||
5.30%, due 06/04/2007 | 120 | 120 | |||||||||
5.29%, due 06/08/2007 | 241 | 241 | |||||||||
Calyon 5.30%, due 05/17/2007 | 120 | 120 | |||||||||
5.31%, due 05/24/2007 | 241 | 241 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 | 361 | 361 | |||||||||
5.28%, due 05/29/2007 | 120 | 120 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 241 | 241 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 241 | 241 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 | 361 | 361 | |||||||||
5.28%, due 05/25/2007 | 361 | 361 | |||||||||
5.30%, due 06/25/2007 | 241 | 241 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 361 | 361 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 | 241 | 241 | |||||||||
5.30%, due 05/09/2007 | 120 | 120 | |||||||||
5.31%, due 05/25/2007 | 241 | 241 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 120 | 120 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 241 | 241 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 241 | 241 | |||||||||
UBS AG 5.28%, due 06/01/2007 | 241 | 241 | |||||||||
5.29%, due 06/12/2007 | 481 | 481 | |||||||||
5.29%, due 06/15/2007 | 361 | 361 | |||||||||
5.29%, due 06/18/2007 | 601 | 601 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 7
TA IDEX Transamerica Flexible Income
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Repurchase Agreements (1.1%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $666 on 05/01/2007 | $ | 666 | $ | 666 | |||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,646 on 05/01/2007 | 2,646 | 2,646 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,159 on 05/01/2007 | 1,159 | 1,159 | |||||||||
Total Security Lending Collateral (cost: $19,287) | 19,287 | ||||||||||
Total Investment Securities (cost: $395,659) # | $ | 398,456 |
NOTES TO SCHEDULE OF INVESTMENTS:
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $18,776.
(a) The security has a perpetual maturity. The date shown is the next call date.
(b) Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of April 30, 2007.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
(c) NTK Holdings, Inc. has a coupon rate of 0.00% until 09/01/2009, thereafter the coupon rate will be 10.75%.
‡ Non-income producing.
†† Cash collateral for the Repurchase Agreements, valued at $4,586, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
o Value is less than $1.
m Securities valued as determined in good faith in accordance with procedures established by the Fund's Board of Trustees.
# Aggregate cost for federal income tax purposes is $395,659. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $5,316 and $2,519, respectively. Net unrealized appreciation for tax purposes is $2,797 .
DEFINITIONS:
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 April 30, 2007, these securities aggregated $124,577 or 31.9% of the net assets of the Fund.
MTN Medium-Term Note
PIK Payment In-Kind
REIT Real Estate Investment Trust
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 8
TA IDEX Transamerica Flexible Income
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $395,659) (including securities loaned of $18,776) | $ | 398,456 | |||||
Cash | 10,083 | ||||||
Receivables: | |||||||
Investment securities sold | 3,535 | ||||||
Shares of beneficial interest sold | 241 | ||||||
Interest | 7,332 | ||||||
Dividends | 31 | ||||||
Dividend reclaims receivable | 3 | ||||||
Other | 17 | ||||||
419,698 | |||||||
Liabilities: | |||||||
Investment securities purchased | 9,615 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 144 | ||||||
Management and advisory fees | 235 | ||||||
Distribution and service fees | 32 | ||||||
Transfer agent fees | 13 | ||||||
Administration fees | 6 | ||||||
Payable for collateral for securities on loan | 19,287 | ||||||
Other | 49 | ||||||
29,381 | |||||||
Net Assets | $ | 390,317 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 391,430 | |||||
Undistributed (accumulated) net investment income (loss) | 1,160 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities | (5,070 | ) | |||||
Net unrealized appreciation (depreciation) on investment securities | 2,797 | ||||||
Net Assets | $ | 390,317 | |||||
Net Assets by Class: | |||||||
Class A | $ | 16,621 | |||||
Class B | 21,049 | ||||||
Class C | 10,457 | ||||||
Class I | 342,190 | ||||||
Shares Outstanding: | |||||||
Class A | 1,751 | ||||||
Class B | 2,216 | ||||||
Class C | 1,104 | ||||||
Class I | 35,898 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 9.49 | |||||
Class B | 9.50 | ||||||
Class C | 9.47 | ||||||
Class I | 9.53 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 9.96 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 10,420 | |||||
Dividends | 150 | ||||||
Income from loaned securities–net | 16 | ||||||
10,586 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,187 | ||||||
Distribution and service fees: | |||||||
Class A | 29 | ||||||
Class B | 111 | ||||||
Class C | 58 | ||||||
Transfer agent fees: | |||||||
Class A | 23 | ||||||
Class B | 28 | ||||||
Class C | 13 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 11 | ||||||
Custody fees | 18 | ||||||
Administration fees | 32 | ||||||
Legal fees | 3 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 5 | ||||||
Registration fees | 19 | ||||||
Other | 3 | ||||||
Total expenses | 1,550 | ||||||
Net Investment Income (Loss) | 9,036 | ||||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | 878 | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | 2,359 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 3,237 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 12,273 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 9
TA IDEX Transamerica Flexible Income
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 9,036 | $ | 14,063 | |||||||
Net realized gain (loss) from investment securities | 878 | (4,820 | ) | ||||||||
Change in unrealized appreciation (depreciation) on investment securities | 2,359 | 6,532 | |||||||||
12,273 | 15,775 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (412 | ) | (969 | ) | |||||||
Class B | (482 | ) | (1,067 | ) | |||||||
Class C | (255 | ) | (471 | ) | |||||||
Class I | (7,527 | ) | (10,865 | ) | |||||||
(8,676 | ) | (13,372 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 1,921 | 1,843 | |||||||||
Class B | 960 | 1,579 | |||||||||
Class C | 1,486 | 6,215 | |||||||||
Class I | 112,375 | 118,332 | |||||||||
116,742 | 127,969 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 353 | 846 | |||||||||
Class B | 388 | 851 | |||||||||
Class C | 193 | 372 | |||||||||
Class I | 7,527 | 10,865 | |||||||||
8,461 | 12,934 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (3,046 | ) | (126,306 | ) | |||||||
Class B | (3,869 | ) | (11,445 | ) | |||||||
Class C | (3,879 | ) | (7,662 | ) | |||||||
Class I | (1,830 | ) | (20,664 | ) | |||||||
(12,624 | ) | (166,077 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (a) | – | (a) | |||||||
Class B | – | (a) | 1 | ||||||||
Class C | – | (a) | – | ||||||||
– | (a) | 1 | |||||||||
Automatic conversions: | |||||||||||
Class A | 193 | 203 | |||||||||
Class B | (193 | ) | (203 | ) | |||||||
– | – | ||||||||||
112,579 | (25,173 | ) | |||||||||
Net increase (decrease) in net assets | 116,176 | (22,770 | ) | ||||||||
Net Assets: | |||||||||||
Beginning of period | 274,141 | 296,911 | |||||||||
End of period | $ | 390,317 | $ | 274,141 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 1,160 | $ | 800 |
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 203 | 198 | |||||||||
Class B | 101 | 171 | |||||||||
Class C | 158 | 676 | |||||||||
Class I | 11,826 | 12,656 | |||||||||
12,288 | 13,701 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 38 | 92 | |||||||||
Class B | 41 | 92 | |||||||||
Class C | 20 | 40 | |||||||||
Class I | 794 | 1,172 | |||||||||
893 | 1,396 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (322 | ) | (13,562 | ) | |||||||
Class B | (409 | ) | (1,232 | ) | |||||||
Class C | (411 | ) | (825 | ) | |||||||
Class I | (192 | ) | (2,202 | ) | |||||||
(1,334 | ) | (17,821 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 20 | 22 | |||||||||
Class B | (20 | ) | (22 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (61 | ) | (13,250 | ) | |||||||
Class B | (287 | ) | (991 | ) | |||||||
Class C | (233 | ) | (109 | ) | |||||||
Class I | 12,428 | 11,626 | |||||||||
11,847 | (2,724 | ) |
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 10
TA IDEX Transamerica Flexible Income
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Return of Capital | Total Distributions | Value, End of Period | ||||||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 9.38 | $ | 0.24 | $ | 0.10 | $ | 0.34 | $ | (0.23 | ) | $ | – | $ | – | $ | (0.23 | ) | $ | 9.49 | ||||||||||||||||||||||
10/31/2006 | 9.31 | 0.43 | 0.05 | 0.48 | (0.41 | ) | – | – | (0.41 | ) | 9.38 | ||||||||||||||||||||||||||||||||
10/31/2005 | 9.68 | 0.37 | (h) | (0.32 | ) (h) | 0.05 | (0.38 | ) (h) | – | (0.04 | ) (h) | (0.42 | ) | 9.31 | |||||||||||||||||||||||||||||
10/31/2004 | 10.21 | 0.38 | (h) | 0.14 | (h) | 0.52 | (0.38 | ) (h) | (0.63 | ) | (0.04 | ) (h) | (1.05 | ) | 9.68 | ||||||||||||||||||||||||||||
10/31/2003 | 9.94 | 0.36 | 0.27 | 0.63 | (0.36 | ) | – | – | (0.36 | ) | 10.21 | ||||||||||||||||||||||||||||||||
10/31/2002 | 9.99 | 0.40 | 0.02 | 0.42 | (0.41 | ) | (0.06 | ) | – | (0.47 | ) | 9.94 | |||||||||||||||||||||||||||||||
Class B | 4/30/2007 | 9.39 | 0.21 | 0.10 | 0.31 | (0.20 | ) | – | – | (0.20 | ) | 9.50 | |||||||||||||||||||||||||||||||
10/31/2006 | 9.32 | 0.38 | 0.06 | 0.44 | (0.37 | ) | – | – | (0.37 | ) | 9.39 | ||||||||||||||||||||||||||||||||
10/31/2005 | 9.68 | 0.29 | (h) | (0.32 | ) (h) | (0.03 | ) | (0.29 | ) (h) | – | (0.04 | ) (h) | (0.33 | ) | 9.32 | ||||||||||||||||||||||||||||
10/31/2004 | 10.20 | 0.32 | (h) | 0.15 | (h) | 0.47 | (0.32 | ) (h) | (0.63 | ) | (0.04 | ) (h) | (0.99 | ) | 9.68 | ||||||||||||||||||||||||||||
10/31/2003 | 9.94 | 0.30 | 0.25 | 0.55 | (0.29 | ) | – | – | (0.29 | ) | 10.20 | ||||||||||||||||||||||||||||||||
10/31/2002 | 9.99 | 0.34 | 0.02 | 0.36 | (0.35 | ) | (0.06 | ) | – | (0.41 | ) | 9.94 | |||||||||||||||||||||||||||||||
Class C | 4/30/2007 | 9.36 | 0.21 | 0.10 | 0.31 | (0.20 | ) | – | – | (0.20 | ) | 9.47 | |||||||||||||||||||||||||||||||
10/31/2006 | 9.30 | 0.39 | 0.04 | 0.43 | (0.37 | ) | – | – | (0.37 | ) | 9.36 | ||||||||||||||||||||||||||||||||
10/31/2005 | 9.67 | 0.29 | (h) | (0.33 | ) (h) | (0.04 | ) | (0.29 | ) (h) | – | (0.04 | ) (h) | (0.33 | ) | 9.30 | ||||||||||||||||||||||||||||
10/31/2004 | 10.20 | 0.33 | (h) | 0.13 | (h) | 0.46 | (0.32 | ) (h) | (0.63 | ) | (0.04 | ) (h) | (0.99 | ) | 9.67 | ||||||||||||||||||||||||||||
10/31/2003 | 9.98 | 0.29 | 0.22 | 0.51 | (0.29 | ) | – | – | (0.29 | ) | 10.20 | ||||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 9.42 | 0.28 | 0.09 | 0.37 | (0.26 | ) | – | – | (0.26 | ) | 9.53 | |||||||||||||||||||||||||||||||
10/31/2006 | 9.35 | 0.50 | 0.05 | 0.55 | (0.48 | ) | – | – | (0.48 | ) | 9.42 | ||||||||||||||||||||||||||||||||
10/31/2005 | 9.68 | 0.40 | (h) | (0.32 | ) (h) | 0.08 | (0.37 | ) (h) | – | (0.04 | ) (h) | (0.41 | ) | 9.35 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
Net Assets, | Ratio of Expenses | Net Investment | |||||||||||||||||||||||||||||
For the | End of | to Average | Income (Loss) | Portfolio | |||||||||||||||||||||||||||
Period | Total | Period | Net Assets (a) | to Average | Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 3.69 | % | $ | 16,621 | 1.43 | % | 1.43 | % | 5.19 | % (i) | 34 | % | ||||||||||||||||||
10/31/2006 | 5.34 | 17,005 | 1.47 | 1.47 | 4.64 | (i) | 110 | ||||||||||||||||||||||||
10/31/2005 | 0.47 | 140,203 | 1.25 | 1.25 | 3.85 | (h)(i) | 58 | ||||||||||||||||||||||||
10/31/2004 | 5.72 | 80,201 | 1.43 | 1.43 | 3.89 | (h) | 169 | ||||||||||||||||||||||||
10/31/2003 | 6.39 | 87,898 | 1.49 | 1.50 | 3.56 | 164 | |||||||||||||||||||||||||
10/31/2002 | 4.45 | 61,815 | 1.62 | 1.65 | 4.23 | 245 | |||||||||||||||||||||||||
Class B | 4/30/2007 | 3.38 | 21,049 | 2.06 | 2.06 | 4.55 | (i) | 34 | |||||||||||||||||||||||
10/31/2006 | 4.81 | 23,501 | 2.08 | 2.08 | 4.08 | (i) | 110 | ||||||||||||||||||||||||
10/31/2005 | (0.36 | ) | 32,560 | 2.08 | 2.08 | 3.02 | (h)(i) | 58 | |||||||||||||||||||||||
10/31/2004 | 5.13 | 45,338 | 2.03 | 2.03 | 3.25 | (h) | 169 | ||||||||||||||||||||||||
10/31/2003 | 5.59 | 69,502 | 2.14 | 2.15 | 2.91 | 164 | |||||||||||||||||||||||||
10/31/2002 | 3.83 | 67,220 | 2.27 | 2.30 | 3.58 | 245 | |||||||||||||||||||||||||
Class C | 4/30/2007 | 3.39 | 10,457 | 2.03 | 2.03 | 4.58 | (i) | 34 | |||||||||||||||||||||||
10/31/2006 | 4.74 | 12,519 | 2.07 | 2.07 | 4.15 | 110 | |||||||||||||||||||||||||
10/31/2005 | (0.40 | ) | 13,439 | 2.11 | 2.11 | 2.99 | (h)(i) | 58 | |||||||||||||||||||||||
10/31/2004 | 5.02 | 19,675 | 2.10 | 2.10 | 3.37 | (h) | 169 | ||||||||||||||||||||||||
10/31/2003 | 5.16 | 8,178 | 2.14 | 2.15 | 2.91 | 164 | |||||||||||||||||||||||||
Class I | 4/30/2007 | 4.00 | 342,190 | 0.81 | 0.81 | 5.85 | 34 | ||||||||||||||||||||||||
10/31/2006 | 6.04 | 221,116 | 0.86 | 0.86 | 5.35 | 110 | |||||||||||||||||||||||||
10/31/2005 | 0.85 | 110,709 | 0.85 | 0.85 | 4.25 | (h) | 58 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 11
TA IDEX Transamerica Flexible Income
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before waivers and reimbursements by the investment adviser.
(g) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 8, 2004.
(h) The Fund has restated its financial highlights. (See Note 6)
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 12
TA IDEX Transamerica Flexible Income
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Flexible Income (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $7, earned by IBT for its services.
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.
Dividend income 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.
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 Fund is 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.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 13
TA IDEX Transamerica Flexible Income
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation – Conservative Portfolio | $ | 33,181 | 8.50 | % | |||||||
TA IDEX Asset Allocation – Moderate Portfolio | 70,089 | 17.96 | % | ||||||||
TA IDEX Asset Allocation – Moderate Growth Portfolio | 58,497 | 14.99 | % | ||||||||
Asset Allocation – Conservative Portfolio | 60,231 | 15.43 | % | ||||||||
Asset Allocation – Moderate Growth Portfolio | 87,908 | 22.52 | % | ||||||||
Asset Allocation – Moderate Portfolio | 32,284 | 8.27 | % | ||||||||
Total | $ | 342,190 | 87.67 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
From November 1, 2006 to December 31, 2006:
0.80% of the first $100 million of ANA
0.775% of the next $150 million of ANA
0.675% of ANA over $250 million
From January 1, 2007 on:
0.775 of the first $100 million of ANA
0.75 of the next $150 million of ANA
0.675 of the next $100 million of ANA
0.625 of ANA over $350 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.50% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There are no amounts available for recapture at April 30, 2007.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 23 | |||||
Retained by Underwriter | 5 | ||||||
Contingent Deferred Sales Charge | 19 |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 14
TA IDEX Transamerica Flexible Income
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $60 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $17.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $15. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 203,834 | |||||
U.S. Government | 12,551 | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 95,199 | ||||||
U.S. Government | 12,538 |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital gains through the periods listed:
Capital Loss Carryforwards | Available through | ||||||
$ | 890 | October 31, 2013 | |||||
5,058 | October 31, 2014 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 15
TA IDEX Transamerica Flexible Income
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6. RESTATEMENT
The Fund's previously issued financial statements presented accretion of discount incorrectly for the years ended October 31, 2005 and October 31, 2004. This was due to the security Raytheon Co. accreting discount based on an incorrect maturity value. The impact of correcting the maturity value of Raytheon Co. was to reduce interest income on the Statement of Operations with an offsetting adjustment to unrealized gain (loss). The financial highlights have also been restated accordingly. This restatement had no effect on the Fund's net assets, net asset value per share or total increase (decrease) in net assets from operations during the periods.
This restatement changed the financial statements as follows:
Financial Highlights For the year ended October 31, 2005 | (As previously reported) | (As restated) | |||||||||
Net investment income (loss) per share: | |||||||||||
Class A | 0.41 | 0.37 | |||||||||
Class B | 0.34 | 0.29 | |||||||||
Class C | 0.33 | 0.29 | |||||||||
Class I | 0.44 | 0.40 | |||||||||
Net realized and unrealized gain (loss) per share: | |||||||||||
Class A | (0.36 | ) | (0.32 | ) | |||||||
Class B | (0.37 | ) | (0.32 | ) | |||||||
Class C | (0.37 | ) | (0.33 | ) | |||||||
Class I | (0.36 | ) | (0.32 | ) | |||||||
Distributions from net investment income per share: | |||||||||||
Class A | (0.42 | ) | (0.38 | ) | |||||||
Class B | (0.33 | ) | (0.29 | ) | |||||||
Class C | (0.33 | ) | (0.29 | ) | |||||||
Class I | (0.41 | ) | (0.37 | ) | |||||||
Distributions of return of capital per share: | |||||||||||
Class A | – | (0.04 | ) | ||||||||
Class B | – | (0.04 | ) | ||||||||
Class C | – | (0.04 | ) | ||||||||
Class I | – | (0.04 | ) | ||||||||
Ratio of Net Investment Income (Loss) to Average Net Assets | |||||||||||
Class A | 4.33 | % | 3.85 | % | |||||||
Class B | 3.50 | % | 3.02 | % | |||||||
Class C | 3.47 | % | 2.99 | % | |||||||
Class I | 4.73 | % | 4.25 | % |
Financial Highlights For the year ended October 31, 2004 | (As previously reported) | (As restated) | |||||||||
Net investment income (loss) per share: | |||||||||||
Class A | 0.41 | 0.38 | |||||||||
Class B | 0.35 | 0.32 | |||||||||
Class C | 0.36 | 0.33 | |||||||||
Net realized and unrealized gain (loss) per share: | |||||||||||
Class A | 0.11 | 0.14 | |||||||||
Class B | 0.12 | 0.15 | |||||||||
Class C | 0.10 | 0.13 | |||||||||
Distributions from net investment income per share: | |||||||||||
Class A | (0.42 | ) | (0.38 | ) | |||||||
Class B | (0.36 | ) | (0.32 | ) | |||||||
Class C | (0.36 | ) | (0.32 | ) | |||||||
Distributions of return of capital per share: | |||||||||||
Class A | – | (0.04 | ) | ||||||||
Class B | – | (0.04 | ) | ||||||||
Class C | – | (0.04 | ) | ||||||||
Ratio of Net Investment Income (Loss) to Average Net Assets | |||||||||||
Class A | 4.25 | % | 3.89 | % | |||||||
Class B | 3.61 | % | 3.25 | % | |||||||
Class C | 3.74 | % | 3.37 | % |
NOTE 7. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 16
TA IDEX Transamerica Flexible Income
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Flexible Income (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the I nvestment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, and TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment perform ance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees noted that TFAI and the Sub-Adviser generally had achieved superior investment performance over the one-, two- and ten-year trailing periods compared to the Fund's peers, although the Fund's performance over the three- and five-year trailing periods was lower than the median compared to its peers. The Board noted, however, that the Fund's performance over the three-year and longer periods was partially attributable to a prior Sub-Adviser's investment team. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or pro cured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and very competitive with other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees dete rmined that the management fees and overall expense ratio of the Fund are relatively high when compared to a comparable group of its peers,
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 17
TA IDEX Transamerica Flexible Income (continued)
but noted that TFAI and the Sub-Adviser have agreed to fee reductions, which could help lower the Fund's expenses in the future. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and th e Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that asset-based breakpoints in the Fund's advisory and sub-advisory fee schedules appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows, and noted that TFAI and the Sub-Adviser recently agreed to fee reductions. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI and the Sub-Adviser, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the i mpact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Flexible Income 18
TA IDEX Transamerica Growth Opportunities
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period(a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,056.20 | 1.75 | % | $ | 8.92 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,016.12 | 1.75 | 8.75 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,054.30 | 2.40 | 12.22 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,012.89 | 2.40 | 11.98 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,052.90 | 2.40 | 12.22 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,012.89 | 2.40 | 11.98 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,061.70 | 0.89 | 4.55 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.38 | 0.89 | 4.46 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 1
TA IDEX Transamerica Growth Opportunities
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (98.7%) | |||||||||||
Apparel & Accessory Stores (2.7%) | |||||||||||
Nordstrom, Inc. | 80,815 | $ | 4,438 | ||||||||
Under Armour, Inc.–Class A ‡† | 35,950 | 1,815 | |||||||||
Urban Outfitters, Inc. ‡ | 57,800 | 1,489 | |||||||||
Business Services (0.5%) | |||||||||||
Lamar Advertising Co. † | 23,500 | 1,418 | |||||||||
Commercial Banks (1.0%) | |||||||||||
Wintrust Financial Corp. | 65,725 | 2,825 | |||||||||
Computer & Data Processing Services (11.2%) | |||||||||||
Activision, Inc. ‡† | 110,475 | 2,210 | |||||||||
Alliance Data Systems Corp. ‡† | 121,550 | 7,738 | |||||||||
Cerner Corp. ‡† | 153,400 | 8,167 | |||||||||
Checkfree Corp. ‡† | 270,710 | 9,112 | |||||||||
CoStar Group, Inc. ‡† | 35,000 | 1,708 | |||||||||
Intuit, Inc. ‡ | 97,100 | 2,762 | |||||||||
NetFlix, Inc. ‡† | 35,000 | 776 | |||||||||
Computer & Office Equipment (2.5%) | |||||||||||
Sandisk Corp. ‡† | 55,900 | 2,429 | |||||||||
VeriFone Holdings, Inc. ‡† | 136,325 | 4,811 | |||||||||
Educational Services (2.3%) | |||||||||||
Strayer Education, Inc. † | 53,350 | 6,634 | |||||||||
Electronic Components & Accessories (2.2%) | |||||||||||
Microchip Technology, Inc. | 160,365 | 6,469 | |||||||||
Engineering & Management Services (4.3%) | |||||||||||
Jacobs Engineering Group, Inc. ‡ | 248,472 | 12,530 | |||||||||
Entertainment (2.1%) | |||||||||||
International Game Technology | 161,750 | 6,169 | |||||||||
Food Stores (2.4%) | |||||||||||
Whole Foods Market, Inc. † | 150,245 | 7,030 | |||||||||
Health Services (2.9%) | |||||||||||
Covance, Inc. ‡ | 136,910 | 8,283 | |||||||||
Holding & Other Investment Offices (3.1%) | |||||||||||
Host Hotels & Resorts, Inc. REIT † | 158,000 | 4,051 | |||||||||
Kilroy Realty Corp. REIT | 27,150 | 2,061 | |||||||||
Plum Creek Timber Co., Inc. REIT | 69,000 | 2,739 | |||||||||
Hotels & Other Lodging Places (7.5%) | |||||||||||
Hilton Hotels Corp. | 407,230 | 13,846 | |||||||||
Las Vegas Sands Corp. ‡ | 91,180 | 7,768 | |||||||||
Industrial Machinery & Equipment (9.6%) | |||||||||||
Cameron International Corp. ‡ | 157,000 | 10,137 | |||||||||
Joy Global, Inc. † | 85,650 | 4,336 | |||||||||
Kennametal, Inc. | 186,985 | 13,194 |
Shares | Value | ||||||||||
Instruments & Related Products (4.9%) | |||||||||||
Sirf Technology Holdings, Inc. ‡† | 240,500 | $ | 5,835 | ||||||||
Trimble Navigation, Ltd. ‡ | 293,300 | 8,412 | |||||||||
Medical Instruments & Supplies (7.9%) | |||||||||||
Intuitive Surgical, Inc. ‡† | 61,165 | 7,931 | |||||||||
Techne Corp. ‡† | 156,746 | 9,243 | |||||||||
Varian Medical Systems, Inc. ‡† | 134,815 | 5,691 | |||||||||
Motion Pictures (2.3%) | |||||||||||
Macrovision Corp. ‡† | 276,050 | 6,700 | |||||||||
Motor Vehicles, Parts & Supplies (0.9%) | |||||||||||
BorgWarner, Inc. | 31,200 | 2,431 | |||||||||
Pharmaceuticals (1.0%) | |||||||||||
Allergan, Inc. | 23,810 | 2,886 | |||||||||
Research & Testing Services (0.1%) | |||||||||||
Gen-Probe, Inc. ‡ | 7,420 | 379 | |||||||||
Restaurants (0.8%) | |||||||||||
PF Chang's China Bistro, Inc. ‡† | 62,610 | 2,395 | |||||||||
Security & Commodity Brokers (16.9%) | |||||||||||
Ameriprise Financial, Inc. | 132,595 | 7,885 | |||||||||
BlackRock, Inc. † | 83,475 | 12,496 | |||||||||
Chicago Mercantile Exchange † | 14,000 | 7,235 | |||||||||
Cohen & Steers, Inc. † | 99,845 | 5,123 | |||||||||
Nymex Holdings, Inc. ‡† | 71,810 | 9,314 | |||||||||
T. Rowe Price Group, Inc. | 138,700 | 6,891 | |||||||||
Telecommunications (3.6%) | |||||||||||
MetroPCS Communications, Inc. ‡ | 50,000 | 1,403 | |||||||||
NeuStar, Inc.–Class A ‡† | 307,100 | 8,832 | |||||||||
Transportation & Public Utilities (3.6%) | |||||||||||
CH Robinson Worldwide, Inc. † | 65,500 | 3,502 | |||||||||
Expeditors International of Washington, Inc. | 164,500 | 6,876 | |||||||||
Wholesale Trade Durable Goods (2.4%) | |||||||||||
Grainger (W.W.), Inc. | 84,500 | 6,981 | |||||||||
Total Common Stocks (cost: $249,061) | 285,386 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (22.9%) | |||||||||||
Debt (22.9%) | |||||||||||
Bank Notes (1.4%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 2,069 | $ | 2,069 | |||||||
5.27%, due 06/18/2007 * | 2,069 | 2,069 | |||||||||
Commercial Paper (5.0%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 827 | 827 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 2
TA IDEX Transamerica Growth Opportunities
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | $ | 802 | $ | 802 | |||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 551 414 | 551 414 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 414 | 414 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 414 | 414 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 414 | 414 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 414 414 | 414 414 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 827 | 827 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 810 | 810 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 827 | 827 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 827 | 827 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 1,638 414 414 | 1,638 414 414 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 414 414 414 545 | 414 414 414 545 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 621 | 621 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 414 | 414 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 827 | 827 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 414 | 414 | |||||||||
Euro Dollar Overnight (2.8%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 414 | 414 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 827 | 827 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 827 | 827 |
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | $ | 827 | $ | 827 | |||||||
National Australia Bank 5.30%, due 05/01/2007 | 827 | 827 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 827 | 827 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 827 | 827 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 414 | 414 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 827 | 827 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 1,569 | 1,569 | |||||||||
Euro Dollar Terms (8.4%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 827 | 827 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 414 | 414 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 579 | 579 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 827 828 414 414 828 | 827 828 414 414 828 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 414 828 | 414 828 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 1,241 414 | 1,241 414 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 828 | 828 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 828 | 828 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 1,241 1,241 828 | 1,241 1,241 828 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 1,241 | 1,241 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 828 414 828 | 828 414 828 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 3
TA IDEX Transamerica Growth Opportunities
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | $ | 414 | $ | 414 | |||||||
Swedbank AB 5.30%, due 05/11/2007 | 828 | 828 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 828 | 828 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 828 1,655 1,241 2,069 | 828 1,655 1,241 2,069 |
Principal | Value | ||||||||||
Repurchase Agreements (5.3%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $2,292 on 05/01/2007 | $ | 2,291 | $ | 2,291 | |||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $9,104 on 05/01/2007 | 9,103 | 9,103 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $3,988 on 05/01/2007 | 3,987 | 3,987 | |||||||||
Total Security Lending Collateral (cost: $66,357) | 66,357 | ||||||||||
Total Investment Securities (cost: $315,418) # | $ | 351,743 |
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $64,471.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $15,778, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $315,418. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $46,116 and $9,791, respectively. Net unrealized appreciation for tax purposes is $36,325.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $12,416 or 4.3% of the net assets of the Fund.
REIT Real Estate Investment Trust
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 4
TA IDEX Transamerica Growth Opportunities
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $315,418) (including securities loaned of $64,471) | $ | 351,743 | |||||
Cash | 2,101 | ||||||
Receivables: | |||||||
Investment securities sold | 8,225 | ||||||
Shares of beneficial interest sold | 176 | ||||||
Interest | 17 | ||||||
Income from loaned securities | 5 | ||||||
Dividends | 1 | ||||||
Other | 20 | ||||||
362,288 | |||||||
Liabilities: | |||||||
Investment securities purchased | 5,894 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 376 | ||||||
Management and advisory fees | 184 | ||||||
Distribution and service fees | 84 | ||||||
Transfer agent fees | 88 | ||||||
Administration fees | 5 | ||||||
Payable for collateral for securities on loan | 66,357 | ||||||
Other | 120 | ||||||
73,108 | |||||||
Net Assets | $ | 289,180 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 458,678 | |||||
Undistributed (accumulated) net investment income (loss) | (962 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities | (204,861 | ) | |||||
Net unrealized appreciation (depreciation) on investment securities | 36,325 | ||||||
Net Assets | $ | 289,180 | |||||
Net Assets by Class: | |||||||
Class A | $ | 51,070 | |||||
Class B | 58,867 | ||||||
Class C | 19,609 | ||||||
Class I | 159,634 | ||||||
Shares Outstanding: | |||||||
Class A | 5,776 | ||||||
Class B | 7,053 | ||||||
Class C | 2,346 | ||||||
Class I | 17,831 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 8.84 | |||||
Class B | 8.35 | ||||||
Class C | 8.36 | ||||||
Class I | 8.95 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 9.35 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends | $ | 1,055 | |||||
Interest | 170 | ||||||
Income from loaned securities-net | 162 | ||||||
1,387 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,298 | ||||||
Distribution and service fees: | |||||||
Class A | 95 | ||||||
Class B | 316 | ||||||
Class C | 105 | ||||||
Transfer agent fees: | |||||||
Class A | 160 | ||||||
Class B | 199 | ||||||
Class C | 57 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 61 | ||||||
Custody fees | 20 | ||||||
Administration fees | 33 | ||||||
Legal fees | 4 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 7 | ||||||
Registration fees | 30 | ||||||
Other | 3 | ||||||
Total expenses | 2,398 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (23 | ) | |||||
Class B | (39 | ) | |||||
Class C | (4 | ) | |||||
Total reimbursed expenses | (66 | ) | |||||
Net expenses | 2,332 | ||||||
Net Investment Income (Loss) | (945 | ) | |||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | 54,892 | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | (33,109 | ) | |||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 21,783 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 20,838 |
(b) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 5
TA IDEX Transamerica Growth Opportunities
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | (945 | ) | $ | (2,271 | ) | |||||
Net realized gain (loss) from investment securities | 54,892 | 46,326 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities | (33,109 | ) | (19,089 | ) | |||||||
20,838 | 24,966 | ||||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 3,254 | 13,592 | |||||||||
Class B | 1,513 | 5,530 | |||||||||
Class C | 630 | 4,993 | |||||||||
Class I | 6,033 | 205,074 | |||||||||
11,430 | 229,189 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (12,339 | ) | (221,734 | ) | |||||||
Class B | (11,722 | ) | (17,905 | ) | |||||||
Class C | (3,848 | ) | (10,382 | ) | |||||||
Class I | (74,328 | ) | (1,565 | ) | |||||||
(102,237 | ) | (251,586 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (b) | – | (b) | |||||||
Class B | – | (b) | – | (b) | |||||||
Class C | – | (b) | – | (b) | |||||||
– | (b) | – | (b) | ||||||||
Automatic conversions: | |||||||||||
Class A | 466 | 538 | |||||||||
Class B | (466 | ) | (538 | ) | |||||||
– | – | ||||||||||
(90,807 | ) | (22,397 | ) | ||||||||
Net increase (decrease) in net assets | (69,969 | ) | 2,569 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 359,149 | 356,580 | |||||||||
End of period | $ | 289,180 | $ | 359,149 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (962 | ) | $ | (17 | ) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 372 | 1,620 | |||||||||
Class B | 183 | 684 | |||||||||
Class C | 77 | 622 | |||||||||
Class I | 673 | 25,652 | |||||||||
1,305 | 28,578 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (1,414 | ) | (27,610 | ) | |||||||
Class B | (1,418 | ) | (2,243 | ) | |||||||
Class C | (464 | ) | (1,283 | ) | |||||||
Class I | (8,307 | ) | (187 | ) | |||||||
(11,603 | ) | (31,323 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 53 | 64 | |||||||||
Class B | (56 | ) | (68 | ) | |||||||
(3 | ) | (4 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (989 | ) | (25,926 | ) | |||||||
Class B | (1,291 | ) | (1,627 | ) | |||||||
Class C | (387 | ) | (661 | ) | |||||||
Class I | (7,634 | ) | 25,465 | ||||||||
(10,301 | ) | (2,749 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 6
TA IDEX Transamerica Growth Opportunities
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 8.36 | $ | (0.04 | ) | $ | 0.52 | $ | 0.48 | $ | – | $ | – | $ | – | $ | 8.84 | |||||||||||||||||||||
10/31/2006 | 7.85 | (0.07 | ) | 0.58 | 0.51 | – | – | – | 8.36 | ||||||||||||||||||||||||||||||
10/31/2005 | 6.61 | (0.02 | ) | 1.26 | 1.24 | – | – | – | 7.85 | ||||||||||||||||||||||||||||||
10/31/2004 | 5.95 | (0.03 | ) | 0.69 | 0.66 | – | – | – | 6.61 | ||||||||||||||||||||||||||||||
10/31/2003 | 4.81 | (0.06 | ) | 1.20 | 1.14 | – | – | – | 5.95 | ||||||||||||||||||||||||||||||
10/31/2002 | 4.81 | (0.06 | ) | 0.06 | – | – | – | – | 4.81 | ||||||||||||||||||||||||||||||
Class B | 4/30/2007 | 7.92 | (0.06 | ) | 0.49 | 0.43 | – | – | – | 8.35 | |||||||||||||||||||||||||||||
10/31/2006 | 7.48 | (0.13 | ) | 0.57 | 0.44 | – | – | – | 7.92 | ||||||||||||||||||||||||||||||
10/31/2005 | 6.37 | (0.09 | ) | 1.20 | 1.11 | – | – | – | 7.48 | ||||||||||||||||||||||||||||||
10/31/2004 | 5.79 | (0.09 | ) | 0.67 | 0.58 | – | – | – | 6.37 | ||||||||||||||||||||||||||||||
10/31/2003 | 4.70 | (0.09 | ) | 1.18 | 1.09 | – | – | – | 5.79 | ||||||||||||||||||||||||||||||
10/31/2002 | 4.73 | (0.11 | ) | 0.08 | (0.03 | ) | – | – | – | 4.70 | |||||||||||||||||||||||||||||
Class C | 4/30/2007 | 7.94 | (0.06 | ) | 0.48 | 0.42 | – | – | – | 8.36 | |||||||||||||||||||||||||||||
10/31/2006 | 7.49 | (0.12 | ) | 0.57 | 0.45 | – | – | – | 7.94 | ||||||||||||||||||||||||||||||
10/31/2005 | 6.38 | (0.09 | ) | 1.20 | 1.11 | – | – | – | 7.49 | ||||||||||||||||||||||||||||||
10/31/2004 | 5.79 | (0.10 | ) | 0.69 | 0.59 | – | – | – | 6.38 | ||||||||||||||||||||||||||||||
10/31/2003 | 4.62 | (0.09 | ) | 1.26 | 1.17 | – | – | – | 5.79 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 8.43 | – | (h) | 0.52 | 0.52 | – | – | – | 8.95 | |||||||||||||||||||||||||||||
10/31/2006 | 7.99 | – | (h) | 0.44 | 0.44 | – | – | – | 8.43 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the | Net Assets, End of | Ratio of Expenses to Average | Net Investment Income (Loss) | Portfolio | |||||||||||||||||||||||||||
Period | Total | Period | Net Assets(a) | to Average | Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 5.62 | % | $ | 51,070 | 1.75 | % | 1.84 | % | (0.91 | )%(i) | 46 | % | ||||||||||||||||||
10/31/2006 | 6.62 | 56,588 | 1.72 | 1.72 | (0.89 | )(i) | 59 | ||||||||||||||||||||||||
10/31/2005 | 18.76 | 256,559 | 1.41 | 1.41 | (0.30 | )(i) | 34 | ||||||||||||||||||||||||
10/31/2004 | 11.09 | 230,633 | 1.43 | 1.43 | (0.47 | ) | 43 | ||||||||||||||||||||||||
10/31/2003 | 23.70 | 147,340 | 1.75 | 2.21 | (1.11 | ) | 97 | ||||||||||||||||||||||||
10/31/2002 | 0.05 | 12,687 | 1.74 | 2.53 | (1.35 | ) | 32 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 5.43 | 58,867 | 2.40 | 2.52 | (1.56 | )(i) | 46 | |||||||||||||||||||||||
10/31/2006 | 5.88 | 66,098 | 2.40 | 2.46 | (1.57 | )(i) | 59 | ||||||||||||||||||||||||
10/31/2005 | 17.43 | 74,589 | 2.40 | 2.61 | (1.29 | )(i) | 34 | ||||||||||||||||||||||||
10/31/2004 | 10.02 | 77,869 | 2.40 | 2.64 | (1.44 | ) | 43 | ||||||||||||||||||||||||
10/31/2003 | 23.19 | 52,492 | 2.41 | 2.87 | (1.76 | ) | 97 | ||||||||||||||||||||||||
10/31/2002 | (0.70 | ) | 5,897 | 2.39 | 3.18 | (2.00 | ) | 32 | |||||||||||||||||||||||
Class C | 4/30/2007 | 5.29 | 19,609 | 2.40 | 2.44 | (1.56 | )(i) | 46 | |||||||||||||||||||||||
10/31/2006 | 6.01 | 21,688 | 2.38 | 2.38 | (1.54 | )(i) | 59 | ||||||||||||||||||||||||
10/31/2005 | 17.40 | 25,432 | 2.40 | 2.54 | (1.29 | )(i) | 34 | ||||||||||||||||||||||||
10/31/2004 | 10.19 | 28,103 | 2.40 | 2.65 | (1.58 | ) | 43 | ||||||||||||||||||||||||
10/31/2003 | 25.32 | 483 | 2.42 | 2.89 | (1.78 | ) | 97 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 6.17 | 159,634 | 0.89 | 0.89 | (0.04 | ) | 46 | |||||||||||||||||||||||
10/31/2006 | 5.51 | 214,775 | 0.88 | 0.88 | (0.06 | ) | 59 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 7
TA IDEX Transamerica Growth Opportunities
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Transamerica Growth Opportunities commenced operations on March 1, 2000. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Rounds to less than $(0.01).
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 8
TA IDEX Transamerica Growth Opportunities
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Growth Opportunities (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B share will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $24 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $69, earned by IBT for its services.
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.
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
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 9
TA IDEX Transamerica Growth Opportunities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
the Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 7,081 | 2.45 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 43,695 | 15.11 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 28,891 | 9.99 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 79,967 | 27.65 | % | ||||||||
Total | $ | 159,634 | 55.20 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $250 million of ANA
0.75% of the next $250 million of ANA
0.70% of ANA over $500 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.40% Expense Limit
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 55 | |||||
Retained by Underwriter | 8 | ||||||
Contingent Deferred Sales Charge | 46 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $398 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds,
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 10
TA IDEX Transamerica Growth Opportunities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $19.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $21. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 146,671 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 227,607 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, net operating losses and capital loss carryforwards.
The capital loss carryforwards are available to offset future realized capital gains through the periods listed:
Capital Loss Carryforwards | Available through | ||||||
$ | 148,499 | October 31, 2008 | |||||
99,199 | October 31, 2009 | ||||||
4,618 | October 31, 2010 | ||||||
7,437 | October 31, 2011 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 11
TA IDEX Transamerica Growth Opportunities
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 12
TA IDEX Transamerica Growth Opportunities
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Growth Opportunities (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, and TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment perform ance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees noted that TFAI and the Sub-Adviser generally had achieved very strong investment performance over the one-, two-, three- and five-year trailing periods compared to the Fund's peers. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and very competitive with other investmen t companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees dete rmined that the management fees and overall expense ratio of the Fund are relatively high in comparison to a comparable group of its peers, but justified in light of the Fund's consistently strong performance, among other reasons. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 13
TA IDEX Transamerica Growth Opportunities (continued)
statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that asset-based breakpoints in the Fund's advisory fee schedule appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requirem ents in particular. 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Growth Opportunities 14
TA IDEX Transamerica High-Yield Bond
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,059.20 | 1.16 | % | $ | 5.92 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,019.04 | 1.16 | 5.81 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,055.70 | 1.84 | 9.38 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,015.67 | 1.84 | 9.20 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,055.80 | 1.84 | 9.38 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,015.67 | 1.84 | 9.20 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,062.60 | 0.65 | 3.32 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,021.57 | 0.65 | 3.26 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Bond Credit Quality (Moody Ratings)
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by Bond Credit Quality of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 1
TA IDEX Transamerica High-Yield Bond
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
(continued)
(unaudited)
Credit Rating | Description | ||||||
B1 | Moderate vulnerability to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments. | ||||||
B2 | More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments. | ||||||
B3 | Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small. | ||||||
Ba1 | Moderate vulnerability in the near-term but faces major ongoing uncertainties in the event of adverse business, financial and economic conditions. | ||||||
Ba2 | Vulnerable in the near-term but faces major ongoing uncertainties in the event of adverse business, financial and economic conditions. | ||||||
Ba3 | More vulnerable in the near-term but faces major ongoing uncertainties in the event of adverse business, financial and economic conditions. | ||||||
Baa1 | Medium grade obligations. Interest payments and principal security are adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over great length of time. | ||||||
Baa2 | Medium grade obligations. Interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over great length of time. | ||||||
Baa3 | Medium grade obligations. Interest payments and principal security are not as adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over great length of time. | ||||||
Caa1 | Highly vulnerable may be in default on their policyholder obligations or there may be present elements of danger with respect to payment of policyholder obligations and claims. | ||||||
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 2
TA IDEX Transamerica High-Yield Bond
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
CORPORATE DEBT SECURITIES (93.1%) | |||||||||||
Agriculture (0.9%) | |||||||||||
Dole Food Co., Inc., Senior Note 7.25%, due 06/15/2010 | $ | 3,500 | $ | 3,434 | |||||||
Amusement & Recreation Services (1.4%) | |||||||||||
Caesars Entertainment, Inc., Senior Subordinated Note 7.88%, due 03/15/2010 | 2,000 | 2,095 | |||||||||
Mohegan Tribal Gaming Authority 6.13%, due 02/15/2013 | 2,000 | 1,960 | |||||||||
Speedway Motorsports, Inc. 6.75%, due 06/01/2013 | 1,200 | 1,197 | |||||||||
Apparel Products (1.0%) | |||||||||||
Levi Strauss & Co. 9.75%, due 01/15/2015 | 3,500 | 3,841 | |||||||||
Automotive (2.0%) | |||||||||||
General Motors Acceptance Corp. 6.75%, due 12/01/2014 | 3,800 | 3,747 | |||||||||
General Motors Corp. 7.20%, due 01/15/2011 † | 4,000 | 3,820 | |||||||||
Beverages (0.3%) | |||||||||||
Cott Beverages USA, Inc., Guaranteed Senior Subordinated Note 8.00%, due 12/15/2011 | 1,250 | 1,281 | |||||||||
Business Services (2.1%) | |||||||||||
R.H. Donnelley Finance Corp I–144A 10.88%, due 12/15/2012 | 2,000 | 2,165 | |||||||||
United Rentals North America, Inc. 6.50%, due 02/15/2012 | 1,750 | 1,767 | |||||||||
Universal Compression, Inc. 7.25%, due 05/15/2010 | 2,000 | 2,025 | |||||||||
Universal Hospital Services, Inc. 10.13%, due 11/01/2011 | 2,000 | 2,143 | |||||||||
Chemicals & Allied Products (4.6%) | |||||||||||
DEL Laboratories, Inc., Senior Note 10.36%, due 11/01/2011 | 2,485 | 2,575 | |||||||||
Equistar Chemicals, LP/Equistar Funding Corp. 10.13%, due 09/01/2008 | 1,000 | 1,055 | |||||||||
10.63%, due 05/01/2011 | 2,000 | 2,110 | |||||||||
Huntsman International LLC 11.63%, due 10/15/2010 | 965 | 1,040 | |||||||||
Huntsman International LLC–144A 7.38%, due 01/01/2015 † | 2,000 | 2,070 | |||||||||
Ineos Group Holdings PLC–144A 8.50%, due 02/15/2016 † | 1,750 | 1,693 |
Principal | Value | ||||||||||
Chemicals & Allied Products (continued) | |||||||||||
Lyondell Chemical Co. 10.50%, due 06/01/2013 | $ | 1,000 | $ | 1,096 | |||||||
Nova Chemicals Corp., Senior Note 8.50%, due 11/15/2013 * | 3,600 | 3,663 | |||||||||
VeraSun Energy Corp., Senior Secured Note 9.88%, due 12/15/2012 | 2,500 | 2,637 | |||||||||
Communication (6.4%) | |||||||||||
Charter Communications Operating LLC/ Charter Communications Operating Capital Corp.–144A 8.38%, due 04/30/2014 | 8,500 | 8,914 | |||||||||
CSC Holdings, Inc., Senior Note 6.75%, due 04/15/2012 | 1,000 | 999 | |||||||||
7.63%, due 07/15/2018 | 4,000 | 4,080 | |||||||||
Echostar DBS Corp. 6.38%, due 10/01/2011 | 4,190 | 4,232 | |||||||||
Intelsat Corp., Senior Note 9.00%, due 06/15/2016 | 1,500 | 1,644 | |||||||||
Intelsat Subsidiary Holding Co., Ltd. 8.63%, due 01/15/2015 | 3,500 | 3,741 | |||||||||
PanAmSat Corp. 9.00%, due 08/15/2014 | 1,300 | 1,404 | |||||||||
Communications Equipment (1.7%) | |||||||||||
Intelsat Bermuda, Ltd., Senior Note 9.25%, due 06/15/2016 | 2,500 | 2,750 | |||||||||
L-3 Communications Corp. 7.63%, due 06/15/2012 | 1,000 | 1,036 | |||||||||
6.13%, due 07/15/2013 | 2,000 | 1,975 | |||||||||
6.13%, due 01/15/2014 | 1,000 | 985 | |||||||||
Computer & Data Processing Services (1.7%) | |||||||||||
Seagate Technology HDD Holdings 6.38%, due 10/01/2011 | 2,300 | 2,291 | |||||||||
6.80%, due 10/01/2016 | 2,125 | 2,106 | |||||||||
Unisys Corp. 8.00%, due 10/15/2012 | 2,000 | 2,025 | |||||||||
Electric Services (3.6%) | |||||||||||
AES Corp. (The)–144A 8.75%, due 05/15/2013 | 5,000 | 5,331 | |||||||||
Edison Mission Energy, Senior Note 7.50%, due 06/15/2013 | 2,710 | 2,818 | |||||||||
NRG Energy, Inc. 7.25%, due 02/01/2014 | 3,750 | 3,881 | |||||||||
NRG Energy, Inc., Senior Note 7.38%, due 01/15/2017 | 2,000 | 2,072 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 3
TA IDEX Transamerica High-Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Electric, Gas & Sanitary Services (0.8%) | |||||||||||
Allied Waste North America, Inc. 7.88%, due 04/15/2013 | $ | 2,970 | $ | 3,104 | |||||||
Electronic & Other Electric Equipment (0.6%) | |||||||||||
Jarden Corp., Senior Subordinated Note 7.50%, due 05/01/2017 | 2,260 | 2,314 | |||||||||
Electronic Components & Accessories (3.7%) | |||||||||||
Amkor Technology, Inc. 7.75%, due 05/15/2013 | 2,125 | 2,104 | |||||||||
Freescale Semiconductor, Inc.–144A 10.13%, due 12/15/2016 † | 4,850 | 4,898 | |||||||||
NXP BV, Senior Note–144A 8.11%, due 10/15/2013 | 4,200 | 4,336 | |||||||||
STATS ChipPAC, Ltd. 6.75%, due 11/15/2011 | 2,750 | 2,846 | |||||||||
Fabricated Metal Products (1.2%) | |||||||||||
Alliant Techsystems, Inc. 6.75%, due 04/01/2016 | 4,590 | 4,647 | |||||||||
Food & Kindred Products (0.8%) | |||||||||||
Del Monte Corp. 8.63%, due 12/15/2012 | 3,000 | 3,150 | |||||||||
Gas Production & Distribution (4.8%) | |||||||||||
Colorado Interstate Gas Co. 5.95%, due 03/15/2015 | 3,125 | 3,156 | |||||||||
Colorado Interstate Gas Co., Senior Note 6.80%, due 11/15/2015 | 1,400 | 1,493 | |||||||||
Dynegy-Roseton/Danskammer, Series 2001, Class B 7.67%, due 11/08/2016 | 2,000 | 2,130 | |||||||||
Kinder Morgan Finance Co. 5.70%, due 01/05/2016 | 7,500 | 7,183 | |||||||||
Transcontinental Gas Pipe Line Corp. 8.88%, due 07/15/2012 | 4,000 | 4,540 | |||||||||
Health Services (3.7%) | |||||||||||
Ameripath, Inc. 10.50%, due 04/01/2013 | 2,000 | 2,177 | |||||||||
Davita, Inc. 6.63%, due 03/15/2013 | 3,300 | 3,312 | |||||||||
HCA, Inc., Senior Note–144A 9.25%, due 11/15/2016 | 8,000 | 8,720 | |||||||||
Holding & Other Investment Offices (2.7%) | |||||||||||
Host Hotels & Resorts, LP, Senior Note 6.88%, due 11/01/2014 | 2,000 | 2,047 | |||||||||
Nell AF Sarl–144A 8.38%, due 08/15/2015 | 3,975 | 4,134 |
Principal | Value | ||||||||||
Holding & Other Investment Offices (continued) | |||||||||||
Sungard Data Systems, Inc. 9.13%, due 08/15/2013 | $ | 4,000 | $ | 4,290 | |||||||
Hotels & Other Lodging Places (6.5%) | |||||||||||
Host Marriott, LP REIT 7.13%, due 11/01/2013 | 2,000 | 2,060 | |||||||||
Las Vegas Sands Corp. 6.38%, due 02/15/2015 | 4,750 | 4,625 | |||||||||
Mandalay Resort Group 6.38%, due 12/15/2011 | 1,000 | 1,004 | |||||||||
MGM Mirage 6.00%, due 10/01/2009 | 2,500 | 2,503 | |||||||||
5.88%, due 02/27/2014 | 2,500 | 2,347 | |||||||||
MGM Mirage, Senior Note 6.75%, due 04/01/2013 | 1,000 | 991 | |||||||||
Seminole Hard Rock Entertainment, Inc./ Seminole Hard Rock International LLC, Senior Secured Note–144A 7.85%, due 03/15/2014 | 2,750 | 2,819 | |||||||||
Station Casinos, Inc. 6.00%, due 04/01/2012 | 1,000 | 980 | |||||||||
6.50%, due 02/01/2014 | 2,000 | 1,882 | |||||||||
Turning Stone Resort Casino Enterprise, Senior Note–144A 9.13%, due 09/15/2014 | 2,400 | 2,448 | |||||||||
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp. 6.63%, due 12/01/2014 | 3,450 | 3,459 | |||||||||
Industrial Machinery & Equipment (1.6%) | |||||||||||
Case New Holland, Inc. 9.25%, due 08/01/2011 | 6,000 | 6,308 | |||||||||
Instruments & Related Products (2.3%) | |||||||||||
DirecTV Holdings LLC/DirecTV Financing Co. 8.38%, due 03/15/2013 | 5,750 | 6,066 | |||||||||
DRS Technologies, Inc. 6.88%, due 11/01/2013 | 3,000 | 3,030 | |||||||||
Medical Instruments & Supplies (0.4%) | |||||||||||
Bard (C.R.), Inc. 6.70%, due 12/01/2026 | 1,500 | 1,598 | |||||||||
Metal Cans & Shipping Containers (1.0%) | |||||||||||
Ball Corp. 6.88%, due 12/15/2012 | 3,775 | 3,860 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 4
TA IDEX Transamerica High-Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Metal Mining (0.7%) | |||||||||||
Freeport-McMoRan Copper & Gold, Inc., Senior Note 8.25%, due 04/01/2015 | $ | 2,635 | $ | 2,849 | |||||||
Mining (1.1%) | |||||||||||
Peabody Energy Corp., Senior Note 7.38%, due 11/01/2016 | 4,000 | 4,225 | |||||||||
Mortgage Bankers & Brokers (3.5%) | |||||||||||
Hawker Beechcraft Acquisition Co. LLC/ Hawker Beechcraft Notes Co., Senior Note, 144A 8.50%, due 04/01/2015 | 2,135 | 2,252 | |||||||||
Hawker Beechcraft Acquisition Co. LLC/ Hawker Beechcraft Notes Co., Senior Subordinated Note–144A 9.75%, due 04/01/2017 † | 800 | 858 | |||||||||
Idearc, Inc., Senior Note–144A 8.00%, due 11/15/2016 | 8,000 | 8,340 | |||||||||
Petroplus Finance, Ltd., Guaranteed Senior Note–144A 7.00%, due 05/01/2017 | 2,000 | 2,018 | |||||||||
Oil & Gas Extraction (5.6%) | |||||||||||
Chesapeake Energy Corp. 7.50%, due 09/15/2013 | 1,000 | 1,045 | |||||||||
7.00%, due 08/15/2014 † | 3,000 | 3,098 | |||||||||
6.88%, due 01/15/2016 | 1,000 | 1,018 | |||||||||
Cimarex Energy Co., Senior Note 7.13%, due 05/01/2017 | 3,250 | 3,283 | |||||||||
Mariner Energy, Inc., Senior Note 8.00%, due 05/15/2017 | 1,975 | 1,987 | |||||||||
Newfield Exploration Co. 6.63%, due 09/01/2014 | 2,500 | 2,513 | |||||||||
Pioneer Natural Resources Co., Senior Note 6.65%, due 03/15/2017 | 3,750 | 3,675 | |||||||||
Plains Exploration & Production Co., Senior Note 7.00%, due 03/15/2017 | 2,175 | 2,178 | |||||||||
Whiting Petroleum Corp. 7.00%, due 02/01/2014 | 3,000 | 2,918 | |||||||||
Paper & Allied Products (5.0%) | |||||||||||
Abitibi-Consolidated, Inc. 6.00%, due 06/20/2013 | 1,500 | 1,298 | |||||||||
Boise Cascade LLC 7.13%, due 10/15/2014 | 1,500 | 1,493 | |||||||||
Domtar, Inc. 7.88%, due 10/15/2011 | 4,900 | 5,188 |
Principal | Value | ||||||||||
Paper & Allied Products (continued) | |||||||||||
Georgia-Pacific Corp.-144A 7.00%, due 01/15/2015 | $ | 7,500 | $ | 7,538 | |||||||
Graphic Packaging International Corp. 8.50%, due 08/15/2011 | 3,500 | 3,631 | |||||||||
MDP Acquisitions PLC 9.63%, due 10/01/2012 | 232 | 244 | |||||||||
Paperboard Containers & Boxes (1.7%) | |||||||||||
Jefferson Smurfit-Stone Container Corp. 8.25%, due 10/01/2012 | 6,475 | 6,548 | |||||||||
Personal Credit Institutions (1.6%) | |||||||||||
Ford Motor Credit Co. 9.88%, due 08/10/2011 | 6,000 | 6,389 | |||||||||
Personal Services (0.6%) | |||||||||||
Service Corp. International, US, Senior Note 6.75%, due 04/01/2016 | 2,500 | 2,456 | |||||||||
Printing & Publishing (3.4%) | |||||||||||
Dex Media East LLC/Dex Media East Finance Co. 9.88%, due 11/15/2009 | 1,000 | 1,044 | |||||||||
Dex Media West LLC/Dex Media Finance Co., Series B 8.50%, due 08/15/2010 | 2,000 | 2,095 | |||||||||
Dex Media, Inc. 8.00%, due 11/15/2013 | 2,500 | 2,619 | |||||||||
Quebecor World, Inc.–144A 9.75%, due 01/15/2015 | 3,300 | 3,482 | |||||||||
RH Donnelley Corp., Senior Note 8.88%, due 01/15/2016 | 3,750 | 4,069 | |||||||||
Radio & Television Broadcasting (1.7%) | |||||||||||
Quebecor Media, Inc., Senior Note 7.75%, due 03/15/2016 | 4,750 | 4,988 | |||||||||
Videotron Ltee 6.88%, due 01/15/2014 | 1,500 | 1,519 | |||||||||
Real Estate (0.5%) | |||||||||||
Realogy Corp, Senior Note–144A 10.50%, due 04/15/2014 † | 2,000 | 2,003 | |||||||||
Restaurants (1.3%) | |||||||||||
Aramark Corp., Senior Note–144A 8.50%, due 02/01/2015 | 4,850 | 5,074 | |||||||||
Stone, Clay & Glass Products (1.3%) | |||||||||||
Owens Brockway Glass Container, Inc. 6.75%, due 12/01/2014 † | 4,000 | 4,025 | |||||||||
Owens-Brockway 8.88%, due 02/15/2009 | 1,000 | 1,020 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 5
TA IDEX Transamerica High-Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Telecommunications (7.2%) | |||||||||||
Alamosa Delaware, Inc., Senior Note 8.50%, due 01/31/2012 | $ | 3,000 | $ | 3,166 | |||||||
Cincinnati Bell, Inc., Senior Note 7.00%, due 02/15/2015 | 3,800 | 3,810 | |||||||||
Citizens Communications Co., Senior Note–144A 6.63%, due 03/15/2015 | 2,200 | 2,197 | |||||||||
7.13%, due 03/15/2019 | 2,500 | 2,519 | |||||||||
Embarq Corp. 7.08%, due 06/01/2016 | 2,600 | 2,686 | |||||||||
Qwest Corp. 7.88%, due 09/01/2011 | 5,000 | 5,325 | |||||||||
7.50%, due 10/01/2014 | 2,000 | 2,115 | |||||||||
7.50%, due 06/15/2023 † | 2,000 | 2,040 | |||||||||
Rogers Wireless, Inc., Senior Secured Note 9.63%, due 05/01/2011 | 1,500 | 1,718 | |||||||||
Windstream Corp., Senior Note 8.63%, due 08/01/2016 | 2,000 | 2,195 | |||||||||
Transportation & Public Utilities (0.8%) | |||||||||||
Hertz Corp., Senior Note 8.88%, due 01/01/2014 | 3,000 | 3,233 | |||||||||
Wholesale Trade Nondurable Goods (1.3%) | |||||||||||
Supervalu, Inc., Senior Note 7.50%, due 11/15/2014 | 5,000 | 5,225 | |||||||||
Total Corporate Debt Securities (cost: $352,500) | 361,468 | ||||||||||
Shares | Value | ||||||||||
PREFERRED STOCKS (0.5%) | |||||||||||
Holding & Other Investment Offices (0.5%) | |||||||||||
Duke Realty Corp. REIT (a) | 40,000 | $ | 1,996 | ||||||||
Total Preferred Stocks (cost: $2,008) | 1,996 | ||||||||||
COMMON STOCKS (0.0%) | |||||||||||
Printing & Publishing (0.0%) | |||||||||||
Golden Books Family Entertainment, Inc. ‡ | 63,750 | — | o | ||||||||
Total Common Stocks (cost: $168) | — | o | |||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (4.7%) | |||||||||||
Debt (4.7%) | |||||||||||
Bank Notes (0.3%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * | $ | 571 | $ | 571 | |||||||
5.27%, due 06/18/2007 * | 571 | 571 |
Principal | Value | ||||||||||
Commercial Paper (1.0%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | $ | 229 | $ | 229 | |||||||
CAFCO LLC-144A 5.29%, due 05/31/2007 | 221 | 221 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 | 152 | 152 | |||||||||
5.29%, due 06/13/2007 | 114 | 114 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 114 | 114 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 114 | 114 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 114 | 114 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 | 114 | 114 | |||||||||
5.28%, due 05/24/2007 | 114 | 114 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 229 | 229 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 224 | 224 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 229 | 229 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 229 | 229 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 | 452 | 452 | |||||||||
5.30%, due 05/29/2007 | 114 | 114 | |||||||||
5.29%, due 05/31/2007 | 114 | 114 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 | 114 | 114 | |||||||||
5.29%, due 05/17/2007 | 114 | 114 | |||||||||
5.28%, due 06/01/2007 | 114 | 114 | |||||||||
5.29%, due 06/19/2007 | 151 | 151 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 171 | 171 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 114 | 114 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 229 | 229 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 114 | 114 | |||||||||
Euro Dollar Overnight (0.6%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 114 | 114 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 229 | 229 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 6
TA IDEX Transamerica High-Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
Deutsche Bank 5.28%, due 05/03/2007 | $ | 229 | $ | 229 | |||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 229 | 229 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 229 | 229 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 229 | 229 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 229 | 229 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 114 | 114 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 229 | 229 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 433 | 433 | |||||||||
Euro Dollar Terms (1.7%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 229 | 229 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 114 | 114 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 160 | 160 | |||||||||
Barclays 5.29%, due 05/07/2007 | 229 | 229 | |||||||||
5.30%, due 05/16/2007 | 229 | 229 | |||||||||
5.29%, due 05/21/2007 | 114 | 114 | |||||||||
5.30%, due 06/04/2007 | 114 | 114 | |||||||||
5.29%, due 06/08/2007 | 229 | 229 | |||||||||
Calyon 5.30%, due 05/17/2007 | 114 | 114 | |||||||||
5.31%, due 05/24/2007 | 229 | 229 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 | 343 | 343 | �� | ||||||||
5.28%, due 05/29/2007 | 114 | 114 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 228 | 228 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Deutsche Bank 5.30%, due 05/15/2007 | $ | 228 | $ | 228 | |||||||
Fortis Bank 5.28%, due 05/21/2007 | 343 | 343 | |||||||||
5.28%, due 05/25/2007 | 343 | 343 | |||||||||
5.30%, due 06/25/2007 | 228 | 228 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 343 | 343 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 | 228 | 228 | |||||||||
5.30%, due 05/09/2007 | 114 | 114 | |||||||||
5.31%, due 05/25/2007 | 228 | 228 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 114 | 114 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 228 | 228 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 228 | 228 | |||||||||
UBS AG 5.28%, due 06/01/2007 | 228 | 228 | |||||||||
5.29%, due 06/12/2007 | 457 | 457 | |||||||||
5.29%, due 06/15/2007 | 343 | 343 | |||||||||
5.29%, due 06/18/2007 | 571 | 571 | |||||||||
Repurchase Agreements (1.1%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $633 on 05/01/2007 | 633 | 633 | |||||||||
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,514 on 05/01/2007 | 2,513 | 2,513 | |||||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,101 on 05/01/2007 | 1,101 | 1,101 | |||||||||
Total Security Lending Collateral (cost: $18,321) | 18,321 | ||||||||||
Total Investment Securities (cost: $372,997) # | $ | 381,785 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 7
TA IDEX Transamerica High-Yield Bond
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
NOTES TO SCHEDULE OF INVESTMENTS:
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $17,889.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
(a) Duke Realty Corp. REIT has a coupon rate of 7.99% until 10/01/2012, thereafter the coupon rate will be 9.99%.
‡ Non-income producing.
†† Cash collateral for the Repurchase Agreements, valued at $4,356, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
o Value is less than $1.
# Aggregate cost for federal income tax purposes is $372,997. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $9,789 and $1,001, respectively. Net unrealized appreciation for tax purposes is $8,788.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $87,235 or 22.5% of the net assets of the Fund.
REIT Real Estate Investment Trust
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 8
TA IDEX Transamerica High-Yield Bond
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $372,997) (including securities loaned of $17,889) | $ | 381,785 | |||||
Cash | 20,631 | ||||||
Receivables: | |||||||
Investment securities sold | 2,626 | ||||||
Shares of beneficial interest sold | 364 | ||||||
Interest | 7,762 | ||||||
Other | 29 | ||||||
413,197 | |||||||
Liabilities: | |||||||
Investment securities purchased | 5,757 | ||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 287 | ||||||
Management and advisory fees | 192 | ||||||
Distribution and service fees | 43 | ||||||
Transfer agent fees | 13 | ||||||
Administration fees | 6 | ||||||
Payable for collateral for securities on loan | 18,321 | ||||||
Other | 77 | ||||||
24,696 | |||||||
Net Assets | $ | 388,501 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 379,805 | |||||
Undistributed (accumulated) net investment income (loss) | 815 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities | (907 | ) | |||||
Net unrealized appreciation (depreciation) on investment securities | 8,788 | ||||||
Net Assets | $ | 388,501 | |||||
Net Assets by Class: | |||||||
Class A | $ | 39,559 | |||||
Class B | 25,823 | ||||||
Class C | 10,653 | ||||||
Class I | 312,466 | ||||||
Shares Outstanding: | |||||||
Class A | 4,200 | ||||||
Class B | 2,743 | ||||||
Class C | 1,133 | ||||||
Class I | 32,970 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 9.42 | |||||
Class B | 9.41 | ||||||
Class C | 9.40 | ||||||
Class I | 9.48 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 9.89 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 14,509 | |||||
Dividends | 80 | ||||||
Income from loaned securities–net | 43 | ||||||
14,632 | |||||||
Expenses: | |||||||
Management and advisory fees | 1,136 | ||||||
Distribution and service fees: | |||||||
Class A | 73 | ||||||
Class B | 134 | ||||||
Class C | 54 | ||||||
Transfer agent fees: | |||||||
Class A | 32 | ||||||
Class B | 24 | ||||||
Class C | 10 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 12 | ||||||
Custody fees | 27 | ||||||
Administration fees | 39 | ||||||
Legal fees | 5 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 8 | ||||||
Registration fees | 21 | ||||||
Other | 4 | ||||||
Total expenses | 1,589 | ||||||
Net Investment Income (Loss) | 13,043 | ||||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | 3,857 | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | 6,169 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 10,026 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 23,069 |
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 9
TA IDEX Transamerica High-Yield Bond
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 13,043 | $ | 27,863 | |||||||
Net realized gain (loss) from investment securities | 3,857 | 2,550 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities | 6,169 | 5,827 | |||||||||
23,069 | 36,240 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (1,363 | ) | (2,884 | ) | |||||||
Class B | (797 | ) | (1,848 | ) | |||||||
Class C | (325 | ) | (734 | ) | |||||||
Class I | (10,793 | ) | (20,919 | ) | |||||||
(13,278 | ) | (26,385 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 8,067 | 18,259 | |||||||||
Class B | 775 | 1,519 | |||||||||
Class C | 1,202 | 2,968 | |||||||||
Class I | 18,707 | 326,422 | |||||||||
28,751 | 349,168 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 911 | 2,129 | |||||||||
Class B | 536 | 1,230 | |||||||||
Class C | 186 | 425 | |||||||||
Class I | 10,793 | 20,919 | |||||||||
12,426 | 24,703 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (14,231 | ) | (314,046 | ) | |||||||
Class B | (3,673 | ) | (12,527 | ) | |||||||
Class C | (2,324 | ) | (8,273 | ) | |||||||
Class I | (40,075 | ) | (81,130 | ) | |||||||
(60,303 | ) | (415,976 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | – | (a) | ||||||||
Class B | – | (a) | – | (a) | |||||||
Class C | – | – | (a) | ||||||||
– | (a) | – | (a) | ||||||||
Automatic conversions: | |||||||||||
Class A | 240 | 242 | |||||||||
Class B | (240 | ) | (242 | ) | |||||||
– | – | ||||||||||
(19,126 | ) | (42,105 | ) | ||||||||
Net increase (decrease) in net assets | (9,335 | ) | (32,250 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 397,836 | 430,086 | |||||||||
End of period | $ | 388,501 | $ | 397,836 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 815 | $ | 1,050 |
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 865 | 2,011 | |||||||||
Class B | 83 | 168 | |||||||||
Class C | 129 | 328 | |||||||||
Class I | 1,987 | 36,198 | |||||||||
3,064 | 38,705 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 98 | 236 | |||||||||
Class B | 58 | 136 | |||||||||
Class C | 20 | 47 | |||||||||
Class I | 1,153 | 2,303 | |||||||||
1,329 | 2,722 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (1,524 | ) | (35,041 | ) | |||||||
Class B | (394 | ) | (1,382 | ) | |||||||
Class C | (250 | ) | (914 | ) | |||||||
Class I | (4,275 | ) | (8,925 | ) | |||||||
(6,443 | ) | (46,262 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 26 | 27 | |||||||||
Class B | (26 | ) | (27 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (535 | ) | (32,767 | ) | |||||||
Class B | (279 | ) | (1,105 | ) | |||||||
Class C | (101 | ) | (539 | ) | |||||||
Class I | (1,135 | ) | 29,576 | ||||||||
(2,050 | ) | (4,835 | ) |
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 10
TA IDEX Transamerica High-Yield Bond
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(e) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 9.19 | $ | 0.30 | $ | 0.24 | $ | 0.54 | $ | (0.31 | ) | $ | – | $ | (0.31 | ) | $ | 9.42 | ||||||||||||||||||||
10/31/2006 | 8.97 | 0.61 | 0.19 | 0.80 | (0.58 | ) | – | (0.58 | ) | 9.19 | |||||||||||||||||||||||||||||
10/31/2005 | 9.37 | 0.56 | (0.37 | ) | 0.19 | (0.59 | ) | – | (0.59 | ) | 8.97 | ||||||||||||||||||||||||||||
10/31/2004 | 9.08 | 0.52 | 0.29 | 0.81 | (0.52 | ) | – | (0.52 | ) | 9.37 | |||||||||||||||||||||||||||||
10/31/2003 | 7.93 | 0.57 | 1.16 | 1.73 | (0.58 | ) | – | (0.58 | ) | 9.08 | |||||||||||||||||||||||||||||
10/31/2002 | 9.26 | 0.57 | (1.31 | ) | (0.74 | ) | (0.59 | ) | – | (0.59 | ) | 7.93 | |||||||||||||||||||||||||||
Class B | 4/30/2007 | 9.18 | 0.27 | 0.23 | 0.50 | �� | (0.27 | ) | – | (0.27 | ) | 9.41 | |||||||||||||||||||||||||||
10/31/2006 | 8.97 | 0.55 | 0.19 | 0.74 | (0.53 | ) | – | (0.53 | ) | 9.18 | |||||||||||||||||||||||||||||
10/31/2005 | 9.37 | 0.48 | (0.37 | ) | 0.11 | (0.51 | ) | – | (0.51 | ) | 8.97 | ||||||||||||||||||||||||||||
10/31/2004 | 9.08 | 0.46 | 0.29 | 0.75 | (0.46 | ) | – | (0.46 | ) | 9.37 | |||||||||||||||||||||||||||||
10/31/2003 | 7.93 | 0.51 | 1.17 | 1.68 | (0.53 | ) | – | (0.53 | ) | 9.08 | |||||||||||||||||||||||||||||
10/31/2002 | 9.26 | 0.52 | (1.32 | ) | (0.80 | ) | (0.53 | ) | – | (0.53 | ) | 7.93 | |||||||||||||||||||||||||||
Class C | 4/30/2007 | 9.17 | 0.27 | 0.24 | 0.51 | (0.28 | ) | – | (0.28 | ) | 9.40 | ||||||||||||||||||||||||||||
10/31/2006 | 8.96 | 0.55 | 0.19 | 0.74 | (0.53 | ) | – | (0.53 | ) | 9.17 | |||||||||||||||||||||||||||||
10/31/2005 | 9.36 | 0.47 | (0.36 | ) | 0.11 | (0.51 | ) | – | (0.51 | ) | 8.96 | ||||||||||||||||||||||||||||
10/31/2004 | 9.08 | 0.46 | 0.28 | 0.74 | (0.46 | ) | – | (0.46 | ) | 9.36 | |||||||||||||||||||||||||||||
10/31/2003 | 8.08 | 0.51 | 1.02 | 1.53 | (0.53 | ) | – | (0.53 | ) | 9.08 | |||||||||||||||||||||||||||||
Class I | 4/30/2007 | 9.24 | 0.32 | 0.25 | 0.57 | (0.33 | ) | – | (0.33 | ) | 9.48 | ||||||||||||||||||||||||||||
10/31/2006 | 9.02 | 0.67 | 0.18 | 0.85 | (0.63 | ) | – | (0.63 | ) | 9.24 | |||||||||||||||||||||||||||||
10/31/2005 | 9.39 | 0.59 | (0.37 | ) | 0.22 | (0.59 | ) | – | (0.59 | ) | 9.02 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||
For the Period Ended (e) | Total Return (c) | Net Assets, End of Period (000's) | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average Net Assets (a) | Portfolio Turnover Rate (b) | ||||||||||||||||||||||
Class A | 4/30/2007 | 5.92 | % | $ | 39,559 | 1.16 | % | 6.44 | % | 47 | % | ||||||||||||||||
10/31/2006 | 9.27 | 43,514 | 1.16 | 6.77 | (f) | 73 | |||||||||||||||||||||
10/31/2005 | 2.06 | 336,340 | 1.05 | 6.04 | 71 | ||||||||||||||||||||||
10/31/2004 | 9.23 | 309,223 | 1.08 | 5.67 | 49 | ||||||||||||||||||||||
10/31/2003 | 22.74 | 193,708 | 1.22 | 6.57 | 46 | ||||||||||||||||||||||
10/31/2002 | (8.48 | ) | 60,332 | 1.35 | 6.61 | 64 | |||||||||||||||||||||
Class B | 4/30/2007 | 5.57 | 25,823 | 1.84 | 5.76 | (f) | 47 | ||||||||||||||||||||
10/31/2006 | 8.53 | 27,753 | 1.83 | 6.12 | (f) | 73 | |||||||||||||||||||||
10/31/2005 | 1.21 | 37,006 | 1.85 | 5.18 | (f) | 71 | |||||||||||||||||||||
10/31/2004 | 8.52 | 49,422 | 1.72 | 5.05 | 49 | ||||||||||||||||||||||
10/31/2003 | 21.94 | 51,511 | 1.87 | 5.92 | 46 | ||||||||||||||||||||||
10/31/2002 | (9.03 | ) | 31,336 | 2.00 | 5.96 | 64 | |||||||||||||||||||||
Class C | 4/30/2007 | 5.58 | 10,653 | 1.84 | 5.75 | 47 | |||||||||||||||||||||
10/31/2006 | 8.54 | 11,317 | 1.83 | 6.12 | (f) | 73 | |||||||||||||||||||||
10/31/2005 | 1.21 | 15,880 | 1.88 | 5.11 | (f) | 71 | |||||||||||||||||||||
10/31/2004 | 8.41 | 25,379 | 1.78 | 4.95 | 49 | ||||||||||||||||||||||
10/31/2003 | 19.52 | 8,403 | 1.87 | 5.92 | 46 | ||||||||||||||||||||||
Class I | 4/30/2007 | 6.26 | 312,466 | 0.65 | 6.95 | 47 | |||||||||||||||||||||
10/31/2006 | 9.81 | 315,252 | 0.66 | 7.29 | 73 | ||||||||||||||||||||||
10/31/2005 | 2.33 | 40,860 | 0.66 | 6.60 | 71 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 11
TA IDEX Transamerica High-Yield Bond
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 8, 2004.
(f) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 12
TA IDEX Transamerica High-Yield Bond
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, the TA IDEX Transamerica High-Yield Bond (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $18, earned by IBT for its services.
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.
Dividend income 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.
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 Fund is informed of the ex-dividend date. Interest income,
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 13
TA IDEX Transamerica High-Yield Bond
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
including accretion of discounts and amortization of premiums, is recorded on the accrual basis commencing on the settlement date.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
AEGON USA Investment Management, LLC is both the sub-adviser to the Fund and an affiliate of the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 43,076 | 11.09 | % | |||||||
TA IDEX Asset Allocation– Moderate Portfolio | 113,671 | 29.26 | % | ||||||||
TA IDEX Asset Allocation–Moderate Growth Portfolio | 82,986 | 21.36 | % | ||||||||
Asset Allocation–Conservative Portfolio | 18,894 | 4.86 | % | ||||||||
Asset Allocation–Moderate Growth Portfolio | 32,083 | 8.26 | % | ||||||||
Asset Allocation–Moderate Portfolio | 21,756 | 5.60 | % | ||||||||
Total | $ | 312,466 | 80.43 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.59% of the first $400 million of ANA
0.575% of the next $350 million of ANA
0.55% of ANA over $750 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.24% Expense Limit
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 75 | |||||
Retained by Underwriter | 16 | ||||||
Contingent Deferred Sales Charge | 27 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $61 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 14
TA IDEX Transamerica High-Yield Bond
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $29.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $22. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 173,485 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 195,373 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, defaulted bond interest and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 4,764 | October 31, 2011 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.
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Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 15
TA IDEX Transamerica High-Yield Bond
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6.–(continued)
Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 16
TA IDEX Transamerica High-Yield Bond
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica High-Yield Bond (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and AEGON USA Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Inve stment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their de cisions 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, and the professional qualifications and experience of the Sub-Adviser's portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Trustees noted that TFAI and the Sub-Adviser generally had achieved below-median performance, as compared to comparable funds, and expressed their dissatisfaction with the three- and five-year periods, while noting that performance had improved slightly, relative to comparable funds, over the past one- and two-year periods. The Trustees, however, favorably noted the Fund's long-term performance, which remained above median relative to peers over the ten-year period, and that certain of the Fund's investment strategies recently changed in order to provide the Fund with greater inves tment flexibility, leading to an improvement of the Fund's performance. The Board asked that TFAI closely monitor the Fund's performance. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees dete rmined that the management fees and overall expense ratio of the Fund are competitive with industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 17
TA IDEX Transamerica High-Yield Bond (continued)
from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration, fund accounting and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services , the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica High-Yield Bond 18
TA IDEX Transamerica Money Market
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,022.60 | 0.83 | % | $ | 4.16 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,020.68 | 0.83 | 4.16 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,019.30 | 1.48 | 7.41 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,017.46 | 1.48 | 7.40 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,019.30 | 1.48 | 7.41 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,017.46 | 1.48 | 7.40 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,024.40 | 0.48 | 2.41 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,022.41 | 0.48 | 2.41 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHIC PRESENTATION OF SCHEDULE OF INVESTMENTS
By Maturity Distribution
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by maturity distribution of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 1
TA IDEX Transamerica Money Market
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
COMMERCIAL PAPER (83.3%) | |||||||||||
Automotive (7.8%) | |||||||||||
BMW US Capital LLC-144A | |||||||||||
5.24%, due 05/17/2007 | $ | 4,150 | $ | 4,140 | |||||||
5.24%, due 05/18/2007 | 2,850 | 2,843 | |||||||||
Harley-Davidson, Inc.-144A 5.23%, due 05/29/2007 3,400 3,386 5.23%, due 05/30/2007 | 2,000 | 1,992 | |||||||||
Business Credit Institutions (1.0%) | |||||||||||
Caterpillar Financial Services Corp. 5.24%, due 05/21/2007 | 1,650 | 1,645 | |||||||||
Commercial Banks (27.1%) | |||||||||||
Canadian Imperial Holdings 5.25%, due 05/04/2007 5.25%, due 05/07/2007 5.25%, due 05/22/2007 | 3,475 2,600 1,800 | 3,473 2,598 1,794 | |||||||||
HBOS Treasury Services 5.24%, due 05/09/2007 5.25%, due 05/15/2007 5.24%, due 06/22/2007 5.24%, due 07/03/2007 | 2,200 2,000 1,200 2,100 | 2,197 1,996 1,191 2,081 | |||||||||
Nestle Capital Corp.-144A 5.26%, due 05/03/2007 | 4,125 | 4,124 | |||||||||
Royal Bank of Scotland 5.24%, due 05/29/2007 5.23%, due 06/04/2007 | 1,100 6,700 | 1,095 6,667 | |||||||||
Toronto-Dominion Holdings USA, Inc.-144A 5.25%, due 05/01/2007 5.25%, due 05/02/2007 5.24%, due 05/08/2007 | 2,400 2,400 3,100 | 2,400 2,400 3,097 | |||||||||
UBS Finance Delaware LLC 5.25%, due 05/01/2007 5.25%, due 05/04/2007 5.25%, due 05/24/2007 5.25%, due 06/01/2007 5.24%, due 06/25/2007 | 1,225 2,000 1,500 2,000 1,000 | 1,225 1,999 1,495 1,991 992 | |||||||||
Electronic & Other Electric Equipment (4.9%) | |||||||||||
Emerson Electric Co.-144A 5.24%, due 05/09/2007 5.24%, due 05/10/2007 5.24%, due 05/14/2007 5.25%, due 05/16/2007 | 1,775 2,625 1,400 2,000 | 1,773 2,622 1,397 1,996 |
Principal | Value | ||||||||||
Holding & Other Investment Offices (5.0%) | |||||||||||
Prudential Funding LLC | |||||||||||
5.24%, due 05/02/2007 | $ | 2,500 | $ | 2,500 | |||||||
5.24%, due 05/08/2007 | 2,000 | 1,998 | |||||||||
5.24%, due 05/16/2007 | 3,350 | 3,343 | |||||||||
Mortgage Bankers & Brokers (18.6%) | |||||||||||
CAFCO LLC-144A 5.26%, due 05/07/2007 1,800 1,798 5.26%, due 05/14/2007 1,700 1,697 5.25%, due 06/08/2007 1,500 1,492 5.24%, due 06/14/2007 | 1,000 | 994 | |||||||||
Old Line Funding Corp.-144A 5.26%, due 05/10/2007 1,350 1,348 5.26%, due 05/18/2007 1,600 1,596 5.26%, due 05/24/2007 3,250 3,239 5.25%, due 06/08/2007 | 1,700 | 1,691 | |||||||||
Ranger Funding Co. LLC-144A 5.26%, due 05/21/2007 1,700 1,695 5.25%, due 05/31/2007 1,250 1,245 5.24%, due 06/19/2007 3,400 3,376 5.24%, due 06/26/2007 | 1,500 | 1,488 | |||||||||
Sheffield Receivables Corp.-144A 5.27%, due 05/09/2007 1,000 999 5.27%, due 05/14/2007 3,000 2,994 5.26%, due 05/23/2007 1,450 1,445 5.26%, due 06/29/2007 | 2,400 | 2,379 | |||||||||
Personal Credit Institutions (15.8%) | |||||||||||
American Honda Finance Corp. 5.24%, due 05/09/2007 1,100 1,099 5.23%, due 05/30/2007 1,200 1,195 5.23%, due 05/31/2007 2,025 2,016 5.23%, due 06/12/2007 | 3,550 | 3,528 | |||||||||
General Electric Capital Corp. 5.25%, due 06/06/2007 | 3,800 | 3,780 | |||||||||
International Lease Finance Corp. 5.24%, due 05/10/2007 | 1,200 | 1,198 | |||||||||
Paccar Financial Corp. 5.24%, due 05/08/2007 | 2,000 | 1,998 | |||||||||
Toyota Motor Credit Corp. 5.24%, due 05/03/2007 2,900 2,899 5.24%, due 05/15/2007 | 2,950 | 2,944 | |||||||||
Unilever Capital Corp.-144A 5.23%, due 05/21/2007 1,600 1,595 5.23%, due 05/23/2007 | 2,825 | 2,816 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 2
TA IDEX Transamerica Money Market
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Savings Institutions (1.2%) | |||||||||||
Ciesco LLC-144A 5.25%, due 06/22/2007 | $ | 1,850 | $ | 1,836 | |||||||
Security & Commodity Brokers (1.9%) | |||||||||||
Merrill Lynch & Co., Inc. 5.24%, due 05/01/2007 2,000 2,000 5.24%, due 05/02/2007 | 1,000 | 1,000 | |||||||||
Total Commercial Paper (cost: $131,830) | 131,830 | ||||||||||
SHORT-TERM OBLIGATIONS (16.8%) | |||||||||||
Computer & Office Equipment (2.1%) | |||||||||||
International Business Machines Corp. 5.35%, due 06/28/2007 * | 3,300 | 3,300 | |||||||||
Department Stores (1.9%) | |||||||||||
Wal-Mart Stores, Inc. 4.38%, due 07/12/2007 | 3,000 | 2,995 |
Principal | Value | ||||||||||
Personal Credit Institutions (6.6%) | |||||||||||
General Electric Capital Corp., Series A, MTN 3.45%, due 07/16/2007 | $ | 4,000 | $ | 3,985 | |||||||
International Lease Finance Corp. 3.13%, due 05/03/2007 2,600 2,600 5.63%, due 06/01/2007 | 3,900 | 3,901 | |||||||||
Security & Commodity Brokers (6.2%) | |||||||||||
Goldman Sachs Group, Inc. 5.48%, due 05/11/2007 | 5,000 | 5,000 | |||||||||
Merrill Lynch & Co., Inc. 5.36%, due 08/22/2007 * | 4,800 | 4,801 | |||||||||
Total Short-Term Obligations (cost: $26,582) | 26,582 | ||||||||||
Total Investment Securities (cost: $158,412) # | $ | 158,412 |
NOTES TO SCHEDULE OF INVESTMENTS:
* Floating or variable rate note. Rate is listed as of April 30, 2007.
# Aggregate cost for federal income tax purposes is $158,412.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $67,893 or 42.9% of the net assets of the Fund.
MTN Medium-Term Note
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 3
TA IDEX Transamerica Money Market
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $158,412) | $ | 158,412 | |||||
Cash | 137 | ||||||
Receivables: | |||||||
Shares of beneficial interest sold | 571 | ||||||
Interest | 258 | ||||||
Other | 13 | ||||||
159,391 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 647 | ||||||
Management and advisory fees | 9 | ||||||
Distribution and service fees | 63 | ||||||
Transfer agent fees | 28 | ||||||
Administration fees | 3 | ||||||
Dividends to shareholders | 286 | ||||||
Other | 52 | ||||||
1,088 | |||||||
Net Assets | $ | 158,303 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 158,213 | |||||
Undistributed (accumulated) net investment income (loss) | 90 | ||||||
Net Assets | $ | 158,303 | |||||
Net Assets by Class: | |||||||
Class A | $ | 83,695 | |||||
Class B | 25,638 | ||||||
Class C | 17,955 | ||||||
Class I | 31,015 | ||||||
Shares Outstanding: | |||||||
Class A | 83,697 | ||||||
Class B | 25,637 | ||||||
Class C | 17,949 | ||||||
Class I | 31,014 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 1.00 | |||||
Class B | 1.00 | ||||||
Class C | 1.00 | ||||||
Class I | 1.00 |
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 4,720 | |||||
Expenses: | |||||||
Management and advisory fees | 353 | ||||||
Distribution and service fees: | |||||||
Class A | 140 | ||||||
Class B | 124 | ||||||
Class C | 86 | ||||||
Transfer agent fees: | |||||||
Class A | 138 | ||||||
Class B | 34 | ||||||
Class C | 19 | ||||||
Class I | – | (a) | |||||
Printing and shareholder reports | 19 | ||||||
Custody fees | 12 | ||||||
Administration fees | 18 | ||||||
Legal fees | 2 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 4 | ||||||
Registration fees | 43 | ||||||
Other | 4 | ||||||
Total expenses | 1,006 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (160 | ) | |||||
Class B | (40 | ) | |||||
Class C | (23 | ) | |||||
Class I | (9 | ) | |||||
Total reimbursed expenses | (232 | ) | |||||
Net expenses | 774 | ||||||
Net Investment Income (Loss) | 3,946 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 3,946 |
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 4
TA IDEX Transamerica Money Market
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 3,946 | $ | 5,358 | |||||||
3,946 | 5,358 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (1,802 | ) | (3,130 | ) | |||||||
Class B | (479 | ) | (942 | ) | |||||||
Class C | (334 | ) | (504 | ) | |||||||
Class I | (1,331 | ) | (782 | ) | |||||||
(3,946 | ) | (5,358 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 50,413 | 88,535 | |||||||||
Class B | 9,671 | 15,370 | |||||||||
Class C | 6,670 | 24,772 | |||||||||
Class I | 205,221 | 113,779 | |||||||||
271,975 | 242,456 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 1,754 | 3,107 | |||||||||
Class B | 443 | 857 | |||||||||
Class C | 315 | 468 | |||||||||
Class I | 1,327 | 731 | |||||||||
3,839 | 5,163 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (47,578 | ) | (163,975 | ) | |||||||
Class B | (9,811 | ) | (21,902 | ) | |||||||
Class C | (6,317 | ) | (23,951 | ) | |||||||
Class I | (202,000 | ) | (88,044 | ) | |||||||
(265,706 | ) | (297,872 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 392 | 246 | |||||||||
Class B | (392 | ) | (246 | ) | |||||||
– | – | ||||||||||
10,108 | (50,253 | ) | |||||||||
Net increase (decrease) in net assets | 10,108 | (50,253 | ) | ||||||||
Net Assets: | |||||||||||
Beginning of period | 148,195 | 198,448 | |||||||||
End of period | $ | 158,303 | $ | 148,195 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 90 | $ | 90 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 50,413 | 88,535 | |||||||||
Class B | 9,671 | 15,370 | |||||||||
Class C | 6,670 | 24,772 | |||||||||
Class I | 205,221 | 113,779 | |||||||||
271,975 | 242,456 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 1,754 | 3,107 | |||||||||
Class B | 443 | 857 | |||||||||
Class C | 315 | 468 | |||||||||
Class I | 1,327 | 731 | |||||||||
3,839 | 5,163 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (47,579 | ) | (163,975 | ) | |||||||
Class B | (9,811 | ) | (21,902 | ) | |||||||
Class C | (6,317 | ) | (23,952 | ) | |||||||
Class I | (202,000 | ) | (88,044 | ) | |||||||
(265,707 | ) | (297,873 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 392 | 246 | |||||||||
Class B | (392 | ) | (246 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 4,980 | (72,087 | ) | ||||||||
Class B | (89 | ) | (5,921 | ) | |||||||
Class C | 668 | 1,288 | |||||||||
Class I | 4,548 | 26,466 | |||||||||
10,107 | (50,254 | ) |
(a) Class I was offered for investment on November 15, 2005.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 5
TA IDEX Transamerica Money Market
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (c)(f) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 1.00 | 0.020 | $ | – | 0.020 | (0.020 | ) | $ | – | (0.020 | ) | $ | 1.00 | ||||||||||||||||||||||||
10/31/2006 | 1.00 | 0.040 | – | 0.040 | (0.040 | ) | – | (0.040 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2005 | 1.00 | 0.020 | – | (g) | 0.020 | (0.020 | ) | – | (0.020 | ) | 1.00 | ||||||||||||||||||||||||||||
10/31/2004 | 1.00 | 0.004 | – | 0.004 | (0.004 | ) | – | (0.004 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2003 | 1.00 | 0.004 | – | 0.004 | (0.004 | ) | – | (0.004 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2002 | 1.00 | 0.008 | – | 0.008 | (0.008 | ) | – | (0.008 | ) | 1.00 | |||||||||||||||||||||||||||||
Class B | 4/30/2007 | 1.00 | 0.020 | – | 0.020 | (0.020 | ) | – | (0.020 | ) | 1.00 | ||||||||||||||||||||||||||||
10/31/2006 | 1.00 | 0.030 | – | 0.030 | (0.030 | ) | – | (0.030 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2005 | 1.00 | 0.020 | – | (g) | 0.020 | (0.020 | ) | – | (0.020 | ) | 1.00 | ||||||||||||||||||||||||||||
10/31/2004 | 1.00 | 0.001 | – | 0.001 | (0.001 | ) | – | (0.001 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2003 | 1.00 | 0.001 | – | 0.001 | (0.001 | ) | – | (0.001 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2002 | 1.00 | – | – | – | – | – | – | 1.00 | |||||||||||||||||||||||||||||||
Class C | 4/30/2007 | 1.00 | 0.020 | – | 0.020 | (0.020 | ) | – | (0.020 | ) | 1.00 | ||||||||||||||||||||||||||||
10/31/2006 | 1.00 | 0.030 | – | 0.030 | (0.030 | ) | – | (0.030 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2005 | 1.00 | 0.020 | – | (g) | 0.020 | (0.020 | ) | – | (0.020 | ) | 1.00 | ||||||||||||||||||||||||||||
10/31/2004 | 1.00 | 0.001 | – | 0.001 | (0.001 | ) | – | (0.001 | ) | 1.00 | |||||||||||||||||||||||||||||
10/31/2003 | 1.00 | 0.002 | – | 0.002 | (0.002 | ) | – | (0.002 | ) | 1.00 | |||||||||||||||||||||||||||||
Class I | 4/30/2007 | 1.00 | 0.020 | – | 0.020 | (0.020 | ) | – | (0.020 | ) | 1.00 | ||||||||||||||||||||||||||||
10/31/2006 | 1.00 | 0.040 | – | 0.040 | (0.040 | ) | – | (0.040 | ) | 1.00 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | |||||||||||||||||||||||
Ended (f) | Return (b) | (000's) | Net (d) | Total (e) | Net Assets (a) | ||||||||||||||||||||||
Class A | 4/30/2007 | 2.26 | % | $ | 83,695 | 0.83 | % | 1.23 | % | 4.52 | % | ||||||||||||||||
10/31/2006 | 4.09 | 78,716 | 0.83 | 1.23 | 3.98 | ||||||||||||||||||||||
10/31/2005 | 2.10 | 150,804 | 0.83 | 1.05 | 2.08 | ||||||||||||||||||||||
10/31/2004 | 0.42 | 185,311 | 0.83 | 1.19 | 0.45 | ||||||||||||||||||||||
10/31/2003 | 0.39 | 109,794 | 0.83 | 1.22 | 0.42 | ||||||||||||||||||||||
10/31/2002 | 0.56 | 131,949 | 0.83 | 1.36 | 0.93 | ||||||||||||||||||||||
Class B | 4/30/2007 | 1.93 | 25,638 | 1.48 | 1.81 | 3.86 | |||||||||||||||||||||
10/31/2006 | 3.41 | 25,727 | 1.48 | 1.80 | 3.35 | ||||||||||||||||||||||
10/31/2005 | 1.60 | 31,647 | 1.32 | 1.79 | 1.57 | ||||||||||||||||||||||
10/31/2004 | 0.14 | 40,203 | 1.10 | 1.81 | 0.13 | ||||||||||||||||||||||
10/31/2003 | 0.12 | 54,324 | 1.16 | 1.87 | 0.08 | ||||||||||||||||||||||
10/31/2002 | 0.28 | 81,683 | 1.48 | 2.01 | 0.28 | ||||||||||||||||||||||
Class C | 4/30/2007 | 1.93 | 17,955 | 1.48 | 1.75 | 3.86 | |||||||||||||||||||||
10/31/2006 | 3.16 | 17,286 | 1.48 | 1.82 | 3.40 | ||||||||||||||||||||||
10/31/2005 | 1.87 | 15,997 | 1.26 | 1.89 | 1.61 | ||||||||||||||||||||||
10/31/2004 | 0.14 | 22,277 | 0.98 | 1.96 | 0.43 | ||||||||||||||||||||||
10/31/2003 | 0.12 | 3,542 | 1.04 | 1.87 | 0.21 | ||||||||||||||||||||||
Class I | 4/30/2007 | 2.44 | 31,015 | 0.48 | 0.51 | 4.89 | |||||||||||||||||||||
10/31/2006 | 4.30 | 26,466 | 0.48 | 0.51 | 4.39 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 6
TA IDEX Transamerica Money Market
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(c) Per share information is calculated based on average number of shares outstanding.
(d) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(e) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(f) TA IDEX Transamerica Money Market ("the Fund") commenced operations on March 1, 2002. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(g) Rounds to less than $0.001 per share.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 7
TA IDEX Transamerica Money Market
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Money Market (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: As permitted under Rule 2a-7 of the 1940 Act, the securities held by the Fund are valued on the basis of amortized cost, which approximates market value.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
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 Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received no redemption fees.
Dividend distributions: Dividends to shareholders are declared daily and reinvested monthly and are determined in accordance with Federal income tax regulations which may differ from GAAP.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 8,868 | 5.60 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 5,131 | 3.24 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 5,500 | 3.47 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 10,314 | 6.52 | % | ||||||||
TA IDEX Multi-Manager Alternative Strategies Fund | 1,202 | 0.76 | % | ||||||||
Total | $ | 31,015 | 19.59 | % |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 8
TA IDEX Transamerica Money Market
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following rate:
0.40% of ANA
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
0.48% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years. The Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
Reimbursement of Class Expenses | Available for Recapture Through | ||||||||||
Fiscal Year 2006: | |||||||||||
Class A | $ | 290 | 10/31/2009 | ||||||||
Class B | 81 | 10/31/2009 | |||||||||
Class C | 47 | 10/31/2009 | |||||||||
Fiscal Year 2005: | |||||||||||
Class A | 334 | 10/31/2008 | |||||||||
Class B | 101 | 10/31/2008 | |||||||||
Class C | 66 | 10/31/2008 | |||||||||
Fiscal Year 2004: | |||||||||||
Class A | 477 | 10/31/2007 | |||||||||
Class B | 145 | 10/31/2007 | |||||||||
Class C | 71 | 10/31/2007 |
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | – | |||||
Retained by Underwriter | – | ||||||
Contingent Deferred Sales Charge | 46 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $159 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $13.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Money Market 9
TA IDEX Transamerica Money Market
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $8. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, capital loss carry forwards and dividends payable.
NOTE 4. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 5. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
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TA IDEX Transamerica Money Market 10
TA IDEX Transamerica Money Market
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Money Market (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Inve stment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based their de cisions 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment performance . The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser had achieved acceptable investment performance, noting that the performance of the Fund was competitive relative to its peers over the past one-, two-, and three-year periods. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and comp etitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), and other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees). The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund ge nerally are competitive compared to its peers. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, and TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
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TA IDEX Transamerica Money Market 11
TA IDEX Transamerica Money Market (continued)
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. Although the investment advisory fees do not reduce should Fund assets grow meaningfully, the Board determined that the management fees already reflect potential economies of scale to some extent by virtue of their competitive levels determined with reference to industry standards as reported by Lipper and the estimated profitability at current or foreseeable asset levels. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes "soft dollar" benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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TA IDEX Transamerica Money Market 12
TA IDEX Transamerica Science & Technology
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,071.60 | 1.53 | % | $ | 7.86 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.12 | 1.53 | 7.65 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,069.50 | 2.18 | 11.19 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,013.98 | 2.18 | 10.89 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,069.70 | 2.18 | 11.19 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,013.98 | 2.18 | 10.89 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,076.30 | 0.91 | 4.68 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.28 | 0.91 | 4.56 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Industry
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by industry of the Fund's total investment securities.
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Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 1
TA IDEX Transamerica Science & Technology
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (99.2%) | |||||||||||
Business Services (5.7%) | |||||||||||
Akamai Technologies, Inc. ‡† | 59,000 | $ | 2,601 | ||||||||
Valueclick, Inc. ‡ | 54,500 | 1,559 | |||||||||
Communication (1.9%) | |||||||||||
American Tower Corp.–Class A ‡ | 36,500 | 1,387 | |||||||||
Communications Equipment (13.1%) | |||||||||||
Corning, Inc. ‡ | 46,500 | 1,103 | |||||||||
Network Appliance, Inc. ‡ | 45,000 | 1,674 | |||||||||
QUALCOMM, Inc. | 62,250 | 2,727 | |||||||||
Research In Motion, Ltd. ‡ | 30,700 | 4,039 | |||||||||
Computer & Data Processing Services (24.0%) | |||||||||||
Adobe Systems, Inc. ‡ | 40,000 | 1,662 | |||||||||
Cerner Corp. ‡† | 25,000 | 1,331 | |||||||||
Electronic Arts, Inc. ‡ | 28,000 | 1,411 | |||||||||
F5 Networks, Inc. ‡ | 38,500 | 2,956 | |||||||||
Google, Inc.–Class A ‡ | 7,200 | 3,394 | |||||||||
Informatica Corp. ‡ | 116,000 | 1,707 | |||||||||
Juniper Networks, Inc. ‡ | 86,000 | 1,923 | |||||||||
Microsoft Corp. | 25,500 | 763 | |||||||||
NetFlix, Inc. ‡† | 78,500 | 1,740 | |||||||||
Veraz Networks, Inc. ‡† | 86,840 | 603 | |||||||||
Computer & Office Equipment (18.3%) | |||||||||||
Apple, Inc. ‡ | 56,500 | 5,639 | |||||||||
EMC Corp. ‡ | 113,100 | 1,717 | |||||||||
Logitech International SA ‡† | 79,000 | 2,126 | |||||||||
Nuance Communications, Inc. ‡† | 133,000 | 2,050 | |||||||||
Sandisk Corp. ‡† | 41,500 | 1,803 | |||||||||
Electronic Components & Accessories (3.5%) | |||||||||||
Sunpower Corp.–Class A ‡† | 42,400 | 2,573 | |||||||||
Entertainment (1.8%) | |||||||||||
International Game Technology | 34,500 | 1,316 | |||||||||
Instruments & Related Products (4.7%) | |||||||||||
Sirf Technology Holdings, Inc. ‡† | 79,000 | 1,917 | |||||||||
Trimble Navigation, Ltd. ‡ | 53,000 | 1,520 | |||||||||
Medical Instruments & Supplies (6.0%) | |||||||||||
Intuitive Surgical, Inc. ‡† | 19,000 | 2,464 | |||||||||
NuVasive, Inc. ‡† | 74,000 | 1,907 | |||||||||
Motion Pictures (2.9%) | |||||||||||
Macrovision Corp. ‡† | 86,000 | 2,087 |
Shares | Value | ||||||||||
Pharmaceuticals (4.3%) | |||||||||||
Allergan, Inc. | 13,000 | $ | 1,576 | ||||||||
Gilead Sciences, Inc. ‡ | 19,200 | 1,569 | |||||||||
Security & Commodity Brokers (3.0%) | |||||||||||
Chicago Mercantile Exchange † | 4,300 | 2,222 | |||||||||
Telecommunications (10.0%) | |||||||||||
AT&T, Inc. | 37,150 | 1,438 | |||||||||
Equinix, Inc. ‡† | 20,800 | 1,736 | |||||||||
MetroPCS Communications, Inc. ‡† | 69,300 | 1,944 | |||||||||
NII Holdings, Inc. ‡† | 28,000 | 2,149 | |||||||||
Total Common Stocks (cost: $61,565) | 72,333 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (33.6%) | |||||||||||
Debt (33.6%) | |||||||||||
Bank Notes (2.1%) | |||||||||||
Bank of America 5.31%, due 05/17/2007 * 5.27%, due 06/18/2007 * | $763 763 | $763 763 | |||||||||
Commercial Paper (7.3%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 306 | 306 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 296 | 296 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 203 153 | 203 153 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 153 | 153 | |||||||||
CRC Funding LLC–144A 5.28%, due 05/16/2007 | 153 | 153 | |||||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 153 | 153 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 5.28%, due 05/24/2007 | 153 153 | 153 153 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 305 | 305 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 299 | 299 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 305 | 305 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 305 | 305 |
The notes to the financial statements are an integral part of this report.
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TA IDEX Transamerica Science & Technology 2
TA IDEX Transamerica Science & Technology
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | $604 153 153 | $604 153 153 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 153 153 153 201 | 153 153 153 201 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 229 | 229 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 153 | 153 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 305 | 305 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 153 | 153 | |||||||||
Euro Dollar Overnight (4.2%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 153 | 153 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 305 | 305 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 305 | 305 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 305 | 305 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 305 | 305 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 305 | 305 | |||||||||
Royal Bank of Canada 5.30%, due 05/01/2007 | 305 | 305 | |||||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 153 | 153 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 305 | 305 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 579 | 579 | |||||||||
Euro Dollar Terms (12.2%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 305 | 305 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 153 | 153 |
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | $214 | $214 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 305 305 153 153 305 | 305 305 153 153 305 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 153 305 | 153 305 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 458 153 | 458 153 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 305 | 305 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 305 | 305 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 458 458 305 | 458 458 305 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 458 | 458 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 305 153 305 | 305 153 305 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 153 | 153 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 305 | 305 | |||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | 305 | 305 | |||||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 305 611 458 763 | 305 611 458 763 | |||||||||
Repurchase Agreements (7.8%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $846 on 05/01/2007 | 846 | 846 |
The notes to the financial statements are an integral part of this report.
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TA IDEX Transamerica Science & Technology
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Repurchase Agreements (continued) | |||||||||||
Merrill Lynch & Co. 5.21%, dated | |||||||||||
04/30/2007 to be repurchased at | |||||||||||
$3,359 on 05/01/2007 | $ | 3,359 | $ | 3,359 | |||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,471 on 05/01/2007 | 1,471 | 1,471 | |||||||||
Total Security Lending Collateral (cost: $24,483) | 24,483 | ||||||||||
Total Investment Securities (cost: $86,048) # | $ | 96,816 |
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $23,642.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $5,822, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $86,046. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $11,966 and $1,196, respectively. Net unrealized appreciation for tax purposes is $10,770.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $4,583 or 6.3% of the net assets of the Fund.
The notes to the financial statements are an integral part of this report.
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TA IDEX Transamerica Science & Technology 4
TA IDEX Transamerica Science & Technology
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $86,048) (including securities loaned of $23,642) | $ | 96,816 | |||||
Cash | 661 | ||||||
Receivables: | |||||||
Shares of beneficial interest sold | 3 | ||||||
Interest | 6 | ||||||
Income from loaned securities | 20 | ||||||
Dividends | 7 | ||||||
Other | 4 | ||||||
97,517 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 31 | ||||||
Management and advisory fees | 45 | ||||||
Distribution and service fees | 6 | ||||||
Transfer agent fees | 8 | ||||||
Administration fees | 1 | ||||||
Payable for collateral for securities on loan | 24,483 | ||||||
Other | 16 | ||||||
24,590 | |||||||
Net Assets | $ | 72,927 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 62,845 | |||||
Undistributed (accumulated) net investment income (loss) | (179 | ) | |||||
Undistributed (accumulated) net realized gain (loss) from investment securities | (507 | ) | |||||
Net unrealized appreciation (depreciation) on investment securities | 10,768 | ||||||
Net Assets | $ | 72,927 | |||||
Net Assets by Class: | |||||||
Class A | $ | 5,239 | |||||
Class B | 3,946 | ||||||
Class C | 1,721 | ||||||
Class I | 62,021 | ||||||
Shares Outstanding: | |||||||
Class A | 1,250 | ||||||
Class B | 987 | ||||||
Class C | 431 | ||||||
Class I | 14,664 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 4.19 | |||||
Class B | 4.00 | ||||||
Class C | 3.99 | ||||||
Class I | 4.23 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 4.43 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Interest | $ | 38 | |||||
Dividends (net of withholding taxes on foreign dividends of $2) | 93 | ||||||
Income from loaned securities–net | 70 | ||||||
201 | |||||||
Expenses: | |||||||
Management and advisory fees | 277 | ||||||
Distribution and service fees: | |||||||
Class A | 9 | ||||||
Class B | 20 | ||||||
Class C | 10 | ||||||
Transfer agent fees: | |||||||
Class A | 16 | ||||||
Class B | 14 | ||||||
Class C | 5 | ||||||
Printing and shareholder reports | 5 | ||||||
Custody fees | 6 | ||||||
Administration fees | 7 | ||||||
Legal fees | 1 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 1 | ||||||
Registration fees | 17 | ||||||
Other | 2 | ||||||
Total expenses | 400 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (9 | ) | |||||
Class B | (9 | ) | |||||
Class C | (2 | ) | |||||
Total reimbursed expenses | (20 | ) | |||||
Net expenses | 380 | ||||||
Net Investment Income (Loss) | (179 | ) | |||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | – | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | 5,347 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 5,347 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 5,168 |
The notes to the financial statements are an integral part of this report.
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Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 5
TA IDEX Transamerica Science & Technology
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | (179 | ) | $ | (379 | ) | |||||
Net realized gain (loss) from investment securities | – | (509 | ) | ||||||||
Change in unrealized appreciation (depreciation) on investment securities | 5,347 | 4,065 | |||||||||
5,168 | 3,177 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net realized gains: | |||||||||||
Class A | – | (105 | ) | ||||||||
Class B | – | (81 | ) | ||||||||
Class C | – | (42 | ) | ||||||||
Class I | – | (839 | ) | ||||||||
– | (1,067 | ) | |||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 450 | 551 | |||||||||
Class B | 109 | 329 | |||||||||
Class C | 84 | 258 | |||||||||
Class I | – | 60,735 | |||||||||
643 | 61,873 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | – | 103 | |||||||||
Class B | – | 76 | |||||||||
Class C | – | 37 | |||||||||
Class I | – | 839 | |||||||||
– | 1,055 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (1,215 | ) | (63,110 | ) | |||||||
Class B | (642 | ) | (1,611 | ) | |||||||
Class C | (538 | ) | (1,065 | ) | |||||||
Class I | – | (3,259 | ) | ||||||||
(2,395 | ) | (69,045 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (b) | – | (b) | |||||||
Class B | – | – | (b) | ||||||||
Class C | – | – | (b) | ||||||||
– | (b) | – | (b) | ||||||||
Automatic conversions: | |||||||||||
Class A | 4 | 7 | |||||||||
Class B | (4 | ) | (7 | ) | |||||||
– | – | ||||||||||
(1,752 | ) | (6,117 | ) | ||||||||
Net increase (decrease) in net assets | 3,416 | (4,007 | ) |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Net Assets: | |||||||||||
Beginning of period | $ | 69,511 | $ | 73,518 | |||||||
End of period | $ | 72,927 | $ | 69,511 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | (179 | ) | $ | – | ||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 110 | 138 | |||||||||
Class B | 28 | 85 | |||||||||
Class C | 21 | 68 | |||||||||
Class I | – | 15,252 | |||||||||
159 | 15,543 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | – | 25 | |||||||||
Class B | – | 19 | |||||||||
Class C | – | 9 | |||||||||
Class I | – | 206 | |||||||||
– | 259 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (298 | ) | (15,859 | ) | |||||||
Class B | (165 | ) | (422 | ) | |||||||
Class C | (138 | ) | (285 | ) | |||||||
Class I | – | (794 | ) | ||||||||
(601 | ) | (17,360 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 1 | 2 | |||||||||
Class B | (1 | ) | (2 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (187 | ) | (15,694 | ) | |||||||
Class B | (138 | ) | (320 | ) | |||||||
Class C | (117 | ) | (208 | ) | |||||||
Class I | – | 14,664 | |||||||||
(442 | ) | (1,558 | ) |
(a) Class I was offered for investment on November 15, 2005.
(b) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 6
TA IDEX Transamerica Science & Technology
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 3.91 | $ | (0.02 | ) | $ | 0.30 | $ | 0.28 | $ | – | $ | – | $ | – | $ | 4.19 | |||||||||||||||||||||
10/31/2006 | 3.82 | (0.03 | ) | 0.18 | 0.15 | – | (0.06 | ) | (0.06 | ) | 3.91 | ||||||||||||||||||||||||||||
10/31/2005 | 3.80 | 0.03 | 0.02 | 0.05 | (0.03 | ) | – | (0.03 | ) | 3.82 | |||||||||||||||||||||||||||||
10/31/2004 | 3.61 | (0.04 | ) | 0.23 | 0.19 | – | – | – | 3.80 | ||||||||||||||||||||||||||||||
10/31/2003 | 2.56 | (0.04 | ) | 1.09 | 1.05 | – | – | – | 3.61 | ||||||||||||||||||||||||||||||
10/31/2002 | 3.63 | (0.05 | ) | (1.02 | ) | (1.07 | ) | – | – | – | 2.56 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 3.74 | (0.03 | ) | 0.29 | 0.26 | – | – | – | 4.00 | |||||||||||||||||||||||||||||
10/31/2006 | 3.68 | (0.06 | ) | 0.18 | 0.12 | – | (0.06 | ) | (0.06 | ) | 3.74 | ||||||||||||||||||||||||||||
10/31/2005 | 3.68 | (0.02 | ) | 0.02 | – | – | – | – | 3.68 | ||||||||||||||||||||||||||||||
10/31/2004 | 3.51 | (0.06 | ) | 0.23 | 0.17 | – | – | – | 3.68 | ||||||||||||||||||||||||||||||
10/31/2003 | 2.50 | (0.06 | ) | 1.07 | 1.01 | – | – | – | 3.51 | ||||||||||||||||||||||||||||||
10/31/2002 | 3.58 | (0.08 | ) | (1.00 | ) | (1.08 | ) | – | – | – | 2.50 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 3.73 | (0.03 | ) | 0.29 | 0.26 | – | – | – | 3.99 | |||||||||||||||||||||||||||||
10/31/2006 | 3.67 | (0.06 | ) | 0.18 | 0.12 | – | (0.06 | ) | (0.06 | ) | 3.73 | ||||||||||||||||||||||||||||
10/31/2005 | 3.67 | (0.02 | ) | 0.02 | – | – | – | – | 3.67 | ||||||||||||||||||||||||||||||
10/31/2004 | 3.51 | (0.07 | ) | 0.23 | 0.16 | – | – | – | 3.67 | ||||||||||||||||||||||||||||||
10/31/2003 | 2.45 | (0.06 | ) | 1.12 | 1.06 | – | – | – | 3.51 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 3.93 | (0.01 | ) | 0.31 | 0.30 | – | – | – | 4.23 | |||||||||||||||||||||||||||||
10/31/2006 | 3.98 | (0.01 | ) | 0.02 | 0.01 | – | (0.06 | ) | (0.06 | ) | 3.93 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 7.20 | % | $ | 5,239 | 1.53 | % | 1.86 | % | (0.96 | )% (i) | 40 | % | ||||||||||||||||||
10/31/2006 | 3.78 | 5,616 | 1.53 | 1.67 | (0.72 | ) (i) | 94 | ||||||||||||||||||||||||
10/31/2005 | 1.23 | 65,423 | 1.32 | 1.32 | 0.63 | (i) | 73 | ||||||||||||||||||||||||
10/31/2004 | 5.26 | 119,985 | 1.36 | 1.36 | (1.12 | ) | 41 | ||||||||||||||||||||||||
10/31/2003 | 41.02 | 78,289 | 1.55 | 1.90 | (1.23 | ) | 24 | ||||||||||||||||||||||||
10/31/2002 | (29.45 | ) | 6,445 | 1.55 | 2.61 | (1.40 | ) | 64 | |||||||||||||||||||||||
Class B | 4/30/2007 | 6.95 | 3,946 | 2.18 | 2.62 | (1.61 | ) | 40 | |||||||||||||||||||||||
10/31/2006 | 3.10 | 4,208 | 2.18 | 2.57 | (1.58 | ) (i) | 94 | ||||||||||||||||||||||||
10/31/2005 | 0.00 | (h) | 5,316 | 2.20 | 2.68 | (0.58 | ) (i) | 73 | |||||||||||||||||||||||
10/31/2004 | 4.84 | 6,874 | 1.91 | 1.91 | (1.68 | ) | 41 | ||||||||||||||||||||||||
10/31/2003 | 40.40 | 7,864 | 2.20 | 2.55 | (1.88 | ) | 24 | ||||||||||||||||||||||||
10/31/2002 | (30.12 | ) | 4,348 | 2.20 | 3.26 | (2.05 | ) | 64 | |||||||||||||||||||||||
Class C | 4/30/2007 | 6.97 | 1,721 | 2.18 | 2.43 | (1.61 | ) | 40 | |||||||||||||||||||||||
10/31/2006 | 3.11 | 2,045 | 2.18 | 2.35 | (1.57 | ) (i) | 94 | ||||||||||||||||||||||||
10/31/2005 | 0.00 | (h) | 2,779 | 2.20 | 2.65 | (0.51 | ) (i) | 73 | |||||||||||||||||||||||
10/31/2004 | 4.56 | 4,089 | 2.20 | 2.60 | (1.94 | ) | 41 | ||||||||||||||||||||||||
10/31/2003 | 43.27 | 739 | 2.20 | 2.55 | (1.88 | ) | 24 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 7.63 | 62,021 | 0.91 | 0.91 | (0.35 | ) | 40 | |||||||||||||||||||||||
10/31/2006 | 0.12 | 57,642 | 0.92 | 0.92 | (0.35 | ) | 94 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 7
TA IDEX Transamerica Science & Technology
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable periods without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Rounds to less than 0.01%.
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 8
TA IDEX Transamerica Science & Technology
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
Effective October 27, 2006, TA IDEX Great Companies-Technologysm changed its name to TA IDEX Transamerica Science & Technology ("the Fund") and changed its sub-advisor from Great Companies, L.L.C. ("Great Companies") to Transamerica Investment Management, LLC ("TIM").
The Fund is "non-diversified" under the 1940 Act.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $4 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $30, earned by IBT for its services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 9
TA IDEX Transamerica Science & Technology
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
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 Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Growth Portfolio | $ | 16,677 | 22.87 | % | |||||||
TA IDEX Asset Allocation– Moderate Portfolio | 12,931 | 17.73 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 32,413 | 44.45 | % | ||||||||
Total | $ | 62,021 | 85.05 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.78% of the first $500 million of ANA
0.70% of ANA over $500 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.18% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
Reimbursement of Class Expenses | Available for Recapture Through | ||||||||||
Fiscal Year 2006 | |||||||||||
Class A | $ | 12 | 10/31/2009 | ||||||||
Class B | 19 | 10/31/2009 | |||||||||
Class C | 4 | 10/31/2009 | |||||||||
Fiscal Year 2005 | |||||||||||
Class B | 30 | 10/31/2008 | |||||||||
Class C | 15 | 10/31/2008 | |||||||||
Fiscal Year 2004 | |||||||||||
Class C | 7 | 10/31/2007 |
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 8 | |||||
Retained by Underwriter | 1 | ||||||
Contingent Deferred Sales Charge | 4 |
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 10
TA IDEX Transamerica Science & Technology
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $32 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $4.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $4. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 28,341 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 27,758 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, net operating losses, distribution reclasses, capital loss carryforward and deferred compensation.
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 509 | October 31, 2014 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 11
TA IDEX Transamerica Science & Technology
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 12
TA IDEX Transamerica Science & Technology
INVESTMENT ADVISORY AGREEMENT – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Science & Technology (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") to determine whether the agreement should be renewed for a one-year period. The Board noted that it had recently approved an Investment Sub-Advisory Agreement between TFAI and Transamerica Investment Management, LLC ("TIM") to appoint TIM to replace Great Companies, LLC ("Great Companies") as sub-adviser to the Fund for an initial two-year period at a meeting of the Board held on July 18 and 19, 2006. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and TIM such information as they deemed reasonably necessary to evaluate the proposed agreement. The Trustees also carefully considered the information that they had received throughout the year from TFAI, TIM and Great Companies (such as in-person presentations by TIM and Great Companies) 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, 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 believe, in light of the legal advice furnished to them by TA IDEX counsel and independent lega l 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and Great Companies to the Fund in the past, as well as the services anticipated to be provided to the Fund by TFAI and TIM in the future. The Board concluded that TFAI is capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past; TFAI's management capabilities demonstrated with respect to the portfolios it manages, including the Fund, and the experience, capability and integrity of TFAI's senior management, financial resources and management oversight process. The Trustees also concluded that TFAI proposed to provide investment and related services that are appropriate in scope and extent in light of the Fund's operations, the competiti ve landscape of the investment company industry and investor needs, and that TFAI's future obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Board noted the Fund failed to perform competitively as compared to a peer group of funds, although the performance record of the Fund was the result of the prior sub-adviser, Great Companies, which has been replaced by TIM on August 1, 2006. The Board concluded that the change in sub-adviser was too recent to evaluate the performance of TIM and the prospects for improved performance, and determined to scrutinize the performance of TIM closely in the future with the goal of improving relative investment performance. On the basis of its assessment of the nature, extent and quality o f the investment advisory services to be provided or procured by TFAI, the Board concluded that TFAI is capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that performance records of TFAI indicate that its management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Board favorably noted that the contractual advisory fees and the to tal expenses of the Fund ranked in the first quintile compared to its peers. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are generally lower than industry averages. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, as well as the entirety of TFAI's and its affiliates'
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 13
TA IDEX Transamerica Science & Technology (continued)
service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, and TFAI and its affiliates.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund's advisory fee schedules appropriately benefits investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI, in the future.
Benefits (such as soft dollars) to TFAI or its affiliates from their relationship with the Fund. The Board noted that it receives quarterly reports on TIM's brokerage practices, including any "soft dollar" benefits its receives. The Board concluded that other benefits derived by TFAI, its affiliates and TIM from their relationship with the Fund are reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that TIM's "soft dollar" arrangements are consistent with applicable law, including "best execution" requirements in particular. The Board also noted that TIM is participating in a brokerage program pursuant to which a portion of brokerage commissions paid by the Fund is recaptured for th e benefit of the Fund and its shareholders, thus limiting the amount of "soft dollar" arrangements TIM may engage in with respect to the Fund's brokerage transactions. In addition, the Trustees determined that the administration, fund accounting and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of TIM. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders , and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Science & Technology 14
TA IDEX Transamerica Small/Mid Cap Value
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,145.20 | 1.43 | % | $ | 7.61 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.70 | 1.43 | 7.15 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,141.60 | 2.10 | 11.15 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.38 | 2.10 | 10.49 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,141.90 | 2.05 | 10.89 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,014.63 | 2.05 | 10.24 | |||||||||||||||
Class I | |||||||||||||||||||
Actual | 1,000.00 | 1,149.00 | 0.85 | 4.53 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,020.58 | 0.85 | 4.26 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by sector of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 1
TA IDEX Transamerica Small/Mid Cap Value
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Shares | Value | ||||||||||
COMMON STOCKS (97.0%) | |||||||||||
Apparel Products (2.1%) | |||||||||||
Hanesbrands, Inc. ‡ | 426,300 | $ | 11,336 | ||||||||
Computer & Data Processing Services (4.8%) | |||||||||||
Cogent, Inc. ‡† | 998,615 | 14,021 | |||||||||
Fair Isaac Corp. | 325,000 | 11,606 | |||||||||
Computer & Office Equipment (0.9%) | |||||||||||
Hypercom Corp. ‡ | 864,700 | 5,024 | |||||||||
Construction (8.3%) | |||||||||||
Chemed Corp. | 335,000 | 16,850 | |||||||||
McDermott International, Inc. ‡ | 520,000 | 27,903 | |||||||||
Electric Services (3.1%) | |||||||||||
CMS Energy Corp. | 900,000 | 16,668 | |||||||||
Electric, Gas & Sanitary Services (4.0%) | |||||||||||
ALLETE, Inc. † | 226,666 | 10,973 | |||||||||
Republic Services, Inc. | 375,000 | 10,474 | |||||||||
Electronic & Other Electric Equipment (7.2%) | |||||||||||
Acuity Brands, Inc. | 330,000 | 19,510 | |||||||||
Genlyte Group, Inc. ‡ | 245,000 | 19,112 | |||||||||
Holding & Other Investment Offices (12.4%) | |||||||||||
Annaly Capital Management, Inc. REIT † | 930,000 | 14,796 | |||||||||
Host Hotels & Resorts, Inc. REIT † | 620,000 | 15,897 | |||||||||
LTC Properties, Inc. REIT | 100,000 | 2,507 | |||||||||
Omega Healthcare Investors, Inc. REIT | 875,000 | 14,700 | |||||||||
Parkway Properties, Inc. REIT | 116,700 | 6,185 | |||||||||
Sunstone Hotel Investors, Inc. REIT † | 425,000 | 12,121 | |||||||||
Western Copper Corp. ‡ | 238,100 | 421 | |||||||||
Industrial Machinery & Equipment (1.1%) | |||||||||||
Allis-Chalmers Corp. ‡† | 300,000 | 5,805 | |||||||||
Insurance (6.7%) | |||||||||||
AMBAC Financial Group, Inc. † | 140,000 | 12,852 | |||||||||
HCC Insurance Holdings, Inc. † | 422,500 | 12,954 | |||||||||
PartnerRe, Ltd. † | 140,000 | 10,083 | |||||||||
Management Services (4.1%) | |||||||||||
FTI Consulting, Inc. ‡† | 600,000 | 22,062 | |||||||||
Medical Instruments & Supplies (2.2%) | |||||||||||
Orthofix International NV ‡ | 221,000 | 11,647 | |||||||||
Metal Mining (1.2%) | |||||||||||
Goldcorp, Inc. † | 276,842 | 6,738 | |||||||||
Oil & Gas Extraction (13.5%) | |||||||||||
Aurora Oil & Gas Corp. ‡† | 2,100,345 | 5,524 | |||||||||
Bronco Drilling Co., Inc. ‡† | 275,825 | 4,987 | |||||||||
Cabot Oil & Gas Corp. | 125,000 | 4,552 |
Shares | Value | ||||||||||
Oil & Gas Extraction (continued) | |||||||||||
Edge Petroleum Corp. ‡† | 500,000 | $ | 6,865 | ||||||||
Helix Energy Solutions Group, Inc. ‡† | 325,000 | 12,434 | |||||||||
Superior Energy Services, Inc. ‡† | 730,000 | 26,521 | |||||||||
Todco–Class A ‡ | 255,150 | 11,599 | |||||||||
Pharmaceuticals (0.5%) | |||||||||||
ARIAD Pharmaceuticals, Inc. ‡† | 603,300 | 2,781 | |||||||||
Primary Metal Industries (1.5%) | |||||||||||
Claymont Steel Holdings, Inc. ‡ | 352,835 | 8,158 | |||||||||
Restaurants (1.6%) | |||||||||||
O'Charley's, Inc. ‡ | 400,000 | 8,444 | |||||||||
Rubber & Misc. Plastic Products (2.3%) | |||||||||||
Jarden Corp. ‡† | 290,000 | 12,221 | |||||||||
Savings Institutions (0.8%) | |||||||||||
Partners Trust Financial Group, Inc. | 400,000 | 4,432 | |||||||||
Telecommunications (2.6%) | |||||||||||
Citizens Communications Co. † | 900,000 | 14,013 | |||||||||
Water Transportation (14.1%) | |||||||||||
Aegean Marine Petroleum Network, Inc. | 466,190 | 7,249 | |||||||||
Aries Maritime Transport, Ltd. † | 1,007,000 | 9,456 | |||||||||
DryShips, Inc. | 630,000 | 22,289 | |||||||||
Genco Shipping & Trading, Ltd. | 579,700 | 20,730 | |||||||||
Omega Navigation Enterprises, Inc.–Class A | 549,700 | 10,868 | |||||||||
StealthGas, Inc. | 321,500 | 5,112 | |||||||||
Wholesale Trade Nondurable Goods (2.0%) | |||||||||||
Dean Foods Co. | 295,000 | 10,747 | |||||||||
Total Common Stocks (cost: $371,445) | 521,227 | ||||||||||
Principal | Value | ||||||||||
SECURITY LENDING COLLATERAL (20.1%) | |||||||||||
Debt (20.1%) | |||||||||||
Bank Notes (1.2%) | |||||||||||
Bank of America | |||||||||||
5.31%, due 05/17/2007 * | $ | 3,369 | $ | 3,369 | |||||||
5.27%, due 06/18/2007 * | 3,369 | 3,369 | |||||||||
Commercial Paper (4.4%) | |||||||||||
Bear Stearns & Co. 5.31%, due 07/10/2007 | 1,346 | 1,346 | |||||||||
CAFCO LLC–144A 5.29%, due 05/31/2007 | 1,305 | 1,305 | |||||||||
Charta LLC–144A 5.30%, due 05/09/2007 5.29%, due 06/13/2007 | 897 674 | 897 674 | |||||||||
Compass Securitization LLC–144A 5.29%, due 05/25/2007 | 674 | 674 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 2
TA IDEX Transamerica Small/Mid Cap Value
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Commercial Paper (continued) | |||||||||||
CRC Funding LLC–144A | |||||||||||
5.28%, due 05/16/2007 | $ | 674 | $ | 674 | |||||||
Fairway Finance Corp.–144A 5.30%, due 05/07/2007 | 674 | 674 | |||||||||
Falcon Asset Securitization Corp.–144A 5.29%, due 05/07/2007 674 674 5.28%, due 05/24/2007 | 674 | 674 | |||||||||
Greyhawk Funding LLC–144A 5.30%, due 05/02/2007 | 1,347 | 1,347 | |||||||||
Liberty Street–144A 5.29%, due 05/03/2007 | 1,319 | 1,319 | |||||||||
Morgan Stanley 5.32%, due 08/01/2007 | 1,347 | 1,347 | |||||||||
Old Line Funding LLC–144A 5.30%, due 05/15/2007 | 1,347 | 1,347 | |||||||||
Paradigm Funding LLC–144A 5.28%, due 05/22/2007 5.30%, due 05/29/2007 5.29%, due 05/31/2007 | 2,667 674 674 | 2,667 674 674 | |||||||||
Ranger Funding Co. LLC–144A 5.29%, due 05/01/2007 5.29%, due 05/17/2007 5.28%, due 06/01/2007 5.29%, due 06/19/2007 | 674 674 674 888 | 674 674 674 888 | |||||||||
Sheffield Receivables Corp.–144A 5.29%, due 05/23/2007 | 1,011 | 1,011 | |||||||||
Three Pillars Funding LLC–144A 5.28%, due 05/24/2007 | 674 | 674 | |||||||||
Variable Funding Capital Co. LLC–144A 5.28%, due 05/17/2007 | 1,347 | 1,347 | |||||||||
Yorktown Capital LLC 5.30%, due 05/14/2007 | 674 | 674 | |||||||||
Euro Dollar Overnight (2.5%) | |||||||||||
Bank of Nova Scotia 5.28%, due 05/01/2007 | 674 | 674 | |||||||||
Citigroup 5.31%, due 05/04/2007 | 1,347 | 1,347 | |||||||||
Deutsche Bank 5.28%, due 05/03/2007 | 1,347 | 1,347 | |||||||||
First Tennessee National Corp. 5.31%, due 05/02/2007 | 1,347 | 1,347 | |||||||||
National Australia Bank 5.30%, due 05/01/2007 | 1,347 | 1,347 | |||||||||
Rabobank Nederland 5.30%, due 05/01/2007 | 1,347 | 1,347 |
Principal | Value | ||||||||||
Euro Dollar Overnight (continued) | |||||||||||
Royal Bank of Canada | |||||||||||
5.30%, due 05/01/2007 | $ | 1,347 | $ | 1,347 | |||||||
Royal Bank of Scotland 5.29%, due 05/07/2007 | 674 | 674 | |||||||||
Societe Generale 5.31%, due 05/01/2007 | 1,348 | 1,348 | |||||||||
Svenska Handlesbanken 5.31%, due 05/01/2007 | 2,556 | 2,556 | |||||||||
Euro Dollar Terms (7.3%) | |||||||||||
BancoBilbao Vizcaya Argentaria SA 5.31%, due 05/14/2007 | 1,348 | 1,348 | |||||||||
Bank of Montreal 5.28%, due 05/18/2007 | 674 | 674 | |||||||||
Bank of Nova Scotia 5.28%, due 05/09/2007 | 943 | 943 | |||||||||
Barclays 5.29%, due 05/07/2007 5.30%, due 05/16/2007 5.29%, due 05/21/2007 5.30%, due 06/04/2007 5.29%, due 06/08/2007 | 1,348 1,348 674 674 1,348 | 1,348 1,348 674 674 1,348 | |||||||||
Calyon 5.30%, due 05/17/2007 5.31%, due 05/24/2007 | 674 1,348 | 674 1,348 | |||||||||
Canadian Imperial Bank of Commerce 5.28%, due 05/16/2007 5.28%, due 05/29/2007 | 2,021 674 | 2,021 674 | |||||||||
Credit Suisse First Boston Corp. 5.30%, due 05/17/2007 | 1,348 | 1,348 | |||||||||
Deutsche Bank 5.30%, due 05/15/2007 | 1,348 | 1,348 | |||||||||
Fortis Bank 5.28%, due 05/21/2007 5.28%, due 05/25/2007 5.30%, due 06/25/2007 | 2,021 2,021 1,348 | 2,021 2,021 1,348 | |||||||||
HBOS Halifax Bank of Scotland 5.30%, due 06/13/2007 | 2,021 | 2,021 | |||||||||
Royal Bank of Scotland 5.30%, due 05/08/2007 5.30%, due 05/09/2007 5.31%, due 05/25/2007 | 1,348 674 1,348 | 1,348 674 1,348 | |||||||||
Skandinaviska Enskilda Banken AB 5.28%, due 05/15/2007 | 674 | 674 | |||||||||
Swedbank AB 5.30%, due 05/11/2007 | 1,348 | 1,348 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 3
TA IDEX Transamerica Small/Mid Cap Value
SCHEDULE OF INVESTMENTS (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Euro Dollar Terms (continued) | |||||||||||
Toronto Dominion Bank 5.28%, due 05/10/2007 | $ | 1,348 | $ | 1,348 | |||||||
UBS AG 5.28%, due 06/01/2007 5.29%, due 06/12/2007 5.29%, due 06/15/2007 5.29%, due 06/18/2007 | 1,348 2,695 2,021 3,369 | 1,348 2,695 2,021 3,369 | |||||||||
Repurchase Agreements (4.7%) †† | |||||||||||
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $3,731on 05/01/2007 | 3,731 | 3,731 |
Principal | Value | ||||||||||
Repurchase Agreements (continued) | |||||||||||
Merrill Lynch & Co. 5.21%, | |||||||||||
dated 04/30/2007 to be repurchased | |||||||||||
at $14,824 on 05/01/2007 | $ | 14,824 | $ | 14,824 | |||||||
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $6,493 on 05/01/2007 | 6,493 | 6,493 | |||||||||
Total Security Lending Collateral (cost: $108,057) | 108,057 | ||||||||||
Total Investment Securities (cost: $479,502) # | $ | 629,284 |
The notes to the financial statements are an integral part of this report.
NOTES TO SCHEDULE OF INVESTMENTS:
‡ Non-income producing.
† At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $103,546.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
†† Cash collateral for the Repurchase Agreements, valued at $25,694, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00%–9.12% and 05/30/2007–02/01/2037, respectively.
# Aggregate cost for federal income tax purposes is $480,599. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $157,242 and $8,557, respectively. Net unrealized appreciation for tax purposes is $148,685.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $20,216 or 3.8% of the net assets of the Fund.
REIT Real Estate Investment Trust
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 4
TA IDEX Transamerica Small/Mid Cap Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $479,502) (including securities loaned of $103,546) | $ | 629,284 | |||||
Cash | 15,822 | ||||||
Receivables: | |||||||
Investment securities sold | 359 | ||||||
Shares of beneficial interest sold | 586 | ||||||
Interest | 44 | ||||||
Dividends | 424 | ||||||
Other | 18 | ||||||
646,537 | |||||||
Liabilities: | |||||||
Accounts payable and accrued liabilities: | |||||||
Shares of beneficial interest redeemed | 421 | ||||||
Management and advisory fees | 354 | ||||||
Distribution and service fees | 85 | ||||||
Transfer agent fees | 22 | ||||||
Administration fees | 9 | ||||||
Payable for collateral for securities on loan | 108,057 | ||||||
Other | 69 | ||||||
109,017 | |||||||
Net Assets | $ | 537,520 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 338,479 | |||||
Undistributed (accumulated) net investment income (loss) | 1,769 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities | 47,490 | ||||||
Net unrealized appreciation (depreciation) on investment securities | 149,782 | ||||||
Net Assets | $ | 537,520 | |||||
Net Assets by Class: | |||||||
Class A | $ | 53,335 | |||||
Class B | 47,057 | ||||||
Class C | 35,780 | ||||||
Class I | 401,348 | ||||||
Shares Outstanding: | |||||||
Class A | 2,683 | ||||||
Class B | 2,451 | ||||||
Class C | 1,871 | ||||||
Class I | 20,132 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 19.88 | |||||
Class B | 19.20 | ||||||
Class C | 19.13 | ||||||
Class I | 19.94 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 21.04 |
(a) 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 and I shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends (net of withholding taxes on foreign dividends of $3) | $ | 7,019 | |||||
Interest | 263 | ||||||
Income from loaned securities–net | 207 | ||||||
7,489 | |||||||
Expenses: | |||||||
Management and advisory fees | 2,241 | ||||||
Distribution and service fees: | |||||||
Class A | 86 | ||||||
Class B | 228 | ||||||
Class C | 159 | ||||||
Transfer agent fees: | |||||||
Class A | 54 | ||||||
Class B | 56 | ||||||
Class C | 31 | ||||||
Class I | – | (b) | |||||
Printing and shareholder reports | 19 | ||||||
Custody fees | 31 | ||||||
Administration fees | 56 | ||||||
Legal fees | 7 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 12 | ||||||
Registration fees | 33 | ||||||
Other | 4 | ||||||
Total expenses | 3,027 | ||||||
Net Investment Income (Loss) | 4,462 | ||||||
Net Realized and Unrealized Gain (Loss) | |||||||
Realized gain (loss) from investment securities | 48,065 | ||||||
Increase (decrease) in unrealized appreciation (depreciation) on investment securities | 22,261 | ||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities | 70,326 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 74,788 |
(b) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 5
TA IDEX Transamerica Small/Mid Cap Value
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 4,462 | $ | 5,153 | |||||||
Net realized gain (loss) from investment securities | 48,065 | 10,807 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities | 22,261 | 50,680 | |||||||||
74,788 | 66,640 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (340 | ) | (780 | ) | |||||||
Class B | – | (88 | ) | ||||||||
Class C | (64 | ) | (40 | ) | |||||||
Class I | (6,045 | ) | – | ||||||||
(6,449 | ) | (908 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (849 | ) | (2,553 | ) | |||||||
Class B | (821 | ) | (3,216 | ) | |||||||
Class C | (535 | ) | (1,477 | ) | |||||||
Class I | (8,419 | ) | (24,100 | ) | |||||||
(10,624 | ) | (31,346 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 8,136 | 21,467 | |||||||||
Class B | 2,438 | 9,292 | |||||||||
Class C | 6,397 | 12,958 | |||||||||
Class I | 14,641 | 435,985 | |||||||||
31,612 | 479,702 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 1,136 | 3,203 | |||||||||
Class B | 750 | 3,023 | |||||||||
Class C | 502 | 1,204 | |||||||||
Class I | 14,464 | 24,100 | |||||||||
16,852 | 31,530 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (8,981 | ) | (370,179 | ) | |||||||
Class B | (8,001 | ) | (14,077 | ) | |||||||
Class C | (4,068 | ) | (7,913 | ) | |||||||
Class I | (149,463 | ) | (5,884 | ) | |||||||
(170,513 | ) | (398,053 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (b) | – | (b) | |||||||
Class B | – | (b) | 1 | ||||||||
Class C | – | (b) | – | (b) | |||||||
– | (b) | 1 |
April 30, 2007 (unaudited) | October 31, 2006 (a) | ||||||||||
Automatic conversions: | |||||||||||
Class A | $ | 421 | $ | 350 | |||||||
Class B | (421 | ) | (350 | ) | |||||||
– | – | ||||||||||
(122,049 | ) | 113,180 | |||||||||
Net increase (decrease) in net assets | (64,334 | ) | 147,566 | ||||||||
Net Assets: | |||||||||||
Beginning of period | 601,854 | 454,288 | |||||||||
End of period | $ | 537,520 | $ | 601,854 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 1,769 | $ | 3,756 | |||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 444 | 1,238 | |||||||||
Class B | 137 | 556 | |||||||||
Class C | 364 | 774 | |||||||||
Class I | 781 | 25,681 | |||||||||
1,726 | 28,249 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 63 | 193 | |||||||||
Class B | 43 | 189 | |||||||||
Class C | 29 | 75 | |||||||||
Class I | 796 | 1,461 | |||||||||
931 | 1,918 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (492 | ) | (21,959 | ) | |||||||
Class B | (451 | ) | (841 | ) | |||||||
Class C | (225 | ) | (477 | ) | |||||||
Class I | (8,229 | ) | (358 | ) | |||||||
(9,397 | ) | (23,635 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 23 | 20 | |||||||||
Class B | (24 | ) | (21 | ) | |||||||
(1 | ) | (1 | ) | ||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | 38 | (20,508 | ) | ||||||||
Class B | (295 | ) | (117 | ) | |||||||
Class C | 168 | 372 | |||||||||
Class I | (6,652 | ) | 26,784 | ||||||||
(6,741 | ) | 6,531 |
(a) Class I was offered for investment on November 15, 2005.
(b) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 6
TA IDEX Transamerica Small/Mid Cap Value
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 17.78 | $ | 0.12 | $ | 2.42 | $ | 2.54 | $ | (0.13 | ) | $ | (0.31 | ) | $ | (0.44 | ) | $ | 19.88 | |||||||||||||||||||
10/31/2006 | 16.69 | 0.28 | (j) | 1.96 | (j) | 2.24 | (0.03 | ) | (1.12 | ) | (1.15 | ) | 17.78 | ||||||||||||||||||||||||||
10/31/2005 | 14.32 | 0.03 | 2.85 | 2.88 | (0.09 | ) | (0.42 | ) | (0.51 | ) | 16.69 | ||||||||||||||||||||||||||||
10/31/2004 | 12.94 | 0.04 | 2.56 | 2.60 | – | (1.22 | ) | (1.22 | ) | 14.32 | |||||||||||||||||||||||||||||
10/31/2003 | 9.09 | (0.11 | ) | 3.96 | 3.85 | – | – | – | 12.94 | ||||||||||||||||||||||||||||||
10/31/2002 | 10.12 | (0.07 | ) | (0.96 | ) | (1.03 | ) | – | – | – | 9.09 | ||||||||||||||||||||||||||||
Class B | 4/30/2007 | 17.12 | 0.05 | 2.34 | 2.39 | – | (0.31 | ) | (0.31 | ) | 19.20 | ||||||||||||||||||||||||||||
10/31/2006 | 16.21 | (0.01 | ) (j) | 2.07 | (j) | 2.06 | (0.03 | ) | (1.12 | ) | (1.15 | ) | 17.12 | ||||||||||||||||||||||||||
10/31/2005 | 13.97 | (0.11 | ) | 2.77 | 2.66 | – | (0.42 | ) | (0.42 | ) | 16.21 | ||||||||||||||||||||||||||||
10/31/2004 | 12.73 | (0.06 | ) | 2.52 | 2.46 | – | (1.22 | ) | (1.22 | ) | 13.97 | ||||||||||||||||||||||||||||
10/31/2003 | 8.98 | (0.17 | ) | 3.92 | 3.75 | – | – | – | 12.73 | ||||||||||||||||||||||||||||||
10/31/2002 | 10.08 | (0.19 | ) | (0.91 | ) | (1.10 | ) | – | – | – | 8.98 | ||||||||||||||||||||||||||||
Class C | 4/30/2007 | 17.09 | 0.06 | 2.33 | 2.39 | (0.04 | ) | (0.31 | ) | (0.35 | ) | 19.13 | |||||||||||||||||||||||||||
10/31/2006 | 16.18 | – | (h)(j) | 2.06 | (j) | 2.06 | (0.03 | ) | (1.12 | ) | (1.15 | ) | 17.09 | ||||||||||||||||||||||||||
10/31/2005 | 13.96 | (0.12 | ) | 2.77 | 2.65 | (0.01 | ) | (0.42 | ) | (0.43 | ) | 16.18 | |||||||||||||||||||||||||||
10/31/2004 | 12.73 | (0.01 | ) | 2.46 | 2.45 | – | (1.22 | ) | (1.22 | ) | 13.96 | ||||||||||||||||||||||||||||
10/31/2003 | 9.01 | (0.18 | ) | 3.90 | 3.72 | – | – | – | 12.73 | ||||||||||||||||||||||||||||||
Class I | 4/30/2007 | 17.87 | 0.16 | 2.45 | 2.61 | (0.23 | ) | (0.31 | ) | (0.54 | ) | 19.94 | |||||||||||||||||||||||||||
10/31/2006 | 16.84 | 0.18 | (j) | 1.97 | (j) | 2.15 | – | (1.12 | ) | (1.12 | ) | 17.87 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 14.52 | % | $ | 53,335 | 1.43 | % | 1.43 | % | 1.29 | % (i) | 12 | % | ||||||||||||||||||
10/31/2006 | 13.97 | 47,014 | 1.39 | 1.39 | 1.61 | (i)(j) | 21 | ||||||||||||||||||||||||
10/31/2005 | 20.41 | 386,346 | 1.24 | 1.24 | 0.20 | (i) | 42 | ||||||||||||||||||||||||
10/31/2004 | 20.61 | 334,763 | 1.32 | 1.32 | 0.31 | 81 | |||||||||||||||||||||||||
10/31/2003 | 42.35 | 149,557 | 1.73 | 1.73 | (1.04 | ) | 55 | ||||||||||||||||||||||||
10/31/2002 | (10.18 | ) | 45,500 | 1.85 | 1.98 | (0.88 | ) | 22 | |||||||||||||||||||||||
Class B | 4/30/2007 | 14.16 | 47,057 | 2.10 | 2.10 | 0.62 | (i) | 12 | |||||||||||||||||||||||
10/31/2006 | 13.21 | 47,007 | 2.10 | 2.10 | (0.06 | ) (i)(j) | 21 | ||||||||||||||||||||||||
10/31/2005 | 19.30 | 46,410 | 2.14 | 2.14 | (0.70 | ) (i) | 42 | ||||||||||||||||||||||||
10/31/2004 | 19.85 | 40,477 | 1.97 | 1.97 | (0.43 | ) | 81 | ||||||||||||||||||||||||
10/31/2003 | 41.76 | 33,196 | 2.38 | 2.38 | (1.69 | ) | 55 | ||||||||||||||||||||||||
10/31/2002 | (10.91 | ) | 24,391 | 2.50 | 2.63 | (1.53 | ) | 22 | |||||||||||||||||||||||
Class C | 4/30/2007 | 14.19 | 35,780 | 2.05 | 2.05 | 0.71 | (i) | 12 | |||||||||||||||||||||||
10/31/2006 | 13.23 | 29,105 | 2.08 | 2.08 | (0.03 | ) (i)(j) | 21 | ||||||||||||||||||||||||
10/31/2005 | 19.22 | 21,532 | 2.20 | 2.20 | (0.76 | ) (i) | 42 | ||||||||||||||||||||||||
10/31/2004 | 19.78 | 19,678 | 2.07 | 2.07 | (0.02 | ) | 81 | ||||||||||||||||||||||||
10/31/2003 | 41.29 | 1,995 | 2.38 | 2.38 | (1.69 | ) | 55 | ||||||||||||||||||||||||
Class I | 4/30/2007 | 14.90 | 401,348 | 0.85 | 0.85 | 1.78 | 12 | ||||||||||||||||||||||||
10/31/2006 | 13.30 | 478,728 | 0.86 | 0.86 | 1.05 | (j) | 21 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 7
TA IDEX Transamerica Small/Mid Cap Value
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Transamerica Small/Mid Cap Value ("the Fund") commenced operations on April 2, 2001. The inception dates for the Fund's offering of share classes were as follows:
Class C was November 11, 2002.
Class I was November 15, 2005.
(h) Rounds to less than ($0.01).
(i) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
(j) For the year ended October 31, 2006, Net Investment Income (Loss), Net Realized and Unrealized Gains (Loss), and Net Investment Income (Loss) to Average Net Assets are inclusive of adjustments to dividend income resulting from differences between estimated and actual amounts for REIT investments. The adjustments for all classes include an increase of $.02, and a decrease of $.02 to Net Investment Income (Loss) and Net Realized and Unrealized Gains (Loss), respectively. The ratio of Net Investment Income (Loss) to Average Net Assets was increased by .09%.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 8
TA IDEX Transamerica Small/Mid Cap Value
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Small/Mid Cap Value (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Repurchase agreements: The Fund is authorized to enter into repurchase agreements. The Fund, through its custodian, IBT, receives delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Fund will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $29 are included in net realized gains in the Statement of Operations.
Securities lending: The Fund may lend securities to qualified borrowers, with IBT acting as the Fund's lending agent. The Fund earns negotiated lenders' fees. The Fund receives cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Fund monitors the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, in the amount of $89, earned by IBT for its services.
Real Estate Investment Trusts ("REITs"): There are certain additional risks involved in investing in REITs. These include, but are not limited
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 9
TA IDEX Transamerica Small/Mid Cap Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
to, economic conditions, changes in zoning laws, real estate values, property taxes and interest rates.
Dividend income 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.
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 Fund is 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.
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
The following schedule reflects the percentage of Fund assets owned by affiliated investment companies at April 30, 2007:
Net Assets | % of Net Assets | ||||||||||
TA IDEX Asset Allocation– Conservative Portfolio | $ | 19,465 | 3.62 | % | |||||||
TA IDEX Asset Allocation– Growth Portfolio | 134,595 | 25.04 | % | ||||||||
TA IDEX Asset Allocation– Moderate Portfolio | 70,751 | 13.16 | % | ||||||||
TA IDEX Asset Allocation– Moderate Growth Portfolio | 176,537 | 32.84 | % | ||||||||
Total | $ | 401,348 | 74.66 | % |
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.80% of the first $500 million of ANA
0.75% of ANA over $500 million
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.40% Expense Limit
If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Fund may be required to pay the adviser a portion or all of the reimbursed class expenses.
There are no amounts available for recapture at April 30, 2007.
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
Underwriter commissions relate to front-end sales charges imposed for Class A shares and contingent deferred sales charges from Classes B, C,
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 10
TA IDEX Transamerica Small/Mid Cap Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
and certain A share redemptions. For the six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 85 | |||||
Retained by Underwriter | 13 | ||||||
Contingent Deferred Sales Charge | 35 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The Fund paid TFS $135 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $18.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $30. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 65,166 | |||||
U.S. Government | – | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 188,150 | ||||||
U.S. Government | – |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and distribution reclassifications.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 11
TA IDEX Transamerica Small/Mid Cap Value
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 5.–(continued)
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 12
TA IDEX Transamerica Small/Mid Cap Value
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Small/Mid Cap Value (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and t he Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and independent legal counsel and their own business judgment, to be relevant. They based t heir 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board further concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment per formance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser generally had achieved strong investment performance, noting that the performance of the Fund was competitive relative to its peers over the past one- and five-year periods and highly competitive relative to its peers over the past two- and three-year periods (although a portion of the performance track record is attributable to a predecessor sub-adviser). On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and very competitive with other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. Based on such information, the Trustees dete rmined that the management fees and overall expense ratio of the Fund are competitive with its peers. In addition, on the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 13
TA IDEX Transamerica Small/Mid Cap Value (continued)
TFAI's audited financial statements), TFAI's estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that asset-based breakpoints in the Fund's advisory fee schedule appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" requirem ents in particular. 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Small/Mid Cap Value 14
TA IDEX Transamerica Value Balanced
UNDERSTANDING YOUR FUND'S 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 redemption fees; and (2) ongoing costs, including management fees, 12b-1 distribution and service fees, and other fund expenses.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled "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 second line in the table below 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 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, redemption fees, brokerage commissions paid on purchases and sales of fund shares. Therefore, the second line under the Fund in the table 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.
Beginning Account Value | Ending Account Value | Annualized Expense Ratio | Expenses Paid During Period (a) | ||||||||||||||||
Class A | |||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,081.10 | 1.55 | % | $ | 8.00 | |||||||||||
Hypothetical (b) | 1,000.00 | 1,017.11 | 1.55 | 7.75 | |||||||||||||||
Class B | |||||||||||||||||||
Actual | 1,000.00 | 1,078.70 | 2.20 | 11.34 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,013.88 | 2.20 | 10.99 | |||||||||||||||
Class C | |||||||||||||||||||
Actual | 1,000.00 | 1,078.10 | 2.18 | 11.23 | |||||||||||||||
Hypothetical (b) | 1,000.00 | 1,013.98 | 2.18 | 10.89 |
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
GRAPHICAL PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At April 30, 2007
(unaudited)
This chart shows the percentage breakdown by asset type of the Fund's total investment securities.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 1
TA IDEX Transamerica Value Balanced
SCHEDULE OF INVESTMENTS •
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
U.S. GOVERNMENT OBLIGATIONS (1.0%) | |||||||||||
U.S. Treasury Bond 8.00%, due 11/15/2021 | $ | 25 | $ | 33 | |||||||
U.S. Treasury Inflation Indexed Bond 2.00%, due 01/15/2016 | 181 | 179 | |||||||||
U.S. Treasury Note 4.50%, due 03/31/2012 4.50%, due 02/15/2036 | 250 206 | 250 195 | |||||||||
Total U.S. Government Obligations (cost: $649) | 657 | ||||||||||
U.S. GOVERNMENT AGENCY OBLIGATIONS (11.4%) | |||||||||||
Fannie Mae 5.50%, due 05/01/2035 568 562 5.00%, due 07/01/2035 607 587 5.50%, due 07/01/2036 474 468 6.00%, due 08/01/2036 | 649 | 654 | |||||||||
Fannie Mae-Conventional Pool 5.00%, due 05/01/2018 113 112 5.50%, due 07/01/2019 618 620 6.00%, due 04/01/2033 275 279 6.00%, due 10/01/2034 | 146 | 147 | |||||||||
Freddie Mac 5.35%, due 11/14/2011 | 120 | 120 | |||||||||
Freddie Mac, Series 2941, Class WC 5.00%, due 10/15/2030 | 600 | 592 | |||||||||
Freddie Mac-Gold Pool 5.00%, due 04/01/2018 204 202 5.50%, due 09/01/2018 63 63 5.50%, due 11/01/2018 126 126 6.00%, due 12/01/2033 340 345 5.50%, due 02/01/2035 477 472 5.50%, due 06/01/2035 505 501 5.00%, due 07/01/2035 221 214 5.50%, due 01/01/2036 301 298 6.00%, due 01/01/2037 | 692 | 698 | |||||||||
Ginnie Mae-FHA/VA Pool 6.50%, due 10/15/2027 6.00%, due 06/15/2034 | 72 171 | 74 173 | |||||||||
Total U.S. Government Agency Obligations (cost: $7,397) | 7,307 | ||||||||||
MORTGAGE-BACKED SECURITIES (2.8%) | |||||||||||
American Tower Trust, Series 2007-1A, Class C–144A 5.62%, due 04/15/2037 | 155 | 155 | |||||||||
Bear Stearns Commercial Mortgage Securities, Series 2006-PW14, Class A4 5.20%, due 12/01/2038 | 338 | 333 |
Principal | Value | ||||||||||
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD, Class A4 5.32%, due 12/11/2049 | $ | 120 | $ | 119 | |||||||
Crown Castle Towers LLC, Series 2006-1A, Class AFX–144A 5.24%, due 11/15/2036 | 290 | 290 | |||||||||
Morgan Stanley Capital I, Series 2006-HQ10, Class A4 5.33%, due 11/12/2041 * | 332 | 331 | |||||||||
SBA CMBS Trust, Series 2006-1A, Class A–144A 5.31%, due 11/15/2036 | 250 | 251 | |||||||||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4 5.57%, due 10/15/2048 * | 323 | 327 | |||||||||
Total Mortgage-Backed Securities (cost: $1,812) | 1,806 | ||||||||||
CORPORATE DEBT SECURITIES (10.7%) | |||||||||||
Agriculture (0.1%) | |||||||||||
Michael Foods, Inc. 8.00%, due 11/15/2013 | 90 | 93 | |||||||||
Automotive Service Stations (0.1%) | |||||||||||
Petro Stopping Centers, LP / Petro Financial Corp. 9.00%, due 02/15/2012 | 70 | 73 | |||||||||
Business Credit Institutions (0.3%) | |||||||||||
Pemex Finance, Ltd. 9.03%, due 02/15/2011 | 200 | 214 | |||||||||
Commercial Banks (1.7%) | |||||||||||
ICICI Bank, Ltd., Series B–144A 5.90%, due 01/12/2010 * | 214 | 215 | |||||||||
Lloyds TSB Group PLC–144A 6.27%, due 11/14/2016 (a)(b) | 180 | 179 | |||||||||
PartnerRe Finance II 6.44%, due 12/01/2066 (b) | 85 | 85 | |||||||||
Shinsei Finance Cayman, Ltd.–144A 6.42%, due 07/20/2016 (a)(b) | 85 | 86 | |||||||||
Suntrust Preferred Capital I 5.85%, due 12/15/2011 (a)(b) | 85 | 86 | |||||||||
USB Capital IX 6.19%, due 04/15/2011 (a)(b) | 180 | 185 | |||||||||
Wachovia Capital Trust III 5.80%, due 03/15/2011 (a)(b) | 75 | 76 | |||||||||
ZFS Finance USA Trust I–144A 6.45%, due 12/15/2065 (b) | 180 | 182 | |||||||||
Communication (0.2%) | |||||||||||
Comcast Corp. 7.05%, due 03/15/2033 | 95 | 103 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 2
TA IDEX Transamerica Value Balanced
SCHEDULE OF INVESTMENTS • (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Construction (0.3%) | |||||||||||
DR Horton, Inc., Senior Note 5.38%, due 06/15/2012 | $ | 180 | $ | 173 | |||||||
Department Stores (0.2%) | |||||||||||
Neiman-Marcus Group, Inc. 9.00%, due 10/15/2015 | 100 | 110 | |||||||||
Electric Services (0.6%) | |||||||||||
PPL Capital Funding, Guaranteed Note 6.70%, due 03/30/2067 (b) | 105 | 105 | |||||||||
PSEG Funding Trust 5.38%, due 11/16/2007 | 250 | 250 | |||||||||
Food & Kindred Products (0.6%) | |||||||||||
Archer-Daniels-Midland Co. 5.38%, due 09/15/2035 | 100 | 93 | |||||||||
Bunge, Ltd., Finance Corp. 4.38%, due 12/15/2008 | 270 | 266 | |||||||||
Food Stores (0.3%) | |||||||||||
Albertson's, Inc. 7.50%, due 02/15/2011 | 78 | 82 | |||||||||
Stater Brothers Holdings, Inc. 8.13%, due 06/15/2012 | 100 | 103 | |||||||||
Holding & Other Investment Offices (0.9%) | |||||||||||
Ameriprise Financial, Inc. 7.52%, due 06/01/2066 (b) | 160 | 174 | |||||||||
iStar Financial, Inc. REIT 4.88%, due 01/15/2009 | 375 | 372 | |||||||||
Hotels & Other Lodging Places (0.3%) | |||||||||||
Las Vegas Sands Corp. 6.38%, due 02/15/2015 | 100 | 97 | |||||||||
Starwood Hotels & Resorts Worldwide, Inc. 7.38%, due 05/01/2007 | 100 | 100 | |||||||||
Insurance (0.4%) | |||||||||||
Oil Insurance, Ltd.–144A 7.56%, due 06/30/2011 (a)(b) | 100 | 105 | |||||||||
St. Paul Travelers Cos. (The), Inc. 6.75%, due 06/20/2036 | 140 | 153 | |||||||||
Life Insurance (0.5%) | |||||||||||
Genworth Financial, Inc., Subordinated Note 6.15%, due 11/15/2066 (b) | 117 | 116 | |||||||||
Prudential Financial, Inc. 5.75%, due 07/15/2033 | 195 | 191 | |||||||||
Lumber & Other Building Materials (0.1%) | |||||||||||
CRH America, Inc. 5.30%, due 10/15/2013 | 100 | 98 |
Principal | Value | ||||||||||
Metal Mining (0.1%) | |||||||||||
Vale Overseas, Ltd., Guaranteed Note 6.25%, due 01/23/2017 | $ | 65 | $ | 67 | |||||||
Mortgage Bankers & Brokers (0.2%) | |||||||||||
Idearc, Inc., Senior Note–144A 8.00%, due 11/15/2016 | 20 | 21 | |||||||||
ILFC E-Capital Trust II–144A 6.25%, due 12/21/2065 (b) | 105 | 108 | |||||||||
Oil & Gas Extraction (0.3%) | |||||||||||
Husky Oil, Ltd. 8.90%, due 08/15/2028 (b) | 100 | 104 | |||||||||
PetroHawk Energy Corp., Senior Note 9.13%, due 07/15/2013 | 100 | 107 | |||||||||
Paper & Allied Products (0.3%) | |||||||||||
Celulosa Arauco y Constitucion SA 8.63%, due 08/15/2010 | 171 | 187 | |||||||||
Petroleum Refining (0.1%) | |||||||||||
Enterprise Products Operating, LP 8.38%, due 08/01/2066 (b) | 80 | 89 | |||||||||
Printing & Publishing (0.1%) | |||||||||||
News America Holdings, Inc. 7.75%, due 12/01/2045 | 65 | 74 | |||||||||
Radio & Television Broadcasting (0.2%) | |||||||||||
Chancellor Media Corp. 8.00%, due 11/01/2008 | 100 | 103 | |||||||||
Real Estate (0.3%) | |||||||||||
Post Apartment Homes, LP 6.30%, due 06/01/2013 | 171 | 177 | |||||||||
Restaurants (0.1%) | |||||||||||
Aramark Corp., Senior Note–144A 8.50%, due 02/01/2015 | 90 | 94 | |||||||||
Security & Commodity Brokers (1.2%) | |||||||||||
BNP U.S. Funding LLC–144A 7.74%, due 12/05/2007 (a)(b) | 250 | 253 | |||||||||
E*Trade Financial Corp. 8.00%, due 06/15/2011 | 50 | 53 | |||||||||
JP Morgan Chase Capital XVIII 6.95%, due 08/17/2036 | 170 | 182 | |||||||||
Nuveen Investments, Inc. 5.00%, due 09/15/2010 | 200 | 198 | |||||||||
Western Union Co. (The) 5.93%, due 10/01/2016 | 80 | 81 | |||||||||
Telecommunications (0.2%) | |||||||||||
Nextel Communications, Inc., Series D 7.38%, due 08/01/2015 | 100 | 103 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 3
TA IDEX Transamerica Value Balanced
SCHEDULE OF INVESTMENTS • (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Principal | Value | ||||||||||
Transportation & Public Utilities (0.2%) | |||||||||||
Hertz Corp., Senior Subordinated Note 10.50%, due 01/01/2016 | $ | 100 | $ | 114 | |||||||
Water Transportation (0.8%) | |||||||||||
Carnival Corp. 3.75%, due 11/15/2007 | 380 | 377 | |||||||||
Royal Caribbean Cruises, Ltd. 8.75%, due 02/02/2011 | 135 | 148 | |||||||||
Total Corporate Debt Securities (cost: $6,777) | 6,805 | ||||||||||
Shares | Value | ||||||||||
COMMON STOCKS (71.4%) | |||||||||||
Amusement & Recreation Services (1.0%) | |||||||||||
Disney (Walt) Co. (The) | 17,800 | $ | 623 | ||||||||
Apparel Products (1.1%) | |||||||||||
Hanesbrands, Inc. ‡ | 26,200 | 697 | |||||||||
Business Services (0.4%) | |||||||||||
Fannie Mae | 4,500 | 265 | |||||||||
Chemicals & Allied Products (1.4%) | |||||||||||
Colgate-Palmolive Co. | 7,000 | 474 | |||||||||
Praxair, Inc. | 7,000 | 452 | |||||||||
Commercial Banks (8.3%) | |||||||||||
Bank of America Corp. | 31,256 | 1,591 | |||||||||
Citigroup, Inc. | 32,540 | 1,745 | |||||||||
PNC Financial Services Group, Inc. | 10,000 | 741 | |||||||||
Wachovia Corp. | 16,700 | 928 | |||||||||
Wells Fargo & Co. | 9,000 | 323 | |||||||||
Computer & Data Processing Services (7.0%) | |||||||||||
Microsoft Corp. | 150,000 | 4,491 | |||||||||
Electric Services (0.4%) | |||||||||||
Dominion Resources, Inc. | 3,000 | 274 | |||||||||
Electronic & Other Electric Equipment (1.4%) | |||||||||||
General Electric Co. | 24,000 | 885 | |||||||||
Food & Kindred Products (4.4%) | |||||||||||
Altria Group, Inc. | 30,400 | 2,095 | |||||||||
Kraft Foods, Inc.–Class A | 21,037 | 704 | |||||||||
Holding & Other Investment Offices (1.6%) | |||||||||||
Plum Creek Timber Co., Inc. REIT | 10,000 | 397 | |||||||||
Rayonier, Inc. REIT | 15,000 | 651 | |||||||||
Insurance (1.1%) | |||||||||||
American International Group, Inc. | 10,000 | 699 | |||||||||
Life Insurance (0.6%) | |||||||||||
Genworth Financial, Inc.–Class A | 10,000 | 365 |
Shares | Value | ||||||||||
Lumber & Wood Products (0.3%) | |||||||||||
Louisiana-Pacific Corp. | 9,000 | $ | 177 | ||||||||
Mining (0.6%) | |||||||||||
Fording Canadian Coal Trust | 15,000 | 361 | |||||||||
Motion Pictures (5.9%) | |||||||||||
Time Warner, Inc. | 183,000 | 3,775 | |||||||||
Oil & Gas Extraction (2.0%) | |||||||||||
Anadarko Petroleum Corp. | 11,000 | 513 | |||||||||
Chesapeake Energy Corp. | 7,500 | 253 | |||||||||
EOG Resources, Inc. | 7,000 | 514 | |||||||||
Paper & Allied Products (0.6%) | |||||||||||
Kimberly-Clark Corp. | 5,000 | 356 | |||||||||
Petroleum Refining (8.2%) | |||||||||||
BP PLC, ADR | 25,050 | 1,686 | |||||||||
Exxon Mobil Corp. | 14,000 | 1,111 | |||||||||
Marathon Oil Corp. | 12,750 | 1,295 | |||||||||
Murphy Oil Corp. | 8,500 | 471 | |||||||||
Valero Energy Corp. | 9,500 | 667 | |||||||||
Pharmaceuticals (11.2%) | |||||||||||
Bristol-Myers Squibb Co. | 105,000 | 3,030 | |||||||||
Merck & Co., Inc. | 49,000 | 2,521 | |||||||||
Pfizer, Inc. | 60,000 | 1,588 | |||||||||
Railroads (1.8%) | |||||||||||
Union Pacific Corp. | 10,000 | 1,142 | |||||||||
Savings Institutions (3.6%) | |||||||||||
Washington Mutual, Inc. | 55,000 | 2,309 | |||||||||
Security & Commodity Brokers (6.7%) | |||||||||||
AllianceBernstein Holding, LP | 40,000 | 3,638 | |||||||||
Raymond James Financial, Inc. | 21,450 | 658 | |||||||||
Telecommunications (0.5%) | |||||||||||
Sprint Nextel Corp. | 15,000 | 300 | |||||||||
Tobacco Products (1.3%) | |||||||||||
Loews Corp.- Carolina Group | 11,000 | 842 | |||||||||
Total Common Stocks (cost: $32,851) | 45,607 | ||||||||||
Total Investment Securities (cost: $49,486) # | $ | 62,182 | |||||||||
Contracts w | Value | ||||||||||
WRITTEN OPTIONS (-0.6%) | |||||||||||
Covered Call Options (-0.4%) | |||||||||||
Altria Group Inc. | 84 | $ | (18 | ) | |||||||
Call Strike $95.00 | |||||||||||
Expires 09/22/2007 | |||||||||||
Altria Group Inc. Call Strike $100.00 Expires 01/19/2008 | 100 | (16 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 4
TA IDEX Transamerica Value Balanced
SCHEDULE OF INVESTMENTS • (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Contracts w | Value | ||||||||||
Covered Call Options (continued) | |||||||||||
EOG Resources, Inc. | 70 | $ | (23 | ) | |||||||
Call Strike $75.00 | |||||||||||
Expires 07/21/2007 | |||||||||||
Exxon Mobil Corp. Call Strike $80.00 Expires 07/21/2007 | 60 | (16 | ) | ||||||||
Genworth Financial, Inc.–Class A Call Strike $35.00 Expires 06/16/2007 | 80 | (18 | ) | ||||||||
Loews Corp. Call Strike $80.00 Expires 09/22/2007 | 40 | (10 | ) | ||||||||
Louisiana-Pacific Corp. Call Strike $22.50 Expires 08/18/2007 | 90 | (4 | ) | ||||||||
Murphy Oil Corp. Call Strike $60.00 Expires 07/21/2007 | 100 | (11 | ) | ||||||||
Plum Tree Timber Call Strike $40.00 Expires 08/18/2007 | 100 | (15 | ) | ||||||||
PNC Financial Services Group, Inc. Call Strike $80.00 Expires 08/18/2007 | 40 | (3 | ) | ||||||||
Praxair, Inc. Call Strike $70.00 Expires 07/21/2007 | 70 | (3 | ) | ||||||||
Raymond James Call Strike $30.00 Expires 08/18/2007 | 110 | (24 | ) | ||||||||
Rayonier, Inc. Call Strike $45.00 Expires 08/18/2007 | 120 | (14 | ) | ||||||||
Sprint Nextel Call Strike $20.00 Expires 08/18/2007 | 150 | (21 | ) | ||||||||
Union Pacific Corp. Call Strike $110.00 Expires 08/18/2007 | 30 | (28 | ) | ||||||||
Put Options (-0.2%) | |||||||||||
American International Group, Inc. Put Strike $55.00 Expires 01/19/2008 | 190 | (6 | ) | ||||||||
Bank of America Put Strike $45.00 Expires 08/18/2007 | 31 | (1 | ) |
Contracts w | Value | ||||||||||
Put Options (continued) | |||||||||||
Chesapeake Energy | 200 | $ | (1 | ) | |||||||
Put Strike $27.50 | |||||||||||
Expires 07/12/2007 | |||||||||||
Cia Vale Do Rio Doce Put Strike $25.00 Expires 06/16/2007 | 500 | (2 | ) | ||||||||
Cia Vale Do Rio Doce Put Strike $27.50 Expires 09/22/2007 | 200 | (3 | ) | ||||||||
Cisco Systems, Inc. Put Strike $15.00 Expires 01/19/2008 | 350 | (2 | ) | ||||||||
Citigroup, Inc. Put Strike $42.50 Expires 09/22/2007 | 30 | — | o | ||||||||
Colgate-Palmolive Co. Put Strike $65.00 Expires 08/18/2007 | 50 | (4 | ) | ||||||||
Dominion Resources, Inc. Put Strike $75.00 Expires 01/19/2008 | 60 | (4 | ) | ||||||||
Duke Energy Corp. Put Strike $17.50 Expires 01/19/2008 | 350 | (10 | ) | ||||||||
Fannie Mae Put Strike $55.00 Expires 06/16/2007 | 170 | (11 | ) | ||||||||
Fannie Mae Put Strike $50.00 Expires 09/22/2007 | 40 | (3 | ) | ||||||||
Fording Canadian Coal Trust Put Strike $20.00 Expires 09/22/2007 | 150 | (5 | ) | ||||||||
Jefferies Group, Inc. Put Strike $25.00 Expires 07/21/2007 | 200 | (7 | ) | ||||||||
Pfizer, Inc. Put Strike $20.00 Expires 01/19/2008 | 313 | (5 | ) | ||||||||
Schering-Plough Corp. Put Strike $20.00 Expires 01/19/2008 | 250 | (2 | ) | ||||||||
Valero Energy Corp. Put Strike $47.50 Expires 09/22/2007 | 40 | (1 | ) |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 5
TA IDEX Transamerica Value Balanced
SCHEDULE OF INVESTMENTS • (continued)
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
Contracts w | Value | ||||||||||
Put Options (continued) | |||||||||||
Vodafone Group PLC | 125 | $ | (6 | ) | |||||||
Put Strike $25.00 | |||||||||||
Expires 10/20/2007 | |||||||||||
Vodafone Group PLC Put Strike $22.50 Expires 10/20/2007 | 125 | (2 | ) | ||||||||
Vodafone Group PLC Put Strike $22.50 Expires 01/17/2009 | 425 | (43 | ) | ||||||||
Washington Mutual, Inc. Put Strike $40.00 Expires 01/19/2008 | 150 | (30 | ) | ||||||||
Total Written Options (premiums: $565) | $ | (372 | ) |
NOTES TO SCHEDULE OF INVESTMENTS:
• Substantially all of the Fund's securities are pledged as collateral by the custodian for the listed open option contracts written by the Fund.
* Floating or variable rate note. Rate is listed as of April 30, 2007.
(a) The security has a perpetual maturity. The date shown is the next call date.
(b) Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of April 30, 2007.
‡ Non-income producing.
w Contract amounts are not in thousands.
o Value is less than $1.
# Aggregate cost for federal income tax purposes is $49,568. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $12,839 and $225, respectively. Net unrealized appreciation for tax purposes is $12,614.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $1,939 or 3.0% of the net assets of the Fund.
ADR American Depositary Receipt
FHA Federal Housing Administration
REIT Real Estate Investment Trust
VA Veterans Affairs
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 6
TA IDEX Transamerica Value Balanced
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: | |||||||
Investment securities, at value (cost: $49,486) | $ | 62,182 | |||||
Cash | 2,221 | ||||||
Receivables: Shares of beneficial interest sold | 44 | ||||||
Interest | 184 | ||||||
Dividends | 65 | ||||||
Other | 15 | ||||||
64,711 | |||||||
Liabilities: | |||||||
Investment securities purchased | 155 | ||||||
Accounts payable and accrued liabilities: Shares of beneficial interest redeemed | 121 | ||||||
Management and advisory fees | 39 | ||||||
Distribution and service fees | 36 | ||||||
Transfer agent fees | 17 | ||||||
Administration fees | 1 | ||||||
Written options (premiums $565) | 372 | ||||||
Other | 45 | ||||||
786 | |||||||
Net Assets | $ | 63,925 | |||||
Net Assets Consist of: | |||||||
Shares of beneficial interest, unlimited shares authorized, no par value | $ | 49,535 | |||||
Undistributed (accumulated) net investment income (loss) | 269 | ||||||
Undistributed (accumulated) net realized gain (loss) from investment securities and written options | 1,232 | ||||||
Net unrealized appreciation (depreciation) on: Investment securities | 12,696 | ||||||
Written option contracts | 193 | ||||||
Net Assets | $ | 63,925 | |||||
Net Assets by Class: | |||||||
Class A | $ | 32,432 | |||||
Class B | 19,869 | ||||||
Class C | 11,624 | ||||||
Shares Outstanding: | |||||||
Class A | 2,339 | ||||||
Class B | 1,439 | ||||||
Class C | 842 | ||||||
Net Asset Value Per Share: | |||||||
Class A | $ | 13.86 | |||||
Class B | 13.81 | ||||||
Class C | 13.80 | ||||||
Maximum Offering Price Per Share (a): | |||||||
Class A | $ | 14.67 |
(a) 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 and C shares represents offering price. The redemption price for Classes B and C shares equals net asset value less any applicable contingent deferred sales charge.
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: | |||||||
Dividends | $ | 684 | |||||
Interest | 484 | ||||||
1,168 | |||||||
Expenses: | |||||||
Management and advisory fees | 238 | ||||||
Distribution and service fees: | |||||||
Class A | 56 | ||||||
Class B | 100 | ||||||
Class C | 57 | ||||||
Transfer agent fees: | |||||||
Class A | 44 | ||||||
Class B | 33 | ||||||
Class C | 13 | ||||||
Printing and shareholder reports | 16 | ||||||
Custody fees | 11 | ||||||
Administration fees | 6 | ||||||
Legal fees | 1 | ||||||
Audit fees | 10 | ||||||
Trustees fees | 1 | ||||||
Registration fees | 17 | ||||||
Other | 1 | ||||||
Total expenses | 604 | ||||||
Less: | |||||||
Reimbursement of class expenses: | |||||||
Class A | (4 | ) | |||||
Class B | (8 | ) | |||||
Total reimbursed expenses | (12 | ) | |||||
Net expenses | 592 | ||||||
Net Investment Income (Loss) | 576 | ||||||
Net Realized Gain (Loss) from: | |||||||
Investment securities | 2,208 | ||||||
Written option contracts | 374 | ||||||
2,582 | |||||||
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: | |||||||
Investment securities | 1,781 | ||||||
Written option contracts | (30 | ) | |||||
1,751 | |||||||
Net Realized and Unrealized Gain (Loss) on Investment Securities and Written Options Contracts | 4,333 | ||||||
Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 4,909 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 7
TA IDEX Transamerica Value Balanced
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Increase (Decrease) in Net Assets From: | |||||||||||
Operations: | |||||||||||
Net investment income (loss) | $ | 576 | $ | 999 | |||||||
Net realized gain (loss) from investment securities and written options | 2,582 | 3,329 | |||||||||
Change in unrealized appreciation (depreciation) on investment securities and written options | 1,751 | 4,745 | |||||||||
4,909 | 9,073 | ||||||||||
Distributions to Shareholders: | |||||||||||
From net investment income: | |||||||||||
Class A | (274 | ) | (608 | ) | |||||||
Class B | (120 | ) | (274 | ) | |||||||
Class C | (70 | ) | (148 | ) | |||||||
(464 | ) | (1,030 | ) | ||||||||
From net realized gains: | |||||||||||
Class A | (898 | ) | (474 | ) | |||||||
Class B | (563 | ) | (346 | ) | |||||||
Class C | (319 | ) | (175 | ) | |||||||
(1,780 | ) | (995 | ) | ||||||||
Capital Share Transactions: | |||||||||||
Proceeds from shares sold: | |||||||||||
Class A | 1,564 | 2,465 | |||||||||
Class B | 1,300 | 1,016 | |||||||||
Class C | 789 | 1,075 | |||||||||
3,653 | 4,556 | ||||||||||
Dividends and distributions reinvested: | |||||||||||
Class A | 1,151 | 1,057 | |||||||||
Class B | 645 | 592 | |||||||||
Class C | 378 | 311 | |||||||||
2,174 | 1,960 | ||||||||||
Cost of shares redeemed: | |||||||||||
Class A | (5,286 | ) | (8,605 | ) | |||||||
Class B | (2,334 | ) | (6,283 | ) | |||||||
Class C | (1,334 | ) | (3,221 | ) | |||||||
(8,954 | ) | (18,109 | ) | ||||||||
Redemption fees: | |||||||||||
Class A | – | (a) | – | (a) | |||||||
Class B | – | (a) | – | (a) | |||||||
Class C | – | (a) | – | (a) | |||||||
– | (a) | – | (a) | ||||||||
Automatic conversions: | |||||||||||
Class A | 970 | 1,363 | |||||||||
Class B | (970 | ) | (1,363 | ) | |||||||
– | – | ||||||||||
(3,127 | ) | (11,593 | ) | ||||||||
Net increase (decrease) in net assets | (462 | ) | (4,545 | ) | |||||||
Net Assets: | |||||||||||
Beginning of period | 64,387 | 68,932 | |||||||||
End of period | $ | 63,925 | $ | 64,387 | |||||||
Undistributed (accumulated) net investment income (loss) | $ | 269 | $ | 157 |
April 30, 2007 (unaudited) | October 31, 2006 | ||||||||||
Share Activity: | |||||||||||
Shares issued: | |||||||||||
Class A | 115 | 195 | |||||||||
Class B | 97 | 82 | |||||||||
Class C | 58 | 86 | |||||||||
270 | 363 | ||||||||||
Shares issued–reinvested from distributions: | |||||||||||
Class A | 87 | 85 | |||||||||
Class B | 49 | 48 | |||||||||
Class C | 29 | 25 | |||||||||
165 | 158 | ||||||||||
Shares redeemed: | |||||||||||
Class A | (392 | ) | (689 | ) | |||||||
Class B | (175 | ) | (502 | ) | |||||||
Class C | (99 | ) | (258 | ) | |||||||
(666 | ) | (1,449 | ) | ||||||||
Automatic conversions: | |||||||||||
Class A | 72 | 109 | |||||||||
Class B | (72 | ) | (109 | ) | |||||||
– | – | ||||||||||
Net increase (decrease) in shares outstanding: | |||||||||||
Class A | (118 | ) | (300 | ) | |||||||
Class B | (101 | ) | (481 | ) | |||||||
Class C | (12 | ) | (147 | ) | |||||||
(231 | ) | (928 | ) |
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 8
TA IDEX Transamerica Value Balanced
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
For a share of beneficial interest outstanding throughout each period | |||||||||||||||||||||||||||||||||||||||
Net Asset | Investment Operations | Distributions | Net Asset | ||||||||||||||||||||||||||||||||||||
For the Period Ended (d)(g) | Value, Beginning of Period | Net Investment Income (Loss) | Net Realized and Unrealized Gain (Loss) | Total Operations | From Net Investment Income | From Net Realized Gains | Total Distributions | Value, End of Period | |||||||||||||||||||||||||||||||
Class A | 4/30/2007 | $ | 13.30 | $ | 0.14 | $ | 0.91 | $ | 1.05 | $ | (0.11 | ) | $ | (0.38 | ) | $ | (0.49 | ) | $ | 13.86 | |||||||||||||||||||
10/31/2006 | 11.95 | 0.23 | 1.54 | 1.77 | (0.24 | ) | (0.18 | ) | (0.42 | ) | 13.30 | ||||||||||||||||||||||||||||
10/31/2005 | 12.11 | 0.24 | 0.69 | 0.93 | (0.25 | ) | (0.84 | ) | (1.09 | ) | 11.95 | ||||||||||||||||||||||||||||
10/31/2004 | 11.49 | 0.18 | 0.61 | 0.79 | (0.17 | ) | – | (0.17 | ) | 12.11 | |||||||||||||||||||||||||||||
10/31/2003 | 9.69 | 0.18 | 1.83 | 2.01 | (0.21 | ) | – | (0.21 | ) | 11.49 | |||||||||||||||||||||||||||||
10/31/2002 | 11.67 | 0.18 | (1.65 | ) | (1.47 | ) | (0.16 | ) | (0.35 | ) | (0.51 | ) | 9.69 | ||||||||||||||||||||||||||
Class B | 4/30/2007 | 13.25 | 0.10 | 0.92 | 1.02 | (0.08 | ) | (0.38 | ) | (0.46 | ) | 13.81 | |||||||||||||||||||||||||||
10/31/2006 | 11.91 | 0.15 | 1.53 | 1.68 | (0.16 | ) | (0.18 | ) | (0.34 | ) | 13.25 | ||||||||||||||||||||||||||||
10/31/2005 | 12.07 | 0.17 | 0.68 | 0.85 | (0.17 | ) | (0.84 | ) | (1.01 | ) | 11.91 | ||||||||||||||||||||||||||||
10/31/2004 | 11.46 | 0.10 | 0.61 | 0.71 | (0.10 | ) | – | (0.10 | ) | 12.07 | |||||||||||||||||||||||||||||
10/31/2003 | 9.69 | 0.11 | 1.80 | 1.91 | (0.14 | ) | – | (0.14 | ) | 11.46 | |||||||||||||||||||||||||||||
10/31/2002 | 11.66 | 0.11 | (1.65 | ) | (1.54 | ) | (0.08 | ) | (0.35 | ) | (0.43 | ) | 9.69 | ||||||||||||||||||||||||||
Class C | 4/30/2007 | 13.25 | 0.10 | 0.91 | 1.01 | (0.08 | ) | (0.38 | ) | (0.46 | ) | 13.80 | |||||||||||||||||||||||||||
10/31/2006 | 11.91 | 0.15 | 1.53 | 1.68 | (0.16 | ) | (0.18 | ) | (0.34 | ) | 13.25 | ||||||||||||||||||||||||||||
10/31/2005 | 12.07 | 0.17 | 0.69 | 0.86 | (0.18 | ) | (0.84 | ) | (1.02 | ) | 11.91 | ||||||||||||||||||||||||||||
10/31/2004 | 11.46 | 0.11 | 0.60 | 0.71 | (0.10 | ) | – | (0.10 | ) | 12.07 | |||||||||||||||||||||||||||||
10/31/2003 | 9.71 | 0.12 | 1.77 | 1.89 | (0.14 | ) | – | (0.14 | ) | 11.46 |
Ratios/Supplemental Data | |||||||||||||||||||||||||||||||
For the Period | Total | Net Assets, End of Period | Ratio of Expenses to Average Net Assets (a) | Net Investment Income (Loss) to Average | Portfolio Turnover | ||||||||||||||||||||||||||
Ended (g) | Return (c) | (000's) | Net (e) | Total (f) | Net Assets (a) | Rate (b) | |||||||||||||||||||||||||
Class A | 4/30/2007 | 8.11 | % | $ | 32,432 | 1.55 | % | 1.58 | % | 2.13 | %(h) | 17 | % | ||||||||||||||||||
10/31/2006 | 15.09 | 32,666 | 1.55 | 1.63 | 1.84 | (h) | 42 | ||||||||||||||||||||||||
10/31/2005 | 7.79 | 32,934 | 1.55 | 1.59 | 2.03 | (h) | 57 | ||||||||||||||||||||||||
10/31/2004 | 6.99 | 37,393 | 1.55 | 1.63 | 1.50 | 122 | |||||||||||||||||||||||||
10/31/2003 | 21.04 | 11,832 | 1.55 | 2.20 | 1.75 | 50 | |||||||||||||||||||||||||
10/31/2002 | (13.20 | ) | 11,020 | 1.55 | 1.89 | 1.56 | 82 | ||||||||||||||||||||||||
Class B | 4/30/2007 | 7.87 | 19,869 | 2.20 | 2.28 | 1.49 | (h) | 17 | |||||||||||||||||||||||
10/31/2006 | 14.28 | 20,405 | 2.20 | 2.28 | 1.20 | (h) | 42 | ||||||||||||||||||||||||
10/31/2005 | 7.13 | 24,072 | 2.20 | 2.27 | 1.39 | (h) | 57 | ||||||||||||||||||||||||
10/31/2004 | 6.23 | 29,409 | 2.20 | 2.30 | 0.81 | 122 | |||||||||||||||||||||||||
10/31/2003 | 19.98 | 13,744 | 2.20 | 2.85 | 1.10 | 50 | |||||||||||||||||||||||||
10/31/2002 | (13.72 | ) | 12,038 | 2.20 | 2.54 | 0.91 | 82 | ||||||||||||||||||||||||
Class C | 4/30/2007 | 7.81 | 11,624 | 2.18 | 2.18 | 1.50 | (h) | 17 | |||||||||||||||||||||||
10/31/2006 | 14.33 | 11,316 | 2.20 | 2.20 | 1.19 | (h) | 42 | ||||||||||||||||||||||||
10/31/2005 | 7.18 | 11,926 | 2.16 | 2.16 | 1.43 | (h) | 57 | ||||||||||||||||||||||||
10/31/2004 | 6.31 | 14,285 | 2.20 | 2.39 | 0.78 | 122 | |||||||||||||||||||||||||
10/31/2003 | 19.73 | 530 | 2.20 | 2.86 | 1.10 | 50 |
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 9
TA IDEX Transamerica Value Balanced
FINANCIAL HIGHLIGHTS (continued)
(unaudited)
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Transamerica Value Balanced commenced operations on October 1, 1995. The inception date for the Fund's offering of share Class C was November 11, 2002.
(h) Ratio of Net Investment Income (Loss) to Average Net Assets are inclusive of Redemption Fees, if any. The impact of Redemption Fees is less than 0.01% for Class A, Class B and Class C, respectively.
The notes to the financial statements are an integral part of this report.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 10
TA IDEX Transamerica Value Balanced
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act").
In the normal course of business, TA IDEX Transamerica Value Balanced (the "Fund") enters into contracts that contain a variety of representations that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund and/or its affiliates that have not yet occurred. However, based on experience, the Fund expects the risk of loss to be remote.
This report should be read in conjunction with the current Fund prospectus and statement of additional information, which contains more complete information about the Fund.
In preparing the Fund's 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 Fund.
Multiple class operations, income and expenses: The Fund currently offers four classes of shares, Class A, Class B, Class C and Class I, each with a public offering price that reflects different sales charges, if any, and expense levels. Class I is only available for investment to certain affiliated asset allocation funds. Class I is currently uninvested. Class B shares will convert to Class A shares eight years after purchase. Income, non-class specific expenses and realized and unrealized gains and losses, are allocated daily to each class, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Each class bears its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Fund values its investments at the close of the New York Stock Exchange ("NYSE"), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
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 the Fund's Administrative Valuation Committee, under the supervision of the Board's Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Fund may leave cash overnight in its cash account with the custodian, Investors Bank & Trust Company ("IBT"). IBT has been contracted on behalf of the Fund to invest the excess cash into a savings account, which at April 30, 2007 was paying an interest rate of 3.59%.
Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, may place security transactions of the Fund with broker/dealers with which Transamerica IDEX Mutual 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 Fund. In no event will commissions paid by the Fund be used to pay expenses that would otherwise be borne by any other funds within Transamerica IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 of $2 are included in net realized gains in 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.
Dividend income 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.
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 Fund is 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.
Option contracts: The Fund may enter into options contracts to manage exposure to 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 imperfect correlation between the change in value of the securities held and the prices of the options contracts; the
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 11
TA IDEX Transamerica Value Balanced
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1.–(continued)
possibility of an illiquid market; and inability of the counterparty to meet the contracts terms. When the Fund writes a covered call or put option, an amount equal to the premium received by the Fund is included in the Fund's Statement of Assets and Liabilities as an asset and as an equivalent liability. Options are marked-to-market daily to reflect the current value of the option written.
The underlying face amounts of open option contracts at April 30, 2007 are listed in the Schedule of Investments.
Transactions in written call and put options were as follows:
Premium | Contracts* | ||||||||||
Balance at October 31, 2006 | $ | 608 | 5,994 | ||||||||
Sales | 495 | 4,477 | |||||||||
Expirations | (374 | ) | (3,726 | ) | |||||||
Exercised | (164 | ) | (1,552 | ) | |||||||
Balance at April 30, 2007 | $ | 565 | 5,193 |
* Contracts not in thousands
Redemption fees: A short-term trading redemption fee may be assessed on any Fund shares in a fund account that are sold during the first five (5) NYSE trading days following their purchase date. This redemption fee will equal 2% of the amount redeemed and shares held the longest will be treated as being redeemed first and shares held the shortest as being redeemed last. For the six months ended April 30, 2007, the Fund received less than $1 in redemption fees.
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. ("TFAI") is the Fund's investment adviser. Transamerica Fund Services, Inc. ("TFS") is the Fund's administrator and transfer agent. AFSG Securities Corp. ("AFSG") was the Fund's distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. ("TCI") is the Fund's distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON NV, a Netherlands corporation.
Transamerica Investment Management, LLC is both an affiliate of the Fund and a sub-adviser to the Fund.
Certain officers and trustees of the Fund are also officers and/or directors of TFAI, TFS and TCI.
Investment advisory fees: The Fund pays management fees to TFAI based on average daily net assets ("ANA") at the following breakpoints:
0.75% of the first $500 million of ANA
0.65% of the next $500 million of ANA
0.60% of ANA over $1 billion
TFAI has contractually agreed to waive its advisory fee and will reimburse the Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
1.20% Expense Limit
Distribution and service fees: The Fund has a 12b-1 distribution plan under the 1940 Act pursuant to which an annual fee, based on average daily net assets, is paid to the distributor for various disbursements such as broker-dealer account servicing fees and other promotional expenses of the Fund. The Fund is authorized under the 12b-1 plan to pay fees on each class up to the following limits:
Class A | 0.35 | % | |||||
Class B | 1.00 | % | |||||
Class C | 1.00 | % | |||||
Class I | N/A |
In the case the Fund or a class of shares of the Fund is closed to new investors or investments, the Fund is authorized to pay 12b-1 fees for past sales and distribution efforts and present and past investor services.
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 six months ended April 30, 2007, the underwriter commissions were as follows:
Received by Underwriter | $ | 24 | |||||
Retained by Underwriter | 4 | ||||||
Contingent Deferred Sales Charge | 8 |
Administrative services: The Fund has entered into an agreement with TFS for financial and legal fund administration services. The Fund pays TFS an annual fee of 0.02% of ANA. The Legal fees on the Statement of Operations are fees paid to external legal counsel.
Transfer agent fees: The Fund pays TFS an annual per-account charge for each open and closed account. The fund paid TFS $85 for the six months ended April 30, 2007.
Deferred compensation plan: Each eligible independent Fund Trustee may elect to participate in a non-qualified deferred compensation plan maintained by Transamerica IDEX Mutual Funds (the "Plan"). Under the Plan, such Trustees may defer payment of all or a portion of their total fees earned as a Fund Trustee. Each Trustee who is a participant in
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 12
TA IDEX Transamerica Value Balanced
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 2.–(continued)
the Plan may elect that the earnings, losses or gains credited to his or her deferred fee amounts be determined based on a deemed investment in any series of Transamerica IDEX Mutual Funds, including the Fund. The right of a participant to receive a distribution from the Plan of the deferred fees is an unsecured claim against the general assets of all series of Transamerica IDEX Mutual Funds. The pro rata liability to the Fund of all deferred fees in the Plan amounted, as of April 30, 2007, to $16.
Retirement plan: Under a retirement plan (the "Emeritus Plan") available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the fund. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee's current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the six months ended April 30, 2007, the amount related to the Emeritus Plan was $4. As of April 30, 2007, the Fund has not made any payments related to the Emeritus Plan.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the six months ended April 30, 2007 were as follows:
Purchases of securities: | |||||||
Long-Term | $ | 6,431 | |||||
U.S. Government | 4,205 | ||||||
Proceeds from maturities and sales of securities: | |||||||
Long-Term | 8,452 | ||||||
U.S. Government | 5,668 |
NOTE 4. FEDERAL INCOME TAX MATTERS
The Fund has not made any provision for federal income or excise taxes due to its policy to distribute all of its taxable income and capital gains to its shareholders and otherwise qualify as a regulated investment company under Subchapter M of the Internal Revenue Code. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales, excess distributions and capital loss carryforwards.
The capital loss carryforward is available to offset future realized capital gains through the period listed:
Capital Loss Carryforward | Available through | ||||||
$ | 1,100 | October 31, 2010 |
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Fund's investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Fund currently believes that the likelihood that any such action will have a material adverse impact on it is remote. It is important to note that the Fund is not aware of any allega tion of wrongdoing against it and its Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Fund, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Fund and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Fund, will bear the costs regarding these regulatory matters.
NOTE 6. RECENTLY ISSUED ACCOUNTING
PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board ("FASB") released FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 13
TA IDEX Transamerica Value Balanced
NOTES TO FINANCIAL STATEMENTS (continued)
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 6.–(continued)
FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the Fund's fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, "Fair Value Measurements" ("FAS 157"). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund's financial statements.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 14
TA IDEX Transamerica Value Balanced
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS – REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds ("TA IDEX") held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Value Balanced (the "Fund") and Transamerica Fund Advisors, Inc. ("TFAI") as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the "Sub-Adviser"), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the In vestment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI's and the Sub-Adviser's management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI's senior management, the financial resources of TFAI and the Sub-Adviser, TFAI's management oversight process, the professional qualifications and experience of the Sub-Adviser's portfolio management team, and the Fund's investment performance . The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund's operations, the competitive landscape of the investment company industry and investor needs, and that TFAI's and the Sub-Adviser's obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund's operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund against a peer group of comparable mutual funds as prepared by Lipper, for various trailing periods ended June 30, 2006. The Trustees concluded that TFAI and the Sub-Adviser had generally achieved strong investment performance, noting that the performance of the Fund was very competitive compared to its peers over the past one-, two- and three-year periods, and competitive compared to its peers over the past five-year period, although it performed below the median compared to its peers over the past ten-year period. On the basis of the Trustees' assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of ge nerating a level of investment performance that is appropriate in light of the Fund's investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI's and the Sub-Adviser's performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI's costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund's management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI's pricing strategy. The Board noted that, although the managemen t fees and total expense ratio of the Fund are higher than average compared to its peers, the Fund had recently achieved strong performance compared to peer funds. Also, the Board requested that Management attempt to lower the Fund's advisory and sub-advisory fees during the upcoming year. On the basis of the Board's review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI's audited financial statements), TFAI's estimated management income resulting from its management of
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 15
TA IDEX Transamerica Value Balanced (continued)
the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI's and its affiliates' (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI's and the Sub-Adviser's profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that asset-based breakpoints in the Fund's advisory fee schedule appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund's management fees appropriately reflect the Fund's current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI's pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser's brokerage practices, including "soft dollar" benefits it receives. The Board concluded that other benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including "soft dollar" benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize "soft dollar" benefits from its relationship with the Fund, and that the Sub-Adviser's "soft dollar" arrangements are consistent with applicable law, including "best execution" re quirements in particular. 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund's overall operating expenses, and the necessity of the services for the Fund's operations.
Other considerations. The Board determined that TFAI is committed to the recruitment and retention of high quality personnel, and maintain 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI's expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of s hareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. The Board also considered the long-term prospects of the Fund.
Transamerica IDEX Mutual Funds
Semi-Annual Report 2007
TA IDEX Transamerica Value Balanced 16
TA IDEX AllianceBernstein International Value
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,154.90 |
| 0.94 | % | $ | 5.02 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,020.13 |
| 0.94 | % | 4.71 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
1
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Europe |
| 67.2 | % |
North America |
| 4.6 | % |
Pacific Rim |
| 28.2 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
2
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (95.1%) |
|
|
|
|
| |
Australia (4.4%) |
|
|
|
|
| |
BHP Billiton, Ltd. |
| 82,300 |
| $ | 2,021 |
|
Goodman Fielder, Ltd. |
| 175,600 |
| 351 |
| |
Macquarie Airports |
| 858,032 |
| 2,842 |
| |
National Australia Bank, Ltd. |
| 148,200 |
| 5,304 |
| |
QBE Insurance Group, Ltd. |
| 176,079 |
| 4,523 |
| |
Zinifex, Ltd. |
| 254,500 |
| 3,506 |
| |
Austria (1.3%) |
|
|
|
|
| |
OMV AG |
| 30,300 |
| 1,935 |
| |
Voestalpine AG |
| 49,100 |
| 3,334 |
| |
Belgium (1.3%) |
|
|
|
|
| |
Fortis |
| 123,500 |
| 5,589 |
| |
Bermuda (0.0%) |
|
|
|
|
| |
Kerry Properties, Ltd. |
| 97 |
| — | (o) | |
Canada (4.0%) |
|
|
|
|
| |
EnCana Corp. |
| 70,000 |
| 3,680 |
| |
Gerdau AmeriSteel Corp. |
| 226,700 |
| 2,790 |
| |
Husky Energy, Inc. |
| 32,300 |
| 2,474 |
| |
ING Canada, Inc. |
| 37,566 |
| 1,657 |
| |
IPSCO, Inc. |
| 1 |
| — | (o) | |
Methanex Corp. |
| 76,500 |
| 1,831 |
| |
Nexen, Inc. |
| 1 |
| — | (o) | |
Royal Bank of Canada |
| 25,685 |
| 1,344 |
| |
Teck CominCo, Ltd.-Class B |
| 36,500 |
| 2,777 |
| |
Denmark (0.7%) |
|
|
|
|
| |
Carlsberg AS-Class B |
| 24,900 |
| 2,805 |
| |
Finland (0.5%) |
|
|
|
|
| |
Nokia Oyj(‡) |
| 87,300 |
| 2,223 |
| |
France (13.8%) |
|
|
|
|
| |
Air France-KLM |
| 77,800 |
| 3,990 |
| |
BNP Paribas |
| 67,820 |
| 7,928 |
| |
Cap Gemini SA |
| 26,200 |
| 1,997 |
| |
Credit Agricole SA |
| 125,785 |
| 5,335 |
| |
Michelin (C.G.D.E.)-Class B |
| 39,000 |
| 4,994 |
| |
Renault SA |
| 70,800 |
| 9,249 |
| |
Sanofi-Aventis |
| 78,600 |
| 7,239 |
| |
Societe Generale-Class A |
| 35,020 |
| 7,480 |
| |
Total SA |
| 127,700 |
| 9,491 |
| |
Germany (10.5%) |
|
|
|
|
| |
Allianz AG |
| 24,500 |
| 5,574 |
| |
BASF AG |
| 66,200 |
| 7,899 |
| |
DaimlerChrysler AG |
| 21,500 |
| 1,757 |
| |
Deutsche Lufthansa AG |
| 160,600 |
| 4,835 |
| |
Deutsche Telekom AG |
| 77,500 |
| 1,415 |
| |
E.ON AG |
| 46,400 |
| 6,986 |
| |
Epcos AG |
| 30,200 |
| 648 |
| |
Fresenius Medical Care AG |
| 6,500 |
| 980 |
| |
Muenchener Rueckversicherungs AG |
| 43,800 |
| 7,836 |
| |
RWE AG |
| 43,540 |
| 4,612 |
| |
TUI AG(†) |
| 46,500 |
| 1,284 |
| |
Greece (0.4%) |
|
|
|
|
| |
Public Power Corp. |
| 57,000 |
| 1,503 |
| |
Hong Kong (0.4%) |
|
|
|
|
| |
Sino Land Co. |
| 845,615 |
| 1,790 |
| |
Italy (3.7%) |
|
|
|
|
| |
Buzzi Unicem SpA |
| 80,900 |
| 2,613 |
| |
ENI-Ente Nazionale Idrocarburi SpA |
| 239,500 |
| 7,985 |
| |
Fondiaria-Sai SpA |
| 49,600 |
| 2,572 |
| |
Italcementi SpA |
| 72,400 |
| 2,331 |
| |
Japan (21.8%) |
|
|
|
|
| |
Aisin Seiki Co., Ltd. |
| 56,200 |
| 1,848 |
| |
Alps Electric Co., Ltd. |
| 163,800 |
| 1,692 |
| |
3
Canon, Inc. |
| 65,550 |
| 3,677 |
|
Cosmo Oil Co., Ltd. |
| 84,000 |
| 350 |
|
Dainippon Ink & Chemical, Inc. |
| 190,000 |
| 712 |
|
EDION Corp. |
| 134,400 |
| 1,862 |
|
Honda Motor Co., Ltd. |
| 132,900 |
| 4,564 |
|
Isuzu Motors, Ltd. |
| 659,000 |
| 3,462 |
|
Itochu Corp. |
| 250,000 |
| 2,461 |
|
JFE Holdings, Inc. |
| 116,300 |
| 6,392 |
|
Kyushu Electric Power Co., Inc. |
| 91,400 |
| 2,574 |
|
Mitsubishi Chemical Holdings Corp. |
| 133,500 |
| 1,074 |
|
Mitsubishi Corp. |
| 83,700 |
| 1,784 |
|
Mitsubishi Tokyo Financial Group, Inc. |
| 113 |
| 1,175 |
|
Mitsui Chemicals, Inc. |
| 333,000 |
| 2,763 |
|
Mitsui O.S.K. Lines, Ltd. |
| 335,000 |
| 4,221 |
|
Namco Bandai Holdings, Inc. |
| 126,000 |
| 2,047 |
|
Nippon Mining Holdings, Inc. |
| 259,000 |
| 2,080 |
|
Nippon Telegraph & Telephone Corp. |
| 989 |
| 4,910 |
|
Nippon Yusen Kabushiki Kaisha |
| 229,000 |
| 1,969 |
|
Nissan Motor Co., Ltd. |
| 339,800 |
| 3,417 |
|
Oki Electric Industry Co., Ltd.(‡)(†) |
| 309,000 |
| 531 |
|
ORIX Corp.(a) |
| 21,240 |
| 5,662 |
|
Rengo Co., Ltd. |
| 69,000 |
| 370 |
|
Seiko Epson Corp. |
| 55,900 |
| 1,693 |
|
Sharp Corp. |
| 229,000 |
| 4,202 |
|
Sony Corp. |
| 22,600 |
| 1,202 |
|
Sumitomo Mitsui Financial Group, Inc. |
| 645 |
| 5,634 |
|
Tokyo Electric Power Co. (The), Inc. |
| 112,800 |
| 3,748 |
|
Toshiba Corp. |
| 638,000 |
| 4,750 |
|
Toyota Motor Corp. |
| 132,900 |
| 8,071 |
|
Netherlands (8.7%) |
|
|
|
|
|
ABN AMRO Holding NV |
| 105,960 |
| 5,196 |
|
Arcelor Mittal |
| 114,647 |
| 6,208 |
|
Corporate Express |
| 114,000 |
| 1,543 |
|
European Aeronautic Defense and Space Co. |
| 113,190 |
| 3,664 |
|
ING Groep NV |
| 198,200 |
| 9,099 |
|
Koninklijke BAM Groep NV(†) |
| 93,900 |
| 2,503 |
|
Royal Dutch Shell PLC -Class A |
| 120,230 |
| 4,205 |
|
Royal KPN NV |
| 107,100 |
| 1,827 |
|
Wolters Kluwer NV |
| 73,200 |
| 2,176 |
|
Singapore (0.4%) |
|
|
|
|
|
Neptune Orient Lines, Ltd. |
| 637,000 |
| 1,509 |
|
Spain (1.5%) |
|
|
|
|
|
Banco Santander Central Hispano SA |
| 67,300 |
| 1,211 |
|
Repsol YPF SA |
| 151,600 |
| 5,015 |
|
Sweden (2.0%) |
|
|
|
|
|
Electrolux AB-Class B |
| 75,300 |
| 1,976 |
|
Nordea Bank AB |
| 184,500 |
| 3,212 |
|
Svenska Cellulosa AB-Class B |
| 60,800 |
| 3,149 |
|
Switzerland (3.6%) |
|
|
|
|
|
Credit Suisse Group |
| 100,000 |
| 7,910 |
|
Novartis AG |
| 26,240 |
| 1,532 |
|
Xstrata PLC |
| 106,370 |
| 5,618 |
|
United Kingdom (16.1%) |
|
|
|
|
|
AstraZeneca PLC |
| 88,600 |
| 4,855 |
|
Aviva PLC |
| 368,500 |
| 5,826 |
|
BAE Systems PLC |
| 471,700 |
| 4,311 |
|
Barclays PLC |
| 472,000 |
| 6,867 |
|
BHP Billiton PLC |
| 72,000 |
| 1,626 |
|
BP PLC |
| 365,700 |
| 4,136 |
|
British American Tobacco PLC |
| 65,800 |
| 2,041 |
|
Centrica PLC |
| 381,500 |
| 2,960 |
|
GlaxoSmithKline PLC |
| 100,000 |
| 2,898 |
|
Greene King PLC |
| 93,900 |
| 2,021 |
|
HBOS PLC |
| 296,580 |
| 6,423 |
|
Home Retail Group |
| 232,000 |
| 2,121 |
|
4
Marstons PLC |
| 231,200 |
| 1,995 |
|
Royal & Sun Alliance Insurance Group PLC |
| 659,161 |
| 2,187 |
|
Royal Bank of Scotland Group PLC |
| 210,600 |
| 8,129 |
|
Vodafone Group PLC |
| 3,086,312 |
| 8,857 |
|
Total Common Stocks (cost: $323,553) |
|
|
| 397,012 |
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (0.7%) |
|
|
|
|
|
Debt (0.7%) |
|
|
|
|
|
Bank Notes (0.1%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 83 |
| 83 |
|
5.27%, due 06/18/2007(*) |
| 83 |
| 83 |
|
Commercial Paper (0.1%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 33 |
| 33 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 32 |
| 32 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 22 |
| 22 |
|
5.29%, due 06/13/2007 |
| 16 |
| 16 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 16 |
| 16 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 16 |
| 16 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 16 |
| 16 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 16 |
| 16 |
|
5.28%, due 05/24/2007 |
| 16 |
| 16 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 33 |
| 33 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 32 |
| 32 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 33 |
| 33 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 33 |
| 33 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 66 |
| 66 |
|
5.30%, due 05/29/2007 |
| 16 |
| 16 |
|
5.29%, due 05/31/2007 |
| 17 |
| 17 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 17 |
| 17 |
|
5.29%, due 05/17/2007 |
| 17 |
| 17 |
|
5.28%, due 06/01/2007 |
| 17 |
| 17 |
|
5.29%, due 06/19/2007 |
| 22 |
| 22 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 25 |
| 25 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 17 |
| 17 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 33 |
| 33 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 17 |
| 17 |
|
Euro Dollar Overnight (0.1%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 17 |
| 17 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 33 |
| 33 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 33 |
| 33 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 33 |
| 33 |
|
5
National Australia Bank |
|
|
|
|
| |
5.30%, due 05/01/2007 |
| 33 |
| 33 |
| |
Rabobank Nederland |
|
|
|
|
| |
5.30%, due 05/01/2007 |
| 33 |
| 33 |
| |
Royal Bank of Canada |
|
|
|
|
| |
5.30%, due 05/01/2007 |
| 33 |
| 33 |
| |
Royal Bank of Scotland |
|
|
|
|
| |
5.29%, due 05/07/2007 |
| 17 |
| 17 |
| |
Societe Generale |
|
|
|
|
| |
5.31%, due 05/01/2007 |
| 33 |
| 33 |
| |
Svenska Handlesbanken |
|
|
|
|
| |
5.31%, due 05/01/2007 |
| 63 |
| 63 |
| |
Euro Dollar Terms (0.2%) |
|
|
|
|
| |
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
| |
5.31%, due 05/14/2007 |
| 33 |
| 33 |
| |
Bank of Montreal |
|
|
|
|
| |
5.28%, due 05/18/2007 |
| 17 |
| 17 |
| |
Bank of Nova Scotia |
|
|
|
|
| |
5.28%, due 05/09/2007 |
| 23 |
| 23 |
| |
Barclays |
|
|
|
|
| |
5.29%, due 05/07/2007 |
| 33 |
| 33 |
| |
5.30%, due 05/16/2007 |
| 33 |
| 33 |
| |
5.29%, due 05/21/2007 |
| 17 |
| 17 |
| |
5.30%, due 06/04/2007 |
| 17 |
| 17 |
| |
5.29%, due 06/08/2007 |
| 33 |
| 33 |
| |
Calyon |
|
|
|
|
| |
5.30%, due 05/17/2007 |
| 17 |
| 17 |
| |
5.31%, due 05/24/2007 |
| 33 |
| 33 |
| |
Canadian Imperial Bank of Commerce |
|
|
|
|
| |
5.28%, due 05/16/2007 |
| 50 |
| 50 |
| |
5.28%, due 05/29/2007 |
| 17 |
| 17 |
| |
Credit Suisse First Boston Corp. |
|
|
|
|
| |
5.30%, due 05/17/2007 |
| 33 |
| 33 |
| |
Deutsche Bank |
|
|
|
|
| |
5.30%, due 05/15/2007 |
| 33 |
| 33 |
| |
Fortis Bank |
|
|
|
|
| |
5.28%, due 05/21/2007 |
| 50 |
| 50 |
| |
5.28%, due 05/25/2007 |
| 50 |
| 50 |
| |
5.30%, due 06/25/2007 |
| 33 |
| 33 |
| |
HBOS Halifax Bank of Scotland |
|
|
|
|
| |
5.30%, due 06/13/2007 |
| 50 |
| 50 |
| |
Royal Bank of Scotland |
|
|
|
|
| |
5.30%, due 05/08/2007 |
| 33 |
| 33 |
| |
5.30%, due 05/09/2007 |
| 17 |
| 17 |
| |
5.31%, due 05/25/2007 |
| 33 |
| 33 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
| |
5.28%, due 05/15/2007 |
| 17 |
| 17 |
| |
Swedbank AB |
|
|
|
|
| |
5.30%, due 05/11/2007 |
| 33 |
| 33 |
| |
Toronto Dominion Bank |
|
|
|
|
| |
5.28%, due 05/10/2007 |
| 33 |
| 33 |
| |
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 33 |
| 33 |
| |
5.29%, due 06/12/2007 |
| 66 |
| 66 |
| |
5.29%, due 06/15/2007 |
| 50 |
| 50 |
| |
5.29%, due 06/18/2007 |
| 83 |
| 83 |
| |
Repurchase Agreements (0.2%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $92 on 05/01/2007 |
| 92 |
| 92 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $365 on 05/01/2007 |
| 365 |
| 365 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $160 on 05/01/2007 |
| 160 |
| 160 |
| |
Total Security Lending Collateral (cost: $2,659) |
|
|
| 2,659 |
| |
Total Investment Securities (cost: $326,212)(#) |
|
|
| $ | 399,671 |
|
6
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) Non-income producing.
(†) At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $2,467.
(a) Passive Foreign Investment Company.
(*) Floating or variable rate note. Rate is listed as of April 30, 2007.
(††) Cash collateral for the Repurchase Agreements, valued at $632, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively.
(o) Value is less than $1.
(#) Aggregate cost for federal income tax purposes is $327,163. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $78,418 and $5,910, respectively. Net unrealized appreciation for tax purposes is $72,508.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $495 or 0.1% of the net assets of the Fund.
The notes to the financial statements are an integral part of this report.
7
|
| Percentage of |
|
|
| |
|
| Net Assets |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Commercial Banks |
| 17.2 | % | $ | 72,314 |
|
Oil & Gas Extraction |
| 9.2 | % | 38,492 |
| |
Automotive |
| 7.3 | % | 30,520 |
| |
Insurance |
| 6.7 | % | 27,987 |
| |
Electric Services |
| 4.7 | % | 19,423 |
| |
Primary Metal Industries |
| 4.5 | % | 18,724 |
| |
Telecommunications |
| 4.1 | % | 17,009 |
| |
Pharmaceuticals |
| 4.0 | % | 16,523 |
| |
Chemicals & Allied Products |
| 3.4 | % | 14,279 |
| |
Metal Mining |
| 3.3 | % | 13,923 |
| |
Business Credit Institutions |
| 2.9 | % | 12,086 |
| |
Air Transportation |
| 2.8 | % | 11,668 |
| |
Electronic Components & Accessories |
| 2.7 | % | 11,292 |
| |
Life Insurance |
| 2.7 | % | 11,286 |
| |
Aerospace |
| 1.9 | % | 7,975 |
| |
Water Transportation |
| 1.8 | % | 7,699 |
| |
Computer & Office Equipment |
| 1.7 | % | 6,913 |
| |
Rubber & Misc. Plastic Products |
| 1.2 | % | 4,994 |
| |
Stone, Clay & Glass Products |
| 1.2 | % | 4,944 |
| |
Beer, Wine & Distilled Beverages |
| 1.2 | % | 4,800 |
| |
Petroleum Refining |
| 1.1 | % | 4,485 |
| |
Wholesale Trade Durable Goods |
| 1.0 | % | 4,245 |
| |
Paper & Allied Products |
| 0.8 | % | 3,519 |
| |
Electronic & Other Electric Equipment |
| 0.8 | % | 3,177 |
| |
Gas Production & Distribution |
| 0.7 | % | 2,960 |
| |
Communications Equipment |
| 0.7 | % | 2,754 |
| |
Engineering & Management Services |
| 0.6 | % | 2,503 |
| |
Printing & Publishing |
| 0.5 | % | 2,176 |
| |
Department Stores |
| 0.5 | % | 2,121 |
| |
Amusement & Recreation Services |
| 0.5 | % | 2,047 |
| |
Tobacco Products |
| 0.5 | % | 2,041 |
| |
Beverages |
| 0.5 | % | 2,021 |
| |
Computer & Data Processing Services |
| 0.5 | % | 1,997 |
| |
Radio, Television & Computer Stores |
| 0.5 | % | 1,862 |
| |
Motor Vehicles, Parts & Supplies |
| 0.4 | % | 1,848 |
| |
Real Estate |
| 0.4 | % | 1,791 |
| |
Holding & Other Investment Offices |
| 0.3 | % | 1,284 |
| |
Medical Instruments & Supplies |
| 0.2 | % | 979 |
| |
Food & Kindred Products |
| 0.1 | % | 351 |
| |
Investment Securities, at value |
| 95.1 | % | 397,012 |
| |
Short-Term Investments |
| 0.7 | % | 2,659 |
| |
Total Investment Securities |
| 95.8 | % | $ | 399,671 |
|
8
TA IDEX Bjurman, Barry Micro Emerging Growth
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,058.30 |
| 1.19 | % | $ | 6.07 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,018.89 |
| 1.19 | % | 5.96 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
9
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Basic Materials |
| 1.3 | % |
Communications |
| 17.1 |
|
Consumer Cyclical |
| 13.2 |
|
Consumer Non-Cyclical |
| 20.1 |
|
Energy |
| 3.2 |
|
Financial |
| 5.0 |
|
Industrial |
| 20.1 |
|
Technology |
| 20.0 |
|
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
10
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (99.0%) |
|
|
|
|
| |
Aerospace (0.9%) |
|
|
|
|
| |
Kaman Corp.-Class A |
| 24,800 |
| $ | 615 |
|
Apparel & Accessory Stores (2.9%) |
|
|
|
|
| |
Charlotte Russe Holding, Inc.(‡) |
| 33,100 |
| 905 |
| |
JOS A. Bank Clothiers, Inc.(‡) |
| 28,500 |
| 1,101 |
| |
Automotive (1.6%) |
|
|
|
|
| |
Spartan Motors, Inc. |
| 38,700 |
| 1,102 |
| |
Beverages (3.3%) |
|
|
|
|
| |
Boston Beer Co., Inc.-Class A(‡) |
| 26,300 |
| 847 |
| |
Jones Soda Co.(‡) |
| 32,300 |
| 794 |
| |
National Beverage Corp.(‡) |
| 42,300 |
| 658 |
| |
Business Services (3.8%) |
|
|
|
|
| |
COMSYS IT Partners, Inc.(‡) |
| 63,100 |
| 1,436 |
| |
Icon PLC, Sponsored ADR(‡) |
| 26,000 |
| 1,220 |
| |
Commercial Banks (0.9%) |
|
|
|
|
| |
Cass Information Systems, Inc. |
| 19,899 |
| 652 |
| |
Communication (1.8%) |
|
|
|
|
| |
Lodgenet Entertainment Corp.(‡) |
| 37,100 |
| 1,264 |
| |
Communications Equipment (6.7%) |
|
|
|
|
| |
C-COR, Inc.(‡) |
| 96,700 |
| 1,191 |
| |
Standard Microsystems Corp.(‡) |
| 28,600 |
| 917 |
| |
Syntax-Brillian Corp.(‡) |
| 163,100 |
| 1,165 |
| |
Tessco Technologies, Inc.(‡) |
| 48,150 |
| 1,372 |
| |
Computer & Data Processing Services (13.6%) |
|
|
|
|
| |
HMS Holdings Corp.(‡) |
| 70,500 |
| 1,562 |
| |
Interwoven, Inc.(‡) |
| 54,214 |
| 828 |
| |
JDA Software Group, Inc.(‡) |
| 49,500 |
| 881 |
| |
Opnet Technologies, Inc.(‡) |
| 58,600 |
| 659 |
| |
Smith Micro Software, Inc.(‡) |
| 42,500 |
| 675 |
| |
Stratasys, Inc.(‡) |
| 29,500 |
| 1,402 |
| |
TheStreet.com, Inc. |
| 44,600 |
| 450 |
| |
Vasco Data Security International(‡) |
| 92,300 |
| 1,974 |
| |
Vocus, Inc.(‡) |
| 44,800 |
| 1,008 |
| |
Computer & Office Equipment (1.5%) |
|
|
|
|
| |
Sigma Designs, Inc.(‡) |
| 44,100 |
| 1,033 |
| |
Construction (2.0%) |
|
|
|
|
| |
Matrix Service Co.(‡) |
| 33,800 |
| 825 |
| |
Team, Inc.(‡) |
| 17,000 |
| 585 |
| |
Electrical Goods (0.5%) |
|
|
|
|
| |
Tyler Technologies, Inc.(‡) |
| 28,200 |
| 337 |
| |
Electronic Components & Accessories (6.2%) |
|
|
|
|
| |
Advanced Energy Industries, Inc.(‡) |
| 50,000 |
| 1,225 |
| |
Atheros Communications, Inc.(‡) |
| 47,700 |
| 1,278 |
| |
Ceradyne, Inc.(‡) |
| 20,000 |
| 1,177 |
| |
Ultra Clean Holdings(‡) |
| 42,400 |
| 621 |
| |
Fabricated Metal Products (3.4%) |
|
|
|
|
| |
Dynamic Materials Corp.(‡) |
| 39,700 |
| 1,312 |
| |
Smith & Wesson Holding Corp.(‡) |
| 73,700 |
| 1,011 |
| |
Food & Kindred Products (0.5%) |
|
|
|
|
| |
Imperial Sugar Co. |
| 11,300 |
| 336 |
| |
Health Services (2.7%) |
|
|
|
|
| |
LHC Group, Inc.(‡) |
| 38,100 |
| 975 |
| |
Sun Healthcare Group, Inc.(‡) |
| 73,500 |
| 922 |
| |
Holding & Other Investment Offices (1.4%) |
|
|
|
|
| |
Cherokee, Inc. |
| 20,900 |
| 960 |
| |
Industrial Machinery & Equipment (4.8%) |
|
|
|
|
| |
Astec Industries, Inc.(‡) |
| 31,500 |
| 1,282 |
| |
Axcelis Technologies, Inc.(‡) |
| 136,400 |
| 1,043 |
| |
Fuel-Tech, Inc.(‡) |
| 39,200 |
| 986 |
| |
Instruments & Related Products (6.6%) |
|
|
|
|
| |
Bruker BioSciences Corp.(‡) |
| 127,550 |
| 1,468 |
| |
II-VI, Inc.(‡) |
| 16,300 |
| 442 |
| |
K-Tron International, Inc.(‡) |
| 14,000 |
| 1,163 |
| |
11
Mesa Laboratories, Inc. |
| 29,300 |
| 559 |
| |
Movado Group, Inc. |
| 28,900 |
| 951 |
| |
Insurance (3.4%) |
|
|
|
|
| |
CNA Surety Corp.(‡) |
| 14,000 |
| 289 |
| |
Darwin Professional Underwriters, Inc.(‡) |
| 42,100 |
| 1,093 |
| |
Mercer Insurance Group, Inc. |
| 27,400 |
| 512 |
| |
National Interstate Corp. |
| 18,800 |
| 450 |
| |
Management Services (4.3%) |
|
|
|
|
| |
Greenfield Online, Inc.(‡) |
| 29,700 |
| 486 |
| |
Huron Consulting Group, Inc.(‡) |
| 20,500 |
| 1,241 |
| |
Omnicell, Inc.(‡) |
| 55,300 |
| 1,269 |
| |
Manufacturing Industries (0.6%) |
|
|
|
|
| |
LJ International, Inc.(‡) |
| 40,700 |
| 399 |
| |
Medical Instruments & Supplies (2.1%) |
|
|
|
|
| |
Avigen, Inc.(‡) |
| 107,400 |
| 714 |
| |
Bovie Medical Corp.(‡) |
| 100,000 |
| 755 |
| |
Metal Mining (1.3%) |
|
|
|
|
| |
Hecla Mining Co.(‡) |
| 104,600 |
| 922 |
| |
Oil & Gas Extraction (2.0%) |
|
|
|
|
| |
Arena Resources, Inc.(‡) |
| 29,100 |
| 1,366 |
| |
Pharmaceuticals (4.1%) |
|
|
|
|
| |
Allscripts Healthcare Solutions, Inc.(‡) |
| 41,600 |
| 1,100 |
| |
Bradley Pharmaceuticals, Inc.(‡) |
| 19,700 |
| 387 |
| |
Parexel International Corp.(‡) |
| 33,400 |
| 1,312 |
| |
Primary Metal Industries (3.3%) |
|
|
|
|
| |
Brush Engineered Materials, Inc.(‡) |
| 32,700 |
| 1,570 |
| |
Superior Essex, Inc.(‡) |
| 20,300 |
| 725 |
| |
Retail Trade (3.3%) |
|
|
|
|
| |
Ezcorp, Inc.(‡) |
| 53,700 |
| 814 |
| |
GSI Commerce, Inc.(‡) |
| 39,500 |
| 873 |
| |
PC Connection, Inc.(‡) |
| 46,000 |
| 590 |
| |
Stone, Clay & Glass Products (1.8%) |
|
|
|
|
| |
Apogee Enterprises, Inc. |
| 52,000 |
| 1,252 |
| |
Storage (0.6%) |
|
|
|
|
| |
Extra Space Storage, Inc. REIT |
| 21,300 |
| 399 |
| |
Telecommunications (2.7%) |
|
|
|
|
| |
Cbeyond Communications, Inc.(‡) |
| 37,600 |
| 1,308 |
| |
Eschelon Telecom, Inc.(‡) |
| 18,100 |
| 530 |
| |
Water Transportation (2.4%) |
|
|
|
|
| |
Gulfmark Offshore, Inc.(‡) |
| 14,900 |
| 714 |
| |
Navios Maritime Holdings, Inc. |
| 104,100 |
| 911 |
| |
Wholesale Trade Durable Goods (2.0%) |
|
|
|
|
| |
Houston Wire & Cable Co.(‡) |
| 46,600 |
| 1,374 |
| |
Total Common Stocks (cost: $59,170) |
|
|
| 68,524 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $59,170)(#) |
|
|
| $ | 68,524 |
|
The notes to the financial statements are an integral part of this report.
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) Non-income producing.
(#) Aggregate cost for federal income tax purposes is $59,195. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $10,840 and $1,511, respectively. Net unrealized appreciation for tax purposes is $9,329.
12
DEFINITIONS:
ADR American Depositary Receipt
REIT Real Estate Investment Trust
13
TA IDEX BlackRock Global Allocation
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,090.50 |
| 0.85 | % | $ | 4.41 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,020.58 |
| 0.85 | % | 4.26 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
14
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April, 2007 (unaudited)
Africa |
| 0.1 | % |
Asia |
| 2.6 | % |
Eastern Europe |
| 0.1 | % |
Europe |
| 15.8 | % |
Latin America |
| 0.3 | % |
North America |
| 58.1 | % |
Other |
| 3.7 | % |
Pacific Rim |
| 16.6 | % |
South America |
| 2.7 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
15
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
|
|
| Principal |
| Value |
| ||
U.S. GOVERNMENT OBLIGATIONS (20.3%)(v) |
|
|
|
|
|
|
| ||
United States (20.3%) |
|
|
|
|
|
|
| ||
U.S. Treasury Bond |
|
|
|
|
|
|
| ||
2.38%, due 01/15/2027 |
|
|
| $ | 2,295 |
| $ | 2,312 |
|
U.S. Treasury Inflation Indexed Bond |
|
|
|
|
|
|
| ||
0.88%, due 04/15/2010 |
|
|
| 5,075 |
| 4,913 |
| ||
2.38%, due 04/15/2011(d) |
|
|
| 15,376 |
| 15,588 |
| ||
1.88%, due 07/15/2015(d) |
|
|
| 4,629 |
| 4,529 |
| ||
2.00%, due 01/15/2016 |
|
|
| 10,625 |
| 10,471 |
| ||
2.50%, due 07/15/2016 |
|
|
| 13,739 |
| 14,107 |
| ||
U.S. Treasury Note |
|
|
|
|
|
|
| ||
3.50%, due 05/31/2007 |
|
|
| 1,000 |
| 999 |
| ||
4.38%, due 12/31/2007 |
|
|
| 700 |
| 697 |
| ||
4.88%, due 04/30/2008 |
|
|
| 600 |
| 600 |
| ||
4.00%, due 06/15/2009 |
|
|
| 500 |
| 494 |
| ||
4.88%, due 05/31/2011 |
|
|
| 5,650 |
| 5,726 |
| ||
4.63%, due 02/29/2012 |
|
|
| 6,975 |
| 7,007 |
| ||
4.25%, due 11/15/2014 |
|
|
| 3,750 |
| 3,670 |
| ||
4.50%, due 11/15/2015 |
|
|
| 5,525 |
| 5,481 |
| ||
5.13%, due 05/15/2016 |
|
|
| 3,100 |
| 3,213 |
| ||
4.88%, due 08/15/2016 |
|
|
| 3,100 |
| 3,157 |
| ||
4.63%, due 11/15/2016 |
|
|
| 2,750 |
| 2,748 |
| ||
4.63%, due 02/15/2017 |
|
|
| 4,588 |
| 4,586 |
| ||
Total U.S. Government Obligations (cost: $89,537) |
|
|
|
|
| 90,298 |
| ||
FOREIGN GOVERNMENT OBLIGATIONS (4.7%) |
|
|
|
|
|
|
| ||
Brazil (0.8%) |
|
|
|
|
|
|
| ||
Republic of Brazil Credit Linked Note (JPMorgan Chase & Co.) |
|
|
|
|
|
|
| ||
6.00%, due 08/15/2010(a) |
|
|
| 1,750 |
| 1,386 |
| ||
6.00%, due 08/15/2010(b) |
|
|
| 2,040 |
| 1,616 |
| ||
Zero Coupon, due 08/16/2010(b) |
|
|
| 800 |
| 634 |
| ||
Canada (0.4%) |
|
|
|
|
|
|
| ||
Canada Government |
|
|
|
|
|
|
| ||
4.00%, due 09/01/2010 |
| CAD |
| 2,150 |
| 1,939 |
| ||
Germany (1.6%) |
|
|
|
|
|
|
| ||
Federal Republic of Germany |
|
|
|
|
|
|
| ||
4.00%, due 07/04/2016 |
| EUR |
| 5,200 |
| 7,017 |
| ||
Malaysia (0.6%) |
|
|
|
|
|
|
| ||
Malaysia Government |
|
|
|
|
|
|
| ||
8.60%, due 12/01/2007 |
| MYR |
| 3,500 |
| 1,053 |
| ||
3.87%, due 04/13/2010 |
| MYR |
| 700 |
| 207 |
| ||
3.76%, due 04/28/2011 |
| MYR |
| 5,100 |
| 1,507 |
| ||
Netherlands (0.4%) |
|
|
|
|
|
|
| ||
Kingdom of the Netherlands |
|
|
|
|
|
|
| ||
3.75%, due 07/15/2014 |
| EUR |
| 1,200 |
| 1,597 |
| ||
New Zealand (0.1%) |
|
|
|
|
|
|
| ||
New Zealand Government |
|
|
|
|
|
|
| ||
4.50%, due 02/15/2016 |
| NZD |
| 400 |
| 401 |
| ||
Poland (0.2%) |
|
|
|
|
|
|
| ||
Republic of Poland |
|
|
|
|
|
|
| ||
3.00%, due 08/24/2016 |
| PLN |
| 2,987 |
| 1,087 |
| ||
Sweden (0.3%) |
|
|
|
|
|
|
| ||
Kingdom of Sweden |
|
|
|
|
|
|
| ||
4.00%, due 12/01/2008 |
| SEK |
| 7,000 |
| 1,268 |
| ||
United Kingdom (0.3%) |
|
|
|
|
|
|
| ||
United Kingdom |
|
|
|
|
|
|
| ||
4.25%, due 03/07/2011 |
| GBP |
| 700 |
| 1,347 |
| ||
Total Foreign Government Obligations (cost: $19,358) |
|
|
|
|
| 21,059 |
| ||
ASSET-BACKED SECURITIES (0.1%) |
|
|
|
|
|
|
| ||
Cayman Islands (0.1%) |
|
|
|
|
|
|
| ||
Latitude Collateralize Loan Obligation, Ltd., Series 2005-1A, Class SUB-144A |
|
|
|
|
|
|
| ||
Zero Coupon, due 12/15/2017(a)(¡) |
|
|
| 200 |
| 191 |
| ||
Total Asset-Backed Securities (cost: $191) |
|
|
|
|
| 191 |
| ||
16
CORPORATE DEBT SECURITIES (9.0%) |
|
|
|
|
|
|
|
Brazil (0.2%) |
|
|
|
|
|
|
|
Cosan SA Industria e Comercio Reg S |
|
|
|
|
|
|
|
9.00%, due 11/01/2009 |
|
|
| 898 |
| 960 |
|
Canada (0.2%) |
|
|
|
|
|
|
|
Rogers Wireless Communications, Inc. |
|
|
|
|
|
|
|
8.48%, due 12/15/2010(*) |
|
|
| 370 |
| 377 |
|
Rogers Wireless, Inc., Senior Note |
|
|
|
|
|
|
|
7.63%, due 12/15/2011 |
| CAD |
| 500 |
| 502 |
|
Cayman Islands (0.8%) |
|
|
|
|
|
|
|
ASIF II, Series E, (MTN) |
|
|
|
|
|
|
|
1.20%, due 03/20/2008 |
| JPY |
| 90,000 |
| 755 |
|
Chaoda Modern Agriculture Reg S |
|
|
|
|
|
|
|
7.75%, due 02/08/2010 |
|
|
| 1,583 |
| 1,605 |
|
Cosan Finance, Ltd.-144A |
|
|
|
|
|
|
|
7.00%, due 02/01/2017(a) |
|
|
| 90 |
| 89 |
|
Hutchison Whampoa International, Ltd., Guaranteed Note, Reg S |
|
|
|
|
|
|
|
5.45%, due 11/24/2010 |
|
|
| 1,194 |
| 1,202 |
|
France (0.8%) |
|
|
|
|
|
|
|
ERAP, Series E |
|
|
|
|
|
|
|
3.38%, due 04/25/2008 |
| EUR |
| 1,250 |
| 1,693 |
|
Unedic |
|
|
|
|
|
|
|
3.50%, due 09/18/2008 |
| EUR |
| 1,250 |
| 1,690 |
|
Germany (0.7%) |
|
|
|
|
|
|
|
Kreditanstalt fuer Wiederaufbau |
|
|
|
|
|
|
|
4.25%, due 07/04/2014 |
| EUR |
| 1,500 |
| 2,052 |
|
Norddeutsche Landesbank Girozentrale, Series E |
|
|
|
|
|
|
|
0.45%, due 01/19/2009 |
| JPY |
| 150,000 |
| 1,247 |
|
India (0.4%) |
|
|
|
|
|
|
|
Reliance Communication, Ltd. |
|
|
|
|
|
|
|
Zero coupon, due 05/10/2011 |
|
|
| 300 |
| 371 |
|
Reliance Communications, Ltd. |
|
|
|
|
|
|
|
Zero Coupon, due 03/01/2012 |
|
|
| 300 |
| 320 |
|
Tata Motors, Ltd. |
|
|
|
|
|
|
|
1.00%, due 04/27/2011 |
|
|
| 750 |
| 915 |
|
Japan (0.2%) |
|
|
|
|
|
|
|
Bank of Kyoto Ltd. (The) |
|
|
|
|
|
|
|
1.90%, due 09/30/2009 |
| JPY |
| 44,000 |
| 806 |
|
Malaysia (0.1%) |
|
|
|
|
|
|
|
Johor Corp. |
|
|
|
|
|
|
|
1.00%, due 07/31/2009 |
| MYR |
| 1,925 |
| 630 |
|
Supra National (0.4%) |
|
|
|
|
|
|
|
European Investment Bank, Series E |
|
|
|
|
|
|
|
Zero Coupon, due 05/01/2008 |
| BRL |
| 4,000 |
| 1,770 |
|
Taiwan (0.0%) |
|
|
|
|
|
|
|
Shin Kong Financial Holding Co., Ltd. |
|
|
|
|
|
|
|
Zero Coupon, due 06/17/2009 |
|
|
| 20 |
| 22 |
|
United States (5.2%) |
|
|
|
|
|
|
|
Calpine Corp.-144A |
|
|
|
|
|
|
|
Zero Coupon, due 07/15/2013(a)(e) |
|
|
| 2,142 |
| 2,271 |
|
DAX Index Linked Note (Eksportfinans ASA) |
|
|
|
|
|
|
|
Zero Coupon, due 10/19/2007(c) |
|
|
| 1,400 |
| 1,659 |
|
Dow Jones EURO STOXX 50 Index Linked Note (JPMorgan Chase & Co.) |
|
|
|
|
|
|
|
Zero Coupon, due 06/17/2008(d) |
|
|
| 2,225 |
| 2,387 |
|
Fannie Mae |
|
|
|
|
|
|
|
5.40%, due 02/01/2008 |
|
|
| 842 |
| 843 |
|
General Electric Capital Corp. |
|
|
|
|
|
|
|
0.69%, due 01/15/2010(*) |
| JPY |
| 204,000 |
| 1,706 |
|
Gold-Linked Notes (UBS AG) |
|
|
|
|
|
|
|
Zero Coupon, due 04/23/2008(e) |
|
|
| 480 |
| 548 |
|
Zero Coupon, due 04/28/2008(e) |
|
|
| 490 |
| 567 |
|
Zero Coupon, due 05/27/2008(e) |
|
|
| 480 |
| 524 |
|
17
Zero Coupon, due 06/18/2008(e) |
| 500 |
| 537 |
|
Zero Coupon, due 06/19/2008(e) |
| 510 |
| 549 |
|
Zero Coupon, due 07/11/2008(e) |
| 510 |
| 571 |
|
Gold-Linked Notes (UBS AG)-144A |
|
|
|
|
|
Zero Coupon, due 07/09/2008(a)(e) |
| 520 |
| 558 |
|
McMoRan Exploration Co. |
|
|
|
|
|
5.25%, due 10/06/2011 |
| 370 |
| 384 |
|
Nabi Biopharmaceuticals |
|
|
|
|
|
2.88%, due 04/15/2025 |
| 80 |
| 71 |
|
Preferred Term Securities XXIV, Ltd. Linked Note,(FTN Financial Capital Markets)-144A |
|
|
|
|
|
Zero Coupon, due 03/22/2037(a)(g) |
| 350 |
| 333 |
|
Preferred Term Securities XXV, Ltd. (FTN Financial Capital Markets) |
|
|
|
|
|
Zero Coupon, due 06/22/2037 |
| 175 |
| 176 |
|
S&P 500 Index Linked Note (Morgan Stanley) |
|
|
|
|
|
Zero Coupon, due 07/07/2008(h) |
| 6,595 |
| 6,249 |
|
TOPIX Index Linked Note, (Rabobank Nederland New York Branch) |
|
|
|
|
|
Zero Coupon, due 01/28/2008(f) |
| 3,250 |
| 2,992 |
|
Total Corporate Debt Securities (cost: $39,004) |
|
|
| 39,931 |
|
CONVERTIBLE BOND (1.3%) |
|
|
|
|
|
Bermuda (0.1%) |
|
|
|
|
|
Hongkong Land CB 2005, Ltd. |
|
|
|
|
|
2.75%, due 12/21/2012 |
| 200 |
| 269 |
|
Noble Group, Ltd. |
|
|
|
|
|
0.90%, due 04/20/2009 |
| 70 |
| 99 |
|
Cayman Islands (0.1%) |
|
|
|
|
|
Chaoda Modern Agriculture |
|
|
|
|
|
Zero coupon, due 05/08/2011 |
| 2,710 |
| 429 |
|
YTL Power Finance Cayman, Ltd. |
|
|
|
|
|
Zero Coupon, due 05/09/2010 |
| 200 |
| 228 |
|
Hong Kong (0.0%) |
|
|
|
|
|
Brilliance China Finance, Ltd. |
|
|
|
|
|
Zero Coupon, due 06/07/2011 |
| 160 |
| 181 |
|
Gujarat NRE Coke, Ltd. |
|
|
|
|
|
Zero Coupon, due 04/12/2011 |
| 100 |
| 96 |
|
Housing Development Finance Corp. |
|
|
|
|
|
Zero Coupon, due 09/27/2010 |
| 400 |
| 534 |
|
India (0.3%) |
|
|
|
|
|
Punj Lloyd, Ltd. |
|
|
|
|
|
Zero coupon, due 04/08/2011 |
| 500 |
| 500 |
|
Malaysia (0.6%) |
|
|
|
|
|
Berjaya Land Berhad |
|
|
|
|
|
8.00%, due 08/15/2011 |
| 640 |
| 189 |
|
Feringghi Capital, Ltd. |
|
|
|
|
|
Zero Coupon, due 12/22/2009 |
| 600 |
| 681 |
|
IOI Capital |
|
|
|
|
|
Zero coupon, due 12/18/2011 |
| 200 |
| 225 |
|
IOI Investment Berhad |
|
|
|
|
|
Zero Coupon, due 09/18/2009 |
| 40 |
| 99 |
|
Rafflesia Capital, Ltd. |
|
|
|
|
|
1.25%, due 10/04/2011 |
| 1,100 |
| 1,250 |
|
Resorts World Berhad |
|
|
|
|
|
Zero Coupon, due 09/19/2008 |
| 380 |
| 137 |
|
Singapore (0.1%) |
|
|
|
|
|
CapitaLand, Ltd. |
|
|
|
|
|
2.10%, due 11/15/2016 |
| 250 |
| 221 |
|
Keppel Land, Ltd. |
|
|
|
|
|
2.55%, due 06/23/2013 |
| 200 |
| 202 |
|
United States (0.0%) |
|
|
|
|
|
Cell Genesys, Inc., Senior Note |
|
|
|
|
|
3.13%, due 11/01/2011 |
| 70 |
| 60 |
|
Virgin Islands (0.1%) |
|
|
|
|
|
Beijing Enterprises Investment, Ltd. |
|
|
|
|
|
Zero Coupon, due 12/21/2010 |
| 345 |
| 479 |
|
Total Convertible Bond (cost: $5,248) |
|
|
| 5,879 |
|
18
|
| Shares |
| Value |
|
CONVERTIBLE PREFERRED STOCKS (0.2%) |
|
|
|
|
|
United States (0.2%) |
|
|
|
|
|
Fannie Mae |
| 8 |
| 811 |
|
Total Convertible Preferred Stocks (cost: $736) |
|
|
| 811 |
|
|
|
|
|
|
|
PREFERRED STOCKS (0.7%) |
|
|
|
|
|
Brazil (0.2%) |
|
|
|
|
|
All America Latina Logistica SA |
| 29,000 |
| 342 |
|
Cia Brasileira de Distribuicao Grupo Pao de Acucar(‡) |
| 3,278,500 |
| 105 |
|
Usinas Siderurgicas de Minas Gerais SA-Class A |
| 6,300 |
| 295 |
|
United States (0.5%) |
|
|
|
|
|
Goldman Sachs Group, Inc. |
| 2,225,000 |
| 2,400 |
|
Total Preferred Stocks (cost: $2,637) |
|
|
| 3,142 |
|
|
|
|
|
|
|
COMMON STOCKS (55.3%) |
|
|
|
|
|
Australia (1.1%) |
|
|
|
|
|
BHP Billiton, Ltd. |
| 32,000 |
| 786 |
|
Coca-Cola Amatil, Ltd. |
| 21,900 |
| 173 |
|
Great Southern Plantations, Ltd. |
| 33,800 |
| 57 |
|
Macquarie Airports |
| 94,000 |
| 311 |
|
Macquarie Bank, Ltd. |
| 10,900 |
| 789 |
|
Macquarie Infrastructure Group(i) |
| 244,200 |
| 770 |
|
Newcrest Mining, Ltd. |
| 10,200 |
| 197 |
|
Rio Tinto, Ltd. |
| 10,500 |
| 724 |
|
Transurban Group |
| 87,675 |
| 587 |
|
Woodside Petroleum, Ltd. |
| 10,800 |
| 354 |
|
Zinifex, Ltd. |
| 20,800 |
| 287 |
|
Austria (0.0%) |
|
|
|
|
|
Telekom Austria AG |
| 3,500 |
| 99 |
|
Belgium (0.5%) |
|
|
|
|
|
AGFA-Gevaert NV |
| 14,597 |
| 354 |
|
RHJ International(‡) |
| 57,500 |
| 1,161 |
|
RHJ International-144A |
| 26,600 |
| 537 |
|
Bermuda (1.0%) |
|
|
|
|
|
Accenture, Ltd.-Class A |
| 300 |
| 12 |
|
Axis Capital Holdings, Ltd. |
| 400 |
| 15 |
|
Cheung Kong Infrastructure Holdings, Ltd. |
| 104,000 |
| 374 |
|
Endurance Specialty Holdings, Ltd. |
| 18,100 |
| 677 |
|
Everest Re Group, Ltd. |
| 900 |
| 91 |
|
Foster Wheeler, Ltd.(‡) |
| 23,300 |
| 1,604 |
|
IPC Holdings, Ltd. |
| 10,000 |
| 300 |
|
Platinum Underwriters Holdings, Ltd. |
| 7,700 |
| 263 |
|
RenaissanceRe Holdings, Ltd. |
| 5,000 |
| 271 |
|
Tyco International, Ltd. |
| 19,700 |
| 643 |
|
Weatherford International, Ltd.(‡) |
| 4,700 |
| 247 |
|
Brazil (1.3%) |
|
|
|
|
|
Cia Energetica de Minas Gerais, ADR |
| 3,100 |
| 161 |
|
Cia Vale do Rio Doce-Class A, ADR |
| 17,400 |
| 595 |
|
Companhia de Saneamento de Minas Gerais |
| 13,300 |
| 171 |
|
Cosan SA Industria e Comercio(‡) |
| 10,200 |
| 204 |
|
Datasul SA |
| 24,000 |
| 270 |
|
Gafisa SA |
| 9,300 |
| 131 |
|
Localiza Rent A CAR |
| 17,400 |
| 178 |
|
Obrascon Huarte Lain Brasil SA |
| 12,600 |
| 194 |
|
Petroleo Brasileiro SA, ADR |
| 37,400 |
| 3,543 |
|
Uniao de Bancos Brasileiros SA, GDR |
| 1,800 |
| 175 |
|
Vivo Participacoes SA, ADR |
| 52,500 |
| 239 |
|
Canada (1.4%) |
|
|
|
|
|
Alamos Gold, Inc.(‡) |
| 44,500 |
| 269 |
|
Barrick Gold Corp. |
| 7,795 |
| 219 |
|
BCE, Inc. |
| 600 |
| 20 |
|
19
Canadian Natural Resources, Ltd. |
| 3,500 |
| 209 |
|
Canadian Pacific Railway, Ltd. |
| 22,800 |
| 1,450 |
|
Kinross Gold Corp.(‡) |
| 109,319 |
| 1,460 |
|
Nortel Networks Corp.(‡) |
| 22,300 |
| 510 |
|
Peak Gold, Ltd.(‡) |
| 82,000 |
| 59 |
|
Peak Gold, Ltd. Warrants, Expires 4/03/2012 |
| 41,000 |
| 15 |
|
Petro-Canada |
| 7,100 |
| 317 |
|
Rogers Communications, Inc.-Class B |
| 28,400 |
| 1,084 |
|
Saskatchewan Wheat Pool(‡) |
| 23,400 |
| 176 |
|
Sun Life Financial, Inc. |
| 200 |
| 9 |
|
Suncor Energy, Inc. |
| 5,800 |
| 467 |
|
Talisman Energy, Inc. |
| 4,500 |
| 86 |
|
Cayman Islands (1.1%) |
|
|
|
|
|
ACE, Ltd. |
| 15,200 |
| 904 |
|
Chaoda Modern Agriculture |
| 633,900 |
| 527 |
|
GlobalSantaFe Corp. |
| 10,350 |
| 662 |
|
Noble Corp. |
| 2,300 |
| 194 |
|
Transocean, Inc.(‡) |
| 2,900 |
| 250 |
|
Vietnam Enterprise Investments, Ltd.(‡) |
| 429,000 |
| 622 |
|
XL Capital, Ltd.-Class A |
| 20,000 |
| 1,560 |
|
Chile (0.1%) |
|
|
|
|
|
Banco Santander Chile SA, ADR |
| 10,300 |
| 509 |
|
Enersis SA, Chile, Sponsored ADR |
| 8,100 |
| 153 |
|
China (0.7%) |
|
|
|
|
|
China Communications Services Corp., Ltd.(‡) |
| 9,300 |
| 6 |
|
China Life Insurance Co., Ltd., ADR |
| 5,733 |
| 266 |
|
China Shenhua Energy Co., Ltd.-Class H |
| 443,300 |
| 1,107 |
|
Hainan Meilan International Airport Co., Ltd.(‡) |
| 93,400 |
| 51 |
|
Jiangsu Express |
| 123,400 |
| 106 |
|
Ping An Insurance Group Co. of China, Ltd. |
| 29,200 |
| 156 |
|
Shanghai Electric Group Corp.-Class H |
| 423,600 |
| 184 |
|
Xiamen International Port Co., Ltd.-Class H(‡) |
| 482,800 |
| 149 |
|
Yanzhou Coal Mining Co., Ltd. |
| 912,500 |
| 932 |
|
Denmark (0.2%) |
|
|
|
|
|
Danske Bank A/S |
| 15,131 |
| 712 |
|
Finland (0.2%) |
|
|
|
|
|
Fortum Oyj |
| 24,165 |
| 754 |
|
France (1.7%) |
|
|
|
|
|
Alcatel-Lucent Sponsored ADR |
| 6,000 |
| 79 |
|
AXA |
| 17,356 |
| 804 |
|
BNP Paribas |
| 7,984 |
| 933 |
|
Electricite de France |
| 8,749 |
| 765 |
|
France Telecom SA |
| 31,000 |
| 913 |
|
Renault SA |
| 6,862 |
| 896 |
|
Sanofi-Aventis |
| 4,317 |
| 398 |
|
Societe Generale-Class A |
| 4,345 |
| 928 |
|
Total SA |
| 16,570 |
| 1,232 |
|
Vallourec |
| 2,325 |
| 641 |
|
Germany (1.8%) |
|
|
|
|
|
Allianz AG |
| 4,573 |
| 1,040 |
|
BASF AG |
| 4,984 |
| 595 |
|
Bayer AG |
| 14,818 |
| 1,019 |
|
Bayerische Motoren Werke AG |
| 10,781 |
| 667 |
|
Deutsche Post AG |
| 20,288 |
| 702 |
|
E.ON AG |
| 5,195 |
| 782 |
|
Hochtief AG |
| 5,455 |
| 577 |
|
Muenchener Rueckversicherungs AG |
| 2,927 |
| 524 |
|
RWE AG |
| 8,523 |
| 903 |
|
Siemens AG |
| 9,328 |
| 1,136 |
|
Hong Kong (1.0%) |
|
|
|
|
|
Beijing Enterprises Holdings, Ltd. |
| 479,600 |
| 1,251 |
|
Cheung Kong Holdings, Ltd.(i) |
| 38,500 |
| 502 |
|
Denway Motors, Ltd. |
| 172,000 |
| 69 |
|
Hutchison Whampoa, Ltd. |
| 81,000 |
| 784 |
|
Lenovo Group, Ltd. |
| 557,000 |
| 224 |
|
20
Shanghai Industrial Holdings, Ltd. |
| 50,100 |
| 132 |
|
Sun Hung Kai Properties, Ltd. |
| 46,300 |
| 544 |
|
Tianjin Development Holdings |
| 368,500 |
| 308 |
|
Wharf Holdings, Ltd. |
| 125,000 |
| 463 |
|
Hungary (0.1%) |
|
|
|
|
|
Mol Magyar Olaj- es Gazipari Rt. |
| 3,997 |
| 487 |
|
India (2.0%) |
|
|
|
|
|
Ambuja Cements, Ltd. |
| 107,200 |
| 307 |
|
Bajaj Auto, Ltd. |
| 3,900 |
| 231 |
|
Container Corp. of India |
| 10,600 |
| 533 |
|
Dish TV India, Ltd.(‡) |
| 75,474 |
| 196 |
|
Hindustan Lever, Ltd. |
| 5,500 |
| 27 |
|
Hindustan Petroleum Corp. |
| 6,450 |
| 42 |
|
Housing Development Finance Corp. |
| 13,000 |
| 524 |
|
Infosys Technologies, Ltd. |
| 16,500 |
| 821 |
|
Karnataka Bank, Ltd. |
| 23,000 |
| 94 |
|
Reliance Capital, Ltd. |
| 4,950 |
| 86 |
|
Reliance Communication, Ltd.(‡) |
| 53,400 |
| 619 |
|
Reliance Energy, Ltd. |
| 6,525 |
| 81 |
|
Reliance Industries, Ltd. |
| 107,000 |
| 4,053 |
|
Reliance Natural Resources, Ltd.(‡) |
| 120,400 |
| 75 |
|
State Bank of India, Ltd. |
| 12,400 |
| 333 |
|
Wockhardt, Ltd. |
| 4,800 |
| 50 |
|
ZEE Entertainment Enterprises, Ltd. |
| 131,260 |
| 937 |
|
Ireland (0.3%) |
|
|
|
|
|
Allied Irish Banks PLC |
| 21,460 |
| 653 |
|
CRH PLC |
| 20,400 |
| 898 |
|
Israel (0.2%) |
|
|
|
|
|
ECI Telecom, Ltd.(‡) |
| 65,600 |
| 548 |
|
Ectel, Ltd.(‡) |
| 4,795 |
| 17 |
|
Teva Pharmaceutical Industries, Ltd., ADR |
| 7,023 |
| 269 |
|
Italy (0.7%) |
|
|
|
|
|
ENI-Ente Nazionale Idrocarburi SpA |
| 30,108 |
| 1,004 |
|
Intesa Sanpaolo SpA(‡) |
| 101,575 |
| 857 |
|
Telecom Italia SpA RNC |
| 194,140 |
| 477 |
|
UniCredito Italiano SpA(i) |
| 92,435 |
| 956 |
|
Japan (5.9%) |
|
|
|
|
|
Aioi Insurance Co., Ltd. |
| 171,100 |
| 1,159 |
|
Ajinomoto Co., Inc. |
| 24,600 |
| 303 |
|
Asahi Glass Co., Ltd. |
| 23,600 |
| 317 |
|
Bank of Yokohama, Ltd. (The) |
| 42,000 |
| 307 |
|
Canon, Inc. |
| 17,100 |
| 959 |
|
Coca-Cola Central Japan Co., Ltd. |
| 23 |
| 179 |
|
Coca-Cola West Japan Co., Ltd. |
| 37,071 |
| 808 |
|
Credit Saison Co., Ltd. |
| 10,500 |
| 298 |
|
Daikin Industries, Ltd. |
| 2,900 |
| 98 |
|
East Japan Railway Co. |
| 70 |
| 568 |
|
Fukuoka Financial Group, Inc.(‡) |
| 53,700 |
| 409 |
|
Hokkaido Coca-Cola Bottling Co., Ltd. |
| 12,000 |
| 73 |
|
Honda Motor Co., Ltd. |
| 6,600 |
| 227 |
|
House Foods Corp. |
| 4,000 |
| 68 |
|
Japan Tobacco, Inc. |
| 125 |
| 610 |
|
JGC Corp. |
| 29,500 |
| 453 |
|
Kinden Corp. |
| 35,000 |
| 331 |
|
Kirin Brewery Co., Ltd. |
| 23,000 |
| 348 |
|
Kubota Corp. |
| 49,600 |
| 469 |
|
Mikuni Coca-Cola Bottling Co., Ltd. |
| 21,800 |
| 230 |
|
Millea Holdings, Inc. |
| 59,100 |
| 2,190 |
|
Ministop Co., Ltd. |
| 3,200 |
| 57 |
|
Mitsubishi Corp. |
| 40,800 |
| 870 |
|
Mitsubishi Rayon Co., Ltd. |
| 34,000 |
| 236 |
|
Mitsubishi Tokyo Financial Group, Inc. |
| 30 |
| 312 |
|
Mitsui Sumitomo Insurance Co., Ltd. |
| 159,000 |
| 1,973 |
|
Murata Manufacturing Co., Ltd. |
| 9,500 |
| 700 |
|
Nipponkoa Insurance Co., Ltd. |
| 143,900 |
| 1,197 |
|
21
Nomura Holdings, Inc. |
| 11,700 |
| 224 |
|
NTT DoCoMo, Inc. |
| 735 |
| 1,251 |
|
NTT Urban Development Corp. |
| 155 |
| 368 |
|
Okinawa Cellular Telephone Co. |
| 14 |
| 41 |
|
Okumura Corp. |
| 97,400 |
| 543 |
|
Rinnai Corp. |
| 5,200 |
| 143 |
|
Sekisui House, Ltd. |
| 22,500 |
| 332 |
|
Seven & I Holdings Co., Ltd. |
| 26,100 |
| 752 |
|
Shin-Etsu Chemical Co., Ltd. |
| 12,400 |
| 800 |
|
Shinsei Bank, Ltd. |
| 44,000 |
| 190 |
|
Sumitomo Chemical Co., Ltd. |
| 91,800 |
| 606 |
|
Sumitomo Mitsui Financial Group, Inc. |
| 65 |
| 568 |
|
Suzuki Motor Corp. |
| 45,100 |
| 1,282 |
|
Tadano, Ltd. |
| 1,200 |
| 16 |
|
Takeda Pharmaceutical Co., Ltd. |
| 22,500 |
| 1,458 |
|
Tanabe Seiyaku Co., Ltd. |
| 16,000 |
| 207 |
|
Toho Co., Ltd. |
| 21,600 |
| 424 |
|
Tokyo Gas Co., Ltd. |
| 154,100 |
| 774 |
|
Toyota Industries Corp. |
| 12,500 |
| 589 |
|
Malaysia (0.7%) |
|
|
|
|
|
British American Tobacco Malaysia Berhad |
| 34,000 |
| 457 |
|
IOI Corp. Berhad |
| 127,000 |
| 937 |
|
Malakoff Berhad |
| 20,500 |
| 62 |
|
Maxis Communications Berhad |
| 92,400 |
| 351 |
|
PLUS Expressways Berhad |
| 78,300 |
| 70 |
|
Telekom Malaysia Berhad |
| 76,000 |
| 240 |
|
Tenaga Nasional Berhad |
| 243,657 |
| 812 |
|
Mexico (0.3%) |
|
|
|
|
|
Fomento Economico Mexicano SAB, Sponsored ADR |
| 4,900 |
| 528 |
|
Grupo Televisa SA, Sponsored ADR |
| 32,800 |
| 920 |
|
Netherland Antilles (0.2%) |
|
|
|
|
|
Schlumberger, Ltd. |
| 14,200 |
| 1,048 |
|
Netherlands (0.4%) |
|
|
|
|
|
Arcelor Mittal |
| 11,947 |
| 647 |
|
European Aeronautic Defense and Space Co. |
| 21,000 |
| 680 |
|
Royal Dutch Shell PLC- Class A, ADR |
| 4,200 |
| 291 |
|
New Zealand (0.1%) |
|
|
|
|
|
Contact Energy, Ltd. |
| 23,500 |
| 159 |
|
Telecom Corp. of New Zealand, Ltd. |
| 41,100 |
| 147 |
|
Norway (0.4%) |
|
|
|
|
|
Orkla ASA |
| 48,655 |
| 784 |
|
Statoil ASA |
| 22,665 |
| 643 |
|
Telenor ASA |
| 10,000 |
| 187 |
|
Singapore (1.3%) |
|
|
|
|
|
Capitaland, Ltd. |
| 178,025 |
| 996 |
|
Fraser and Neave, Ltd. |
| 177,000 |
| 629 |
|
Keppel Corp., Ltd. |
| 86,100 |
| 1,212 |
|
Keppel Land, Ltd. |
| 78,600 |
| 458 |
|
MobileOne, Ltd. |
| 216,700 |
| 319 |
|
Oversea-Chinese Banking Corp. |
| 55,000 |
| 326 |
|
Parkway Holdings, Ltd. |
| 234,650 |
| 611 |
|
Singapore Telecommunications, Ltd. |
| 604,150 |
| 1,320 |
|
South Africa (0.1%) |
|
|
|
|
|
Gold Fields, Ltd., Sponsored ADR |
| 11,700 |
| 210 |
|
Sasol, Ltd. |
| 3,200 |
| 111 |
|
South Korea (2.2%) |
|
|
|
|
|
Cheil Industries, Inc. |
| 4,700 |
| 179 |
|
CJ Corp. |
| 4,500 |
| 505 |
|
CJ Home Shopping |
| 3,100 |
| 223 |
|
Daegu Bank |
| 13,600 |
| 226 |
|
Dongbu Insurance Co., Ltd.(‡) |
| 10,000 |
| 294 |
|
Fine DNC Co., Ltd. |
| 16,300 |
| 77 |
|
Hana Financial Group, Inc. |
| 5,300 |
| 279 |
|
Interflex Co., Ltd.(‡) |
| 16,100 |
| 97 |
|
Kookmin Bank |
| 6,600 |
| 592 |
|
22
Korea Electric Power Corp. |
| 14,400 |
| 587 |
|
Korean Reinsurance Co.(‡) |
| 29,900 |
| 384 |
|
KT Corp., ADR |
| 46,800 |
| 1,060 |
|
KT&G Corp. |
| 17,100 |
| 1,233 |
|
Lotte Shopping Co., GDR-144A |
| 3,600 |
| 68 |
|
LS Cable, Ltd. |
| 7,500 |
| 413 |
|
Meritz Fire & Marine Insurance Co., Ltd. |
| 30,600 |
| 261 |
|
Nong Shim Co., Ltd. |
| 500 |
| 134 |
|
Paradise Co., Ltd. |
| 46,831 |
| 179 |
|
POSCO |
| 3,000 |
| 1,269 |
|
POSCO, ADR |
| 6,200 |
| 649 |
|
Pusan Bank |
| 16,400 |
| 242 |
|
Samsung Fine Chemicals Co., Ltd. |
| 12,600 |
| 391 |
|
SK Telecom Co., Ltd. |
| 2,200 |
| 465 |
|
Spain (0.5%) |
|
|
|
|
|
Banco Bilbao Vizcaya Argentaria SA |
| 36,020 |
| 872 |
|
Banco Santander Central Hispano SA |
| 55,319 |
| 996 |
|
Cintra Concesiones de Infraestructuras de Transporte SA |
| 12,050 |
| 217 |
|
Telefonica SA, Sponsored ADR |
| 4,000 |
| 271 |
|
Sweden (0.2%) |
|
|
|
|
|
Investor AB-Class B |
| 26,654 |
| 721 |
|
Switzerland (1.1%) |
|
|
|
|
|
Credit Suisse Group |
| 12,668 |
| 1,002 |
|
Nestle SA |
| 1,800 |
| 716 |
|
Novartis AG |
| 22,910 |
| 1,338 |
|
Novartis AG, ADR |
| 3,500 |
| 203 |
|
Swiss Reinsurance(i) |
| 7,675 |
| 726 |
|
UBS AG-Registered |
| 14,917 |
| 978 |
|
Taiwan (0.8%) |
|
|
|
|
|
Cathay Financial Holding Co., Ltd. |
| 204,209 |
| 416 |
|
Chinatrust Financial Holding |
| 343,320 |
| 271 |
|
Chunghwa Telecom Co., Ltd. |
| 76,500 |
| 145 |
|
Chunghwa Telecom Co., Ltd., ADR |
| 64,330 |
| 1,280 |
|
Delta Electronics, Inc. |
| 197,400 |
| 619 |
|
Fubon Financial Holding Co., Ltd. |
| 224,000 |
| 195 |
|
SinoPac Financial Holdings Co., Ltd. |
| 236,000 |
| 102 |
|
Taishin Financial Holdings Co., Ltd.(‡) |
| 192,000 |
| 94 |
|
Taiwan Cement Corp. |
| 597,286 |
| 533 |
|
Thailand (0.5%) |
|
|
|
|
|
Airports of Thailand PCL |
| 49,000 |
| 84 |
|
Bangkok Expressway PCL |
| 101,600 |
| 68 |
|
Hana Microelectronics PCL |
| 215,500 |
| 160 |
|
PTT Exploration & Production PCL |
| 128,500 |
| 347 |
|
PTT PCL |
| 92,400 |
| 585 |
|
Siam Cement PCL |
| 61,600 |
| 422 |
|
Siam Commercial Bank PCL |
| 319,000 |
| 610 |
|
Thai Union Frozen Products PCL |
| 67,700 |
| 43 |
|
United Kingdom (3.2%) |
|
|
|
|
|
Aviva PLC |
| 37,374 |
| 591 |
|
BAE Systems PLC |
| 87,843 |
| 803 |
|
Barclays PLC |
| 42,329 |
| 616 |
|
British American Tobacco PLC |
| 24,677 |
| 765 |
|
Cadbury Schweppes PLC, ADR |
| 24,100 |
| 1,278 |
|
Diageo PLC, Sponsored ADR |
| 10,100 |
| 852 |
|
GlaxoSmithKline PLC |
| 47,507 |
| 1,377 |
|
Guinness Peat Group PLC |
| 109,170 |
| 191 |
|
HBOS PLC |
| 41,393 |
| 896 |
|
HSBC Holdings PLC |
| 23,400 |
| 432 |
|
Kesa Electricals PLC |
| 64,422 |
| 437 |
|
Premier Foods PLC |
| 29,000 |
| 178 |
|
Prudential PLC |
| 49,111 |
| 736 |
|
Royal Dutch Shell PLC-Class B |
| 40,674 |
| 1,444 |
|
Unilever PLC |
| 34,721 |
| 1,094 |
|
Vodafone Group PLC |
| 705,955 |
| 2,026 |
|
Vodafone Group PLC, ADR |
| 18,061 |
| 519 |
|
23
United States (21.7%) |
|
|
|
|
|
3Com Corp.(‡) |
| 165,500 |
| 667 |
|
Abbott Laboratories |
| 6,500 |
| 368 |
|
AES Corp. (The)(‡) |
| 9,400 |
| 207 |
|
Aetna, Inc. |
| 7,150 |
| 335 |
|
Albemarle Corp. |
| 400 |
| 17 |
|
Alcoa, Inc. |
| 15,100 |
| 536 |
|
Alliance One International, Inc.(‡) |
| 5,900 |
| 58 |
|
Allstate Corp. (The) |
| 6,000 |
| 374 |
|
ALLTEL Corp. |
| 7,500 |
| 470 |
|
Altria Group, Inc. |
| 6,700 |
| 462 |
|
American Capital Strategies, Ltd. |
| 300 |
| 15 |
|
American Eagle Outfitters |
| 450 |
| 13 |
|
American International Group, Inc. |
| 44,700 |
| 3,125 |
|
Ameriprise Financial, Inc. |
| 200 |
| 12 |
|
AmerisourceBergen Corp. |
| 2,300 |
| 115 |
|
AMR Corp.(‡) |
| 400 |
| 10 |
|
Apple, Inc.(‡) |
| 15,600 |
| 1,557 |
|
Applied Materials, Inc. |
| 900 |
| 17 |
|
Assurant, Inc. |
| 5,000 |
| 288 |
|
AT&T, Inc. |
| 29,860 |
| 1,156 |
|
Avaya, Inc.(‡) |
| 900 |
| 12 |
|
Avery Dennison Corp. |
| 200 |
| 12 |
|
Avnet, Inc.(‡) |
| 500 |
| 20 |
|
Avon Products, Inc. |
| 5,500 |
| 219 |
|
Baker Hughes, Inc. |
| 2,300 |
| 185 |
|
Bank of America Corp. |
| 13,100 |
| 667 |
|
Bank of New York Co., Inc. (The) |
| 18,000 |
| 729 |
|
Bausch & Lomb, Inc. |
| 2,000 |
| 118 |
|
Baxter International, Inc. |
| 3,900 |
| 221 |
|
Bear Stearns Cos. Inc. (The) |
| 100 |
| 16 |
|
Big Lots, Inc.(‡) |
| 800 |
| 26 |
|
BMC Software, Inc.(‡) |
| 500 |
| 16 |
|
Boeing Co. (The) |
| 100 |
| 9 |
|
Borland Software Corp.(‡) |
| 6,300 |
| 35 |
|
Boston Scientific Corp.(‡) |
| 9,500 |
| 147 |
|
Bristol West Holdings, Inc. |
| 2,600 |
| 58 |
|
Bristol-Myers Squibb Co. |
| 23,600 |
| 681 |
|
Burlington Northern Santa Fe Corp. |
| 16,100 |
| 1,409 |
|
CA, Inc. |
| 43,500 |
| 1,186 |
|
Cadence Design Systems, Inc.(‡) |
| 700 |
| 16 |
|
Celanese Corp.-Class A |
| 500 |
| 17 |
|
CenterPoint Energy, Inc. |
| 1,000 |
| 19 |
|
Chevron Corp. |
| 14,600 |
| 1,136 |
|
Chubb Corp. |
| 200 |
| 11 |
|
Ciena Corp.(‡) |
| 14,800 |
| 432 |
|
Cigna Corp. |
| 1,500 |
| 233 |
|
Cincinnati Bell, Inc.(‡) |
| 6,300 |
| 32 |
|
Cisco Systems, Inc.(‡) |
| 75,700 |
| 2,024 |
|
CIT Group, Inc. |
| 200 |
| 12 |
|
Citigroup, Inc. |
| 46,800 |
| 2,509 |
|
CMS Energy Corp.(‡) |
| 11,000 |
| 204 |
|
CNA Financial Corp.(‡) |
| 400 |
| 19 |
|
Coca-Cola Co. (The) |
| 9,600 |
| 501 |
|
Comcast Corp.-Class A(‡) |
| 34,850 |
| 929 |
|
Complete Production Services, Inc.(‡) |
| 17,900 |
| 431 |
|
Comverse Technology, Inc.(‡) |
| 74,300 |
| 1,685 |
|
ConAgra Foods, Inc. |
| 9,100 |
| 224 |
|
ConocoPhillips |
| 12,200 |
| 846 |
|
Consol Energy, Inc. |
| 27,400 |
| 1,147 |
|
Constellation Brands, Inc.-Class A(‡) |
| 6,600 |
| 148 |
|
Constellation Energy Group, Inc. |
| 200 |
| 18 |
|
Consumer Staples Select Sector SPDR Fund |
| 25,400 |
| 698 |
|
Continental Airlines, Inc.-Class B(‡) |
| 400 |
| 15 |
|
Countrywide Financial Corp. |
| 400 |
| 15 |
|
24
Coventry Health Care, Inc.(‡) |
| 300 |
| 17 |
|
Crown Holdings, Inc.(‡) |
| 9,400 |
| 227 |
|
Cummins, Inc. |
| 200 |
| 18 |
|
CVS/Caremark Corp. |
| 6,801 |
| 246 |
|
Darwin Professional Underwriters, Inc.(‡) |
| 2,800 |
| 73 |
|
Dean Foods Co. |
| 300 |
| 11 |
|
Deere & Co. |
| 200 |
| 22 |
|
Devon Energy Corp. |
| 7,100 |
| 517 |
|
Discovery Holding Co.-Class A(‡) |
| 1,000 |
| 22 |
|
du Pont (E.I.) de Nemours & Co. |
| 4,400 |
| 216 |
|
Dynegy, Inc.-Class A(‡) |
| 15,700 |
| 148 |
|
Eaton Corp. |
| 200 |
| 18 |
|
eBay, Inc.(‡) |
| 19,500 |
| 662 |
|
Edison International |
| 400 |
| 21 |
|
El Paso Corp. |
| 153,100 |
| 2,296 |
|
Electronic Data Systems Corp. |
| 600 |
| 18 |
|
Embarq Corp. |
| 1,565 |
| 94 |
|
ENSCO International, Inc. |
| 6,000 |
| 338 |
|
Expedia, Inc.(‡) |
| 700 |
| 17 |
|
Extreme Networks(‡) |
| 11,700 |
| 48 |
|
Exxon Mobil Corp. |
| 35,500 |
| 2,818 |
|
Family Dollar Stores, Inc. |
| 600 |
| 19 |
|
Fannie Mae |
| 11,500 |
| 678 |
|
Federated Department Stores, Inc. |
| 400 |
| 18 |
|
FedEx Corp. |
| 900 |
| 95 |
|
Foundation Coal Holdings, Inc. |
| 20,100 |
| 792 |
|
Freeport-McMoRan Copper & Gold, Inc. |
| 5,000 |
| 336 |
|
Gap (The), Inc. |
| 800 |
| 14 |
|
General Communication-Class A(‡) |
| 11,300 |
| 161 |
|
General Dynamics Corp. |
| 1,600 |
| 126 |
|
General Electric Co. |
| 144,600 |
| 5,330 |
|
General Mills, Inc. |
| 300 |
| 18 |
|
General Motors Corp. |
| 5,900 |
| 184 |
|
Genesis Microchip, Inc.(‡) |
| 20,400 |
| 175 |
|
Genworth Financial, Inc.-Class A |
| 500 |
| 18 |
|
Goldman Sachs Group, Inc. (The) |
| 100 |
| 22 |
|
Grant Prideco, Inc.(‡) |
| 17,800 |
| 917 |
|
Halliburton Co. |
| 10,480 |
| 333 |
|
Hanesbrands, Inc.(‡) |
| 862 |
| 23 |
|
Hartford Financial Services Group, Inc. (The) |
| 4,300 |
| 435 |
|
Health Care Select Sector SPDR Fund |
| 25,500 |
| 921 |
|
Healthsouth Corp.(‡) |
| 7,020 |
| 147 |
|
Hess Corp. |
| 5,400 |
| 306 |
|
Hewlett-Packard Co. |
| 9,400 |
| 396 |
|
Humana, Inc.(‡) |
| 300 |
| 19 |
|
IAC/InterActiveCorp.(‡) |
| 500 |
| 19 |
|
Idearc, Inc. |
| 1,532 |
| 53 |
|
Intel Corp. |
| 15,200 |
| 327 |
|
International Business Machines Corp. |
| 16,300 |
| 1,666 |
|
International Paper Co. |
| 8,700 |
| 328 |
|
iShares Dow Jones US Telecommunications Sector Index Fund |
| 17,900 |
| 569 |
|
iShares Dow Jones US Utilities Sector Index Fund |
| 1,300 |
| 131 |
|
iShares MSCI Brazil Index Fund |
| 5,600 |
| 293 |
|
iShares Silver Trust(‡) |
| 4,900 |
| 651 |
|
JC Penney Co., Inc. |
| 200 |
| 16 |
|
JDS Uniphase Corp.(‡) |
| 4,925 |
| 81 |
|
Johnson & Johnson |
| 25,200 |
| 1,618 |
|
JP Morgan Chase & Co. |
| 4,700 |
| 245 |
|
KBR, Inc.(‡) |
| 6,077 |
| 126 |
|
Key Energy Services, Inc.(‡) |
| 18,800 |
| 351 |
|
King Pharmaceuticals, Inc.(‡) |
| 800 |
| 16 |
|
Kohl’s Corp.(‡) |
| 200 |
| 15 |
|
Kraft Foods, Inc.-Class A |
| 14,736 |
| 493 |
|
Kroger Co. |
| 700 |
| 21 |
|
25
Lexmark International, Inc.(‡) |
| 300 |
| 16 |
|
Liberty Media Holding Corp.-Capital-Class A(‡) |
| 4 |
| — | (o) |
Liberty Media Holding Corp.-Interactive-Class A(‡) |
| 2,575 |
| 64 |
|
Lilly (Eli) & Co. |
| 10,300 |
| 609 |
|
Lincoln National Corp. |
| 200 |
| 14 |
|
Lockheed Martin Corp. |
| 200 |
| 19 |
|
Loews Corp. |
| 400 |
| 19 |
|
Loews Corp.- Carolina Group |
| 200 |
| 15 |
|
LSI Corp.(‡) |
| 4,968 |
| 42 |
|
Lubrizol Corp. |
| 300 |
| 18 |
|
Macquarie Infrastructure Co. Trust |
| 35,000 |
| 1,490 |
|
Manor Care, Inc. |
| 5,900 |
| 383 |
|
Marathon Oil Corp. |
| 4,100 |
| 416 |
|
Marsh & McLennan Cos., Inc. |
| 5,400 |
| 171 |
|
Mattel, Inc. |
| 600 |
| 17 |
|
MBIA, Inc. |
| 200 |
| 14 |
|
McAfee, Inc.(‡) |
| 600 |
| 19 |
|
McDonald’s Corp. |
| 14,000 |
| 676 |
|
McGraw-Hill Cos., Inc. (The) |
| 200 |
| 13 |
|
McKesson Corp. |
| 3,800 |
| 224 |
|
Medco Health Solutions, Inc.(‡) |
| 5,900 |
| 460 |
|
Mellon Financial Corp. |
| 900 |
| 39 |
|
Merck & Co., Inc. |
| 16,600 |
| 854 |
|
Microsoft Corp. |
| 142,400 |
| 4,263 |
|
Mirant Corp.(‡) |
| 12,500 |
| 561 |
|
Mohawk Industries, Inc.(‡) |
| 200 |
| 18 |
|
Morgan Stanley |
| 200 |
| 17 |
|
Motorola, Inc. |
| 20,000 |
| 347 |
|
Murphy Oil Corp. |
| 6,000 |
| 333 |
|
National Oilwell Varco, Inc.(‡) |
| 4,700 |
| 399 |
|
Newmont Mining Corp. |
| 44,500 |
| 1,856 |
|
Nordstrom, Inc. |
| 300 |
| 16 |
|
Norfolk Southern Corp. |
| 8,700 |
| 463 |
|
Northern Trust Corp. |
| 11,900 |
| 749 |
|
Northrop Grumman Corp. |
| 200 |
| 15 |
|
Novell, Inc.(‡) |
| 12,000 |
| 88 |
|
Novellus Systems, Inc.(‡) |
| 600 |
| 19 |
|
Nucor Corp. |
| 200 |
| 13 |
|
Occidental Petroleum Corp. |
| 9,400 |
| 477 |
|
Omnicom Group, Inc. |
| 200 |
| 21 |
|
Panera Bread Co.-Class A(‡) |
| 34,500 |
| 1,921 |
|
Peabody Energy Corp. |
| 15,600 |
| 748 |
|
Pepsi Bottling Group, Inc. |
| 500 |
| 16 |
|
PepsiAmericas, Inc. |
| 3,700 |
| 89 |
|
Pfizer, Inc. |
| 86,200 |
| 2,281 |
|
PG&E Corp. |
| 200 |
| 10 |
|
PPL Corp. |
| 13,800 |
| 602 |
|
Procter & Gamble Co. |
| 3,500 |
| 225 |
|
Prudential Financial, Inc. |
| 2,600 |
| 247 |
|
QUALCOMM, Inc. |
| 27,500 |
| 1,204 |
|
Qwest Communications International(‡) |
| 1,100 |
| 10 |
|
Raytheon Co. |
| 300 |
| 16 |
|
Ross Stores, Inc. |
| 500 |
| 17 |
|
Safeway, Inc. |
| 600 |
| 22 |
|
Sara Lee Corp. |
| 6,600 |
| 108 |
|
Schering-Plough Corp. |
| 17,800 |
| 565 |
|
Sears Holdings Corp.(‡) |
| 100 |
| 19 |
|
Sempra Energy |
| 300 |
| 19 |
|
Senomyx, Inc.(‡) |
| 7,600 |
| 102 |
|
Sherwin-Williams Co. (The) |
| 300 |
| 19 |
|
SLM Corp. |
| 3,500 |
| 188 |
|
Smith International, Inc. |
| 10,400 |
| 545 |
|
Smurfit-Stone Container Corp.(‡) |
| 10,400 |
| 125 |
|
Southern Copper Corp. |
| 2,200 |
| 177 |
|
Spirit Aerosystems Holdings, Inc.-Class A(‡) |
| 7,100 |
| 225 |
|
26
Sprint Nextel Corp. |
| 72,100 |
| 1,444 |
|
SPX Corp. |
| 300 |
| 21 |
|
Staples, Inc. |
| 400 |
| 10 |
|
State Street Corp. |
| 1,900 |
| 131 |
|
Stone Energy Corp.(‡) |
| 3,700 |
| 110 |
|
Sun Microsystems, Inc.(‡) |
| 93,800 |
| 490 |
|
SUPERVALU, Inc. |
| 3,272 |
| 150 |
|
Synopsys, Inc.(‡) |
| 600 |
| 17 |
|
Telecom HOLDRs Trust |
| 4,600 |
| 174 |
|
Telephone & Data Systems, Inc. |
| 300 |
| 17 |
|
Tellabs, Inc.(‡) |
| 4,100 |
| 44 |
|
Tenet Healthcare Corp.(‡) |
| 17,300 |
| 128 |
|
Terex Corp.(‡) |
| 300 |
| 23 |
|
Thermo Electron Corp.(‡) |
| 2,400 |
| 125 |
|
TIBCO Software, Inc.(‡) |
| 49,400 |
| 451 |
|
Time Warner, Inc. |
| 8,600 |
| 177 |
|
TJX Cos., Inc. |
| 500 |
| 14 |
|
Total System Services, Inc. |
| 600 |
| 19 |
|
Travelers Cos., Inc. (The) |
| 17,600 |
| 952 |
|
Triad Hospitals, Inc.(‡) |
| 2,700 |
| 143 |
|
TXU Corp. |
| 8,000 |
| 525 |
|
Unifi, Inc.(‡) |
| 27,000 |
| 75 |
|
Union Pacific Corp. |
| 29,700 |
| 3,393 |
|
United States Steel Corp. |
| 200 |
| 20 |
|
UnitedHealth Group, Inc. |
| 14,025 |
| 744 |
|
US Airways Group, Inc.(‡) |
| 200 |
| 7 |
|
Utilities Select Sector SPDR Fund |
| 76,200 |
| 3,166 |
|
Vanguard Telecommunication Services ETF |
| 500 |
| 39 |
|
Ventas, Inc. REIT |
| 2,300 |
| 97 |
|
Verizon Communications, Inc. |
| 29,400 |
| 1,122 |
|
Viacom, Inc.-Class B(‡) |
| 4,000 |
| 165 |
|
Virgin Media, Inc. |
| 7,800 |
| 197 |
|
Wachovia Corp. |
| 1,500 |
| 83 |
|
Walgreen Co. |
| 3,100 |
| 136 |
|
Wal-Mart Stores, Inc. |
| 3,100 |
| 149 |
|
Waters Corp.(‡) |
| 5,900 |
| 351 |
|
Watson Pharmaceuticals, Inc.(‡) |
| 2,100 |
| 57 |
|
WellPoint, Inc.(‡) |
| 7,550 |
| 596 |
|
Wells Fargo & Co. |
| 6,100 |
| 219 |
|
Windstream Corp. |
| 6,322 |
| 92 |
|
Wyeth |
| 10,700 |
| 594 |
|
Xerox Corp.(‡) |
| 800 |
| 15 |
|
Vietnam (0.3%) |
|
|
|
|
|
Vietnam Opportunity Fund, Ltd.(‡) |
| 330,000 |
| 1,167 |
|
Total Common Stocks (cost: $204,875) |
|
|
| 245,846 |
|
|
|
|
| Principal |
| Value |
|
SHORT-TERM OBLIGATIONS (8.4%) |
|
|
|
|
|
|
|
Singapore (0.3%) |
|
|
|
|
|
|
|
Singapore Dollar Time Deposit |
|
|
|
|
|
|
|
2.32%, due 05/18/2007 |
| SGD |
| 2,107 |
| 1,386 |
|
United States (8.1%) |
|
|
|
|
|
|
|
Merrill Lynch Money Market Mutual Fund |
|
|
|
|
|
|
|
5.33%, due 06/15/2007 |
|
|
| 15,656 |
| 15,656 |
|
U.S. Treasury Bill |
|
|
|
|
|
|
|
4.97%, due 05/17/2007 |
|
|
| 5,150 |
| 5,138 |
|
4.98%, due 05/24/2007 |
|
|
| 5,150 |
| 5,134 |
|
4.95%, due 06/14/2007 |
|
|
| 5,150 |
| 5,119 |
|
4.95%, due 06/21/2007 |
|
|
| 5,150 |
| 5,114 |
|
Total Short-Term Obligations (cost: $37,554) |
|
|
|
|
| 37,547 |
|
|
| Contracts(u) |
| Value |
|
PURCHASED OPTIONS (0.2%) |
|
|
|
|
|
Covered Call Options (0.0%) |
|
|
|
|
|
Gap (The), Inc. |
| 235 |
| 8 |
|
27
Call Strike $22.50 |
|
|
|
|
| |
Expires 01/19/2008 |
|
|
|
|
| |
JPY Currency Future |
| 13,110,000 |
| 11 |
| |
Call Strike $106.90 |
|
|
|
|
| |
Expires 02/28/2008 |
|
|
|
|
| |
Newmont Mining Corp. |
| 233 |
| 2 |
| |
Call Strike $50.00 |
|
|
|
|
| |
Expires 06/16/2007 |
|
|
|
|
| |
Newmont Mining Corp. |
| 235 |
| 13 |
| |
Call Strike $55.00 |
|
|
|
|
| |
Expires 01/19/2008 |
|
|
|
|
| |
Put Options (0.2%) |
|
|
|
|
| |
Black & Decker Corp. |
| 116 |
| 8 |
| |
Put Strike $75.00 |
|
|
|
|
| |
Expires 08/18/2007 |
|
|
|
|
| |
JB Hunt Transport Services, Inc. |
| 235 |
| 14 |
| |
Put Strike $22.50 |
|
|
|
|
| |
Expires 08/18/2007 |
|
|
|
|
| |
Leggett & Platt, Inc. |
| 232 |
| 19 |
| |
Put Strike $22.50 |
|
|
|
|
| |
Expires 09/22/2007 |
|
|
|
|
| |
Masco Corp. |
| 235 |
| 26 |
| |
Put Strike $25.00 |
|
|
|
|
| |
Expires 10/20/2007 |
|
|
|
|
| |
Royal Caribbean Cruises, Ltd. |
| 234 |
| 19 |
| |
Put Strike $35.00 |
|
|
|
|
| |
Expires 09/22/2007 |
|
|
|
|
| |
Russell 2000 Index |
| 939 |
| 184 |
| |
Put Strike $75.00 |
|
|
|
|
| |
Expires 09/29/2007 |
|
|
|
|
| |
Russell 2000 Index |
| 1,409 |
| 383 |
| |
Put Strike $78.00 |
|
|
|
|
| |
Expires 09/29/2007 |
|
|
|
|
| |
Sherwin-Williams Co. (The) |
| 116 |
| 26 |
| |
Put Strike $60.00 |
|
|
|
|
| |
Expires 09/22/2007 |
|
|
|
|
| |
Whirlpool Corp. |
| 118 |
| 7 |
| |
Put Strike $75.00 |
|
|
|
|
| |
Expires 09/22/2007 |
|
|
|
|
| |
Williams-Sonoma, Inc. |
| 234 |
| 25 |
| |
Put Strike $32.50 |
|
|
|
|
| |
Expires 08/18/2007 |
|
|
|
|
| |
Total Purchased Options (cost: $1,081) |
|
|
| 745 |
| |
Total Investment Securities (cost: $400,221)(#) |
|
|
| $ | 445,449 |
|
|
| Contracts(u) |
| Value |
|
WRITTEN OPTIONS (-0.5%) |
|
|
|
|
|
Covered Call Options (-0.5%) |
|
|
|
|
|
3Com Corp. |
| 1,153 |
| (32 | ) |
Call Strike $5.00 |
|
|
|
|
|
Expires 01/19/2008 |
|
|
|
|
|
Apple, Inc. |
| 156 |
| (338 | ) |
Call Strike $85.00 |
|
|
|
|
|
Expires 01/19/2008 |
|
|
|
|
|
Bausch & Lomb, Inc. |
| 20 |
| (32 | ) |
Call Strike $45.00 |
|
|
|
|
|
Expires 01/19/2008 |
|
|
|
|
|
Burlington Northern Santa Fe Corp. |
| 28 |
| (22 | ) |
Call Strike $90.00 |
|
|
|
|
|
Expires 01/19/2008 |
|
|
|
|
|
Burlington Northern Santa Fe Corp. |
| 71 |
| (40 | ) |
Call Strike $95.00 |
|
|
|
|
|
Expires 01/19/2008 |
|
|
|
|
|
Ciena Corp. |
| 74 |
| (29 | ) |
Call Strike $30.00 |
|
|
|
|
|
Expires 01/19/2008 |
|
|
|
|
|
28
Comverse Technology, Inc. |
| 10 |
| (4 | ) | |||||
Call Strike $20.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Comverse Technology, Inc. |
| 708 |
| (428 | ) | |||||
Call Strike $17.50 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
eBay, Inc. |
| 61 |
| (91 | ) | |||||
Call Strike $20.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
eBay, Inc. |
| 54 |
| (56 | ) | |||||
Call Strike $25.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
El Paso Corp. |
| 160 |
| (23 | ) | |||||
Call Strike $15.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Foundation Coal Holdings, Inc. |
| 61 |
| (63 | ) | |||||
Call Strike $30.00 |
|
|
|
|
| |||||
Expires 09/22/2007 |
|
|
|
|
| |||||
Genesis Microchip, Inc. |
| 192 |
| (3 | ) | |||||
Call Strike $10.00 |
|
|
|
|
| |||||
Expires 06/16/2007 |
|
|
|
|
| |||||
Motorola, Inc. |
| 158 |
| (14 | ) | |||||
Call Strike $20.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Norfolk Southern Corp. |
| 87 |
| (68 | ) | |||||
Call Strike $50.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Nortel Networks Corp. |
| 223 |
| (74 | ) | |||||
Call Strike $22.50 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Novell, Inc. |
| 88 |
| (7 | ) | |||||
Call Strike $7.50 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Panera Bread Co.-Class A |
| 97 |
| (94 | ) | |||||
Call Strike $50.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Panera Bread Co.-Class A |
| 137 |
| (90 | ) | |||||
Call Strike $55.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Panera Bread Co.-Class A |
| 111 |
| (47 | ) | |||||
Call Strike $60.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Peabody Energy Corp. |
| 102 |
| (114 | ) | |||||
Call Strike $40.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Petroleo Brasileiro SA, ADR |
| 47 |
| (41 | ) | |||||
Call Strike $105.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Petroleo Brasileiro SA, ADR |
| 35 |
| (23 | ) | |||||
Call Strike $110.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Qualcomm, Inc. |
| 275 |
| (198 | ) | |||||
Call Strike $40.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Smith International, Inc. |
| 53 |
| (77 | ) | |||||
Call Strike $40.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Sprint Nextel Corp. |
| 115 |
| (25 | ) | |||||
Call Strike $20.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Sprint Nextel Corp. |
| 177 |
| (19 | ) | |||||
Call Strike $22.50 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Suncor Energy, Inc. |
| 58 |
| (68 | ) | |||||
Call Strike $75.00 |
|
|
|
|
| |||||
Expires 01/19/2008 |
|
|
|
|
| |||||
Total Written Options (premiums: $1,882) |
|
|
| (2,120 | ) | |||||
29
NOTES TO SCHEDULE OF INVESTMENTS:
(v) | Substantially all of the Fund’s securities are pledged as collateral by the custodian for the listed open option contracts written by the Fund. |
(d) | At April 30, 2007, all or a portion of this security is segregated with the custodian to cover margin requirements for open futures contracts. The value of all securities segregated at April 30, 2007 is $4,439. |
(a) | Redemption linked to Federative Republic of Brazil NTN-B Bonds due 5/15/2009. |
(b) | Redemption linked to Federative Republic of Brazil NTN-B Bonds due 08/15/2010. |
(a) | Security is deemed to be illiquid. |
(*) | Floating or variable rate note. Rate is listed as of April 30, 2007. |
(c) | Enhanced Participation Notes. Redemption linked to DAX Index. |
(d) | Enhanced Participation Notes. Redemption linked to Dow Jones EURO STOXX 50 Index. |
(e) | Redemption linked to the price of Gold. |
(f) | Enhanced Participation Notes. Redemption linked to TOPIX Index. |
(g) | Redemption linked to securites within the Preferred Term Securities XXIV portfolio. |
(h) | Enhanced Participation Notes. Redemption linked to S&P 500 Index. |
(‡) | Non-income producing. |
(i) | Passive Foreign Investment Company. |
(u) | Contract amounts are not in thousands. |
(o) | Value is less than $1. |
(e) | Security is currently in default on interest payments. |
(¡) | Securities valued as determined in good faith in accordance with procedures established by the Fund’s Board of Trustees. |
(#) | Aggregate cost for federal income tax purposes is $400,936. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $48,146 and $3,633, respectively. Net unrealized appreciation for tax purposes is $44,513. |
|
|
DEFINITIONS: | |
| |
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 April 30, 2007, these securities aggregated $4,047 or 0.9% of the net assets of the Fund. |
ADR | American Depositary Receipt |
BRL | Brazilian Real |
CAD | Canadian Dollar |
EUR | Euro |
GBP | Great British Pound |
GDR | Global Depositary Receipt |
JPY | Japanese Yen |
MTN | Medium-Term Note |
MYR | Malaysian Ringgit |
NZD | New Zealand Dollar |
30
PLN | Polish Zloty |
REIT | Real Estate Investment Trust |
RNC | Risparmio Non Convertibili (Non Convertible Savings Shares) |
SEK | Swedish Krona |
SGD | Singapore Dollar |
SPDR | Standard & Poor’s Depository Receipts |
The notes to the financial statements are an integral part of this report.
31
FORWARD FOREIGN CURRENCY CONTRACTS:
|
|
|
|
|
| Amount in |
| Net Unrealized |
| ||
|
| Bought |
| Settlement |
| U.S. Dollars |
| Appreciation |
| ||
Currency |
| (Sold) |
| Date |
| Bought (Sold) |
| (Depreciation) |
| ||
Euro Dollar |
| 7,710 |
| 05/18/2007 |
| $ | 10,472 |
| $ | 56 |
|
Euro Dollar |
| 1,515 |
| 05/24/2007 |
| 2,060 |
| 9 |
| ||
Euro Dollar |
| 7,828 |
| 05/31/2007 |
| 10,668 |
| 27 |
| ||
Indian Rupee |
| 9,792 |
| 04/23/2008 |
| 225 |
| 2 |
| ||
Indonesian Rupiah |
| 4,640,000 |
| 08/06/2007 |
| 488 |
| 23 |
| ||
Indonesian Rupiah |
| (3,036,600 | ) | 08/06/2007 |
| (325 | ) | (9 | ) | ||
Japanese Yen |
| 467,240 |
| 05/18/2007 |
| 3,948 |
| (30 | ) | ||
Japanese Yen |
| 440,416 |
| 05/24/2007 |
| 3,723 |
| (27 | ) | ||
Japanese Yen |
| 238,819 |
| 05/31/2007 |
| 2,028 |
| (22 | ) | ||
Swiss Franc |
| 6,437 |
| 05/18/2007 |
| 5,340 |
| 2 |
| ||
|
|
|
|
|
| $ | 38,627 |
| $ | 31 |
|
32
FUTURES CONTRACTS:
|
|
|
|
|
|
|
| Net Unrealized |
| ||
|
|
|
| Settlement |
|
|
| Appreciation |
| ||
|
| Contracts(u) |
| Date |
| Amount |
| (Depreciation) |
| ||
10-Year Japan Government Bond |
| (4 | ) | 06/20/2007 |
| $ | (4,497 | ) | $ | — | (o) |
90-Day Euro Dollar |
| 1 |
| 09/15/2008 |
| 238 |
| — | (o) | ||
90-Day Euro Dollar |
| (1 | ) | 09/14/2009 |
| (238 | ) | — | (o) | ||
DAX Index |
| 3 |
| 06/16/2007 |
| 763 |
| 90 |
| ||
DJ Euro STOXX 50 Index |
| 25 |
| 06/30/2007 |
| 1,481 |
| 113 |
| ||
FTSE 100 Index |
| 9 |
| 06/17/2007 |
| 1,164 |
| 70 |
| ||
S&P 500 Index |
| (14 | ) | 06/17/2007 |
| (5,209 | ) | (181 | ) | ||
S&P/TSE 60 Index |
| 2 |
| 06/16/2007 |
| 278 |
| 4 |
| ||
SPI 200 Futures Index |
| 1 |
| 06/16/2007 |
| 128 |
| — | (o) | ||
TOPIX Index |
| 10 |
| 06/09/2007 |
| 1,423 |
| 15 |
| ||
|
|
|
|
|
| $ | (4,469 | ) | $ | 111 |
|
33
|
| Percentage of |
|
|
| |
|
| Net Assets |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
U.S. Government & Agency |
| 25.1 | % | $ | 111,646 |
|
Commercial Banks |
| 9.5 | % | 42,390 |
| |
Insurance |
| 4.8 | % | 21,415 |
| |
Telecommunications |
| 4.3 | % | 19,092 |
| |
Sovereign Government |
| 3.9 | % | 17,424 |
| |
Short-Term Investments |
| 3.8 | % | 17,043 |
| |
Holding & Other Investment Offices |
| 3.4 | % | 14,970 |
| |
Oil & Gas Extraction |
| 3.3 | % | 14,660 |
| |
Pharmaceuticals |
| 3.1 | % | 13,872 |
| |
Security & Commodity Brokers |
| 2.6 | % | 11,243 |
| |
Petroleum Refining |
| 1.9 | % | 8,527 |
| |
Electric Services |
| 1.9 | % | 8,474 |
| |
Chemicals & Allied Products |
| 1.9 | % | 8,297 |
| |
Railroads |
| 1.8 | % | 8,159 |
| |
Computer & Data Processing Services |
| 1.8 | % | 8,121 |
| |
Food & Kindred Products |
| 1.7 | % | 7,483 |
| |
Computer & Office Equipment |
| 1.7 | % | 7,334 |
| |
Investment Companies |
| 1.6 | % | 7,265 |
| |
Metal Mining |
| 1.6 | % | 7,189 |
| |
Electronic & Other Electric Equipment |
| 1.3 | % | 5,949 |
| |
Automotive |
| 1.2 | % | 5,241 |
| |
Business Services |
| 1.1 | % | 4,975 |
| |
Communications Equipment |
| 1.1 | % | 4,861 |
| |
Mining |
| 1.1 | % | 4,823 |
| |
Primary Metal Industries |
| 0.9 | % | 4,069 |
| |
Mortgage Bankers & Brokers |
| 0.9 | % | 4,053 |
| |
Beverages |
| 0.9 | % | 3,858 |
| |
Agriculture |
| 0.8 | % | 3,673 |
| |
Industrial Machinery & Equipment |
| 0.8 | % | 3,653 |
| |
Tobacco Products |
| 0.7 | % | 3,139 |
| |
Gas Production & Distribution |
| 0.7 | % | 3,071 |
| |
Life Insurance |
| 0.6 | % | 2,848 |
| |
Engineering & Management Services |
| 0.6 | % | 2,675 |
| |
Electronic Components & Accessories |
| 0.6 | % | 2,559 |
| |
Real Estate |
| 0.5 | % | 2,375 |
| |
Food Stores |
| 0.5 | % | 2,125 |
| |
Radio & Television Broadcasting |
| 0.5 | % | 2,106 |
| |
Construction |
| 0.4 | % | 1,977 |
| |
Aerospace |
| 0.4 | % | 1,876 |
| |
Health Services |
| 0.3 | % | 1,431 |
| |
Stone, Clay & Glass Products |
| 0.3 | % | 1,262 |
| |
Lumber & Other Building Materials |
| 0.3 | % | 1,215 |
| |
Communication |
| 0.3 | % | 1,125 |
| |
Business Credit Institutions |
| 0.3 | % | 1,114 |
| |
Electric, Gas & Sanitary Services |
| 0.2 | % | 993 |
| |
Instruments & Related Products |
| 0.2 | % | 978 |
| |
Retail Trade |
| 0.2 | % | 975 |
| |
Wholesale Trade Durable Goods |
| 0.2 | % | 937 |
| |
Residential Building Construction |
| 0.2 | % | 876 |
| |
Transportation & Public Utilities |
| 0.2 | % | 718 |
| |
Put Options |
| 0.2 | % | 711 |
| |
Restaurants |
| 0.2 | % | 676 |
| |
Public Administration |
| 0.2 | % | 654 |
| |
Beer, Wine & Distilled Beverages |
| 0.1 | % | 629 |
| |
34
Insurance Agents, Brokers & Service |
| 0.1 | % | 626 |
| |
Motion Pictures |
| 0.1 | % | 623 |
| |
Paper & Allied Products |
| 0.1 | % | 523 |
| |
Specialty- Real Estate |
| 0.1 | % | 502 |
| |
Personal Credit Institutions |
| 0.1 | % | 487 |
| |
Air Transportation |
| 0.1 | % | 439 |
| |
Radio, Television & Computer Stores |
| 0.1 | % | 437 |
| |
Drug Stores & Proprietary Stores |
| 0.1 | % | 383 |
| |
Medical Instruments & Supplies |
| 0.1 | % | 368 |
| |
Wholesale Trade Nondurable Goods |
| 0.1 | % | 339 |
| |
Hotels & Other Lodging Places |
| 0.1 | % | 316 |
| |
Textile Mill Products |
| 0.1 | % | 254 |
| |
Metal Cans & Shipping Containers |
| 0.1 | % | 227 |
| |
Misc. General Merchandise Stores |
| 0.1 | % | 223 |
| |
Apparel Products |
| 0.1 | % | 201 |
| |
Electrical Goods |
| 0.0 | % | 195 |
| |
Water Transportation |
| 0.0 | % | 149 |
| |
Research & Testing Services |
| 0.0 | % | 102 |
| |
Apparel & Accessory Stores |
| 0.0 | % | 75 |
| |
Printing & Publishing |
| 0.0 | % | 66 |
| |
Department Stores |
| 0.0 | % | 47 |
| |
Covered Call Options |
| 0.0 | % | 34 |
| |
Toys, Games & Hobbies |
| 0.0 | % | 17 |
| |
Management Services |
| 0.0 | % | 12 |
| |
Investment Securities, at value |
| 100.2 | % | 445,449 |
| |
Total Investment Securities |
| 100.2 | % | $ | 445,449 |
|
35
TA IDEX BlackRock Large Cap Value
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,098.40 |
| 0.84 | % | $ | 4.37 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,020.63 |
| 0.84 | % | 4.21 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
36
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Basic Materials |
| 5.9 | % |
Communications |
| 7.3 | % |
Consumer Cyclical |
| 6.0 | % |
Consumer Non-Cyclical |
| 16.5 | % |
Energy |
| 14.0 | % |
Financial |
| 25.4 | % |
Industrial |
| 8.0 | % |
Other |
| 6.9 | % |
Technology |
| 9.5 | % |
Utilities |
| 0.5 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
37
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (99.4%) |
|
|
|
|
| |
Aerospace (2.1%) |
|
|
|
|
| |
Lockheed Martin Corp. |
| 50,000 |
| $ | 4,807 |
|
Northrop Grumman Corp. |
| 99,000 |
| 7,287 |
| |
Air Transportation (0.7%) |
|
|
|
|
| |
AMR Corp.(‡)(†) |
| 162,000 |
| 4,227 |
| |
Amusement & Recreation Services (1.6%) |
|
|
|
|
| |
Disney (Walt) Co. (The) |
| 267,000 |
| 9,340 |
| |
Apparel & Accessory Stores (0.9%) |
|
|
|
|
| |
Nordstrom, Inc. |
| 90,000 |
| 4,943 |
| |
Automotive (1.1%) |
|
|
|
|
| |
General Motors Corp.(†) |
| 207,000 |
| 6,465 |
| |
Business Services (0.7%) |
|
|
|
|
| |
Convergys Corp.(‡) |
| 121,000 |
| 3,056 |
| |
Manpower, Inc. |
| 9,000 |
| 722 |
| |
Chemicals & Allied Products (3.0%) |
|
|
|
|
| |
Dow Chemical Co. (The) |
| 189,000 |
| 8,431 |
| |
du Pont (E.I.) de Nemours & Co. |
| 118,000 |
| 5,802 |
| |
Lyondell Chemical Co. |
| 45,000 |
| 1,400 |
| |
Procter & Gamble Co. |
| 26,000 |
| 1,672 |
| |
Commercial Banks (9.1%) |
|
|
|
|
| |
Bank of America Corp. |
| 139,000 |
| 7,075 |
| |
Citigroup, Inc. |
| 479,000 |
| 25,684 |
| |
JP Morgan Chase & Co. |
| 381,000 |
| 19,850 |
| |
Communication (0.4%) |
|
|
|
|
| |
DIRECTV Group (The), Inc.(‡) |
| 87,000 |
| 2,074 |
| |
Communications Equipment (0.3%) |
|
|
|
|
| |
Avaya, Inc.(‡) |
| 141,000 |
| 1,822 |
| |
Computer & Data Processing Services (5.5%) |
|
|
|
|
| |
Ceridian Corp.(‡) |
| 133,000 |
| 4,490 |
| |
Computer Sciences Corp.(‡) |
| 118,000 |
| 6,554 |
| |
Compuware Corp.(‡) |
| 450,000 |
| 4,441 |
| |
Electronic Data Systems Corp. |
| 66,000 |
| 1,930 |
| |
Fair Isaac Corp. |
| 53,000 |
| 1,893 |
| |
McAfee, Inc.(‡) |
| 47,000 |
| 1,527 |
| |
NCR Corp.(‡) |
| 26,000 |
| 1,310 |
| |
Sun Microsystems, Inc.(‡) |
| 1,218,000 |
| 6,358 |
| |
Sybase, Inc.(‡) |
| 53,000 |
| 1,282 |
| |
Unisys Corp.(‡) |
| 259,000 |
| 2,031 |
| |
Computer & Office Equipment (3.2%) |
|
|
|
|
| |
Hewlett-Packard Co. |
| 228,000 |
| 9,608 |
| |
International Business Machines Corp. |
| 72,000 |
| 7,359 |
| |
Lexmark International, Inc.(‡) |
| 23,000 |
| 1,253 |
| |
Department Stores (2.1%) |
|
|
|
|
| |
Federated Department Stores, Inc. |
| 167,000 |
| 7,335 |
| |
JC Penney Co., Inc. |
| 63,000 |
| 4,983 |
| |
Diversified (0.9%) |
|
|
|
|
| |
Honeywell International, Inc. |
| 95,000 |
| 5,147 |
| |
Electric Services (0.5%) |
|
|
|
|
| |
CMS Energy Corp.(‡) |
| 159,000 |
| 2,945 |
| |
Electronic & Other Electric Equipment (0.8%) |
|
|
|
|
| |
General Electric Co. |
| 121,000 |
| 4,460 |
| |
Electronic Components & Accessories (0.7%) |
|
|
|
|
| |
Integrated Device Technology, Inc.(‡) |
| 204,000 |
| 3,056 |
| |
Intersil Corp.-Class A |
| 29,000 |
| 864 |
| |
Food & Kindred Products (2.2%) |
|
|
|
|
| |
Campbell Soup Co. |
| 113,000 |
| 4,418 |
| |
HJ Heinz Co. |
| 128,000 |
| 6,030 |
| |
Tyson Foods, Inc.-Class A |
| 106,000 |
| 2,222 |
| |
Food Stores (1.3%) |
|
|
|
|
| |
Kroger Co. |
| 253,000 |
| 7,466 |
| |
Industrial Machinery & Equipment (2.9%) |
|
|
|
|
| |
Cummins, Inc. |
| 76,000 |
| 7,004 |
| |
SPX Corp. |
| 47,000 |
| 3,331 |
| |
38
Terex Corp.(‡) |
| 79,000 |
| 6,150 |
|
Instruments & Related Products (2.9%) |
|
|
|
|
|
Agilent Technologies, Inc.(‡) |
| 133,000 |
| 4,571 |
|
KLA-Tencor Corp.(†) |
| 105,000 |
| 5,833 |
|
Raytheon Co. |
| 118,000 |
| 6,318 |
|
Insurance (11.5%) |
|
|
|
|
|
Aetna, Inc. |
| 148,000 |
| 6,938 |
|
Alleghany Corp.(‡) |
| 2,040 |
| 730 |
|
AMBAC Financial Group, Inc.(†) |
| 65,000 |
| 5,967 |
|
American Financial Group, Inc. |
| 79,500 |
| 2,804 |
|
American International Group, Inc. |
| 223,000 |
| 15,590 |
|
Chubb Corp. |
| 124,000 |
| 6,675 |
|
Markel Corp.(‡) |
| 3,000 |
| 1,377 |
|
MGIC Investment Corp.(†) |
| 34,000 |
| 2,095 |
|
PMI Group, Inc. (The) |
| 97,000 |
| 4,702 |
|
SAFECO Corp. |
| 81,000 |
| 5,406 |
|
Travelers Cos., Inc. (The) |
| 114,000 |
| 6,167 |
|
WellPoint, Inc.(‡) |
| 95,000 |
| 7,502 |
|
Insurance Agents, Brokers & Service (0.8%) |
|
|
|
|
|
Humana, Inc.(‡) |
| 73,000 |
| 4,616 |
|
Life Insurance (3.0%) |
|
|
|
|
|
Metlife, Inc. |
| 122,000 |
| 8,015 |
|
Nationwide Financial Services-Class A |
| 14,000 |
| 800 |
|
Prudential Financial, Inc. |
| 90,000 |
| 8,550 |
|
Motion Pictures (1.9%) |
|
|
|
|
|
Time Warner, Inc. |
| 536,000 |
| 11,058 |
|
Paper & Allied Products (1.2%) |
|
|
|
|
|
International Paper Co. |
| 186,000 |
| 7,016 |
|
Petroleum Refining (15.0%) |
|
|
|
|
|
Chevron Corp. |
| 244,000 |
| 18,981 |
|
Exxon Mobil Corp. |
| 494,000 |
| 39,214 |
|
Frontier Oil Corp. |
| 81,000 |
| 2,862 |
|
Marathon Oil Corp. |
| 86,000 |
| 8,733 |
|
Tesoro Corp. |
| 55,000 |
| 6,666 |
|
Valero Energy Corp. |
| 138,000 |
| 9,692 |
|
Pharmaceuticals (9.7%) |
|
|
|
|
|
AmerisourceBergen Corp. |
| 106,000 |
| 5,299 |
|
Biogen Idec, Inc.(‡) |
| 73,000 |
| 3,446 |
|
Cardinal Health, Inc. |
| 67,000 |
| 4,687 |
|
McKesson Corp. |
| 55,000 |
| 3,236 |
|
Medco Health Solutions, Inc.(‡) |
| 87,000 |
| 6,788 |
|
Merck & Co., Inc. |
| 226,000 |
| 11,625 |
|
Pfizer, Inc. |
| 785,000 |
| 20,771 |
|
Primary Metal Industries (2.4%) |
|
|
|
|
|
Nucor Corp. |
| 112,000 |
| 7,107 |
|
United States Steel Corp. |
| 64,000 |
| 6,499 |
|
Retail Trade (0.5%) |
|
|
|
|
|
Dollar Tree Stores, Inc.(‡) |
| 69,000 |
| 2,713 |
|
Security & Commodity Brokers (6.0%) |
|
|
|
|
|
Bear Stearns Cos. Inc. (The) |
| 41,000 |
| 6,384 |
|
Goldman Sachs Group, Inc. (The) |
| 35,000 |
| 7,651 |
|
Lehman Brothers Holdings, Inc. |
| 109,000 |
| 8,206 |
|
Morgan Stanley(†) |
| 143,000 |
| 12,013 |
|
Telecommunications (3.3%) |
|
|
|
|
|
AT&T, Inc. |
| 206,000 |
| 7,976 |
|
CenturyTel, Inc. |
| 93,000 |
| 4,283 |
|
Qwest Communications International(‡)(†) |
| 751,000 |
| 6,669 |
|
Tobacco Products (0.2%) |
|
|
|
|
|
UST, Inc.(†) |
| 18,000 |
| 1,020 |
|
Water Transportation (1.0%) |
|
|
|
|
|
Tidewater, Inc.(†) |
| 96,000 |
| 6,068 |
|
Total Common Stocks (cost: $471,321) |
|
|
| 571,423 |
|
39
|
| Principal |
| Value |
|
SHORT-TERM OBLIGATIONS (0.5%) |
|
|
|
|
|
Short-Term Investments (0.5%) |
|
|
|
|
|
Merrill Lynch Money Market Mutual Fund |
|
|
|
|
|
5.33%, due 06/15/2007 |
| 2,912,471 |
| 2,913 |
|
Total Short-Term Obligations (cost: $2,913) |
|
|
| 2,913 |
|
|
|
|
|
|
|
SECURITY LENDING COLLATERAL (6.9%) |
|
|
|
|
|
Debt (6.9%) |
|
|
|
|
|
Bank Notes (0.4%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 1,236 |
| 1,236 |
|
5.27%, due 06/18/2007(*) |
| 1,236 |
| 1,236 |
|
Commercial Paper (1.5%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 495 |
| 495 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 479 |
| 479 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 329 |
| 329 |
|
5.29%, due 06/13/2007 |
| 247 |
| 247 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 247 |
| 247 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 247 |
| 247 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 247 |
| 247 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 247 |
| 247 |
|
5.28%, due 05/24/2007 |
| 247 |
| 247 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 495 |
| 495 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 484 |
| 484 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 495 |
| 495 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 495 |
| 495 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 978 |
| 978 |
|
5.30%, due 05/29/2007 |
| 247 |
| 247 |
|
5.29%, due 05/31/2007 |
| 247 |
| 247 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 247 |
| 247 |
|
5.29%, due 05/17/2007 |
| 247 |
| 247 |
|
5.28%, due 06/01/2007 |
| 247 |
| 247 |
|
5.29%, due 06/19/2007 |
| 326 |
| 326 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 371 |
| 371 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 247 |
| 247 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 495 |
| 495 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 247 |
| 247 |
|
Euro Dollar Overnight (0.9%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 247 |
| 247 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 495 |
| 495 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 495 |
| 495 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 495 |
| 495 |
|
40
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 495 |
| 495 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 495 |
| 495 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 495 |
| 495 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 247 |
| 247 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 494 |
| 494 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 938 |
| 938 |
|
Euro Dollar Terms (2.5%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 494 |
| 494 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 247 |
| 247 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 346 |
| 346 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 494 |
| 494 |
|
5.30%, due 05/16/2007 |
| 494 |
| 494 |
|
5.29%, due 05/21/2007 |
| 247 |
| 247 |
|
5.30%, due 06/04/2007 |
| 247 |
| 247 |
|
5.29%, due 06/08/2007 |
| 494 |
| 494 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 247 |
| 247 |
|
5.31%, due 05/24/2007 |
| 494 |
| 494 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 742 |
| 742 |
|
5.28%, due 05/29/2007 |
| 247 |
| 247 |
|
Credit Suisse First Boston Corp. |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 494 |
| 494 |
|
Deutsche Bank |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 494 |
| 494 |
|
Fortis Bank |
|
|
|
|
|
5.28%, due 05/21/2007 |
| 742 |
| 742 |
|
5.28%, due 05/25/2007 |
| 742 |
| 742 |
|
5.30%, due 06/25/2007 |
| 494 |
| 494 |
|
HBOS Halifax Bank of Scotland |
|
|
|
|
|
5.30%, due 06/13/2007 |
| 742 |
| 742 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.30%, due 05/08/2007 |
| 494 |
| 494 |
|
5.30%, due 05/09/2007 |
| 247 |
| 247 |
|
5.31%, due 05/25/2007 |
| 494 |
| 494 |
|
Skandinaviska Enskilda Banken AB |
|
|
|
|
|
5.28%, due 05/15/2007 |
| 247 |
| 247 |
|
Swedbank AB |
|
|
|
|
|
5.30%, due 05/11/2007 |
| 494 |
| 494 |
|
Toronto Dominion Bank |
|
|
|
|
|
5.28%, due 05/10/2007 |
| 494 |
| 494 |
|
UBS AG |
|
|
|
|
|
5.28%, due 06/01/2007 |
| 494 |
| 494 |
|
5.29%, due 06/12/2007 |
| 989 |
| 989 |
|
5.29%, due 06/15/2007 |
| 742 |
| 742 |
|
5.29%, due 06/18/2007 |
| 1,236 |
| 1,236 |
|
Repurchase Agreements (1.6%)(††) |
|
|
|
|
|
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $1,369 on 05/01/2007 |
| 1,369 |
| 1,369 |
|
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $5,439 on 05/01/2007 |
| 5,438 |
| 5,438 |
|
41
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $2,382 on 05/01/2007 |
| 2,382 |
| 2,382 |
| |
Total Security Lending Collateral (cost: $39,642) |
|
|
| 39,642 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $513,876)(#) |
|
|
| $ | 613,978 |
|
The notes to the financial statements are an integral part of this report.
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) Non-income producing.
(†) At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $37,864.
(*) Floating or variable rate note. Rate is listed as of April 30, 2007.
(††) Cash collateral for the Repurchase Agreements, valued at $9,426, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively.
(#) Aggregate cost for federal income tax purposes is $514,141. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $105,425 and $5,588, respectively. Net unrealized appreciation for tax purposes is $99,837.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $7,416 or 1.3% of the net assets of the Fund.
42
TA IDEX BlackRock Natural Resources
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at January 3, 2007 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,115.00 |
| 0.93 | % | $ | 3.15 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,013.05 |
| 0.93 | % | 3.00 |
| |||
(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 number of days in the period (117 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
43
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Basic Materials |
| 10.6 | % |
Consumer Non-Cyclical |
| 0.3 | % |
Energy |
| 89.1 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
44
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (91.1%) |
|
|
|
|
| |
Chemicals & Allied Products (0.6%) |
|
|
|
|
| |
du Pont (E.I.) de Nemours & Co. |
| 8,800 |
| $ | 433 |
|
Praxair, Inc. |
| 4,800 |
| 310 |
| |
Computer & Data Processing Services (0.4%) |
|
|
|
|
| |
Votorantim Celulose e Papel SA, Sponsored ADR |
| 26,400 |
| 527 |
| |
Electric Services (0.0%) |
|
|
|
|
| |
Dynegy, Inc.-Class A(‡) |
| 700 |
| 7 |
| |
Gas Production & Distribution (0.8%) |
|
|
|
|
| |
Southwestern Energy Co.(‡) |
| 8,200 |
| 344 |
| |
Williams Cos., Inc. (The) |
| 18,600 |
| 549 |
| |
Holding & Other Investment Offices (0.2%) |
|
|
|
|
| |
Sikanni Services, Ltd.-144A(a) |
| 400,000 |
| 224 |
| |
Industrial Machinery & Equipment (10.6%) |
|
|
|
|
| |
Baker Hughes, Inc. |
| 29,400 |
| 2,363 |
| |
Cameron International Corp.(‡) |
| 24,600 |
| 1,588 |
| |
Dresser-Rand Group, Inc.(‡) |
| 47,400 |
| 1,513 |
| |
Dril-Quip, Inc.(‡) |
| 14,800 |
| 747 |
| |
FMC Technologies, Inc.(‡) |
| 18,800 |
| 1,333 |
| |
Grant Prideco, Inc.(‡) |
| 9,000 |
| 464 |
| |
National Oilwell Varco, Inc.(‡) |
| 28,900 |
| 2,452 |
| |
Oil States International, Inc.(‡) |
| 20,800 |
| 706 |
| |
Smith International, Inc. |
| 25,700 |
| 1,348 |
| |
Metal Mining (6.7%) |
|
|
|
|
| |
Alumina, Ltd. |
| 40,600 |
| 242 |
| |
AUR Resources, Inc. |
| 13,200 |
| 291 |
| |
Barrick Gold Corp. |
| 13,700 |
| 386 |
| |
BHP Billiton, Ltd. |
| 16,000 |
| 393 |
| |
Cia Vale do Rio Doce, ADR |
| 23,000 |
| 934 |
| |
Eldorado Gold Corp.(‡) |
| 106,700 |
| 621 |
| |
Goldcorp, Inc. |
| 35,300 |
| 860 |
| |
Hudbay Minerals, Inc. |
| 51,500 |
| 971 |
| |
Newcrest Mining, Ltd. |
| 31,700 |
| 614 |
| |
Newmont Mining Corp. |
| 2,400 |
| 100 |
| |
Southern Copper Corp. |
| 12,100 |
| 972 |
| |
SXR Uranium One, Inc.(‡) |
| 31,700 |
| 478 |
| |
Teck CominCo, Ltd.-Class B |
| 13,100 |
| 997 |
| |
Mining (2.4%) |
|
|
|
|
| |
Arch Coal, Inc. |
| 9,500 |
| 343 |
| |
Consol Energy, Inc. |
| 18,000 |
| 754 |
| |
Peabody Energy Corp. |
| 36,700 |
| 1,761 |
| |
Oil & Gas Extraction (50.3%) |
|
|
|
|
| |
Acergy SA, Sponsored ADR(‡) |
| 22,400 |
| 480 |
| |
Apache Corp. |
| 33,400 |
| 2,421 |
| |
Bill Barrett Corp.(‡) |
| 2,800 |
| 103 |
| |
BJ Services Co. |
| 26,900 |
| 771 |
| |
Cabot Oil & Gas Corp. |
| 23,200 |
| 845 |
| |
Canadian Natural Resources, Ltd. |
| 31,600 |
| 1,891 |
| |
Carrizo Oil & Gas, Inc.(‡) |
| 15,600 |
| 575 |
| |
Cimarex Energy Co. |
| 5,600 |
| 221 |
| |
CNOOC, Ltd., ADR |
| 8,300 |
| 710 |
| |
Complete Production Services, Inc.(‡) |
| 10,900 |
| 262 |
| |
Compton Petroleum Corp.(‡) |
| 69,200 |
| 743 |
| |
Crew Energy, Inc.(‡) |
| 71,400 |
| 671 |
| |
Devon Energy Corp. |
| 52,000 |
| 3,789 |
| |
Diamond Offshore Drilling, Inc. |
| 5,800 |
| 496 |
| |
EnCana Corp. |
| 32,600 |
| 1,714 |
| |
ENI SpA, ADR |
| 5,100 |
| 338 |
| |
ENSCO International, Inc. |
| 28,300 |
| 1,596 |
| |
EOG Resources, Inc. |
| 55,600 |
| 4,083 |
| |
Equitable Resources, Inc. |
| 26,900 |
| 1,399 |
| |
Forest Oil Corp.(‡) |
| 12,100 |
| 426 |
| |
GlobalSantaFe Corp. |
| 38,300 |
| 2,449 |
| |
Grand Petroleum, Inc.(‡) |
| 36,900 |
| 114 |
| |
45
Halliburton Co. |
| 38,400 |
| 1,220 |
| |
Hanover Compressor Co.(‡) |
| 400 |
| 9 |
| |
Helmerich & Payne, Inc. |
| 25,100 |
| 810 |
| |
Hercules Offshore, Inc.(‡) |
| 23,100 |
| 726 |
| |
Husky Energy, Inc. |
| 14,000 |
| 1,072 |
| |
Kereco Energy, Ltd.(‡) |
| 32,400 |
| 199 |
| |
Mariner Energy, Inc.(‡) |
| 9,800 |
| 221 |
| |
Nabors Industries, Ltd.(‡) |
| 17,800 |
| 572 |
| |
Newfield Exploration Co.(‡) |
| 18,200 |
| 796 |
| |
Nexen, Inc. |
| 15,600 |
| 932 |
| |
Noble Corp. |
| 18,700 |
| 1,575 |
| |
Noble Energy, Inc. |
| 16,800 |
| 988 |
| |
Occidental Petroleum Corp. |
| 27,600 |
| 1,399 |
| |
Oilexco, Inc.(‡) |
| 21,600 |
| 171 |
| |
Pan Orient Energy Corp.(‡) |
| 59,100 |
| 262 |
| |
Paramount Resources, Ltd.-Class A(‡) |
| 19,800 |
| 434 |
| |
Petro-Canada |
| 33,200 |
| 1,483 |
| |
Pride International, Inc.(‡) |
| 18,700 |
| 614 |
| |
ProEx Energy, Ltd.(‡) |
| 24,400 |
| 311 |
| |
Range Resources Corp. |
| 41,400 |
| 1,513 |
| |
Real Resources, Inc.(‡) |
| 23,800 |
| 199 |
| |
Rowan Cos., Inc. |
| 13,200 |
| 484 |
| |
Saipem SpA |
| 43,400 |
| 1,375 |
| |
Schlumberger, Ltd. |
| 20,000 |
| 1,477 |
| |
Superior Well Services, Inc.(‡) |
| 2,700 |
| 68 |
| |
Talisman Energy, Inc. |
| 158,800 |
| 3,026 |
| |
Technip SA, Sponsored ADR |
| 17,100 |
| 1,273 |
| |
Tesco Corp.(‡) |
| 28,000 |
| 831 |
| |
Todco-Class A(‡) |
| 26,100 |
| 1,186 |
| |
Total SA, ADR |
| 24,000 |
| 1,769 |
| |
Transocean, Inc.(‡) |
| 30,900 |
| 2,664 |
| |
Trican Well Service, Ltd. |
| 14,900 |
| 317 |
| |
TriStar Oil & Gas, Ltd.(‡) |
| 73,600 |
| 326 |
| |
TUSK Energy Corp.(‡) |
| 177,600 |
| 313 |
| |
Weatherford International, Ltd.(‡) |
| 46,100 |
| 2,420 |
| |
Petroleum Refining (16.4%) |
|
|
|
|
| |
BP PLC, ADR |
| 4,900 |
| 330 |
| |
Chevron Corp. |
| 36,800 |
| 2,863 |
| |
ConocoPhillips |
| 33,700 |
| 2,337 |
| |
Exxon Mobil Corp. |
| 34,100 |
| 2,707 |
| |
Hess Corp. |
| 12,700 |
| 721 |
| |
Holly Corp. |
| 7,400 |
| 471 |
| |
Marathon Oil Corp. |
| 18,800 |
| 1,909 |
| |
Murphy Oil Corp. |
| 65,300 |
| 3,620 |
| |
Suncor Energy, Inc. |
| 26,700 |
| 2,151 |
| |
Sunoco, Inc. |
| 6,700 |
| 506 |
| |
Valero Energy Corp. |
| 23,500 |
| 1,650 |
| |
Primary Metal Industries (2.0%) |
|
|
|
|
| |
Alcan, Inc. |
| 8,000 |
| 471 |
| |
Alcoa, Inc. |
| 6,000 |
| 213 |
| |
Aluminum Corp. of China, Ltd., ADR |
| 52,600 |
| 1,528 |
| |
Lone Star Technologies, Inc.(‡) |
| 2,600 |
| 173 |
| |
Security & Commodity Brokers (0.4%) |
|
|
|
|
| |
Coastal Energy Co.(‡) |
| 527,700 |
| 430 |
| |
Water Transportation (0.3%) |
|
|
|
|
| |
Aegean Marine Petroleum Network, Inc. |
| 19,100 |
| 297 |
| |
Total Common Stocks (cost: $95,613) |
|
|
| 107,134 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $95,613)(#) |
|
|
| $ | 107,134 |
|
The notes to the financial statements are an integral part of this report.
46
NOTES TO SCHEDULE OF INVESTMENTS:
| (‡) |
| Non-income producing. |
| (a) |
| Security is deemed to be illiquid. |
| (#) |
| Aggregate cost for federal income tax purposes is $95,616. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $12,026 and $508, respectively. Net unrealized appreciation for tax purposes is $11,518. |
|
|
|
|
DEFINITIONS: | |||
| |||
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 April 30, 2007, these securities aggregated $224 or 0.2% of the net assets of the Fund. |
ADR |
|
| American Depositary Receipt |
47
TA IDEX Evergreen International Small Cap
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,219.80 |
| 1.14 | % | $ | 6.27 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,019.14 |
| 1.14 | % | 5.71 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
48
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Europe |
| 76.2 | % |
Latin America |
| 0.5 | % |
North America |
| 4.3 | % |
Other |
| 0.8 | % |
Pacific Rim |
| 16.9 | % |
South America |
| 1.3 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
49
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
PREFERRED STOCKS (0.5%) |
|
|
|
|
| |
Italy (0.5%) |
|
|
|
|
| |
Unipol SpA |
| 782,441 |
| $ | 2,921 |
|
Total Preferred Stocks (cost: $2,899) |
|
|
| 2,921 |
| |
|
|
|
|
|
| |
COMMON STOCKS (95.2%) |
|
|
|
|
| |
Argentina (0.6%) |
|
|
|
|
| |
IRSA Inversiones y Representaciones SA, GDR(‡)(†) |
| 152,154 |
| 3,183 |
| |
Australia (1.4%) |
|
|
|
|
| |
QBE Insurance Group, Ltd. |
| 302,055 |
| 7,759 |
| |
Belgium (1.2%) |
|
|
|
|
| |
Barco NV |
| 20,263 |
| 1,831 |
| |
Umicore |
| 22,229 |
| 4,506 |
| |
Bermuda (0.8%) |
|
|
|
|
| |
China Gas Holdings, Ltd. |
| 21,074,000 |
| 4,284 |
| |
Brazil (0.8%) |
|
|
|
|
| |
Empresa Brasileira de Aeronautica SA, ADR |
| 89,635 |
| 4,205 |
| |
Canada (0.4%) |
|
|
|
|
| |
Eldorado Gold Corp.(‡) |
| 347,700 |
| 2,023 |
| |
China (0.6%) |
|
|
|
|
| |
Sinotrans, Ltd.-Class H |
| 7,969,000 |
| 3,159 |
| |
Denmark (0.8%) |
|
|
|
|
| |
Rockwool International AS-Class B |
| 19,310 |
| 4,435 |
| |
Finland (1.8%) |
|
|
|
|
| |
Amer Group(†) |
| 68,250 |
| 1,519 |
| |
Nokian Renkaat OYJ |
| 260,100 |
| 8,040 |
| |
France (12.6%) |
|
|
|
|
| |
Carbone Lorraine SA |
| 54,173 |
| 3,578 |
| |
EDF Energies Nouvelles SA(‡)(†) |
| 150,149 |
| 8,867 |
| |
Eurofins Scientific(‡) |
| 85,618 |
| 7,944 |
| |
Flo Groupe(‡) |
| 133,212 |
| 1,927 |
| |
Groupe Crit |
| 31,531 |
| 1,587 |
| |
Michelin (C.G.D.E.)-Class B |
| 26,118 |
| 3,344 |
| |
Neopost SA |
| 75,482 |
| 11,003 |
| |
Remy Cointreau, S.A. |
| 78,805 |
| 5,781 |
| |
Rhodia(‡)(†) |
| 3,779,441 |
| 15,577 |
| |
Sechilienne-Sidec |
| 36,329 |
| 2,278 |
| |
Societe BIC SA |
| 85,125 |
| 6,239 |
| |
Germany (10.2%) |
|
|
|
|
| |
Adidas AG |
| 186,401 |
| 11,155 |
| |
Bauer AG(‡) |
| 12,825 |
| 1,020 |
| |
Bilfinger Berger AG |
| 89,828 |
| 8,521 |
| |
Continental AG |
| 36,132 |
| 5,053 |
| |
D+S europe AG(‡) |
| 199,970 |
| 2,986 |
| |
HCI Capital AG |
| 24,728 |
| 590 |
| |
Hochtief AG |
| 49,718 |
| 5,259 |
| |
Leoni AG |
| 83,600 |
| 3,805 |
| |
MTU Aero Engines Holding AG |
| 53,609 |
| 3,146 |
| |
Patrizia Immobilien AG(‡) |
| 134,551 |
| 2,855 |
| |
Premiere AG(‡) |
| 165,295 |
| 3,490 |
| |
Puma AG Rudolf Dassler Sport |
| 4,319 |
| 1,975 |
| |
Software AG |
| 46,803 |
| 4,170 |
| |
United Internet AG |
| 58,642 |
| 1,091 |
| |
Gibraltar (0.3%) |
|
|
|
|
| |
888 Holdings PLC |
| 790,303 |
| 1,901 |
| |
Greece (1.1%) |
|
|
|
|
| |
Intralot SA-Integrated Lottery Systems & Services |
| 35,304 |
| 1,108 |
| |
J&P-Avax SA |
| 70,586 |
| 751 |
| |
Postal Savings Bank(‡) |
| 181,236 |
| 4,363 |
| |
Ireland (1.3%) |
|
|
|
|
| |
Anglo Irish Bank Corp. PLC |
| 154,162 |
| 3,486 |
| |
Kingspan Group PLC |
| 123,429 |
| 3,470 |
| |
50
Italy (8.3%) |
|
|
|
|
|
Astaldi SpA |
| 161,347 |
| 1,684 |
|
CIR-Compagnie Industriali Riunite SpA |
| 1,327,991 |
| 5,771 |
|
Davide Campari-Milano SpA |
| 465,040 |
| 4,845 |
|
ERG SpA |
| 150,760 |
| 4,269 |
|
Geox SpA |
| 261,398 |
| 4,830 |
|
Gruppo Coin SpA(‡) |
| 965,153 |
| 8,297 |
|
Impregilo SpA(‡) |
| 1,692,834 |
| 13,836 |
|
Saras SpA(‡) |
| 208,437 |
| 1,309 |
|
Japan (13.3%) |
|
|
|
|
|
Advan Co., Ltd.(†) |
| 107,700 |
| 1,328 |
|
Ariake Japan Co., Ltd |
| 108,300 |
| 2,224 |
|
Bank of Yokohama, Ltd. (The) |
| 291,000 |
| 2,130 |
|
Capcom Co., Ltd.(†) |
| 255,500 |
| 3,874 |
|
Fuyo General Lease Co., Ltd. |
| 67,700 |
| 2,153 |
|
Isetan Co., Ltd. |
| 171,400 |
| 2,803 |
|
Ishikawajima-Harima Heavy Industries Co., Ltd. |
| 836,000 |
| 3,257 |
|
Japan Securities Finance Co., Ltd. |
| 258,400 |
| 3,672 |
|
Kawasaki Heavy Industries, Ltd. |
| 370,000 |
| 1,473 |
|
Koei Co, Ltd. |
| 121,000 |
| 1,919 |
|
Megachips Corp. |
| 70,500 |
| 1,400 |
|
Message Co., Ltd. |
| 1,371 |
| 2,196 |
|
Mitsubishi Gas Chemical Co., Inc. |
| 244,000 |
| 2,106 |
|
Mitsubishi UFJ Lease & Finance Co., Ltd. |
| 81,000 |
| 3,463 |
|
Nidec Corp. |
| 52,200 |
| 3,293 |
|
Nipponkoa Insurance Co., Ltd. |
| 448,000 |
| 3,728 |
|
Nissha Printing Co., Ltd. |
| 85,400 |
| 2,606 |
|
Okumura Corp. |
| 448,000 |
| 2,497 |
|
Square Enix Co., Ltd. |
| 168,000 |
| 4,288 |
|
Sugi Pharmacy Co., Ltd. |
| 130,000 |
| 2,575 |
|
Sumitomo Bakelite Co., Ltd. |
| 249,000 |
| 1,762 |
|
Sundrug Co., Ltd.(†) |
| 170,000 |
| 3,615 |
|
Taiheiyo Cement Corp. |
| 541,000 |
| 2,317 |
|
Toho Co., Ltd. |
| 102,700 |
| 2,015 |
|
Tokuyama Corp. |
| 229,000 |
| 3,433 |
|
Tokyo Tatemono Co., Ltd. |
| 112,000 |
| 1,565 |
|
Toray Industries, Inc. |
| 593,000 |
| 4,066 |
|
Malta (0.1%) |
|
|
|
|
|
Unibet Group PLC, SDR |
| 15,276 |
| 506 |
|
Mexico (0.5%) |
|
|
|
|
|
Alsea SA |
| 1,680,000 |
| 2,888 |
|
Netherlands (5.3%) |
|
|
|
|
|
Boskalis Westminster |
| 142,469 |
| 15,932 |
|
Grolsch NV(‡) |
| 29,903 |
| 1,324 |
|
Koninklijke BAM Groep NV |
| 81,640 |
| 2,176 |
|
Laurus NV(‡) |
| 878,176 |
| 3,595 |
|
Macintosh Retail Group NV |
| 55,920 |
| 2,562 |
|
SBM Offshore NV |
| 40,193 |
| 1,451 |
|
USG People NV |
| 31,288 |
| 1,432 |
|
Norway (0.8%) |
|
|
|
|
|
Aker Yards AS |
| 226,700 |
| 4,117 |
|
Singapore (0.6%) |
|
|
|
|
|
CapitaCommercial Trust REIT |
| 920,000 |
| 1,707 |
|
StarHub, Ltd. |
| 950,000 |
| 1,825 |
|
South Korea (1.1%) |
|
|
|
|
|
Korean Air Lines Co., Ltd. |
| 522 |
| 25 |
|
Lotte Confectionery Co., Ltd. |
| 1,980 |
| 2,475 |
|
Tae Young Corp. |
| 37,590 |
| 3,288 |
|
Spain (9.3%) |
|
|
|
|
|
Altadis SA |
| 76,084 |
| 5,010 |
|
Campofrio Alimentacion SA |
| 65,519 |
| 1,328 |
|
Cia de Distribucion Integral Logista SA |
| 148,016 |
| 11,777 |
|
Cintra Concesiones de Infraestructuras de Transporte SA |
| 219,652 |
| 3,954 |
|
Grifols SA(‡) |
| 459,873 |
| 8,059 |
|
La Seda de Barcelona SA-Class B(‡) |
| 801,697 |
| 2,582 |
|
NH Hoteles SA |
| 43,700 |
| 985 |
|
51
Promotora de Informaciones SA |
| 102,459 |
| 2,313 |
|
Sol Melia SA |
| 141,174 |
| 3,456 |
|
Tecnicas Reunidas SA |
| 79,227 |
| 4,217 |
|
Uralita SA |
| 834,998 |
| 6,723 |
|
Switzerland (2.4%) |
|
|
|
|
|
Lindt & Spruengli AG(‡) |
| 1,722 |
| 4,781 |
|
Logitech International SA(‡) |
| 301,772 |
| 8,278 |
|
United Kingdom (19.6%) |
|
|
|
|
|
Arriva PLC |
| 358,127 |
| 5,454 |
|
Ashtead Group PLC |
| 527,059 |
| 1,631 |
|
Balfour Beatty PLC |
| 582,044 |
| 5,459 |
|
BlueBay Asset Management/United Kingdom |
| 30,900 |
| 284 |
|
Carphone Warehouse Group PLC |
| 918,815 |
| 5,572 |
|
Charter PLC(‡) |
| 265,418 |
| 5,470 |
|
Enterprise Inns PLC |
| 295,658 |
| 3,790 |
|
FirstGroup PLC |
| 352,695 |
| 4,698 |
|
Game Group PLC |
| 5,215,689 |
| 16,011 |
|
Gems TV Holdings, Ltd. |
| 1,280,000 |
| 1,213 |
|
ICAP PLC |
| 281,497 |
| 2,858 |
|
Kelda Group PLC |
| 268,406 |
| 5,003 |
|
Land of Leather Holdings PLC |
| 321,903 |
| 1,772 |
|
Man Group PLC |
| 376,227 |
| 4,251 |
|
Marstons PLC |
| 492,698 |
| 4,252 |
|
National Express Group PLC |
| 224,945 |
| 5,542 |
|
Numis Corp. PLC |
| 401,069 |
| 2,607 |
|
Pennon Group PLC |
| 359,547 |
| 4,339 |
|
Photo-Me International PLC |
| 1,089,429 |
| 1,629 |
|
Premier Oil PLC(‡) |
| 62,978 |
| 1,520 |
|
Punch Taverns PLC |
| 130,718 |
| 3,409 |
|
RAB Capital PLC |
| 1,860,773 |
| 3,972 |
|
Randgold Resources, Ltd., ADR |
| 47,395 |
| 1,135 |
|
Regent Inns PLC(‡) |
| 1,268,670 |
| 2,975 |
|
Spring Group PLC |
| 164,638 |
| 221 |
|
Stagecoach Group PLC |
| 1,316,695 |
| 4,917 |
|
Star Energy Group PLC(‡) |
| 387,522 |
| 1,612 |
|
Topps Tiles PLC |
| 515,706 |
| 2,816 |
|
Tullow Oil PLC |
| 219,580 |
| 1,609 |
|
Total Common Stocks (cost: $389,569) |
|
|
| 514,650 |
|
| Principal |
| Value |
| |
SECURITY LENDING COLLATERAL (5.7%) |
|
|
|
|
|
Debt (5.7%) |
|
|
|
|
|
Bank Notes (0.4%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 961 |
| 961 |
|
5.27%, due 06/18/2007(*) |
| 961 |
| 961 |
|
Commercial Paper (1.2%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 384 |
| 384 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 372 |
| 372 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 256 |
| 256 |
|
5.29%, due 06/13/2007 |
| 192 |
| 192 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 192 |
| 192 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 192 |
| 192 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 192 |
| 192 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 192 |
| 192 |
|
5.28%, due 05/24/2007 |
| 192 |
| 192 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 385 |
| 385 |
|
52
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 376 |
| 376 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 385 |
| 385 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 385 |
| 385 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 761 |
| 761 |
|
5.30%, due 05/29/2007 |
| 192 |
| 192 |
|
5.29%, due 05/31/2007 |
| 192 |
| 192 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 192 |
| 192 |
|
5.29%, due 05/17/2007 |
| 192 |
| 192 |
|
5.28%, due 06/01/2007 |
| 192 |
| 192 |
|
5.29%, due 06/19/2007 |
| 253 |
| 253 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 288 |
| 288 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 192 |
| 192 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 385 |
| 385 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 192 |
| 192 |
|
Euro Dollar Overnight (0.7%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 192 |
| 192 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 385 |
| 385 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 385 |
| 385 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 385 |
| 385 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 385 |
| 385 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 385 |
| 385 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 385 |
| 385 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 192 |
| 192 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 385 |
| 385 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 729 |
| 729 |
|
Euro Dollar Terms (2.1%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 385 |
| 385 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 192 |
| 192 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 269 |
| 269 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 385 |
| 385 |
|
5.30%, due 05/16/2007 |
| 385 |
| 385 |
|
5.29%, due 05/21/2007 |
| 192 |
| 192 |
|
5.30%, due 06/04/2007 |
| 192 |
| 192 |
|
5.29%, due 06/08/2007 |
| 385 |
| 385 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 192 |
| 192 |
|
5.31%, due 05/24/2007 |
| 385 |
| 385 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 577 |
| 577 |
|
5.28%, due 05/29/2007 |
| 192 |
| 192 |
|
Credit Suisse First Boston Corp. |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 385 |
| 385 |
|
53
Deutsche Bank |
|
|
|
|
| |
5.30%, due 05/15/2007 |
| 385 |
| 385 |
| |
Fortis Bank |
|
|
|
|
| |
5.28%, due 05/21/2007 |
| 577 |
| 577 |
| |
5.28%, due 05/25/2007 |
| 577 |
| 577 |
| |
5.30%, due 06/25/2007 |
| 385 |
| 385 |
| |
HBOS Halifax Bank of Scotland |
|
|
|
|
| |
5.30%, due 06/13/2007 |
| 577 |
| 577 |
| |
Royal Bank of Scotland |
|
|
|
|
| |
5.30%, due 05/08/2007 |
| 385 |
| 385 |
| |
5.30%, due 05/09/2007 |
| 192 |
| 192 |
| |
5.31%, due 05/25/2007 |
| 385 |
| 385 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
| |
5.28%, due 05/15/2007 |
| 192 |
| 192 |
| |
Swedbank AB |
|
|
|
|
| |
5.30%, due 05/11/2007 |
| 385 |
| 385 |
| |
Toronto Dominion Bank |
|
|
|
|
| |
5.28%, due 05/10/2007 |
| 385 |
| 385 |
| |
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 385 |
| 385 |
| |
5.29%, due 06/12/2007 |
| 769 |
| 769 |
| |
5.29%, due 06/15/2007 |
| 577 |
| 577 |
| |
5.29%, due 06/18/2007 |
| 961 |
| 961 |
| |
Repurchase Agreements (1.3%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $1,065 on 05/01/2007 |
| 1,065 |
| 1,065 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $4,231 on 05/01/2007 |
| 4,230 |
| 4,230 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,853 on 05/01/2007 |
| 1,853 |
| 1,853 |
| |
Total Security Lending Collateral (cost: $30,837) |
|
|
| 30,837 |
| |
Total Investment Securities (cost: $423,305)(#) |
|
|
| $ | 548,408 |
|
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) |
| Non-income producing. |
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $29,095. |
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. |
(††) |
| Cash collateral for the Repurchase Agreements, valued at $7,332, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. |
(#) |
| Aggregate cost for federal income tax purposes is $423,655. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $130,461 and $5,708, respectively. Net unrealized appreciation for tax purposes is $124,753. |
54
DEFINITIONS: | ||
| ||
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 April 30, 2007, these securities aggregated $5,765 or 1.1% of the net assets of the Fund. |
ADR |
| American Depositary Receipt |
GDR |
| Global Depositary Receipt |
REIT |
| Real Estate Investment Trust |
SDR |
| Swedish Depositary Receipts |
The notes to the financial statements are an integral part of this report.
55
|
| Percentage of |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Engineering & Management Services |
| 6.4 | % | $ | 34,585 |
|
Rubber & Misc. Plastic Products |
| 5.5 | % | 29,567 |
| |
Chemicals & Allied Products |
| 4.7 | % | 25,461 |
| |
Construction |
| 4.4 | % | 23,778 |
| |
Transportation & Public Utilities |
| 4.4 | % | 23,770 |
| |
Computer & Office Equipment |
| 3.6 | % | 19,281 |
| |
Security & Commodity Brokers |
| 3.5 | % | 19,041 |
| |
Computer & Data Processing Services |
| 3.4 | % | 18,344 |
| |
Radio, Television & Computer Stores |
| 3.0 | % | 16,011 |
| |
Lumber & Other Building Materials |
| 2.9 | % | 15,648 |
| |
Business Services |
| 2.8 | % | 15,071 |
| |
Restaurants |
| 2.8 | % | 14,988 |
| |
Insurance |
| 2.7 | % | 14,407 |
| |
Wholesale Trade Durable Goods |
| 2.4 | % | 13,105 |
| |
Electric Services |
| 2.1 | % | 11,145 |
| |
Food & Kindred Products |
| 2.0 | % | 10,808 |
| |
Printing & Publishing |
| 2.0 | % | 10,690 |
| |
Electronic Components & Accessories |
| 2.0 | % | 10,613 |
| |
Health Services |
| 1.9 | % | 10,141 |
| |
Beer, Wine & Distilled Beverages |
| 1.9 | % | 10,032 |
| |
Commercial Banks |
| 1.8 | % | 9,979 |
| |
Electric, Gas & Sanitary Services |
| 1.7 | % | 9,342 |
| |
Industrial Machinery & Equipment |
| 1.6 | % | 8,551 |
| |
Shoe Stores |
| 1.5 | % | 8,297 |
| |
Pharmaceuticals |
| 1.5 | % | 8,059 |
| |
Metal Mining |
| 1.4 | % | 7,664 |
| |
Oil & Gas Extraction |
| 1.4 | % | 7,502 |
| |
Telecommunications |
| 1.4 | % | 7,398 |
| |
Aerospace |
| 1.4 | % | 7,351 |
| |
Holding & Other Investment Offices |
| 1.2 | % | 6,276 |
| |
Paper & Allied Products |
| 1.1 | % | 6,239 |
| |
Drug Stores & Proprietary Stores |
| 1.1 | % | 6,190 |
| |
Beverages |
| 1.1 | % | 6,169 |
| |
Personal Credit Institutions |
| 1.0 | % | 5,616 |
| |
Tobacco Products |
| 0.9 | % | 5,010 |
| |
Leather & Leather Products |
| 0.9 | % | 4,830 |
| |
Hotels & Other Lodging Places |
| 0.8 | % | 4,441 |
| |
Specialty- Real Estate |
| 0.8 | % | 4,421 |
| |
Petroleum Refining |
| 0.8 | % | 4,269 |
| |
Transportation Equipment |
| 0.8 | % | 4,117 |
| |
Textile Mill Products |
| 0.7 | % | 4,066 |
| |
Retail Trade |
| 0.7 | % | 4,028 |
| |
Public Administration |
| 0.7 | % | 3,954 |
| |
Food Stores |
| 0.7 | % | 3,595 |
| |
Communication |
| 0.6 | % | 3,490 |
| |
Real Estate |
| 0.6 | % | 3,183 |
| |
Department Stores |
| 0.5 | % | 2,803 |
| |
Misc. General Merchandise Stores |
| 0.5 | % | 2,562 |
| |
Amusement & Recreation Services |
| 0.4 | % | 2,406 |
| |
Stone, Clay & Glass Products |
| 0.4 | % | 2,317 |
| |
Motion Pictures |
| 0.4 | % | 2,015 |
| |
Furniture & Home Furnishings Stores |
| 0.3 | % | 1,772 |
| |
Instruments & Related Products |
| 0.3 | % | 1,629 |
| |
Manufacturing Industries |
| 0.3 | % | 1,519 |
| |
56
Air Transportation |
| 0.0 | % | 25 |
| |
Investment Securities, at value |
| 95.7 | % | 517,571 |
| |
Short-Term Investments |
| 5.7 | % | 30,837 |
| |
Total Investment Securities |
| 101.4 | % | $ | 548,408 |
|
57
TA IDEX Federated Market Opportunity
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 990.90 |
| 0.92 | % | $ | 4.54 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,020.23 |
| 0.92 | % | 4.61 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
58
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Africa |
| 9.4 | % |
Europe |
| 6.9 | % |
North America |
| 80.1 | % |
Pacific Rim |
| 3.6 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
59
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Principal |
| Value |
| ||
U.S. GOVERNMENT OBLIGATIONS (26.9%) |
|
|
|
|
| ||
United States (26.9%) |
|
|
|
|
| ||
U.S. Treasury Note |
|
|
|
|
| ||
4.75%, due 02/28/2009 |
| $ | 4,000 |
| $ | 4,006 |
|
3.50%, due 02/15/2010 |
| 8,000 |
| 7,784 |
| ||
Total U.S. Government Obligations (cost: $11,768) |
|
|
| 11,790 |
| ||
|
| Shares |
| Value |
|
COMMON STOCKS (33.3%) |
|
|
|
|
|
Canada (12.5%) |
|
|
|
|
|
Barrick Gold Corp. |
| 28,000 |
| 787 |
|
Canadian Oil Sands Trust |
| 14,000 |
| 382 |
|
Canetic Resources Trust |
| 32,000 |
| 429 |
|
EnCana Corp. |
| 9,600 |
| 503 |
|
Goldcorp, Inc.(†) |
| 51,000 |
| 1,241 |
|
Iamgold Corp. |
| 41,000 |
| 333 |
|
Meridian Gold, Inc.(‡) |
| 16,500 |
| 417 |
|
Pengrowth Energy Trust |
| 28,000 |
| 484 |
|
Penn West Energy Trust |
| 19,000 |
| 569 |
|
Petro |
| 7,000 |
| 313 |
|
France (1.7%) |
|
|
|
|
|
Sanofi-Aventis |
| 8,000 |
| 737 |
|
Japan (2.4%) |
|
|
|
|
|
NTT DoCoMo, Inc. |
| 244 |
| 415 |
|
Shinsei Bank, Ltd. |
| 150,000 |
| 647 |
|
South Africa (6.6%) |
|
|
|
|
|
AngloGold Ashanti, Ltd., ADR |
| 19,200 |
| 856 |
|
Gold Fields, Ltd., Sponsored ADR(†) |
| 100,000 |
| 1,797 |
|
Harmony Gold Mining Co., Ltd., ADR(†)(‡) |
| 14,000 |
| 222 |
|
Switzerland (0.8%) |
|
|
|
|
|
Swisscom AG |
| 1,000 |
| 353 |
|
United States (9.3%) |
|
|
|
|
|
Anadarko Petroleum Corp. |
| 9,500 |
| 443 |
|
BJ Services Co. |
| 14,500 |
| 416 |
|
Cimarex Energy Co. |
| 8,600 |
| 339 |
|
Newmont Mining Corp. |
| 35,300 |
| 1,472 |
|
Patterson-UTI Energy, Inc. |
| 20,000 |
| 488 |
|
Pogo Producing Co. |
| 18,900 |
| 912 |
|
Total Common Stocks (cost: $14,058) |
|
|
| 14,555 |
|
| Contracts(u) |
| Value |
| |
PURCHASED OPTIONS (1.7%) |
|
|
|
|
|
Put Options (1.7%) |
|
|
|
|
|
iShares MSCI Emerging Markets Index |
| 450 |
| 468 |
|
Put Strike $130.00 |
|
|
|
|
|
Expires 06/16/2007 |
|
|
|
|
|
Nasdaq 100 Index |
| 260 |
| 55 |
|
Put Strike $48.00 |
|
|
|
|
|
Expires 06/16/2007 |
|
|
|
|
|
Russell 2000 Index |
| 45 |
| 209 |
|
Put Strike $850.00 |
|
|
|
|
|
Expires 08/19/2007 |
|
|
|
|
|
Total Purchased Options (cost: $707) |
|
|
| 732 |
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (7.9%) |
|
|
|
|
|
Debt (7.9%) |
|
|
|
|
|
Bank Notes (0.5%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 108 |
| 108 |
|
5.27%, due 06/18/2007(*) |
| 108 |
| 108 |
|
Commercial Paper (1.7%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 43 |
| 43 |
|
60
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 42 |
| 42 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 29 |
| 29 |
|
5.29%, due 06/13/2007 |
| 21 |
| 21 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 21 |
| 21 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 21 |
| 21 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 22 |
| 22 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 22 |
| 22 |
|
5.28%, due 05/24/2007 |
| 22 |
| 22 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 43 |
| 43 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 42 |
| 42 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 43 |
| 43 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 43 |
| 43 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 85 |
| 85 |
|
5.30%, due 05/29/2007 |
| 22 |
| 22 |
|
5.29%, due 05/31/2007 |
| 22 |
| 22 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 22 |
| 22 |
|
5.29%, due 05/17/2007 |
| 22 |
| 22 |
|
5.28%, due 06/01/2007 |
| 22 |
| 22 |
|
5.29%, due 06/19/2007 |
| 28 |
| 28 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 32 |
| 32 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 22 |
| 22 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 43 |
| 43 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 22 |
| 22 |
|
Euro Dollar Overnight (1.0%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 22 |
| 22 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 43 |
| 43 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 43 |
| 43 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 43 |
| 43 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 43 |
| 43 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 43 |
| 43 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 43 |
| 43 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 22 |
| 22 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 43 |
| 43 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 82 |
| 82 |
|
Euro Dollar Terms (2.9%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 43 |
| 43 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 22 |
| 22 |
|
61
Bank of Nova Scotia |
|
|
|
|
| |
5.28%, due 05/09/2007 |
| 30 |
| 30 |
| |
Barclays |
|
|
|
|
| |
5.29%, due 05/07/2007 |
| 43 |
| 43 |
| |
5.30%, due 05/16/2007 |
| 43 |
| 43 |
| |
5.29%, due 05/21/2007 |
| 22 |
| 22 |
| |
5.30%, due 06/04/2007 |
| 22 |
| 22 |
| |
5.29%, due 06/08/2007 |
| 43 |
| 43 |
| |
Calyon |
|
|
|
|
| |
5.30%, due 05/17/2007 |
| 22 |
| 22 |
| |
5.31%, due 05/24/2007 |
| 43 |
| 43 |
| |
Canadian Imperial Bank of Commerce |
|
|
|
|
| |
5.28%, due 05/16/2007 |
| 65 |
| 65 |
| |
5.28%, due 05/29/2007 |
| 22 |
| 22 |
| |
Credit Suisse First Boston Corp. |
|
|
|
|
| |
5.30%, due 05/17/2007 |
| 43 |
| 43 |
| |
Deutsche Bank |
|
|
|
|
| |
5.30%, due 05/15/2007 |
| 43 |
| 43 |
| |
Fortis Bank |
|
|
|
|
| |
5.28%, due 05/21/2007 |
| 65 |
| 65 |
| |
5.28%, due 05/25/2007 |
| 65 |
| 65 |
| |
5.30%, due 06/25/2007 |
| 43 |
| 43 |
| |
HBOS Halifax Bank of Scotland |
|
|
|
|
| |
5.30%, due 06/13/2007 |
| 65 |
| 65 |
| |
Royal Bank of Scotland |
|
|
|
|
| |
5.30%, due 05/08/2007 |
| 43 |
| 43 |
| |
5.30%, due 05/09/2007 |
| 22 |
| 22 |
| |
5.31%, due 05/25/2007 |
| 43 |
| 43 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
| |
5.28%, due 05/15/2007 |
| 22 |
| 22 |
| |
Swedbank AB |
|
|
|
|
| |
5.30%, due 05/11/2007 |
| 43 |
| 43 |
| |
Toronto Dominion Bank |
|
|
|
|
| |
5.28%, due 05/10/2007 |
| 43 |
| 43 |
| |
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 43 |
| 43 |
| |
5.29%, due 06/12/2007 |
| 86 |
| 86 |
| |
5.29%, due 06/15/2007 |
| 65 |
| 65 |
| |
5.29%, due 06/18/2007 |
| 108 |
| 108 |
| |
Repurchase Agreements (1.8%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $120 on 05/01/2007 |
| 120 |
| 120 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $475 on 05/01/2007 |
| 475 |
| 475 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $208 on 05/01/2007 |
| 208 |
| 208 |
| |
Total Security Lending Collateral (cost: $3,464) |
|
|
| 3,464 |
| |
Total Investment Securities (cost: $29,997)(#) |
|
|
| $ | 30,541 |
|
NOTES TO SCHEDULE OF INVESTMENTS: | ||
|
|
|
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $3,329. |
(‡) |
| Non-income producing. |
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. |
62
(††) |
| Cash collateral for the Repurchase Agreements, valued at $824, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. |
(u) |
| Contract amounts are not in thousands. |
(#) |
| Aggregate cost for federal income tax purposes is $30,054. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $996 and $509, respectively. Net unrealized appreciation for tax purposes is $487. |
DEFINITIONS: | |
| |
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 April 30, 2007, these securities aggregated $648 or 1.5% of the net assets of the Fund. |
ADR | American Depositary Receipt |
The notes to the financial statements are an integral part of this report.
63
|
| Percentage of |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
U.S. Government & Agency |
| 26.9 | % | $ | 11,790 |
|
Metal Mining |
| 16.3 | % | 7,125 |
| |
Oil & Gas Extraction |
| 12.1 | % | 5,278 |
| |
Telecommunications |
| 1.7 | % | 768 |
| |
Pharmaceuticals |
| 1.7 | % | 737 |
| |
Put Options |
| 1.7 | % | 732 |
| |
Commercial Banks |
| 1.5 | % | 647 |
| |
Investment Securities, at value |
| 61.9 | % | 27,077 |
| |
Short-Term Investments |
| 7.9 | % | 3,464 |
| |
Total Investment Securities |
| 69.8 | % | $ | 30,541 |
|
64
TA IDEX JPMorgan International Bond
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,027.90 |
| 0.61 | % | $ | 3.07 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,021.77 |
| 0.61 | % | 3.06 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
65
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Europe |
| 67.8 | % |
North America |
| 8.8 | % |
Pacific Rim |
| 23.4 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
66
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
|
|
| Principal |
| Value |
| ||
FOREIGN GOVERNMENT OBLIGATIONS (64.2%) |
|
|
|
|
|
|
| ||
Australia (0.3%) |
|
|
|
|
|
|
| ||
New South Wales Treasury Corp. |
|
|
|
|
|
|
| ||
5.50%, due 03/01/2017 |
| AUD |
| $ | 2,700 |
| $ | 2,137 |
|
Belgium (4.7%) |
|
|
|
|
|
|
| ||
Kingdom of Belgium |
|
|
|
|
|
|
| ||
5.00%, due 09/28/2011 |
| EUR |
| 19,300 |
| 27,226 |
| ||
8.00%, due 03/28/2015 |
| EUR |
| 3,950 |
| 6,755 |
| ||
Canada (3.4%) |
|
|
|
|
|
|
| ||
Canada Government |
|
|
|
|
|
|
| ||
3.75%, due 09/01/2011 |
| CAD |
| 10,200 |
| 9,097 |
| ||
5.75%, due 06/01/2033 |
| CAD |
| 13,845 |
| 15,587 |
| ||
Denmark (0.3%) |
|
|
|
|
|
|
| ||
Kingdom of Denmark |
|
|
|
|
|
|
| ||
6.00%, due 11/15/2009 |
| DKK |
| 10,920 |
| 2,085 |
| ||
France (3.7%) |
|
|
|
|
|
|
| ||
Caisse d’Amortissement de la Dette Sociale |
|
|
|
|
|
|
| ||
3.75%, due 10/25/2020 |
| EUR |
| 4,520 |
| 5,784 |
| ||
French Republic |
|
|
|
|
|
|
| ||
Zero coupon, due 08/02/2007(d) |
| EUR |
| 2,600 |
| 3,514 |
| ||
3.13%, due 07/12/2010 |
| EUR |
| 8,900 |
| 11,758 |
| ||
8.50%, due 04/25/2023 |
| EUR |
| 500 |
| 1,008 |
| ||
4.75%, due 04/25/2035 |
| EUR |
| 2,892 |
| 4,196 |
| ||
Ireland (1.2%) |
|
|
|
|
|
|
| ||
Irish Government |
|
|
|
|
|
|
| ||
4.50%, due 04/18/2020 |
| EUR |
| 6,000 |
| 8,381 |
| ||
Italy (5.1%) |
|
|
|
|
|
|
| ||
Italian Republic |
|
|
|
|
|
|
| ||
5.25%, due 08/01/2017 |
| EUR |
| 15,200 |
| 22,304 |
| ||
5.00%, due 08/01/2034 |
| EUR |
| 9,660 |
| 13,986 |
| ||
Japan (22.8%) |
|
|
|
|
|
|
| ||
Development Bank of Japan |
|
|
|
|
|
|
| ||
1.60%, due 06/20/2014 |
| JPY |
| 510,000 |
| 4,321 |
| ||
Japan Finance Corp. for Municipal Enterprises |
|
|
|
|
|
|
| ||
1.55%, due 02/21/2012 |
| JPY |
| 3,656,000 |
| 31,066 |
| ||
Japan Government |
|
|
|
|
|
|
| ||
1.90%, due 06/21/2010 |
| JPY |
| 3,398,000 |
| 29,192 |
| ||
1.20%, due 03/20/2012 |
| JPY |
| 2,635,000 |
| 22,080 |
| ||
1.30%, due 03/20/2015 |
| JPY |
| 3,756,450 |
| 31,039 |
| ||
1.10%, due 09/10/2016 |
| JPY |
| 516,360 |
| 4,325 |
| ||
1.05%, due 06/20/2023 |
| JPY |
| 2,311,000 |
| 16,717 |
| ||
2.10%, due 09/20/2024 |
| JPY |
| 465,000 |
| 3,963 |
| ||
1.90%, due 06/20/2025 |
| JPY |
| 860,000 |
| 7,079 |
| ||
2.30%, due 03/19/2026 |
| JPY |
| 500,000 |
| 4,298 |
| ||
2.10%, due 12/20/2026 |
| JPY |
| 779,000 |
| 6,569 |
| ||
2.50%, due 09/20/2035 |
| JPY |
| 378,000 |
| 3,312 |
| ||
Netherlands (4.2%) |
|
|
|
|
|
|
| ||
Kingdom of the Netherlands |
|
|
|
|
|
|
| ||
4.00%, due 01/15/2037 |
| EUR |
| 23,450 |
| 30,178 |
| ||
Spain (3.7%) |
|
|
|
|
|
|
| ||
Kingdom of Spain |
|
|
|
|
|
|
| ||
5.40%, due 07/30/2011 |
| EUR |
| 18,500 |
| 26,443 |
| ||
Sweden (1.0%) |
|
|
|
|
|
|
| ||
Kingdom of Sweden |
|
|
|
|
|
|
| ||
5.50%, due 10/08/2012 |
| SEK |
| 47,500 |
| 7,539 |
| ||
United Kingdom (13.8%) |
|
|
|
|
|
|
| ||
United Kingdom |
|
|
|
|
|
|
| ||
4.00%, due 03/07/2009 |
| GBP |
| 33,100 |
| 64,470 |
| ||
8.00%, due 06/07/2021 |
| GBP |
| 2,260 |
| 5,909 |
| ||
4.25%, due 06/07/2032 |
| GBP |
| 3,800 |
| 7,219 |
| ||
4.75%, due 12/07/2038 |
| GBP |
| 10,250 |
| 21,422 |
| ||
Total Foreign Government Obligations (cost: $451,307) |
|
|
|
|
| 460,959 |
| ||
67
MORTGAGE-BACKED SECURITIES (0.5%) |
|
|
|
|
|
|
|
Spain (0.5%) |
|
|
|
|
|
|
|
UCI, Series 15, Class A, Reg S |
|
|
|
|
|
|
|
4.04%, due 12/18/2048(*) |
| EUR |
| 2,495 |
| 3,406 |
|
Total Mortgage-Backed Securities (cost: $3,142) |
|
|
|
|
| 3,406 |
|
ASSET-BACKED SECURITIES (0.3%) |
|
|
|
|
|
|
|
Spain (0.3%) |
|
|
|
|
|
|
|
Fondo de Titulizacion de Activos Santander Auto, Series 1, Class A |
|
|
|
|
|
|
|
3.90%, due 11/25/2021(*) |
| EUR |
| 1,430 |
| 1,950 |
|
Total Asset-Backed Securities (cost: $1,820) |
|
|
|
|
| 1,950 |
|
CORPORATE DEBT SECURITIES (28.5%) |
|
|
|
|
|
|
|
France (5.4%) |
|
|
|
|
|
|
|
Cie Financement Foncier |
|
|
|
|
|
|
|
3.63%, due 01/28/2008 |
| EUR |
| 3,450 |
| 4,689 |
|
Compagnie de Financement Foncier, Series E, (MTN) |
|
|
|
|
|
|
|
1.25%, due 12/01/2011 |
| JPY |
| 2,230,000 |
| 18,537 |
|
Dexia Municipal Agency, Series E |
|
|
|
|
|
|
|
3.50%, due 09/21/2009 |
| EUR |
| 11,530 |
| 15,471 |
|
Germany (5.7%) |
|
|
|
|
|
|
|
Bayerische Landesbank |
|
|
|
|
|
|
|
1.40%, due 04/22/2013 |
| JPY |
| 1,508,000 |
| 12,638 |
|
Eurohypo AG, (MTN) |
|
|
|
|
|
|
|
3.75%, due 04/11/2011 |
| EUR |
| 14,800 |
| 19,831 |
|
Kreditanstalt fuer Wiederaufbau |
|
|
|
|
|
|
|
5.50%, due 12/07/2015 |
| GBP |
| 2,150 |
| 4,314 |
|
Kreditanstalt fuer Wiederaufbau, Series E |
|
|
|
|
|
|
|
2.50%, due 11/17/2008 |
| EUR |
| 2,500 |
| 3,325 |
|
Landwirtschaftliche Rentenbank, Series E |
|
|
|
|
|
|
|
1.38%, due 04/25/2013 |
| JPY |
| 101,000 |
| 845 |
|
Ireland (1.7%) |
|
|
|
|
|
|
|
Depfa ACS Bank, Series E, Note, (MTN) |
|
|
|
|
|
|
|
1.65%, due 12/20/2016 |
| JPY |
| 800,000 |
| 6,694 |
|
Ulster Bank Finance PLC, Series E, Guaranteed Senior Note, (MTN) |
|
|
|
|
|
|
|
4.00%, due 03/29/2011(*) |
| EUR |
| 4,000 |
| 5,458 |
|
Spain (6.8%) |
|
|
|
|
|
|
|
AyT Cedulas Cajas VII Fondo de Titulizacion de Activos |
|
|
|
|
|
|
|
4.00%, due 06/23/2011 |
| EUR |
| 15,700 |
| 21,168 |
|
Banco Bilbao Vizcaya Argentaria SA |
|
|
|
|
|
|
|
4.25%, due 09/26/2007 |
| EUR |
| 16,800 |
| 22,921 |
|
La Caja de Ahorros y Pensiones de Barcelona |
|
|
|
|
|
|
|
3.25%, due 10/05/2015 |
| EUR |
| 3,900 |
| 4,894 |
|
Supra National (4.6%) |
|
|
|
|
|
|
|
European Investment Bank |
|
|
|
|
|
|
|
1.40%, due 06/20/2017 |
| JPY |
| 2,646,000 |
| 21,761 |
|
European Investment Bank, (MTN) |
|
|
|
|
|
|
|
5.63%, due 10/15/2010 |
| EUR |
| 7,900 |
| 11,259 |
|
United Kingdom (4.3%) |
|
|
|
|
|
|
|
Barclays Bank PLC |
|
|
|
|
|
|
|
4.15%, due 04/20/2016 |
| EUR |
| 4,000 |
| 5,456 |
|
HBOS Treasury Services PLC, Series E, (MTN) |
|
|
|
|
|
|
|
3.99%, due 06/14/2012(*) |
| EUR |
| 4,000 |
| 5,463 |
|
Network Rail Infra Finance |
|
|
|
|
|
|
|
4.75%, due 11/29/2035 |
| GBP |
| 2,530 |
| 5,014 |
|
Network Rail Infrastructure Finance PLC, Series E, (MTN) |
|
|
|
|
|
|
|
4.38%, due 01/18/2011 |
| GBP |
| 5,870 |
| 11,263 |
|
Network Rail MTN Finance PLC, Series E |
|
|
|
|
|
|
|
4.88%, due 03/06/2009 |
| GBP |
| 2,100 |
| 4,137 |
|
Total Corporate Debt Securities (cost: $195,197) |
|
|
|
|
| 205,138 |
|
SHORT-TERM OBLIGATIONS (5.1%) |
|
|
|
|
|
|
|
United States (5.1%) |
|
|
|
|
|
|
|
Barclays Bank PLC Time Deposit |
|
|
|
|
|
|
|
5.30%, due 05/01/2007 |
|
|
| 35,500 |
| 35,500 |
|
68
Rabobank Nederland NV/London Time Deposit |
|
|
|
|
|
|
| |
5.29%, due 05/01/2007 |
|
|
| 1,500 |
| 1,500 |
| |
Total Short-Term Obligations (cost: $37,000) |
|
|
|
|
| 37,000 |
| |
Total Investment Securities (cost: $688,466)(#) |
|
|
|
|
| $ | 708,453 |
|
NOTES TO SCHEDULE OF INVESTMENTS:
(d) |
| At April 30, 2007, all or a portion of this security is segregated with the custodian to cover margin requirements for open futures contracts. The value of all securities segregated at April 30, 2007 is $2,573. |
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. |
(#) |
| Aggregate cost for federal income tax purposes is $689,212. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $22,136 and $2,895, respectively. Net unrealized appreciation for tax purposes is $19,241. |
DEFINITIONS: | ||
| ||
AUD |
| Australian Dollar |
CAD |
| Canadian Dollar |
DKK |
| Danish Krone |
EUR |
| Euro |
GBP |
| Great British Pound |
JPY |
| Japanese Yen |
MTN |
| Medium-Term Note |
SEK |
| Swedish Krona |
The notes to the financial statements are an integral part of this report.
69
FUTURES CONTRACTS:
|
|
|
|
|
|
|
| Net Unrealized |
| ||
|
|
|
| Settlement |
|
|
| Appreciation |
| ||
|
| Contracts(u) |
| Date |
| Amount |
| (Depreciation) |
| ||
10 Year Canadian Bond |
| 507 |
| 06/29/2007 |
| $ | 51,854 |
| $ | (430 | ) |
10 Year Japan Bond |
| 13 |
| 06/20/2007 |
| 14,616 |
| 17 |
| ||
Euro-BOBL |
| 133 |
| 06/12/2007 |
| 19,562 |
| (196 | ) | ||
Euro-Bund |
| (292 | ) | 06/10/2007 |
| (45,490 | ) | 437 |
| ||
Euro-Schatz |
| 144 |
| 06/30/2007 |
| 20,269 |
| 5 |
| ||
Long Gilt |
| 118 |
| 06/30/2007 |
| 25,290 |
| (272 | ) | ||
|
|
|
|
|
| $ | 86,101 |
| $ | (439 | ) |
(u) Contract amounts are not in thousands.
70
FORWARD FOREIGN CURRENCY CONTRACTS:
Currency |
| Bought |
| Settlement |
| Amount in |
| Net Unrealized Appreciation (Depreciation) |
| ||
Australian Dollar |
| 6,816 |
| 05/23/2007 |
| $ | 5,456 |
| $ | 215 |
|
Australian Dollar |
| (4,192 | ) | 05/23/2007 |
| (3,379 | ) | (108 | ) | ||
British Pound Sterling |
| 2,466 |
| 05/23/2007 |
| 4,897 |
| 35 |
| ||
British Pound Sterling |
| (31,470 | ) | 05/23/2007 |
| (61,935 | ) | (994 | ) | ||
Canadian Dollar |
| 832 |
| 05/23/2007 |
| 743 |
| 11 |
| ||
Canadian Dollar |
| (23,966 | ) | 05/23/2007 |
| (20,833 | ) | (867 | ) | ||
Danish Krone |
| 27,945 |
| 05/23/2007 |
| 5,023 |
| 99 |
| ||
Euro Dollar |
| 45,317 |
| 05/23/2007 |
| 61,060 |
| 837 |
| ||
Euro Dollar |
| (32,873 | ) | 05/23/2007 |
| (44,148 | ) | (752 | ) | ||
Japanese Yen |
| 3,640 |
| 05/07/2007 |
| 30 |
| — | (o) | ||
Japanese Yen |
| 8,253,511 |
| 05/23/2007 |
| 70,474 |
| (1,222 | ) | ||
Japanese Yen |
| (4,835,929 | ) | 05/23/2007 |
| (41,172 | ) | 596 |
| ||
New Zealand Dollar |
| 4,130 |
| 05/23/2007 |
| 2,964 |
| 100 |
| ||
Norwegian Krone |
| 10,529 |
| 05/23/2007 |
| 1,730 |
| 41 |
| ||
Singapore Dollar |
| 5,222 |
| 05/23/2007 |
| 3,453 |
| (12 | ) | ||
Swedish Krona |
| 141,466 |
| 05/23/2007 |
| 20,380 |
| 731 |
| ||
Swedish Krona |
| (5,321 | ) | 05/23/2007 |
| (772 | ) | (22 | ) | ||
Swiss Franc |
| 27,345 |
| 05/23/2007 |
| 22,668 |
| 32 |
| ||
Swiss Franc |
| (1,670 | ) | 05/23/2007 |
| (1,386 | ) | (1 | ) | ||
|
|
|
|
|
| $ | 25,253 |
| $ | (1,281 | ) |
FORWARD FOREIGN CROSS CURRENCY CONTRACTS:
|
|
|
|
|
|
|
|
|
| Net Unrealized |
|
|
|
|
|
|
|
|
| Settlement |
| Appreciation |
|
Currency Bought |
|
|
| Currency Sold |
| Date |
| (Depreciation) |
| ||
British Pound Sterling |
| 7,386 |
| Euro Dollar |
| 10,844 |
| 5/23/2007 |
| (42 | ) |
British Pound Sterling |
| 892 |
| Swiss Franc |
| 2,118 |
| 5/23/2007 |
| 25 |
|
Canadian Dollar |
| 845 |
| Swedish Krona |
| 5,082 |
| 5/23/2007 |
| 7 |
|
Euro Dollar |
| 3,199 |
| British Pound Sterling |
| 2,178 |
| 5/23/2007 |
| 14 |
|
Euro Dollar |
| 7,490 |
| Japanese Yen |
| 1,187,887 |
| 5/23/2007 |
| 263 |
|
Euro Dollar |
| 1,074 |
| New Zealand Dollar |
| 2,019 |
| 5/23/2007 |
| (30 | ) |
Euro Dollar |
| 720 |
| Norwegian Krone |
| 5,863 |
| 5/23/2007 |
| (2 | ) |
Euro Dollar |
| 618 |
| Swedish Krona |
| 5,750 |
| 5/23/2007 |
| (13 | ) |
Euro Dollar |
| 4,102 |
| Swiss Franc |
| 6,593 |
| 5/23/2007 |
| 129 |
|
Japanese Yen |
| 382,775 |
| Australian Dollar |
| 4,049 |
| 5/23/2007 |
| (157 | ) |
Japanese Yen |
| 839,875 |
| British Pound Sterling |
| 3,599 |
| 5/23/2007 |
| (149 | ) |
Japanese Yen |
| 603,197 |
| Euro Dollar |
| 3,895 |
| 5/23/2007 |
| (258 | ) |
Japanese Yen |
| 317,652 |
| New Zealand Dollar |
| 3,733 |
| 5/23/2007 |
| (104 | ) |
Japanese Yen |
| 175,716 |
| Swedish Krona |
| 10,496 |
| 5/23/2007 |
| (92 | ) |
71
Japanese Yen |
| 669,699 |
| Swiss Franc |
| 6,882 |
| 5/23/2007 |
| (94 | ) |
New Zealand Dollar |
| 1,694 |
| Canadian Dollar |
| 1,401 |
| 5/23/2007 |
| (11 | ) |
New Zealand Dollar |
| 6,346 |
| Japanese Yen |
| 549,427 |
| 5/23/2007 |
| 97 |
|
New Zealand Dollar |
| 1,392 |
| Norwegian Krone |
| 6,149 |
| 5/23/2007 |
| (2 | ) |
Norwegian Krone |
| 12,214 |
| Euro Dollar |
| 1,506 |
| 5/23/2007 |
| (1 | ) |
Norwegian Krone |
| 33,183 |
| Swedish Krona |
| 37,961 |
| 5/23/2007 |
| (82 | ) |
Swedish Krona |
| 18,032 |
| Japanese Yen |
| 303,198 |
| 5/23/2007 |
| 147 |
|
Swedish Krona |
| 17,923 |
| Norwegian Krone |
| 15,583 |
| 5/23/2007 |
| 53 |
|
Swiss Franc |
| 2,541 |
| Euro Dollar |
| 1,578 |
| 5/23/2007 |
| (46 | ) |
|
|
|
|
|
|
|
|
|
| (348 | ) |
(o) Value is less than $1.
72
|
| Percentage of |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Sovereign Government |
| 64.2 | % | $ | 460,959 |
|
Commercial Banks |
| 30.7 | % | 220,970 |
| |
Mortgage Bankers & Brokers |
| 2.9 | % | 21,168 |
| |
Mortgage-Backed |
| 0.5 | % | 3,406 |
| |
Asset-Backed |
| 0.3 | % | 1,950 |
| |
Investment Securities, at value |
| 98.6 | % | 708,453 |
| |
Total Investment Securities |
| 98.6 | % | $ | 708,453 |
|
73
TA IDEX JPMorgan Mid Cap Value
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,102.20 |
| 0.87 | % | $ | 4.53 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,020.48 |
| 0.87 | % | 4.36 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
74
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Basic Materials |
| 4.8 | % |
Communications |
| 8.0 | % |
Consumer Cyclical |
| 13.6 | % |
Consumer Non-Cyclical |
| 13.0 | % |
Diversified |
| 0.5 | % |
Energy |
| 6.4 | % |
Financial |
| 22.6 | % |
Industrial |
| 11.9 | % |
Other |
| 8.3 | % |
Technology |
| 1.0 | % |
Utilities |
| 9.9 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
75
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (95.4%) |
|
|
|
|
| |
Aerospace (0.3%) |
|
|
|
|
| |
Alliant Techsystems, Inc.(‡)(†) |
| 8,700 |
| $ | 810 |
|
Apparel & Accessory Stores (1.0%) |
|
|
|
|
| |
Limited Brands, Inc. |
| 97,900 |
| 2,699 |
| |
Apparel Products (2.6%) |
|
|
|
|
| |
Columbia Sportswear Co.(†) |
| 35,400 |
| 2,216 |
| |
V.F. Corp. |
| 55,100 |
| 4,838 |
| |
Automotive (3.1%) |
|
|
|
|
| |
Genuine Parts Co. |
| 89,000 |
| 4,397 |
| |
Harsco Corp. |
| 31,200 |
| 1,591 |
| |
Oshkosh Truck Corp. |
| 44,500 |
| 2,489 |
| |
Automotive Dealers (2.5%) |
|
|
|
|
| |
AutoNation, Inc.(‡) |
| 117,061 |
| 2,393 |
| |
AutoZone, Inc.(‡) |
| 33,200 |
| 4,417 |
| |
Beverages (2.2%) |
|
|
|
|
| |
Brown-Forman Corp.-Class B(†) |
| 57,600 |
| 3,682 |
| |
Constellation Brands, Inc.-Class A(‡)(†) |
| 96,650 |
| 2,166 |
| |
Chemicals & Allied Products (3.7%) |
|
|
|
|
| |
Albemarle Corp. |
| 62,472 |
| 2,652 |
| |
Clorox Co. |
| 49,000 |
| 3,287 |
| |
Lauder (Estee) Cos., Inc. (The)-Class A |
| 25,700 |
| 1,322 |
| |
PPG Industries, Inc. |
| 35,700 |
| 2,627 |
| |
Commercial Banks (7.4%) |
|
|
|
|
| |
Compass Bancshares, Inc. |
| 18,400 |
| 1,255 |
| |
Cullen/Frost Bankers, Inc. |
| 46,400 |
| 2,374 |
| |
M&T Bank Corp. |
| 36,200 |
| 4,031 |
| |
Northern Trust Corp. |
| 36,400 |
| 2,291 |
| |
Synovus Financial Corp. |
| 123,500 |
| 3,898 |
| |
TCF Financial Corp. |
| 40,300 |
| 1,091 |
| |
Wilmington Trust Corp. |
| 58,100 |
| 2,351 |
| |
Zions Bancorp |
| 32,500 |
| 2,659 |
| |
Communication (1.0%) |
|
|
|
|
| |
Cablevision Systems Corp.-Class A(‡) |
| 82,200 |
| 2,695 |
| |
Computer & Data Processing Services (1.0%) |
|
|
|
|
| |
NCR Corp.(‡) |
| 53,200 |
| 2,681 |
| |
Department Stores (1.2%) |
|
|
|
|
| |
TJX Cos., Inc. |
| 111,200 |
| 3,101 |
| |
Electric Services (6.8%) |
|
|
|
|
| |
American Electric Power Co., Inc. |
| 92,300 |
| 4,635 |
| |
FirstEnergy Corp. |
| 58,300 |
| 3,990 |
| |
PPL Corp. |
| 52,500 |
| 2,290 |
| |
SCANA Corp. |
| 56,200 |
| 2,446 |
| |
Westar Energy, Inc. |
| 87,200 |
| 2,374 |
| |
Xcel Energy, Inc.(†) |
| 106,000 |
| 2,554 |
| |
Electric, Gas & Sanitary Services (2.6%) |
|
|
|
|
| |
PG&E Corp. |
| 80,000 |
| 4,048 |
| |
Republic Services, Inc. |
| 104,900 |
| 2,930 |
| |
Electrical Goods (2.1%) |
|
|
|
|
| |
Arrow Electronics, Inc.(‡) |
| 73,100 |
| 2,889 |
| |
Carlisle Cos., Inc. |
| 65,200 |
| 2,685 |
| |
Electronic & Other Electric Equipment (1.1%) |
|
|
|
|
| |
Ametek, Inc. |
| 80,850 |
| 2,933 |
| |
Electronic Components & Accessories (0.7%) |
|
|
|
|
| |
Amphenol Corp.-Class A |
| 56,100 |
| 1,970 |
| |
Fabricated Metal Products (2.4%) |
|
|
|
|
| |
Crane Co.(†) |
| 43,700 |
| 1,858 |
| |
Fortune Brands, Inc. |
| 55,900 |
| 4,478 |
| |
Food & Kindred Products (0.8%) |
|
|
|
|
| |
Del Monte Foods Co. |
| 111,700 |
| 1,296 |
| |
WM Wrigley Jr. Co. |
| 15,000 |
| 883 |
| |
Gas Production & Distribution (6.5%) |
|
|
|
|
| |
Energen Corp. |
| 60,600 |
| 3,397 |
| |
Kinder Morgan, Inc. |
| 39,000 |
| 4,156 |
| |
76
Oneok, Inc. |
| 17,300 |
| 837 |
|
Questar Corp. |
| 36,700 |
| 3,565 |
|
UGI Corp. |
| 70,300 |
| 1,994 |
|
Williams Cos., Inc. (The) |
| 121,100 |
| 3,572 |
|
Health Services (3.4%) |
|
|
|
|
|
Community Health Systems, Inc.(‡) |
| 71,700 |
| 2,639 |
|
Coventry Health Care, Inc.(‡) |
| 105,150 |
| 6,081 |
|
Omnicare, Inc.(†) |
| 13,300 |
| 441 |
|
Holding & Other Investment Offices (4.2%) |
|
|
|
|
|
Affiliated Managers Group(‡)(†) |
| 7,100 |
| 835 |
|
istar Financial, Inc. REIT |
| 69,100 |
| 3,311 |
|
Plum Creek Timber Co., Inc. REIT |
| 31,700 |
| 1,258 |
|
Rayonier, Inc. REIT |
| 83,085 |
| 3,603 |
|
Vornado Realty Trust REIT(†) |
| 20,300 |
| 2,408 |
|
Hotels & Other Lodging Places (1.0%) |
|
|
|
|
|
Hilton Hotels Corp. |
| 81,500 |
| 2,771 |
|
Industrial Machinery & Equipment (1.8%) |
|
|
|
|
|
American Standard Cos., Inc. |
| 34,700 |
| 1,911 |
|
Dover Corp. |
| 61,600 |
| 2,964 |
|
Insurance (10.0%) |
|
|
|
|
|
Assurant, Inc.(†) |
| 118,100 |
| 6,794 |
|
Cincinnati Financial Corp. |
| 89,255 |
| 4,038 |
|
Everest Re Group, Ltd. |
| 35,800 |
| 3,603 |
|
IPC Holdings, Ltd. |
| 1,900 |
| 57 |
|
MGIC Investment Corp. |
| 33,100 |
| 2,039 |
|
Old Republic International Corp. |
| 177,650 |
| 3,779 |
|
OneBeacon Insurance Group, Ltd. |
| 72,500 |
| 1,765 |
|
Principal Financial Group |
| 40,700 |
| 2,584 |
|
W.R. Berkley Corp. |
| 71,900 |
| 2,336 |
|
Metal Cans & Shipping Containers (1.3%) |
|
|
|
|
|
Ball Corp. |
| 71,300 |
| 3,614 |
|
Mining (1.1%) |
|
|
|
|
|
Vulcan Materials Co. |
| 24,400 |
| 3,018 |
|
Oil & Gas Extraction (2.2%) |
|
|
|
|
|
Devon Energy Corp. |
| 53,100 |
| 3,869 |
|
Helix Energy Solutions Group, Inc.(‡) |
| 55,100 |
| 2,108 |
|
Pharmaceuticals (2.3%) |
|
|
|
|
|
Henry Schein, Inc.(‡) |
| 16,025 |
| 835 |
|
Sigma-Aldrich Corp. |
| 77,800 |
| 3,274 |
|
Warner Chilcott, Ltd.-Class A(‡) |
| 129,700 |
| 2,185 |
|
Printing & Publishing (1.6%) |
|
|
|
|
|
McClatchy Co.-Class A(†) |
| 35,800 |
| 1,035 |
|
Washington Post-Class B |
| 4,260 |
| 3,169 |
|
Radio & Television Broadcasting (1.6%) |
|
|
|
|
|
Clear Channel Communications, Inc. |
| 65,400 |
| 2,317 |
|
Clear Channel Outdoor Holdings, Inc.-Class A(‡)(†) |
| 42,973 |
| 1,227 |
|
Liberty Media Holding Corp.-Interactive-Class A(‡) |
| 33,700 |
| 844 |
|
Railroads (0.7%) |
|
|
|
|
|
Norfolk Southern Corp. |
| 37,800 |
| 2,012 |
|
Real Estate (1.9%) |
|
|
|
|
|
Brookfield Properties Co. |
| 75,700 |
| 3,109 |
|
Forest City Enterprises, Inc.-Class A |
| 31,850 |
| 2,128 |
|
Residential Building Construction (0.5%) |
|
|
|
|
|
Walter Industries, Inc. |
| 48,700 |
| 1,447 |
|
Restaurants (2.0%) |
|
|
|
|
|
Applebees International, Inc. |
| 71,100 |
| 1,933 |
|
Burger King Holdings, Inc. |
| 60,800 |
| 1,427 |
|
OSI Restaurant Partners, Inc. |
| 51,900 |
| 2,066 |
|
Retail Trade (1.3%) |
|
|
|
|
|
Tiffany & Co.(†) |
| 74,600 |
| 3,558 |
|
Rubber & Misc. Plastic Products (0.7%) |
|
|
|
|
|
Jarden Corp.(‡)(†) |
| 43,600 |
| 1,837 |
|
Savings Institutions (0.6%) |
|
|
|
|
|
Peoples United Financial |
| 78,800 |
| 1,569 |
|
77
Security & Commodity Brokers (1.3%) |
|
|
|
|
|
E*TRADE Financial Corp.(‡) |
| 84,200 |
| 1,859 |
|
T. Rowe Price Group, Inc. |
| 31,900 |
| 1,585 |
|
Telecommunications (4.1%) |
|
|
|
|
|
CenturyTel, Inc. |
| 82,800 |
| 3,813 |
|
Citizens Communications Co.(†) |
| 51,300 |
| 799 |
|
Telephone & Data Systems, Inc. |
| 58,200 |
| 3,073 |
|
Windstream Corp. |
| 235,854 |
| 3,448 |
|
Water Transportation (0.8%) |
|
|
|
|
|
Teekay Shipping Corp. |
| 38,000 |
| 2,267 |
|
Wholesale Trade Nondurable Goods (2.0%) |
|
|
|
|
|
Dean Foods Co. |
| 32,100 |
| 1,169 |
|
SUPERVALU, Inc. |
| 89,300 |
| 4,099 |
|
Total Common Stocks (cost: $212,952) |
|
|
| 257,703 |
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (8.6%) |
|
|
|
|
|
Debt (8.6%) |
|
|
|
|
|
Bank Notes (0.5%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 723 |
| 723 |
|
5.27%, due 06/18/2007(*) |
| 723 |
| 723 |
|
Commercial Paper (1.9%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 289 |
| 289 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 280 |
| 280 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 192 |
| 192 |
|
5.29%, due 06/13/2007 |
| 144 |
| 144 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 144 |
| 144 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 144 |
| 144 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 145 |
| 145 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 145 |
| 145 |
|
5.28%, due 05/24/2007 |
| 145 |
| 145 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 289 |
| 289 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 283 |
| 283 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 289 |
| 289 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 289 |
| 289 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 572 |
| 572 |
|
5.30%, due 05/29/2007 |
| 145 |
| 145 |
|
5.29%, due 05/31/2007 |
| 145 |
| 145 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 145 |
| 145 |
|
5.29%, due 05/17/2007 |
| 145 |
| 145 |
|
5.28%, due 06/01/2007 |
| 145 |
| 145 |
|
5.29%, due 06/19/2007 |
| 191 |
| 191 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 217 |
| 217 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 145 |
| 145 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 289 |
| 289 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 145 |
| 145 |
|
78
Euro Dollar Overnight (1.1%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 145 |
| 145 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 289 |
| 289 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 289 |
| 289 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 289 |
| 289 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 289 |
| 289 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 289 |
| 289 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 289 |
| 289 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 145 |
| 145 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 289 |
| 289 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 548 |
| 548 |
|
Euro Dollar Terms (3.1%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 289 |
| 289 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 145 |
| 145 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 202 |
| 202 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 289 |
| 289 |
|
5.30%, due 05/16/2007 |
| 289 |
| 289 |
|
5.29%, due 05/21/2007 |
| 145 |
| 145 |
|
5.30%, due 06/04/2007 |
| 145 |
| 145 |
|
5.29%, due 06/08/2007 |
| 289 |
| 289 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 145 |
| 145 |
|
5.31%, due 05/24/2007 |
| 289 |
| 289 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 434 |
| 434 |
|
5.28%, due 05/29/2007 |
| 145 |
| 145 |
|
Credit Suisse First Boston Corp. |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 289 |
| 289 |
|
Deutsche Bank |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 289 |
| 289 |
|
Fortis Bank |
|
|
|
|
|
5.28%, due 05/21/2007 |
| 434 |
| 434 |
|
5.28%, due 05/25/2007 |
| 434 |
| 434 |
|
5.30%, due 06/25/2007 |
| 289 |
| 289 |
|
HBOS Halifax Bank of Scotland |
|
|
|
|
|
5.30%, due 06/13/2007 |
| 434 |
| 434 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.30%, due 05/08/2007 |
| 289 |
| 289 |
|
5.30%, due 05/09/2007 |
| 145 |
| 145 |
|
5.31%, due 05/25/2007 |
| 289 |
| 289 |
|
Skandinaviska Enskilda Banken AB |
|
|
|
|
|
5.28%, due 05/15/2007 |
| 145 |
| 145 |
|
Swedbank AB |
|
|
|
|
|
5.30%, due 05/11/2007 |
| 289 |
| 289 |
|
Toronto Dominion Bank |
|
|
|
|
|
5.28%, due 05/10/2007 |
| 289 |
| 289 |
|
79
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 289 |
| 289 |
| |
5.29%, due 06/12/2007 |
| 578 |
| 578 |
| |
5.29%, due 06/15/2007 |
| 434 |
| 434 |
| |
5.29%, due 06/18/2007 |
| 723 |
| 723 |
| |
Repurchase Agreements (2.0%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $801 on 05/01/2007 |
| 801 |
| 801 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $3,182 on 05/01/2007 |
| 3,181 |
| 3,181 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,394 on 05/01/2007 |
| 1,393 |
| 1,393 |
| |
Total Security Lending Collateral (cost: $23,189) |
|
|
| 23,189 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $236,141)(#) |
|
|
| $ | 280,892 |
|
|
| The notes to the financial statements are an integral part of this report. |
|
|
|
NOTES TO SCHEDULE OF INVESTMENTS: | ||
|
|
|
(‡) |
| Non-income producing. |
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $22,445. |
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. |
(††) |
| Cash collateral for the Repurchase Agreements, valued at $5,514, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. |
(#) |
| Aggregate cost for federal income tax purposes is $236,793. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $45,894 and $1,795, respectively. Net unrealized appreciation for tax purposes is $44,099. |
|
|
|
DEFINITIONS: | ||
| ||
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 April 30, 2007, these securities aggregated $4,339 or 1.6% of the net assets of the Fund. |
REIT |
| Real Estate Investment Trust |
80
TA IDEX Loomis Sayles Bond
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at January 3, 2007 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,023.90 |
| 0.77 | % | $ | 2.50 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,013.56 |
| 0.77 | % | 2.48 |
| |||
(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 number of days in the period (117 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
81
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Asset Type
At April 30, 2007 (unaudited)
Convertible |
| 3.9 | % |
Foreign |
| 11.7 | % |
Foreign Government |
| 9.9 | % |
U.S Corporate |
| 60.3 | % |
U.S. Government |
| 14.2 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by asset type of the Fund’s total investment securities.
82
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
|
|
| Principal |
| Value |
| ||
U.S. GOVERNMENT OBLIGATIONS (13.5%) |
|
|
|
|
|
|
| ||
U.S. Treasury Note |
|
|
|
|
|
|
| ||
4.75%, due 12/31/2008 |
|
|
| $ | 6,500 |
| $ | 6,505 |
|
4.50%, due 02/15/2036 |
|
|
| 17,975 |
| 17,045 |
| ||
Total U.S. Government Obligations (cost: $23,499) |
|
|
|
|
| 23,550 |
| ||
|
|
|
|
|
|
|
| ||
FOREIGN GOVERNMENT OBLIGATIONS (9.4%) |
|
|
|
|
|
|
| ||
Canada Government |
|
|
|
|
|
|
| ||
5.25%, due 06/01/2012 |
| CAD |
| 4,835 |
| 4,600 |
| ||
5.75%, due 06/01/2033 |
| CAD |
| 5,300 |
| 5,967 |
| ||
Republic of Colombia |
|
|
|
|
|
|
| ||
12.00%, due 10/22/2015 |
| COP |
| 1,510,000 |
| 827 |
| ||
Republic of South Africa |
|
|
|
|
|
|
| ||
13.00%, due 08/31/2010 |
| ZAR |
| 4,550 |
| 738 |
| ||
United Mexican States |
|
|
|
|
|
|
| ||
8.00%, due 12/17/2015 |
| MXN |
| 46,000 |
| 4,280 |
| ||
Total Foreign Government Obligations (cost: $15,971) |
|
|
|
|
| 16,412 |
| ||
|
|
|
|
|
|
|
| ||
CORPORATE DEBT SECURITIES (68.6%) |
|
|
|
|
|
|
| ||
Aerospace (1.7%) |
|
|
|
|
|
|
| ||
United Technologies Corp. |
|
|
|
|
|
|
| ||
4.38%, due 05/01/2010 |
|
|
| 3,000 |
| 2,953 |
| ||
Air Transportation (0.2%) |
|
|
|
|
|
|
| ||
Qantas Airways, Ltd.-144A |
|
|
|
|
|
|
| ||
5.13%, due 06/20/2013 |
|
|
| 15 |
| 13 |
| ||
6.05%, due 04/15/2016 |
|
|
| 285 |
| 249 |
| ||
Automotive (2.3%) |
|
|
|
|
|
|
| ||
Ford Motor Co. |
|
|
|
|
|
|
| ||
6.50%, due 08/01/2018 |
|
|
| 100 |
| 80 |
| ||
7.50%, due 08/01/2026 |
|
|
| 115 |
| 90 |
| ||
6.63%, due 02/15/2028 |
|
|
| 175 |
| 128 |
| ||
6.63%, due 10/01/2028 |
|
|
| 1,800 |
| 1,314 |
| ||
7.45%, due 07/16/2031 |
|
|
| 3,010 |
| 2,382 |
| ||
General Motors Corp. |
|
|
|
|
|
|
| ||
8.38%, due 07/15/2033 |
|
|
| 35 |
| 32 |
| ||
Beer, Wine & Distilled Beverages (0.5%) |
|
|
|
|
|
|
| ||
Diageo Capital PLC |
|
|
|
|
|
|
| ||
5.50%, due 09/30/2016 |
|
|
| 525 |
| 526 |
| ||
Miller Brewing Co., Guaranteed Note-144A |
|
|
|
|
|
|
| ||
5.50%, due 08/15/2013 |
|
|
| 265 |
| 266 |
| ||
Beverages (1.6%) |
|
|
|
|
|
|
| ||
Coca-Cola Enterprises, Inc. |
|
|
|
|
|
|
| ||
4.38%, due 09/15/2009 |
|
|
| 2,750 |
| 2,711 |
| ||
Business Credit Institutions (1.0%) |
|
|
|
|
|
|
| ||
General Electric Capital Corp., Series G (MTN) |
|
|
|
|
|
|
| ||
3.49%, due 03/08/2012 |
| SGD |
| 2,600 |
| 1,750 |
| ||
Business Services (1.3%) |
|
|
|
|
|
|
| ||
Bombardier, Inc.-144A |
|
|
|
|
|
|
| ||
7.45%, due 05/01/2034 |
|
|
| 1,015 |
| 979 |
| ||
Western Union Co., (The) |
|
|
|
|
|
|
| ||
6.20%, due 11/17/2036 |
|
|
| 1,240 |
| 1,214 |
| ||
Commercial Banks (5.5%) |
|
|
|
|
|
|
| ||
Barclays Financial LLC-144A |
|
|
|
|
|
|
| ||
4.06%, due 09/16/2010 |
| KRW |
| 440,000 |
| 464 |
| ||
4.46%, due 09/23/2010 |
| KRW |
| 550,000 |
| 582 |
| ||
HSBC Bank USA NA-144A |
|
|
|
|
|
|
| ||
Zero Coupon, due 04/18/2012 |
| MYR |
| 3,000 |
| 745 |
| ||
ICICI Bank, Ltd., Subordinated Note-144A |
|
|
|
|
|
|
| ||
6.38%, due 04/30/2022(a) |
|
|
| 1,300 |
| 1,300 |
| ||
JPMorgan Chase & Co.-144A (MTN) |
|
|
|
|
|
|
| ||
Zero Coupon, due 04/12/2012 |
| IDR |
| 21,967,355 |
| 1,571 |
| ||
Kreditanstalt fuer Wiederaufbau, Series E (MTN) |
|
|
|
|
|
|
| ||
8.50%, due 07/16/2010 |
| ZAR |
| 5,225 |
| 738 |
| ||
83
Oesterreichische Kontrollbank AG, Guaranteed Global Note |
|
|
|
|
|
|
|
1.80%, due 03/22/2010 |
| JPY |
| 496,000 |
| 4,245 |
|
Communication (4.7%) |
|
|
|
|
|
|
|
Comcast Corp. |
|
|
|
|
|
|
|
5.65%, due 06/15/2035 |
|
|
| 4,900 |
| 4,480 |
|
CSC Holdings, Inc., Senior Note |
|
|
|
|
|
|
|
7.63%, due 07/15/2018 |
|
|
| 950 |
| 969 |
|
Rogers Cable, Inc., Senior Note |
|
|
|
|
|
|
|
5.50%, due 03/15/2014 |
|
|
| 545 |
| 540 |
|
Time Warner Cable, Inc.-144A |
|
|
|
|
|
|
|
6.55%, due 05/01/2037 |
|
|
| 1,070 |
| 1,082 |
|
Viacom, Inc., Senior Note |
|
|
|
|
|
|
|
6.88%, due 04/30/2036 |
|
|
| 1,100 |
| 1,114 |
|
Communications Equipment (1.4%) |
|
|
|
|
|
|
|
Lucent Technologies, Inc. |
|
|
|
|
|
|
|
6.50%, due 01/15/2028 |
|
|
| 1,275 |
| 1,160 |
|
6.45%, due 03/15/2029 |
|
|
| 960 |
| 874 |
|
Nortel Networks Corp. |
|
|
|
|
|
|
|
6.88%, due 09/01/2023 |
|
|
| 425 |
| 398 |
|
Computer & Data Processing Services (1.0%) |
|
|
|
|
|
|
|
Intuit, Inc., Senior Note |
|
|
|
|
|
|
|
5.75%, due 03/15/2017 |
|
|
| 680 |
| 673 |
|
Unisys Corp. |
|
|
|
|
|
|
|
8.00%, due 10/15/2012 |
|
|
| 1,025 |
| 1,038 |
|
Construction (3.3%) |
|
|
|
|
|
|
|
Centex Corp., Senior Note |
|
|
|
|
|
|
|
5.25%, due 06/15/2015 |
|
|
| 455 |
| 416 |
|
DR Horton, Inc., Senior Note |
|
|
|
|
|
|
|
5.63%, due 09/15/2014 |
|
|
| 540 |
| 514 |
|
K Hovnanian Enterprises, Inc., Guaranteed Senior Note |
|
|
|
|
|
|
|
6.50%, due 01/15/2014 |
|
|
| 300 |
| 276 |
|
K Hovnanian Enterprises, Inc., Senior Note |
|
|
|
|
|
|
|
6.25%, due 01/15/2016 |
|
|
| 2,310 |
| 2,073 |
|
KB Home, Senior Note |
|
|
|
|
|
|
|
6.25%, due 06/15/2015 |
|
|
| 600 |
| 558 |
|
Lennar Corp., Series B, Senior Note |
|
|
|
|
|
|
|
5.60%, due 05/31/2015 |
|
|
| 440 |
| 416 |
|
Pulte Homes, Inc. |
|
|
|
|
|
|
|
6.38%, due 05/15/2033 |
|
|
| 1,700 |
| 1,566 |
|
Department Stores (2.5%) |
|
|
|
|
|
|
|
Dillard’s, Inc. |
|
|
|
|
|
|
|
7.13%, due 08/01/2018 |
|
|
| 990 |
| 973 |
|
Federated Retail Holdings, Inc. |
|
|
|
|
|
|
|
6.38%, due 03/15/2037 |
|
|
| 460 |
| 454 |
|
JC Penney Corp., Inc., Senior Note |
|
|
|
|
|
|
|
6.38%, due 10/15/2036 |
|
|
| 175 |
| 174 |
|
Wal-Mart Stores, Inc. |
|
|
|
|
|
|
|
4.13%, due 07/01/2010 |
|
|
| 2,750 |
| 2,682 |
|
Drug Stores & Proprietary Stores (0.2%) |
|
|
|
|
|
|
|
CVS Corp. |
|
|
|
|
|
|
|
4.88%, due 09/15/2014 |
|
|
| 400 |
| 386 |
|
Electric Services (1.2%) |
|
|
|
|
|
|
|
Cleveland Electric Illuminating Co. (The), Senior Note |
|
|
|
|
|
|
|
5.70%, due 04/01/2017 |
|
|
| 1,480 |
| 1,477 |
|
National Grid PLC |
|
|
|
|
|
|
|
6.30%, due 08/01/2016 |
|
|
| 500 |
| 525 |
|
TXU Corp., Series Q, Senior Note |
|
|
|
|
|
|
|
6.50%, due 11/15/2024 |
|
|
| 150 |
| 130 |
|
Electrical Goods (0.7%) |
|
|
|
|
|
|
|
Avnet, Inc. |
|
|
|
|
|
|
|
5.88%, due 03/15/2014 |
|
|
| 550 |
| 547 |
|
6.00%, due 09/01/2015 |
|
|
| 625 |
| 621 |
|
84
Engineering & Management Services (0.1%) |
|
|
|
|
|
North American Energy Partners, Inc., Senior Note |
|
|
|
|
|
8.75%, due 12/01/2011 |
| 100 |
| 103 |
|
Food & Kindred Products (0.8%) |
|
|
|
|
|
Sara Lee Corp. |
|
|
|
|
|
6.13%, due 11/01/2032 |
| 1,490 |
| 1,384 |
|
Food Stores (0.6%) |
|
|
|
|
|
Albertsons LLC, Senior Note |
|
|
|
|
|
7.45%, due 08/01/2029 |
| 415 |
| 417 |
|
Albertsons LLC, Series C (MTN) |
|
|
|
|
|
6.63%, due 06/01/2028 |
| 705 |
| 655 |
|
Gas Production & Distribution (2.5%) |
|
|
|
|
|
Dynegy Holdings, Inc., Senior Note |
|
|
|
|
|
7.63%, due 10/15/2026 |
| 450 |
| 442 |
|
El Paso Corp., Senior Note |
|
|
|
|
|
6.95%, due 06/01/2028 |
| 1,675 |
| 1,729 |
|
El Paso Natural Gas Co., Senior Note-144A |
|
|
|
|
|
5.95%, due 04/15/2017 |
| 1,590 |
| 1,604 |
|
KN Capital Trust III |
|
|
|
|
|
7.63%, due 04/15/2028 |
| 10 |
| 10 |
|
NGC Corp Capital Trust, Series B |
|
|
|
|
|
8.32%, due 06/01/2027 |
| 200 |
| 193 |
|
Southern Natural Gas Co.-144A |
|
|
|
|
|
5.90%, due 04/01/2017 |
| 380 |
| 382 |
|
Health Services (2.0%) |
|
|
|
|
|
HCA, Inc. |
|
|
|
|
|
6.50%, due 02/15/2016 |
| 925 |
| 806 |
|
7.50%, due 12/15/2023 |
| 30 |
| 26 |
|
7.69%, due 06/15/2025 |
| 105 |
| 93 |
|
7.05%, due 12/01/2027 |
| 55 |
| 45 |
|
7.50%, due 11/06/2033 |
| 2,205 |
| 1,902 |
|
HCA, Inc. (MTN) |
|
|
|
|
|
7.58%, due 09/15/2025 |
| 615 |
| 540 |
|
7.75%, due 07/15/2036 |
| 125 |
| 109 |
|
Holding & Other Investment Offices (2.4%) |
|
|
|
|
|
Borden, Inc. |
|
|
|
|
|
9.20%, due 03/15/2021 |
| 275 |
| 267 |
|
Highwoods Properties, Inc. REIT-144A |
|
|
|
|
|
5.85%, due 03/15/2017 |
| 1,175 |
| 1,169 |
|
Simon Property Group, LP REIT |
|
|
|
|
|
4.88%, due 08/15/2010 |
| 2,735 |
| 2,711 |
|
Industrial Machinery & Equipment (2.0%) |
|
|
|
|
|
John Deere Capital Corp. |
|
|
|
|
|
3.90%, due 01/15/2008 |
| 2,725 |
| 2,698 |
|
Joy Global, Inc., Senior Note |
|
|
|
|
|
6.63%, due 11/15/2036 |
| 820 |
| 847 |
|
Instruments & Related Products (0.2%) |
|
|
|
|
|
Xerox Corp., Subordinated Note |
|
|
|
|
|
6.40%, due 03/15/2016 |
| 410 |
| 422 |
|
Insurance (1.1%) |
|
|
|
|
|
White Mountains Re Group, Ltd.-144A |
|
|
|
|
|
6.38%, due 03/20/2017 |
| 2,000 |
| 1,978 |
|
Life Insurance (0.4%) |
|
|
|
|
|
Cigna Corp., Senior Note |
|
|
|
|
|
6.15%, due 11/15/2036 |
| 600 |
| 600 |
|
Lumber & Other Building Materials (0.9%) |
|
|
|
|
|
Masco Corp., Senior Note |
|
|
|
|
|
5.85%, due 03/15/2017 |
| 770 |
| 760 |
|
Owens Corning, Inc., Senior Note-144A |
|
|
|
|
|
7.00%, due 12/01/2036 |
| 830 |
| 832 |
|
85
Mortgage Bankers & Brokers (0.7%) |
|
|
|
|
|
|
|
KAR Holdings, Inc., Senior Subordinated Note-144A |
|
|
|
|
|
|
|
10.00%, due 05/01/2015 |
|
|
| 775 |
| 803 |
|
Kinder Morgan Finance Co. |
|
|
|
|
|
|
|
6.40%, due 01/05/2036 |
|
|
| 485 |
| 456 |
|
Motion Pictures (2.6%) |
|
|
|
|
|
|
|
News America, Inc. |
|
|
|
|
|
|
|
6.20%, due 12/15/2034 |
|
|
| 870 |
| 854 |
|
News America, Inc., Guaranteed Senior Note-144A |
|
|
|
|
|
|
|
6.15%, due 03/01/2037 |
|
|
| 1,510 |
| 1,477 |
|
Time Warner, Inc. |
|
|
|
|
|
|
|
6.50%, due 11/15/2036 |
|
|
| 2,230 |
| 2,232 |
|
Oil & Gas Extraction (2.1%) |
|
|
|
|
|
|
|
Anadarko Petroleum Corp., Senior Note |
|
|
|
|
|
|
|
6.45%, due 09/15/2036 |
|
|
| 310 |
| 311 |
|
Chesapeake Energy Corp., Senior Note |
|
|
|
|
|
|
|
6.88%, due 11/15/2020 |
|
|
| 980 |
| 987 |
|
Pioneer Natural Resources Co., Senior Note |
|
|
|
|
|
|
|
5.88%, due 07/15/2016 |
|
|
| 1,040 |
| 967 |
|
Weatherford International, Ltd. |
|
|
|
|
|
|
|
6.50%, due 08/01/2036 |
|
|
| 840 |
| 855 |
|
XTO Energy, Inc., Senior Note |
|
|
|
|
|
|
|
6.10%, due 04/01/2036 |
|
|
| 535 |
| 526 |
|
Paper & Allied Products (3.4%) |
|
|
|
|
|
|
|
Abitibi-Consolidated, Inc. |
|
|
|
|
|
|
|
7.40%, due 04/01/2018 |
|
|
| 35 |
| 30 |
|
7.50%, due 04/01/2028 |
|
|
| 30 |
| 25 |
|
8.50%, due 08/01/2029 |
|
|
| 15 |
| 13 |
|
8.85%, due 08/01/2030 |
|
|
| 485 |
| 429 |
|
Bowater, Inc. |
|
|
|
|
|
|
|
6.50%, due 06/15/2013 |
|
|
| 910 |
| 825 |
|
Georgia-Pacific Corp. |
|
|
|
|
|
|
|
7.38%, due 12/01/2025 |
|
|
| 305 |
| 297 |
|
7.75%, due 11/15/2029 |
|
|
| 700 |
| 696 |
|
Georgia-Pacific Corp., Senior Note |
|
|
|
|
|
|
|
8.00%, due 01/15/2024 |
|
|
| 1,850 |
| 1,869 |
|
Georgia-Pacific Corp./Timber Group |
|
|
|
|
|
|
|
7.25%, due 06/01/2028 |
|
|
| 105 |
| 102 |
|
International Paper Co. |
|
|
|
|
|
|
|
5.25%, due 04/01/2016 |
|
|
| 1,800 |
| 1,707 |
|
Personal Credit Institutions (1.1%) |
|
|
|
|
|
|
|
SLM Corp., Series A (MTN) |
|
|
|
|
|
|
|
6.50%, due 06/15/2010 |
| NZD |
| 2,805 |
| 1,946 |
|
Pharmaceuticals (1.5%) |
|
|
|
|
|
|
|
Elan Finance PLC/Elan Finance Corp. |
|
|
|
|
|
|
|
7.75%, due 11/15/2011 |
|
|
| 625 |
| 622 |
|
Elan Finance PLC/Elan Finance Corp., Guaranteed Senior Note-144A |
|
|
|
|
|
|
|
8.88%, due 12/01/2013 |
|
|
| 840 |
| 865 |
|
Hospira, Inc. |
|
|
|
|
|
|
|
6.05%, due 03/30/2017 |
|
|
| 270 |
| 273 |
|
Teva Pharmaceutical Finance LLC, Guaranteed Note |
|
|
|
|
|
|
|
6.15%, due 02/01/2036 |
|
|
| 870 |
| 848 |
|
Printing & Publishing (0.3%) |
|
|
|
|
|
|
|
Tribune Co. |
|
|
|
|
|
|
|
5.25%, due 08/15/2015 |
|
|
| 710 |
| 574 |
|
Radio & Television Broadcasting (0.5%) |
|
|
|
|
|
|
|
BSKYB Finance UK PLC-144A |
|
|
|
|
|
|
|
6.50%, due 10/15/2035 |
|
|
| 855 |
| 857 |
|
Railroads (0.3%) |
|
|
|
|
|
|
|
CSX Corp. |
|
|
|
|
|
|
|
6.00%, due 10/01/2036 |
|
|
| 570 |
| 550 |
|
86
Restaurants (0.4%) |
|
|
|
|
|
|
|
Aramark Services, Inc., Senior Note |
|
|
|
|
|
|
|
5.00%, due 06/01/2012 |
|
|
| 700 |
| 632 |
|
Retail Trade (0.9%) |
|
|
|
|
|
|
|
Toys R US, Inc. |
|
|
|
|
|
|
|
7.88%, due 04/15/2013 |
|
|
| 355 |
| 335 |
|
7.38%, due 10/15/2018 |
|
|
| 1,375 |
| 1,210 |
|
Stone, Clay & Glass Products (1.5%) |
|
|
|
|
|
|
|
Owens-Illinois, Inc. |
|
|
|
|
|
|
|
7.80%, due 05/15/2018 |
|
|
| 900 |
| 932 |
|
USG Corp., Senior Note-144A |
|
|
|
|
|
|
|
6.30%, due 11/15/2016 |
|
|
| 1,700 |
| 1,699 |
|
Telecommunications (7.8%) |
|
|
|
|
|
|
|
America Movil SA de CV-144A |
|
|
|
|
|
|
|
8.46%, due 12/18/2036 |
| MXN |
| 14,000 |
| 1,292 |
|
AT&T Corp. |
|
|
|
|
|
|
|
6.50%, due 03/15/2029 |
|
|
| 200 |
| 199 |
|
Citizens Communications Co., Senior Note-144A |
|
|
|
|
|
|
|
7.13%, due 03/15/2019 |
|
|
| 1,665 |
| 1,677 |
|
Embarq Corp. |
|
|
|
|
|
|
|
7.08%, due 06/01/2016 |
|
|
| 515 |
| 532 |
|
Level 3 Financing, Inc., Senior Note-144A |
|
|
|
|
|
|
|
8.75%, due 02/15/2017 |
|
|
| 50 |
| 51 |
|
Qwest Capital Funding, Inc. |
|
|
|
|
|
|
|
6.88%, due 07/15/2028 |
|
|
| 2,415 |
| 2,306 |
|
7.75%, due 02/15/2031 |
|
|
| 530 |
| 538 |
|
Sprint Capital Corp. |
|
|
|
|
|
|
|
6.88%, due 11/15/2028 |
|
|
| 542 |
| 538 |
|
Sprint Nextel Corp. |
|
|
|
|
|
|
|
6.00%, due 12/01/2016 |
|
|
| 967 |
| 949 |
|
Telecom Italia Capital |
|
|
|
|
|
|
|
6.00%, due 09/30/2034 |
|
|
| 100 |
| 93 |
|
Telefonica Emisones SAU, Guaranteed Senior Note |
|
|
|
|
|
|
|
7.05%, due 06/20/2036 |
|
|
| 450 |
| 483 |
|
TELUS Corp. |
|
|
|
|
|
|
|
4.95%, due 03/15/2017 |
| CAD |
| 1,665 |
| 1,390 |
|
True Move Co., Ltd., Guaranteed Note-144A |
|
|
|
|
|
|
|
10.75%, due 12/16/2013 |
|
|
| 645 |
| 677 |
|
Verizon Communications, Inc. |
|
|
|
|
|
|
|
6.25%, due 04/01/2037 |
|
|
| 2,590 |
| 2,595 |
|
Vodafone Group PLC |
|
|
|
|
|
|
|
6.15%, due 02/27/2037 |
|
|
| 160 |
| 158 |
|
U.S. Government & Agency (2.9%) |
|
|
|
|
|
|
|
Freddie Mac |
|
|
|
|
|
|
|
4.63%, due 12/19/2008 |
|
|
| 5,000 |
| 4,977 |
|
Wholesale Trade Durable Goods (0.5%) |
|
|
|
|
|
|
|
Owens & Minor, Inc., Senior Note |
|
|
|
|
|
|
|
6.35%, due 04/15/2016 |
|
|
| 835 |
| 845 |
|
Total Corporate Debt Securities (cost: $118,920) |
|
|
|
|
| 119,276 |
|
|
|
|
|
|
|
|
|
CONVERTIBLE BOND (3.2%) |
|
|
|
|
|
|
|
Health Services (0.9%) |
|
|
|
|
|
|
|
Nektar Therapeutics, Subordinated Note |
|
|
|
|
|
|
|
3.25%, due 09/28/2012 |
|
|
| 1,710 |
| 1,618 |
|
Motion Pictures (0.1%) |
|
|
|
|
|
|
|
Liberty Media Corp. |
|
|
|
|
|
|
|
3.50%, due 01/15/2031 |
|
|
| 126 |
| 123 |
|
Pharmaceuticals (0.6%) |
|
|
|
|
|
|
|
Valeant Pharmaceuticals International, Subordinated Note |
|
|
|
|
|
|
|
4.00%, due 11/15/2013 |
|
|
| 1,165 |
| 1,075 |
|
Telecommunications (1.6%) |
|
|
|
|
|
|
|
JDS Uniphase Corp., Senior Note |
|
|
|
|
|
|
|
Zero Coupon, due 11/15/2010 |
|
|
| 570 |
| 526 |
|
87
Level 3 Communications, Inc., Subordinated Note |
|
|
|
|
|
|
|
6.00%, due 09/15/2009 |
|
|
| 370 |
| 366 |
|
6.00%, due 03/15/2010 |
|
|
| 1,950 |
| 1,860 |
|
Total Convertible Bond (cost: $5,600) |
|
|
|
|
| 5,568 |
|
|
|
|
| Shares |
| Value |
| |
CONVERTIBLE PREFERRED STOCKS (0.5%) |
|
|
|
|
|
|
| |
Electric Services (0.1%) |
|
|
|
|
|
|
| |
AES Trust III(‡) |
|
|
| 5,050 |
| 251 |
| |
Gas Production & Distribution (0.1%) |
|
|
|
|
|
|
| |
El Paso Energy Capital Trust I(‡) |
|
|
| 3,200 |
| 131 |
| |
Oil & Gas Extraction (0.3%) |
|
|
|
|
|
|
| |
Chesapeake Energy Corp. |
|
|
| 3,915 |
| 435 |
| |
Stone, Clay & Glass Products (0.0%) |
|
|
|
|
|
|
| |
Owens-Illinois, Inc.(‡) |
|
|
| 1,950 |
| 77 |
| |
Total Convertible Preferred Stocks (cost: $845) |
|
|
|
|
| 894 |
| |
|
|
|
|
|
|
|
| |
Total Investment Securities (cost: $164,835)(#) |
|
|
|
|
| $ | 165,700 |
|
| The notes to the financial statements are an integral part of this report. |
NOTES TO SCHEDULE OF INVESTMENTS: | ||
|
|
|
(a) |
| Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of April 30, 2007. |
(‡) |
| Non-income producing. |
(#) |
| Aggregate cost for federal income tax purposes is $164,835. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $1,467 and $602, respectively. Net unrealized appreciation for tax purposes is $865. |
|
|
|
DEFINITIONS: | ||
| ||
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 April 30, 2007, these securities aggregated $22,614 or 13.0% of the net assets of the Fund. |
CAD |
| Canadian Dollar |
COP |
| Colombian Peso |
IDR |
| Indonesian Rupiah |
JPY |
| Japanese Yen |
KRW |
| Korean Won |
MTN |
| Medium-Term Note |
MXN |
| Mexican Peso |
MYR |
| Malaysian Ringgit |
NZD |
| New Zealand Dollar |
REIT |
| Real Estate Investment Trust |
SGD |
| Singapore Dollar |
ZAR |
| South African Rand |
88
TA IDEX Marsico International Growth
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,135.30 |
| 1.14 | % | $ | 6.04 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,019.14 |
| 1.14 | % | 5.71 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
89
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Asia |
| 0.9 | % |
Europe |
| 55.5 | % |
Latin America |
| 5.7 | % |
North America |
| 4.9 | % |
Pacific Rim |
| 25.5 | % |
South America |
| 2.5 | % |
Other |
| 5.0 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
90
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
| Shares |
| Value |
| ||
COMMON STOCKS (92.6%) |
|
|
|
|
| |
Australia (4.8%) |
|
|
|
|
| |
CSL, Ltd. |
| 64,260 |
| $ | 4,668 |
|
Macquarie Bank, Ltd. |
| 189,372 |
| 13,713 |
| |
Macquarie Infrastructure Group(a) |
| 1,115,702 |
| 3,520 |
| |
Austria (3.3%) |
|
|
|
|
| |
Erste Bank der Oesterreichischen Sparkassen AG |
| 186,717 |
| 15,040 |
| |
Bermuda (1.5%) |
|
|
|
|
| |
Esprit Holdings, Ltd. |
| 546,000 |
| 6,667 |
| |
Brazil (2.4%) |
|
|
|
|
| |
Gafisa SA |
| 198,427 |
| 2,794 |
| |
JHSF Participacoes SA(‡) |
| 302,600 |
| 1,236 |
| |
Uniao de Bancos Brasileiros SA, GDR |
| 70,961 |
| 6,887 |
| |
Canada (1.9%) |
|
|
|
|
| |
Canadian National Railway Co. |
| 89,340 |
| 4,488 |
| |
Shoppers Drug Mart Corp. |
| 92,195 |
| 4,220 |
| |
Cayman Islands (1.5%) |
|
|
|
|
| |
Melco PBL Entertainment Macau, Ltd., ADR(‡)(†) |
| 379,449 |
| 6,610 |
| |
China (0.9%) |
|
|
|
|
| |
Industrial & Commercial Bank of China-Class H(‡) |
| 7,164,000 |
| 3,930 |
| |
France (10.7%) |
|
|
|
|
| |
Accor SA |
| 141,741 |
| 13,440 |
| |
AXA |
| 242,203 |
| 11,215 |
| |
Cie de Saint-Gobain |
| 54,414 |
| 5,856 |
| |
Electricite de France |
| 30,107 |
| 2,634 |
| |
JC Decaux SA |
| 188,920 |
| 5,925 |
| |
Veolia Environnement |
| 113,062 |
| 9,397 |
| |
Germany (4.3%) |
|
|
|
|
| |
Continental AG |
| 119,693 |
| 16,740 |
| |
Linde AG |
| 25,133 |
| 2,824 |
| |
Hong Kong (5.6%) |
|
|
|
|
| |
China Merchants Holdings International Co., Ltd. |
| 994,000 |
| 4,429 |
| |
China Mobile Hong Kong, Ltd. |
| 1,383,500 |
| 12,639 |
| |
CNOOC, Ltd. |
| 5,147,500 |
| 4,475 |
| |
Shangri-La Asia, Ltd. |
| 1,658,000 |
| 4,070 |
| |
India (0.9%) |
|
|
|
|
| |
ICICI Bank, Ltd., Sponsored ADR(†) |
| 95,583 |
| 3,911 |
| |
Italy (3.4%) |
|
|
|
|
| |
Intesa Sanpaolo SpA(‡) |
| 1,850,664 |
| 15,609 |
| |
Japan (11.3%) |
|
|
|
|
| |
Advantest Corp. |
| 73,600 |
| 3,257 |
| |
Chugai Pharmaceutical Co., Ltd. |
| 369,400 |
| 9,418 |
| |
Daikin Industries, Ltd. |
| 129,229 |
| 4,367 |
| |
Marubeni Corp. |
| 931,000 |
| 5,589 |
| |
Mitsui Trust Holdings, Inc. |
| 551,000 |
| 4,977 |
| |
Mizuho Financial Group, Inc. |
| 653 |
| 3,929 |
| |
Nippon Electric Glass Co., Ltd. |
| 121,500 |
| 2,079 |
| |
Toyota Motor Corp. |
| 210,000 |
| 12,753 |
| |
Yamada Denki Co., Ltd. |
| 53,500 |
| 4,943 |
| |
Mexico (5.5%) |
|
|
|
|
| |
America Movil SAB de CV, Series L, ADR(†) |
| 155,374 |
| 8,162 |
| |
Cemex SA B de CV, ADR(‡)(†) |
| 124,955 |
| 4,061 |
| |
Fomento Economico Mexicano SAB, Sponsored ADR |
| 43,971 |
| 4,735 |
| |
Grupo Televisa SA, Sponsored ADR |
| 281,393 |
| 7,893 |
| |
Netherland Antilles (1.9%) |
|
|
|
|
| |
Schlumberger, Ltd. |
| 118,623 |
| 8,758 |
| |
Singapore (1.5%) |
|
|
|
|
| |
Capitaland, Ltd. |
| 1,195,000 |
| 6,684 |
| |
South Korea (0.5%) |
|
|
|
|
| |
POSCO |
| 5,140 |
| 2,174 |
| |
Sweden (0.6%) |
|
|
|
|
| |
Volvo AB-Class B |
| 157,098 |
| 2,649 |
| |
91
Switzerland (15.6%) |
|
|
|
|
|
ABB, Ltd. |
| 241,848 |
| 4,910 |
|
Actelion NV(‡) |
| 9,949 |
| 2,375 |
|
Holcim, Ltd. |
| 101,463 |
| 10,956 |
|
Lonza Group AG |
| 88,390 |
| 8,695 |
|
Nestle SA |
| 16,511 |
| 6,564 |
|
Roche Holding AG-Genusschein |
| 52,577 |
| 9,943 |
|
Swiss Reinsurance(a) |
| 71,987 |
| 6,813 |
|
Syngenta AG(‡) |
| 44,604 |
| 8,923 |
|
UBS AG-Registered |
| 173,475 |
| 11,379 |
|
United Kingdom (14.5%) |
|
|
|
|
|
BAE Systems PLC |
| 1,143,774 |
| 10,453 |
|
British Sky Broadcasting PLC |
| 601,014 |
| 6,911 |
|
Diageo PLC |
| 208,580 |
| 4,417 |
|
Man Group PLC |
| 734,707 |
| 8,302 |
|
Northern Rock PLC |
| 284,708 |
| 6,132 |
|
Reckitt Benckiser PLC |
| 96,425 |
| 5,305 |
|
Rio Tinto PLC |
| 103,601 |
| 6,367 |
|
Tesco PLC |
| 1,910,230 |
| 17,668 |
|
Total Common Stocks (cost: $351,408) |
|
|
| 419,478 |
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (4.0%) |
|
|
|
|
|
Debt (4.0%) |
|
|
|
|
|
Bank Notes (0.2%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 571 |
| 571 |
|
5.27%, due 06/18/2007(*) |
| 571 |
| 571 |
|
Commercial Paper (0.9%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 229 |
| 229 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 221 |
| 221 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 152 |
| 152 |
|
5.29%, due 06/13/2007 |
| 114 |
| 114 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 114 |
| 114 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 114 |
| 114 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 114 |
| 114 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 114 |
| 114 |
|
5.28%, due 05/24/2007 |
| 114 |
| 114 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 229 |
| 229 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 224 |
| 224 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 229 |
| 229 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 228 |
| 228 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 452 |
| 452 |
|
5.30%, due 05/29/2007 |
| 114 |
| 114 |
|
5.29%, due 05/31/2007 |
| 114 |
| 114 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 114 |
| 114 |
|
5.29%, due 05/17/2007 |
| 114 |
| 114 |
|
5.28%, due 06/01/2007 |
| 114 |
| 114 |
|
5.29%, due 06/19/2007 |
| 151 |
| 151 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 171 |
| 171 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 114 |
| 114 |
|
92
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 228 |
| 228 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 114 |
| 114 |
|
Euro Dollar Overnight (0.5%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 114 |
| 114 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 228 |
| 228 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 228 |
| 228 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 228 |
| 228 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 228 |
| 228 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 228 |
| 228 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 228 |
| 228 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 114 |
| 114 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 228 |
| 228 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 433 |
| 433 |
|
Euro Dollar Terms (1.5%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 228 |
| 228 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 114 |
| 114 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 160 |
| 160 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 228 |
| 228 |
|
5.30%, due 05/16/2007 |
| 228 |
| 228 |
|
5.29%, due 05/21/2007 |
| 114 |
| 114 |
|
5.30%, due 06/04/2007 |
| 114 |
| 114 |
|
5.29%, due 06/08/2007 |
| 228 |
| 228 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 114 |
| 114 |
|
5.31%, due 05/24/2007 |
| 228 |
| 228 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 343 |
| 343 |
|
5.28%, due 05/29/2007 |
| 114 |
| 114 |
|
Credit Suisse First Boston Corp. |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 228 |
| 228 |
|
Deutsche Bank |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 228 |
| 228 |
|
Fortis Bank |
|
|
|
|
|
5.28%, due 05/21/2007 |
| 343 |
| 343 |
|
5.28%, due 05/25/2007 |
| 343 |
| 343 |
|
5.30%, due 06/25/2007 |
| 228 |
| 228 |
|
HBOS Halifax Bank of Scotland |
|
|
|
|
|
5.30%, due 06/13/2007 |
| 343 |
| 343 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.30%, due 05/08/2007 |
| 228 |
| 228 |
|
5.30%, due 05/09/2007 |
| 114 |
| 114 |
|
5.31%, due 05/25/2007 |
| 228 |
| 228 |
|
Skandinaviska Enskilda Banken AB |
|
|
|
|
|
5.28%, due 05/15/2007 |
| 114 |
| 114 |
|
Swedbank AB |
|
|
|
|
|
5.30%, due 05/11/2007 |
| 228 |
| 228 |
|
Toronto Dominion Bank |
|
|
|
|
|
5.28%, due 05/10/2007 |
| 228 |
| 228 |
|
93
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 228 |
| 228 |
| |
5.29%, due 06/12/2007 |
| 457 |
| 457 |
| |
5.29%, due 06/15/2007 |
| 343 |
| 343 |
| |
5.29%, due 06/18/2007 |
| 571 |
| 571 |
| |
Repurchase Agreements (0.9%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $632 on 05/01/2007 |
| 632 |
| 632 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,511 on 05/01/2007 |
| 2,511 |
| 2,511 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,100 on 05/01/2007 |
| 1,100 |
| 1,100 |
| |
Total Security Lending Collateral (cost: $18,303) |
|
|
| 18,303 |
| |
Total Investment Securities (cost: $369,711)(#) |
|
|
| $ | 437,781 |
|
NOTES TO SCHEDULE OF INVESTMENTS:
(a) |
| Passive Foreign Investment Company. | ||
(‡) |
| Non-income producing. | ||
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $17,522. | ||
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. | ||
(††) |
| Cash collateral for the Repurchase Agreements, valued at $4,352, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. | ||
(#) |
| Aggregate cost for federal income tax purposes is $371,681. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $70,500 and $4,400, respectively. Net unrealized appreciation for tax purposes is $66,100. | ||
|
|
| ||
DEFINITIONS: | ||||
| ||||
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 April 30, 2007, these securities aggregated $3,424 or 0.8% of the net assets of the Fund. | ||
ADR |
| American Depositary Receipt | ||
GDR |
| Global Depositary Receipt | ||
The notes to the financial statements are an integral part of this report.
94
|
| Percentage of |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Commercial Banks |
| 12.0 | % | $ | 54,283 |
|
Security & Commodity Brokers |
| 8.1 | % | 36,913 |
| |
Pharmaceuticals |
| 5.8 | % | 26,404 |
| |
Chemicals & Allied Products |
| 5.1 | % | 22,923 |
| |
Telecommunications |
| 4.6 | % | 20,801 |
| |
Food Stores |
| 3.9 | % | 17,668 |
| |
Hotels & Other Lodging Places |
| 3.9 | % | 17,510 |
| |
Radio & Television Broadcasting |
| 3.8 | % | 17,290 |
| |
Rubber & Misc. Plastic Products |
| 3.7 | % | 16,740 |
| |
Stone, Clay & Glass Products |
| 3.3 | % | 15,017 |
| |
Oil & Gas Extraction |
| 2.9 | % | 13,233 |
| |
Automotive |
| 2.8 | % | 12,753 |
| |
Wholesale Trade Durable Goods |
| 2.7 | % | 12,256 |
| |
Life Insurance |
| 2.5 | % | 11,215 |
| |
Real Estate |
| 2.4 | % | 10,714 |
| |
Aerospace |
| 2.3 | % | 10,453 |
| |
Beverages |
| 2.0 | % | 9,153 |
| |
Engineering & Management Services |
| 1.7 | % | 7,735 |
| |
Industrial Machinery & Equipment |
| 1.5 | % | 7,016 |
| |
Communication |
| 1.5 | % | 6,911 |
| |
Insurance |
| 1.5 | % | 6,813 |
| |
Amusement & Recreation Services |
| 1.5 | % | 6,610 |
| |
Food & Kindred Products |
| 1.4 | % | 6,564 |
| |
Metal Mining |
| 1.4 | % | 6,367 |
| |
Mortgage Bankers & Brokers |
| 1.4 | % | 6,132 |
| |
Business Services |
| 1.3 | % | 5,925 |
| |
Lumber & Other Building Materials |
| 1.3 | % | 5,855 |
| |
Radio, Television & Computer Stores |
| 1.1 | % | 4,943 |
| |
Railroads |
| 1.0 | % | 4,488 |
| |
Water Transportation |
| 1.0 | % | 4,429 |
| |
Drug Stores & Proprietary Stores |
| 0.9 | % | 4,220 |
| |
Instruments & Related Products |
| 0.7 | % | 3,257 |
| |
Electric Services |
| 0.6 | % | 2,634 |
| |
Primary Metal Industries |
| 0.5 | % | 2,174 |
| |
Electronic Components & Accessories |
| 0.5 | % | 2,079 |
| |
Investment Securities, at value |
| 92.6 | % | 419,478 |
| |
Short-Term Investments |
| 4.0 | % | 18,303 |
| |
Total Investment Securities |
| 96.6 | % | $ | 437,781 |
|
95
TA IDEX Mellon Market Neutral Strategy
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at January 3, 2007 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,009.00 |
| 1.59 | % | $ | 5.12 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,010.93 |
| 1.59 | % | 5.12 |
| |||
(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 number of days in the period (117 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
96
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
| Long % |
| Short % |
| |
Basic Materials |
| 5.9 | % | (5.2 | )% |
Communications |
| 7.1 | % | (5.3 | )% |
Consumer Cyclical |
| 16.6 | % | (16.8 | )% |
Consumer Non-Cyclical |
| 20.3 | % | (20.3 | )% |
Energy |
| 8.1 | % | (9.8 | )% |
Financial |
| 12.8 | % | (10.1 | )% |
Industrial |
| 11.4 | % | (14.1 | )% |
Technology |
| 11.7 | % | (11.6 | )% |
Utilities |
| 6.1 | % | (6.8 | )% |
|
| 100.0 | % | (100.0 | )% |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
97
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (97.4%) |
|
|
|
|
| |
Aerospace (0.7%) |
|
|
|
|
| |
Lockheed Martin Corp. |
| 8,200 |
| $ | 788 |
|
Air Transportation (1.4%) |
|
|
|
|
| |
AMR Corp.(‡) |
| 23,200 |
| 605 |
| |
Continental Airlines, Inc.-Class B(‡) |
| 25,700 |
| 940 |
| |
Apparel & Accessory Stores (3.2%) |
|
|
|
|
| |
Aeropostale, Inc.(‡) |
| 14,100 |
| 580 |
| |
American Eagle Outfitters |
| 48,800 |
| 1,438 |
| |
Kohl’s Corp.(‡) |
| 19,300 |
| 1,429 |
| |
Automotive (1.1%) |
|
|
|
|
| |
Harley-Davidson, Inc. |
| 10,200 |
| 646 |
| |
PACCAR, Inc. |
| 6,700 |
| 563 |
| |
Beverages (1.1%) |
|
|
|
|
| |
Pepsi Bottling Group, Inc. |
| 36,400 |
| 1,194 |
| |
Business Credit Institutions (0.8%) |
|
|
|
|
| |
CIT Group, Inc. |
| 14,000 |
| 835 |
| |
Business Services (3.0%) |
|
|
|
|
| |
Convergys Corp.(‡) |
| 14,400 |
| 364 |
| |
Korn/Ferry International(‡) |
| 19,900 |
| 469 |
| |
Manpower, Inc. |
| 9,700 |
| 778 |
| |
MPS Group, Inc.(‡) |
| 29,800 |
| 408 |
| |
Omnicom Group, Inc. |
| 5,900 |
| 618 |
| |
Sotheby’s Holdings-Class A |
| 10,400 |
| 537 |
| |
Chemicals & Allied Products (4.3%) |
|
|
|
|
| |
Alberto-Culver Co. |
| 23,500 |
| 571 |
| |
Ecolab, Inc. |
| 24,000 |
| 1,032 |
| |
Olin Corp. |
| 96,800 |
| 1,659 |
| |
Rohm & Haas Co. |
| 6,400 |
| 327 |
| |
Sherwin-Williams Co. (The) |
| 11,800 |
| 752 |
| |
Valspar Corp. |
| 10,800 |
| 292 |
| |
Commercial Banks (3.5%) |
|
|
|
|
| |
Bank of America Corp. |
| 33,300 |
| 1,695 |
| |
National City Corp. |
| 9,100 |
| 333 |
| |
Wells Fargo & Co. |
| 37,800 |
| 1,357 |
| |
Whitney Holding Corp. |
| 12,800 |
| 394 |
| |
Communication (1.1%) |
|
|
|
|
| |
DIRECTV Group (The), Inc.(‡) |
| 50,700 |
| 1,209 |
| |
Communications Equipment (2.4%) |
|
|
|
|
| |
Network Appliance, Inc.(‡) |
| 43,300 |
| 1,611 |
| |
Polycom, Inc.(‡) |
| 29,600 |
| 986 |
| |
Computer & Data Processing Services (6.0%) |
|
|
|
|
| |
Advent Software, Inc.(‡) |
| 8,000 |
| 268 |
| |
Alliance Data Systems Corp.(‡) |
| 6,800 |
| 433 |
| |
Fiserv, Inc.(‡) |
| 14,100 |
| 750 |
| |
Jack Henry & Associates, Inc. |
| 27,600 |
| 655 |
| |
Mentor Graphics Corp.(‡) |
| 46,500 |
| 752 |
| |
National Instruments Corp. |
| 42,800 |
| 1,192 |
| |
Synopsys, Inc.(‡) |
| 46,800 |
| 1,294 |
| |
Total System Services, Inc. |
| 33,300 |
| 1,034 |
| |
Computer & Office Equipment (2.5%) |
|
|
|
|
| |
Apple, Inc.(‡) |
| 12,400 |
| 1,238 |
| |
Jabil Circuit, Inc. |
| 33,500 |
| 781 |
| |
Lexmark International, Inc.(‡) |
| 8,400 |
| 458 |
| |
Western Digital Corp.(‡) |
| 13,500 |
| 239 |
| |
Department Stores (1.1%) |
|
|
|
|
| |
Dillard’s, Inc.-Class A |
| 6,200 |
| 215 |
| |
TJX Cos., Inc. |
| 35,500 |
| 990 |
| |
Drug Stores & Proprietary Stores (1.6%) |
|
|
|
|
| |
Walgreen Co. |
| 38,600 |
| 1,695 |
| |
Electric Services (4.5%) |
|
|
|
|
| |
Allegheny Energy, Inc.(‡) |
| 8,300 |
| 444 |
| |
CenterPoint Energy, Inc. |
| 42,300 |
| 796 |
| |
Duke Energy Corp. |
| 30,200 |
| 620 |
| |
Energy East Corp. |
| 37,400 |
| 906 |
| |
NRG Energy, Inc.(‡) |
| 4,500 |
| 355 |
| |
98
Reliant Energy, Inc.(‡) |
| 9,900 |
| 220 |
|
Sierra Pacific Resources(‡) |
| 40,700 |
| 743 |
|
Westar Energy, Inc. |
| 25,900 |
| 705 |
|
Electric, Gas & Sanitary Services (2.0%) |
|
|
|
|
|
Allied Waste Industries, Inc.(‡) |
| 98,100 |
| 1,312 |
|
PG&E Corp. |
| 16,100 |
| 815 |
|
Electrical Goods (0.4%) |
|
|
|
|
|
Avnet, Inc.(‡) |
| 10,000 |
| 409 |
|
Electronic & Other Electric Equipment (0.5%) |
|
|
|
|
|
Thomas & Betts Corp.(‡) |
| 10,000 |
| 545 |
|
Electronic Components & Accessories (3.4%) |
|
|
|
|
|
AVX Corp. |
| 19,000 |
| 316 |
|
Dolby Laboratories, Inc.-Class A(‡) |
| 6,700 |
| 237 |
|
Intersil Corp.-Class A |
| 31,300 |
| 932 |
|
Molex, Inc. |
| 33,500 |
| 1,001 |
|
Novellus Systems, Inc.(‡) |
| 26,500 |
| 858 |
|
Xilinx, Inc. |
| 10,700 |
| 315 |
|
Engineering & Management Services (0.2%) |
|
|
|
|
|
Jacobs Engineering Group, Inc.(‡) |
| 5,200 |
| 262 |
|
Food & Kindred Products (2.1%) |
|
|
|
|
|
Corn Products International, Inc. |
| 6,900 |
| 275 |
|
Hormel Foods Corp. |
| 13,400 |
| 510 |
|
McCormick & Co., Inc. |
| 38,200 |
| 1,418 |
|
Food Stores (1.7%) |
|
|
|
|
|
Kroger Co. |
| 34,700 |
| 1,024 |
|
Safeway, Inc. |
| 22,500 |
| 817 |
|
Furniture & Fixtures (0.6%) |
|
|
|
|
|
Kinetic Concepts, Inc.(‡) |
| 13,000 |
| 650 |
|
Gas Production & Distribution (1.0%) |
|
|
|
|
|
AGL Resources, Inc. |
| 12,700 |
| 553 |
|
Oneok, Inc. |
| 6,100 |
| 295 |
|
UGI Corp. |
| 8,300 |
| 235 |
|
Health Services (2.6%) |
|
|
|
|
|
Edwards Lifesciences Corp.(‡) |
| 7,000 |
| 343 |
|
Health Management Associates, Inc.-Class A |
| 50,800 |
| 543 |
|
LifePoint Hospitals, Inc.(‡) |
| 14,800 |
| 540 |
|
Lincare Holdings, Inc.(‡) |
| 13,500 |
| 532 |
|
Quest Diagnostics, Inc. |
| 16,700 |
| 816 |
|
Hotels & Other Lodging Places (0.7%) |
|
|
|
|
|
Choice Hotels International, Inc. |
| 12,300 |
| 463 |
|
Starwood Hotels & Resorts Worldwide, Inc. |
| 3,800 |
| 255 |
|
Industrial Machinery & Equipment (4.0%) |
|
|
|
|
|
Gardner Denver, Inc.(‡) |
| 36,200 |
| 1,368 |
|
Lam Research Corp.(‡) |
| 10,800 |
| 581 |
|
Manitowoc Co. |
| 15,100 |
| 1,030 |
|
Modine Manufacturing Co. |
| 9,400 |
| 217 |
|
Terex Corp.(‡) |
| 14,000 |
| 1,090 |
|
Insurance (6.1%) |
|
|
|
|
|
Cincinnati Financial Corp. |
| 29,600 |
| 1,339 |
|
HCC Insurance Holdings, Inc. |
| 21,100 |
| 647 |
|
Ohio Casualty Corp. |
| 51,100 |
| 1,617 |
|
SAFECO Corp. |
| 11,200 |
| 747 |
|
Stancorp Financial Group, Inc. |
| 16,400 |
| 781 |
|
WellCare Health Plans, Inc.(‡) |
| 17,600 |
| 1,418 |
|
Insurance Agents, Brokers & Service (0.2%) |
|
|
|
|
|
Humana, Inc.(‡) |
| 3,700 |
| 234 |
|
Life Insurance (0.2%) |
|
|
|
|
|
Reinsurance Group of America, Inc. |
| 3,800 |
| 237 |
|
Medical Instruments & Supplies (0.2%) |
|
|
|
|
|
Beckman Coulter, Inc. |
| 3,500 |
| 220 |
|
Metal Cans & Shipping Containers (0.4%) |
|
|
|
|
|
Crown Holdings, Inc.(‡) |
| 19,500 |
| 471 |
|
Oil & Gas Extraction (5.1%) |
|
|
|
|
|
Anadarko Petroleum Corp. |
| 7,200 |
| 336 |
|
Chesapeake Energy Corp. |
| 55,800 |
| 1,883 |
|
Global Industries, Ltd.(‡) |
| 27,000 |
| 561 |
|
Patterson-UTI Energy, Inc. |
| 30,400 |
| 741 |
|
99
XTO Energy, Inc. |
| 35,600 |
| 1,932 |
| |
Paper & Allied Products (1.1%) |
|
|
|
|
| |
Bemis Co. |
| 27,000 |
| 897 |
| |
International Paper Co. |
| 7,100 |
| 268 |
| |
Paperboard Containers & Boxes (0.5%) |
|
|
|
|
| |
Packaging Corp. of America |
| 21,200 |
| 525 |
| |
Personal Credit Institutions (0.6%) |
|
|
|
|
| |
AmeriCredit Corp.(‡) |
| 27,300 |
| 689 |
| |
Petroleum Refining (2.5%) |
|
|
|
|
| |
Exxon Mobil Corp. |
| 3,100 |
| 246 |
| |
Holly Corp. |
| 19,200 |
| 1,221 |
| |
Tesoro Corp. |
| 10,100 |
| 1,224 |
| |
Pharmaceuticals (5.4%) |
|
|
|
|
| |
AmerisourceBergen Corp. |
| 23,500 |
| 1,175 |
| |
Forest Laboratories, Inc.(‡) |
| 22,700 |
| 1,208 |
| |
Johnson & Johnson |
| 18,400 |
| 1,182 |
| |
McKesson Corp. |
| 6,100 |
| 359 |
| |
Mylan Laboratories |
| 50,600 |
| 1,110 |
| |
Schering-Plough Corp. |
| 22,300 |
| 708 |
| |
Primary Metal Industries (1.7%) |
|
|
|
|
| |
Alcoa, Inc. |
| 23,600 |
| 838 |
| |
Steel Dynamics, Inc. |
| 21,800 |
| 966 |
| |
Printing & Publishing (1.7%) |
|
|
|
|
| |
CBS Corp.-Class B |
| 21,300 |
| 677 |
| |
Meredith Corp. |
| 18,900 |
| 1,095 |
| |
Real Estate (0.5%) |
|
|
|
|
| |
Jones Lang Lasalle, Inc. |
| 5,000 |
| 537 |
| |
Residential Building Construction (0.3%) |
|
|
|
|
| |
DR Horton, Inc. |
| 14,300 |
| 317 |
| |
Restaurants (1.5%) |
|
|
|
|
| |
Brinker International, Inc. |
| 26,000 |
| 809 |
| |
Darden Restaurants, Inc. |
| 19,700 |
| 817 |
| |
Retail Trade (3.6%) |
|
|
|
|
| |
Big Lots, Inc.(‡) |
| 32,500 |
| 1,046 |
| |
Family Dollar Stores, Inc. |
| 24,600 |
| 783 |
| |
Nutri/System, Inc.(‡) |
| 33,300 |
| 2,065 |
| |
Rubber & Misc. Plastic Products (0.5%) |
|
|
|
|
| |
Goodyear Tire & Rubber Co. (The)(‡) |
| 14,900 |
| 496 |
| |
Savings Institutions (0.4%) |
|
|
|
|
| |
IndyMac Bancorp, Inc. |
| 14,100 |
| 426 |
| |
Security & Commodity Brokers (1.6%) |
|
|
|
|
| |
Goldman Sachs Group, Inc. (The) |
| 1,500 |
| 328 |
| |
Lehman Brothers Holdings, Inc. |
| 10,900 |
| 821 |
| |
Merrill Lynch & Co., Inc. |
| 2,500 |
| 226 |
| |
Raymond James Financial, Inc. |
| 11,600 |
| 356 |
| |
Stone, Clay & Glass Products (0.8%) |
|
|
|
|
| |
Eagle Materials, Inc. |
| 12,400 |
| 553 |
| |
Gentex Corp. |
| 18,300 |
| 326 |
| |
Telecommunications (0.8%) |
|
|
|
|
| |
CenturyTel, Inc. |
| 4,200 |
| 193 |
| |
Telephone & Data Systems, Inc. |
| 10,900 |
| 621 |
| |
Toys, Games & Hobbies (1.2%) |
|
|
|
|
| |
Mattel, Inc. |
| 45,300 |
| 1,282 |
| |
Water Transportation (0.5%) |
|
|
|
|
| |
Tidewater, Inc. |
| 7,800 |
| 493 |
| |
Wholesale Trade Durable Goods (1.2%) |
|
|
|
|
| |
Ingram Micro, Inc.-Class A(‡) |
| 33,600 |
| 659 |
| |
Pool Corp. |
| 14,400 |
| 578 |
| |
Wholesale Trade Nondurable Goods (1.3%) |
|
|
|
|
| |
SYSCO Corp. |
| 42,000 |
| 1,375 |
| |
Total Common Stocks (cost: $100,065) |
|
|
| 104,409 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $100,065)(#) |
|
|
| $ | 104,409 |
|
100
SCHEDULE OF INVESTMENTS SOLD SHORT
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
SECURITIES SOLD SHORT (97.4%) |
|
|
|
|
| |
COMMON STOCKS (97.4%) |
|
|
|
|
| |
Aerospace (0.4%) |
|
|
|
|
| |
General Dynamics Corp. |
| (5,600 | ) | $ | (440 | ) |
Air Transportation (1.0%) |
|
|
|
|
| |
Airtran Holdings, Inc.(‡) |
| (46,400 | ) | (511 | ) | |
Alaska Air Group, Inc.(‡) |
| (18,800 | ) | (557 | ) | |
Amusement & Recreation Services (0.5%) |
|
|
|
|
| |
Penn National Gaming, Inc.(‡) |
| (11,500 | ) | (556 | ) | |
Apparel & Accessory Stores (2.6%) |
|
|
|
|
| |
Chico’s FAS, Inc.(‡) |
| (44,400 | ) | (1,170 | ) | |
Pacific Sunwear of California, Inc.(‡) |
| (21,300 | ) | (446 | ) | |
Urban Outfitters, Inc.(‡) |
| (43,500 | ) | (1,121 | ) | |
Apparel Products (0.8%) |
|
|
|
|
| |
Liz Claiborne, Inc. |
| (4,800 | ) | (215 | ) | |
Polo Ralph Lauren Corp. |
| (6,800 | ) | (626 | ) | |
Automotive (0.2%) |
|
|
|
|
| |
Advance Auto Parts, Inc. |
| (5,800 | ) | (239 | ) | |
Beverages (1.0%) |
|
|
|
|
| |
Hansen Natural Corp.(‡) |
| (27,100 | ) | (1,035 | ) | |
Business Services (2.1%) |
|
|
|
|
| |
Brink’s Co. (The) |
| (8,800 | ) | (559 | ) | |
Iron Mountain, Inc.(‡) |
| (25,900 | ) | (728 | ) | |
Lamar Advertising Co. |
| (15,100 | ) | (911 | ) | |
Chemicals & Allied Products (2.5%) |
|
|
|
|
| |
Avon Products, Inc. |
| (13,100 | ) | (521 | ) | |
Church & Dwight Co., Inc. |
| (4,400 | ) | (223 | ) | |
Cytec Industries, Inc. |
| (8,800 | ) | (483 | ) | |
Monsanto Co. |
| (4,100 | ) | (242 | ) | |
Mosaic Co. (The)(‡) |
| (27,900 | ) | (823 | ) | |
RPM, Inc. |
| (16,500 | ) | (351 | ) | |
Commercial Banks (1.8%) |
|
|
|
|
| |
City National Corp. |
| (3,800 | ) | (278 | ) | |
First Horizon National Corp. |
| (13,500 | ) | (529 | ) | |
Wilmington Trust Corp. |
| (9,200 | ) | (372 | ) | |
Zions Bancorp |
| (8,700 | ) | (712 | ) | |
Communication (1.0%) |
|
|
|
|
| |
SBA Communications Corp.(‡) |
| (37,500 | ) | (1,103 | ) | |
Communications Equipment (1.0%) |
|
|
|
|
| |
Ciena Corp.(‡) |
| (21,900 | ) | (639 | ) | |
Motorola, Inc. |
| (21,800 | ) | (378 | ) | |
Computer & Data Processing Services (4.6%) |
|
|
|
|
| |
Adobe Systems, Inc.(‡) |
| (22,100 | ) | (919 | ) | |
BISYS Group (The), Inc.(‡) |
| (94,600 | ) | (1,095 | ) | |
CA, Inc. |
| (37,400 | ) | (1,020 | ) | |
Electronic Arts, Inc.(‡) |
| (21,500 | ) | (1,084 | ) | |
Microsoft Corp. |
| (28,100 | ) | (841 | ) | |
Computer & Office Equipment (3.9%) |
|
|
|
|
| |
Dell, Inc.(‡) |
| (19,800 | ) | (499 | ) | |
Sandisk Corp.(‡) |
| (24,800 | ) | (1,078 | ) | |
Scientific Games Corp.-Class A(‡) |
| (45,800 | ) | (1,525 | ) | |
VeriFone Holdings, Inc.(‡) |
| (8,300 | ) | (293 | ) | |
Zebra Technologies Corp.-Class A(‡) |
| (19,300 | ) | (768 | ) | |
Construction (0.2%) |
|
|
|
|
| |
Fluor Corp. |
| (2,700 | ) | (258 | ) | |
Department Stores (0.8%) |
|
|
|
|
| |
BJ’s Wholesale Club, Inc.(‡) |
| (10,600 | ) | (366 | ) | |
Federated Department Stores, Inc. |
| (12,300 | ) | (540 | ) | |
Educational Services (0.8%) |
|
|
|
|
| |
Career Education Corp.(‡) |
| (28,100 | ) | (830 | ) | |
Electric Services (4.5%) |
|
|
|
|
| |
Black Hills Corp. |
| (21,900 | ) | (872 | ) | |
Dominion Resources, Inc. |
| (12,100 | ) | (1,104 | ) | |
DPL, Inc. |
| (39,200 | ) | (1,229 | ) | |
Integrys Energy Group, Inc. |
| (7,200 | ) | (404 | ) | |
PPL Corp. |
| (15,300 | ) | (667 | ) | |
Progress Energy, Inc. |
| (9,700 | ) | (490 | ) | |
Electric, Gas & Sanitary Services (3.1%) |
|
|
|
|
| |
Exelon Corp. |
| (15,900 | ) | (1,199 | ) | |
101
Public Service Enterprise Group, Inc. |
| (13,300 | ) | (1,150 | ) |
Stericycle, Inc.(‡) |
| (11,100 | ) | (967 | ) |
Electronic & Other Electric Equipment (0.3%) |
|
|
|
|
|
Energizer Holdings, Inc.(‡) |
| (3,400 | ) | (330 | ) |
Electronic Components & Accessories (3.1%) |
|
|
|
|
|
Advanced Micro Devices, Inc.(‡) |
| (82,400 | ) | (1,139 | ) |
Intel Corp. |
| (33,400 | ) | (718 | ) |
Linear Technology Corp. |
| (6,500 | ) | (243 | ) |
Silicon Laboratories, Inc.(‡) |
| (35,800 | ) | (1,175 | ) |
Engineering & Management Services (1.5%) |
|
|
|
|
|
Shaw Group (The), Inc.(‡) |
| (48,400 | ) | (1,570 | ) |
Food & Kindred Products (3.2%) |
|
|
|
|
|
Hershey Co. (The) |
| (19,800 | ) | (1,088 | ) |
Sara Lee Corp. |
| (55,000 | ) | (903 | ) |
Smithfield Foods, Inc.(‡) |
| (10,200 | ) | (312 | ) |
Tyson Foods, Inc.-Class A |
| (53,600 | ) | (1,123 | ) |
Food Stores (2.2%) |
|
|
|
|
|
Panera Bread Co.-Class A(‡) |
| (26,100 | ) | (1,454 | ) |
Ruddick Corp. |
| (31,400 | ) | (943 | ) |
Furniture & Fixtures (1.4%) |
|
|
|
|
|
HNI Corp. |
| (19,700 | ) | (822 | ) |
Johnson Controls, Inc. |
| (6,100 | ) | (624 | ) |
Gas Production & Distribution (2.2%) |
|
|
|
|
|
National Fuel Gas Co. |
| (14,800 | ) | (696 | ) |
Questar Corp. |
| (4,600 | ) | (447 | ) |
Southwestern Energy Co.(‡) |
| (28,400 | ) | (1,193 | ) |
Health Services (2.8%) |
|
|
|
|
|
Covance, Inc.(‡) |
| (4,300 | ) | (260 | ) |
Manor Care, Inc. |
| (11,300 | ) | (733 | ) |
Omnicare, Inc. |
| (28,200 | ) | (935 | ) |
Pediatrix Medical Group, Inc.(‡) |
| (19,100 | ) | (1,090 | ) |
Hotels & Other Lodging Places (0.4%) |
|
|
|
|
|
MGM Mirage, Inc.(‡) |
| (6,800 | ) | (457 | ) |
Industrial Machinery & Equipment (2.1%) |
|
|
|
|
|
AGCO Corp.(‡) |
| (10,000 | ) | (417 | ) |
Deere & Co. |
| (2,000 | ) | (219 | ) |
Flowserve Corp. |
| (11,300 | ) | (689 | ) |
Kennametal, Inc. |
| (3,500 | ) | (247 | ) |
Stanley Works (The) |
| (5,500 | ) | (321 | ) |
Timken Co. |
| (11,300 | ) | (373 | ) |
Instruments & Related Products (1.5%) |
|
|
|
|
|
Bausch & Lomb, Inc. |
| (3,600 | ) | (212 | ) |
Eastman Kodak Co. |
| (28,400 | ) | (707 | ) |
PerkinElmer, Inc. |
| (27,800 | ) | (673 | ) |
Insurance (3.3%) |
|
|
|
|
|
First American Corp. |
| (10,700 | ) | (551 | ) |
Mercury General Corp. |
| (17,800 | ) | (964 | ) |
MGIC Investment Corp. |
| (17,900 | ) | (1,103 | ) |
PMI Group, Inc. (The) |
| (8,600 | ) | (417 | ) |
Travelers Cos., Inc. (The) |
| (8,800 | ) | (476 | ) |
Insurance Agents, Brokers & Service (1.5%) |
|
|
|
|
|
AON Corp. |
| (42,300 | ) | (1,639 | ) |
Leather & Leather Products (0.5%) |
|
|
|
|
|
Timberland Co.-Class A(‡) |
| (19,400 | ) | (501 | ) |
Life Insurance (1.3%) |
|
|
|
|
|
Conseco, Inc.(‡) |
| (80,000 | ) | (1,415 | ) |
Lumber & Other Building Materials (0.5%) |
|
|
|
|
|
Martin Marietta Materials, Inc. |
| (4,000 | ) | (583 | ) |
Lumber & Wood Products (0.7%) |
|
|
|
|
|
Weyerhaeuser Co. |
| (9,737 | ) | (771 | ) |
Management Services (1.0%) |
|
|
|
|
|
Hewitt Associates, Inc.-Class A(‡) |
| (37,100 | ) | (1,104 | ) |
Medical Instruments & Supplies (1.6%) |
|
|
|
|
|
Boston Scientific Corp.(‡) |
| (69,800 | ) | (1,078 | ) |
Resmed, Inc.(‡) |
| (9,900 | ) | (418 | ) |
Respironics, Inc.(‡) |
| (5,800 | ) | (236 | ) |
Mining (2.7%) |
|
|
|
|
|
Foundation Coal Holdings, Inc. |
| (26,400 | ) | (1,040 | ) |
102
Massey Energy Co. |
| (24,600 | ) | (663 | ) | |
Vulcan Materials Co. |
| (9,700 | ) | (1,200 | ) | |
Motion Pictures (0.5%) |
|
|
|
|
| |
Avid Technology, Inc.(‡) |
| (15,700 | ) | (522 | ) | |
Motor Vehicles, Parts & Supplies (0.3%) |
|
|
|
|
| |
BorgWarner, Inc. |
| (4,600 | ) | (358 | ) | |
Oil & Gas Extraction (5.7%) |
|
|
|
|
| |
Diamond Offshore Drilling, Inc. |
| (14,000 | ) | (1,198 | ) | |
Equitable Resources, Inc. |
| (32,700 | ) | (1,701 | ) | |
Pride International, Inc.(‡) |
| (14,400 | ) | (472 | ) | |
Range Resources Corp. |
| (17,300 | ) | (632 | ) | |
Schlumberger, Ltd. |
| (13,400 | ) | (989 | ) | |
Transocean, Inc.(‡) |
| (13,500 | ) | (1,164 | ) | |
Paper & Allied Products (2.8%) |
|
|
|
|
| |
Bowater, Inc. |
| (35,300 | ) | (773 | ) | |
Glatfelter |
| (50,400 | ) | (754 | ) | |
MeadWestvaco Corp. |
| (31,900 | ) | (1,064 | ) | |
Smurfit-Stone Container Corp.(‡) |
| (29,700 | ) | (358 | ) | |
Personal Services (1.1%) |
|
|
|
|
| |
H&R Block, Inc. |
| (37,200 | ) | (841 | ) | |
Regis Corp. |
| (10,100 | ) | (386 | ) | |
Pharmaceuticals (4.6%) |
|
|
|
|
| |
Abbott Laboratories |
| (20,600 | ) | (1,166 | ) | |
Abraxis BioScience, Inc. |
| (11,300 | ) | (311 | ) | |
Allergan, Inc. |
| (6,800 | ) | (824 | ) | |
Barr Pharmaceuticals, Inc.(‡) |
| (23,400 | ) | (1,132 | ) | |
Bristol-Myers Squibb Co. |
| (40,900 | ) | (1,180 | ) | |
Watson Pharmaceuticals, Inc.(‡) |
| (12,800 | ) | (349 | ) | |
Primary Metal Industries (1.0%) |
|
|
|
|
| |
Hubbell, Inc.-Class B |
| (20,200 | ) | (1,044 | ) | |
Printing & Publishing (1.5%) |
|
|
|
|
| |
RH Donnelley Corp.(‡) |
| (20,700 | ) | (1,616 | ) | |
Radio & Television Broadcasting (0.2%) |
|
|
|
|
| |
Entercom Communications Corp. |
| (7,000 | ) | (194 | ) | |
Real Estate (0.9%) |
|
|
|
|
| |
Forest City Enterprises, Inc.-Class A |
| (13,800 | ) | (922 | ) | |
Research & Testing Services (0.5%) |
|
|
|
|
| |
Pharmaceutical Product Development, Inc. |
| (15,500 | ) | (559 | ) | |
Restaurants (1.6%) |
|
|
|
|
| |
Cheesecake Factory (The)(‡) |
| (17,900 | ) | (494 | ) | |
McDonald’s Corp. |
| (7,500 | ) | (362 | ) | |
Starbucks Corp.(‡) |
| (28,400 | ) | (881 | ) | |
Retail Trade (2.3%) |
|
|
|
|
| |
Barnes & Noble, Inc. |
| (5,400 | ) | (213 | ) | |
Borders Group, Inc. |
| (45,200 | ) | (954 | ) | |
Coldwater Creek, Inc.(‡) |
| (42,100 | ) | (871 | ) | |
MSC Industrial Direct Co.-Class A |
| (4,400 | ) | (214 | ) | |
Tiffany & Co. |
| (5,100 | ) | (243 | ) | |
Rubber & Misc. Plastic Products (0.2%) |
|
|
|
|
| |
Newell Rubbermaid, Inc. |
| (7,200 | ) | (221 | ) | |
Security & Commodity Brokers (1.1%) |
|
|
|
|
| |
Nuveen Investments, Inc.-Class A |
| (21,600 | ) | (1,151 | ) | |
Stone, Clay & Glass Products (0.9%) |
|
|
|
|
| |
Owens-IIlinois, Inc.(‡) |
| (31,000 | ) | (933 | ) | |
Telecommunications (1.5%) |
|
|
|
|
| |
Adtran, Inc. |
| (9,400 | ) | (239 | ) | |
AT&T, Inc. |
| (16,200 | ) | (627 | ) | |
NII Holdings, Inc.(‡) |
| (5,300 | ) | (407 | ) | |
Sprint Nextel Corp. |
| (18,600 | ) | (373 | ) | |
Transportation & Public Utilities (1.2%) |
|
|
|
|
| |
Expeditors International of Washington, Inc. |
| (13,200 | ) | (552 | ) | |
GATX Corp. |
| (14,300 | ) | (701 | ) | |
Water Transportation (1.1%) |
|
|
|
|
| |
Alexander & Baldwin, Inc. |
| (22,300 | ) | (1,192 | ) | |
Wholesale Trade Durable Goods (0.2%) |
|
|
|
|
| |
Tech Data Corp.(‡) |
| (6,700 | ) | (238 | ) | |
Wholesale Trade Nondurable Goods (1.6%) |
|
|
|
|
| |
SUPERVALU, Inc. |
| (15,600 | ) | (716 | ) | |
Tractor Supply Co.(‡) |
| (20,200 | ) | (1,045 | ) | |
Total Common Stocks (proceeds: $99,566) |
|
|
| (104,374 | ) | |
|
|
|
|
|
| |
Total Securities Sold Short (proceeds: $99,566) |
|
|
| $ | (104,374 | ) |
103
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) | Non-income producing. | |
|
|
|
| (#) | Aggregate cost for federal income tax purposes is $100,077. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $6,226 and $1,894, respectively. Net unrealized appreciation for tax purposes is $4,332. |
|
|
|
|
| The notes to the financial statements are an integral part of this report. |
104
TA IDEX Neuberger Berman International
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,156.90 |
| 1.06 | % | $ | 5.67 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,019.54 |
| 1.06 | % | 5.31 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
105
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Europe |
| 61.0 | % |
North America |
| 13.3 | % |
Pacific Rim |
| 18.6 | % |
South America |
| 6.0 | % |
Other |
| 1.1 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
106
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
PREFERRED STOCKS (2.4%) |
|
|
|
|
| |
Brazil (0.6%) |
|
|
|
|
| |
Universo Online SA(‡) |
| 577,206 |
| $ | 2,911 |
|
Germany (1.8%) |
|
|
|
|
| |
Porsche AG |
| 5,284 |
| 8,897 |
| |
Total Preferred Stocks (cost: $8,365) |
|
|
| 11,808 |
| |
|
|
|
|
|
| |
COMMON STOCKS (91.4%) |
|
|
|
|
| |
Australia (2.9%) |
|
|
|
|
| |
Paladin Resources, Ltd.(‡) |
| 718,315 |
| 5,740 |
| |
Woodside Petroleum, Ltd. |
| 268,063 |
| 8,795 |
| |
Austria (1.6%) |
|
|
|
|
| |
CAT Oil AG(‡) |
| 168,520 |
| 5,237 |
| |
Zumtobel AG(‡) |
| 82,040 |
| 3,001 |
| |
Belgium (4.4%) |
|
|
|
|
| |
Euronav NV |
| 164,354 |
| 5,543 |
| |
Fortis |
| 98,535 |
| 4,459 |
| |
Icos Vision Systems NV(‡)(†) |
| 51,349 |
| 2,398 |
| |
InBev |
| 122,260 |
| 9,577 |
| |
Bermuda (1.0%) |
|
|
|
|
| |
TPV Technology, Ltd. |
| 7,652,000 |
| 5,156 |
| |
Brazil (5.3%) |
|
|
|
|
| |
Cia Vale do Rio Doce-Class A, ADR |
| 290,440 |
| 9,930 |
| |
M Dias Branco SA |
| 68,610 |
| 965 |
| |
Natura Cosmeticos SA |
| 276,310 |
| 3,276 |
| |
Petroleo Brasileiro SA, ADR(†) |
| 71,935 |
| 7,282 |
| |
Ultrapar Participacoes SA, Sponsored ADR(†)(a) |
| 157,225 |
| 4,865 |
| |
Canada (10.4%) |
|
|
|
|
| |
Addax Petroleum Corp.-144A(‡) |
| 98,900 |
| 3,870 |
| |
Addax Petroleum Corp.-144A |
| 108,285 |
| 4,238 |
| |
Canadian Natural Resources, Ltd. |
| 138,965 |
| 8,317 |
| |
Corus Entertainment, Inc. |
| 150,155 |
| 6,321 |
| |
First Calgary Petroleums, Ltd.(‡) |
| 792,205 |
| 3,032 |
| |
MacDonald Dettwiler & Associates, Ltd.(‡) |
| 218,095 |
| 9,772 |
| |
Stantec, Inc.(‡) |
| 34,600 |
| 1,035 |
| |
Suncor Energy, Inc. |
| 92,533 |
| 7,456 |
| |
Talisman Energy, Inc. |
| 427,450 |
| 8,146 |
| |
France (7.8%) |
|
|
|
|
| |
BNP Paribas |
| 41,726 |
| 4,877 |
| |
Groupe Steria SCA |
| 52,253 |
| 3,619 |
| |
IPSOS |
| 143,592 |
| 5,556 |
| |
Kaufman & Broad SA |
| 64,034 |
| 4,894 |
| |
Pernod-Ricard |
| 5,725 |
| 1,225 |
| |
Societe Generale-Class A |
| 11,585 |
| 2,474 |
| |
Total SA, ADR(†) |
| 76,425 |
| 5,632 |
| |
Vallourec |
| 39,221 |
| 10,812 |
| |
Germany (5.4%) |
|
|
|
|
| |
Continental AG |
| 61,908 |
| 8,658 |
| |
Hypo Real Estate Holding |
| 37,475 |
| 2,514 |
| |
Wacker Chemie AG(‡) |
| 47,375 |
| 8,670 |
| |
Wincor Nixdorf AG |
| 74,479 |
| 7,337 |
| |
Greece (0.9%) |
|
|
|
|
| |
Sarantis SA |
| 113,790 |
| 1,258 |
| |
Titan Cement Co. SA |
| 52,565 |
| 3,013 |
| |
Ireland (9.0%) |
|
|
|
|
| |
Allied Irish Banks PLC |
| 205,307 |
| 6,247 |
| |
Anglo Irish Bank Corp. PLC |
| 717,844 |
| 16,233 |
| |
CRH PLC |
| 261,145 |
| 11,494 |
| |
Depfa Bank PLC |
| 361,320 |
| 6,731 |
| |
Dragon Oil PLC(‡)(a) |
| 1,308,902 |
| 4,515 |
| |
Italy (1.5%) |
|
|
|
|
| |
Marazzi Group SpA |
| 367,102 |
| 5,492 |
| |
Nice SpA(‡) |
| 250,808 |
| 2,175 |
| |
107
Japan (12.5%) |
|
|
|
|
|
Aica Kogyo Co., Ltd. |
| 133,000 |
| 1,691 |
|
Bosch Corp. |
| 364,000 |
| 1,750 |
|
Chiyoda Corp. |
| 253,000 |
| 5,804 |
|
FCC Co, Ltd. |
| 258,800 |
| 5,203 |
|
Gulliver International Co., Ltd. |
| 32,200 |
| 2,007 |
|
Heiwa Corp. |
| 326,700 |
| 4,221 |
|
Hogy Medical Co., Ltd. |
| 48,600 |
| 2,309 |
|
Kaga Electronics Co., Ltd. |
| 147,800 |
| 2,715 |
|
Mars Engineering Corp.(†)(a) |
| 262,300 |
| 5,482 |
|
Maruichi Steel Tube, Ltd. |
| 123,500 |
| 3,718 |
|
Nissan Motor Co., Ltd. |
| 715,700 |
| 7,198 |
|
Nissin Healthcare Food Service Co., Ltd.(a) |
| 68,800 |
| 882 |
|
Pasona, Inc. |
| 1,742 |
| 3,618 |
|
Plenus Co., Ltd. |
| 5,800 |
| 108 |
|
Sankyo Co., Ltd./Gunma |
| 82,300 |
| 3,607 |
|
Sumitomo Metal Industries, Ltd. |
| 945,000 |
| 4,797 |
|
Takuma Co., Ltd. |
| 309,000 |
| 2,013 |
|
Tenma Corp. |
| 79,200 |
| 1,489 |
|
Topcon Corp. |
| 182,400 |
| 2,746 |
|
Yamaha Motor Co., Ltd. |
| 47,500 |
| 1,255 |
|
Luxembourg (0.9%) |
|
|
|
|
|
Tenaris SA, ADR |
| 98,750 |
| 4,578 |
|
Netherlands (1.6%) |
|
|
|
|
|
OPG Groep NV |
| 54,960 |
| 2,000 |
|
Tele Atlas NV(‡)(†) |
| 78,269 |
| 1,631 |
|
Wavin NV |
| 199,626 |
| 4,552 |
|
Norway (1.7%) |
|
|
|
|
|
DnB Nor ASA |
| 334,085 |
| 4,803 |
|
ProSafe SE |
| 242,515 |
| 3,780 |
|
South Korea (2.8%) |
|
|
|
|
|
Daegu Bank |
| 131,210 |
| 2,179 |
|
Hyundai Mobis |
| 32,663 |
| 2,636 |
|
KT Corp. |
| 99,020 |
| 4,464 |
|
SK Telecom Co., Ltd. |
| 21,218 |
| 4,481 |
|
Spain (0.6%) |
|
|
|
|
|
Renta Corp. Real Estate SA |
| 66,815 |
| 2,994 |
|
Sweden (0.4%) |
|
|
|
|
|
Nobia AB |
| 125,925 |
| 1,727 |
|
Switzerland (3.2%) |
|
|
|
|
|
Advanced Digital Broadcast Holdings SA(‡)(a) |
| 60,535 |
| 4,121 |
|
Kloeckner & Co. AG(‡)(†) |
| 106,085 |
| 7,029 |
|
Swiss Reinsurance |
| 51,380 |
| 4,863 |
|
United Kingdom (17.5%) |
|
|
|
|
|
Barclays PLC |
| 254,056 |
| 3,696 |
|
Barratt Developments PLC |
| 253,335 |
| 5,502 |
|
Burren Energy PLC |
| 552,376 |
| 8,904 |
|
GlaxoSmithKline PLC |
| 81,205 |
| 2,353 |
|
Kensington Group PLC |
| 283,465 |
| 3,251 |
|
Lloyds TSB Group PLC |
| 780,985 |
| 9,074 |
|
Northern Rock PLC |
| 190,267 |
| 4,098 |
|
Northgate PLC |
| 158,125 |
| 3,478 |
|
Paragon Group of Cos. PLC |
| 193,695 |
| 2,121 |
|
Punch Taverns PLC |
| 377,953 |
| 9,856 |
|
Raymarine PLC |
| 45,910 |
| 417 |
|
Redrow PLC |
| 567,011 |
| 6,923 |
|
RPS Group PLC |
| 626,553 |
| 4,022 |
|
Tullow Oil PLC |
| 1,023,879 |
| 7,504 |
|
Vodafone Group PLC |
| 4,106,619 |
| 11,785 |
|
William Hill PLC |
| 388,612 |
| 4,671 |
|
Total Common Stocks (cost: $382,643) |
|
|
| 457,943 |
|
108
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (3.7%) |
|
|
|
|
|
Debt (3.7%) |
|
|
|
|
|
Bank Notes (0.2%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 584 |
| 584 |
|
5.27%, due 06/18/2007(*) |
| 584 |
| 584 |
|
Commercial Paper (0.8%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 233 |
| 233 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 226 |
| 226 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 155 |
| 155 |
|
5.29%, due 06/13/2007 |
| 117 |
| 117 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 117 |
| 117 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 117 |
| 117 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 117 |
| 117 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 117 |
| 117 |
|
5.28%, due 05/24/2007 |
| 117 |
| 117 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 233 |
| 233 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 229 |
| 229 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 233 |
| 233 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 233 |
| 233 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 462 |
| 462 |
|
5.30%, due 05/29/2007 |
| 117 |
| 117 |
|
5.29%, due 05/31/2007 |
| 117 |
| 117 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 117 |
| 117 |
|
5.29%, due 05/17/2007 |
| 117 |
| 117 |
|
5.28%, due 06/01/2007 |
| 117 |
| 117 |
|
5.29%, due 06/19/2007 |
| 154 |
| 154 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 175 |
| 175 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 117 |
| 117 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 233 |
| 233 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 117 |
| 117 |
|
Euro Dollar Overnight (0.4%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 117 |
| 117 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 233 |
| 233 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 233 |
| 233 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 233 |
| 233 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 234 |
| 234 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 234 |
| 234 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 234 |
| 234 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 117 |
| 117 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 234 |
| 234 |
|
109
Svenska Handlesbanken |
|
|
|
|
| |
5.31%, due 05/01/2007 |
| 443 |
| 443 |
| |
Euro Dollar Terms (1.4%) |
|
|
|
|
| |
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
| |
5.31%, due 05/14/2007 |
| 234 |
| 234 |
| |
Bank of Montreal |
|
|
|
|
| |
5.28%, due 05/18/2007 |
| 117 |
| 117 |
| |
Bank of Nova Scotia |
|
|
|
|
| |
5.28%, due 05/09/2007 |
| 163 |
| 163 |
| |
Barclays |
|
|
|
|
| |
5.29%, due 05/07/2007 |
| 234 |
| 234 |
| |
5.30%, due 05/16/2007 |
| 234 |
| 234 |
| |
5.29%, due 05/21/2007 |
| 117 |
| 117 |
| |
5.30%, due 06/04/2007 |
| 117 |
| 117 |
| |
5.29%, due 06/08/2007 |
| 234 |
| 234 |
| |
Calyon |
|
|
|
|
| |
5.30%, due 05/17/2007 |
| 117 |
| 117 |
| |
5.31%, due 05/24/2007 |
| 234 |
| 234 |
| |
Canadian Imperial Bank of Commerce |
|
|
|
|
| |
5.28%, due 05/16/2007 |
| 350 |
| 350 |
| |
5.28%, due 05/29/2007 |
| 117 |
| 117 |
| |
Credit Suisse First Boston Corp. |
|
|
|
|
| |
5.30%, due 05/17/2007 |
| 234 |
| 234 |
| |
Deutsche Bank |
|
|
|
|
| |
5.30%, due 05/15/2007 |
| 234 |
| 234 |
| |
Fortis Bank |
|
|
|
|
| |
5.28%, due 05/21/2007 |
| 350 |
| 350 |
| |
5.28%, due 05/25/2007 |
| 350 |
| 350 |
| |
5.30%, due 06/25/2007 |
| 234 |
| 234 |
| |
HBOS Halifax Bank of Scotland |
|
|
|
|
| |
5.30%, due 06/13/2007 |
| 350 |
| 350 |
| |
Royal Bank of Scotland |
|
|
|
|
| |
5.30%, due 05/08/2007 |
| 234 |
| 234 |
| |
5.30%, due 05/09/2007 |
| 117 |
| 117 |
| |
5.31%, due 05/25/2007 |
| 234 |
| 234 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
| |
5.28%, due 05/15/2007 |
| 117 |
| 117 |
| |
Swedbank AB |
|
|
|
|
| |
5.30%, due 05/11/2007 |
| 234 |
| 234 |
| |
Toronto Dominion Bank |
|
|
|
|
| |
5.28%, due 05/10/2007 |
| 234 |
| 234 |
| |
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 234 |
| 234 |
| |
5.29%, due 06/12/2007 |
| 467 |
| 467 |
| |
5.29%, due 06/15/2007 |
| 350 |
| 350 |
| |
5.29%, due 06/18/2007 |
| 584 |
| 584 |
| |
Repurchase Agreements (0.9%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $647 on 05/01/2007 |
| 647 |
| 647 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,571 on 05/01/2007 |
| 2,570 |
| 2,570 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,126on 05/01/2007 |
| 1,126 |
| 1,126 |
| |
Total Security Lending Collateral (cost: $18,735) |
|
|
| 18,735 |
| |
Total Investment Securities (cost: $409,743)(#) |
|
|
| $ | 488,486 |
|
110
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) Non-income producing.
(†) At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $18,003.
(a) Security is deemed to be illiquid.
(*) Floating or variable rate note. Rate is listed as of April 30, 2007.
(††) Cash collateral for the Repurchase Agreements, valued at $4,455, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively.
(#) Aggregate cost for federal income tax purposes is $409,941. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $90,284 and $11,739, respectively. Net unrealized appreciation for tax purposes is $78,545.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $11,612 or 2.3% of the net assets of the Fund.
ADR American Depositary Receipt
The notes to the financial statements are an integral part of this report.
111
|
| Percentage of |
|
|
| |
|
| Net Assets |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Oil & Gas Extraction |
| 16.7 | % | $ | 83,830 |
|
Commercial Banks |
| 12.6 | % | 63,288 |
| |
Business Services |
| 4.5 | % | 22,425 |
| |
Telecommunications |
| 4.1 | % | 20,730 |
| |
Chemicals & Allied Products |
| 3.9 | % | 19,760 |
| |
Primary Metal Industries |
| 3.9 | % | 19,328 |
| |
Automotive |
| 3.2 | % | 16,094 |
| |
Lumber & Other Building Materials |
| 3.2 | % | 16,046 |
| |
Metal Mining |
| 3.1 | % | 15,670 |
| |
Computer & Data Processing Services |
| 3.1 | % | 15,498 |
| |
Manufacturing Industries |
| 2.7 | % | 13,727 |
| |
Electronic & Other Electric Equipment |
| 2.5 | % | 12,614 |
| |
Residential Building Construction |
| 2.5 | % | 12,425 |
| |
Restaurants |
| 2.2 | % | 10,846 |
| |
Beverages |
| 2.2 | % | 10,802 |
| |
Motor Vehicles, Parts & Supplies |
| 1.9 | % | 9,588 |
| |
Engineering & Management Services |
| 1.8 | % | 8,852 |
| |
Rubber & Misc. Plastic Products |
| 1.7 | % | 8,658 |
| |
Petroleum Refining |
| 1.5 | % | 7,456 |
| |
Wholesale Trade Durable Goods |
| 1.4 | % | 7,029 |
| |
Radio & Television Broadcasting |
| 1.3 | % | 6,321 |
| |
Water Transportation |
| 1.1 | % | 5,542 |
| |
Security & Commodity Brokers |
| 1.1 | % | 5,372 |
| |
Computer & Office Equipment |
| 1.0 | % | 5,156 |
| |
Electronic Components & Accessories |
| 1.0 | % | 5,113 |
| |
Medical Instruments & Supplies |
| 1.0 | % | 5,055 |
| |
Construction |
| 1.0 | % | 4,894 |
| |
Insurance |
| 1.0 | % | 4,863 |
| |
Amusement & Recreation Services |
| 0.9 | % | 4,671 |
| |
Pharmaceuticals |
| 0.9 | % | 4,353 |
| |
Mortgage Bankers & Brokers |
| 0.8 | % | 4,098 |
| |
Electric, Gas & Sanitary Services |
| 0.8 | % | 4,022 |
| |
Stone, Clay & Glass Products |
| 0.6 | % | 3,013 |
| |
Real Estate |
| 0.6 | % | 2,994 |
| |
Instruments & Related Products |
| 0.4 | % | 2,175 |
| |
Automotive Dealers |
| 0.4 | % | 2,007 |
| |
Furniture & Fixtures |
| 0.4 | % | 1,727 |
| |
Fabricated Metal Products |
| 0.3 | % | 1,489 |
| |
Transportation Equipment |
| 0.3 | % | 1,255 |
| |
Food & Kindred Products |
| 0.2 | % | 965 |
| |
Investment Securities, at value |
| 93.8 | % | 469,751 |
| |
Short-Term Investments |
| 3.7 | % | 18,735 |
| |
Total Investment Securities |
| 97.5 | % | $ | 488,486 |
|
112
TA IDEX Oppenheimer Developing Markets
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,188.90 |
| 1.32 | % | $ | 7.16 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,018.25 |
| 1.32 | % | 6.61 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
113
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Africa |
| 7.5 | % |
Asia |
| 14.1 | % |
Eastern Europe |
| 3.3 | % |
Europe |
| 9.6 | % |
Latin America |
| 5.1 | % |
North America |
| 4.8 | % |
Other |
| 4.4 | % |
Pacific Rim |
| 35.4 | % |
South America |
| 15.8 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
114
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
PREFERRED STOCKS (5.2%) |
|
|
|
|
| |
Brazil (5.0%) |
|
|
|
|
| |
All America Latina Logistica SA |
| 716,000 |
| $ | 8,455 |
|
Banco Bradesco SA |
| 205,580 |
| 4,380 |
| |
Eletropaulo Metropolitana de Sao Paulo SA -Class B |
| 27,100,900 |
| 1,394 |
| |
Lojas Americanas SA |
| 59,851,000 |
| 3,799 |
| |
Sadia SA |
| 1,267,000 |
| 5,448 |
| |
Tele Norte Leste Participacoes SA |
| 34,000 |
| 561 |
| |
South Korea (0.2%) |
|
|
|
|
| |
Hyundai Motor Co. |
| 14,320 |
| 492 |
| |
S-Oil Corp. |
| 8,592 |
| 507 |
| |
Total Preferred Stocks (cost: $17,327) |
|
|
| 25,036 |
| |
|
|
|
|
|
| |
COMMON STOCKS (89.1%) |
|
|
|
|
| |
Bermuda (0.4%) |
|
|
|
|
| |
Bunge, Ltd.(†) |
| 14,700 |
| 1,114 |
| |
Varitronix International, Ltd. |
| 1,170,000 |
| 784 |
| |
Brazil (10.6%) |
|
|
|
|
| |
All America Latina Logistica SA, GDR-144A(a) |
| 48,800 |
| 576 |
| |
Aracruz Celulose SA, Sponsored ADR |
| 23,400 |
| 1,287 |
| |
Banco Bradesco SA, Sponsored ADR |
| 111,200 |
| 2,360 |
| |
BR Malls Participacoes SA(‡) |
| 49,000 |
| 359 |
| |
Brascan Residential Properties SA |
| 25,000 |
| 190 |
| |
Camargo Correa Desenvolvimento Imobiliario SA |
| 138,500 |
| 763 |
| |
Cia Brasileira de Distribuicao Grupo Pao de Acucar, ADR(‡) |
| 38,619 |
| 1,230 |
| |
Cia de Bebidas das Americas, ADR |
| 10,300 |
| 588 |
| |
Cia Vale do Rio Doce, ADR(†) |
| 150,600 |
| 6,116 |
| |
Cia Vale do Rio Doce-Class A, ADR |
| 131,200 |
| 4,486 |
| |
Cyrela Brazil Realty SA, GDR-144A(‡)(a) |
| 16,400 |
| 3,534 |
| |
Diagnosticos da America SA |
| 91,200 |
| 1,974 |
| |
Gafisa SA |
| 62,400 |
| 879 |
| |
Iguatemi Empresa de Shopping Centers SA |
| 14,000 |
| 221 |
| |
Lupatech SA |
| 8,000 |
| 150 |
| |
Natura Cosmeticos SA |
| 83,200 |
| 987 |
| |
Petroleo Brasileiro SA, ADR(†) |
| 211,406 |
| 21,136 |
| |
Tele Norte Leste Participacoes SA |
| 109,000 |
| 3,529 |
| |
Canada (0.3%) |
|
|
|
|
| |
Yamana Gold, Inc.(†) |
| 123,300 |
| 1,723 |
| |
Cayman Islands (0.3%) |
|
|
|
|
| |
Hutchison Telecommunications International, Ltd.(‡) |
| 759,000 |
| 1,557 |
| |
China (2.5%) |
|
|
|
|
| |
China Oilfield Services, Ltd.(‡) |
| 648,000 |
| 553 |
| |
China Petroleum & Chemical Corp.-Class H |
| 4,692,000 |
| 4,127 |
| |
China Shenhua Energy Co., Ltd.-Class H |
| 1,315,500 |
| 3,287 |
| |
PetroChina Co., Ltd.-Class H |
| 1,782,000 |
| 2,030 |
| |
Yanzhou Coal Mining Co., Ltd. |
| 1,697,000 |
| 1,734 |
| |
Denmark (0.3%) |
|
|
|
|
| |
FLSmidth & Co. A/S-Class B |
| 19,500 |
| 1,489 |
| |
Egypt (2.7%) |
|
|
|
|
| |
Commercial International Bank, GDR |
| 184,250 |
| 1,914 |
| |
Commercial International Bank, GDR-144A(‡)(a) |
| 109,000 |
| 1,132 |
| |
Eastern Tobacco |
| 35,988 |
| 2,630 |
| |
Medinet Nasr Housing |
| 66,336 |
| 2,042 |
| |
Orascom Telecom Holding SAE |
| 360,595 |
| 4,967 |
| |
France (0.9%) |
|
|
|
|
| |
Technip SA |
| 52,380 |
| 4,131 |
| |
Hong Kong (1.3%) |
|
|
|
|
| |
China Mobile, Ltd., Sponsored ADR |
| 127,800 |
| 5,752 |
| |
Techtronic Industries Co. |
| 4,000 |
| 5 |
| |
Television Broadcasts, Ltd. |
| 64,000 |
| 424 |
| |
India (14.1%) |
|
|
|
|
| |
Amtek Auto, Ltd. |
| 378,500 |
| 3,541 |
| |
115
Bajaj Auto, Ltd. |
| 46,800 |
| 2,778 |
|
Bharat Electronics, Ltd. |
| 75,200 |
| 3,134 |
|
Bharat Forge, Ltd. |
| 27,500 |
| 216 |
|
Bharat Heavy Electricals |
| 24,392 |
| 1,473 |
|
Bharti Televentures(‡) |
| 332,900 |
| 6,563 |
|
GAIL India, Ltd. |
| 185,815 |
| 1,334 |
|
Gateway Distriparks, Ltd. |
| 24,034 |
| 102 |
|
HCL Technologies, Ltd. |
| 275,740 |
| 2,237 |
|
HDFC Bank, Ltd., ADR |
| 6,700 |
| 487 |
|
Hero Honda Motors, Ltd. |
| 25,651 |
| 426 |
|
Housing Development Finance Corp. |
| 187,400 |
| 7,551 |
|
ICICI Bank, Ltd., Sponsored ADR(†) |
| 129,800 |
| 5,311 |
|
Idea Cellular, Ltd.(‡) |
| 127,301 |
| 354 |
|
Infosys Technologies, Ltd. |
| 127,400 |
| 6,339 |
|
ITC, Ltd. |
| 389,300 |
| 1,512 |
|
Larsen & Toubro, Ltd. |
| 167,500 |
| 6,898 |
|
Mahindra & Mahindra, Ltd. |
| 185,189 |
| 3,502 |
|
Reliance Capital, Ltd. |
| 100,700 |
| 1,743 |
|
Reliance Industries, Ltd. |
| 111,600 |
| 4,227 |
|
Reliance Natural Resources, Ltd.(‡) |
| 210,000 |
| 131 |
|
Rico Auto Industries, Ltd. |
| 357,800 |
| 406 |
|
Siemens India, Ltd. |
| 40,800 |
| 1,166 |
|
Tata Consultancy Services, Ltd. |
| 163,321 |
| 5,019 |
|
Trent, Ltd. |
| 27,907 |
| 495 |
|
Indonesia (5.6%) |
|
|
|
|
|
Aneka Tambang Tbk PT |
| 3,736,900 |
| 6,418 |
|
Astra International Tbk PT |
| 1,328,000 |
| 2,105 |
|
Bank Mandiri Persero Tbk PT |
| 4,978,000 |
| 1,685 |
|
Gudang Garam Tbk PT |
| 2,018,349 |
| 2,411 |
|
Indosat Tbk PT |
| 9,597,500 |
| 7,185 |
|
Ramayana Lestari Sentosa Tbk PT |
| 2,843,900 |
| 250 |
|
Telekomunikasi Indonesia Tbk PT |
| 5,584,500 |
| 6,456 |
|
Israel (1.0%) |
|
|
|
|
|
Bank Hapoalim, Ltd. |
| 258,544 |
| 1,358 |
|
Bank Leumi Le-Israel |
| 333,700 |
| 1,262 |
|
Elbit Systems, Ltd. |
| 6,254 |
| 255 |
|
Israel Discount Bank, Ltd.-Class A(‡) |
| 758,100 |
| 1,595 |
|
Makhteshim-Agan Industries, Ltd. |
| 23,100 |
| 168 |
|
Ormat Industries |
| 23,500 |
| 283 |
|
Luxembourg (0.5%) |
|
|
|
|
|
Tenaris SA, ADR |
| 47,700 |
| 2,211 |
|
Malaysia (0.3%) |
|
|
|
|
|
Commerce Asset Holdings Berhad |
| 123,300 |
| 389 |
|
IOI Corp. Berhad |
| 80,400 |
| 593 |
|
Kuala Lumpur Kepong Berhad |
| 51,100 |
| 194 |
|
Malaysia International Shipping Corp. Berhad |
| 21,500 |
| 61 |
|
Maxis Communications Berhad |
| 71,900 |
| 273 |
|
SP Setia Berhad |
| 67,500 |
| 163 |
|
Mexico (4.6%) |
|
|
|
|
|
America Movil SAB de CV, Series L, ADR |
| 130,300 |
| 6,845 |
|
Consorcio ARA SAB de CV |
| 681,700 |
| 1,117 |
|
Corporacion Geo SAB de CV(‡) |
| 181,100 |
| 996 |
|
Corporacion Interamericana de Entretenimiento SAB(‡) |
| 297,700 |
| 817 |
|
Empresas ICA Sociedad Controladora SA de CV(‡) |
| 645,600 |
| 2,553 |
|
Fomento Economico Mexicano SAB, Sponsored ADR |
| 25,300 |
| 2,725 |
|
Grupo Financiero Banorte SAB de CV Series O |
| 103,600 |
| 451 |
|
Grupo Financiero Inbursa SA-Class O |
| 629,700 |
| 1,256 |
|
Impulsora Del Desarrollo Y El Empleo en America Latina SA de CV(‡) |
| 1,450,300 |
| 1,818 |
|
Sare Holding SA de CV-Class B(‡) |
| 1,988,656 |
| 3,331 |
|
Norway (0.3%) |
|
|
|
|
|
DET Norske Oljeselskap(†)(‡) |
| 771,500 |
| 1,531 |
|
Panama (0.5%) |
|
|
|
|
|
Banco Latinoamericano de Exportaciones SA |
| 118,400 |
| 2,319 |
|
116
Philippine Islands (1.3%) |
|
|
|
|
|
Jollibee Foods Corp. |
| 1,310,000 |
| 1,362 |
|
SM Prime Holdings |
| 19,802,241 |
| 4,783 |
|
Portugal (0.2%) |
|
|
|
|
|
Jeronimo Martins |
| 38,300 |
| 1,098 |
|
Russia (5.5%) |
|
|
|
|
|
Integra Group Holdings, GDR(‡) |
| 25,900 |
| 544 |
|
LUKOIL, ADR(†) |
| 76,200 |
| 6,096 |
|
MMC Norilsk Nickel, ADR |
| 12,700 |
| 2,451 |
|
OAO Gazprom, ADR |
| 144,800 |
| 5,770 |
|
OAO TMK, GDR-144A(‡)(a) |
| 113,700 |
| 4,139 |
|
Polymetal, GDR-144A(‡)(a) |
| 271,500 |
| 1,846 |
|
Surgutneftegaz OJSC, Sponsored ADR(†) |
| 77,360 |
| 5,021 |
|
Surgutneftegaz, ADR(†) |
| 5,000 |
| 323 |
|
Singapore (0.9%) |
|
|
|
|
|
Keppel Corp., Ltd. |
| 200,000 |
| 2,816 |
|
SembCorp Marine, Ltd. |
| 715,000 |
| 1,703 |
|
South Africa (7.5%) |
|
|
|
|
|
Anglo Platinum, Ltd. |
| 56,200 |
| 9,145 |
|
AngloGold Ashanti, Ltd., ADR |
| 142,700 |
| 6,360 |
|
Aspen Pharmacare Holdings, Ltd.(‡) |
| 133,586 |
| 734 |
|
Aveng, Ltd. |
| 93,291 |
| 640 |
|
Harmony Gold Mining Co., Ltd., ADR(†)(‡) |
| 167,100 |
| 2,654 |
|
Impala Platinum Holdings, Ltd. |
| 133,400 |
| 4,360 |
|
JD Group, Ltd. |
| 39,600 |
| 526 |
|
Liberty Group, Ltd. |
| 91,400 |
| 1,198 |
|
Massmart Holdings, Ltd. |
| 214,100 |
| 2,986 |
|
Murray & Roberts Holdings, Ltd. |
| 353,370 |
| 3,056 |
|
Steinhoff International Holdings, Ltd. |
| 787,900 |
| 2,805 |
|
Tiger Brands, Ltd. |
| 37,205 |
| 1,048 |
|
South Korea (12.7%) |
|
|
|
|
|
Amorepacific Corp. |
| 3,506 |
| 2,268 |
|
Daegu Bank |
| 67,990 |
| 1,129 |
|
Daewoo Shipbuilding & Marine Engineering Co., Ltd. |
| 28,100 |
| 1,143 |
|
FINETEC Corp. |
| 66,694 |
| 1,247 |
|
GS Engineering & Construction Corp. |
| 13,311 |
| 1,332 |
|
Hana Financial Group, Inc. |
| 24,650 |
| 1,298 |
|
Humax Co., Ltd. |
| 94,970 |
| 2,189 |
|
Hyundai Development Co. |
| 24,430 |
| 1,415 |
|
Hyundai Engineering & Construction, Co., Inc.(‡) |
| 46,648 |
| 2,807 |
|
Hyundai Motor Co. |
| 39,118 |
| 2,493 |
|
Jeonbuk Bank |
| 119,023 |
| 1,138 |
|
Kia Motors Corp.(‡) |
| 188,110 |
| 2,244 |
|
Kookmin Bank, ADR |
| 28,300 |
| 2,542 |
|
Korea Exchange Bank |
| 65,460 |
| 1,069 |
|
Korea Investment Holdings Co., Ltd. |
| 38,820 |
| 2,315 |
|
Kyeryong Construction Industrial Co., Ltd. |
| 23,880 |
| 1,115 |
|
LG Corp. |
| 24,990 |
| 919 |
|
LG.Philips LCD Co., Ltd.(‡) |
| 23,705 |
| 973 |
|
Mirae Asset Securities Co., Ltd. |
| 32,990 |
| 2,163 |
|
Pacific Corp. |
| 1,953 |
| 367 |
|
Pusan Bank |
| 77,750 |
| 1,149 |
|
Samsung Electronics Co., Ltd. |
| 23,030 |
| 14,207 |
|
Samsung Heavy Industries Co., Ltd. |
| 46,230 |
| 1,525 |
|
Shinhan Financial Group Co., Ltd. |
| 29,510 |
| 1,678 |
|
Shinsegae Co., Ltd. |
| 3,466 |
| 2,369 |
|
S-Oil Corp. |
| 34,234 |
| 2,642 |
|
Ssangyong Motor Co.(‡) |
| 468,184 |
| 3,421 |
|
Telechips, Inc. |
| 4,747 |
| 81 |
|
Woori Finance Holdings Co., Ltd. |
| 54,200 |
| 1,357 |
|
Taiwan (9.2%) |
|
|
|
|
|
Cathay Financial Holding Co., Ltd. |
| 1,876,180 |
| 3,818 |
|
Chi Mei Optoelectronics Corp. |
| 1,305,000 |
| 1,471 |
|
Continental Engineering Corp. |
| 601,290 |
| 476 |
|
Far Eastern Textile Co., Ltd. |
| 707,740 |
| 647 |
|
Fubon Financial Holding Co., Ltd. |
| 2,580,000 |
| 2,246 |
|
117
High Tech Computer Corp. |
| 12,800 |
| 192 |
|
Hon Hai Precision Industry Co., Ltd. |
| 1,393,800 |
| 9,267 |
|
Inventec Appliances Corp. |
| 823,300 |
| 1,527 |
|
Inventec Co., Ltd. |
| 2,256,960 |
| 1,673 |
|
Lite-On Technology Corp. |
| 1,775,113 |
| 2,203 |
|
MediaTek, Inc. |
| 166,000 |
| 2,083 |
|
Powerchip Semiconductor Corp. |
| 108,624 |
| 66 |
|
President Chain Store Corp. |
| 523,000 |
| 1,344 |
|
Quanta Computer, Inc. |
| 1,931,163 |
| 2,782 |
|
Shin Kong Financial Holding Co., Ltd. |
| 371,418 |
| 346 |
|
Sunplus Technology Co., Ltd. |
| 1,127,058 |
| 2,470 |
|
Synnex Technology International Corp. |
| 1,465,300 |
| 1,854 |
|
Taiwan Fertilizer Co., Ltd. |
| 110,000 |
| 202 |
|
Taiwan Semiconductor Manufacturing Co., Ltd. |
| 1,901,000 |
| 3,920 |
|
Uni-President Enterprises Corp. |
| 564,700 |
| 558 |
|
United Microelectronics Corp. |
| 7,829,086 |
| 4,488 |
|
Thailand (1.2%) |
|
|
|
|
|
Advanced Info Service PCL |
| 633,200 |
| 1,420 |
|
Bangkok Bank PCL-(Foreign Registered) |
| 102,700 |
| 334 |
|
Kasikornbank PCL |
| 92,200 |
| 188 |
|
Kiatnakin Bank PCL |
| 883,087 |
| 749 |
|
Krung Thai Bank PCL |
| 537,000 |
| 168 |
|
Siam Commercial Bank PCL |
| 52,800 |
| 101 |
|
Tisco Bank PCL |
| 1,305,200 |
| 845 |
|
TMB Bank PCL(‡) |
| 33,300,394 |
| 1,714 |
|
True Corp. PCL(‡) |
| 1,124,000 |
| 197 |
|
Turkey (3.3%) |
|
|
|
|
|
Aksigorta AS |
| 548,000 |
| 2,589 |
|
Anadolu Sigorta |
| 13,767 |
| 29 |
|
Ford Otomotiv Sanayi AS |
| 119,859 |
| 1,027 |
|
Haci Omer Sabanci Holding |
| 529,100 |
| 2,345 |
|
Haci Omer Sabanci Holding AS, ADR |
| 731,350 |
| 810 |
|
KOC Holding AS(‡) |
| 663,928 |
| 3,283 |
|
Tupras-Turkiye Petrol Rafine |
| 107,100 |
| 2,197 |
|
Turkiye Is Bankasi |
| 1 |
| — | (o) |
Turkiye Vakiflar Bankasi Tao |
| 1,209,452 |
| 3,290 |
|
United Kingdom (0.4%) |
|
|
|
|
|
Highland Gold Mining, Ltd.(‡) |
| 494,415 |
| 1,740 |
|
United States (0.7%) |
|
|
|
|
|
Hydril(‡) |
| 35,700 |
| 3,456 |
|
Total Common Stocks (cost: $343,329) |
|
|
| 423,953 |
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (5.3%) |
|
|
|
|
|
Debt (5.3%) |
|
|
|
|
|
Bank Notes (0.3%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 781 |
| 781 |
|
5.27%, due 06/18/2007(*) |
| 781 |
| 781 |
|
Commercial Paper (1.2%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 312 |
| 312 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 303 |
| 303 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 208 |
| 208 |
|
5.29%, due 06/13/2007 |
| 156 |
| 156 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 156 |
| 156 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 156 |
| 156 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 156 |
| 156 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 156 |
| 156 |
|
118
5.28%, due 05/24/2007 |
| 156 |
| 156 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 313 |
| 313 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 306 |
| 306 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 313 |
| 313 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 313 |
| 313 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 618 |
| 618 |
|
5.30%, due 05/29/2007 |
| 156 |
| 156 |
|
5.29%, due 05/31/2007 |
| 156 |
| 156 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 156 |
| 156 |
|
5.29%, due 05/17/2007 |
| 156 |
| 156 |
|
5.28%, due 06/01/2007 |
| 156 |
| 156 |
|
5.29%, due 06/19/2007 |
| 206 |
| 206 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 234 |
| 234 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 156 |
| 156 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 313 |
| 313 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 156 |
| 156 |
|
Euro Dollar Overnight (0.7%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 156 |
| 156 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 313 |
| 313 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 313 |
| 313 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 313 |
| 313 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 313 |
| 313 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 313 |
| 313 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 313 |
| 313 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 156 |
| 156 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 313 |
| 313 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 593 |
| 593 |
|
Euro Dollar Terms (1.9%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 313 |
| 313 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 156 |
| 156 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 219 |
| 219 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 312 |
| 312 |
|
5.30%, due 05/16/2007 |
| 313 |
| 313 |
|
5.29%, due 05/21/2007 |
| 156 |
| 156 |
|
5.30%, due 06/04/2007 |
| 156 |
| 156 |
|
5.29%, due 06/08/2007 |
| 312 |
| 312 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 156 |
| 156 |
|
5.31%, due 05/24/2007 |
| 312 |
| 312 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 469 |
| 469 |
|
119
5.28%, due 05/29/2007 |
| 156 |
| 156 |
| |
Credit Suisse First Boston Corp. |
|
|
|
|
| |
5.30%, due 05/17/2007 |
| 312 |
| 312 |
| |
Deutsche Bank |
|
|
|
|
| |
5.30%, due 05/15/2007 |
| 312 |
| 312 |
| |
Fortis Bank |
|
|
|
|
| |
5.28%, due 05/21/2007 |
| 469 |
| 469 |
| |
5.28%, due 05/25/2007 |
| 469 |
| 469 |
| |
5.30%, due 06/25/2007 |
| 312 |
| 312 |
| |
HBOS Halifax Bank of Scotland |
|
|
|
|
| |
5.30%, due 06/13/2007 |
| 469 |
| 469 |
| |
Royal Bank of Scotland |
|
|
|
|
| |
5.30%, due 05/08/2007 |
| 312 |
| 312 |
| |
5.30%, due 05/09/2007 |
| 156 |
| 156 |
| |
5.31%, due 05/25/2007 |
| 313 |
| 312 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
| |
5.28%, due 05/15/2007 |
| 156 |
| 156 |
| |
Swedbank AB |
|
|
|
|
| |
5.30%, due 05/11/2007 |
| 312 |
| 312 |
| |
Toronto Dominion Bank |
|
|
|
|
| |
5.28%, due 05/10/2007 |
| 312 |
| 312 |
| |
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 312 |
| 312 |
| |
5.29%, due 06/12/2007 |
| 625 |
| 625 |
| |
5.29%, due 06/15/2007 |
| 469 |
| 469 |
| |
5.29%, due 06/18/2007 |
| 781 |
| 781 |
| |
Repurchase Agreements (1.2%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $865 on 05/01/2007 |
| 865 |
| 865 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $3,437 on 05/01/2007 |
| 3,437 |
| 3,437 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,506 on 05/01/2007 |
| 1,505 |
| 1,505 |
| |
Total Security Lending Collateral (cost: $25,052) |
|
|
| 25,052 |
| |
Total Investment Securities (cost: $385,708)(#) |
|
|
| $ | 474,041 |
|
NOTES TO SCHEDULE OF INVESTMENTS:
(†) At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $23,918.
(‡) Non-income producing.
(a) Security is deemed to be illiquid.
(*) Floating or variable rate note. Rate is listed as of April 30, 2007.
(††) Cash collateral for the Repurchase Agreements, valued at $5,957, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively.
(o) Value is less than $1.
(#) Aggregate cost for federal income tax purposes is $386,953. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $97,544 and $10,456, respectively. Net unrealized appreciation for tax purposes is $87,088.
120
DEFINITIONS:
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 April 30, 2007, these securities aggregated $15,913 or 3.3% of the net assets of the Fund.
ADR American Depositary Receipt
GDR Global Depositary Receipt
The notes to the financial statements are an integral part of this report.
121
|
| Percentage of |
|
|
| |
|
| Net Assets |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Commercial Banks |
| 10.9 | % | $ | 51,767 |
|
Metal Mining |
| 9.9 | % | 47,298 |
| |
Telecommunications |
| 9.6 | % | 45,658 |
| |
Oil & Gas Extraction |
| 9.2 | % | 43,572 |
| |
Electronic Components & Accessories |
| 4.6 | % | 21,882 |
| |
Holding & Other Investment Offices |
| 4.1 | % | 19,720 |
| |
Automotive |
| 3.4 | % | 16,383 |
| |
Electronic & Other Electric Equipment |
| 3.3 | % | 15,680 |
| |
Computer & Data Processing Services |
| 3.1 | % | 14,885 |
| |
Construction |
| 2.6 | % | 12,200 |
| |
Computer & Office Equipment |
| 2.4 | % | 11,470 |
| |
Security & Commodity Brokers |
| 2.3 | % | 10,970 |
| |
Real Estate |
| 2.3 | % | 10,892 |
| |
Railroads |
| 1.9 | % | 9,031 |
| |
Chemicals & Allied Products |
| 1.7 | % | 8,219 |
| |
Food & Kindred Products |
| 1.7 | % | 8,168 |
| |
Industrial Machinery & Equipment |
| 1.6 | % | 7,651 |
| |
Gas Production & Distribution |
| 1.5 | % | 7,104 |
| |
Residential Building Construction |
| 1.4 | % | 6,788 |
| |
Tobacco Products |
| 1.4 | % | 6,553 |
| |
Petroleum Refining |
| 1.1 | % | 5,476 |
| |
Retail Trade |
| 1.1 | % | 5,355 |
| |
Engineering & Management Services |
| 1.1 | % | 5,027 |
| |
Mining |
| 1.1 | % | 5,020 |
| |
Management Services |
| 1.1 | % | 5,019 |
| |
Transportation Equipment |
| 0.9 | % | 4,371 |
| |
Fabricated Metal Products |
| 0.9 | % | 4,139 |
| |
Department Stores |
| 0.9 | % | 4,050 |
| |
Communications Equipment |
| 0.8 | % | 3,717 |
| |
Beverages |
| 0.7 | % | 3,313 |
| |
Furniture & Fixtures |
| 0.6 | % | 2,805 |
| |
Insurance |
| 0.5 | % | 2,618 |
| |
Food Stores |
| 0.5 | % | 2,574 |
| |
Automotive Dealers |
| 0.4 | % | 2,105 |
| |
Health Services |
| 0.4 | % | 1,974 |
| |
Life Insurance |
| 0.3 | % | 1,544 |
| |
Lumber & Other Building Materials |
| 0.3 | % | 1,489 |
| |
Electric Services |
| 0.3 | % | 1,394 |
| |
Restaurants |
| 0.3 | % | 1,362 |
| |
Paper & Allied Products |
| 0.3 | % | 1,287 |
| |
Wholesale Trade Nondurable Goods |
| 0.2 | % | 1,098 |
| |
Specialty- Real Estate |
| 0.2 | % | 996 |
| |
Pharmaceuticals |
| 0.2 | % | 919 |
| |
Amusement & Recreation Services |
| 0.2 | % | 817 |
| |
Agriculture |
| 0.2 | % | 787 |
| |
Medical Instruments & Supplies |
| 0.2 | % | 734 |
| |
Textile Mill Products |
| 0.1 | % | 647 |
| |
Furniture & Home Furnishings Stores |
| 0.1 | % | 526 |
| |
Apparel & Accessory Stores |
| 0.1 | % | 495 |
| |
Radio & Television Broadcasting |
| 0.1 | % | 424 |
| |
Motor Vehicles, Parts & Supplies |
| 0.1 | % | 406 |
| |
Aerospace |
| 0.1 | % | 255 |
| |
Business Services |
| 0.0 | % | 192 |
| |
Transportation & Public Utilities |
| 0.0 | % | 102 |
| |
Water Transportation |
| 0.0 | % | 61 |
| |
Investment Securities, at value |
| 94.3 | % | 448,989 |
| |
Short-Term Investments |
| 5.3 | % | 25,052 |
| |
Total Investment Securities |
| 99.6 | % | $ | 474,041 |
|
122
TA IDEX Oppenheimer Small- & Mid-Cap Value
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,174.50 |
| 1.08 | % | $ | 5.82 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,019.44 |
| 1.08 | % | 5.41 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
123
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Communications |
| 4.3 | % |
Communications |
| 9.0 | % |
Consumer Cyclical |
| 16.9 | % |
Consumer Non-Cyclical |
| 11.3 | % |
Diversified |
| 0.8 | % |
Energy |
| 6.0 | % |
Financial |
| 18.7 | % |
Industrial |
| 16.3 | % |
Technology |
| 8.0 | % |
Utilities |
| 8.7 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
124
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
CONVERTIBLE PREFERRED STOCKS (0.6%) |
|
|
|
|
| |
Holding & Other Investment Offices (0.6%) |
|
|
|
|
| |
Granahan McCourt Acquisition Corp.(‡) |
| 35,900 |
| $ | 299 |
|
Information Services Group(‡) |
| 63,100 |
| 540 |
| |
Total Convertible Preferred Stocks (cost: $790) |
|
|
| 839 |
| |
|
|
|
|
|
| |
COMMON STOCKS (93.2%) |
|
|
|
|
| |
Aerospace (3.9%) |
|
|
|
|
| |
Alliant Techsystems, Inc.(‡) |
| 18,440 |
| 1,717 |
| |
Empresa Brasileira de Aeronautica SA, ADR |
| 14,116 |
| 662 |
| |
Goodrich Corp. |
| 31,920 |
| 1,814 |
| |
Spirit Aerosystems Holdings, Inc.-Class A(‡) |
| 38,057 |
| 1,204 |
| |
Agriculture (0.5%) |
|
|
|
|
| |
Chiquita Brands International, Inc. |
| 50,660 |
| 751 |
| |
Amusement & Recreation Services (2.0%) |
|
|
|
|
| |
Gaylord Entertainment Co.(‡) |
| 12,700 |
| 696 |
| |
Penn National Gaming, Inc.(‡) |
| 43,811 |
| 2,118 |
| |
Apparel & Accessory Stores (0.5%) |
|
|
|
|
| |
Urban Outfitters, Inc.(‡) |
| 27,869 |
| 718 |
| |
Automotive (4.8%) |
|
|
|
|
| |
Advance Auto Parts, Inc. |
| 34,249 |
| 1,411 |
| |
Navistar International Corp.(‡) |
| 43,691 |
| 2,426 |
| |
Oshkosh Truck Corp. |
| 49,748 |
| 2,783 |
| |
Business Services (1.4%) |
|
|
|
|
| |
FTD Group, Inc.(‡) |
| 9,010 |
| 161 |
| |
Interpublic Group of Cos., Inc.(‡) |
| 135,610 |
| 1,720 |
| |
Chemicals & Allied Products (2.8%) |
|
|
|
|
| |
Chemtura Corp. |
| 56,383 |
| 622 |
| |
Lubrizol Corp. |
| 26,200 |
| 1,570 |
| |
Mosaic Co. (The)(‡) |
| 56,378 |
| 1,663 |
| |
Commercial Banks (2.8%) |
|
|
|
|
| |
East-West Bancorp, Inc. |
| 28,310 |
| 1,128 |
| |
Marshall & IIsley Corp. |
| 21,991 |
| 1,056 |
| |
Zions Bancorp |
| 21,251 |
| 1,738 |
| |
Communication (3.7%) |
|
|
|
|
| |
Cablevision Systems Corp.-Class A(‡) |
| 56,383 |
| 1,848 |
| |
Crown Castle International Corp.(‡) |
| 42,116 |
| 1,446 |
| |
Liberty Global, Inc.-Class A(‡) |
| 49,329 |
| 1,770 |
| |
Computer & Data Processing Services (5.9%) |
|
|
|
|
| |
Activision, Inc.(‡) |
| 79,161 |
| 1,583 |
| |
Amdocs, Ltd.(‡) |
| 36,560 |
| 1,344 |
| |
Electronic Data Systems Corp. |
| 23,390 |
| 684 |
| |
Juniper Networks, Inc.(‡) |
| 56,828 |
| 1,271 |
| |
Novell, Inc.(‡) |
| 169,124 |
| 1,235 |
| |
Synopsys, Inc.(‡) |
| 42,280 |
| 1,169 |
| |
THQ, Inc.(‡) |
| 28,130 |
| 939 |
| |
Computer & Office Equipment (1.3%) |
|
|
|
|
| |
Brocade Communications Systems, Inc.(‡) |
| 42,280 |
| 413 |
| |
Scientific Games Corp.-Class A(‡) |
| 22,546 |
| 751 |
| |
Seagate Technology |
| 27,147 |
| 601 |
| |
Construction (1.1%) |
|
|
|
|
| |
Foster Wheeler, Ltd.(‡) |
| 22,547 |
| 1,552 |
| |
Drug Stores & Proprietary Stores (0.4%) |
|
|
|
|
| |
Longs Drug Stores Corp. |
| 11,110 |
| 608 |
| |
Electric Services (6.9%) |
|
|
|
|
| |
AES Corp. (The)(‡) |
| 62,018 |
| 1,364 |
| |
CMS Energy Corp.(‡) |
| 147,198 |
| 2,726 |
| |
Dynegy, Inc.-Class A(‡) |
| 112,750 |
| 1,061 |
| |
Edison International |
| 25,369 |
| 1,328 |
| |
Mirant Corp.(‡) |
| 33,823 |
| 1,518 |
| |
NRG Energy, Inc.(‡) |
| 19,730 |
| 1,558 |
| |
Electronic & Other Electric Equipment (2.7%) |
|
|
|
|
| |
Ametek, Inc. |
| 42,278 |
| 1,534 |
| |
Cooper Industries, Ltd.-Class A |
| 22,548 |
| 1,122 |
| |
125
Harman International Industries, Inc. |
| 8,380 |
| 1,021 |
|
Electronic Components & Accessories (3.2%) |
|
|
|
|
|
Amphenol Corp.-Class A |
| 34,998 |
| 1,229 |
|
ASML Holding NV, ADR(‡) |
| 50,748 |
| 1,383 |
|
Conexant Systems, Inc.(‡) |
| 250,895 |
| 389 |
|
Finisar Corp.(‡) |
| 211,403 |
| 765 |
|
LSI Corp.(‡) |
| 70,260 |
| 597 |
|
Engineering & Management Services (0.5%) |
|
|
|
|
|
KBR, Inc.(‡) |
| 34,280 |
| 708 |
|
Food & Kindred Products (1.0%) |
|
|
|
|
|
Smithfield Foods, Inc.(‡) |
| 44,510 |
| 1,361 |
|
Food Stores (1.2%) |
|
|
|
|
|
Pantry, Inc. (The)(‡) |
| 38,066 |
| 1,713 |
|
Gas Production & Distribution (1.2%) |
|
|
|
|
|
Southern Union Co. |
| 56,383 |
| 1,717 |
|
Health Services (3.6%) |
|
|
|
|
|
Community Health Systems, Inc.(‡) |
| 19,840 |
| 730 |
|
DaVita, Inc.(‡) |
| 42,417 |
| 2,316 |
|
Human Genome Sciences, Inc.(‡) |
| 63,690 |
| 686 |
|
Omnicare, Inc. |
| 39,048 |
| 1,295 |
|
Holding & Other Investment Offices (3.3%) |
|
|
|
|
|
Affiliated Managers Group(‡) |
| 13,104 |
| 1,541 |
|
American Financial Realty Trust REIT |
| 127,017 |
| 1,346 |
|
BioMed Realty Trust, Inc. REIT |
| 31,006 |
| 890 |
|
Churchill Ventures, Ltd.(‡) |
| 26,940 |
| 219 |
|
Quadra Realty Trust, Inc. REIT(‡) |
| 40,410 |
| 565 |
|
Hotels & Other Lodging Places (0.7%) |
|
|
|
|
|
Hilton Hotels Corp. |
| 29,568 |
| 1,005 |
|
Industrial Machinery & Equipment (2.1%) |
|
|
|
|
|
Joy Global, Inc. |
| 30,200 |
| 1,529 |
|
National Oilwell Varco, Inc.(‡) |
| 16,206 |
| 1,375 |
|
Instruments & Related Products (3.5%) |
|
|
|
|
|
Agilent Technologies, Inc.(‡) |
| 76,114 |
| 2,616 |
|
Formfactor, Inc.(‡) |
| 16,920 |
| 699 |
|
Thermo Electron Corp.(‡) |
| 28,184 |
| 1,467 |
|
Insurance (5.0%) |
|
|
|
|
|
ACE, Ltd. |
| 11,268 |
| 670 |
|
Everest Re Group, Ltd. |
| 28,194 |
| 2,837 |
|
Fidelity National Title Group, Inc.-Class A |
| 42,551 |
| 1,085 |
|
Health Net, Inc.(‡) |
| 22,549 |
| 1,219 |
|
Platinum Underwriters Holdings, Ltd. |
| 33,823 |
| 1,157 |
|
Insurance Agents, Brokers & Service (1.3%) |
|
|
|
|
|
National Financial Partners Corp. |
| 38,738 |
| 1,785 |
|
Investment Companies (1.3%) |
|
|
|
|
|
iShares Russell Midcap Value Index Fund |
| 11,310 |
| 1,785 |
|
Life Insurance (1.0%) |
|
|
|
|
|
Genworth Financial, Inc.-Class A |
| 38,562 |
| 1,407 |
|
Lumber & Other Building Materials (0.8%) |
|
|
|
|
|
Martin Marietta Materials, Inc. |
| 7,896 |
| 1,151 |
|
Management Services (0.5%) |
|
|
|
|
|
Corporate Executive Board Co. |
| 9,990 |
| 636 |
|
Manufacturing Industries (1.2%) |
|
|
|
|
|
Liberty Global, Inc.-Series C(‡) |
| 50,918 |
| 1,701 |
|
Medical Instruments & Supplies (0.8%) |
|
|
|
|
|
Applera Corp.-Applied Biosystems Group |
| 35,380 |
| 1,105 |
|
Mining (1.0%) |
|
|
|
|
|
Peabody Energy Corp. |
| 28,421 |
| 1,364 |
|
Motion Pictures (0.5%) |
|
|
|
|
|
Cinemark Holdings, Inc.(‡) |
| 36,750 |
| 695 |
|
Oil & Gas Extraction (2.6%) |
|
|
|
|
|
Cal Dive International, Inc.(‡) |
| 55,896 |
| 814 |
|
Range Resources Corp. |
| 35,243 |
| 1,288 |
|
Superior Offshore International, Inc.(‡) |
| 2,400 |
| 44 |
|
Weatherford International, Ltd.(‡) |
| 26,776 |
| 1,406 |
|
126
Paper & Paper Products (0.6%) |
|
|
|
|
| |
Smurfit Kappa Group PLC(‡) |
| 27,570 |
| 753 |
| |
Pharmaceuticals (1.5%) |
|
|
|
|
| |
Medco Health Solutions, Inc.(‡) |
| 13,991 |
| 1,092 |
| |
Vanda Pharmaceuticals, Inc.(‡) |
| 45,100 |
| 970 |
| |
Primary Metal Industries (1.7%) |
|
|
|
|
| |
Steel Dynamics, Inc. |
| 11,939 |
| 529 |
| |
Texas Industries, Inc. |
| 17,603 |
| 1,341 |
| |
United States Steel Corp. |
| 4,927 |
| 500 |
| |
Radio, Television & Computer Stores (0.4%) |
|
|
|
|
| |
Circuit City Stores, Inc. |
| 28,430 |
| 496 |
| |
Real Estate (0.5%) |
|
|
|
|
| |
Meruelo Maddux Properties, Inc.(‡) |
| 84,560 |
| 686 |
| |
Retail Trade (4.0%) |
|
|
|
|
| |
Costco Wholesale Corp. |
| 38,690 |
| 2,073 |
| |
Office Depot, Inc.(‡) |
| 77,270 |
| 2,598 |
| |
Valuevision Media, Inc.-Class A(‡) |
| 70,464 |
| 797 |
| |
Rubber & Misc. Plastic Products (0.7%) |
|
|
|
|
| |
Jarden Corp.(‡) |
| 23,808 |
| 1,003 |
| |
Savings Institutions (1.1%) |
|
|
|
|
| |
NewAlliance Bancshares, Inc. |
| 98,650 |
| 1,540 |
| |
Security & Commodity Brokers (2.2%) |
|
|
|
|
| |
E*TRADE Financial Corp.(‡) |
| 94,134 |
| 2,079 |
| |
Investment Technology Group, Inc.(‡) |
| 26,831 |
| 1,015 |
| |
Telecommunications (0.6%) |
|
|
|
|
| |
Level 3 Communications, Inc.(‡) |
| 114,865 |
| 639 |
| |
MetroPCS Communications, Inc.(‡) |
| 4,250 |
| 119 |
| |
Transportation Equipment (0.7%) |
|
|
|
|
| |
Greenbrier Cos., Inc. |
| 42,690 |
| 979 |
| |
Trucking & Warehousing (0.6%) |
|
|
|
|
| |
JB Hunt Transport Services, Inc. |
| 28,186 |
| 763 |
| |
Wholesale Trade Nondurable Goods (1.6%) |
|
|
|
|
| |
SUPERVALU, Inc. |
| 49,140 |
| 2,256 |
| |
Total Common Stocks (cost: $112,031) |
|
|
| 128,922 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $112,821)(#) |
|
|
| $ | 129,761 |
|
The notes to the financial statements are an integral part of this report.
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) Non-income producing.
(#) Aggregate cost for federal income tax purposes is $113,147. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $18,391 and $1,777, respectively. Net unrealized appreciation for tax purposes is $16,614.
DEFINITIONS:
ADR American Depositary Receipt
REIT Real Estate Investment Trust
127
TA IDEX Transamerica Short-Term Bond
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,027.20 |
| 0.67 | % | $ | 3.37 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,021.47 |
| 0.67 | % | 3.36 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
128
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Bond Credit Quality (Moodys Ratings)
At April 30, 2007 (unaudited)
A1 |
| 1.7 | % |
A2 |
| 10.8 | % |
A3 |
| 10.4 | % |
Aa3 |
| 3.0 | % |
Aaa |
| 13.1 | % |
B1 |
| 1.9 | % |
B2 |
| 1.4 | % |
B3 |
| 0.5 | % |
Ba1 |
| 2.6 | % |
Ba2 |
| 0.9 | % |
Ba3 |
| 0.8 | % |
Baa1 |
| 12.1 | % |
Baa2 |
| 20.9 | % |
Baa3 |
| 16.8 | % |
Not Rated |
| 3.1 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by Bond Credit Quality of the Fund’s total investment securities.
Credit Rating Description
A1 Upper medium grade obligations. Interest payments and principal are considered adequate, but elements may be present which suggest a susceptibility to impairment some time in the future.
A2 Upper medium grade obligations. Interest payments and principal are considered adequate, but elements may be present which suggest a susceptibility to impairment some time in the future.
A3 Upper medium grade obligations. Interest payments and principal are considered adequate, but elements may be present which suggest a susceptibility to impairment some time in the future.
Aa3 High grade obligations. Strong capacity to pay interest and repay principal.
Aaa Prime grade obligations. Exceptional financial security and ability to meet senior financial obligations.
B1 Moderate vulnerability to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.
B2 More vulnerable to adverse business, financial and economic conditions but currently has the capacity to meet financial commitments.
B3 Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.
Ba1 Moderate vulnerability in the near-term but faces major ongoing uncertainties in the event of adverse business, financial and economic conditions.
Ba2 Vulnerable in the near-term but faces major ongoing uncertainties in the event of adverse business, financial and economic conditions.
Ba3 More vulnerable in the near-term but faces major ongoing uncertainties in the event of adverse business, financial and economic conditions.
Baa1 Medium grade obligations. Interest payments and principal security are adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over great length of time.
Baa2 Medium grade obligations. Interest payments and principal security appear
129
adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over great length of time.
Baa3 Medium grade obligations. Interest payments and principal security are not as adequate for the present but certain protective elements may be
130
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Principal |
| Value |
| ||
U.S. GOVERNMENT AGENCY OBLIGATIONS (11.0%) |
|
|
|
|
| ||
Fannie Mae |
|
|
|
|
| ||
4.50%, due 09/25/2020 |
| $ | 7,467 |
| $ | 7,364 |
|
5.50%, due 03/25/2026 |
| 11,677 |
| 11,743 |
| ||
5.00%, due 06/25/2034 |
| 9,140 |
| 9,067 |
| ||
Freddie Mac |
|
|
|
|
| ||
5.35%, due 11/14/2011 |
| 11,000 |
| 11,011 |
| ||
5.50%, due 04/15/2024 |
| 8,861 |
| 8,905 |
| ||
Ginnie Mae |
|
|
|
|
| ||
4.50%, due 01/17/2033 |
| 10,059 |
| 9,903 |
| ||
Total U.S. Government Agency Obligations (cost: $57,806) |
|
|
| 57,993 |
| ||
|
|
|
|
|
| ||
MORTGAGE-BACKED SECURITIES (2.8%) |
|
|
|
|
| ||
Crown Castle Towers LLC, Series 2006-1A, Class C-144A |
|
|
|
|
| ||
5.47%, due 11/15/2036 |
| 5,000 |
| 5,024 |
| ||
SBA CMBS Trust, Series 2006-1A, Class A-144A |
|
|
|
|
| ||
5.31%, due 11/15/2036 |
| 3,620 |
| 3,630 |
| ||
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A2 |
|
|
|
|
| ||
5.50%, due 10/15/2048 |
| 6,330 |
| 6,389 |
| ||
Total Mortgage-Backed Securities (cost: $14,977) |
|
|
| 15,043 |
| ||
|
|
|
|
|
| ||
ASSET-BACKED SECURITIES (0.0%) |
|
|
|
|
| ||
USAA Auto Owner Trust, Series 2005-3, Class A2 |
|
|
|
|
| ||
4.52%, due 06/16/2008 |
| 34 |
| 34 |
| ||
Total Asset-Backed Securities (cost: $33) |
|
|
| 34 |
| ||
|
|
|
|
|
| ||
CORPORATE DEBT SECURITIES (83.8%) |
|
|
|
|
| ||
Aerospace (1.0%) |
|
|
|
|
| ||
Textron Financial Corp. |
|
|
|
|
| ||
5.88%, due 06/01/2007 |
| 5,200 |
| 5,202 |
| ||
Agriculture (0.5%) |
|
|
|
|
| ||
Michael Foods, Inc. |
|
|
|
|
| ||
8.00%, due 11/15/2013 |
| 2,815 |
| 2,899 |
| ||
Air Transportation (1.1%) |
|
|
|
|
| ||
FedEx Corp. |
|
|
|
|
| ||
3.50%, due 04/01/2009 |
| 6,000 |
| 5,819 |
| ||
Amusement & Recreation Services (0.6%) |
|
|
|
|
| ||
Caesars Entertainment, Inc. |
|
|
|
|
| ||
8.88%, due 09/15/2008 |
| 1,400 |
| 1,454 |
| ||
Mirage Resorts, Inc. |
|
|
|
|
| ||
6.75%, due 02/01/2008 |
| 1,500 |
| 1,508 |
| ||
Automotive (1.1%) |
|
|
|
|
| ||
DaimlerChrysler North America Holding Corp. |
|
|
|
|
| ||
4.75%, due 01/15/2008 |
| 5,950 |
| 5,922 |
| ||
Automotive Service Stations (0.6%) |
|
|
|
|
| ||
Petro Stopping Centers, LP / Petro Financial Corp. |
|
|
|
|
| ||
9.00%, due 02/15/2012 |
| 3,000 |
| 3,120 |
| ||
Business Credit Institutions (0.9%) |
|
|
|
|
| ||
Pemex Finance, Ltd. |
|
|
|
|
| ||
9.03%, due 02/15/2011 |
| 4,320 |
| 4,628 |
| ||
Business Services (1.2%) |
|
|
|
|
| ||
Western Union Co. (The) |
|
|
|
|
| ||
5.51%, due 11/17/2008(*) |
| 6,500 |
| 6,495 |
| ||
Chemicals & Allied Products (4.7%) |
|
|
|
|
| ||
Cytec Industries, Inc. |
|
|
|
|
| ||
6.75%, due 03/15/2008 |
| 2,700 |
| 2,715 |
| ||
5.50%, due 10/01/2010 |
| 1,375 |
| 1,380 |
| ||
Dow Chemical Co. (The) |
|
|
|
|
| ||
5.00%, due 11/15/2007 |
| 4,870 |
| 4,854 |
| ||
ICI Wilmington, Inc. |
|
|
|
|
| ||
4.38%, due 12/01/2008 |
| 3,002 |
| 2,957 |
| ||
131
Nalco Co. |
|
|
|
|
|
7.75%, due 11/15/2011 |
| 3,000 |
| 3,090 |
|
Potash Corp. of Saskatchewan |
|
|
|
|
|
7.13%, due 06/15/2007 |
| 5,000 |
| 5,010 |
|
Praxair, Inc. |
|
|
|
|
|
4.75%, due 07/15/2007 |
| 5,000 |
| 4,995 |
|
Commercial Banks (9.5%) |
|
|
|
|
|
HSBC Capital Funding, LP/Jersey Channel Islands-144A |
|
|
|
|
|
9.55%, due 06/30/2010(a)(b) |
| 4,000 |
| 4,489 |
|
ICICI Bank, Ltd., Series B-144A |
|
|
|
|
|
5.90%, due 01/12/2010(*) |
| 7,500 |
| 7,530 |
|
Key Bank National Association |
|
|
|
|
|
6.50%, due 04/15/2008 |
| 3,105 |
| 3,157 |
|
Popular North America, Inc. |
|
|
|
|
|
5.20%, due 12/12/2007 |
| 5,000 |
| 4,993 |
|
Suntrust Preferred Capital I |
|
|
|
|
|
5.85%, due 12/15/2011(a)(b) |
| 4,254 |
| 4,324 |
|
USB Capital IX |
|
|
|
|
|
6.19%, due 04/15/2011(a)(b) |
| 4,500 |
| 4,621 |
|
VTB Capital SA for Vneshtorgbank-144A |
|
|
|
|
|
5.96%, due 08/01/2008(*) |
| 9,000 |
| 9,009 |
|
Wachovia Capital Trust III |
|
|
|
|
|
5.80%, due 03/15/2011(a)(b) |
| 4,522 |
| 4,589 |
|
ZFS Finance USA Trust I-144A |
|
|
|
|
|
6.15%, due 12/15/2065(b) |
| 4,000 |
| 4,082 |
|
Barclays Bank PLC-144A |
|
|
|
|
|
8.55%, due 06/15/2011(a)(b) |
| 3,000 |
| 3,364 |
|
Communication (3.0%) |
|
|
|
|
|
British Sky Broadcasting PLC |
|
|
|
|
|
8.20%, due 07/15/2009 |
| 6,000 |
| 6,367 |
|
Comcast Cable Communications |
|
|
|
|
|
6.88%, due 06/15/2009 |
| 5,500 |
| 5,688 |
|
News America Holdings, Inc. |
|
|
|
|
|
6.63%, due 01/09/2008 |
| 4,000 |
| 4,028 |
|
Computer & Data Processing Services (1.5%) |
|
|
|
|
|
Oracle Corp. |
|
|
|
|
|
5.59%, due 01/13/2009(*) |
| 8,000 |
| 8,003 |
|
Construction (3.2%) |
|
|
|
|
|
Centex Corp., Senior Note |
|
|
|
|
|
4.75%, due 01/15/2008 |
| 4,960 |
| 4,944 |
|
DR Horton, Inc., Senior Note |
|
|
|
|
|
5.00%, due 01/15/2009 |
| 6,000 |
| 5,942 |
|
Pulte Homes, Inc., Senior Note |
|
|
|
|
|
4.88%, due 07/15/2009 |
| 6,060 |
| 5,973 |
|
Department Stores (1.7%) |
|
|
|
|
|
Meyer (Fred) Stores, Inc. |
|
|
|
|
|
7.45%, due 03/01/2008 |
| 9,100 |
| 9,251 |
|
Electric Services (5.8%) |
|
|
|
|
|
Dominion Resources, Inc. |
|
|
|
|
|
5.69%, due 05/15/2008 |
| 6,150 |
| 6,165 |
|
FPL Group Capital, Inc., Series B |
|
|
|
|
|
5.55%, due 02/16/2008 |
| 6,000 |
| 6,006 |
|
Midamerican Energy Holdings Co., Senior Note |
|
|
|
|
|
7.52%, due 09/15/2008 |
| 5,500 |
| 5,656 |
|
PSEG Funding Trust |
|
|
|
|
|
5.38%, due 11/16/2007 |
| 6,820 |
| 6,812 |
|
TXU Electric Delivery Co. |
|
|
|
|
|
5.00%, due 09/01/2007 |
| 6,000 |
| 5,988 |
|
Electric, Gas & Sanitary Services (0.8%) |
|
|
|
|
|
DPL, Inc. |
|
|
|
|
|
6.88%, due 09/01/2011 |
| 4,000 |
| 4,238 |
|
132
Food Stores (0.8%) |
|
|
|
|
|
Albertson’s, Inc. |
|
|
|
|
|
7.50%, due 02/15/2011 |
| 2,600 |
| 2,743 |
|
Stater Brothers Holdings, Senior Note |
|
|
|
|
|
8.85%, due 06/15/2010(*) |
| 1,500 |
| 1,517 |
|
Gas Production & Distribution (6.0%) |
|
|
|
|
|
El Paso Corp. |
|
|
|
|
|
7.63%, due 08/16/2007 |
| 1,700 |
| 1,711 |
|
Kinder Morgan Energy Partners, LP |
|
|
|
|
|
5.35%, due 08/15/2007 |
| 5,000 |
| 4,996 |
|
Oneok, Inc. |
|
|
|
|
|
5.51%, due 02/16/2008 |
| 6,300 |
| 6,310 |
|
Ras Laffan Liquefied Natural Gas Co., Ltd.-144A |
|
|
|
|
|
3.44%, due 09/15/2009 |
| 2,412 |
| 2,373 |
|
Sempra Energy, Senior Note |
|
|
|
|
|
4.62%, due 05/17/2007 |
| 9,970 |
| 9,966 |
|
Southern Union Co., Senior Note |
|
|
|
|
|
6.15%, due 08/16/2008 |
| 6,000 |
| 6,051 |
|
TE Products Pipeline, Senior Note |
|
|
|
|
|
6.45%, due 01/15/2008 |
| 530 |
| 532 |
|
Holding & Other Investment Offices (8.2%) |
|
|
|
|
|
BRE Properties, Inc. REIT |
|
|
|
|
|
5.75%, due 09/01/2009 |
| 6,000 |
| 6,049 |
|
Healthcare Realty Trust, Inc. REIT, Senior Note |
|
|
|
|
|
8.13%, due 05/01/2011 |
| 3,000 |
| 3,261 |
|
iStar Financial, Inc., REIT, Senior Note |
|
|
|
|
|
5.69%, due 03/09/2010(*) |
| 10,000 |
| 10,007 |
|
Kimco Realty Corp. REIT, Series C, (MTN) |
|
|
|
|
|
4.62%, due 05/06/2010 |
| 5,000 |
| 4,913 |
|
PPF Funding, Inc., REIT-144A |
|
|
|
|
|
5.35%, due 04/15/2012 |
| 4,000 |
| 3,997 |
|
Rouse Co. (The) REIT |
|
|
|
|
|
3.63%, due 03/15/2009 |
| 2,000 |
| 1,927 |
|
Simon Property Group, LP REIT |
|
|
|
|
|
3.75%, due 01/30/2009 |
| 5,335 |
| 5,212 |
|
United Dominion Realty Trust, Inc. REIT, Series E, (MTN) |
|
|
|
|
|
4.50%, due 03/03/2008 |
| 8,000 |
| 7,996 |
|
Hotels & Other Lodging Places (0.3%) |
|
|
|
|
|
Hilton Hotels Corp. |
|
|
|
|
|
7.63%, due 05/15/2008 |
| 1,350 |
| 1,375 |
|
Industrial Machinery & Equipment (0.5%) |
|
|
|
|
|
Case New Holland, Inc., Senior Note |
|
|
|
|
|
6.00%, due 06/01/2009 |
| 2,500 |
| 2,516 |
|
Instruments & Related Products (0.8%) |
|
|
|
|
|
Xerox Corp., Senior Note |
|
|
|
|
|
9.75%, due 01/15/2009(†) |
| 4,000 |
| 4,285 |
|
Insurance (0.9%) |
|
|
|
|
|
Oil Insurance, Ltd.-144A |
|
|
|
|
|
7.56%, due 06/30/2011(a)(b) |
| 4,550 |
| 4,776 |
|
Insurance Agents, Brokers & Service (0.6%) |
|
|
|
|
|
Hartford Financial Services Group, Inc., Senior Note |
|
|
|
|
|
5.55%, due 08/16/2008 |
| 3,000 |
| 3,011 |
|
Metal Mining (1.1%) |
|
|
|
|
|
Barrick Gold Finance, Inc. |
|
|
|
|
|
7.50%, due 05/01/2007 |
| 6,000 |
| 6,000 |
|
Mortgage Bankers & Brokers (2.3%) |
|
|
|
|
|
Countrywide Financial Corp., (MTN) |
|
|
|
|
|
5.57%, due 03/24/2009(*) |
| 7,000 |
| 6,988 |
|
ILFC E-Capital Trust I-144A |
|
|
|
|
|
5.90%, due 12/21/2065(b) |
| 5,000 |
| 5,054 |
|
Motion Pictures (0.9%) |
|
|
|
|
|
Time Warner, Inc. |
|
|
|
|
|
5.59%, due 11/13/2009(*) |
| 5,000 |
| 5,009 |
|
133
Office Property (1.2%) |
|
|
|
|
|
Mizuho JGB Investment LLC-144A |
|
|
|
|
|
9.87%, due 06/30/2008(a)(b) |
| 5,970 |
| 6,265 |
|
Oil & Gas Extraction (0.2%) |
|
|
|
|
|
Husky Oil, Ltd. |
|
|
|
|
|
8.90%, due 08/15/2028(b) |
| 1,000 |
| 1,038 |
|
Personal Credit Institutions (3.4%) |
|
|
|
|
|
American Express Credit Corp., (MTN) |
|
|
|
|
|
5.44%, due 02/24/2012(*) |
| 4,300 |
| 4,297 |
|
Erac USA Finance Co.-144A |
|
|
|
|
|
7.95%, due 12/15/2009 |
| 5,500 |
| 5,850 |
|
Ford Motor Credit Co. |
|
|
|
|
|
9.81%, due 04/15/2012(*) |
| 2,500 |
| 2,672 |
|
General Motors Acceptance Corp. |
|
|
|
|
|
5.13%, due 05/09/2008 |
| 1,500 |
| 1,482 |
|
SLM Corp. |
|
|
|
|
|
5.40%, due 10/25/2011(†) |
| 3,900 |
| 3,742 |
|
Petroleum Refining (2.5%) |
|
|
|
|
|
Enterprise Products Operating, LP, Series B |
|
|
|
|
|
4.00%, due 10/15/2007 |
| 8,500 |
| 8,445 |
|
Premcor Refining Group (The), Inc. |
|
|
|
|
|
6.75%, due 02/01/2011 |
| 4,500 |
| 4,724 |
|
Printing & Publishing (0.7%) |
|
|
|
|
|
CBS Corp., Senior Note |
|
|
|
|
|
5.63%, due 08/15/2012 |
| 4,000 |
| 4,013 |
|
Radio & Television Broadcasting (0.4%) |
|
|
|
|
|
Chancellor Media Corp. |
|
|
|
|
|
8.00%, due 11/01/2008 |
| 2,000 |
| 2,071 |
|
Real Estate (3.4%) |
|
|
|
|
|
Colonial Realty, LP |
|
|
|
|
|
7.00%, due 07/14/2007 |
| 5,670 |
| 5,687 |
|
Post Apartment Homes, LP |
|
|
|
|
|
7.70%, due 12/20/2010 |
| 5,000 |
| 5,380 |
|
Tanger Properties, LP REIT |
|
|
|
|
|
9.13%, due 02/15/2008 |
| 6,753 |
| 6,918 |
|
Security & Commodity Brokers (3.2%) |
|
|
|
|
|
E*Trade Financial Corp. |
|
|
|
|
|
8.00%, due 06/15/2011 |
| 3,000 |
| 3,154 |
|
Goldman Sachs Group, Inc. |
|
|
|
|
|
5.65%, due 06/28/2010(*) |
| 6,000 |
| 6,030 |
|
Residential Capital Corp. |
|
|
|
|
|
6.73%, due 06/29/2007(*) |
| 3,000 |
| 3,002 |
|
Xstrata Finance Dubai, Ltd., Guaranteed Note-144A |
|
|
|
|
|
5.71%, due 11/13/2009(*) |
| 5,000 |
| 5,005 |
|
Telecommunications (4.6%) |
|
|
|
|
|
Nextel Partners, Inc. |
|
|
|
|
|
8.13%, due 07/01/2011 |
| 6,290 |
| 6,563 |
|
Telecom Italia Capital SA, Series A |
|
|
|
|
|
4.00%, due 11/15/2008 |
| 8,010 |
| 7,864 |
|
Verizon Global Funding Corp. |
|
|
|
|
|
6.13%, due 06/15/2007 |
| 4,000 |
| 4,003 |
|
Vodafone Group PLC |
|
|
|
|
|
3.95%, due 01/30/2008 |
| 6,000 |
| 5,940 |
|
Water Transportation (2.5%) |
|
|
|
|
|
Carnival PLC |
|
|
|
|
|
7.30%, due 06/01/2007 |
| 7,057 |
| 7,066 |
|
Royal Caribbean Cruises, Ltd. |
|
|
|
|
|
7.00%, due 10/15/2007 |
| 2,891 |
| 2,909 |
|
8.75%, due 02/02/2011(†) |
| 3,000 |
| 3,293 |
|
Wholesale Trade Durable Goods (0.6%) |
|
|
|
|
|
Leslie’s Poolmart |
|
|
|
|
|
7.75%, due 02/01/2013 |
| 2,930 |
| 2,959 |
|
134
Wholesale Trade Nondurable Goods (1.5%) |
|
|
|
|
|
Dean Foods Co. |
|
|
|
|
|
6.63%, due 05/15/2009 |
| 1,500 |
| 1,524 |
|
Safeway, Inc. |
|
|
|
|
|
4.13%, due 11/01/2008 |
| 2,610 |
| 2,568 |
|
Safeway, Inc., Senior Note |
|
|
|
|
|
7.00%, due 09/15/2007 |
| 3,634 |
| 3,653 |
|
Total Corporate Debt Securities (cost: $442,930) |
|
|
| 443,959 |
|
|
|
|
|
|
|
COMMERCIAL PAPER (0.9%) |
|
|
|
|
|
Commercial Banks (0.9%) |
|
|
|
|
|
Bank of America Corp.-144A |
|
|
|
|
|
5.60%, due 05/01/2007 |
| 5,000 |
| 5,000 |
|
Total Commercial Paper (cost: $5,000) |
|
|
| 5,000 |
|
|
|
|
|
|
|
SECURITY LENDING COLLATERAL (1.1%) |
|
|
|
|
|
Debt (1.1%) |
|
|
|
|
|
Bank Notes (0.1%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 178 |
| 178 |
|
5.27%, due 06/18/2007(*) |
| 178 |
| 178 |
|
Commercial Paper (0.2%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 71 |
| 71 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 69 |
| 69 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 47 |
| 47 |
|
5.29%, due 06/13/2007 |
| 35 |
| 35 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 35 |
| 35 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 35 |
| 35 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 35 |
| 35 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 35 |
| 35 |
|
5.28%, due 05/24/2007 |
| 35 |
| 35 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 71 |
| 71 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 70 |
| 70 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 71 |
| 71 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 71 |
| 71 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 141 |
| 141 |
|
5.30%, due 05/29/2007 |
| 35 |
| 35 |
|
5.29%, due 05/31/2007 |
| 35 |
| 35 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 35 |
| 35 |
|
5.29%, due 05/17/2007 |
| 35 |
| 35 |
|
5.28%, due 06/01/2007 |
| 35 |
| 35 |
|
5.29%, due 06/19/2007 |
| 47 |
| 47 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 53 |
| 53 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 35 |
| 35 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 71 |
| 71 |
|
135
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 36 |
| 36 |
|
Euro Dollar Overnight (0.1%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 36 |
| 36 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 71 |
| 71 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 71 |
| 71 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 71 |
| 71 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 71 |
| 71 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 71 |
| 71 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 71 |
| 71 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 36 |
| 36 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 71 |
| 71 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 135 |
| 135 |
|
Euro Dollar Terms (0.4%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 71 |
| 71 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 36 |
| 36 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 50 |
| 50 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 71 |
| 71 |
|
5.30%, due 05/16/2007 |
| 71 |
| 71 |
|
5.29%, due 05/21/2007 |
| 36 |
| 36 |
|
5.30%, due 06/04/2007 |
| 36 |
| 36 |
|
5.29%, due 06/08/2007 |
| 71 |
| 71 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 36 |
| 36 |
|
5.31%, due 05/24/2007 |
| 71 |
| 71 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 107 |
| 107 |
|
5.28%, due 05/29/2007 |
| 36 |
| 36 |
|
Credit Suisse First Boston Corp. |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 71 |
| 71 |
|
Deutsche Bank |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 71 |
| 71 |
|
Fortis Bank |
|
|
|
|
|
5.28%, due 05/21/2007 |
| 107 |
| 107 |
|
5.28%, due 05/25/2007 |
| 107 |
| 107 |
|
5.30%, due 06/25/2007 |
| 71 |
| 71 |
|
HBOS Halifax Bank of Scotland |
|
|
|
|
|
5.30%, due 06/13/2007 |
| 107 |
| 107 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.30%, due 05/08/2007 |
| 71 |
| 71 |
|
5.30%, due 05/09/2007 |
| 36 |
| 36 |
|
5.31%, due 05/25/2007 |
| 71 |
| 71 |
|
Skandinaviska Enskilda Banken AB |
|
|
|
|
|
5.28%, due 05/15/2007 |
| 36 |
| 36 |
|
Swedbank AB |
|
|
|
|
|
5.30%, due 05/11/2007 |
| 71 |
| 71 |
|
Toronto Dominion Bank |
|
|
|
|
|
5.28%, due 05/10/2007 |
| 71 |
| 71 |
|
136
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 71 |
| 71 |
| |
5.29%, due 06/12/2007 |
| 142 |
| 142 |
| |
5.29%, due 06/15/2007 |
| 107 |
| 107 |
| |
5.29%, due 06/18/2007 |
| 178 |
| 178 |
| |
Repurchase Agreements (0.3%)(++) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $197 on 05/01/2007 |
| 197 |
| 197 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $782 on 05/01/2007 |
| 782 |
| 782 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $342 on 05/01/2007 |
| 342 |
| 342 |
| |
Total Security Lending Collateral (cost: $5,699) |
|
|
| 5,699 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $526,445)(#) |
|
|
| $ | 527,728 |
|
| The notes to the financial statements are an integral part of this report. |
NOTES TO SCHEDULE OF INVESTMENTS:
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. |
|
|
|
(a) |
| The security has a perpetual maturity. The date shown is the next call date. |
(b) |
| Coupon rate is fixed for a predetermined period of time and then converts to a floating rate until maturity/call date. Rate is listed as of April 30, 2007. |
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $5,579. |
(++) |
| Cash collateral for the Repurchase Agreements, valued at $1,355, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. |
(#) |
| Aggregate cost for federal income tax purposes is $526,445. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $1,876 and $593, respectively. Net unrealized appreciation for tax purposes is $1,283. |
DEFINITIONS:
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 April 30, 2007, these securities aggregated $76,508 or 14.4% of the net assets of the Fund. |
MTN |
| Medium-Term Note |
REIT |
| Real Estate Investment Trust |
137
TA IDEX UBS Dynamic Alpha
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at January 3, 2007 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 999.00 |
| 1.51 | % | $ | 4.18 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,009.66 |
| 1.51 | % | 4.20 |
| |||
(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 number of days in the period (117 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
138
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Basic Materials |
| 1.9 | % |
Communications |
| 12.1 | % |
Consumer Cyclical |
| 9.5 | % |
Consumer Non-Cyclical |
| 16.2 | % |
Diversified |
| 0.1 | % |
Energy |
| 6.7 | % |
Financial |
| 35.5 | % |
Industrial |
| 8.2 | % |
Technology |
| 6.0 | % |
Utilities |
| 3.8 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
139
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (94.2%) |
|
|
|
|
| |
Australia (1.0%) |
|
|
|
|
| |
National Australia Bank, Ltd. |
| 14,983 |
| $ | 536 |
|
Qantas Airways, Ltd. |
| 171,106 |
| 758 |
| |
QBE Insurance Group, Ltd. |
| 31,966 |
| 821 |
| |
Austria (0.2%) |
|
|
|
|
| |
Telekom Austria AG |
| 17,735 |
| 504 |
| |
Belgium (0.9%) |
|
|
|
|
| |
Dexia |
| 5,452 |
| 179 |
| |
Fortis |
| 11,487 |
| 520 |
| |
KBC Groupe(a) |
| 6,398 |
| 851 |
| |
Solvay SA |
| 1,662 |
| 264 |
| |
Bermuda (0.4%) |
|
|
|
|
| |
Catlin Group, Ltd. |
| 8,027 |
| 84 |
| |
Esprit Holdings, Ltd. |
| 30,500 |
| 372 |
| |
Weatherford International, Ltd.(‡) |
| 2,500 |
| 131 |
| |
Yue Yuen Industrial Holdings |
| 48,000 |
| 168 |
| |
Canada (1.2%) |
|
|
|
|
| |
Alcan, Inc. |
| 5,900 |
| 349 |
| |
Canadian Pacific Railway, Ltd. |
| 9,800 |
| 623 |
| |
Cott Corp.(‡) |
| 9,800 |
| 159 |
| |
JumpTV, Inc.(‡) |
| 2,226 |
| 13 |
| |
Magna International, Inc.-Class A |
| 2,600 |
| 207 |
| |
Manulife Financial Corp. |
| 8,500 |
| 308 |
| |
Research In Motion, Ltd.(‡) |
| 400 |
| 53 |
| |
Toronto-Dominion Bank |
| 11,300 |
| 693 |
| |
Cayman Islands (0.3%) |
|
|
|
|
| |
GlobalSantaFe Corp. |
| 10,700 |
| 684 |
| |
Denmark (0.3%) |
|
|
|
|
| |
AP Moller - Maersk A/S(‡) |
| 19 |
| 217 |
| |
Novo Nordisk A/S-Class B |
| 3,100 |
| 305 |
| |
Finland (0.9%) |
|
|
|
|
| |
Nokia Oyj(‡) |
| 48,611 |
| 1,238 |
| |
Stora Enso Oyj-Class R |
| 35,965 |
| 662 |
| |
France (5.3%) |
|
|
|
|
| |
AXA |
| 47,728 |
| 2,210 |
| |
BNP Paribas |
| 6,629 |
| 775 |
| |
Bouygues |
| 2,116 |
| 169 |
| |
Carrefour SA |
| 1,977 |
| 153 |
| |
France Telecom SA |
| 79,010 |
| 2,328 |
| |
Neuf Cegetel(‡) |
| 1,101 |
| 45 |
| |
Sanofi-Aventis |
| 7,604 |
| 700 |
| |
Suez SA |
| 19,948 |
| 1,143 |
| |
Total SA |
| 43,472 |
| 3,231 |
| |
Unibail REIT(a) |
| 821 |
| 229 |
| |
Germany (4.7%) |
|
|
|
|
| |
Allianz AG |
| 11,471 |
| 2,610 |
| |
Bayerische Motoren Werke AG |
| 2,284 |
| 141 |
| |
Celesio AG |
| 2,248 |
| 162 |
| |
DaimlerChrysler AG |
| 9,489 |
| 775 |
| |
Deutsche Lufthansa AG |
| 9,243 |
| 278 |
| |
Deutsche Postbank AG |
| 5,301 |
| 520 |
| |
Deutsche Telekom AG |
| 16,075 |
| 294 |
| |
E.ON AG |
| 5,364 |
| 808 |
| |
Heidelberger Druckmaschinen |
| 2,587 |
| 123 |
| |
Henkel KGaA |
| 3,821 |
| 603 |
| |
IKB Deutsche Industriebank AG |
| 5,261 |
| 219 |
| |
Man AG |
| 2,733 |
| 367 |
| |
Metro AG |
| 9,916 |
| 768 |
| |
Muenchener Rueckversicherungs AG |
| 1,422 |
| 254 |
| |
SAP AG |
| 4,806 |
| 233 |
| |
Siemens AG |
| 8,278 |
| 1,008 |
| |
Stada Arzneimittel AG |
| 3,271 |
| 217 |
| |
140
TUI AG |
| 6,814 |
| 188 |
|
Greece (0.4%) |
|
|
|
|
|
Alpha Bank A.E. |
| 12,917 |
| 397 |
|
National Bank of Greece SA |
| 7,290 |
| 411 |
|
Hong Kong (0.1%) |
|
|
|
|
|
Sun Hung Kai Properties, Ltd. |
| 23,000 |
| 270 |
|
Ireland (1.2%) |
|
|
|
|
|
Anglo Irish Bank Corp. PLC |
| 5,597 |
| 127 |
|
Bank of Ireland |
| 51,822 |
| 1,119 |
|
CRH PLC |
| 8,632 |
| 380 |
|
Depfa Bank PLC |
| 31,167 |
| 581 |
|
EcoSecurities Group PLC(‡) |
| 7,838 |
| 52 |
|
Smurfit Kappa Group PLC(‡) |
| 5,700 |
| 156 |
|
Italy (1.7%) |
|
|
|
|
|
Banco Popolare di Verona e Novara SCRL |
| 3,219 |
| 108 |
|
ENI-Ente Nazionale Idrocarburi SpA |
| 14,687 |
| 490 |
|
Fiat SpA(‡) |
| 11,259 |
| 335 |
|
Intesa Sanpaolo SpA(‡) |
| 224,903 |
| 1,897 |
|
UniCredito Italiano SpA |
| 25,287 |
| 262 |
|
UniCredito Italiano SpA (CHIX)(a) |
| 32,411 |
| 335 |
|
Japan (5.0%) |
|
|
|
|
|
Aeon Co., Ltd. |
| 13,300 |
| 243 |
|
Aiful Corp.(a) |
| 5,800 |
| 144 |
|
Asahi Breweries, Ltd. |
| 24,000 |
| 391 |
|
Bank of Yokohama, Ltd. (The) |
| 39,000 |
| 285 |
|
Bridgestone Corp. |
| 15,500 |
| 314 |
|
Canon, Inc. |
| 11,300 |
| 634 |
|
East Japan Railway Co. |
| 50 |
| 405 |
|
Funai Electric Co., Ltd. |
| 2,000 |
| 159 |
|
Honda Motor Co., Ltd. |
| 17,800 |
| 611 |
|
Hoya Corp. |
| 7,800 |
| 240 |
|
Japan Tobacco, Inc. |
| 59 |
| 288 |
|
KDDI Corp. |
| 31 |
| 244 |
|
Kubota Corp. |
| 32,000 |
| 302 |
|
Mitsubishi Corp. |
| 23,100 |
| 492 |
|
Mitsui Fudosan Co., Ltd. |
| 10,000 |
| 292 |
|
Mitsui Sumitomo Insurance Co., Ltd. |
| 36,000 |
| 447 |
|
Nitto Denko Corp. |
| 8,600 |
| 379 |
|
NOK Corp. |
| 8,300 |
| 154 |
|
Nomura Holdings, Inc. |
| 14,200 |
| 271 |
|
NTN Corp. |
| 23,000 |
| 191 |
|
NTT DoCoMo, Inc. |
| 212 |
| 361 |
|
Rohm Co., Ltd. |
| 4,600 |
| 415 |
|
Shin-Etsu Chemical Co., Ltd. |
| 6,100 |
| 394 |
|
SMC Corp. |
| 1,600 |
| 204 |
|
Sompo Japan Insurance, Inc. |
| 19,000 |
| 232 |
|
Sumitomo Mitsui Financial Group, Inc. |
| 68 |
| 594 |
|
Sumitomo Trust & Banking Co., Ltd. (The) |
| 27,000 |
| 264 |
|
Takefuji Corp.(a) |
| 4,750 |
| 160 |
|
Tanabe Seiyaku Co., Ltd. |
| 2,000 |
| 26 |
|
Tokyo Gas Co., Ltd. |
| 45,000 |
| 226 |
|
Toyota Motor Corp. |
| 11,600 |
| 704 |
|
Yamada Denki Co., Ltd. |
| 2,790 |
| 258 |
|
Luxembourg (0.1%) |
|
|
|
|
|
SES FDR |
| 14,746 |
| 290 |
|
Netherland Antilles (0.1%) |
|
|
|
|
|
Schlumberger, Ltd. |
| 2,900 |
| 214 |
|
Netherlands (3.7%) |
|
|
|
|
|
ABN AMRO Holding NV |
| 55,250 |
| 2,709 |
|
ASML Holding NV(‡) |
| 32,243 |
| 880 |
|
ING Groep NV |
| 26,248 |
| 1,205 |
|
Koninklijke Philips Electronics NV |
| 6,264 |
| 259 |
|
Ordina NV |
| 1,325 |
| 33 |
|
Reed Elsevier NV |
| 20,906 |
| 394 |
|
Royal KPN NV |
| 68,805 |
| 1,174 |
|
141
STMicroelectronics NV |
| 11,807 |
| 232 |
|
TNT NV |
| 18,015 |
| 816 |
|
Norway (0.5%) |
|
|
|
|
|
Statoil ASA |
| 19,000 |
| 539 |
|
Telenor ASA |
| 27,800 |
| 520 |
|
Panama (0.5%) |
|
|
|
|
|
Carnival Corp. |
| 20,300 |
| 992 |
|
Singapore (0.0%) |
|
|
|
|
|
Singapore Telecommunications, Ltd. |
| 30,000 |
| 66 |
|
Spain (1.4%) |
|
|
|
|
|
Altadis SA |
| 3,205 |
| 211 |
|
Banco Santander Central Hispano SA |
| 128,961 |
| 2,321 |
|
Repsol YPF SA |
| 8,189 |
| 271 |
|
Sweden (1.1%) |
|
|
|
|
|
Electrolux AB-Class B |
| 8,500 |
| 223 |
|
Holmen AB-Class B |
| 3,600 |
| 162 |
|
Sandvik AB |
| 28,600 |
| 553 |
|
Svenska Cellulosa AB-Class B |
| 7,600 |
| 394 |
|
Telefonaktiebolaget LM Ericsson-Class B |
| 214,000 |
| 829 |
|
Switzerland (5.0%) |
|
|
|
|
|
Alcon, Inc. |
| 1,300 |
| 175 |
|
Clariant AG(‡) |
| 11,535 |
| 192 |
|
Credit Suisse Group |
| 30,646 |
| 2,424 |
|
Holcim, Ltd. |
| 7,680 |
| 829 |
|
Nestle SA |
| 3,753 |
| 1,492 |
|
Novartis AG |
| 34,333 |
| 2,004 |
|
Roche Holding AG-Genusschein |
| 15,651 |
| 2,960 |
|
Straumann Holding AG |
| 973 |
| 286 |
|
United Kingdom (15.0%) |
|
|
|
|
|
Aberdeen Asset Management PLC |
| 29,515 |
| 130 |
|
ACP Capital, Ltd. |
| 14,658 |
| 42 |
|
Anite Group PLC |
| 15,595 |
| 24 |
|
Ashtead Group PLC |
| 12,068 |
| 37 |
|
AstraZeneca PLC |
| 9,910 |
| 543 |
|
Aviva PLC |
| 9,639 |
| 152 |
|
Balfour Beatty PLC |
| 18,784 |
| 176 |
|
Barclays PLC |
| 160,530 |
| 2,336 |
|
BP PLC |
| 325,924 |
| 3,686 |
|
BPP Holdings PLC |
| 5,130 |
| 71 |
|
British American Tobacco PLC |
| 7,854 |
| 244 |
|
British Polythene Industries |
| 2,619 |
| 24 |
|
British Sky Broadcasting PLC |
| 25,878 |
| 298 |
|
BT Group PLC |
| 31,378 |
| 198 |
|
Cadbury Schweppes PLC |
| 26,324 |
| 351 |
|
Carnival PLC |
| 8,504 |
| 431 |
|
Cattles PLC |
| 16,150 |
| 129 |
|
Centaur Holdings PLC |
| 13,758 |
| 39 |
|
Centrica PLC |
| 15,905 |
| 123 |
|
Compass Group PLC |
| 32,282 |
| 235 |
|
Computacenter PLC |
| 2,326 |
| 12 |
|
Daily Mail and General Trust NV-Class A |
| 14,773 |
| 248 |
|
Diageo PLC |
| 66,088 |
| 1,400 |
|
Dignity PLC |
| 2,403 |
| 35 |
|
DSG International |
| 24,762 |
| 80 |
|
Electrocomponents PLC |
| 16,176 |
| 100 |
|
Elementis PLC |
| 20,404 |
| 35 |
|
Enodis PLC |
| 12,017 |
| 50 |
|
Entertainment Rights PLC(‡) |
| 85,129 |
| 51 |
|
Experian Group, Ltd. |
| 40,869 |
| 465 |
|
Fenner PLC |
| 7,756 |
| 34 |
|
Foseco PLC |
| 8,841 |
| 36 |
|
Future PLC |
| 32,419 |
| 28 |
|
Galliford Try PLC |
| 14,618 |
| 49 |
|
Georgica PLC(‡) |
| 12,555 |
| 31 |
|
GlaxoSmithKline PLC |
| 44,043 |
| 1,276 |
|
142
Gyrus Group PLC(‡) |
| 1,903 |
| 18 |
|
Hanson PLC |
| 21,341 |
| 367 |
|
HBOS PLC |
| 57,780 |
| 1,251 |
|
Highway Insurance Holdings PLC |
| 16,719 |
| 25 |
|
Home Retail Group |
| 28,917 |
| 264 |
|
HSBC Holdings PLC |
| 23,760 |
| 441 |
|
ICAP PLC |
| 3,820 |
| 39 |
|
Kesa Electricals PLC |
| 51,646 |
| 351 |
|
Kingfisher PLC |
| 130,876 |
| 713 |
|
Lamprell PLC(‡) |
| 9,220 |
| 57 |
|
Lancashire Holdings, Ltd.(‡) |
| 2,921 |
| 21 |
|
Land Securities Group PLC |
| 3,650 |
| 143 |
|
LogicaCMG PLC |
| 54,365 |
| 200 |
|
London Scottish Bank PLC |
| 16,295 |
| 37 |
|
Lookers PLC |
| 11,478 |
| 49 |
|
Majestic Wine PLC |
| 5,119 |
| 39 |
|
Meggitt PLC |
| 19,453 |
| 120 |
|
MFI Furniture PLC(‡) |
| 25,685 |
| 84 |
|
National Grid PLC |
| 4,338 |
| 68 |
|
Northgate Information Solutions PLC |
| 33,690 |
| 59 |
|
Old Mutual PLC |
| 60,546 |
| 217 |
|
PayPoint PLC |
| 3,421 |
| 49 |
|
Phoenix IT Group, Ltd. |
| 3,751 |
| 25 |
|
Prudential PLC |
| 104,122 |
| 1,560 |
|
Psion PLC |
| 5,546 |
| 18 |
|
Quintain Estates & Development PLC |
| 2,717 |
| 46 |
|
Reed Elsevier PLC |
| 25,948 |
| 331 |
|
Rentokil Initial PLC |
| 87,715 |
| 305 |
|
Rexam PLC |
| 5,576 |
| 59 |
|
Rio Tinto PLC |
| 4,325 |
| 266 |
|
Royal Bank of Scotland Group PLC |
| 67,827 |
| 2,618 |
|
Royal Dutch Shell PLC-Class B |
| 15,438 |
| 548 |
|
Safestore Holdings, Ltd.(‡) |
| 11,369 |
| 56 |
|
Scottish & Southern Energy PLC |
| 22,025 |
| 662 |
|
Southern Cross Healthcare, Ltd. |
| 5,682 |
| 57 |
|
Speedy Hire PLC |
| 1,959 |
| 48 |
|
Sports Direct International PLC(‡) |
| 18,117 |
| 86 |
|
SSL International PLC |
| 13,543 |
| 118 |
|
Taylor Nelson Sofres PLC |
| 9,944 |
| 49 |
|
Ted Baker PLC |
| 3,439 |
| 42 |
|
Telent PLC(‡) |
| 2,751 |
| 24 |
|
Tesco PLC |
| 110,630 |
| 1,023 |
|
Tomkins PLC |
| 17,488 |
| 93 |
|
Travis Perkins PLC |
| 1,214 |
| 49 |
|
Ultra Electronics Holdings |
| 1,413 |
| 34 |
|
Vanco PLC(‡) |
| 4,303 |
| 37 |
|
Vectura Group PLC(‡) |
| 12,081 |
| 21 |
|
Vodafone Group PLC |
| 1,147,597 |
| 3,293 |
|
Wolseley PLC |
| 51,303 |
| 1,245 |
|
WPP Group PLC |
| 19,157 |
| 286 |
|
Yule Catto & Co. PLC |
| 6,476 |
| 31 |
|
Zetar PLC(‡) |
| 3,909 |
| 46 |
|
United States (43.2%) |
|
|
|
|
|
Abercrombie & Fitch Co.-Class A |
| 2,400 |
| 196 |
|
Adobe Systems, Inc.(‡) |
| 4,700 |
| 195 |
|
AFLAC, Inc. |
| 1,500 |
| 77 |
|
Akamai Technologies, Inc.(‡) |
| 1,000 |
| 44 |
|
Allergan, Inc. |
| 15,400 |
| 1,866 |
|
Allstate Corp. (The) |
| 9,700 |
| 604 |
|
Amazon.com, Inc.(‡) |
| 11,000 |
| 675 |
|
American Electric Power Co., Inc. |
| 12,400 |
| 623 |
|
American International Group, Inc. |
| 2,400 |
| 168 |
|
Analog Devices, Inc. |
| 20,800 |
| 803 |
|
Anheuser-Busch Cos., Inc. |
| 8,700 |
| 428 |
|
Apache Corp. |
| 1,300 |
| 94 |
|
143
Apple, Inc.(‡) |
| 3,800 |
| 379 |
|
AT&T, Inc. |
| 24,600 |
| 953 |
|
Automatic Data Processing, Inc. |
| 2,000 |
| 90 |
|
Bank of New York Co., Inc. (The) |
| 33,100 |
| 1,340 |
|
Bard, (C.R.) Inc. |
| 2,900 |
| 241 |
|
Baxter International, Inc. |
| 5,300 |
| 300 |
|
BEA Systems, Inc.(‡) |
| 30,400 |
| 358 |
|
Best Buy Co., Inc. |
| 2,400 |
| 112 |
|
Boeing Co. (The) |
| 1,000 |
| 93 |
|
BorgWarner, Inc. |
| 9,200 |
| 717 |
|
Bristol-Myers Squibb Co. |
| 23,500 |
| 678 |
|
Broadcom Corp.-Class A(‡) |
| 4,000 |
| 130 |
|
Burlington Northern Santa Fe Corp. |
| 17,200 |
| 1,506 |
|
Cephalon, Inc.(‡) |
| 3,500 |
| 279 |
|
Chevron Corp. |
| 5,000 |
| 389 |
|
Chico’s FAS, Inc.(‡) |
| 15,600 |
| 411 |
|
Cisco Systems, Inc.(‡) |
| 13,900 |
| 372 |
|
Citigroup, Inc. |
| 53,400 |
| 2,863 |
|
City National Corp. |
| 3,900 |
| 286 |
|
Coach, Inc.(‡) |
| 10,400 |
| 508 |
|
Constellation Brands, Inc.-Class A(‡) |
| 21,000 |
| 471 |
|
Costco Wholesale Corp. |
| 15,400 |
| 825 |
|
Dell, Inc.(‡) |
| 22,800 |
| 575 |
|
Dominion Resources, Inc. |
| 2,200 |
| 201 |
|
Dun & Bradstreet Corp. |
| 1,100 |
| 99 |
|
eBay, Inc.(‡) |
| 9,800 |
| 333 |
|
Embarq Corp. |
| 3,200 |
| 192 |
|
ENSCO International, Inc. |
| 11,000 |
| 620 |
|
EOG Resources, Inc. |
| 7,500 |
| 551 |
|
Exelon Corp. |
| 25,100 |
| 1,893 |
|
Expeditors International of Washington, Inc. |
| 2,200 |
| 92 |
|
Express Scripts, Inc.(‡) |
| 2,100 |
| 201 |
|
Exxon Mobil Corp. |
| 8,200 |
| 651 |
|
FedEx Corp. |
| 9,500 |
| 1,002 |
|
Fifth Third Bancorp |
| 24,800 |
| 1,007 |
|
Fortune Brands, Inc. |
| 7,000 |
| 561 |
|
Freddie Mac |
| 10,400 |
| 674 |
|
Genentech, Inc.(‡) |
| 2,600 |
| 208 |
|
General Dynamics Corp. |
| 3,000 |
| 235 |
|
General Electric Co. |
| 50,600 |
| 1,865 |
|
Genzyme Corp.(‡) |
| 17,300 |
| 1,130 |
|
Goldman Sachs Group, Inc. (The) |
| 1,000 |
| 219 |
|
Google, Inc.-Class A(‡) |
| 1,200 |
| 566 |
|
Halliburton Co. |
| 17,000 |
| 540 |
|
Harley-Davidson, Inc. |
| 7,500 |
| 475 |
|
Harman International Industries, Inc. |
| 800 |
| 98 |
|
Hartford Financial Services Group, Inc. (The) |
| 6,700 |
| 678 |
|
Hologic, Inc.(‡) |
| 2,600 |
| 150 |
|
Home Depot, Inc. (The) |
| 22,600 |
| 856 |
|
Illinois Tool Works, Inc. |
| 23,200 |
| 1,190 |
|
Intel Corp. |
| 55,500 |
| 1,193 |
|
International Game Technology |
| 3,400 |
| 130 |
|
Intuit, Inc.(‡) |
| 14,000 |
| 398 |
|
iShares MSCI Emerging Markets Index Fund |
| 71,200 |
| 8,580 |
|
Johnson & Johnson |
| 14,200 |
| 912 |
|
Johnson Controls, Inc. |
| 14,100 |
| 1,443 |
|
JP Morgan Chase & Co. |
| 23,700 |
| 1,235 |
|
Laboratory Corp. of America Holdings(‡) |
| 2,100 |
| 166 |
|
Las Vegas Sands Corp.(‡) |
| 1,700 |
| 145 |
|
Linear Technology Corp. |
| 13,700 |
| 513 |
|
Masco Corp. |
| 40,100 |
| 1,091 |
|
McAfee, Inc.(‡) |
| 13,300 |
| 432 |
|
McGraw-Hill Cos., Inc. (The) |
| 10,000 |
| 655 |
|
Medco Health Solutions, Inc.(‡) |
| 9,400 |
| 733 |
|
Medtronic, Inc. |
| 14,800 |
| 783 |
|
144
Merck & Co., Inc. |
| 18,200 |
| 936 |
| |
Merrill Lynch & Co., Inc. |
| 2,400 |
| 217 |
| |
Microsoft Corp. |
| 86,900 |
| 2,602 |
| |
Millennium Pharmaceuticals, Inc.(‡) |
| 44,700 |
| 495 |
| |
Monster Worldwide, Inc.(‡) |
| 4,600 |
| 193 |
| |
Moody’s Corp. |
| 900 |
| 59 |
| |
Morgan Stanley |
| 29,700 |
| 2,495 |
| |
National Semiconductor Corp. |
| 18,500 |
| 487 |
| |
News Corp., Inc.-Class A |
| 21,400 |
| 479 |
| |
NiSource, Inc. |
| 14,800 |
| 364 |
| |
Northeast Utilities |
| 6,400 |
| 206 |
| |
Northrop Grumman Corp. |
| 7,200 |
| 530 |
| |
Omnicom Group, Inc. |
| 8,500 |
| 890 |
| |
PACCAR, Inc. |
| 8,500 |
| 714 |
| |
Peabody Energy Corp. |
| 1,100 |
| 53 |
| |
Pepco Holdings, Inc. |
| 9,700 |
| 286 |
| |
PepsiCo, Inc. |
| 4,900 |
| 324 |
| |
PNC Financial Services Group, Inc. |
| 10,800 |
| 800 |
| |
Praxair, Inc. |
| 5,100 |
| 329 |
| |
Precision Castparts Corp. |
| 600 |
| 62 |
| |
Procter & Gamble Co. |
| 2,900 |
| 186 |
| |
QUALCOMM, Inc. |
| 7,500 |
| 328 |
| |
Quest Diagnostics, Inc. |
| 4,900 |
| 240 |
| |
Red Hat, Inc.(‡) |
| 15,000 |
| 317 |
| |
RH Donnelley Corp.(‡) |
| 8,100 |
| 633 |
| |
Rockwell Automation, Inc. |
| 3,100 |
| 185 |
| |
Sempra Energy |
| 11,800 |
| 749 |
| |
Southwestern Energy Co.(‡) |
| 2,500 |
| 105 |
| |
Sprint Nextel Corp. |
| 76,800 |
| 1,538 |
| |
Starwood Hotels & Resorts Worldwide, Inc. |
| 2,500 |
| 168 |
| |
Symantec Corp.(‡) |
| 43,400 |
| 764 |
| |
SYSCO Corp. |
| 23,000 |
| 753 |
| |
Target Corp. |
| 3,100 |
| 184 |
| |
Texas Instruments, Inc. |
| 3,000 |
| 103 |
| |
United Technologies Corp. |
| 5,300 |
| 356 |
| |
UnitedHealth Group, Inc. |
| 16,400 |
| 870 |
| |
Vanguard Emerging Markets ETF |
| 105,000 |
| 8,596 |
| |
Viacom, Inc.-Class B(‡) |
| 12,900 |
| 532 |
| |
Waters Corp.(‡) |
| 1,000 |
| 59 |
| |
Wells Fargo & Co. |
| 56,300 |
| 2,021 |
| |
Wyeth |
| 25,800 |
| 1,432 |
| |
Wynn Resorts, Ltd. |
| 2,300 |
| 235 |
| |
Xilinx, Inc. |
| 23,800 |
| 702 |
| |
XTO Energy, Inc. |
| 3,900 |
| 212 |
| |
Yahoo!, Inc.(‡) |
| 23,800 |
| 667 |
| |
Total Common Stocks (cost: $183,646) |
|
|
| 193,831 |
| |
Total Investment Securities (cost: $183,646)(#) |
|
|
| $ | 193,831 |
|
NOTES TO SCHEDULE OF INVESTMENTS:
(a) | Passive Foreign Investment Company. |
(‡) | Non-income producing. |
(#) | Aggregate cost for federal income tax purposes is $183,658. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $12,753 and $2,580, respectively. Net unrealized appreciation for tax purposes is $10,173. |
DEFINITIONS:
ETF | Exchange-Traded Fund |
145
FDR | Finnish Depositary Receipt |
LIBOR | London Interbank Offer Rate |
REIT | Real Estate Investment Trust |
SCRL | Società Cooperativa a Responsabilità Limitata (Limited Liability Co-operative) |
The notes to the financial statements are an integral part of this report.
146
SWAP AGREEMENTS:
|
|
|
|
| Net Unrealized |
| ||||
|
| Expiration |
| Notional |
| Appreciation |
| |||
|
| Date |
| Amount |
| (Depreciation) |
| |||
|
|
|
|
|
|
|
|
|
| |
Receive a fixed rate equal to 3.07% and the Fund will pay a floating rate based on U.K. Retail Price Index. |
|
|
|
|
|
|
|
|
| |
Counterparty: Deutsche Bank AG |
| 1/29/2037 |
| GBP |
| 4,000 |
| $ | (135 | ) |
|
|
|
|
|
|
|
|
|
| |
Receive a fixed rate equal to 3.10% and the Fund will pay a floating rate based on U.K. Retail Price Index. |
|
|
|
|
|
|
|
|
| |
Counterparty: Goldman Sachs International |
| 1/22/2037 |
| GBP |
| 4,000 |
| (121 | ) | |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 2.87%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Deutsche Bank AG |
| 1/24/2017 |
| CHF |
| 9,000 |
| 99 |
| |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 2.92%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Goldman Sachs International |
| 1/31/2017 |
| CHF |
| 3,000 |
| 22 |
| |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 4.59%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Deutsche Bank AG |
| 1/22/2037 |
| GBP |
| 3,000 |
| 265 |
| |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 4.72%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Goldman Sachs International |
| 1/29/2037 |
| GBP |
| 3,000 |
| 147 |
| |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 2.50%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Deutsche Bank AG |
| 1/26/2037 |
| JPY |
| 450,000 |
| (50 | ) | |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 2.57%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Goldman Sachs International |
| 2/2/2037 |
| JPY |
| 450,000 |
| (111 | ) | |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 5.38%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Goldman Sachs International |
| 1/31/2017 |
| $ |
| 3,500 |
| (58 | ) | |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR minus 5bp and the Fund will pay a floating based on the monthly performance of the EURO STOXX50 Price Index (SX5E). |
|
|
|
|
|
|
|
|
| |
Counterparty: Goldman Sachs International |
| 1/25/2012 |
| EUR |
| 10,120 |
| 24 |
| |
|
|
|
|
|
|
|
|
|
| |
Receive from the Counterparty, in the event of default on any of the securities in the Dow Jones CDX.EM. 6 Year Index, the remaining interest payments on those defaulted securities and the Fund will pay a fixed rate equal to 1.40%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Goldman Sachs International |
| 12/20/2011 |
| $ |
| 16,000 |
| 54 |
| |
|
|
|
|
|
|
|
|
|
| |
Receive a floating rate based on the 3-month LIBOR and the Fund will pay a fixed rate equal to 5.07%. |
|
|
|
|
|
|
|
|
| |
Counterparty: Deutsche Bank AG |
| 3/8/2017 |
|
|
| 8,500 |
| 61 |
| |
|
|
|
|
|
|
|
|
|
| |
Total Swap Agreements |
|
|
| $ |
| 964,120 |
| $ | 197 |
|
The notes to the financial statements are an integral part of this report.
147
(all amounts except share amounts are in thousands)
FUTURES CONTRACTS:
|
|
|
|
|
|
|
| Net Unrealized |
| ||
|
|
|
| Settlement |
|
|
| Appreciation |
| ||
|
| Contracts(u) |
| Date |
| Amount |
| (Depreciation) |
| ||
10 Year Australia Long Bond(d) |
| 112 |
| 06/15/2007 |
| $ | 9,409 |
| $ | (185 | ) |
10 Year Canada Long Bond |
| (10 | ) | 06/29/2007 |
| (1,023 | ) | — | (o) | ||
10 Year Japan Bond |
| (2 | ) | 06/20/2007 |
| (2,249 | ) | (4 | ) | ||
10-Year U.S. Treasury Note |
| (28 | ) | 06/30/2007 |
| (3,033 | ) | (25 | ) | ||
Amsterdam Index |
| 15 |
| 05/19/2007 |
| 2,171 |
| 18 |
| ||
CAC-40 Index |
| (179 | ) | 06/16/2007 |
| (14,317 | ) | (1,440 | ) | ||
DAX Index |
| (77 | ) | 06/16/2007 |
| (19,576 | ) | (1,634 | ) | ||
DJ Euro STOXX 50 Index |
| (319 | ) | 06/30/2007 |
| (18,899 | ) | (1,381 | ) | ||
FTSE 100 Index |
| (46 | ) | 06/17/2007 |
| (5,950 | ) | (97 | ) | ||
FTSE 100 Index |
| (154 | ) | 06/21/2007 |
| (5,578 | ) | (28 | ) | ||
Hang Seng Index |
| (20 | ) | 05/30/2007 |
| (2,569 | ) | 35 |
| ||
IBEX 35 Index |
| (23 | ) | 05/19/2007 |
| (4,484 | ) | 164 |
| ||
Long Gilt |
| 19 |
| 06/30/2007 |
| 4,072 |
| (18 | ) | ||
MSCI SING IX ETS |
| (39 | ) | 05/29/2007 |
| (2,108 | ) | 17 |
| ||
NIKKEI 225 OSE |
| (173 | ) | 06/08/2007 |
| (25,203 | ) | (859 | ) | ||
OMXS30 Index |
| (326 | ) | 05/25/2007 |
| (6,194 | ) | (38 | ) | ||
S&P 500 Index |
| (63 | ) | 06/17/2007 |
| (23,442 | ) | (623 | ) | ||
S&P MIB Index |
| (18 | ) | 06/17/2007 |
| (5,295 | ) | (349 | ) | ||
S&P TSE 60 Index |
| (87 | ) | 06/16/2007 |
| (12,085 | ) | (268 | ) | ||
SPI 200 Index |
| (76 | ) | 06/16/2007 |
| (9,764 | ) | (457 | ) | ||
|
|
|
|
|
| $ | (146,117 | ) | $ | (7,172 | ) |
(d) |
| At April 30, 2007, cash in the amount of $13,934 is segregated with the custodian to cover margin requirements for open futures contracts. |
(u) |
| Contract amounts are not in thousands. |
(o) |
| Value is less than $1. |
148
(all amounts in thousands)
FORWARD FOREIGN CURRENCY CONTRACTS:
|
|
|
|
|
| Amount in |
| Net Unrealized |
| ||
|
| Bought |
| Settlement |
| U.S. Dollars |
| Appreciation |
| ||
Currency |
| (Sold) |
| Date |
| Bought (Sold) |
| (Depreciation) |
| ||
Australian Dollar |
| (12,325 | ) | 07/23/2007 |
| $ | (9,570 | ) | $ | (668 | ) |
British Pound Sterling |
| (29,135 | ) | 07/23/2007 |
| (57,259 | ) | (972 | ) | ||
Canadian Dollar |
| (11,810 | ) | 07/23/2007 |
| (10,066 | ) | (646 | ) | ||
Euro Dollar |
| (52,095 | ) | 07/23/2007 |
| (67,965 | ) | (3,343 | ) | ||
Japanese Yen |
| 905,500 |
| 07/23/2007 |
| 7,609 |
| 49 |
| ||
Singapore Dollar |
| 6,155 |
| 07/23/2007 |
| 4,037 |
| 37 |
| ||
Swedish Krona |
| 109,300 |
| 07/23/2007 |
| 15,737 |
| 624 |
| ||
Swiss Franc |
| 6,195 |
| 07/23/2007 |
| 5,038 |
| 130 |
| ||
|
|
|
|
|
| $ | (112,439 | ) | $ | (4,789 | ) |
FORWARD FOREIGN CROSS CURRENCY CONTRACTS:
|
|
|
|
|
|
|
|
|
| Net Unrealized |
|
|
|
|
|
|
|
|
| Settlement |
| Appreciation |
|
Currency Bought |
|
|
| Currency Sold |
| Date |
| (Depreciation) |
| ||
Swiss Franc |
| 14,574 |
| Euro Dollar |
| 9,125 |
| 7/23/2007 |
| (331 | ) |
|
|
|
|
|
|
|
|
|
| (331 | ) |
149
(all amounts except share amounts in thousands)
|
| Percentage of |
|
|
| |
|
| Net Assets |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Commercial Banks |
| 16.1 | % | $ | 33,158 |
|
Investment Companies |
| 8.4 | % | 17,176 |
| |
Pharmaceuticals |
| 8.2 | % | 16,884 |
| |
Telecommunications |
| 5.7 | % | 11,747 |
| |
Oil & Gas Extraction |
| 3.5 | % | 7,095 |
| |
Computer & Data Processing Services |
| 3.4 | % | 6,943 |
| |
Insurance |
| 3.1 | % | 6,340 |
| |
Electronic Components & Accessories |
| 2.9 | % | 6,010 |
| |
Petroleum Refining |
| 2.8 | % | 5,813 |
| |
Life Insurance |
| 2.7 | % | 5,500 |
| |
Automotive |
| 1.9 | % | 3,962 |
| |
Security & Commodity Brokers |
| 1.8 | % | 3,747 |
| |
Electric Services |
| 1.8 | % | 3,603 |
| |
Business Services |
| 1.7 | % | 3,522 |
| |
Electric, Gas & Sanitary Services |
| 1.7 | % | 3,400 |
| |
Beverages |
| 1.5 | % | 3,172 |
| |
Industrial Machinery & Equipment |
| 1.4 | % | 2,931 |
| |
Communications Equipment |
| 1.3 | % | 2,762 |
| |
Furniture & Fixtures |
| 1.3 | % | 2,618 |
| |
Railroads |
| 1.2 | % | 2,534 |
| |
Printing & Publishing |
| 1.1 | % | 2,329 |
| |
Electronic & Other Electric Equipment |
| 1.1 | % | 2,186 |
| |
Wholesale Trade Durable Goods |
| 1.0 | % | 2,109 |
| |
Air Transportation |
| 1.0 | % | 2,038 |
| |
Retail Trade |
| 1.0 | % | 2,013 |
| |
Lumber & Other Building Materials |
| 1.0 | % | 1,998 |
| |
Computer & Office Equipment |
| 1.0 | % | 1,960 |
| |
Business Credit Institutions |
| 0.9 | % | 1,925 |
| |
Medical Instruments & Supplies |
| 0.9 | % | 1,896 |
| |
Food & Kindred Products |
| 0.9 | % | 1,888 |
| |
Chemicals & Allied Products |
| 0.9 | % | 1,848 |
| |
Water Transportation |
| 0.8 | % | 1,641 |
| |
Paper & Allied Products |
| 0.6 | % | 1,217 |
| |
Aerospace |
| 0.6 | % | 1,214 |
| |
Food Stores |
| 0.6 | % | 1,176 |
| |
Department Stores |
| 0.5 | % | 1,032 |
| |
Transportation & Public Utilities |
| 0.4 | % | 908 |
| |
Motor Vehicles, Parts & Supplies |
| 0.4 | % | 871 |
| |
Stone, Clay & Glass Products |
| 0.4 | % | 829 |
| |
Radio, Television & Computer Stores |
| 0.4 | % | 800 |
| |
Wholesale Trade Nondurable Goods |
| 0.4 | % | 753 |
| |
Tobacco Products |
| 0.4 | % | 743 |
| |
Real Estate |
| 0.4 | % | 710 |
| |
Insurance Agents, Brokers & Service |
| 0.3 | % | 703 |
| |
Health Services |
| 0.3 | % | 663 |
| |
Instruments & Related Products |
| 0.3 | % | 659 |
| |
Fabricated Metal Products |
| 0.3 | % | 617 |
| |
Apparel & Accessory Stores |
| 0.3 | % | 607 |
| |
Manufacturing Industries |
| 0.3 | % | 603 |
| |
Radio & Television Broadcasting |
| 0.3 | % | 583 |
| |
Hotels & Other Lodging Places |
| 0.3 | % | 547 |
| |
Holding & Other Investment Offices |
| 0.3 | % | 546 |
| |
Leather & Leather Products |
| 0.3 | % | 508 |
| |
Rubber & Misc. Plastic Products |
| 0.2 | % | 483 |
| |
150
Motion Pictures |
| 0.2 | % | 479 |
| |
Gas Production & Distribution |
| 0.2 | % | 455 |
| |
Personal Credit Institutions |
| 0.2 | % | 433 |
| |
Mining |
| 0.2 | % | 419 |
| |
Engineering & Management Services |
| 0.2 | % | 395 |
| |
Primary Metal Industries |
| 0.2 | % | 349 |
| |
Communication |
| 0.2 | % | 311 |
| |
Residential Building Construction |
| 0.1 | % | 270 |
| |
Metal Mining |
| 0.1 | % | 266 |
| |
Restaurants |
| 0.1 | % | 235 |
| |
Paper & Paper Products |
| 0.1 | % | 156 |
| |
Entertainment |
| 0.1 | % | 130 |
| |
Educational Services |
| 0.0 | % | 71 |
| |
Iron & Steel Foundries |
| 0.0 | % | 62 |
| |
Metal Cans & Shipping Containers |
| 0.0 | % | 59 |
| |
Automotive Dealers |
| 0.0 | % | 49 |
| |
Apparel Products |
| 0.0 | % | 42 |
| |
Misc. General Merchandise Stores |
| 0.0 | % | 39 |
| |
Personal Services |
| 0.0 | % | 35 |
| |
Amusement & Recreation Services |
| 0.0 | % | 32 |
| |
Paperboard Containers & Boxes |
| 0.0 | % | 24 |
| |
Investment Securities, at value |
| 94.2 | % | 193,831 |
| |
Total Investment Securities |
| 94.2 | % | $ | 193,831 |
|
151
TA IDEX UBS Large Cap Value
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,097.10 |
| 0.81 | % | $ | 4.21 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,020.78 |
| 0.81 | % | 4.06 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
152
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Communications |
| 10.1 | % |
Consumer Cyclical |
| 8.5 | % |
Consumer Non-Cyclical |
| 11.5 | % |
Energy |
| 10.2 | % |
Financial |
| 33.1 | % |
Industrial |
| 12.8 | % |
Technology |
| 1.9 | % |
Utilities |
| 9.1 | % |
Other |
| 2.8 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
153
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Shares |
| Value |
| |
COMMON STOCKS (94.9%) |
|
|
|
|
| |
Aerospace (1.9%) |
|
|
|
|
| |
Lockheed Martin Corp. |
| 55,600 |
| $ | 5,345 |
|
Northrop Grumman Corp. |
| 132,600 |
| 9,761 |
| |
Air Transportation (1.6%) |
|
|
|
|
| |
FedEx Corp. |
| 124,700 |
| 13,148 |
| |
Automotive (1.9%) |
|
|
|
|
| |
Harley-Davidson, Inc. |
| 98,400 |
| 6,231 |
| |
PACCAR, Inc. |
| 106,800 |
| 8,969 |
| |
Beverages (1.7%) |
|
|
|
|
| |
Anheuser-Busch Cos., Inc. |
| 175,800 |
| 8,648 |
| |
Constellation Brands, Inc.-Class A(‡)(†) |
| 240,800 |
| 5,396 |
| |
Business Credit Institutions (1.0%) |
|
|
|
|
| |
Freddie Mac |
| 130,800 |
| 8,473 |
| |
Business Services (1.4%) |
|
|
|
|
| |
Omnicom Group, Inc. |
| 107,900 |
| 11,298 |
| |
Commercial Banks (22.4%) |
|
|
|
|
| |
Bank of America Corp. |
| 241,100 |
| 12,272 |
| |
Bank of New York Co., Inc. (The) |
| 330,800 |
| 13,391 |
| |
Citigroup, Inc. |
| 725,000 |
| 38,874 |
| |
City National Corp. |
| 61,200 |
| 4,481 |
| |
Fifth Third Bancorp(†) |
| 434,300 |
| 17,628 |
| |
JP Morgan Chase & Co. |
| 588,400 |
| 30,656 |
| |
Mellon Financial Corp. |
| 125,900 |
| 5,405 |
| |
Northern Trust Corp. |
| 156,800 |
| 9,871 |
| |
PNC Financial Services Group, Inc. |
| 197,000 |
| 14,598 |
| |
Wells Fargo & Co. |
| 953,400 |
| 34,217 |
| |
Computer & Data Processing Services (3.7%) |
|
|
|
|
| |
McAfee, Inc.(‡) |
| 129,300 |
| 4,201 |
| |
Microsoft Corp. |
| 479,600 |
| 14,359 |
| |
Symantec Corp.(‡) |
| 627,100 |
| 11,037 |
| |
Electric Services (5.4%) |
|
|
|
|
| |
American Electric Power Co., Inc. |
| 326,300 |
| 16,387 |
| |
Northeast Utilities |
| 329,600 |
| 10,603 |
| |
Pepco Holdings, Inc. |
| 259,700 |
| 7,666 |
| |
Sempra Energy |
| 139,900 |
| 8,881 |
| |
Electric, Gas & Sanitary Services (3.5%) |
|
|
|
|
| |
Exelon Corp. |
| 296,600 |
| 22,367 |
| |
NiSource, Inc. |
| 248,200 |
| 6,103 |
| |
Electronic & Other Electric Equipment (3.6%) |
|
|
|
|
| |
General Electric Co. |
| 790,300 |
| 29,130 |
| |
Fabricated Metal Products (0.9%) |
|
|
|
|
| |
Fortune Brands, Inc. |
| 89,800 |
| 7,193 |
| |
Finance (1.2%) |
|
|
|
|
| |
SPDR Trust Series 1(†) |
| 62,700 |
| 9,297 |
| |
Furniture & Fixtures (4.0%) |
|
|
|
|
| |
Johnson Controls, Inc. |
| 203,300 |
| 20,804 |
| |
Masco Corp. |
| 426,700 |
| 11,610 |
| |
Industrial Machinery & Equipment (2.0%) |
|
|
|
|
| |
Illinois Tool Works, Inc. |
| 312,000 |
| 16,009 |
| |
Insurance (2.1%) |
|
|
|
|
| |
Allstate Corp. (The) |
| 173,500 |
| 10,812 |
| |
UnitedHealth Group, Inc. |
| 112,800 |
| 5,985 |
| |
Insurance Agents, Brokers & Service (1.7%) |
|
|
|
|
| |
Hartford Financial Services Group, Inc. (The) |
| 135,800 |
| 13,743 |
| |
Lumber & Other Building Materials (0.9%) |
|
|
|
|
| |
Home Depot, Inc. (The) |
| 201,900 |
| 7,646 |
| |
Motion Pictures (1.1%) |
|
|
|
|
| |
News Corp., Inc.-Class A |
| 393,400 |
| 8,808 |
| |
Motor Vehicles, Parts & Supplies (1.3%) |
|
|
|
|
| |
BorgWarner, Inc. |
| 138,500 |
| 10,791 |
| |
Oil & Gas Extraction (3.4%) |
|
|
|
|
| |
ENSCO International, Inc. |
| 163,000 |
| 9,190 |
| |
GlobalSantaFe Corp. |
| 148,200 |
| 9,474 |
| |
154
Halliburton Co. |
| 268,300 |
| 8,524 |
|
Petroleum Refining (6.6%) |
|
|
|
|
|
Chevron Corp. |
| 320,400 |
| 24,924 |
|
Exxon Mobil Corp. |
| 356,700 |
| 28,315 |
|
Pharmaceuticals (7.8%) |
|
|
|
|
|
Bristol-Myers Squibb Co. |
| 364,900 |
| 10,531 |
|
Cephalon, Inc.(‡)(†) |
| 56,600 |
| 4,506 |
|
Johnson & Johnson |
| 84,100 |
| 5,401 |
|
Medco Health Solutions, Inc.(‡) |
| 145,500 |
| 11,352 |
|
Merck & Co., Inc. |
| 273,700 |
| 14,079 |
|
Wyeth |
| 313,300 |
| 17,388 |
|
Printing & Publishing (0.9%) |
|
|
|
|
|
RH Donnelley Corp.(‡)(†) |
| 90,300 |
| 7,052 |
|
Railroads (2.0%) |
|
|
|
|
|
Burlington Northern Santa Fe Corp. |
| 188,800 |
| 16,528 |
|
Retail Trade (1.5%) |
|
|
|
|
|
Costco Wholesale Corp. |
| 231,400 |
| 12,396 |
|
Security & Commodity Brokers (4.8%) |
|
|
|
|
|
Morgan Stanley |
| 460,600 |
| 38,695 |
|
Telecommunications (4.6%) |
|
|
|
|
|
AT&T, Inc. |
| 476,700 |
| 18,458 |
|
Embarq Corp. |
| 40,303 |
| 2,420 |
|
Sprint Nextel Corp. |
| 806,063 |
| 16,145 |
|
Total Common Stocks (cost: $696,465) |
|
|
| 767,472 |
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (2.7%) |
|
|
|
|
|
Debt (2.7%) |
|
|
|
|
|
Bank Notes (0.2%) |
|
|
|
|
|
Bank of America |
|
|
|
|
|
5.31%, due 05/17/2007(*) |
| 679 |
| 679 |
|
5.27%, due 06/18/2007(*) |
| 679 |
| 679 |
|
Commercial Paper (0.6%) |
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
5.31%, due 07/10/2007 |
| 271 |
| 271 |
|
CAFCO LLC-144A |
|
|
|
|
|
5.29%, due 05/31/2007 |
| 263 |
| 263 |
|
Charta LLC-144A |
|
|
|
|
|
5.30%, due 05/09/2007 |
| 181 |
| 181 |
|
5.29%, due 06/13/2007 |
| 136 |
| 136 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
5.29%, due 05/25/2007 |
| 136 |
| 136 |
|
CRC Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 136 |
| 136 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
5.30%, due 05/07/2007 |
| 136 |
| 136 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 136 |
| 136 |
|
5.28%, due 05/24/2007 |
| 136 |
| 136 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/02/2007 |
| 272 |
| 272 |
|
Liberty Street-144A |
|
|
|
|
|
5.29%, due 05/03/2007 |
| 266 |
| 266 |
|
Morgan Stanley |
|
|
|
|
|
5.32%, due 08/01/2007 |
| 272 |
| 272 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 272 |
| 272 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/22/2007 |
| 538 |
| 538 |
|
5.30%, due 05/29/2007 |
| 136 |
| 136 |
|
5.29%, due 05/31/2007 |
| 136 |
| 136 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
5.29%, due 05/01/2007 |
| 136 |
| 136 |
|
155
5.29%, due 05/17/2007 |
| 136 |
| 136 |
|
5.28%, due 06/01/2007 |
| 136 |
| 136 |
|
5.29%, due 06/19/2007 |
| 179 |
| 179 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 204 |
| 204 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 136 |
| 136 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 272 |
| 272 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 136 |
| 136 |
|
Euro Dollar Overnight (0.3%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 136 |
| 136 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 272 |
| 272 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 272 |
| 272 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 272 |
| 272 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 272 |
| 272 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 272 |
| 272 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 272 |
| 272 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 136 |
| 136 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 272 |
| 272 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 515 |
| 515 |
|
Euro Dollar Terms (1.0%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 272 |
| 272 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 136 |
| 136 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 190 |
| 190 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 272 |
| 272 |
|
5.30%, due 05/16/2007 |
| 272 |
| 272 |
|
5.29%, due 05/21/2007 |
| 136 |
| 136 |
|
5.30%, due 06/04/2007 |
| 136 |
| 136 |
|
5.29%, due 06/08/2007 |
| 272 |
| 272 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 136 |
| 136 |
|
5.31%, due 05/24/2007 |
| 272 |
| 272 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 407 |
| 407 |
|
5.28%, due 05/29/2007 |
| 136 |
| 136 |
|
Credit Suisse First Boston Corp. |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 272 |
| 272 |
|
Deutsche Bank |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 272 |
| 272 |
|
Fortis Bank |
|
|
|
|
|
5.28%, due 05/21/2007 |
| 407 |
| 407 |
|
5.28%, due 05/25/2007 |
| 407 |
| 407 |
|
5.30%, due 06/25/2007 |
| 272 |
| 272 |
|
HBOS Halifax Bank of Scotland |
|
|
|
|
|
5.30%, due 06/13/2007 |
| 407 |
| 407 |
|
156
Royal Bank of Scotland |
|
|
|
|
| |
5.30%, due 05/08/2007 |
| 272 |
| 272 |
| |
5.30%, due 05/09/2007 |
| 136 |
| 136 |
| |
5.31%, due 05/25/2007 |
| 272 |
| 272 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
| |
5.28%, due 05/15/2007 |
| 136 |
| 136 |
| |
Swedbank AB |
|
|
|
|
| |
5.30%, due 05/11/2007 |
| 272 |
| 272 |
| |
Toronto Dominion Bank |
|
|
|
|
| |
5.28%, due 05/10/2007 |
| 272 |
| 272 |
| |
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 272 |
| 272 |
| |
5.29%, due 06/12/2007 |
| 543 |
| 543 |
| |
5.29%, due 06/15/2007 |
| 407 |
| 407 |
| |
5.29%, due 06/18/2007 |
| 679 |
| 679 |
| |
Repurchase Agreements (0.6%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $753 on 05/01/2007 |
| 752 |
| 752 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,990 on 05/01/2007 |
| 2,989 |
| 2,989 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,310 on 05/01/2007 |
| 1,309 |
| 1,309 |
| |
Total Security Lending Collateral (cost: $21,792) |
|
|
| 21,792 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $718,257)(#) |
|
|
| $ | 789,264 |
|
| The notes to the financial statements are an integral part of this report. |
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) |
| Non-income producing. |
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $21,112. |
* |
| Floating or variable rate note. Rate is listed as of April 30, 2007. |
(††) |
| Cash collateral for the Repurchase Agreements, valued at $5,182, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. |
(#) |
| Aggregate cost for federal income tax purposes is $718,701. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $74,382 and $3,819, respectively. Net unrealized appreciation for tax purposes is $70,563. |
DEFINITIONS:
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 April 30, 2007, these securities aggregated $4,079 or 0.5% of the net assets of the Fund. |
SPDR |
| Standard & Poor’s Depository Receipts |
157
TA IDEX Van Kampen Emerging Markets Debt
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,063.60 |
| 1.05 | % | $ | 5.37 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,019.59 |
| 1.05 | % | 5.26 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
158
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Region
At April 30, 2007 (unaudited)
Africa |
| 0.4 | % |
Eastern Europe |
| 11.9 | % |
Europe |
| 16.7 | % |
Latin America |
| 16.1 | % |
North America |
| 5.5 | % |
Pacific Rim |
| 12.6 | % |
South America |
| 34.1 | % |
Other |
| 2.7 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by region of the Fund’s total investment securities.
159
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
| Principal |
| Value |
| ||
FOREIGN GOVERNMENT OBLIGATIONS (72.6%) |
|
|
|
|
| ||
Argentina (4.6%) |
|
|
|
|
| ||
Argentine Republic |
|
|
|
|
| ||
5.83%, due 12/31/2033(*) |
| $ | 21,220 |
| $ | 10,351 |
|
8.28%, due 12/31/2033 |
| 117 |
| 116 |
| ||
0.00%, due 12/15/2035(*) |
| 64,362 |
| 2,632 |
| ||
0.00%, due 12/15/2035(*) |
| 306 |
| 43 |
| ||
0.00%, due 04/10/2049(*)(e) |
| 2,310 |
| 1,086 |
| ||
Brazil (12.8%) |
|
|
|
|
| ||
Republic of Brazil |
|
|
|
|
| ||
10.00%, due 08/07/2011 |
| 9,250 |
| 10,878 |
| ||
10.50%, due 07/14/2014 |
| 2,580 |
| 3,335 |
| ||
8.00%, due 01/15/2018 |
| 4,630 |
| 5,255 |
| ||
8.00%, due 01/15/2018 |
| 2,381 |
| 2,702 |
| ||
8.88%, due 10/14/2019 |
| 3,623 |
| 4,601 |
| ||
8.88%, due 04/15/2024 |
| 1,210 |
| 1,597 |
| ||
11.00%, due 08/17/2040 |
| 2,310 |
| 3,135 |
| ||
Republic of Brazil Credit Linked Note (Banco Abn Amro Real S.A., Grand Cayman Branch) |
|
|
|
|
| ||
16.20%, due 02/22/2010(a) | BRL | 5,060 |
| 2,809 |
| ||
Republic of Brazil Credit Linked Note (Citigroup Funding, Inc.)-144A |
|
|
|
|
| ||
6.00%, due 05/18/2009(b) |
| 4,448 |
| 5,153 |
| ||
Bulgaria (1.1%) |
|
|
|
|
| ||
Republic of Bulgaria |
|
|
|
|
| ||
8.25%, due 01/15/2015 |
| 2,750 |
| 3,260 |
| ||
Colombia (2.9%) |
|
|
|
|
| ||
Republic of Colombia |
|
|
|
|
| ||
9.75%, due 04/09/2011 |
| 1,166 |
| 1,266 |
| ||
8.25%, due 12/22/2014 |
| 2,200 |
| 2,530 |
| ||
11.75%, due 02/25/2020 |
| 2,100 |
| 3,129 |
| ||
8.13%, due 05/21/2024 |
| 1,250 |
| 1,492 |
| ||
7.38%, due 09/18/2037 |
| 490 |
| 548 |
| ||
Ecuador (1.0%) |
|
|
|
|
| ||
Republic of Ecuador |
|
|
|
|
| ||
9.38%, due 12/15/2015 |
| 1,590 |
| 1,558 |
| ||
10.00%, due 08/15/2030 |
| 1,760 |
| 1,632 |
| ||
Ivory Coast (0.4%) |
|
|
|
|
| ||
Republic of Ivory Coast |
|
|
|
|
| ||
0.00%, due 03/29/2018(e) |
| 3,495 |
| 1,105 |
| ||
Mexico (11.4%) |
|
|
|
|
| ||
United Mexican States |
|
|
|
|
| ||
8.38%, due 01/14/2011 |
| 5,750 |
| 6,362 |
| ||
7.50%, due 01/14/2012 |
| 2,990 |
| 3,276 |
| ||
9.50%, due 12/18/2014 | MXN | 159,990 |
| 16,147 |
| ||
8.00%, due 12/17/2015 | MXN | 56,480 |
| 5,256 |
| ||
6.75%, due 09/27/2034 |
| 3,387 |
| 3,777 |
| ||
United Mexican States-Class XWD Warrants, Expires 9/24/2007 |
|
|
|
|
| ||
0.00%, due 09/24/2007 |
| 5 |
| 321 | �� | ||
Panama (2.1%) |
|
|
|
|
| ||
Republic of Panama |
|
|
|
|
| ||
9.63%, due 02/08/2011 |
| 1,476 |
| 1,683 |
| ||
7.25%, due 03/15/2015 |
| 1,220 |
| 1,336 |
| ||
7.13%, due 01/29/2026 |
| 2,720 |
| 2,992 |
| ||
9.38%, due 04/01/2029 |
| 300 |
| 409 |
| ||
Peru (2.7%) |
|
|
|
|
| ||
Republic of Peru |
|
|
|
|
| ||
9.88%, due 02/06/2015 |
| 1,180 |
| 1,502 |
| ||
8.38%, due 05/03/2016 |
| 2,200 |
| 2,631 |
| ||
8.75%, due 11/21/2033 |
| 3,190 |
| 4,286 |
| ||
160
Philippine Islands (11.5%) |
|
|
|
|
|
Republic of the Philippines |
|
|
|
|
|
9.00%, due 02/15/2013 |
| 3,930 |
| 4,515 |
|
8.88%, due 03/17/2015 |
| 8,020 |
| 9,414 |
|
10.63%, due 03/16/2025 |
| 3,450 |
| 4,925 |
|
9.50%, due 02/02/2030 |
| 12,407 |
| 16,532 |
|
Qatar (0.6%) |
|
|
|
|
|
State of Qatar |
|
|
|
|
|
9.75%, due 06/15/2030 |
| 1,220 |
| 1,820 |
|
Russia (7.8%) |
|
|
|
|
|
Russian Federation |
|
|
|
|
|
11.00%, due 07/24/2018 |
| 5,350 |
| 7,700 |
|
12.75%, due 06/24/2028 |
| 5,970 |
| 10,859 |
|
7.50%, due 03/31/2030 |
| 4,827 |
| 5,485 |
|
Turkey (8.8%) |
|
|
|
|
|
Republic of Turkey |
|
|
|
|
|
11.00%, due 01/14/2013 |
| 2,880 |
| 3,535 |
|
7.00%, due 09/26/2016 |
| 5,120 |
| 5,235 |
|
11.88%, due 01/15/2030 |
| 3,130 |
| 4,828 |
|
Republic of Turkey Credit Linked Note (Citigroup Funding, Inc.)-144A Zero Coupon, due 08/14/2008(c) |
| 3,382 |
| 3,933 |
|
Republic of Turkey Credit Linked Note (JPMorgan Chase Bank. NA.)-144A Zero Coupon, due 08/15/2008(c) |
| 11,020 |
| 9,507 |
|
Ukraine (1.0%) |
|
|
|
|
|
Ukraine Government-144A |
|
|
|
|
|
6.58%, due 11/21/2016 |
| 3,010 |
| 3,063 |
|
Venezuela (3.9%) |
|
|
|
|
|
Republic of Venezuela |
|
|
|
|
|
10.75%, due 09/19/2013 |
| 4,930 |
| 6,010 |
|
8.50%, due 10/08/2014 |
| 2,100 |
| 2,316 |
|
9.25%, due 09/15/2027 |
| 1,610 |
| 1,985 |
|
Republic of Venezuela-144A |
|
|
|
|
|
5.75%, due 02/26/2016 |
| 1,640 |
| 1,525 |
|
Total Foreign Government Obligations (cost: $206,471) |
|
|
| 223,378 |
|
CORPORATE DEBT SECURITIES (18.6%) |
|
|
|
|
|
Brazil (1.9%) |
|
|
|
|
|
Reais Denominated NTN-F Linked Notes Reg S (JPMorgan Chase Bank, NA, London Branch) |
|
|
|
|
|
10.00%, due 01/02/2012(d) | BRL | 11,610 |
| 5,740 |
|
Cayman Islands (0.7%) |
|
|
|
|
|
Banco Abn Amro Real S.A.-144A |
|
|
|
|
|
15.86%, due 12/13/2007 | BRL | 4,000 |
| 2,017 |
|
Chile (1.1%) |
|
|
|
|
|
Empresa Nacional de Petroleo |
|
|
|
|
|
6.75%, due 11/15/2012 |
| 2,800 |
| 2,975 |
|
Empresa Nacional de Petroleo-144A |
|
|
|
|
|
6.75%, due 11/15/2012 |
| 500 |
| 531 |
|
Luxembourg (4.1%) |
|
|
|
|
|
Gaz Capital for Gazprom |
|
|
|
|
|
8.63%, due 04/28/2034 |
| 1,480 |
| 1,927 |
|
Gaz Capital SA-144A |
|
|
|
|
|
6.21%, due 11/22/2016 |
| 5,743 |
| 5,829 |
|
RSHB Capital SA for OJSC Russian Agricultural Bank |
|
|
|
|
|
7.18%, due 05/16/2013 |
| 450 |
| 479 |
|
RSHB Capital SA for OJSC Russian Agricultural Bank-144A |
|
|
|
|
|
7.18%, due 05/16/2013 |
| 4,130 |
| 4,383 |
|
Mexico (1.2%) |
|
|
|
|
|
Petroleos Mexicanos, Guaranteed Note |
|
|
|
|
|
8.63%, due 12/01/2023 |
| 1,750 |
| 2,209 |
|
9.50%, due 09/15/2027 |
| 1,000 |
| 1,383 |
|
Netherlands (3.3%) |
|
|
|
|
|
Pindo Deli Finance Mauritius |
|
|
|
|
|
6.00%, due 04/28/2015(*) |
| 681 |
| 552 |
|
6.00%, due 04/28/2018(*) |
| 1,500 |
| 780 |
|
161
0.00%, due 04/28/2025(*) |
| 1,500 |
| 210 |
|
Pindo Deli Finance Mauritius-144A |
|
|
|
|
|
6.00%, due 04/28/2015(*) |
| 253 |
| 205 |
|
6.00%, due 04/28/2018 |
| 1,800 |
| 936 |
|
0.00%, due 04/28/2025(*) |
| 9,415 |
| 1,318 |
|
Tjiwi Kimia Finance Mauritius, Ltd. |
|
|
|
|
|
6.00%, due 04/28/2015(*) |
| 2,118 |
| 1,763 |
|
6.00%, due 04/28/2018(*) |
| 1,000 |
| 530 |
|
0.00%, due 04/28/2027(*) |
| 1,500 |
| 210 |
|
Tjiwi Kimia Finance Mauritius, Ltd.-144A |
|
|
|
|
|
6.00%, due 04/28/2015(*) |
| 957 |
| 797 |
|
6.00%, due 04/28/2018(*) |
| 5,296 |
| 2,807 |
|
0.00%, due 04/28/2027(*) |
| 1,045 |
| 146 |
|
Trinidad (0.7%) |
|
|
|
|
|
National Gas Co., of Trinidad and Tobago, Ltd., Senior Note |
|
|
|
|
|
6.05%, due 01/15/2036 |
| 1,000 |
| 987 |
|
National Gas Co., of Trinidad and Tobago, Ltd.-144A |
|
|
|
|
|
6.05%, due 01/15/2036 |
| 1,156 |
| 1,138 |
|
Tunisia (0.6%) |
|
|
|
|
|
Banque Centrale de Tunisie |
|
|
|
|
|
7.38%, due 04/25/2012 |
| 1,600 |
| 1,731 |
|
United States (5.0%) |
|
|
|
|
|
Pemex Project Funding Master Trust |
|
|
|
|
|
6.65%, due 06/15/2010(*) |
| 3,950 |
| 4,069 |
|
9.13%, due 10/13/2010 |
| 4,500 |
| 5,049 |
|
9.50%, due 09/15/2027 |
| 3,470 |
| 4,797 |
|
Pemex Project Funding Master Trust-144A |
|
|
|
|
|
6.65%, due 06/15/2010(*) |
| 1,500 |
| 1,544 |
|
Total Corporate Debt Securities (cost: $57,330) |
|
|
| 57,042 |
|
|
| Contracts(u) |
| Value |
| |
PURCHASED OPTIONS (0.1%)(#) |
|
|
|
|
| |
Put Options (0.1%) |
|
|
|
|
| |
Brazilian Real |
| 14,568,000 |
| 219 |
| |
Put Strike $2.25 |
|
|
|
|
| |
Expires 01/31/2008 |
|
|
|
|
| |
Turkish Lira |
| 12,170,000 |
| 12 |
| |
Put Strike $1.51 |
|
|
|
|
| |
Expires 07/24/2007 |
|
|
|
|
| |
Total Purchased Options (cost: $1,003) |
|
|
| 231 |
| |
Total Investment Securities (cost: $264,804)(#) |
|
|
| $ | 280,651 |
|
|
| Contracts(u) |
| Value |
|
WRITTEN OPTIONS (-0.1%) |
|
|
|
|
|
Put Options (-0.1%) |
|
|
|
|
|
Brazilian Real |
| 34,610,275 |
| (217 | ) |
Put Strike $2.45 |
|
|
|
|
|
Expires 01/31/2008 |
|
|
|
|
|
Turkish Lira |
| 31,321,740 |
| — | (o) |
Put Strike $1.66 |
|
|
|
|
|
Expires 07/24/2007 |
|
|
|
|
|
Total Written Options (premiums: $1,003) |
|
|
| (217 | ) |
NOTES TO SCHEDULE OF INVESTMENTS:
(*) Floating or variable rate note. Rate is listed as of April 30, 2007.
(a) Redemption linked to Federative Republic of Brazil Bonds due 2/22/2010.
(b) Redemption linked to Federative Republic of Brazil NTN-B Bonds due 5/15/2009.
162
(c) Redemption linked to Republic of Turkey government bonds due 8/13/2008.
(d) Redemption linked to Federative Republic of Brazil NTN-F Bonds due 1/1/2012.
(u) Contract amounts are not in thousands.
(o) Value is less than $1.
(e) Security is currently in default on interest payments.
(#) Aggregate cost for federal income tax purposes is $265,509. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $18,601 and $3,459, respectively. Net unrealized appreciation for tax purposes is $15,142.
DEFINITIONS:
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 April 30, 2007, these securities aggregated $44,832 or 14.6% of the net assets of the Fund. |
BRL |
| Brazilian Real |
MXN |
| Mexican Peso |
The notes to the financial statements are an integral part of this report.
163
|
| Percentage of |
|
|
| |
|
| Net Assets |
| Value |
| |
INVESTMENTS BY INDUSTRY: |
|
|
|
|
| |
Sovereign Government |
| 72.6 | % | $ | 223,378 |
|
Oil & Gas Extraction |
| 8.3 | % | 25,623 |
| |
Commercial Banks |
| 4.7 | % | 14,349 |
| |
Paper & Allied Products |
| 3.4 | % | 10,254 |
| |
Security & Commodity Brokers |
| 1.9 | % | 5,829 |
| |
Mortgage Bankers & Brokers |
| 0.3 | % | 987 |
| |
Put Options |
| 0.1 | % | 231 |
| |
Investment Securities, at value |
| 91.3 | % | 280,651 |
| |
Total Investment Securities |
| 91.3 | % | $ | 280,651 |
|
164
TA IDEX Van Kampen Mid-Cap Growth
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,131.70 |
| 0.90 | % | $ | 4.76 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,020.33 |
| 0.90 | % | 4.51 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
165
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Basic Materials |
| 2.2 | % |
Communications |
| 19.2 | % |
Consumer Cyclical |
| 16.8 | % |
Consumer Non-Cyclical |
| 13.7 | % |
Diversified |
| 1.2 | % |
Energy |
| 6.8 | % |
Financial |
| 8.2 | % |
Industry |
| 10.1 | % |
Technology |
| 4.0 | % |
Other |
| 17.8 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
166
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
|
|
| Shares |
| Value |
| |
COMMON STOCKS (97.4%) |
|
|
|
|
|
|
| |
Apparel & Accessory Stores (2.9%) |
|
|
|
|
|
|
| |
Abercrombie & Fitch Co.-Class A |
|
|
| 30,059 |
| $ | 2,455 |
|
Automotive Dealers (1.9%) |
|
|
|
|
|
|
| |
AutoZone, Inc.(‡) |
|
|
| 12,006 |
| 1,597 |
| |
Business Services (10.8%) |
|
|
|
|
|
|
| |
Aeroplan Income Fund |
|
|
| 121,581 |
| 2,145 |
| |
ChoicePoint, Inc.(‡)(†) |
|
|
| 36,614 |
| 1,390 |
| |
Focus Media Holding Ltd., ADR(‡)(†) |
|
|
| 22,578 |
| 835 |
| |
Iron Mountain, Inc.(‡) |
|
|
| 64,458 |
| 1,811 |
| |
Lamar Advertising Co. |
|
|
| 12,811 |
| 773 |
| |
Monster Worldwide, Inc.(‡) |
|
|
| 47,076 |
| 1,980 |
| |
Chemicals & Allied Products (1.9%) |
|
|
|
|
|
|
| |
Cabot Corp. |
|
|
| 16,199 |
| 734 |
| |
Nalco Holding Co. |
|
|
| 30,566 |
| 812 |
| |
Communication (2.9%) |
|
|
|
|
|
|
| |
Crown Castle International Corp.(‡)(†) |
|
|
| 45,818 |
| 1,573 |
| |
Global Payments, Inc. |
|
|
| 21,059 |
| 800 |
| |
Computer & Data Processing Services (4.8%) |
|
|
|
|
|
|
| |
Baidu.com, ADR(‡)(†) |
|
|
| 8,749 |
| 1,064 |
| |
NHN Corp.(‡) |
|
|
| 5,202 |
| 822 |
| |
salesforce.com, Inc.(‡) |
|
|
| 28,020 |
| 1,177 |
| |
Tencent Holdings, Ltd. |
|
|
| 271,000 |
| 930 |
| |
Educational Services (2.7%) |
|
|
|
|
|
|
| |
Apollo Group, Inc.-Class A (‡)(†) |
|
|
| 25,928 |
| 1,226 |
| |
ITT Educational Services, Inc.(‡) |
|
|
| 10,128 |
| 985 |
| |
Electric, Gas & Sanitary Services (2.0%) |
|
|
|
|
|
|
| |
Stericycle, Inc.(‡) |
|
|
| 18,748 |
| 1,634 |
| |
Electronic Components & Accessories (1.2%) |
|
|
|
|
|
|
| |
Tessera Technologies, Inc.(‡)(†) |
|
|
| 24,316 |
| 1,040 |
| |
Gas Production & Distribution (3.6%) |
|
|
|
|
|
|
| |
Questar Corp. |
|
|
| 8,815 |
| 856 |
| |
Southwestern Energy Co.(‡) |
|
|
| 50,196 |
| 2,108 |
| |
Hotels & Other Lodging Places (6.6%) |
|
|
|
|
|
|
| |
Choice Hotels International, Inc. |
|
|
| 21,737 |
| 818 |
| |
Hilton Hotels Corp. |
|
|
| 23,265 |
| 791 |
| |
Intercontinental Hotels Group PLC, ADR |
|
|
| 62,408 |
| 1,508 |
| |
Wynn Resorts, Ltd.(†) |
|
|
| 23,268 |
| 2,378 |
| |
Industrial Machinery & Equipment (1.4%) |
|
|
|
|
|
|
| |
Pentair, Inc. |
|
|
| 35,563 |
| 1,143 |
| |
Insurance (2.7%) |
|
|
|
|
|
|
| |
Alleghany Corp.(‡) |
|
|
| 2,935 |
| 1,050 |
| |
Leucadia National Corp. |
|
|
| 39,508 |
| 1,191 |
| |
Insurance Agents, Brokers & Service (0.8%) |
|
|
|
|
|
|
| |
Brown & Brown, Inc. |
|
|
| 26,918 |
| 693 |
| |
Management Services (2.8%) |
|
|
|
|
|
|
| |
Corporate Executive Board Co. |
|
|
| 36,480 |
| 2,322 |
| |
Medical Instruments & Supplies (2.2%) |
|
|
|
|
|
|
| |
Techne Corp.(‡)(†) |
|
|
| 31,332 |
| 1,848 |
| |
Oil & Gas Extraction (4.5%) |
|
|
|
|
|
|
| |
Ultra Petroleum Corp.(‡) |
|
|
| 65,350 |
| 3,707 |
| |
Paper & Allied Products (0.9%) |
|
|
|
|
|
|
| |
MeadWestvaco Corp. |
|
|
| 23,350 |
| 779 |
| |
Personal Services (0.9%) |
|
|
|
|
|
|
| |
Weight Watchers International, Inc. |
|
|
| 15,970 |
| 766 |
| |
Pharmaceuticals (2.8%) |
|
|
|
|
|
|
| |
Dade Behring Holdings, Inc. |
|
|
| 47,827 |
| 2,349 |
| |
Primary Metal Industries (3.1%) |
|
|
|
|
|
|
| |
Chaparral Steel Co. |
|
|
| 20,201 |
| 1,424 |
| |
Texas Industries, Inc. |
|
|
| 14,739 |
| 1,123 |
| |
Radio & Television Broadcasting (2.9%) |
|
|
|
|
|
|
| |
Grupo Televisa SA, Sponsored ADR |
|
|
| 87,527 |
| 2,455 |
| |
Real Estate (3.8%) |
|
|
|
|
|
|
| |
Desarrolladora Homex SA de CV, ADR(‡)(†) |
|
|
| 20,258 |
| 1,176 |
| |
Forest City Enterprises, Inc.-Class A (†) |
|
|
| 17,746 |
| 1,186 |
| |
167
St. Joe Co. (The)(†) |
|
|
| 14,231 |
| 806 |
|
Residential Building Construction (1.6%) |
|
|
|
|
|
|
|
NVR, Inc.(‡)(†) |
|
|
| 1,590 |
| 1,310 |
|
Restaurants (2.7%) |
|
|
|
|
|
|
|
Wendy’s International, Inc. |
|
|
| 58,580 |
| 2,208 |
|
Retail Trade (5.0%) |
|
|
|
|
|
|
|
Amazon.com, Inc.(‡)(†) |
|
|
| 55,805 |
| 3,423 |
|
Petsmart, Inc. |
|
|
| 22,194 |
| 737 |
|
Savings Institutions (1.5%) |
|
|
|
|
|
|
|
Peoples United Financial |
|
|
| 64,272 |
| 1,280 |
|
Security & Commodity Brokers (3.7%) |
|
|
|
|
|
|
|
Calamos Asset Management, Inc.-Class A |
|
|
| 49,001 |
| 1,150 |
|
Fortress Investment Group LLC-Class A(†) |
|
|
| 2,995 |
| 87 |
|
Janus Capital Group, Inc. |
|
|
| 72,636 |
| 1,817 |
|
Telecommunications (5.6%) |
|
|
|
|
|
|
|
Equinix, Inc.(‡)(†) |
|
|
| 13,230 |
| 1,104 |
|
NII Holdings, Inc.(‡)(†) |
|
|
| 34,655 |
| 2,660 |
|
SAVVIS, Inc.(‡) |
|
|
| 16,635 |
| 858 |
|
Transportation & Public Utilities (5.4%) |
|
|
|
|
|
|
|
CH Robinson Worldwide, Inc.(†) |
|
|
| 48,463 |
| 2,591 |
|
Expeditors International of Washington, Inc. |
|
|
| 44,803 |
| 1,873 |
|
Transportation Equipment (1.8%) |
|
|
|
|
|
|
|
Li & Fung, Ltd. |
|
|
| 478,000 |
| 1,503 |
|
Total Common Stocks (cost: $72,888) |
|
|
|
|
| 80,861 |
|
|
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (21.0%) |
|
|
|
|
|
|
|
Debt (21.0%) |
|
|
|
|
|
|
|
Bank Notes (1.3%) |
|
|
|
|
|
|
|
Bank of America |
|
|
|
|
|
|
|
5.31%, due 05/17/2007(*) |
|
|
| 544 |
| 544 |
|
5.27%, due 06/18/2007(*) |
|
|
| 544 |
| 544 |
|
Commercial Paper (4.6%) |
|
|
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
|
|
5.31%, due 07/10/2007 |
|
|
| 217 |
| 217 |
|
CAFCO LLC-144A |
|
|
|
|
|
|
|
5.29%, due 05/31/2007 |
|
|
| 211 |
| 211 |
|
Charta LLC-144A |
|
|
|
|
|
|
|
5.30%, due 05/09/2007 |
|
|
| 145 |
| 145 |
|
5.29%, due 06/13/2007 |
|
|
| 109 |
| 109 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
|
|
5.29%, due 05/25/2007 |
|
|
| 109 |
| 109 |
|
CRC Funding LLC-144A |
|
|
|
|
|
|
|
5.28%, due 05/16/2007 |
|
|
| 109 |
| 109 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
|
|
5.30%, due 05/07/2007 |
|
|
| 109 |
| 109 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
|
|
5.29%, due 05/07/2007 |
|
|
| 109 |
| 109 |
|
5.28%, due 05/24/2007 |
|
|
| 109 |
| 109 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
|
|
5.30%, due 05/02/2007 |
|
|
| 217 |
| 217 |
|
Liberty Street-144A |
|
|
|
|
|
|
|
5.29%, due 05/03/2007 |
|
|
| 213 |
| 213 |
|
Morgan Stanley |
|
|
|
|
|
|
|
5.32%, due 08/01/2007 |
|
|
| 217 |
| 217 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
|
|
5.30%, due 05/15/2007 |
|
|
| 217 |
| 217 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
|
|
5.28%, due 05/22/2007 |
|
|
| 431 |
| 431 |
|
5.30%, due 05/29/2007 |
|
|
| 109 |
| 109 |
|
5.29%, due 05/31/2007 |
|
|
| 109 |
| 109 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
|
|
5.29%, due 05/01/2007 |
|
|
| 109 |
| 109 |
|
5.29%, due 05/17/2007 |
|
|
| 109 |
| 109 |
|
168
5.28%, due 06/01/2007 |
| 109 |
| 109 |
|
5.29%, due 06/19/2007 |
| 143 |
| 143 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
5.29%, due 05/23/2007 |
| 163 |
| 163 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
5.28%, due 05/24/2007 |
| 109 |
| 109 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
5.28%, due 05/17/2007 |
| 217 |
| 217 |
|
Yorktown Capital LLC |
|
|
|
|
|
5.30%, due 05/14/2007 |
| 109 |
| 109 |
|
Euro Dollar Overnight (2.6%) |
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/01/2007 |
| 109 |
| 109 |
|
Citigroup |
|
|
|
|
|
5.31%, due 05/04/2007 |
| 217 |
| 217 |
|
Deutsche Bank |
|
|
|
|
|
5.28%, due 05/03/2007 |
| 218 |
| 218 |
|
First Tennessee National Corp. |
|
|
|
|
|
5.31%, due 05/02/2007 |
| 218 |
| 218 |
|
National Australia Bank |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 218 |
| 218 |
|
Rabobank Nederland |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 218 |
| 218 |
|
Royal Bank of Canada |
|
|
|
|
|
5.30%, due 05/01/2007 |
| 218 |
| 218 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 109 |
| 109 |
|
Societe Generale |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 218 |
| 218 |
|
Svenska Handlesbanken |
|
|
|
|
|
5.31%, due 05/01/2007 |
| 413 |
| 413 |
|
Euro Dollar Terms (7.6%) |
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
5.31%, due 05/14/2007 |
| 218 |
| 218 |
|
Bank of Montreal |
|
|
|
|
|
5.28%, due 05/18/2007 |
| 109 |
| 109 |
|
Bank of Nova Scotia |
|
|
|
|
|
5.28%, due 05/09/2007 |
| 152 |
| 152 |
|
Barclays |
|
|
|
|
|
5.29%, due 05/07/2007 |
| 218 |
| 218 |
|
5.30%, due 05/16/2007 |
| 218 |
| 218 |
|
5.29%, due 05/21/2007 |
| 109 |
| 109 |
|
5.30%, due 06/04/2007 |
| 109 |
| 109 |
|
5.29%, due 06/08/2007 |
| 218 |
| 218 |
|
Calyon |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 109 |
| 109 |
|
5.31%, due 05/24/2007 |
| 218 |
| 218 |
|
Canadian Imperial Bank of Commerce |
|
|
|
|
|
5.28%, due 05/16/2007 |
| 326 |
| 326 |
|
5.28%, due 05/29/2007 |
| 109 |
| 109 |
|
Credit Suisse First Boston Corp. |
|
|
|
|
|
5.30%, due 05/17/2007 |
| 218 |
| 218 |
|
Deutsche Bank |
|
|
|
|
|
5.30%, due 05/15/2007 |
| 218 |
| 218 |
|
Fortis Bank |
|
|
|
|
|
5.28%, due 05/21/2007 |
| 326 |
| 326 |
|
5.28%, due 05/25/2007 |
| 326 |
| 326 |
|
5.30%, due 06/25/2007 |
| 218 |
| 218 |
|
HBOS Halifax Bank of Scotland |
|
|
|
|
|
5.30%, due 06/13/2007 |
| 326 |
| 326 |
|
Royal Bank of Scotland |
|
|
|
|
|
5.30%, due 05/08/2007 |
| 218 |
| 218 |
|
5.30%, due 05/09/2007 |
| 109 |
| 109 |
|
169
5.31%, due 05/25/2007 |
| 218 |
| 218 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
| |
5.28%, due 05/15/2007 |
| 109 |
| 109 |
| |
Swedbank AB |
|
|
|
|
| |
5.30%, due 05/11/2007 |
| 218 |
| 218 |
| |
Toronto Dominion Bank |
|
|
|
|
| |
5.28%, due 05/10/2007 |
| 218 |
| 218 |
| |
UBS AG |
|
|
|
|
| |
5.28%, due 06/01/2007 |
| 218 |
| 218 |
| |
5.29%, due 06/12/2007 |
| 435 |
| 435 |
| |
5.29%, due 06/15/2007 |
| 326 |
| 326 |
| |
5.29%, due 06/18/2007 |
| 544 |
| 544 |
| |
Repurchase Agreements (4.9%)(††) |
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $603 on 05/01/2007 |
| 603 |
| 603 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $2,395 on 05/01/2007 |
| 2,395 |
| 2,395 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $1,049 on 05/01/2007 |
| 1,049 |
| 1,049 |
| |
Total Security Lending Collateral (cost: $17,457) |
|
|
| 17,457 |
| |
|
|
|
|
|
| |
Total Investment Securities (cost: $90,345)(#) |
|
|
| $ | 98,318 |
|
The notes to the financial statements are an integral part of this report.
NOTES TO SCHEDULE OF INVESTMENTS: | |||
|
|
| |
(‡) |
| Non-income producing. | |
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $17,010. | |
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. | |
(††) |
| Cash collateral for the Repurchase Agreements, valued at $4,151, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. | |
(#) |
| Aggregate cost for federal income tax purposes is $90,552. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $10,033 and $2,267, respectively. Net unrealized appreciation for tax purposes is $7,766. | |
| |||
DEFINITIONS: | |||
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 April 30, 2007, these securities aggregated $3,265 or 3.9% of the net assets of the Fund. | |
ADR |
| American Depositary Receipt | |
170
TA IDEX Van Kampen Small Company Growth
UNDERSTANDING YOUR FUND’S EXPENSES
(unaudited)
SHAREHOLDER EXPENSES
Fund shareholders may incur ongoing costs, including management fees and other fund expenses. Shares of the Fund currently are sold only to certain Transamerica IDEX Mutual Funds and AEGON/Transamerica Series Trust (an affiliate of Transamerica IDEX Mutual Funds) asset allocation funds at net asset value, without any transaction costs.
The following Example is intended to help you understand your ongoing costs (in dollars and cents) of investing in the Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at November 1, 2006 and held for the entire period until April 30, 2007.
ACTUAL EXPENSES
The first line in the table below provides information about actual account values and actual expenses. You may use the information in this line, 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 first line of your Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line in the table below 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 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.
|
| Beginning |
| Ending Account |
| Annualized |
| Expenses Paid |
| |||
|
|
|
|
|
|
|
|
|
| |||
Class I |
|
|
|
|
|
|
|
|
| |||
Actual |
| $ | 1,000.00 |
| $ | 1,074.50 |
| 1.01 | % | $ | 5.20 |
|
Hypothetical(b) |
| 1,000.00 |
| 1,019.79 |
| 1.01 | % | 5.06 |
| |||
(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 number of days in the period (181 days), and divided by the number of days in the year (365 days).
(b) 5% return per year before expenses.
171
TABULAR PRESENTATION OF SCHEDULE OF INVESTMENTS
By Sector
At April 30, 2007 (unaudited)
Basic Materials |
| 3.3 | % |
Communications |
| 12.5 | % |
Consumer Cyclical |
| 22.8 | % |
Consumer Non-Cyclical |
| 17.7 | % |
Energy |
| 2.7 | % |
Financial |
| 5.2 | % |
Industrial |
| 7.3 | % |
Technology |
| 5.7 | % |
Utilities |
| 0.4 | % |
Other |
| 22.4 | % |
|
| 100.0 | % |
This chart shows the percentage breakdown by sector of the Fund’s total investment securities.
172
SCHEDULE OF INVESTMENTS
At April 30, 2007
(all amounts except share amounts in thousands)
(unaudited)
|
|
|
| Shares |
| Value |
| |
COMMON STOCKS (95.2%) |
|
|
|
|
|
|
| |
Amusement & Recreation Services (4.0%) |
|
|
|
|
|
|
| |
Gaylord Entertainment Co.(‡) |
|
|
| 109,951 |
| $ | 6,025 |
|
Lakes Entertainment, Inc.(‡)(†) |
|
|
| 52,519 |
| 650 |
| |
Apparel & Accessory Stores (1.9%) |
|
|
|
|
|
|
| |
Citi Trends, Inc.(‡)(†) |
|
|
| 80,660 |
| 3,197 |
| |
Automotive Dealers (0.0%) |
|
|
|
|
|
|
| |
Copart, Inc.(‡) |
|
|
| 1,175 |
| 34 |
| |
Business Services (5.1%) |
|
|
|
|
|
|
| |
Ctrip.com International, Ltd., ADR |
|
|
| 44,755 |
| 3,174 |
| |
Forrester Research, Inc.(‡) |
|
|
| 60,895 |
| 1,570 |
| |
Macquarie Infrastructure Co. Trust |
|
|
| 69,388 |
| 2,955 |
| |
Viad Corp. |
|
|
| 20,684 |
| 845 |
| |
Communication (2.9%) |
|
|
|
|
|
|
| |
Charter Communications, Inc.-Class A(‡) |
|
|
| 282,910 |
| 854 |
| |
SBA Communications Corp.(‡) |
|
|
| 137,473 |
| 4,044 |
| |
Computer & Data Processing Services (11.1%) |
|
|
|
|
|
|
| |
Bankrate, Inc.(‡)(†) |
|
|
| 30,850 |
| 1,245 |
| |
Blackboard, Inc.(‡)(†) |
|
|
| 53,856 |
| 1,848 |
| |
CNET Networks, Inc.(‡) |
|
|
| 170,064 |
| 1,434 |
| |
Convera Corp.(‡)(†) |
|
|
| 66,892 |
| 217 |
| |
CoStar Group, Inc.(‡) |
|
|
| 65,927 |
| 3,218 |
| |
IHS, Inc.-Class A(‡) |
|
|
| 113,162 |
| 4,678 |
| |
Interactive Data Corp. |
|
|
| 107,694 |
| 3,083 |
| |
NetFlix, Inc.(‡)(†) |
|
|
| 57,571 |
| 1,276 |
| |
Websense, Inc.(‡) |
|
|
| 67,676 |
| 1,672 |
| |
Computer & Office Equipment (0.5%) |
|
|
|
|
|
|
| |
3Com Corp.(‡) |
|
|
| 220,590 |
| 889 |
| |
Construction (1.6%) |
|
|
|
|
|
|
| |
Gafisa SA, ADR(‡) |
|
|
| 92,225 |
| 2,582 |
| |
Educational Services (6.3%) |
|
|
|
|
|
|
| |
Ambassadors Group, Inc. |
|
|
| 95,760 |
| 3,210 |
| |
Ambassadors International, Inc.(†) |
|
|
| 55,697 |
| 2,279 |
| |
Strayer Education, Inc. |
|
|
| 40,798 |
| 5,073 |
| |
Electric, Gas & Sanitary Services (0.5%) |
|
|
|
|
|
|
| |
Pico Holdings, Inc.(‡) |
|
|
| 18,454 |
| 824 |
| |
Electronic Components & Accessories (2.4%) |
|
|
|
|
|
|
| |
Omnivision Technologies, Inc.(‡)(†) |
|
|
| 37,879 |
| 512 |
| |
Tessera Technologies, Inc.(‡) |
|
|
| 81,957 |
| 3,507 |
| |
Engineering & Management Services (2.8%) |
|
|
|
|
|
|
| |
Grupo Aeroportuario del Pacifico SA de CV, ADR |
|
|
| 103,879 |
| 4,697 |
| |
Fabricated Metal Products (0.6%) |
|
|
|
|
|
|
| |
Mueller Water Products, Inc.-Class A(†) |
|
|
| 71,538 |
| 1,030 |
| |
Food & Kindred Products (0.9%) |
|
|
|
|
|
|
| |
Peet’s Coffee & Tea, Inc.(‡) |
|
|
| 59,495 |
| 1,543 |
| |
Holding & Other Investment Offices (2.8%) |
|
|
|
|
|
|
| |
Endeavor Acquisition Corp.(‡)(†) |
|
|
| 131,921 |
| 1,384 |
| |
Gmarket, Inc., ADR(‡) |
|
|
| 65,211 |
| 1,141 |
| |
Jamba, Inc.(‡)(†) |
|
|
| 177,167 |
| 1,552 |
| |
Microbia, Inc.(a)(¡) |
|
|
| 96,357 |
| 602 |
| |
Hotels & Other Lodging Places (2.4%) |
|
|
|
|
|
|
| |
Vail Resorts, Inc.(‡)(†) |
|
|
| 71,486 |
| 4,076 |
| |
Industrial Machinery & Equipment (1.1%) |
|
|
|
|
|
|
| |
Middleby Corp.(‡) |
|
|
| 12,711 |
| 1,745 |
| |
Insurance (0.8%) |
|
|
|
|
|
|
| |
Alleghany Corp.(‡) |
|
|
| 3,737 |
| 1,337 |
| |
Lumber & Other Building Materials (0.3%) |
|
|
|
|
|
|
| |
Beacon Roofing Supply, Inc.(‡)(†) |
|
|
| 33,915 |
| 534 |
| |
Lumber & Wood Products (0.7%) |
|
|
|
|
|
|
| |
Deltic Timber Corp. |
|
|
| 21,606 |
| 1,079 |
| |
Management Services (0.4%) |
|
|
|
|
|
|
| |
Corporate Executive Board Co. |
|
|
| 9,249 |
| 589 |
| |
Manufacturing Industries (1.7%) |
|
|
|
|
|
|
| |
Aruze Corp. |
|
|
| 82,500 |
| 2,911 |
| |
173
Medical Instruments & Supplies (3.6%) |
|
|
|
|
|
|
|
Techne Corp.(‡) |
|
|
| 102,369 |
| 6,037 |
|
Oil & Gas Extraction (3.3%) |
|
|
|
|
|
|
|
Delta Petroleum Corp.(‡)(†) |
|
|
| 96,547 |
| 2,094 |
|
GMX Resources, Inc.(‡)(†) |
|
|
| 34,235 |
| 1,147 |
|
Quicksilver Resources, Inc.(‡) |
|
|
| 54,568 |
| 2,284 |
|
Pharmaceuticals (0.7%) |
|
|
|
|
|
|
|
Noven Pharmaceuticals, Inc.(‡) |
|
|
| 48,669 |
| 1,139 |
|
Primary Metal Industries (5.4%) |
|
|
|
|
|
|
|
Chaparral Steel Co. |
|
|
| 43,204 |
| 3,046 |
|
Kaiser Aluminum Corp.(‡) |
|
|
| 33,747 |
| 2,660 |
|
Texas Industries, Inc. |
|
|
| 42,843 |
| 3,263 |
|
Printing & Publishing (1.1%) |
|
|
|
|
|
|
|
VistaPrint, Ltd.(‡) |
|
|
| 50,158 |
| 1,875 |
|
Real Estate (1.5%) |
|
|
|
|
|
|
|
Consolidated-Tomoka Land Co. |
|
|
| 12,081 |
| 907 |
|
Grubb & Ellis Co.(‡) |
|
|
| 97,254 |
| 1,148 |
|
HouseValues, Inc.(‡)(†) |
|
|
| 94,130 |
| 458 |
|
Research & Testing Services (3.9%) |
|
|
|
|
|
|
|
Advisory Board Co. (The)(‡) |
|
|
| 102,392 |
| 4,862 |
|
Gen-Probe, Inc.(‡) |
|
|
| 33,939 |
| 1,735 |
|
Residential Building Construction (1.0%) |
|
|
|
|
|
|
|
Brookfield Homes Corp.(†) |
|
|
| 47,393 |
| 1,610 |
|
Restaurants (5.9%) |
|
|
|
|
|
|
|
AFC Enterprises(‡) |
|
|
| 136,125 |
| 2,588 |
|
BJ’s Restaurants, Inc.(‡)(†) |
|
|
| 97,728 |
| 2,012 |
|
Krispy Kreme Doughnuts, Inc.(‡)(†) |
|
|
| 127,842 |
| 1,244 |
|
PF Chang’s China Bistro, Inc.(‡)(†) |
|
|
| 107,297 |
| 4,104 |
|
Retail Trade (5.9%) |
|
|
|
|
|
|
|
Blue Nile, Inc.(‡)(†) |
|
|
| 97,982 |
| 4,611 |
|
Build-A-Bear Workshop, Inc.(‡)(†) |
|
|
| 68,064 |
| 1,875 |
|
CKX, Inc.(‡) |
|
|
| 97,970 |
| 1,022 |
|
Marvel Entertainment, Inc.(‡) |
|
|
| 82,273 |
| 2,430 |
|
Security & Commodity Brokers (3.2%) |
|
|
|
|
|
|
|
Greenhill & Co., Inc.(†) |
|
|
| 85,630 |
| 5,416 |
|
Telecommunications (3.9%) |
|
|
|
|
|
|
|
Equinix, Inc.(‡) |
|
|
| 63,424 |
| 5,294 |
|
FiberTower Corp.(‡)(†) |
|
|
| 76,292 |
| 344 |
|
IDT Corp.-Class B |
|
|
| 77,591 |
| 857 |
|
Transportation & Public Utilities (0.4%) |
|
|
|
|
|
|
|
Integrated Distribution Services Group, Ltd. |
|
|
| 218,000 |
| 613 |
|
Trucking & Warehousing (2.2%) |
|
|
|
|
|
|
|
Landstar System, Inc. |
|
|
| 76,217 |
| 3,682 |
|
Wholesale Trade Durable Goods (2.4%) |
|
|
|
|
|
|
|
Pool Corp.(†) |
|
|
| 101,644 |
| 4,079 |
|
Total Common Stocks (cost: $136,412) |
|
|
|
|
| 159,551 |
|
|
|
|
| Principal |
| Value |
|
SECURITY LENDING COLLATERAL (27.5%) |
|
|
|
|
|
|
|
Debt (27.5%) |
|
|
|
|
|
|
|
Bank Notes (1.7%) |
|
|
|
|
|
|
|
Bank of America |
|
|
|
|
|
|
|
5.31%, due 05/17/2007(*) |
|
|
| 1,439 |
| 1,439 |
|
5.27%, due 06/18/2007(*) |
|
|
| 1,439 |
| 1,439 |
|
Commercial Paper (6.0%) |
|
|
|
|
|
|
|
Bear Stearns & Co. |
|
|
|
|
|
|
|
5.31%, due 07/10/2007 |
|
|
| 575 |
| 575 |
|
CAFCO LLC-144A |
|
|
|
|
|
|
|
5.29%, due 05/31/2007 |
|
|
| 557 |
| 557 |
|
Charta LLC-144A |
|
|
|
|
|
|
|
5.30%, due 05/09/2007 |
|
|
| 383 |
| 383 |
|
5.29%, due 06/13/2007 |
|
|
| 288 |
| 288 |
|
Compass Securitization LLC-144A |
|
|
|
|
|
|
|
5.29%, due 05/25/2007 |
|
|
| 288 |
| 288 |
|
174
CRC Funding LLC-144A |
|
|
|
|
|
|
|
5.28%, due 05/16/2007 |
|
|
| 288 |
| 288 |
|
Fairway Finance Corp.-144A |
|
|
|
|
|
|
|
5.30%, due 05/07/2007 |
|
|
| 288 |
| 288 |
|
Falcon Asset Securitization Corp.-144A |
|
|
|
|
|
|
|
5.29%, due 05/07/2007 |
|
|
| 288 |
| 288 |
|
5.28%, due 05/24/2007 |
|
|
| 288 |
| 288 |
|
Greyhawk Funding LLC-144A |
|
|
|
|
|
|
|
5.30%, due 05/02/2007 |
|
|
| 575 |
| 575 |
|
Liberty Street-144A |
|
|
|
|
|
|
|
5.29%, due 05/03/2007 |
|
|
| 563 |
| 563 |
|
Morgan Stanley |
|
|
|
|
|
|
|
5.32%, due 08/01/2007 |
|
|
| 575 |
| 575 |
|
Old Line Funding LLC-144A |
|
|
|
|
|
|
|
5.30%, due 05/15/2007 |
|
|
| 575 |
| 575 |
|
Paradigm Funding LLC-144A |
|
|
|
|
|
|
|
5.28%, due 05/22/2007 |
|
|
| 1,139 |
| 1,139 |
|
5.30%, due 05/29/2007 |
|
|
| 288 |
| 288 |
|
5.29%, due 05/31/2007 |
|
|
| 288 |
| 288 |
|
Ranger Funding Co. LLC-144A |
|
|
|
|
|
|
|
5.29%, due 05/01/2007 |
|
|
| 288 |
| 288 |
|
5.29%, due 05/17/2007 |
|
|
| 288 |
| 288 |
|
5.28%, due 06/01/2007 |
|
|
| 288 |
| 288 |
|
5.29%, due 06/19/2007 |
|
|
| 379 |
| 379 |
|
Sheffield Receivables Corp.-144A |
|
|
|
|
|
|
|
5.29%, due 05/23/2007 |
|
|
| 432 |
| 432 |
|
Three Pillars Funding LLC-144A |
|
|
|
|
|
|
|
5.28%, due 05/24/2007 |
|
|
| 288 |
| 288 |
|
Variable Funding Capital Co. LLC-144A |
|
|
|
|
|
|
|
5.28%, due 05/17/2007 |
|
|
| 575 |
| 575 |
|
Yorktown Capital LLC |
|
|
|
|
|
|
|
5.30%, due 05/14/2007 |
|
|
| 288 |
| 288 |
|
Euro Dollar Overnight (3.4%) |
|
|
|
|
|
|
|
Bank of Nova Scotia |
|
|
|
|
|
|
|
5.28%, due 05/01/2007 |
|
|
| 288 |
| 288 |
|
Citigroup |
|
|
|
|
|
|
|
5.31%, due 05/04/2007 |
|
|
| 575 |
| 575 |
|
Deutsche Bank |
|
|
|
|
|
|
|
5.28%, due 05/03/2007 |
|
|
| 575 |
| 575 |
|
First Tennessee National Corp. |
|
|
|
|
|
|
|
5.31%, due 05/02/2007 |
|
|
| 575 |
| 575 |
|
National Australia Bank |
|
|
|
|
|
|
|
5.30%, due 05/01/2007 |
|
|
| 575 |
| 575 |
|
Rabobank Nederland |
|
|
|
|
|
|
|
5.30%, due 05/01/2007 |
|
|
| 575 |
| 575 |
|
Royal Bank of Canada |
|
|
|
|
|
|
|
5.30%, due 05/01/2007 |
|
|
| 575 |
| 575 |
|
Royal Bank of Scotland |
|
|
|
|
|
|
|
5.29%, due 05/07/2007 |
|
|
| 288 |
| 288 |
|
Societe Generale |
|
|
|
|
|
|
|
5.31%, due 05/01/2007 |
|
|
| 575 |
| 575 |
|
Svenska Handlesbanken |
|
|
|
|
|
|
|
5.31%, due 05/01/2007 |
|
|
| 1,092 |
| 1,092 |
|
Euro Dollar Terms (10.0%) |
|
|
|
|
|
|
|
BancoBilbao Vizcaya Argentaria SA |
|
|
|
|
|
|
|
5.31%, due 05/14/2007 |
|
|
| 575 |
| 575 |
|
Bank of Montreal |
|
|
|
|
|
|
|
5.28%, due 05/18/2007 |
|
|
| 288 |
| 288 |
|
Bank of Nova Scotia |
|
|
|
|
|
|
|
5.28%, due 05/09/2007 |
|
|
| 403 |
| 403 |
|
Barclays |
|
|
|
|
|
|
|
5.29%, due 05/07/2007 |
|
|
| 575 |
| 575 |
|
175
5.30%, due 05/16/2007 |
|
|
| 575 |
| 575 |
| |
5.29%, due 05/21/2007 |
|
|
| 288 |
| 288 |
| |
5.30%, due 06/04/2007 |
|
|
| 288 |
| 288 |
| |
5.29%, due 06/08/2007 |
|
|
| 575 |
| 575 |
| |
Calyon |
|
|
|
|
|
|
| |
5.30%, due 05/17/2007 |
|
|
| 288 |
| 288 |
| |
5.31%, due 05/24/2007 |
|
|
| 575 |
| 576 |
| |
Canadian Imperial Bank of Commerce |
|
|
|
|
|
|
| |
5.28%, due 05/16/2007 |
|
|
| 863 |
| 863 |
| |
5.28%, due 05/29/2007 |
|
|
| 288 |
| 288 |
| |
Credit Suisse First Boston Corp. |
|
|
|
|
|
|
| |
5.30%, due 05/17/2007 |
|
|
| 576 |
| 576 |
| |
Deutsche Bank |
|
|
|
|
|
|
| |
5.30%, due 05/15/2007 |
|
|
| 576 |
| 576 |
| |
Fortis Bank |
|
|
|
|
|
|
| |
5.28%, due 05/21/2007 |
|
|
| 863 |
| 863 |
| |
5.28%, due 05/25/2007 |
|
|
| 863 |
| 863 |
| |
5.30%, due 06/25/2007 |
|
|
| 576 |
| 576 |
| |
HBOS Halifax Bank of Scotland |
|
|
|
|
|
|
| |
5.30%, due 06/13/2007 |
|
|
| 863 |
| 863 |
| |
Royal Bank of Scotland |
|
|
|
|
|
|
| |
5.30%, due 05/08/2007 |
|
|
| 576 |
| 576 |
| |
5.30%, due 05/09/2007 |
|
|
| 288 |
| 288 |
| |
5.31%, due 05/25/2007 |
|
|
| 576 |
| 576 |
| |
Skandinaviska Enskilda Banken AB |
|
|
|
|
|
|
| |
5.28%, due 05/15/2007 |
|
|
| 288 |
| 288 |
| |
Swedbank AB |
|
|
|
|
|
|
| |
5.30%, due 05/11/2007 |
|
|
| 576 |
| 576 |
| |
Toronto Dominion Bank |
|
|
|
|
|
|
| |
5.28%, due 05/10/2007 |
|
|
| 576 |
| 576 |
| |
UBS AG |
|
|
|
|
|
|
| |
5.28%, due 06/01/2007 |
|
|
| 576 |
| 576 |
| |
5.29%, due 06/12/2007 |
|
|
| 1,151 |
| 1,151 |
| |
5.29%, due 06/15/2007 |
|
|
| 863 |
| 863 |
| |
5.29%, due 06/18/2007 |
|
|
| 1,439 |
| 1,439 |
| |
Repurchase Agreements (6.4%)(††) |
|
|
|
|
|
|
| |
Credit Suisse First Boston Corp. 5.29%, dated 04/30/2007 to be repurchased at $1,594 on 05/01/2007 |
|
|
| 1,594 |
| 1,594 |
| |
Merrill Lynch & Co. 5.21%, dated 04/30/2007 to be repurchased at $6.332 on 05/01/2007 |
|
|
| 6,331 |
| 6,331 |
| |
Morgan Stanley Dean Witter & Co. 5.24%, dated 04/30/2007 to be repurchased at $2,773 on 05/01/2007 |
|
|
| 2,773 |
| 2,773 |
| |
Total Security Lending Collateral (cost: $46,149) |
|
|
|
|
| 46,149 |
| |
|
|
|
|
|
|
|
| |
Total Investment Securities (cost: $182,561)(#) |
|
|
|
|
| $ | 205,700 |
|
The notes to the financial statements are an integral part of this report.
NOTES TO SCHEDULE OF INVESTMENTS:
(‡) |
| Non-income producing. |
(†) |
| At April 30, 2007, all or a portion of this security is on loan (see Note 1). The value at April 30, 2007, of all securities on loan is $44,334. |
(a) |
| Security is deemed to be illiquid. |
176
(*) |
| Floating or variable rate note. Rate is listed as of April 30, 2007. |
(††) |
| Cash collateral for the Repurchase Agreements, valued at $10,974, that serve as collateral for securities lending, are invested in corporate and government bonds with interest rates and maturity dates ranging from 0.00% - 9.12% and 05/30/2007 - 02/01/2037, respectively. |
(¡) |
| Securities valued as determined in good faith in accordance with procedures established by the Fund’s Board of Trustees. |
(#) |
| Aggregate cost for federal income tax purposes is $183,184. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost and aggregate gross unrealized depreciation for all securities in which there is an excess of tax cost over value were $27,005 and $4,489, respectively. Net unrealized appreciation for tax purposes is $22,516. |
DEFINITIONS: | ||
| ||
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 April 30, 2007, these securities aggregated $8,634 or 5.2% of the net assets of the Fund. |
ADR |
| American Depositary Receipt |
177
TA IDEX AllianceBernstein International Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $326,212) (including securities loaned of $2,467) |
| $ | 399,671 |
|
Cash |
| 9,845 |
| |
Foreign currency (cost: $6,912) |
| 6,920 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 1,485 |
| |
Shares of beneficial interest sold |
| 781 |
| |
Interest |
| 29 |
| |
Dividends |
| 1,734 |
| |
Dividend reclaims receivable |
| 175 |
| |
|
| 420,640 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 220 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 46 |
| |
Management and advisory fees |
| 290 |
| |
Administration fees |
| 7 |
| |
Payable for collateral for securities on loan |
| 2,659 |
| |
Other |
| 33 |
| |
|
| 3,255 |
| |
Net Assets |
| $ | 417,385 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 325,720 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,516 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 16,657 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 73,459 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 33 |
| |
Net Assets |
| $ | 417,385 |
|
|
|
|
| |
Shares Outstanding |
| 30,118 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 13.86 |
|
The notes to the financial statements are an integral part of this report.
178
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $402) |
| $ | 4,367 |
|
Interest |
| 137 |
| |
|
| 4,504 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,674 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 111 |
| |
Administration fees |
| 40 |
| |
Legal fees |
| 5 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 8 |
| |
Registration fees |
| 15 |
| |
Other |
| 1 |
| |
|
|
|
| |
Total expenses |
| 1,865 |
| |
Net Investment Income (Loss) |
| 2,639 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 16,752 |
| |
Foreign currency transactions |
| (32 | ) | |
|
| 16,720 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 37,386 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 19 |
| |
|
| 37,405 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 54,125 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 56,764 |
|
The notes to the financial statements are an integral part of this report.
179
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 2,639 |
| $ | 4,120 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| 16,720 |
| 6,391 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation |
| 37,405 |
| 36,087 |
| ||
|
|
|
|
|
| ||
|
| 56,764 |
| 46,598 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (4,552 | ) | (144 | ) | ||
From net realized gain |
| (7,001 | ) | — |
| ||
|
| (11,553 | ) | (144 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 44,667 |
| 330,067 |
| ||
Dividends and distributions reinvested |
| 11,553 |
| 144 |
| ||
Cost of shares redeemed |
| (60,577 | ) | (134 | ) | ||
|
| (4,357 | ) | 330,077 |
| ||
Net increase (decrease) in net assets |
| 40,854 |
| 376,531 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 376,531 |
| — |
| ||
End of period |
| $ | 417,385 |
| $ | 376,531 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,516 |
| $ | 3,429 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 3,407 |
| 30,476 |
| ||
Shares issued-reinvested from distributions |
| 912 |
| 14 |
| ||
Shares redeemed |
| (4,678 | ) | (13 | ) | ||
Net increase (decrease) in shares outstanding: |
| (359 | ) | 30,477 |
|
(a) |
| Commenced operations on December 6, 2005. |
|
The notes to the financial statements are an integral part of this report.
180
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
|
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
|
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
|
| For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value |
| ||||||||
|
| Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
|
| Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
|
| 4/30/2007 |
| $ | 12.35 |
| $ | 0.09 |
| $ | 1.79 |
| $ | 1.88 |
| $ | (0.15 | ) | $ | (0.22 | ) | $ | (0.37 | ) | $ | 13.86 |
|
|
| 10/31/2006 |
| 10.00 |
| 0.20 |
| 2.16 |
| 2.36 |
| (0.01 | ) | — |
| (0.01 | ) | 12.35 |
| ||||||||
|
|
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
|
|
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
|
|
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
|
|
| 15.49 | % | $ | 417,385 |
| 0.94 | % | 1.33 | % | 17 | % |
10/31/2006 |
|
|
| 23.67 |
| 376,531 |
| 0.99 |
| 1.91 |
| 22 |
| |
NOTES TO FINANCIAL HIGHLIGHTS | ||
| ||
(a) |
| Annualized. |
(b) |
| Not annualized. |
(c) |
| Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized. |
(d) |
| Per share information is calculated based on average number of shares outstanding. |
(e) |
| TA IDEX AllianceBernstein International Value (“the Fund”) commenced operations on December 6, 2005. |
The notes to the financial statements are an integral part of this report.
181
TA IDEX Bjurman, Barry Micro Emerging Growth
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
|
|
|
| |
Investment securities, at value (cost: $59,170) |
| $ | 68,524 |
|
Cash |
| 1,852 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 1,021 |
| |
Shares of beneficial interest sold |
| 201 |
| |
Interest |
| 5 |
| |
Dividends |
| 2 |
| |
|
| 71,605 |
| |
|
|
|
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 2,312 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 71 |
| |
Administration fees |
| 1 |
| |
Other |
| 11 |
| |
|
| 2,395 |
| |
Net Assets |
| $ | 69,210 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 62,887 |
|
Undistributed (accumulated) net investment income (loss) |
| (237 | ) | |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities |
| (2,794 | ) | |
Net unrealized appreciation (depreciation) on investment securities |
| 9,354 |
| |
Net Assets |
| $ | 69,210 |
|
|
|
|
| |
Shares Outstanding |
| 6,250 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 11.07 |
|
The notes to the financial statements are an integral part of this report.
182
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $1) |
| $ | 94 |
|
Interest |
| 19 |
| |
|
| 113 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 310 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 8 |
| |
Administration fees |
| 6 |
| |
Legal fees |
| 1 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 1 |
| |
Registration fees |
| 2 |
| |
|
|
|
| |
Total expenses |
| 339 |
| |
Recaptured expenses |
| 11 |
| |
Net expenses |
| 350 |
| |
Net Investment Income (Loss) |
| (237 | ) | |
Net Realized and Unrealized Gain (Loss) |
|
|
| |
Realized gain (loss) from investment securities |
| (1,983 | ) | |
|
|
|
| |
Increase (decrease) in unrealized appreciation (depreciation) on investment securities |
| 5,547 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities |
| 3,564 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 3,327 |
|
The notes to the financial statements are an integral part of this report.
183
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006(a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | (237 | ) | $ | (60 | ) |
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities |
| (1,983 | ) | (815 | ) | ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 5,547 |
| 3,807 |
| ||
|
|
|
|
|
| ||
|
| 3,327 |
| 2,932 |
| ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 10,687 |
| 52,449 |
| ||
Cost of shares redeemed |
| (185 | ) | — |
| ||
|
| 10,502 |
| 52,449 |
| ||
Net increase (decrease) in net assets |
| 13,829 |
| 55,381 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 55,381 |
| — |
| ||
End of period |
| $ | 69,210 |
| $ | 55,381 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | (237 | ) | $ | — |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 977 |
| 5,290 |
| ||
Shares redeemed |
| (17 | ) | — |
| ||
Net increase (decrease) in shares outstanding: |
| 960 |
| 5,290 |
|
(a) Commenced operations on August 1, 2006.
The notes to the financial statements are an integral part of this report.
184
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
|
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(g) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 10.47 |
| $ | (0.04 | ) | $ | 0.64 |
| $ | 0.60 |
| $ | — |
| $ | — |
| $ | — |
| $ | 11.07 |
|
10/31/2006 |
| 10.00 |
| (0.02 | ) | 0.49 |
| 0.47 |
| — |
| — |
| — |
| 10.47 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
| Ratio of Expenses |
| Net Investment |
|
|
| |||
For the |
|
|
| End of |
| to Average |
| Income (Loss) |
| Portfolio |
| |||
Period |
| Total |
| Period |
| Net Assets(a) |
| to Average |
| Turnover |
| |||
Ended(g) |
| Return(c) |
| (000’s) |
| Net(e) |
| Total(f) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 5.83 | % | $ | 69,210 |
| 1.19 | %(h) | 1.19 | %(h) | (0.80 | )% | 55 | % |
10/31/2006 |
| 4.70 |
| 55,381 |
| 1.25 |
| 1.38 |
| (0.69 | ) | 14 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) | Annualized. |
(b) | Not annualized. |
(c) | Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized. |
(d) | Per share information is calculated based on average number of shares outstanding. |
(e) | Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2). |
(f) | Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser. |
(g) | TA IDEX Bjurman, Barry Micro Emerging Growth (“the Fund”) commenced operations on August 1, 2006. |
(h) | Ratios of Total Expenses to Average Net Assets and Net Expenses to Average Net Assets are inclusive of recaptured expenses by the investment advisor, if any. |
| The impact of recaptured expenses was 0.04%. |
The notes to the financial statements are an integral part of this report.
185
TA IDEX BlackRock Global Allocation
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $400,221) |
| $ | 445,449 |
|
Cash |
| 49 |
| |
Foreign currency (cost: $2,801) |
| 3,189 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 1,664 |
| |
Shares of beneficial interest sold |
| 319 |
| |
Interest |
| 1,563 |
| |
Dividends |
| 523 |
| |
Dividend reclaims receivable |
| 45 |
| |
Unrealized appreciation on forward foreign currency contracts |
| 119 |
| |
|
| 452,920 |
| |
|
|
|
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 2,557 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 274 |
| |
Deferred foreign taxes |
| 126 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 7 |
| |
Unrealized depreciation on forward foreign currency contracts |
| 88 |
| |
Variation margin |
| 2,866 |
| |
Written options (premiums $1,882) |
| 2,120 |
| |
Other |
| 45 |
| |
|
| 8,083 |
| |
Net Assets |
| $ | 444,837 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 382,456 |
|
Undistributed (accumulated) net investment income (loss) |
| 2,398 |
| |
Undistributed (accumulated) net realized gain (loss) from investment securities, futures contracts, written options and foreign currency transactions |
| 14,549 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 45,102 |
| |
Futures contracts |
| 111 |
| |
Written option contracts |
| (238 | ) | |
Translation of assets and liabilities denominated in foreign currencies |
| 459 |
| |
Net Assets |
| $ | 444,837 |
|
|
|
|
| |
Shares Outstanding |
| 37,647 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 11.82 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
186
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 3,563 |
|
Dividends (net of withholding taxes on foreign dividends of $145) |
| 2,421 |
| |
|
| 5,984 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,702 |
| |
Transfer agent fees |
| — | (a) | |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 172 |
| |
Administration fees |
| 46 |
| |
Legal fees |
| 6 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 10 |
| |
Registration fees |
| 21 |
| |
Other |
| 3 |
| |
Total expenses |
| 1,971 |
| |
Net Investment Income (Loss) |
| 4,013 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities (net of foreign capital gains tax of $10) |
| 11,722 |
| |
Futures contracts |
| 1,890 |
| |
Written option contracts |
| 264 |
| |
Foreign currency transactions |
| 1,296 |
| |
|
| 15,172 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities (net of foreign capital gains tax accrual of $126) |
| 21,912 |
| |
Futures contracts |
| (974 | ) | |
Written option contracts |
| (137 | ) | |
Translation of assets and liabilities denominated in foreign currencies |
| 182 |
| |
|
| 20,983 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities, Futures Contracts, Written Options and Foreign Currency Transactions |
| 36,155 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 40,168 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
187
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 4,013 |
| $ | 6,063 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities, futures contracts, written options and foreign currency transactions |
| 15,172 |
| 9,269 |
| ||
Change in unrealized appreciation (depreciation) on investment securities, futures contracts, written options and foreign currency translation |
| 20,983 |
| 24,451 |
| ||
|
|
|
|
|
| ||
|
| 40,168 |
| 39,783 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (8,774 | ) | (372 | ) | ||
From net realized gain |
| (8,424 | ) | — |
| ||
|
| (17,198 | ) | (372 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 14,513 |
| 451,161 |
| ||
Dividends and distributions reinvested |
| 17,198 |
| 372 |
| ||
Cost of shares redeemed |
| (100,785 | ) | (3 | ) | ||
|
| (69,074 | ) | 451,530 |
| ||
Net increase (decrease) in net assets |
| (46,104 | ) | 490,941 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 490,941 |
| — |
| ||
End of period |
| $ | 444,837 |
| $ | 490,941 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 2,398 |
| $ | 7,159 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 1,264 |
| 43,698 |
| ||
Shares issued-reinvested from distributions |
| 1,536 |
| 37 |
| ||
Shares redeemed |
| (8,888 | ) | — |
| ||
Net increase (decrease) in shares outstanding: |
| (6,088 | ) | 43,735 |
|
(a) Commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
188
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 11.23 |
| $ | 0.10 |
| $ | 0.88 |
| $ | 0.98 |
| $ | (0.20 | ) | $ | (0.19 | ) | $ | (0.39 | ) | $ | 11.82 |
|
10/31/2006 |
| 10.00 |
| 0.19 |
| 1.06 |
| 1.25 |
| (0.02 | ) | — |
| (0.02 | ) | 11.23 |
| ||||||||
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 9.05 | % | $ | 444,837 |
| 0.85 | % | 1.74 | % | 29 | % |
10/31/2006 |
| 12.45 |
| 490,941 |
| 0.90 |
| 2.02 |
| 31 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX BlackRock Global Allocation (“the Fund”) commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
189
TA IDEX BlackRock Large Cap Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $513,876) (including securities loaned of $37,864) |
| $ | 613,978 |
|
Receivables: |
|
|
| |
Shares of beneficial interest sold |
| 446 |
| |
Interest |
| 16 |
| |
Dividends |
| 467 |
| |
|
| 614,907 |
| |
Liabilities: |
|
|
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 376 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 10 |
| |
Payable for collateral for securities on loan |
| 39,642 |
| |
Other |
| 3 |
| |
|
| 40,031 |
| |
Net Assets |
| $ | 574,876 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 454,966 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,707 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities |
| 18,101 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 100,102 |
| |
Net Assets |
| $ | 574,876 |
|
|
|
|
| |
Shares Outstanding |
|
|
| |
|
| 44,735 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
|
|
| |
|
| $ | 12.85 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
190
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends |
| $ | 5,401 |
|
Interest |
| 73 |
| |
Income from loaned securities-net |
| 17 |
| |
|
| 5,491 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 2,113 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 43 |
| |
Administration fees |
| 54 |
| |
Legal fees |
| 6 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 10 |
| |
Registration fees |
| 4 |
| |
Other |
| 3 |
| |
Total expenses |
| 2,244 |
| |
Net Investment Income (Loss) |
| 3,247 |
| |
Net Realized and Unrealized Gain (Loss) |
|
|
| |
Realized gain (loss) from investment securities |
| 18,183 |
| |
|
|
|
| |
Increase (decrease) in unrealized appreciation (depreciation) on investment securities |
| 29,515 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities |
| 47,698 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 50,945 |
|
The notes to the financial statements are an integral part of this report.
191
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 3,247 |
| $ | 3,254 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities |
| 18,183 |
| 17,655 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 29,515 |
| 50,775 |
| ||
|
|
|
|
|
| ||
|
| 50,945 |
| 71,684 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class I |
| (3,991 | ) | (1,026 | ) | ||
|
| (3,991 | ) | (1,026 | ) | ||
From net realized gains: |
|
|
|
|
| ||
Class I |
| (15,598 | ) | — |
| ||
|
| (15,598 | ) | — |
| ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class A |
| — |
| 2,001 |
| ||
Class I |
| 113,620 |
| 445,738 |
| ||
|
| 113,620 |
| 447,739 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class I |
| 19,589 |
| 1,026 |
| ||
|
| 19,589 |
| 1,026 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (356,774 | ) | ||
Class I |
| (96,218 | ) | (4,702 | ) | ||
|
| (96,218 | ) | (361,476 | ) | ||
|
| 36,991 |
| 87,289 |
| ||
Net increase (decrease) in net assets |
| 68,347 |
| 157,947 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 506,529 |
| 348,582 |
| ||
End of period |
| $ | 574,876 |
| $ | 506,529 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,707 |
| $ | 2,451 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class A |
| — |
| 191 |
| ||
Class I |
| 9,275 |
| 42,006 |
| ||
|
| 9,275 |
| 42,197 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class I |
| 1,619 |
| 94 |
| ||
|
| 1,619 |
| 94 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (34,089 | ) | ||
Class I |
| (7,833 | ) | (426 | ) | ||
|
| (7,833 | ) | (34,515 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (33,898 | ) | ||
Class I |
| 3,061 |
| 41,674 |
| ||
|
| 3,061 |
| 7,776 |
|
(a) Class I was offered for investment on November 15, 2005. Class A shareholders redeemed out of class A and subscribed into Class I on November 15, 2005.
The notes to the financial statements are an integral part of this report.
192
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 12.15 |
| $ | 0.07 |
| $ | 1.10 |
| $ | 1.17 |
| $ | (0.10 | ) | $ | (0.37 | ) | $ | (0.47 | ) | $ | 12.85 |
|
10/31/2006 |
| 10.47 |
| 0.07 |
| 1.64 |
| 1.71 |
| (0.03 | ) | — |
| (0.03 | ) | 12.15 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 9.84 | % | $ | 574,876 |
| 0.84 | % | 1.21 | % | 33 | % |
10/31/2006 |
| 16.36 |
| 506,529 |
| 0.84 |
| 0.62 |
| 56 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is based on average number of shares outstanding.
(e) Class A commenced operations on March 1, 2005. Class I commenced operations on November 15, 2005. Class A shareholders redeemed out of Class A and subscribed into Class I on November 15, 2005.
The notes to the financial statements are an integral part of this report.
193
TA IDEX BlackRock Natural Resources
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $95,613) |
| $ | 107,134 |
|
Cash |
| 10,289 |
| |
Receivables: |
|
|
| |
Shares of beneficial interest sold |
| 122 |
| |
Interest |
| 26 |
| |
Dividends |
| 65 |
| |
Dividend reclaims receivable |
| 6 |
| |
|
| 117,642 |
| |
Liabilities: |
|
|
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 81 |
| |
Administration fees |
| 2 |
| |
Other |
| 8 |
| |
|
| 91 |
| |
Net Assets |
| $ | 117,551 |
|
Net Assets Consist of: |
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 105,826 |
|
Undistributed (accumulated) net investment income (loss) |
| 140 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 64 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 11,521 |
| |
Net Assets |
| $ | 117,551 |
|
|
|
|
| |
Shares Outstanding |
| 10,540 |
| |
|
|
|
| |
Net Asset Value and Offering Per Share |
| $ | 11.15 |
|
The notes to the financial statements are an integral part of this report.
194
STATEMENT OF OPERATIONS
For the period ended April 30, 2007 (a)
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $14) |
| $ | 272 |
|
Interest |
| 104 |
| |
|
| 376 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 203 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 5 |
| |
Administration fees |
| 5 |
| |
Legal fees |
| 13 |
| |
Audit fees |
| 8 |
| |
Trustees fees |
| 1 |
| |
|
|
|
| |
Total expenses |
| 236 |
| |
Net Investment Income (Loss) |
| 140 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 103 |
| |
Foreign currency transactions |
| (39 | ) | |
|
| 64 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 11,521 |
| |
|
| 11,521 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 11,585 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 11,725 |
|
(a) Commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
195
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
|
| April 30, |
| |
|
| 2007 |
| |
|
| (unaudited) (a) |
| |
Increase (Decrease) in Net Assets From: |
|
|
| |
Operations: |
|
|
| |
Net investment income (loss) |
| $ | 140 |
|
|
|
|
| |
Net realized gain (loss) from investment securities and foreign currency transactions |
| 64 |
| |
|
|
|
| |
Change in unrealized appreciation (depreciation) on investment securities |
| 11,521 |
| |
|
|
|
| |
|
| 11,725 |
| |
Capital Share Transactions: |
|
|
| |
Proceeds from shares sold |
| 105,826 |
| |
|
| 105,826 |
| |
Net increase (decrease) in net assets |
| 117,551 |
| |
Net Assets: |
|
|
| |
Beginning of period |
| — |
| |
End of period |
| $ | 117,551 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 140 |
|
|
|
|
| |
Share Activity: |
|
|
| |
Shares issued |
| 10,540 |
| |
Net increase (decrease) in shares outstanding: |
| 10,540 |
|
(a) Commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
196
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 10.00 |
| $ | 0.02 |
| $ | 1.13 |
| $ | 1.15 |
| $ | — |
| $ | — |
| $ | — |
| $ | 11.15 |
|
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 11.50 | % | $ | 117,551 |
| 0.93 | % | 0.55 | % | 2 | % |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX BlackRock Natural Resources (“the Fund”) commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
197
TA IDEX Evergreen International Small Cap
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $423,305) (including securities loaned of $29,095) |
| $ | 548,408 |
|
Cash |
| 17,812 |
| |
Foreign currency (cost: $4,692) |
| 4,708 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 1,372 |
| |
Shares of beneficial interest sold |
| 712 |
| |
Interest |
| 39 |
| |
Dividends |
| 1,054 |
| |
Dividend reclaims receivable |
| 102 |
| |
|
| 574,207 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 1,904 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 23 |
| |
Management and advisory fees |
| 463 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 9 |
| |
Payable for collateral for securities on loan |
| 30,837 |
| |
Other |
| 52 |
| |
|
| 33,288 |
| |
Net Assets |
| $ | 540,919 |
|
Net Assets Consist of: |
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 374,041 |
|
Undistributed (accumulated) net investment income (loss) |
| 230 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 41,527 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 125,103 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 18 |
| |
Net Assets |
| $ | 540,919 |
|
|
|
|
| |
Shares Outstanding: |
| 31,745 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 17.04 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
198
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $179) |
| $ | 2,713 |
|
Interest |
| 276 |
| |
Income from loaned securities-net |
| 51 |
| |
|
| 3,040 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 2,544 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 182 |
| |
Administration fees |
| 49 |
| |
Legal fees |
| 6 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 10 |
| |
Registration fees |
| 2 |
| |
Transfer agent fees |
| — | (b) | |
Other |
| 2 |
| |
Total expenses |
| 2,806 |
| |
Net Investment Income (Loss) |
| 234 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 41,592 |
| |
Foreign currency transactions |
| 264 |
| |
|
| 41,856 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 56,554 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| (5 | ) | |
|
| 56,549 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 98,405 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 98,639 |
|
(b) Rounds to less $1.
The notes to the financial statements are an integral part of this report.
199
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 234 |
| $ | 3,809 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| 41,856 |
| 65,140 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation |
| 56,549 |
| 34,645 |
| ||
|
|
|
|
|
| ||
|
| 98,639 |
| 103,594 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class I |
| (3,583 | ) | (823 | ) | ||
|
| (3,583 | ) | (823 | ) | ||
From net realized gains: |
|
|
|
|
| ||
Class I |
| (65,360 | ) | (10,837 | ) | ||
|
| (65,360 | ) | (10,837 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class I |
| 39,341 |
| 186,053 |
| ||
|
| 39,341 |
| 186,053 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class I |
| 68,943 |
| 11,660 |
| ||
|
| 68,943 |
| 11,660 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (127,067 | ) | ||
Class I |
| (68,696 | ) | (21,500 | ) | ||
|
| (68,696 | ) | (148,567 | ) | ||
|
| 39,588 |
| 49,146 |
| ||
Net increase (decrease) in net assets |
| 69,284 |
| 141,080 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 471,635 |
| 330,555 |
| ||
End of period |
| $ | 540,919 |
| $ | 471,635 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 230 |
| $ | 3,579 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class I |
| 2,437 |
| 13,754 |
| ||
|
| 2,437 |
| 13,754 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class I |
| 4,640 |
| 864 |
| ||
|
| 4,640 |
| 864 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (9,945 | ) | ||
Class I |
| (4,474 | ) | (1,556 | ) | ||
|
| (4,474 | ) | (11,501 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (9,945 | ) | ||
Class I |
| 2,603 |
| 13,062 |
| ||
|
| 2,603 |
| 3,117 |
|
The notes to the financial statements are an integral part of this report.
200
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 16.18 |
| $ | 0.01 |
| $ | 3.20 |
| $ | 3.21 |
| $ | (0.12 | ) | $ | (2.23 | ) | $ | (2.35 | ) | $ | 17.04 |
|
10/31/2006 |
| 12.71 |
| 0.14 |
| 3.79 |
| 3.93 |
| (0.03 | ) | (0.43 | ) | (0.46 | ) | 16.18 |
| ||||||||
10/31/2005 |
| 10.00 |
| 0.06 |
| 2.65 |
| 2.71 |
| — |
| — |
| — |
| 12.71 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(b)(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 21.98 | % | $ | 540,919 |
| 1.14 | % | 0.10 | % | 48 | % |
10/31/2006 |
| 31.68 |
| 471,635 |
| 1.15 |
| 0.94 |
| 89 |
| |
10/31/2005 |
| 27.10 |
| 204,413 |
| 1.22 |
| 0.56 |
| 65 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Evergreen International Small Cap (“the Fund”) commenced operations on November 8, 2004. Class A closed on November 15, 2005.
The notes to the financial statements are an integral part of this report.
201
TA IDEX Federated Market Opportunity
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $29,997) (including securities loaned of $3,329) |
| $ | 30,541 |
|
Cash |
| 16,534 |
| |
Foreign currency (cost: $9) |
| 9 |
| |
Receivables: |
|
|
| |
Shares of beneficial interest sold |
| 132 |
| |
Interest |
| 135 |
| |
Dividends |
| 21 |
| |
Dividend reclaims receivable |
| 19 |
| |
|
| 47,391 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 115 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 30 |
| |
Administration fees |
| 1 |
| |
Payable for collateral for securities on loan |
| 3,464 |
| |
Other |
| 18 |
| |
|
| 3,628 |
| |
Net Assets |
| $ | 43,763 |
|
Net Assets Consist of: |
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 48,245 |
|
Undistributed (accumulated) net investment income (loss) |
| 92 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| (5,119 | ) | |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 544 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 1 |
| |
Net Assets |
| $ | 43,763 |
|
|
|
|
| |
Shares Outstanding |
| 4,628 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 9.46 |
|
The notes to the financial statements are an integral part of this report.
202
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 771 |
|
Dividends (net of withholding taxes on foreign dividends of $26) |
| 176 |
| |
Income from loaned securities-net |
| 4 |
| |
|
| 951 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 231 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 11 |
| |
Administration fees |
| 6 |
| |
Legal fees |
| 1 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 1 |
| |
Registration fees |
| 4 |
| |
|
|
|
| |
Total expenses |
| 265 |
| |
Net Investment Income (Loss) |
| 686 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| (1,538 | ) | |
Foreign currency transactions |
| (21 | ) | |
|
| (1,559 | ) | |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 12 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 1 |
| |
|
| 13 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| (1,546 | ) | |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | (860 | ) |
The notes to the financial statements are an integral part of this report.
203
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 686 |
| $ | 2,077 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| (1,559 | ) | (3,105 | ) | ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 13 |
| 532 |
| ||
|
|
|
|
|
| ||
|
| (860 | ) | (496 | ) | ||
|
|
|
|
|
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (1,149 | ) | (1,977 | ) | ||
|
|
|
|
|
| ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 6,486 |
| 89,534 |
| ||
Dividends and distributions reinvested |
| 1,149 |
| 1,977 |
| ||
Cost of shares redeemed |
| (45,051 | ) | (5,850 | ) | ||
|
| (37,416 | ) | 85,661 |
| ||
Net increase (decrease) in net assets |
| (39,425 | ) | 83,188 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 83,188 |
| — |
| ||
End of period |
| $ | 43,763 |
| $ | 83,188 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 92 |
| $ | 555 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 674 |
| 8,953 |
| ||
Shares issued-reinvested from distributions |
| 118 |
| 198 |
| ||
Shares redeemed |
| (4,732 | ) | (583 | ) | ||
Net increase (decrease) in shares outstanding: |
| (3,940 | ) | 8,568 |
|
(a) Commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
204
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
|
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 9.71 |
| $ | 0.11 |
| $ | (0.20 | ) | $ | (0.09 | ) | $ | (0.16 | ) | $ | — |
| $ | (0.16 | ) | $ | 9.46 |
|
10/31/2006 |
| 10.00 |
| 0.27 |
| (0.30 | ) | (0.03 | ) | (0.26 | ) | — |
| (0.26 | ) | 9.71 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| (0.91 | )% | $ | 43,763 |
| 0.92 | % | 2.38 | % | 32 | % |
10/31/2006 |
| (0.35 | ) | 83,188 |
| 0.88 |
| 2.97 |
| 72 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Federated Market Opportunity (“the Fund”) commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
205
TA IDEX JPMorgan International Bond
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $688,466) |
| $ | 708,453 |
|
Cash |
| 4,739 |
| |
Foreign currency (cost: $2,674) |
| 2,688 |
| |
Receivables: |
|
|
| |
Shares of beneficial interest sold |
| 456 |
| |
Interest |
| 8,359 |
| |
Unrealized appreciation on forward foreign currency contracts |
| 3,432 |
| |
|
| 728,127 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 4,049 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 159 |
| |
Management and advisory fees |
| 310 |
| |
Administration fees |
| 12 |
| |
Unrealized depreciation on forward foreign currency contracts |
| 5,061 |
| |
Variation margin |
| 36 |
| |
Other |
| 71 |
| |
|
| 9,698 |
| |
Net Assets |
| $ | 718,429 |
|
Net Assets Consist of: |
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 700,137 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,005 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities, futures contracts and foreign currency transactions |
| (1,137 | ) | |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 19,987 |
| |
Futures contracts |
| (439 | ) | |
Translation of assets and liabilities denominated in foreign currencies |
| (1,124 | ) | |
Net Assets |
| $ | 718,429 |
|
|
|
|
| |
Shares Outstanding |
| 68,037 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 10.56 |
|
The notes to the financial statements are an integral part of this report.
206
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 11,137 |
|
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,773 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 205 |
| |
Administration fees |
| 69 |
| |
Legal fees |
| 8 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 13 |
| |
Registration fees |
| 31 |
| |
Other |
| 4 |
| |
|
|
|
| |
Total expenses |
| 2,114 |
| |
Net Investment Income (Loss) |
| 9,023 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 2,823 |
| |
Futures contracts |
| 1,081 |
| |
Foreign currency transactions |
| (2,558 | ) | |
|
| 1,346 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 10,089 |
| |
Futures contracts |
| (503 | ) | |
Translation of assets and liabilities denominated in foreign currencies |
| (964 | ) | |
|
| 8,622 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities, Futures Contracts and Foreign Currency Transactions |
| 9,968 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 18,991 |
|
The notes to the financial statements are an integral part of this report.
207
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 9,023 |
| $ | 8,866 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities, futures contracts and foreign currency transactions |
| 1,346 |
| 4,491 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities, futures contracts and foreign currency translation |
| 8,622 |
| 9,802 |
| ||
|
|
|
|
|
| ||
|
| 18,991 |
| 23,159 |
| ||
|
|
|
|
|
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (15,867 | ) | (7,991 | ) | ||
|
|
|
|
|
| ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 36,210 |
| 659,095 |
| ||
Dividends and distributions reinvested |
| 15,867 |
| 7,991 |
| ||
Cost of shares redeemed |
| (19,026 | ) | — |
| ||
|
| 33,051 |
| 667,086 |
| ||
Net increase (decrease) in net assets |
| 36,175 |
| 682,254 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 682,254 |
| — |
| ||
End of period |
| $ | 718,429 |
| $ | 682,254 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,005 |
| $ | 7,849 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 3,456 |
| 64,116 |
| ||
Shares issued-reinvested from distributions |
| 1,506 |
| 774 |
| ||
Shares redeemed |
| (1,815 | ) | — |
| ||
Net increase (decrease) in shares outstanding: |
| 3,147 |
| 64,890 |
|
(a) Commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
208
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
| Total |
| From Net |
| From Net |
| Total |
| Value, |
| ||||||||
4/30/2007 |
| $ | 10.51 |
| $ | 0.14 |
| $ | 0.15 |
| $ | 0.29 |
| $ | (0.24 | ) | $ | — |
| $ | (0.24 | ) | $ | 10.56 |
|
10/31/2006 |
| 10.00 |
| 0.22 |
| 0.49 |
| 0.71 |
| (0.20 | ) | — |
| (0.20 | ) | 10.51 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 2.79 | % | $ | 718,429 |
| 0.61 | % | 2.62 | % | 48 | % |
10/31/2006 |
| 7.12 |
| 682,254 |
| 0.64 |
| 2.34 |
| 145 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX JPMorgan International Bond (“the Fund”) commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
209
TA IDEX JPMorgan Mid Cap Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $236,141) (including securities loaned of $22,445) |
| $ | 280,892 |
|
Cash |
| 11,825 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 1,304 |
| |
Interest |
| 33 |
| |
Dividends |
| 283 |
| |
|
| 294,337 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 735 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 187 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 5 |
| |
Payable for collateral for securities on loan |
| 23,189 |
| |
Other |
| 28 |
| |
|
| 24,144 |
| |
Net Assets |
| $ | 270,193 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 220,524 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,337 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities |
| 3,581 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 44,751 |
| |
Net Assets |
| $ | 270,193 |
|
|
|
|
| |
Shares Outstanding |
| 22,106 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 12.22 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
210
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $5) |
| $ | 2,626 |
|
Interest |
| 184 |
| |
Income from loaned securities-net |
| 15 |
| |
|
| 2,825 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,048 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 19 |
| |
Administration fees |
| 26 |
| |
Legal fees |
| 3 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 5 |
| |
Transfer agent fees |
| — | (a) | |
Other |
| 2 |
| |
|
|
|
| |
Total expenses |
| 1,114 |
| |
Net Investment Income (Loss) |
| 1,711 |
| |
Net Realized and Unrealized Gain (Loss) |
|
|
| |
Realized gain (loss) from investment securities |
| 4,253 |
| |
|
|
|
| |
Increase (decrease) in unrealized appreciation (depreciation) on investment securities |
| 19,041 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities |
| 23,294 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 25,005 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
211
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 1,711 |
| $ | 2,471 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities |
| 4,253 |
| 10,521 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 19,041 |
| 25,135 |
| ||
|
|
|
|
|
| ||
|
| 25,005 |
| 38,127 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class I |
| (2,282 | ) | (961 | ) | ||
|
| (2,282 | ) | (961 | ) | ||
From net realized gains: |
|
|
|
|
| ||
Class I |
| (10,392 | ) | (1,029 | ) | ||
|
| (10,392 | ) | (1,029 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class A |
| — |
| 4,598 |
| ||
Class I |
| — |
| 215,612 |
| ||
|
| — |
| 220,210 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class I |
| 12,674 |
| 1,990 |
| ||
|
| 12,674 |
| 1,990 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (205,876 | ) | ||
Class I |
| — |
| (5,529 | ) | ||
|
| — |
| (211,405 | ) | ||
|
| 12,674 |
| 10,795 |
| ||
Net increase (decrease) in net assets |
| 25,005 |
| 46,932 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 245,188 |
| 198,256 |
| ||
End of period |
| $ | 270,193 |
| $ | 245,188 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,337 |
| $ | 1,908 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class A |
| — |
| 456 |
| ||
Class I |
| — |
| 21,339 |
| ||
|
| — |
| 21,795 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class I |
| 1,104 |
| 191 |
| ||
|
| 1,104 |
| 191 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (20,396 | ) | ||
Class I |
| — |
| (528 | ) | ||
|
| — |
| (20,924 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (19,940 | ) | ||
Class I |
| 1,104 |
| 21,002 |
| ||
|
| 1,104 |
| 1,062 |
|
(a) Class I was offered for investment on November 15, 2005. Class A shareholders redeemed out of Class A and subscribed into Class I on November 15, 2005.
The notes to the financial statements are an integral part of this report.
212
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
4/30/2007 |
| $ | 11.67 |
| $ | 0.08 |
| $ | 1.07 |
| $ | 1.15 |
| $ | (0.11 | ) | $ | (0.49 | ) | $ | (0.60 | ) | $ | 12.22 |
|
10/31/2006 |
| 10.09 |
| 0.11 |
| 1.57 |
| 1.68 |
| (0.05 | ) | (0.05 | ) | (0.10 | ) | 11.67 |
| ||||||||
|
|
| Ratios/Supplemental Data |
| ||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 10.22 | % | $ | 270,193 |
| 0.87 | % | 1.34 | % | 22 | % |
10/31/2006 |
| 16.71 |
| 245,188 |
| 0.88 |
| 1.10 |
| 46 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Class A commenced operations on March 1, 2005. Class I commenced operations on November 15, 2005. Class A shareholders redeemed out of Class A and subscribed into Class I on November 15, 2005.
The notes to the financial statements are an integral part of this report.
213
TA IDEX Loomis Sayles Bond
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $164,835) |
| $ | 165,700 |
|
Cash |
| 5,384 |
| |
Receivables: |
|
|
| |
Shares of beneficial interest sold |
| 676 |
| |
Interest |
| 2,753 |
| |
Dividends |
| 6 |
| |
|
| 174,519 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 400 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 23 |
| |
Management and advisory fees |
| 95 |
| |
Administration fees |
| 3 |
| |
Other |
| 5 |
| |
|
| 526 |
| |
Net Assets |
| $ | 173,993 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 171,926 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,107 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities |
| 83 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 865 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 12 |
| |
Net Assets |
| $ | 173,993 |
|
|
|
|
| |
Shares Outstanding |
| 17,077 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 10.19 |
|
The notes to the financial statements are an integral part of this report.
214
STATEMENT OF OPERATIONS
For the period ended April 30, 2007 (a)
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 2,115 |
|
Dividends |
| 15 |
| |
|
| 2,130 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 254 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 5 |
| |
Administration fees |
| 8 |
| |
Legal fees |
| 12 |
| |
Audit fees |
| 8 |
| |
Trustees fees |
| 1 |
| |
|
|
|
| |
Total expenses |
| 289 |
| |
Net Investment Income (Loss) |
| 1,841 |
| |
Net Realized and Unrealized Gain (Loss) |
|
|
| |
Realized gain (loss) from investment securities |
| 83 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 865 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 12 |
| |
|
| 877 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 960 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 2,801 |
|
(a) Commenced operations on January 3, 2007
The notes to the financial statements are an integral part of this report.
215
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
|
| April 30, |
| |
|
| 2007 |
| |
|
| (unaudited) (a) |
| |
Increase (Decrease) in Net Assets From: |
|
|
| |
Operations: |
|
|
| |
Net investment income (loss) |
| $ | 1,841 |
|
|
|
|
| |
Net realized gain (loss) from investment securities |
| 83 |
| |
|
|
|
| |
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation |
| 877 |
| |
|
|
|
| |
|
| 2,801 |
| |
Distributions to Shareholders: |
|
|
| |
From net investment income |
| (734 | ) | |
|
|
|
| |
Capital Share Transactions: |
|
|
| |
Proceeds from shares sold |
| 172,263 |
| |
Dividends and distributions reinvested |
| 734 |
| |
Cost of shares redeemed |
| (1,071 | ) | |
|
| 171,926 |
| |
Net increase (decrease) in net assets |
| 173,993 |
| |
Net Assets: |
|
|
| |
Beginning of period |
| — |
| |
End of period |
| $ | 173,993 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,107 |
|
|
|
|
| |
Share Activity: |
|
|
| |
Shares issued |
| 17,110 |
| |
Shares issued-reinvested from distributions |
| 73 |
| |
Shares redeemed |
| (106 | ) | |
Net increase (decrease) in shares outstanding: |
| 17,077 |
|
(a) Commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
216
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout the period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized Gain (Loss) |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
4/30/2007 |
| $ | 10.00 |
| $ | 0.16 |
| $ | 0.08 |
| $ | 0.24 |
| $ | (0.05 | ) | $ | — |
| $ | (0.05 | ) | $ | 10.19 |
|
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 2.39 | % | $ | 173,993 |
| 0.77 | % | 4.88 | % | 9 | % |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Loomis Sayles Bond (“the Fund”) commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
217
TA IDEX Marsico International Growth
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $369,711) (including securities loaned of $17,522) |
| $ | 437,781 |
|
Cash |
| 32,133 |
| |
Foreign currency (cost: $133) |
| 133 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 1,942 |
| |
Shares of beneficial interest sold |
| 854 |
| |
Interest |
| 71 |
| |
Dividends |
| 1,216 |
| |
Dividend reclaims receivable |
| 486 |
| |
|
| 474,616 |
| |
|
|
|
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 2,906 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 382 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 7 |
| |
Payable for collateral for securities on loan |
| 18,303 |
| |
Other |
| 53 |
| |
|
| 21,651 |
| |
Net Assets |
| $ | 452,965 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 350,176 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,260 |
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 33,441 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 68,070 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 18 |
| |
Net Assets |
| $ | 452,965 |
|
|
|
|
| |
Shares Outstanding |
| 33,934 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 13.35 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
218
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $286) |
| $ | 3,455 |
|
Interest |
| 254 |
| |
Income from loaned securities-net |
| 7 |
| |
|
| 3,716 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 2,190 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 147 |
| |
Administration fees |
| 42 |
| |
Legal fees |
| 5 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 8 |
| |
Other |
| 3 |
| |
|
|
|
| |
Total expenses |
| 2,406 |
| |
Net Investment Income (Loss) |
| 1,310 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 35,245 |
| |
Foreign currency transactions |
| (80 | ) | |
|
| 35,165 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 17,385 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 12 |
| |
|
| 17,397 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 52,562 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 53,872 |
|
The notes to the financial statements are an integral part of this report.
219
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 1,310 |
| $ | 1,407 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| 35,165 |
| 74,903 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation |
| 17,397 |
| 23,418 |
| ||
|
|
|
|
|
| ||
|
| 53,872 |
| 99,728 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class I |
| (1,069 | ) | (3,283 | ) | ||
|
| (1,069 | ) | (3,283 | ) | ||
From net realized gains: |
|
|
|
|
| ||
Class I |
| (75,189 | ) | (2,500 | ) | ||
|
| (75,189 | ) | (2,500 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class I |
| 71,999 |
| 184,042 |
| ||
|
| 71,999 |
| 184,042 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class I |
| 76,258 |
| 5,783 |
| ||
|
| 76,258 |
| 5,783 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (115,115 | ) | ||
Class I |
| (101,532 | ) | (134,523 | ) | ||
|
| (101,532 | ) | (249,638 | ) | ||
|
| 46,725 |
| (59,813 | ) | ||
Net increase (decrease) in net assets |
| 24,339 |
| 34,132 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 428,626 |
| 394,494 |
| ||
End of period |
| $ | 452,965 |
| $ | 428,626 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,260 |
| $ | 1,019 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class I |
| 5,517 |
| 15,462 |
| ||
|
| 5,517 |
| 15,462 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class I |
| 6,190 |
| 479 |
| ||
|
| 6,190 |
| 479 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (10,171 | ) | ||
Class I |
| (8,120 | ) | (10,955 | ) | ||
|
| (8,120 | ) | (21,126 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (10,171 | ) | ||
Class I |
| 3,587 |
| 4,986 |
| ||
|
| 3,587 |
| (5,185 | ) |
The notes to the financial statements are an integral part of this report.
220
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
| For a share of beneficial interest outstanding throughout each period |
| |||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
4/30/2007 |
| $ | 14.12 |
| $ | 0.04 |
| $ | 1.66 |
| $ | 1.70 |
| $ | (0.03 | ) | $ | (2.44 | ) | $ | (2.47 | ) | $ | 13.35 |
|
10/31/2006 |
| 11.11 |
| 0.05 |
| 3.17 |
| 3.22 |
| (0.12 | ) | (0.09 | ) | (0.21 | ) | 14.12 |
| ||||||||
10/31/2005 |
| 10.00 |
| 0.16 |
| 0.99 |
| 1.15 |
| (0.04 | ) | — |
| (0.04 | ) | 11.11 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 13.53 | % | $ | 452,965 |
| 1.14 | % | 0.62 | % | 65 | % |
10/31/2006 |
| 29.35 |
| 428,626 |
| 1.16 |
| 0.38 |
| 129 |
| |
10/31/2005 |
| 11.49 |
| 281,692 |
| 1.18 |
| 1.52 |
| 145 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Marsico International Growth (“the Fund”) commenced operations on November 8, 2004. Class A closed on November 15, 2005.
The notes to the financial statements are an integral part of this report.
221
TA IDEX Mellon Market Neutral Strategy
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $100,065) |
| $ | 104,409 |
|
Cash |
| 8,203 |
| |
Receivable from brokers for proceeds on securities sold short |
| 98,467 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 308 |
| |
Shares of beneficial interest sold |
| 132 |
| |
Interest |
| 18 |
| |
Dividends |
| 28 |
| |
Variation margin |
| 423 |
| |
|
| 211,988 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 263 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 125 |
| |
Administration fees |
| 2 |
| |
Securities sold short, at value (proceeds $99,566) |
| 104,374 |
| |
Other |
| 82 |
| |
|
| 104,846 |
| |
Net Assets |
| $ | 107,142 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 106,208 |
|
Undistributed (accumulated) net investment income (loss) |
| 697 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and securities sold short |
| 701 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 4,344 |
| |
Securities sold short |
| (4,808 | ) | |
Net Assets |
| $ | 107,142 |
|
|
|
|
| |
Shares Outstanding |
| 10,618 |
| |
|
|
|
| |
Net Asset Value Per Share |
| $ | 10.09 |
|
The notes to the financial statements are an integral part of this report.
222
STATEMENT OF OPERATIONS
For the period ended April 30, 2007 (a)
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 1,485 |
|
Dividends |
| 309 |
| |
|
| 1,794 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 426 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 29 |
| |
Administration fees |
| 6 |
| |
Legal fees |
| 13 |
| |
Audit fees |
| 8 |
| |
Trustees fees |
| 1 |
| |
Dividend expense on securities sold short |
| 613 |
| |
|
|
|
| |
Total expenses |
| 1,097 |
| |
Net Investment Income (Loss) |
| 697 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 2,231 |
| |
Securites sold short |
| (1,530 | ) | |
|
| 701 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 4,344 |
| |
Securities sold short |
| (4,808 | ) | |
|
| (464 | ) | |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Securities Sold Short |
| 237 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 934 |
|
(a) Commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
223
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
|
| April 30, |
| |
|
| 2007 |
| |
|
| (unaudited) (a) |
| |
Increase (Decrease) in Net Assets From: |
|
|
| |
Operations: |
|
|
| |
Net investment income (loss) |
| $ | 697 |
|
|
|
|
| |
Net realized gain (loss) from investment securities and securities sold short |
| 701 |
| |
|
|
|
| |
Change in unrealized appreciation (depreciation) on investment securities and securities sold short |
| (464 | ) | |
|
|
|
| |
|
| 934 |
| |
Capital Share Transactions: |
|
|
| |
Proceeds from shares sold |
| 106,458 |
| |
Cost of shares redeemed |
| (250 | ) | |
|
| 106,208 |
| |
Net increase (decrease) in net assets |
| 107,142 |
| |
Net Assets: |
|
|
| |
Beginning of period |
| — |
| |
End of period |
| $ | 107,142 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 697 |
|
|
|
|
| |
Share Activity: |
|
|
| |
Shares issued |
| 10,643 |
| |
Shares redeemed |
| (25 | ) | |
Net increase (decrease) in shares outstanding: |
| 10,618 |
|
(a) Commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
224
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout the period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
4/30/2007 |
| $ | 10.00 |
| $ | 0.07 |
| $ | 0.02 |
| $ | 0.09 |
| $ | — |
| $ | — |
| $ | — |
| $ | 10.09 |
|
|
|
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
| Ratio of Expenses |
| Net Investment |
|
|
| |||
For the |
|
|
| End of |
| to Average |
| Income (Loss) |
| Portfolio |
| |||
Period |
| Total |
| Period |
| Net Assets(a) |
| to Average |
| Turnover |
| |||
Ended(g) |
| Return(c) |
| (000’s) |
| Net(e) |
| Total(f) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 0.90 | % | $ | 107,142 |
| 1.59 | % | 3.61 | % | 2.29 | % | 193 | % |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is exclusive of dividends on securities sold short (see note 1).
(f) Ratio of Total Expenses to Average Net Assets is inclusive of dividends on securities sold short.
(g) TA IDEX Mellon Market Neutral Strategy commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
225
TA IDEX Neuberger Berman International
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $409,743) (including securities loaned of $18,003) |
| $ | 488,486 |
|
Cash |
| 28,640 |
| |
Foreign currency (cost: $511) |
| 507 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 2,757 |
| |
Shares of beneficial interest sold |
| 731 |
| |
Interest |
| 69 |
| |
Income from loaned securities |
| 1 |
| |
Dividends |
| 2,075 |
| |
Dividend reclaims receivable |
| 258 |
| |
|
| 523,524 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 3,105 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 46 |
| |
Management and advisory fees |
| 397 |
| |
Administration fees |
| 8 |
| |
Payable for collateral for securities on loan |
| 18,735 |
| |
Other |
| 52 |
| |
|
| 22,343 |
| |
Net Assets |
| $ | 501,181 |
|
Net Assets Consist of: |
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 396,681 |
|
Undistributed (accumulated) net investment income (loss) |
| 2,623 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 23,115 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 78,743 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 19 |
| |
Net Assets |
| $ | 501,181 |
|
|
|
|
| |
Shares Outstanding |
| 39,140 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 12.80 |
|
The notes to the financial statements are an integral part of this report.
226
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $412) |
| $ | 5,393 |
|
Interest |
| 483 |
| |
Income from loaned securities-net |
| 15 |
| |
|
| 5,891 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 2,251 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 143 |
| |
Administration fees |
| 47 |
| |
Legal fees |
| 6 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 9 |
| |
Registration fees |
| 18 |
| |
Other |
| 3 |
| |
|
|
|
| |
Total expenses |
| 2,488 |
| |
Net Investment Income (Loss) |
| 3,403 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 23,809 |
| |
Foreign currency transactions |
| (661 | ) | |
|
| 23,148 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 41,693 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 22 |
| |
|
| 41,715 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 64,863 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 68,266 |
|
The notes to the financial statements are an integral part of this report.
227
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 3,403 |
| $ | 4,587 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| 23,148 |
| 23,519 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation |
| 41,715 |
| 37,047 |
| ||
|
| 68,266 |
| 65,153 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (5,043 | ) | (515 | ) | ||
From net realized gain |
| (23,361 | ) | — |
| ||
|
| (28,404 | ) | (515 | ) | ||
|
|
|
|
|
| ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 67,392 |
| 406,908 |
| ||
Dividends and distributions reinvested |
| 28,404 |
| 515 |
| ||
Cost of shares redeemed |
| (94,473 | ) | (12,065 | ) | ||
|
| 1,323 |
| 395,358 |
| ||
Net increase (decrease) in net assets |
| 41,185 |
| 459,996 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 459,996 |
| — |
| ||
End of period |
| $ | 501,181 |
| $ | 459,996 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 2,623 |
| $ | 4,263 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 5,575 |
| 40,191 |
| ||
Shares issued-reinvested from distributions |
| 2,409 |
| 51 |
| ||
Shares redeemed |
| (8,023 | ) | (1,063 | ) | ||
Net increase (decrease) in shares outstanding: |
| (39 | ) | 39,179 |
|
(a) Commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
228
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 11.74 |
| $ | 0.09 |
| $ | 1.68 |
| $ | 1.77 |
| $ | (0.13 | ) | $ | (0.58 | ) | $ | (0.71 | ) | $ | 12.80 |
|
10/31/2006 |
| 10.00 |
| 0.12 |
| 1.64 |
| 1.76 |
| (0.02 | ) | — |
| (0.02 | ) | 11.74 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |||
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |||
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |||
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |||
4/30/2007 |
| 15.69 | % | $ | 501,181 |
| 1.06 | % |
|
| 1.45 | % | 27 | % |
10/31/2006 |
| 17.61 |
| 459,996 |
| 1.07 |
|
|
| 1.21 |
| 52 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Neuberger Berman International (“the Fund”) commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
229
TA IDEX Oppenheimer Developing Markets
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $385,708) (including securities loaned of $23,918) |
| $ | 474,041 |
|
Cash |
| 25,455 |
| |
Foreign currency (cost: $1,533) |
| 1,531 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 2,368 |
| |
Shares of beneficial interest sold |
| 602 |
| |
Interest |
| 70 |
| |
Dividends |
| 796 |
| |
Dividend reclaims receivable |
| 5 |
| |
Other |
| 18 |
| |
|
| 504,886 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 2,980 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 46 |
| |
Management and advisory fees |
| 445 |
| |
Deferred foreign taxes |
| 448 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 8 |
| |
Payable for collateral for securities on loan |
| 25,052 |
| |
Other |
| 17 |
| |
|
| 28,996 |
| |
Net Assets |
| $ | 475,890 |
|
Net Assets Consist of: |
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 378,543 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,318 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 8,140 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 87,889 |
| |
Net Assets |
| $ | 475,890 |
|
|
|
|
| |
Shares Outstanding |
| 36,399 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 13.07 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
230
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $419) |
| $ | 4,077 |
|
Interest |
| 259 |
| |
Income from loaned securities-net |
| 17 |
| |
|
| 4,353 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 2,333 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 309 |
| |
Administration fees |
| 41 |
| |
Legal fees |
| 5 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 8 |
| |
Registration fees |
| 15 |
| |
Transfer agent fees |
| — | (a) | |
Other |
| 2 |
| |
|
|
|
| |
Total expenses |
| 2,724 |
| |
Net Investment Income (Loss) |
| 1,629 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities (net of foreign capital gains tax of $84) |
| 9,164 |
| |
Foreign currency transactions |
| 87 |
| |
|
| 9,251 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities (net of foreign capital gains tax accrual of $444) |
| 60,914 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| (398 | ) | |
|
| 60,516 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 69,767 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 71,396 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
231
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 1,629 |
| $ | 2,472 |
|
Net realized gain (loss) from investment securities and foreign currency transactions |
| 9,251 |
| 11,305 |
| ||
Change in unrealized appreciation (depreciation) on investment securities and foreign currency translation |
| 60,516 |
| 27,373 |
| ||
|
| 71,396 |
| 41,150 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (1,859 | ) | (896 | ) | ||
From net realized gain |
| (12,444 | ) | — |
| ||
|
| (14,303 | ) | (896 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 44,481 |
| 332,453 |
| ||
Dividends and distributions reinvested |
| 14,303 |
| 896 |
| ||
Cost of shares redeemed |
| (2,067 | ) | (11,523 | ) | ||
|
| 56,717 |
| 321,826 |
| ||
Net increase (decrease) in net assets |
| 113,810 |
| 362,080 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 362,080 |
| — |
| ||
End of period |
| $ | 475,890 |
| $ | 362,080 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,318 |
| $ | 1,548 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 3,625 |
| 32,752 |
| ||
Shares issued-reinvested from distributions |
| 1,219 |
| 89 |
| ||
Shares redeemed |
| (171 | ) | (1,115 | ) | ||
Net increase (decrease) in shares outstanding: |
| 4,673 |
| 31,726 |
|
(a) Commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
232
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(g) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 11.41 |
| $ | 0.05 |
| $ | 2.06 |
| $ | 2.11 |
| $ | (0.06 | ) | $ | (0.39 | ) | $ | (0.45 | ) | $ | 13.07 |
|
10/31/2006 |
| 10.00 |
| 0.09 |
| 1.37 |
| 1.46 |
| (0.05 | ) | — |
| (0.05 | ) | 11.41 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
| Ratio of Expenses |
| Net Investment |
|
|
| |||
For the |
|
|
| End of |
| to Average |
| Income (Loss) |
| Portfolio |
| |||
Period |
| Total |
| Period |
| Net Assets(a) |
| to Average |
| Turnover |
| |||
Ended(g) |
| Return(c) |
| (000’s) |
| Net(e) |
| Total(f) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 18.89 | % | $ | 475,890 |
| 1.32 | % | 1.32 | % | 0.79 | % | 22 | % |
10/31/2006 |
| 14.64 |
| 362,080 |
| 1.45 |
| 1.66 |
| 0.89 |
| 77 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Oppenheimer Developing Markets (“the Fund”) commenced operations on December 6, 2005.
The notes to the financial statements are an integral part of this report.
233
TA IDEX Oppenheimer Small- & Mid-Cap Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $112,821) |
| $ | 129,761 |
|
Cash |
| 7,731 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 2,030 |
| |
Shares of beneficial interest sold |
| 717 |
| |
Interest |
| 22 |
| |
Dividends |
| 21 |
| |
|
| 140,282 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 1,756 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 117 |
| |
Administration fees |
| 2 |
| |
Other |
| 26 |
| |
|
| 1,901 |
| |
Net Assets |
| $ | 138,381 |
|
Net Assets Consist of: |
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 115,159 |
|
Undistributed (accumulated) net investment income (loss) |
| (146 | ) | |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 6,428 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 16,940 |
| |
Net Assets |
| $ | 138,381 |
|
|
|
|
| |
Shares Outstanding |
| 10,956 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 12.63 |
|
The notes to the financial statements are an integral part of this report.
234
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $1) |
| $ | 367 |
|
Interest |
| 90 |
| |
|
| 457 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 506 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 29 |
| |
Administration fees |
| 11 |
| |
Legal fees |
| 1 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 2 |
| |
Registration fees |
| 4 |
| |
Other |
| 1 |
| |
|
|
|
| |
Total expenses |
| 565 |
| |
Recaptured expenses |
| 13 |
| |
Net expenses |
| 578 |
| |
Net Investment Income (Loss) |
| (121 | ) | |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 6,599 |
| |
Foreign currency transactions |
| (7 | ) | |
|
| 6,592 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 10,807 |
| |
|
| 10,807 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 17,399 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 17,278 |
|
The notes to the financial statements are an integral part of this report.
235
STATEMENTS OF CHANGES IN NET ASSETS
For the periods ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | (121 | ) | $ | 136 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| 6,592 |
| 1,356 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 10,807 |
| 6,133 |
| ||
|
| 17,278 |
| 7,625 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (154 | ) | — |
| ||
From net realized gain |
| (1,527 | ) | — |
| ||
|
| (1,681 | ) | — |
| ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 29,240 |
| 84,274 |
| ||
Dividends and distributions reinvested |
| 1,681 |
| — |
| ||
Cost of shares redeemed |
| (36 | ) | — |
| ||
|
| 30,885 |
| 84,274 |
| ||
Net increase (decrease) in net assets |
| 46,482 |
| 91,899 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 91,899 |
| — |
| ||
End of period |
| $ | 138,381 |
| $ | 91,899 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | (146 | ) | $ | 129 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 2,410 |
| 8,401 |
| ||
Shares issued-reinvested from distributions |
| 148 |
| — |
| ||
Shares redeemed |
| (3 | ) | — |
| ||
Net increase (decrease) in shares outstanding: |
| 2,555 |
| 8,401 |
|
(a) Commenced operations on August 1, 2006.
The notes to the financial statements are an integral part of this report.
236
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(g) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 10.94 |
| $ | (0.01 | ) | $ | 1.90 |
| $ | 1.89 |
| $ | (0.02 | ) | $ | (0.18 | ) | $ | (0.20 | ) | $ | 12.63 |
|
10/31/2006 |
| 10.00 |
| 0.02 |
| 0.92 |
| 0.94 |
| — |
| — |
| — |
| 10.94 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
| Ratio of Expenses |
| Net Investment |
|
|
| |||
For the |
|
|
| End of |
| to Average |
| Income (Loss) |
| Portfolio |
| |||
Period |
| Total |
| Period |
| Net Assets(a) |
| to Average |
| Turnover |
| |||
Ended(g) |
| Return(c) |
| (000’s) |
| Net(e) |
| Total(f) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| 17.45 | % | $ | 138,381 |
| 1.08 | %(h) | 1.08 | %(h) | (0.23 | )% | 60 | % |
10/31/2006 |
| 9.40 |
| 91,899 |
| 1.15 |
| 1.22 |
| 0.74 |
| 33 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) Ratio of Net Expenses to Average Net Assets is net of fee waivers and reimbursements by the investment adviser, if any (see note 2).
(f) Ratio of Total Expenses to Average Net Assets includes all expenses before fee waivers and reimbursements by the investment adviser.
(g) TA IDEX Oppenheimer Small- & Mid-Cap Value (“the Fund”) commenced operations on August 1, 2006.
(h) Ratios of Total Expenses to Average Net Assets and Net Expenses to Average Net Assets are inclusive of recapturerd expenses by the investment adviser, if any. The impact of recaptured expenses was 0.02%.
The notes to the financial statements are an integral part of this report.
237
TA IDEX Transamerica Short-Term Bond
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $526,445) (including securities loaned of $5,579) |
| $ | 527,728 |
|
Cash |
| 473 |
| |
Receivables: |
|
|
| |
Shares of beneficial interest sold |
| 214 |
| |
Interest |
| 7,413 |
| |
|
| 535,828 |
| |
Liabilities: |
|
|
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 68 |
| |
Management and advisory fees |
| 275 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 9 |
| |
Payable for collateral for securities on loan |
| 5,699 |
| |
Other |
| 28 |
| |
|
| 6,079 |
| |
Net Assets |
| $ | 529,749 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 529,186 |
|
Undistributed (accumulated) net investment income (loss) |
| 1,322 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities |
| (2,042 | ) | |
Net unrealized appreciation (depreciation) on investment securities |
| 1,283 |
| |
Net Assets |
| $ | 529,749 |
|
|
|
|
| |
Shares Outstanding |
| 53,572 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 9.89 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
238
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 12,266 |
|
Income from loaned securities-net |
| 2 |
| |
|
| 12,268 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,400 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 21 |
| |
Administration fees |
| 45 |
| |
Legal fees |
| 5 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 7 |
| |
Registration fees |
| 5 |
| |
Transfer agent fees |
| — | (a) | |
Other |
| 2 |
| |
Total expenses |
| 1,496 |
| |
Net Investment Income (Loss) |
| 10,772 |
| |
Net Realized and Unrealized Gain (Loss) |
|
|
| |
Realized gain (loss) from investment securities |
| 402 |
| |
Increase (decrease) in unrealized appreciation (depreciation) on investment securities |
| 1,091 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities |
| 1,493 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 12,265 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
239
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 10,772 |
| $ | 12,210 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities |
| 402 |
| (1,787 | ) | ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 1,091 |
| 2,995 |
| ||
|
| 12,265 |
| 13,418 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class A |
| — |
| (146 | ) | ||
Class I |
| (9,876 | ) | (11,638 | ) | ||
|
| (9,876 | ) | (11,784 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class A |
| — |
| 682 |
| ||
Class I |
| 140,596 |
| 198,147 |
| ||
|
| 140,596 |
| 198,829 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class A |
| — |
| 256 |
| ||
Class I |
| 9,876 |
| 11,861 |
| ||
|
| 9,876 |
| 12,117 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (109,421 | ) | ||
Class I |
| (2,554 | ) | (6,620 | ) | ||
|
| (2,554 | ) | (116,041 | ) | ||
|
| 147,918 |
| 94,905 |
| ||
Net increase (decrease) in net assets |
| 150,307 |
| 96,539 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 379,442 |
| 282,903 |
| ||
End of period |
| $ | 529,749 |
| $ | 379,442 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 1,322 |
| $ | 426 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class A |
| — |
| 70 |
| ||
Class I |
| 14,263 |
| 20,229 |
| ||
|
| 14,263 |
| 20,299 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class A |
| — |
| 26 |
| ||
Class I |
| 1,004 |
| 1,215 |
| ||
|
| 1,004 |
| 1,241 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (11,185 | ) | ||
Class I |
| (259 | ) | (677 | ) | ||
|
| (259 | ) | (11,862 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (11,089 | ) | ||
Class I |
| 15,008 |
| 20,767 |
| ||
|
| 15,008 |
| 9,678 |
|
(a) Class A closed on November 15, 2005.
The notes to the financial statements are an integral part of this report.
240
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 9.84 |
| $ | 0.24 |
| $ | 0.02 |
| $ | 0.26 |
| $ | (0.21 | ) | $ | — |
| $ | (0.21 | ) | $ | 9.89 |
|
10/31/2006 |
| 9.79 |
| 0.40 |
| 0.05 |
| 0.45 |
| (0.40 | ) | — |
| (0.40 | ) | 9.84 |
| ||||||||
10/31/2005 |
| 10.00 |
| 0.28 |
| (0.22 | ) | 0.06 |
| (0.27 | ) | — |
| (0.27 | ) | 9.79 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |||
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |||
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |||
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |||
4/30/2007 |
| 2.72 | % | $ | 529,749 |
| 0.67 | % |
|
| 4.83 | % | 40 | % |
10/31/2006 |
| 4.72 |
| 379,442 |
| 0.70 |
|
|
| 4.10 |
| 100 |
| |
10/31/2005 |
| 0.49 |
| 174,302 |
| 0.71 |
|
|
| 2.92 |
| 153 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Transamerica Short-Term Bond (“the Fund”) commenced operations on November 8, 2004. Class A closed on November 15, 2005.
The notes to the financial statements are an integral part of this report.
241
TA IDEX UBS Dynamic Alpha
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $183,646) |
| $ | 193,831 |
|
Cash |
| 6,860 |
| |
Foreign currency (cost: $3,312) |
| 3,296 |
| |
Cash on deposit with brokers |
| 13,934 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 128 |
| |
Shares of beneficial interest sold |
| 132 |
| |
Interest |
| 55 |
| |
Dividends |
| 507 |
| |
Dividend reclaims receivable |
| 13 |
| |
Swap agreements at value(premium $-157) |
| 40 |
| |
Unrealized appreciation on forward foreign currency contracts |
| 840 |
| |
|
| 219,636 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 247 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 238 |
| |
Administration fees |
| 3 |
| |
Unrealized depreciation on forward foreign currency contracts |
| 5,960 |
| |
Variation margin |
| 6,710 |
| |
Payable on swap agreements |
| 705 |
| |
Other |
| 6 |
| |
|
| 13,869 |
| |
Net Assets |
| $ | 205,767 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 205,678 |
|
Undistributed (accumulated) net investment income (loss) |
| 658 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities, futures contracts, swaps and foreign currency transactions |
| 1,355 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 10,185 |
| |
Futures contracts |
| (7,172 | ) | |
Swap agreements |
| 197 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| (5,134 | ) | |
Net Assets |
| $ | 205,767 |
|
|
|
|
| |
Shares Outstanding |
| 20,589 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share: |
| $ | 9.99 |
|
The notes to the financial statements are an integral part of this report.
242
STATEMENT OF OPERATIONS
For the period ended April 30, 2007 (a)
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $79) |
| $ | 1,182 |
|
Interest |
| 289 |
| |
|
| 1,471 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 742 |
| |
Custody fees |
| 37 |
| |
Administration fees |
| 11 |
| |
Legal fees |
| 13 |
| |
Audit fees |
| 7 |
| |
Trustees fees |
| 2 |
| |
Other |
| 1 |
| |
Total expenses |
| 813 |
| |
Net Investment Income (Loss) |
| 658 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 111 |
| |
Futures contracts |
| 1,877 |
| |
Swap agreements |
| (641 | ) | |
Foreign currency transactions |
| 8 |
| |
|
| 1,355 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 10,185 |
| |
Futures contracts |
| (7,172 | ) | |
Swap agreements |
| 197 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| (5,134 | ) | |
|
| (1,924 | ) | |
Net Realized and Unrealized Gain (Loss) on Investment Securities, Futures Contracts, Swaps and Foreign Currency Transactions |
| (569 | ) | |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 89 |
|
(a) Commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
243
STATEMENT OF CHANGES IN NET ASSETS
For the period ended
(all amounts in thousands)
|
| April 30, |
| |
|
| 2007 |
| |
|
| (unaudited) (a) |
| |
Increase (Decrease) in Net Assets From: |
|
|
| |
Operations: |
|
|
| |
Net investment income (loss) |
| $ | 658 |
|
|
|
|
| |
Net realized gain (loss) from investment securities, futures contracts, swaps and foreign currency transactions |
| 1,355 |
| |
|
|
|
| |
Change in unrealized appreciation (depreciation) on investment securities, futures contracts, swaps and foreign currency translation |
| (1,924 | ) | |
|
| 89 |
| |
|
|
|
| |
Capital Share Transactions: |
|
|
| |
Proceeds from shares sold |
| 206,359 |
| |
Cost of shares redeemed |
| (681 | ) | |
|
| 205,678 |
| |
Net increase (decrease) in net assets |
| 205,767 |
| |
Net Assets: |
|
|
| |
Beginning of period |
| — |
| |
End of period |
| $ | 205,767 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 658 |
|
|
|
|
| |
Share Activity: |
|
|
| |
Shares issued |
| 20,657 |
| |
Shares redeemed |
| (68 | ) | |
Net increase (decrease) in shares outstanding: |
| 20,589 |
|
(a) Commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
244
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 10.00 |
| $ | 0.04 |
| $ | (0.05 | ) | $ | (0.01 | ) | $ | — |
| $ | — |
| $ | — |
| $ | 9.99 |
|
|
|
|
| Ratios/Supplemental Data |
| |||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |
4/30/2007 |
| (0.10 | )% | $ | 205,767 |
| 1.51 | % | 1.22 | % | 9 | % |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX UBS Dynamic Alpha (“the Fund”) commenced operations on January 3, 2007.
The notes to the financial statements are an integral part of this report.
245
TA IDEX UBS Large Cap Value
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $718,257) (including securities loaned of $21,112) |
| $ | 789,264 |
|
Cash |
| 39,279 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 634 |
| |
Shares of beneficial interest sold |
| 634 |
| |
Interest |
| 103 |
| |
Dividends |
| 947 |
| |
|
| 830,861 |
| |
Liabilities: |
|
|
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 46 |
| |
Management and advisory fees |
| 512 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 13 |
| |
Payable for collateral for securities on loan |
| 21,792 |
| |
Other |
| 18 |
| |
|
| 22,381 |
| |
Net Assets |
| $ | 808,480 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 729,432 |
|
Undistributed (accumulated) net investment income (loss) |
| 2,689 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities |
| 5,352 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 71,007 |
| |
Net Assets |
| $ | 808,480 |
|
|
|
|
| |
Shares Outstanding |
| 60,115 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 13.45 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
246
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends |
| $ | 4,822 |
|
Interest |
| 612 |
| |
Income from loaned securities-net |
| 13 |
| |
|
| 5,447 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,940 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 18 |
| |
Administration fees |
| 50 |
| |
Legal fees |
| 4 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 6 |
| |
Registration fees |
| 1 |
| |
Transfer agent fees |
| — | (a) | |
Other |
| 2 |
| |
|
|
|
| |
Total expenses |
| 2,032 |
| |
Net Investment Income (Loss) |
| 3,415 |
| |
Net Realized and Unrealized Gain (Loss) |
|
|
| |
Realized gain (loss) from investment securities |
| 5,368 |
| |
|
|
|
| |
Increase (decrease) in unrealized appreciation (depreciation) on investment securities |
| 40,177 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities |
| 45,545 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 48,960 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
247
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 3,415 |
| $ | 2,422 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities |
| 5,368 |
| 7,811 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 40,177 |
| 23,989 |
| ||
|
| 48,960 |
| 34,222 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class I |
| (2,770 | ) | (1,596 | ) | ||
|
| (2,770 | ) | (1,596 | ) | ||
From net realized gains: |
|
|
|
|
| ||
Class I |
| (7,826 | ) | (2,899 | ) | ||
|
| (7,826 | ) | (2,899 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class I |
| 566,617 |
| 119,573 |
| ||
|
| 566,617 |
| 119,573 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class I |
| 10,596 |
| 4,495 |
| ||
|
| 10,596 |
| 4,495 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (72,383 | ) | ||
Class I |
| (33,879 | ) | (20,129 | ) | ||
|
| (33,879 | ) | (92,512 | ) | ||
|
| 543,334 |
| 31,556 |
| ||
Net increase (decrease) in net assets |
| 581,698 |
| 61,283 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 226,782 |
| 165,499 |
| ||
End of period |
| $ | 808,480 |
| $ | 226,782 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 2,689 |
| $ | 2,044 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class I |
| 44,099 |
| 10,601 |
| ||
|
| 44,099 |
| 10,601 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class I |
| 839 |
| 399 |
| ||
|
| 839 |
| 399 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (6,529 | ) | ||
Class I |
| (2,644 | ) | (1,772 | ) | ||
|
| (2,644 | ) | (8,301 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (6,529 | ) | ||
Class I |
| 42,294 |
| 9,228 |
| ||
|
| 42,294 |
| 2,699 |
|
The notes to the financial statements are an integral part of this report.
248
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| |||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| |||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| |||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| |||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| |||||||||
4/30/2007 |
|
| $ | 12.73 |
| $ | 0.09 |
| $ | 1.12 |
| $ | 1.21 |
| $ | (0.13 | ) | $ | (0.36 | ) | $ | (0.49 | ) | $ | 13.45 |
|
10/31/2006 |
|
| 10.95 |
| 0.14 |
| 1.92 |
| 2.06 |
| (0.10 | ) | (0.18 | ) | (0.28 | ) | 12.73 |
| ||||||||
10/31/2005 |
|
| 10.00 |
| 0.12 |
| 0.84 |
| 0.96 |
| (0.01 | ) | — |
| (0.01 | ) | 10.95 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| ||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| ||
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| ||
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| ||
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| ||
4/30/2007 |
|
| 9.71 | % | $ | 808,480 |
| 0.81 | % | 1.37 | % | 20 | % |
10/31/2006 |
|
| 19.19 |
| 226,782 |
| 0.88 |
| 1.21 |
| 32 |
| |
10/31/2005 |
|
| 9.60 |
| 94,135 |
| 0.92 |
| 1.14 |
| 43 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) | Annualized. |
(b) | Not annualized. |
(c) | Total Return has been calculated for the applicable period without deduction of a sales load, if any, on a initial purchase. Not annualized. |
(d) | Per share information is caluclated based on average number of shares outstanding. |
(e) | TA IDEX UBS Large Cap Value (“the Fund”) commenced operations on November 8, 2004. Class A closed on November 15, 2005. |
The notes to the financial statements are an integral part of this report.
249
TA IDEX Van Kampen Emerging Markets Debt
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $264,804) |
| $ | 280,651 |
|
Cash |
| 10,548 |
| |
Foreign currency (cost: $348) |
| 347 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 11,895 |
| |
Shares of beneficial interest sold |
| 169 |
| |
Interest |
| 4,436 |
| |
|
| 308,046 |
| |
Liabilities: |
|
|
| |
Accounts payable and accrued liabilities: |
|
|
| |
Shares of beneficial interest redeemed |
| 46 |
| |
Management and advisory fees |
| 241 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 5 |
| |
Written options (premiums $1,003) |
| 217 |
| |
Other |
| 44 |
| |
|
| 553 |
| |
Net Assets |
| $ | 307,493 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 279,721 |
|
Undistributed (accumulated) net investment income (loss) |
| 662 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities, futures contracts and foreign currency transactions |
| 10,462 |
| |
Net unrealized appreciation (depreciation) on: |
|
|
| |
Investment securities |
| 15,847 |
| |
Written option contracts |
| 786 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| 15 |
| |
Net Assets |
| $ | 307,493 |
|
|
|
|
| |
Shares Outstanding |
| 27,525 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 11.17 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
250
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 10,976 |
|
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,638 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 148 |
| |
Administration fees |
| 35 |
| |
Legal fees |
| 5 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 8 |
| |
Registration fees |
| 7 |
| |
Transfer agent fees |
| — | (a) | |
Other |
| 2 |
| |
|
|
|
| |
Total expenses |
| 1,854 |
| |
Net Investment Income (Loss) |
| 9,122 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 10,890 |
| |
Futures contracts |
| (66 | ) | |
Foreign currency transactions |
| 59 |
| |
|
| 10,883 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 705 |
| |
Written option contracts |
| 786 |
| |
Translation of assets and liabilities denominated in foreign currencies |
| (37 | ) | |
|
| 1,454 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities, Futures Contracts, Written Options and Foreign Currency Transactions |
| 12,337 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 21,459 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
251
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 9,122 |
| $ | 18,790 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities, futures contracts, written options and foreign currency transactions |
| 10,883 |
| 4,883 |
| ||
Change in unrealized appreciation (depreciation) on investment securities, futures contracts, written options and foreign currency translation |
| 1,454 |
| 9,918 |
| ||
|
|
|
|
|
| ||
|
| 21,459 |
| 33,591 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class A |
| — |
| (246 | ) | ||
Class I |
| (10,654 | ) | (17,223 | ) | ||
|
| (10,654 | ) | (17,469 | ) | ||
From net realized gains: |
|
|
|
|
| ||
Class I |
| (3,843 | ) | (1,668 | ) | ||
|
| (3,843 | ) | (1,668 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class A |
| — |
| 4,012 |
| ||
Class I |
| 7,052 |
| 407,643 |
| ||
|
| 7,052 |
| 411,655 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class A |
| — |
| 460 |
| ||
Class I |
| 14,497 |
| 18,975 |
| ||
|
| 14,497 |
| 19,435 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (130,675 | ) | ||
Class I |
| (146,744 | ) | (150,747 | ) | ||
|
| (146,744 | ) | (281,422 | ) | ||
|
| (125,195 | ) | 149,668 |
| ||
Net increase (decrease) in net assets |
| (118,233 | ) | 164,122 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 425,726 |
| 261,604 |
| ||
End of period |
| $ | 307,493 |
| $ | 425,726 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 662 |
| $ | 2,194 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class A |
| — |
| 384 |
| ||
Class I |
| 640 |
| 38,444 |
| ||
|
| 640 |
| 38,828 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class A |
| — |
| 44 |
| ||
Class I |
| 1,325 |
| 1,801 |
| ||
|
| 1,325 |
| 1,845 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (12,448 | ) | ||
Class I |
| (13,456 | ) | (14,239 | ) | ||
|
| (13,456 | ) | (26,687 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (12,020 | ) | ||
Class I |
| (11,491 | ) | 26,006 |
| ||
|
| (11,491 | ) | 13,986 |
|
The notes to the financial statements are an integral part of this report.
252
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 10.91 |
| $ | 0.28 |
| $ | 0.40 |
| $ | 0.68 |
| $ | (0.32 | ) | $ | (0.10 | ) | $ | (0.42 | ) | $ | 11.17 |
|
10/31/2006 |
| 10.45 |
| 0.55 |
| 0.52 |
| 1.07 |
| (0.54 | ) | (0.07 | ) | (0.61 | ) | 10.91 |
| ||||||||
10/31/2005 |
| 10.00 |
| 0.49 |
| 0.45 |
| 0.94 |
| (0.49 | ) | — |
| (0.49 | ) | 10.45 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| ||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| ||
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| ||
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| ||
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| ||
4/30/2007 |
| 6.36 | % | $307,493 |
|
|
| 1.05 | % | 5.17 | % | 36 | % |
10/31/2006 |
| 10.61 |
| 425,726 |
|
|
| 1.03 |
| 5.24 |
| 79 |
|
10/31/2005 |
| 9.36 |
| 136,022 |
|
|
| 1.07 |
| 4.91 |
| 67 |
|
NOTES TO FINANCIAL HIGHLIGHTS
(a) |
| Annualized. |
(b) |
| Not annualized. |
(c) |
| Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized. |
(d) |
| Per share information is calculated based on average number of shares outstanding. |
(e) |
| TA IDEX Van Kampen Emerging Markets Debt (“the Fund”) commenced operations on November 8, 2004. Class A closed on November 15, 2005. |
The notes to the financial statements are an integral part of this report.
253
TA IDEX Van Kampen Mid-Cap Growth
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
|
|
|
| |
Investment securities, at value (cost: $90,345) (including securities loaned of $17,010) |
| $ | 98,318 |
|
Cash |
| 1,695 |
| |
Foreign currency (cost: $1) |
| 1 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 218 |
| |
Shares of beneficial interest sold |
| 276 |
| |
Interest |
| 12 |
| |
Income from loaned securities |
| 1 |
| |
Dividends |
| 38 |
| |
|
| 100,559 |
| |
Liabilities: |
|
|
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 53 |
| |
Administration fees |
| 1 |
| |
Payable for collateral for securities on loan |
| 17,457 |
| |
Other |
| 13 |
| |
|
| 17,524 |
| |
Net Assets |
| $ | 83,035 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 73,496 |
|
Undistributed (accumulated) net investment income (loss) |
| 12 |
| |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 1,554 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 7,973 |
| |
Net Assets |
| $ | 83,035 |
|
|
|
|
| |
Shares Outstanding |
| 7,118 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 11.66 |
|
The notes to the financial statements are an integral part of this report.
254
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Dividends (net of withholding taxes on foreign dividends of $4) |
| $ | 364 |
|
Interest |
| 44 |
| |
Income from loaned securities-net |
| 23 |
| |
|
| 431 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 295 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 12 |
| |
Administration fees |
| 7 |
| |
Legal fees |
| 1 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 2 |
| |
Registration fees |
| 4 |
| |
|
|
|
| |
Total expenses |
| 332 |
| |
Net Investment Income (Loss) |
| 99 |
| |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 2,648 |
| |
Foreign currency transactions |
| (3 | ) | |
|
| 2,645 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 6,569 |
| |
|
| 6,569 |
| |
|
|
|
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 9,214 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 9,313 |
|
The notes to the financial statements are an integral part of this report.
255
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | 99 |
| $ | 51 |
|
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| 2,645 |
| (1,091 | ) | ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 6,569 |
| 1,404 |
| ||
|
|
|
|
|
| ||
|
| 9,313 |
| 364 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income |
| (138 | ) | — |
| ||
|
|
|
|
|
| ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold |
| 14,636 |
| 74,728 |
| ||
Dividends and distributions reinvested |
| 138 |
| — |
| ||
Cost of shares redeemed |
| (16,006 | ) | — |
| ||
|
| (1,232 | ) | 74,728 |
| ||
Net increase (decrease) in net assets |
| 7,943 |
| 75,092 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 75,092 |
| — |
| ||
End of period |
| $ | 83,035 |
| $ | 75,092 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | 12 |
| $ | 51 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued |
| 1,294 |
| 7,267 |
| ||
Shares issued-reinvested from distributions |
| 13 |
| — |
| ||
Shares redeemed |
| (1,456 | ) | — |
| ||
Net increase (decrease) in shares outstanding: |
| (149 | ) | 7,267 |
|
(a) Commenced operations on January 3, 2006.
The notes to the financial statements are an integral part of this report.
256
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| ||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| ||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| ||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| ||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| ||||||||
4/30/2007 |
| $ | 10.33 |
| $ | 0.01 |
| $ | 1.34 |
| $ | 1.35 |
| $ | (0.02 | ) | $ | — |
| $ | (0.02 | ) | $ | 11.66 |
|
10/31/2006 |
| 10.00 |
| 0.01 |
| 0.32 |
| 0.33 |
| — |
| — |
| — |
| 10.33 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| |||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| |||
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| |||
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| |||
Ended(e) |
| Return(c) |
| (000's) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| |||
4/30/2007 |
| 13.17 | % | $ | 83,035 |
|
|
| 0.90 | % | 0.27 | % | 47 | % |
10/31/2006 |
| 3.30 |
| 75,092 |
|
|
| 0.92 |
| 0.11 |
| 50 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Van Kampen Mid-Cap Growth (“the Fund”) commenced operations on January 3, 2006.
The notes to the financial statements are an integral part of this report.
257
TA IDEX Van Kampen Small Company Growth
STATEMENT OF ASSETS AND LIABILITIES
At April 30, 2007
(all amounts except per share amounts in thousands)
(unaudited)
Assets: |
|
|
| |
Investment securities, at value (cost: $182,561) (including securities loaned of $44,334) |
| $ | 205,700 |
|
Cash |
| 8,842 |
| |
Receivables: |
|
|
| |
Investment securities sold |
| 1,636 |
| |
Shares of beneficial interest sold |
| 209 |
| |
Interest |
| 27 |
| |
Income from loaned securities |
| 70 |
| |
Dividends |
| 28 |
| |
|
| 216,512 |
| |
Liabilities: |
|
|
| |
Investment securities purchased |
| 2,556 |
| |
Accounts payable and accrued liabilities: |
|
|
| |
Management and advisory fees |
| 134 |
| |
Transfer agent fees |
| — | (a) | |
Administration fees |
| 3 |
| |
Payable for collateral for securities on loan |
| 46,149 |
| |
Other |
| 26 |
| |
|
| 48,868 |
| |
Net Assets |
| $ | 167,644 |
|
Net Assets Consist of: |
|
|
| |
|
|
|
| |
Shares of beneficial interest, unlimited shares authorized, no par value |
| $ | 127,636 |
|
Undistributed (accumulated) net investment income (loss) |
| (55 | ) | |
|
|
|
| |
Undistributed (accumulated) net realized gain (loss) from investment securities and foreign currency transactions |
| 16,924 |
| |
Net unrealized appreciation (depreciation) on investment securities |
| 23,139 |
| |
Net Assets |
| $ | 167,644 |
|
|
|
|
| |
Shares Outstanding |
| 12,663 |
| |
|
|
|
| |
Net Asset Value and Offering Price Per Share |
| $ | 13.24 |
|
(a) Rounds to less than $1.
The notes to the financial statements are an integral part of this report.
258
STATEMENT OF OPERATIONS
For the period ended April 30, 2007
(all amounts in thousands)
(unaudited)
Investment Income: |
|
|
| |
Interest |
| $ | 114 |
|
Dividends (net of withholding taxes on foreign dividends of $2) |
| 351 |
| |
Income from loaned securities-net |
| 572 |
| |
|
| 1,037 |
| |
|
|
|
| |
Expenses: |
|
|
| |
Management and advisory fees |
| 1,063 |
| |
Printing and shareholder reports |
| 1 |
| |
Custody fees |
| 22 |
| |
Administration fees |
| 22 |
| |
Legal fees |
| 3 |
| |
Audit fees |
| 10 |
| |
Trustees fees |
| 6 |
| |
Registration fees |
| 5 |
| |
Transfer agent fees |
| — | (a) | |
Other |
| 3 |
| |
|
|
|
| |
Total expenses |
| 1,135 |
| |
Net Investment Income (Loss) |
| (98 | ) | |
Net Realized Gain (Loss) from: |
|
|
| |
Investment securities |
| 17,371 |
| |
Foreign currency transactions |
| (9 | ) | |
|
| 17,362 |
| |
Net Increase (Decrease) in Unrealized Appreciation (Depreciation) on: |
|
|
| |
Investment securities |
| 65 |
| |
|
| 65 |
| |
Net Realized and Unrealized Gain (Loss) on Investment Securities and Foreign Currency Transactions |
| 17,427 |
| |
|
|
|
| |
Net Increase (Decrease) in Net Assets Resulting from Operations |
| $ | 17,329 |
|
(a) Amount rounds to less than $1.
The notes to the financial statements are an integral part of this report.
259
STATEMENTS OF CHANGES IN NET ASSETS
For the period or year ended
(all amounts in thousands)
|
| April 30, |
| October 31, |
| ||
|
| 2007 |
| 2006 (a) |
| ||
|
| (unaudited) |
|
|
| ||
Increase (Decrease) in Net Assets From: |
|
|
|
|
| ||
Operations: |
|
|
|
|
| ||
Net investment income (loss) |
| $ | (98 | ) | $ | (526 | ) |
|
|
|
|
|
| ||
Net realized gain (loss) from investment securities and foreign currency transactions |
| 17,362 |
| 11,395 |
| ||
|
|
|
|
|
| ||
Change in unrealized appreciation (depreciation) on investment securities |
| 65 |
| 19,464 |
| ||
|
|
|
|
|
| ||
|
| 17,329 |
| 30,333 |
| ||
Distributions to Shareholders: |
|
|
|
|
| ||
From net investment income: |
|
|
|
|
| ||
Class I |
| — |
| (136 | ) | ||
|
| — |
| (136 | ) | ||
From net realized gains: |
|
|
|
|
| ||
Class I |
| (11,180 | ) | (3,166 | ) | ||
|
| (11,180 | ) | (3,166 | ) | ||
Capital Share Transactions: |
|
|
|
|
| ||
Proceeds from shares sold: |
|
|
|
|
| ||
Class A |
| — |
| 2,856 |
| ||
Class I |
| 13,447 |
| 193,993 |
| ||
|
| 13,447 |
| 196,849 |
| ||
Dividends and distributions reinvested: |
|
|
|
|
| ||
Class I |
| 11,180 |
| 3,302 |
| ||
|
| 11,180 |
| 3,302 |
| ||
Cost of shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (79,117 | ) | ||
Class I |
| (164,781 | ) | (7,523 | ) | ||
|
| (164,781 | ) | (86,640 | ) | ||
|
| (140,154 | ) | 113,511 |
| ||
Net increase (decrease) in net assets |
| (134,005 | ) | 140,542 |
| ||
Net Assets: |
|
|
|
|
| ||
Beginning of period |
| 301,649 |
| 161,107 |
| ||
End of period |
| $ | 167,644 |
| $ | 301,649 |
|
Undistributed (accumulated) net investment income (loss) |
| $ | (55 | ) | $ | 43 |
|
|
|
|
|
|
| ||
Share Activity: |
|
|
|
|
| ||
Shares issued: |
|
|
|
|
| ||
Class A |
| — |
| 248 |
| ||
Class I |
| 1,017 |
| 16,324 |
| ||
|
| 1,017 |
| 16,572 |
| ||
Shares issued-reinvested from distributions: |
|
|
|
|
| ||
Class I |
| 875 |
| 274 |
| ||
|
| 875 |
| 274 |
| ||
Shares redeemed: |
|
|
|
|
| ||
Class A |
| — |
| (6,881 | ) | ||
Class I |
| (12,825 | ) | (660 | ) | ||
|
| (12,825 | ) | (7,541 | ) | ||
Net increase (decrease) in shares outstanding: |
|
|
|
|
| ||
Class A |
| — |
| (6,633 | ) | ||
Class I |
| (10,933 | ) | 15,938 |
| ||
|
| (10,933 | ) | 9,305 |
|
(a) Commenced operations on November 8, 2004. The inception date for the offering of share Class A was March 1, 2005. Class A closed on November 15, 2005.
The notes to the financial statements are an integral part of this report.
260
FINANCIAL HIGHLIGHTS
(unaudited for the period ended April 30, 2007)
|
| For a share of beneficial interest outstanding throughout each period |
| |||||||||||||||||||||||
|
| Net Asset |
| Investment Operations |
| Distributions |
| Net Asset |
| |||||||||||||||||
For the |
| Value, |
| Net |
| Net Realized |
|
|
| From Net |
| From Net |
|
|
| Value, |
| |||||||||
Period |
| Beginning |
| Investment |
| and Unrealized |
| Total |
| Investment |
| Realized |
| Total |
| End |
| |||||||||
Ended(d)(e) |
| of Period |
| Income (Loss) |
| Gain (Loss) |
| Operations |
| Income |
| Gains |
| Distributions |
| of Period |
| |||||||||
4/30/2007 |
|
| $ | 12.78 |
| $ | (0.01 | ) | $ | 0.94 |
| $ | 0.93 |
| $ | — |
| $ | (0.47 | ) | $ | (0.47 | ) | $ | 13.24 |
|
10/31/2006 |
|
| 11.29 |
| (0.02 | ) | 1.69 |
| 1.67 |
| (0.01 | ) | (0.17 | ) | (0.18 | ) | 12.78 |
| ||||||||
10/31/2005 |
|
| 10.00 |
| 0.01 |
| 1.28 |
| 1.29 |
| — |
| — |
| — |
| 11.29 |
| ||||||||
|
|
|
| Ratios/Supplemental Data |
| ||||||||||
|
|
|
| Net Assets, |
|
|
| Net Investment |
|
|
| ||||
For the |
|
|
| End of |
| Ratio of Expenses |
| Income (Loss) |
| Portfolio |
| ||||
Period |
| Total |
| Period |
| to Average |
| to Average |
| Turnover |
| ||||
Ended(e) |
| Return(c) |
| (000’s) |
| Net Assets(a) |
| Net Assets(a) |
| Rate(b) |
| ||||
4/30/2007 |
|
| 7.45 | % | $ | 167,644 |
|
|
| 1.01 | % | (0.09 | )% | 41 | % |
10/31/2006 |
|
| 14.92 |
| 301,649 |
|
|
| 1.01 |
| (0.19 | ) | 67 |
| |
10/31/2005 |
|
| 12.80 |
| 86,432 |
|
|
| 1.07 |
| 0.06 |
| 75 |
| |
NOTES TO FINANCIAL HIGHLIGHTS
(a) Annualized.
(b) Not annualized.
(c) Total Return has been calculated for the applicable period without deduction of a sales load, if any, on an initial purchase. Not annualized.
(d) Per share information is calculated based on average number of shares outstanding.
(e) TA IDEX Van Kampen Small Company Growth (“the Fund”) commenced operations on November 8, 2004. Class A closed on November 15, 2005.
The notes to the financial statements are an integral part of this report.
261
TA IDEX Class I Funds
NOTES TO FINANCIAL STATEMENTS
At April 30, 2007
(all amounts in thousands)
(unaudited)
NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Transamerica IDEX Mutual Funds (“TA IDEX Class I Funds”) is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). TA IDEX AllianceBernstein International Value (“AllianceBernstein International Value”), TA IDEX Bjurman, Barry Micro Emerging Growth (“Bjurman, Barry Micro Emerging Growth”), TA IDEX BlackRock Global Allocation (“BlackRock Global Allocation”) (formerly, TA IDEX Mercury Global Allocation), TA IDEX BlackRock Large Cap Value (“BlackRock Large Cap Value”) (formerly, TA IDEX Mercury Large Cap Value), TA IDEX BlackRock Natural Resources (“BlackRock Natural Resources”), TA IDEX Evergreen International Small Cap (“Evergreen International Small Cap”), TA IDEX Federated Market Opportunity (“Federated Market Opportunity”), TA IDEX JPMorgan International Bond (“JPMorgan International Bond”), TA IDEX JPMorgan Mid Cap Value (“JPMorgan Mid Cap Value”), TA IDEX Loomis Sayles Bond (“Loomis Sayles Bond”), TA IDEX Marsico International Growth (“Marsico International Growth”), TA IDEX Mellon Market Neutral Strategy (“Mellon Market Neutral Strategy”), TA IDEX Neuberger Berman International (“Neuberger Berman International”), TA IDEX Oppenheimer Developing Markets (“Oppenheimer Developing Markets”), TA IDEX Oppenheimer Small- & Mid-Cap Value (“Oppenheimer Small- & Mid-Cap Value”), TA IDEX Transamerica Short-Term Bond (“Transamerica Short-Term Bond”), TA IDEX UBS Dynamic Alpha (“UBS Dynamic Alpha”), TA IDEX UBS Large Cap Value (“UBS Large Cap Value”), TA IDEX Van Kampen Emerging Markets Debt (“Van Kampen Emerging Markets Debt”), TA IDEX Van Kampen Mid-Cap Growth (“Van Kampen Mid-Cap Growth”), and TA IDEX Van Kampen Small Company Growth (“Van Kampen Small Company Growth”), (each a “Fund” and collectively the “Funds”), are part of Transamerica IDEX Mutual Funds.
Fund |
| Commencement of Operations |
|
AllianceBernstein International Value |
| December 6, 2005 |
|
Bjurman, Barry Micro Emerging Growth |
| August 1, 2006 |
|
BlackRock Global Allocation |
| December 6, 2005 |
|
BlackRock Large Cap Value |
| March 1, 2005 |
|
BlackRock Natural Resources |
| January 3, 2007 |
|
Evergreen International Small Cap |
| November 8, 2004 |
|
Federated Market Opportunity |
| December 6, 2005 |
|
JPMorgan International Bond |
| December 6, 2005 |
|
JPMorgan Mid Cap Value |
| March 1, 2005 |
|
Loomis Sayles Bond |
| January 3, 2007 |
|
Marsico International Growth |
| November 8, 2004 |
|
Mellon Market Neutral Strategy |
| January 3, 2007 |
|
Neuberger Berman International |
| December 6, 2005 |
|
Oppenheimer Developing Markets |
| December 6, 2005 |
|
Oppenheimer Small- & Mid-Cap Value |
| August 1, 2006 |
|
Transamerica Short-Term Bond |
| November 8, 2004 |
|
UBS Dynamic Alpha |
| January 3, 2007 |
|
UBS Large Cap Value |
| November 8, 2004 |
|
Van Kampen Emerging Markets Debt |
| November 8, 2004 |
|
Van Kampen Mid-Cap Growth |
| January 3, 2006 |
|
Van Kampen Small Company Growth |
| November 8, 2004 |
|
262
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.
This report should be read in conjunction with the Funds’ current prospectuses and statement of additional information, which contain more complete information about the Funds.
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.
Multiple class operations, income and expenses: The Funds currently offer one class of shares, Class I shares, which are currently being offered for sale to certain affiliated asset allocation funds and certain institutional investors only. Income, non-class specific expenses and realized and unrealized gains and losses, were allocated daily to Class I, based upon the value of shares outstanding method as permitted under Rule 18f-3 of the 1940 Act. Class I bore its own specific expenses as well as a portion of general, common expenses.
Security valuations: The Funds value their investments at the close of the New York Stock Exchange (“NYSE”), normally 4 p.m. ET, each day the NYSE is open for business. Fund investments are valued at the last sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded.
Securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the last quoted bid price.
Debt securities are valued based on a price quotation or other equivalent indication of value supplied by an exchange, a pricing service or a major market maker; however, those that mature in sixty days or less are valued at amortized cost, which approximates market.
Investment company securities are valued at the net asset value of the underlying portfolio.
Foreign securities generally are valued based on quotations from the primary market in which they are traded. 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. If a significant market event impacting the value of a portfolio security (e.g., natural disaster, company announcement, market volatility) occurs subsequent to the close of trading in the security, but prior to the calculation of the Funds’ net asset value per share, market quotations for that security may be determined to be unreliable and, accordingly, not “readily available.” As a result, foreign equity securities held by the Funds may be valued at fair market value as determined in good faith by the Funds’ Administrative Valuation Committee, under the supervision of the Board’s Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
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 the Funds’ Administrative Valuation Committee, under the supervision of the Board’s Valuation Oversight Committee, using guidelines adopted by the Board of Trustees.
Cash: The Funds may leave cash overnight in their cash accounts with the custodian, Investors Bank & Trust Company (“IBT”). IBT has been contracted on behalf of the Funds to invest the excess cash into savings accounts, which at April 30, 2007 were paying an interest rate of 3.59%.
Throughout the year, the Funds may have a cash overdraft balance. A fee is incurred on this overdraft, calculated by multiplying the overdraft by a rate based on the federal funds rate.
263
Repurchase agreements: The Funds are authorized to enter into repurchase agreements. The Funds, through their custodian, IBT, receive delivery of the underlying securities, the value of which at the time of purchase is required to be an amount equal to at least 100% of the resale price. The Funds will bear the risk of value fluctuations until the security can be sold and may encounter delays and incur costs in liquidating the security. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.
Short Sales: Mellon Market Neutral Strategy and UBS Dynamic Alpha may from time to time sell securities short. In the event that the sub-adviser anticipates that the price of a security will decline, it may sell the security short and borrow the same security from a broker or other institution to complete the sale. The fund will incur a profit or a loss, depending upon whether the market price of the security decreases or increases between the date of the short sale and the date on which the fund must replace the borrowed security. All short sales will fully collateralized. Short sales represent an aggresive 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 a stock sold short rises), whereas losses from direct purchases of securities are limited to the total amount invested, and a fund may be unable to replace a borrowed security sold short. Dividends paid by the issuer of the security sold short are paid by the Fund to the lender, recorded on the ex-date of the dividend and recorded as an expense on the Statement of Operations.
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 IDEX Mutual 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 IDEX Mutual Funds, or by any other party.
Recaptured commissions during the six months ended April 30, 2007 are included in net realized gains in the Statement of Operations and are summarized as follows:
Fund |
| Commissions |
| |
AllianceBernstein International Value |
| $ | 8 |
|
Bjurman, Barry Micro Emerging Growth |
| 2 |
| |
Federated Market Opportunity |
| 4 |
| |
Marsico International Growth |
| 1 |
| |
Neuberger Berman International |
| 7 |
| |
UBS Dynamic Alpha |
| 6 |
| |
UBS Large Cap Value |
| 46 |
| |
Van Kampen Small Company Growth |
| 13 |
| |
Securities lending: The Funds may lend securities to qualified borrowers, with IBT acting as the Funds’ lending agent. The Funds earn negotiated lenders’ fees. The Funds receive cash and/or securities as collateral against the loaned securities. Cash collateral received is invested in short term, interest bearing securities. The Funds monitor the market value of securities loaned on a daily basis and requires collateral in an amount at least equal to the value of the securities loaned. Income from loaned securities on the Statement of Operations is net of fees, earned by IBT for its services, in the following amounts:
Fund |
| Fees |
| |
AllianceBernstein International Value |
| $ | 3 |
|
BlackRock Large Cap Value |
| 7 |
| |
Evergreen International Small Cap |
| 22 |
| |
Federated Market Opportunity |
| 2 |
| |
JPMorgan Mid Cap Value |
| 6 |
| |
Marsico International Growth |
| 3 |
| |
Neuberger Berman International |
| 7 |
| |
Oppenheimer Developing Markets |
| 7 |
| |
Transamerica Short-Term Bond |
| 1 |
| |
UBS Large Cap Value |
| 6 |
| |
Van Kampen Mid-Cap Growth |
| 10 |
| |
Van Kampen Small Company Growth |
| 245 |
| |
264
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.
Dividend income 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.
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.
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.
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 enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Contracts are valued at the contractual forward rate and 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 currency contracts at six months ended are listed in the Schedules of Investments.
265
Futures contracts: The Funds may enter into futures contracts to manage exposure to market, interest rate or currency fluctuations. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. The primary risks associated with futures contracts are imperfect correlation between the change in market value of the securities held and the prices of futures contracts; the possibility of an illiquid market and inability of the counterparty to meet the contract terms.
Open futures contracts at six months ended are listed in the Schedules of Investments.
Option contracts: The Funds may enter into options contracts to manage exposure to 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 imperfect correlation between the change in value of the securities held and the prices of the options contracts; the possibility of an illiquid market and inability of the counterparty to meet the contracts terms. When a Fund writes a covered call or put 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. Options are marked-to-market daily to reflect the current value of the option written.
The underlying face amounts of open option contracts at April 30, 2007 are listed in the Schedule of Investments.
Transactions in written call and put options were as follows:
Van Kampen Emerging Markets Debt |
| Premium |
| Contracts* |
| |
Balance at October 31, 2006 |
| $ | — |
| — |
|
Sales |
| 1,003 |
| 65,932,015 |
| |
Closing Buys |
| — |
| — |
| |
Expirations |
| — |
| — |
| |
Exercised |
| — |
| — |
| |
Balance at April 30, 2007 |
| $ | 1,003 |
| 65,932,015 |
|
* Contracts not in thousands
BlackRock Global Allocation |
| Premium |
| Contracts* |
| |
Balance at October 31, 2006 |
| $ | 1,080 |
| 4,261 |
|
Sales |
| 1,466 |
| 2,897 |
| |
Closing Buys |
| (274 | ) | (660 | ) | |
Expirations |
| (141 | ) | (1,243 | ) | |
Exercised |
| (249 | ) | (744 | ) | |
Balance at April 30, 2007 |
| $ | 1,882 |
| 4,511 |
|
* Contracts not in thousands
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.
NOTE 2. RELATED PARTY TRANSACTIONS
Transamerica Fund Advisors, Inc. (“TFAI”) is the Funds’ investment adviser. Transamerica Fund Services, Inc. (“TFS”) is the Funds’ administrator and transfer agent. AFSG Securities Corp. (“AFSG”), was the Funds’ distributor/principal underwriter. Effective May 1, 2007, Transamerica Capital, Inc. (“TCI”) is the Funds’ distributor/principal underwriter. TFAI, TFS and TCI are affiliates of AEGON, NV, a Netherlands corporation.
100% of Fund assets are owned by affiliated investment companies.
266
Investment advisory fees: The Funds pay management fees to TFAI based on average daily net assets (“ANA”) at the following breakpoints:
Fund |
| Breakpoints |
AllianceBernstein International Value |
| 0.88% of the first $200 million of ANA |
|
|
|
Bjurman, Barry Micro Emerging Growth |
| 1.05% of the first $250 million of ANA |
|
|
|
BlackRock Global Allocation |
| 0.80% of the first $100 million of ANA |
|
|
|
BlackRock Large Cap Value |
| 0.80% of the first $250 million of ANA |
|
|
|
BlackRock Natural Resources |
| 0.80% of the first $250 million of ANA |
|
|
|
Evergreen International Small Cap |
| 1.07% of the first $250 million of ANA |
|
|
|
Federated Market Opportunity |
| 0.85% of the first $30 million of ANA |
|
|
|
JPMorgan International Bond |
| 0.55% of the first $100 million of ANA |
|
|
|
JPMorgan Mid Cap Value |
| 0.85% of the first $100 million of ANA |
|
|
|
Loomis Sayles Bond |
| 0.675% of the first $200 million of ANA |
|
|
|
Marsico International Growth |
| 1.06% of the first $300 million of ANA |
|
|
|
Mellon Market Neutral Strategy |
| 1.40% of ANA |
|
|
|
Neuberger Berman International |
| 1.00% of the first $100 million of ANA |
|
|
|
Oppenheimer Developing Markets |
| 1.20% of the first $50 million of ANA |
|
|
|
Oppenheimer Small- & Mid-Cap Value |
| 0.95% of the first $100 million of ANA |
|
|
|
Transamerica Short-Term Bond |
| 0.65% of the first $250 million of ANA |
|
|
|
UBS Dynamic Alpha |
| 1.40% of the first $150 million of ANA |
267
UBS Large Cap Value |
| 0.82% of the first $200 million of ANA 0.76% of the next $200 million of ANA 0.74% of the next $350 million of ANA 0.71% of the next $250 million of ANA 0.67% of the next $500 million of ANA 0.62% of ANA over $1.5 billion |
|
|
|
Van Kampen Emerging Markets Debt |
| From November 1, 2006 to December 31, 2006: 0.95% of the first $250 million of ANA 0.90% of the next $250 million of ANA 0.80% of ANA over $500 million From January 1, 2007 on: 0.95% of the first $250 million of ANA 0.85% of the next $250 million of ANA 0.80% of ANA over $500 million |
|
|
|
Van Kampen Mid-Cap Growth |
| From November 1, 2006 to December 31, 2006: 0.80% of ANA From January 1, 2007 on: 0.80% of the first $1 billion of ANA 0.775% of ANA over $1 billion |
|
|
|
Van Kampen Small Company Growth |
| 0.95% of the first $500 million of ANA 0.85% of ANA over $500 million |
TFAI has contractually agreed to waive its advisory fee and will reimburse each Fund to the extent that operating expenses, excluding 12b-1 fees, exceed the following stated annual limit:
Fund |
| Expense Limit |
|
AllianceBernstein International Value |
| 1.13 | % |
Bjurman, Barry Micro Emerging Growth* |
| 1.25 | % |
BlackRock Global Allocation |
| 1.00 | % |
BlackRock Large Cap Value* |
| 1.00 | % |
BlackRock Natural Resources* |
| 1.00 | % |
Evergreen International Small Cap* |
| 1.32 | % |
Federated Market Opportunity |
| 1.05 | % |
JPMorgan International Bond |
| 0.75 | % |
JPMorgan Mid Cap Value* |
| 1.05 | % |
Loomis Sayles Bond* |
| 0.88 | % |
Marsico International Growth* |
| 1.31 | % |
Mellon Market Neutral Strategy* |
| 1.65 | % |
Neuberger Berman International |
| 1.25 | % |
Oppenheimer Developing Markets |
| 1.45 | % |
Oppenheimer Small- & Mid-Cap Value* |
| 1.15 | % |
Transamerica Short-Term Bond* |
| 0.85 | % |
UBS Dynamic Alpha* |
| 1.65 | % |
UBS Large Cap Value* |
| 1.02 | % |
Van Kampen Emerging Markets Debt* |
| 1.15 | % |
Van Kampen Mid-Cap Growth |
| 1.00 | % |
Van Kampen Small Company Growth* |
| 1.15 | % |
*If total Fund expenses fall below the annual expense limitation agreement agreed to by the adviser within the succeeding three years, the Funds may be required to pay the adviser a portion or all of the reimbursed expenses.
There are no amounts available for recapture at April 30, 2007.
268
Administrative services: The Funds have entered into an agreement with TFS for financial and legal fund administration services. Each Fund pays 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: Each Fund pays TFS an annual per-account charge for each open and closed account. For the period from inception through April 30, 2007, TFS retained the following amounts of the Funds’ transfer agent fees.
Fund |
| Fees |
|
Evergreen International Small Cap |
| Less than $1 |
|
JPMorgan Mid Cap Value |
| Less than $1 |
|
Marsico International Growth |
| Less than $1 |
|
Transamerica Short-Term Bond |
| Less than $1 |
|
UBS Large Cap Value |
| Less than $1 |
|
Van Kampen Emerging Markets Debt |
| Less than $1 |
|
Van Kampen Small Company Growth |
| Less than $1 |
|
Funds not listed in the above table did not incurr transfer agency fees.
Retirement plan: Under a retirement plan (the “Emeritus Plan”) available to the Disinterested Trustees, each Disinterested Trustee is deemed to have elected to serve as Trustee Emeritus of Transamerica IDEX upon his or her termination of service, other than removal for cause, for a maximum period of five years determined by his or her years of service as a Trustee.
Such amounts shall be accrued by Transamerica IDEX on a pro rata basis allocable to each Transamerica IDEX fund based on the relative assets of the Funds. If retainers increase in the future, past accruals (and credits) will be adjusted upward so that 50% of the Trustee’s current retainer is accrued and credited at all times. Upon death, disability or termination of service, other than removal for cause, amounts deferred become payable to an Emeritus Trustee (or his/her beneficiary). Upon the commencement of service as Trustee Emeritus, compensation will be paid on a quarterly basis during the time period that the Trustee Emeritus is allowed to serve as such.
Amounts deferred and accrued under the Deferred Compensation and Emeritus Plans are unfunded and unsecured claims against the general assets of Transamerica IDEX. For the period ended April 30, 2007, the amounts related to the Emeritus Plan were as follows:
Fund |
| Expenses |
| |
AllianceBernstein International Value |
| $ | 13 |
|
Bjurman, Barry Micro Emerging Growth |
| 1 |
| |
BlackRock Global Allocation |
| 15 |
| |
BlackRock Large Cap Value |
| 25 |
| |
Evergreen International Small Cap |
| 23 |
| |
Federated Market Opportunity |
| 4 |
| |
JPMorgan International Bond |
| 22 |
| |
JPMorgan Mid Cap Value |
| 13 |
| |
Loomis Sayles Bond |
| — |
| |
Marsico International Growth |
| 21 |
| |
Mellon Market Neutral Strategy |
| — |
| |
Neuberger Berman International |
| 23 |
| |
Oppenheimer Developing Markets |
| 17 |
| |
Oppenheimer Small- & Mid-Cap Value |
| 4 |
| |
Transamerica Short-Term Bond |
| 16 |
| |
UBS Large Cap Value |
| 11 |
| |
Van Kampen Emerging Markets Debt |
| 19 |
| |
Van Kampen Mid-Cap Growth |
| 3 |
| |
Van Kampen Small Company Growth |
| 15 |
| |
269
As of April 30, 2007, the Funds have not made any payments related to the Emeritus Plan.
Brokerage commissions: Brokerage commissions incurred on security transactions placed with an affiliate of the adviser for the six months ended April 30, 2007 were as follows:
Fund |
| Brokerage commissions |
| |
BlackRock Global Allocation |
| $ | 17 |
|
Neuberger Berman International |
| 20 |
| |
UBS Large Cap Value |
| 3 |
| |
UBS Dynamic Alpha |
| Less than $1 |
| |
Van Kampen Small Company Growth |
| Less than $1 |
| |
Funds not listed in the above table did not incurr brokerage commissions.
NOTE 3. INVESTMENT TRANSACTIONS
The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the period ended April 30, 2007 and for the period from inception through April 30, 2007, as applicable, were as follows:
|
| Purchase of Securities |
| Proceeds of Sales |
| ||||||||
Fund |
| Long |
| U.S. |
| Long Term |
| U.S. |
| ||||
AllianceBernstein International Value |
| $ | 64,684 |
| $ | — |
| $ | 81,560 |
| $ | — |
|
Bjurman, Barry Micro Emerging Growth |
| 43,575 |
| — |
| 32,109 |
| — |
| ||||
BlackRock Global Allocation |
| 89,677 |
| 24,426 |
| 126,178 |
| 25,713 |
| ||||
BlackRock Large Cap Value |
| 197,778 |
| — |
| 180,134 |
| — |
| ||||
BlackRock Natural Resources |
| 97,685 |
| — |
| 2,175 |
| — |
| ||||
Evergreen International Small Cap |
| 225,492 |
| — |
| 252,722 |
| — |
| ||||
Federated Market Opportunity |
| 8,487 |
| 4,015 |
| 17,681 |
| 23,715 |
| ||||
JPMorgan International Bond |
| 308,884 |
| — |
| 307,696 |
| — |
| ||||
JPMorgan Mid Cap Value |
| 54,460 |
| — |
| 56,663 |
| — |
| ||||
Loomis Sayles Bond |
| 142,125 |
| 28 |
| 8,550 |
| — |
| ||||
Marsico International Growth |
| 269,312 |
| — |
| 326,625 |
| — |
| ||||
Mellon Market Neutral Strategy |
| 186,960 |
| — |
| 187,266 |
| — |
| ||||
Neuberger Berman International |
| 120,417 |
| — |
| 157,569 |
| — |
| ||||
Oppenheimer Developing Markets |
| 114,893 |
| — |
| 86,532 |
| — |
| ||||
Oppenheimer Small- & Mid-Cap Value |
| 86,517 |
| — |
| 62,361 |
| — |
| ||||
Transamerica Short-Term Bond |
| 161,860 |
| 140,644 |
| 84,517 |
| 82,842 |
| ||||
UBS Dynamic Alpha |
| 198,109 |
| — |
| 14,406 |
| — |
| ||||
UBS Large Cap Value |
| 597,769 |
| — |
| 94,739 |
| — |
| ||||
Van Kampen Emerging Markets Debt |
| 117,683 |
| — |
| 211,797 |
| — |
| ||||
Van Kampen Mid-Cap Growth |
| 34,027 |
| — |
| 35,004 |
| — |
| ||||
Van Kampen Small Company Growth |
| 88,551 |
| — |
| 242,686 |
| — |
| ||||
270
NOTE 4. 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. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP. These differences are primarily due to differing treatment for items including, but not limited to, wash sales and foreign currency transactions.
The capital loss carryforwards are available to offset future realized capital gains through the periods listed:
Fund |
| Capital Loss |
| Available through |
| |
Bjurman, Barry Micro Emerging Growth |
| $ | 804 |
| 10/31/2014 |
|
|
|
|
|
|
| |
Federated Market Opportunity |
| 3,741 |
| 10/31/2014 |
| |
|
|
|
|
|
| |
JPMorgan International Bond |
| 2,471 |
| 10/31/2014 |
| |
|
|
|
|
|
| |
Transamerica Short-Term Bond |
| 658 |
| 10/31/2013 |
| |
| 1,786 |
| 10/31/2014 |
| ||
|
|
|
|
|
| |
Van Kampen Mid-Cap Growth |
| 1,079 |
| 10/31/2014 |
| |
Funds not listed in the above table did not have capital loss carryforwards.
NOTE 5. REGULATORY PROCEEDINGS
There continues to be significant federal and state regulatory activity relating to financial services companies, particularly mutual fund companies and their investment advisers. As part of an ongoing investigation regarding potential market timing, recordkeeping and trading compliance issues and matters affecting the Funds’ investment adviser, TFAI, and certain affiliates and former employees of TFAI, the SEC staff has indicated that it is likely to take some action against TFAI and certain of its affiliates at the conclusion of the investigation. The potential timing and the scope of any such action is difficult to predict. Although the impact of any action brought against TFAI and/or its affiliates is difficult to assess at the present time, the Funds currently believe that the likelihood that any such action will have a material adverse impact on them is remote. It is important to note that the Funds are not aware of any allegation of wrongdoing against them and their Board at the time this semi-annual report is printed. Although it is not anticipated that these developments will have an adverse impact on the Funds, there can be no assurance at this time. TFAI and its affiliates are actively working with the SEC in regard to this matter; however, the exact resolution cannot be determined at this time. TFAI will take such actions that it deems necessary or appropriate to continue providing management services to the Funds and to bring all matters to an appropriate conclusion.
TFAI and/or its affiliates, and not the Funds, will bear the costs regarding these regulatory matters.
271
NOTE 6. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In July 2006, the Financial Accounting Standards Board (“FASB”) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”), an interpretation of FASB Statement No. 109. FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the accounting and disclosure of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is effective during the first required financial reporting period for fiscal years beginning after December 15, 2006. Management is evaluating the anticipated impact, if any, that FIN 48 will have on the Fund upon adoption, which, pursuant to a delay granted by the U.S. Securities and Exchange Commission, is expected to be on the last business day of the Funds’ fiscal year, October 31, 2007.
In September 2006, FASB issued its new Standard No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 is designed to unify guidance for the measurement of fair value of all types of assets, including financial instruments, and certain liabilities, throughout a number of accounting standards. FAS 157 also establishes a hierarchy for measuring fair value in generally accepted accounting principles and expands financial statement disclosures about fair value measurements that are relevant to mutual funds. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and earlier application is permitted. Management is evaluating the application of FAS 157 to the Fund, and the significance of its impact, if any, on the Fund’s financial statements.
272
TA IDEX ALLIANCEBERNSTEIN INTERNATIONAL VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX AllianceBernstein International Value (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Alliance Capital Management, L.P. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, the professional qualifications and experience of the Sub-Adviser’s portfolio management team, and the Fund’s investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for the period ended June 30, 2006. The Trustees
273
noted that TFAI and the Sub-Adviser generally had achieved very strong performance, noting favorably the Fund’s superior performance, relative to comparable funds, since inception. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is very satisfactory in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are highly competitive with industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund, and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements in particular. The Board also noted that the Sub-Adviser is participating in a brokerage program
274
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. In addition, the Trustees determined that the administration, fund accounting and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
275
TA IDEX BLACKROCK GLOBAL ALLOCATION
INVESTMENT ADVISORY AGREEMENT - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX BlackRock Global Allocation (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) to determine whether the agreement should be renewed for a one-year period. The Board noted that it had recently approved an Investment Sub-Advisory Agreement between TFAI and BlackRock Investment Management, LLC (“BlackRock”) to appoint BlackRock to replace Fund Asset Management, L.P., doing business as Mercury Advisors (“Mercury”), as sub-adviser to the Fund for an initial two-year period at a meeting of the Board held on October 3 and 4, 2006. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and BlackRock such information as they deemed reasonably necessary to evaluate the proposed agreement. The Trustees also carefully considered the information that they had received throughout the year from TFAI, BlackRock and Mercury 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, 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 believe, in light of the legal advice furnished to them by IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI, BlackRock and Mercury to the Fund in the past, as well as the services anticipated to be provided by TFAI and BlackRock in the future. The Board concluded that TFAI is capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past; TFAI’s management capabilities demonstrated with respect to the portfolios it manages, including the Fund, and the experience, capability and integrity of TFAI’s senior management, financial resources and management oversight process, and the Fund’s investment performance. The Trustees also concluded that TFAI proposed to 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 industry and investor needs, and that TFAI’s future obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner. In addition, the Board requested frequent updates from Management with respect to the recent sub-adviser change of name and control from Mercury to BlackRock to ensure continued competitive performance, fees and expense levels.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for the period since the Fund’s inception on December 6, 2005 until June 30, 2006. The Trustees concluded that TFAI and Mercury had achieved superior performance, favorably noted
276
that the Fund’s performance ranked in the first quintile compared to comparable funds. On the basis of its assessment of the nature, extent and quality of the investment advisory services to be provided or procured by TFAI, the Board concluded that TFAI is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that performance records of TFAI indicate that its management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to IDEX as a whole. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund generally are highly competitive with industry averages, noting the Fund’s relatively low fees and expenses compared to those of its peers. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, as well as the entirety of TFAI’s and its affiliates’ service relationship with IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund and TFAI and its affiliates.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory fee schedules appropriately benefits investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI, and fees payable by TFAI to BlackRock, in the future.
Benefits (such as soft dollars) to TFAI or its affiliates from their relationship with the Fund. The Board concluded that other benefits derived by TFAI and its affiliates from their relationships with the Fund are reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
277
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of BlackRock. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
278
TA IDEX BLACKROCK LARGE CAP VALUE
INVESTMENT ADVISORY AGREEMENT - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX BlackRock Large Cap Value (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) to determine whether the agreement should be renewed for a one-year period. The Board noted that it had recently approved an Investment Sub-Advisory Agreement between TFAI and BlackRock Investment Management, LLC (“BlackRock”) to appoint BlackRock to replace Fund Asset Management, L.P., doing business as Mercury Advisors (“Mercury”), as sub-adviser to the Fund for an initial two-year period at a meeting of the Board held on October 3 and 4, 2006. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and BlackRock such information as they deemed reasonably necessary to evaluate the proposed agreement. The Trustees also carefully considered the information that they had received throughout the year from TFAI, BlackRock and Mercury 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, 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 believe, in light of the legal advice furnished to them by IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI, BlackRock and Mercury to the Fund in the past, as well as the services anticipated to be provided by TFAI and BlackRock in the future. The Board concluded that TFAI is capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past; TFAI’s management capabilities demonstrated with respect to the portfolios it manages, including the Fund, and the experience, capability and integrity of TFAI’s senior management, financial resources and management oversight process, and the Fund’s investment performance. The Trustees also concluded that TFAI proposed to 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 industry and investor needs, and that TFAI’s future obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner. In addition, the Board requested frequent updates from Management with respect to the recent sub-adviser change of name and control from Mercury to BlackRock to ensure continued competitive performance, fees and expense levels.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for the period since the Fund’s inception on March 1, 2005 until June 30, 2006. The Trustees concluded that TFAI and Mercury had achieved superior performance, favorably noted
279
that the Fund’s performance ranked in the first quintile compared to comparable funds. On the basis of its assessment of the nature, extent and quality of the investment advisory services to be provided or procured by TFAI, the Board concluded that TFAI is capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that performance records of TFAI indicate that its management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to IDEX as a whole. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. The Trustees noted that, for purposes of calculating the investment advisory fees payable to BlackRock, average daily net assets would be determined on a combined basis with the same named fund advised by TFAI and sub-advised by BlackRock for AEGON/Transamerica Series Trust, another mutual fund managed by TFAI. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund generally are consistent with industry averages, noting the Fund’s relatively low fees and expenses compared to those of its peers. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, as well as the entirety of TFAI’s and its affiliates’ service relationship with IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund and TFAI and its affiliates.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory fee schedules appropriately benefits investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI, and fees payable by TFAI to BlackRock, in the future.
Benefits (such as soft dollars) to TFAI or its affiliates from their relationship with the Fund. The Board concluded that other benefits derived by TFAI and its affiliates from their relationships with the Fund are reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such
280
services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of BlackRock. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
281
TA IDEX BLACKROCK NATURAL RESOURCES
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND APPROVAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on July 18 & 19, 2006, in approving a mandate to establish TA IDEX Mercury Natural Resources as a new series of TA IDEX, the Board reviewed and considered the proposed investment advisory agreement (the “Investment Advisory Agreement”) between TA IDEX Mercury Natural Resources and Transamerica Fund Advisors, Inc. (“TFAI”), as well as the proposed investment sub-advisory agreement of TA IDEX Mercury Natural Resources between TFAI and Fund Asset Management, LP. doing business as Mercury Advisors (“Mercury”), to determine whether the agreements should be approved for an initial two-year period. Later, in connection with a corporate transaction that ultimately resulted in the merger of Mercury into BlackRock Investment Management, LLC (“BlackRock”), at a meeting of the Board of Trustees of TA IDEX held on October 3 & 4, 2006, the Board agreed to rename TA IDEX Mercury Natural Resources, which was then not yet in existence, to TA IDEX BlackRock Natural Resources (the “Fund”). Furthermore, at this meeting, the Board, including the independent members of the Board, also reconsidered and re-approved the proposed investment sub-advisory agreement, which had then been revised to reflect the replacement of Mercury by BlackRock to serve as the Fund’s sub-adviser, for an initial two-year period. (Hereinafter, both the initial and revised versions of the proposed investment sub-advisory agreement are collectively referred to as the “Investment Sub-Advisory Agreement”, and Mercury and BlackRock are collectively referred to as the “Sub-Adviser”.) Following their review and consideration at these meetings, the Trustees determined that the proposed Investment Advisory Agreement and the proposed Investment 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 Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements, including, information about fees and performance of comparable funds managed by the Sub-Adviser. In considering the proposed approval 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 to be provided. The Board considered the nature and quality of the services expected to be provided by TFAI and the Sub-Adviser. They concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TFAI for other series within the fund complex and the Sub-Adviser’s management capabilities demonstrated with respect to other funds it manages and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Board noted that the merger of Mercury and BlackRock would result in a larger advisory firm, which may give the portfolio management team even more resources to manage the Fund. The Trustees determined that TFAI and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the
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proposed 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 examined the performance of a fund managed by the Sub-Adviser with investment objectives and strategies comparable to those of the Fund. The Board noted that the comparable fund and other funds managed by the Sub-Adviser have generally performed well and have generated investor interest. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Board concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies and competitive with other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records for other funds (or accounts) indicate that their management of the Fund is likely to benefit the Fund and its shareholders.
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 TFAI’s costs of procuring portfolio management services, as well as the costs of its provision of administration, transfer agency, fund accounting and other services, to the Fund and other funds within the fund complex. Based on such information and the proposed management and sub-advisory fees for the Fund, the Trustees determined that the proposed management fees of the Fund generally are consistent with industry averages and are appropriate in light of the services expected to be provided or procured, the management fees and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser. The Board also took note of the costs involved in establishing a new fund and acknowledged that the Fund is being added as an investment option only for funds of funds and certain institutional investors. In making these observations and determinations, the Board reviewed comparative information provided by Lipper, Inc. and Strategic Insight Simfund.
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 TFAI’s pricing strategy and the proposed advisory fee breakpoints as detailed in the materials provided, and noted each fee breakpoint with respect to the various asset levels achieved by the Fund. The Board concluded that the proposed fees and breakpoints appropriately 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 concluded that the Fund’s management fees appropriately reflect the Fund’s anticipated size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. The Board also noted that, in the future, it would have the opportunity to periodically re-examine whether the Fund has achieved economies of scale and the appropriateness of management fees payable to TFAI and fees payable by TFAI to the Sub-Adviser.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TFAI, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TFAI would not realize soft dollar benefits from its
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relationship with the Fund, and that the Sub-Adviser would engage in soft-dollar arrangements consistent with applicable law and “best execution” requirements. In addition, the Trustees noted that the Sub-Adviser will be asked to participate in a brokerage program pursuant to which a certain portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, which could limit the amount of “soft-dollar” arrangements the Sub-Adviser may engage in with respect to the Fund’s portfolio brokerage transactions.
Other considerations. The Board considered the investment objective of the Fund and its investment strategies and determined that the Fund would enhance the investment options for the funds of funds investing in the Fund. The Board determined that TFAI 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 TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TFAI’s expense limitation and fee waiver arrangements with the Fund which may result in TFAI waiving a substantial amount of management fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. In approving the Fund, the Board also considered the high quality of the Sub-Adviser’s portfolio management personnel who will manage the Fund under the Sub-Advisory Agreement, and their overall portfolio management capabilities. The Board determined that the Sub-Adviser, too, has made substantial commitments to the recruitment and retention of high quality personnel, and maintain the financial and operational resources reasonably necessary to manage the Fund.
284
TA IDEX EVERGREEN INTERNATIONAL SMALL CAP
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Evergreen International Small Cap (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Evergreen Investment Management Company, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, the professional qualifications and experience of the Sub-Adviser’s portfolio management team, and the Fund’s investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined both the short-term and longer-term performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for the one-year period ended June 30, 2006. The
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Trustees concluded that TFAI and the Sub-Adviser generally had achieved relatively strong performance, favorably noting the Fund’s superior performance, relative to comparable funds, over the past one-year period. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are very competitive with industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of an asset-based breakpoint in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund, and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements in particular. The Board also noted that the Sub-Adviser is participating in a brokerage program
286
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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
287
TA IDEX FEDERATED MARKET OPPORTUNITY
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Federated Market Opportunity (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Federated Equity Management Company of Pennsylvania (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper since its inception until June 30, 2006. The Trustees concluded that TFAI and the Sub-
288
Adviser had achieved acceptable performance, noting the Fund’s competitive performance, relative to comparable funds, since inception. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are highly competitive with industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of an asset-based breakpoint in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund, and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements in particular. 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
289
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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
290
TA IDEX JPMORGAN INTERNATIONAL BOND
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX JPMorgan International Bond (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and J.P. Morgan Investment Management, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper since its inception on December 6, 2005 until June 30, 2006. The Trustees concluded that
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TFAI and the Sub-Adviser had achieved average performance, relative to comparable funds, since the Fund’s inception. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are highly competitive with industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. The Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes “soft dollar” benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
292
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
293
TA IDEX JPMORGAN MID CAP VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX JPMorgan Mid Cap Value (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and J.P. Morgan Investment Management, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, the professional qualifications and experience of the Sub-Adviser’s portfolio management team, and the Fund’s investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper since its inception on March 1, 2005 until June 30, 2006. The Trustees concluded that
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TFAI and the Sub-Adviser had achieved highly competitive performance, favorably noting the Fund’s above median performance, relative to its peers, since the Fund’s inception. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are highly competitive with industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of an asset-based breakpoint in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes “soft dollar” benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
295
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
296
TA IDEX LOOMIS SAYLES BOND
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND APPROVAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on July 18 & 19, 2006, the Board reviewed and considered the proposed Investment Advisory Agreement between TA IDEX Loomis Sayles Bond (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”), as well as the proposed Investment Sub-Advisory Agreement of the Fund between TFAI and Loomis, Sayles & Company, L.P. (the “Sub-Adviser”), to determine whether the agreements should be approved for an initial two-year period. Following their review and consideration, the Trustees determined that the proposed Investment Advisory Agreement and the proposed Investment 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 Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. In considering the proposed approval 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 to be provided. The Board considered the nature and quality of the services expected to be provided by TFAI and the Sub-Adviser. They concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TFAI for other series within the fund complex and the Sub-Adviser’s management capabilities demonstrated with respect to other funds it manages and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees determined that TFAI and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the proposed 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 examined the performance of a fund managed by the Sub-Adviser with investment objectives and strategies comparable to those of the Fund. The Board noted that the comparable fund and other funds managed by the Sub-Adviser have generally performed well and have generated investor interest. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Board concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies and competitive with other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records for other funds (or accounts) indicate that their management of the Fund is likely to benefit the Fund and its shareholders.
297
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 TFAI’s costs of procuring portfolio management services, as well as the costs of its provision of administration, transfer agency, fund accounting and other services, to the Fund and other funds within the fund complex. Based on such information and the proposed management and sub-advisory fees for the Fund, the Trustees determined that the proposed management fees of the Fund generally are consistent with industry averages and are appropriate in light of the services expected to be provided or procured, the management fees and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser. The Board also took note of the costs involved in establishing a new fund and acknowledged that the Fund is being added as an investment option only for funds of funds and certain institutional investors. In making these observations and determinations, the Board reviewed comparative information provided by Lipper, Inc. and Strategic Insight Simfund.
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 TFAI’s pricing strategy and the proposed advisory fee breakpoints as detailed in the materials provided, and noted each fee breakpoint with respect to the various asset levels achieved by the Fund. The Board concluded that the proposed fees and breakpoints appropriately 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 concluded that the Fund’s management fees appropriately reflect the Fund’s anticipated size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. The Board also noted that, in the future, it would have the opportunity to periodically re-examine whether the Fund has achieved economies of scale and the appropriateness of management fees payable to TFAI and fees payable by TFAI to the Sub-Adviser.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TFAI, its affiliates, and the Sub-Adviser from their relationships with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions are expected to be reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that neither TFAI or the Sub-Adviser would realize soft dollar benefits from its relationship with the Fund.
Other considerations. The Board considered the investment objective of the Fund and its investment strategies and determined that the Fund would enhance the investment options for the funds of funds investing in the Fund. The Board determined that TFAI 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 TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TFAI’s expense limitation and fee waiver arrangements with the Fund which may result in TFAI waiving a substantial amount of management fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or
298
provide for desirable investor services. In approving the Fund, the Board also considered the high quality of the Sub-Adviser’s portfolio management personnel who will manage the Fund under the Sub-Advisory Agreement, and their overall portfolio management capabilities. The Board determined that the Sub-Adviser, too, has made substantial commitments to the recruitment and retention of high quality personnel, and maintain the financial and operational resources reasonably necessary to manage the Fund.
299
TA IDEX MARSICO INTERNATIONAL GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Marsico International Growth (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Columbia Management Advisors, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. The Board’s vote was unanimous, with the exception of a Trustee who abstained from voting on either Agreement because of prior business associations with the Sub-Adviser’s corporate parent. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, the professional qualifications and experience of the Sub-Adviser’s portfolio management team, and the Fund’s investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
300
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper for various trailing periods ended June 30, 2006. The Trustees noted that TFAI and the Sub-Adviser generally had achieved highly competitive performance, noting favorably the Fund’s superior performance over the past one-year period. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are competitive with industry averages, while also noting relatively high portfolio turnover rates and trading costs. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not
301
realize “soft dollar” benefits from its relationship with the Fund, and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements in particular. In addition, the Trustees determined that the administration, fund accounting and other fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
302
TA IDEX MELLON MARKET NEUTRAL STRATEGY
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND APPROVAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on July 18 & 19, 2006, the Board reviewed and considered the proposed Investment Advisory Agreement between TA IDEX Mellon Market Neutral Strategy (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”), as well as the proposed Investment Sub-Advisory Agreement of the Fund between TFAI and Franklin Portfolio Associates, LLC (the “Sub-Adviser”), to determine whether the agreements should be approved for an initial two-year period. Following their review and consideration, the Trustees determined that the proposed Investment Advisory Agreement and the proposed Investment 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 Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. In considering the proposed approval 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 to be provided. The Board considered the nature and quality of the services expected to be provided by TFAI and the Sub-Adviser. They concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TFAI for other series within the fund complex and the Sub-Adviser’s management capabilities demonstrated with respect to other funds it manages and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees determined that TFAI and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the proposed 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 examined the performance of a fund managed by the Sub-Adviser with investment objectives and strategies comparable to those of the Fund. The Board noted that the comparable fund and other funds managed by the Sub-Adviser have generally performed well and have generated investor interest. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Board concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies and competitive with other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records for other funds (or accounts) indicate that their management of the Fund is likely to benefit the Fund and its shareholders.
303
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 TFAI’s costs of procuring portfolio management services, as well as the costs of its provision of administration, transfer agency, fund accounting and other services, to the Fund and other funds within the fund complex. Based on such information and the proposed management and sub-advisory fees for the Fund, the Trustees determined that the proposed management fees of the Fund generally are consistent with industry averages and are appropriate in light of the services expected to be provided or procured, the management fees and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser. The Board also took note of the costs involved in establishing a new fund and acknowledged that the Fund is being added as an investment option only for funds of funds and certain institutional investors. In making these observations and determinations, the Board reviewed comparative information provided by Lipper, Inc. and Strategic Insight Simfund.
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 TFAI’s pricing strategy. The Board noted that while the Fund does not offer any fee breakpoints as the Fund’s assets grow, the proposed management fees are already under the median of the fees for the Fund’s peers. The Board concluded that the Fund’s management fees appropriately reflect the Fund’s anticipated size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. The Board also noted that, in the future, it would have the opportunity to periodically re-examine the appropriateness of management fees payable to TFAI and fees payable by TFAI to the Sub-Adviser.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TFAI, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TFAI would not realize soft dollar benefits from its relationship with the Fund, and that the Sub-Adviser would engage in soft-dollar arrangements consistent with applicable law and “best execution” requirements. In addition, the Trustees noted that the Sub-Adviser will be asked to participate in a brokerage program pursuant to which a certain portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, which could limit the amount of “soft-dollar” arrangements the Sub-Adviser may engage in with respect to the Fund’s portfolio brokerage transactions.
Other considerations. The Board considered the investment objective of the Fund and its investment strategies and determined that the Fund would enhance the investment options for the funds of funds investing in the Fund. The Board determined that TFAI 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 TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI has made a significant entrepreneurial commitment to the management and success of the Fund, reflected by TFAI’s expense limitation and fee waiver arrangements with the Fund which may result in TFAI waiving a substantial amount of management fees for the benefit of shareholders, and the contributions
304
that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. In approving the Fund, the Board also considered the high quality of the Sub-Adviser’s portfolio management personnel who will manage the Fund under the Sub-Advisory Agreement, and their overall portfolio management capabilities. The Board determined that the Sub-Adviser, too, has made substantial commitments to the recruitment and retention of high quality personnel, and maintain the financial and operational resources reasonably necessary to manage the Fund.
305
TA IDEX NEUBERGER BERMAN INTERNATIONAL
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Neuberger Berman International (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Neuberger Berman Management, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, the professional qualifications and experience of the Sub-Adviser’s portfolio management team, and the Fund’s investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, since its inception in December 2005 until June 30, 2006. The Trustees concluded that
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TFAI and the Sub-Adviser generally had achieved strong investment performance, favorably noting that the performance of the Fund generally had been superior relative to its peers since its inception, while also noting that, because the Fund was established on December 6, 2005, there was no longer-term performance information available to review. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund generally are lower than industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory and sub-advisory fee schedules appropriately benefits investors by permitting potential economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI and the Sub-Adviser, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including “soft dollar” benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements
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in particular. The Board also noted that the Sub-Adviser is participating in a brokerage recapture 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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TA IDEX OPPENHEIMER DEVELOPING MARKETS
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Oppenheimer Developing Markets (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and OppenheimerFunds, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, since its inception in December 2005 until June 30, 2006. The Trustees noted that the
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performance of the Fund fell below the median relative to its peers since its inception, and also noted that, because the Fund was established on December 6, 2005, there was no longer-term performance available to review. The Trustees determined that these performance results may be, in part, the result of the time when the series was launched and the recent unusual volatility in emerging markets, among other reasons. The Trustees noted that the long-term performance of another mutual fund managed by the sub-adviser according to a similar investment program is competitive with the performance of comparable funds. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. The Trustees noted that, although the contractual management fees are above industry median, the Fund’s overall expense ratio generally is competitive compared with peer funds. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory and sub-advisory fee schedules appropriately benefits investors by permitting potential economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI and the Sub-Adviser, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including “soft dollar” benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the
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best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements in particular. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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TA IDEX TRANSAMERICA SHORT-TERM BOND
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Transamerica Short-Term Bond (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Transamerica Investment Management, LLC (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the funds they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, and TFAI’s management oversight process, the professional qualifications and experience of the Sub-Adviser’s portfolio management team, and the Fund’s investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, since its inception in November 2004 until June 30, 2006. The Trustees noted that TFAI
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and the Sub-Adviser generally had achieved very strong investment performance over the period compared to the Fund’s peers, but also recognized that, because the Fund was established on November 8, 2004, there was no longer-term performance available to review. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and very competitive with other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses including and excluding 12b-1 distribution and service fees) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the Fund’s contractual management fees were competitive with a comparable group of its peers and the overall expense ratio of the Fund was relatively low in comparison to a comparable group of its peers. On the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ (including TIM) service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that asset-based breakpoints in the Fund’s advisory and sub-advisory fee schedules appropriately benefit investors by permitting economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI and the Sub-Adviser, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that neither TFAI nor the Sub-Adviser realizes “soft dollar” benefits from its relationship with the Fund. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality
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of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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TA IDEX UBS DYNAMIC ALPHA
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND APPROVAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on July 18 & 19, 2006, the Board reviewed and considered the proposed Investment Advisory Agreement between TA IDEX UBS Dynamic Alpha (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”), as well as the proposed Investment Sub-Advisory Agreement of the Fund between TFAI and UBS Global Asset Management (Americas) Inc. (the “Sub-Adviser”), to determine whether the agreements should be approved for an initial two-year period. Following their review and consideration, the Trustees determined that the proposed Investment Advisory Agreement and the proposed Investment 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 Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements, including information about fees and performance of comparable funds managed by the Sub-Adviser. In considering the proposed approval 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 to be provided. The Board considered the nature and quality of the services expected to be provided by TFAI and the Sub-Adviser. They concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past by TFAI for other series within the fund complex and the Sub-Adviser’s management capabilities demonstrated with respect to other funds it manages and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees determined that TFAI and the Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the proposed 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 examined the performance of funds managed by the Sub-Adviser with investment objectives and strategies comparable to those of the Fund. The Board noted that those and other funds managed by the Sub-Adviser have generally performed well and have generated investor interest. On the basis of the Board’s assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Board concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s proposed investment objectives, policies and strategies and competitive with other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records for other funds (or accounts) indicate that their management of the Fund is likely to benefit the Fund and its shareholders.
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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 TFAI’s costs of procuring portfolio management services, as well as the costs of its provision of administration, transfer agency, fund accounting and other services, to the Fund and other funds within the fund complex. Based on such information and the proposed management and sub-advisory fees for the Fund, the Trustees determined that the proposed management fees of the Fund generally are consistent with industry averages and are appropriate in light of the services expected to be provided or procured, the management fees and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser. The Board also took note of the costs involved in establishing a new fund and acknowledged that the Fund is being added as an investment option only for funds of funds and certain institutional investors. In making these observations and determinations, the Board reviewed comparative information provided by Lipper, Inc. and Strategic Insight Simfund.
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 TFAI’s pricing strategy and the proposed advisory fee breakpoints as detailed in the materials provided, and noted each fee breakpoint with respect to the various asset levels achieved by the Fund. The Board concluded that the proposed fees and breakpoints appropriately 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 concluded that the Fund’s management fees appropriately reflect the Fund’s anticipated size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. The Board also noted that, in the future, it would have the opportunity to periodically re-examine whether the Fund has achieved economies of scale and the appropriateness of management fees payable to TFAI and fees payable by TFAI to the Sub-Adviser.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board concluded that other benefits anticipated to be derived by TFAI, its affiliates, and the Sub-Adviser from their relationships with the Fund are expected to be reasonable and fair, and consistent with industry practice and the best interests of the Fund and its shareholders. The Trustees noted that TFAI would not realize soft dollar benefits from its relationship with the Fund, and that the Sub-Adviser would engage in soft-dollar arrangements consistent with applicable law and “best execution” requirements. In addition, the Trustees noted that the Sub-Adviser will be asked to participate in a brokerage program pursuant to which a certain portion of brokerage commissions paid by the Fund is recaptured for the benefit of the Fund and its shareholders, which could limit the amount of “soft-dollar” arrangements the Sub-Adviser may engage in with respect to the Fund’s portfolio brokerage transactions.
Other considerations. The Board considered the investment objective of the Fund and its investment strategies and determined that the Fund would enhance the investment options for the funds of funds investing in the Fund. The Board determined that TFAI 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 TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI has made a significant
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entrepreneurial commitment to the management and success of the Fund, reflected by TFAI’s expense limitation and fee waiver arrangements with the Fund which may result in TFAI waiving a substantial amount of management fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services. In approving the Fund, the Board also considered the high quality of the Sub-Adviser’s portfolio management personnel who will manage the Fund under the Sub-Advisory Agreement, and their overall portfolio management capabilities. The Board determined that the Sub-Adviser, too, has made substantial commitments to the recruitment and retention of high quality personnel, and maintain the financial and operational resources reasonably necessary to manage the Fund.
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TA IDEX UBS LARGE CAP VALUE
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX UBS Large Cap Value (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and UBS Global Asset Management (Americas) Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by Management. In considering the proposed continuation of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, the professional qualifications and experience of the Sub-Adviser’s portfolio management team, and the Fund’s investment performance. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper since its inception in November 2004 until June 30, 2006. The Trustees concluded that
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TFAI and the Sub-Adviser generally had achieved strong investment performance over the period, noting that the Fund’s performance ranked in the second quintile compared to its peers. However, the Board noted that the Fund is a relatively new series and decided to closely monitor its future performance. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the management fees and overall expense ratio of the Fund are approximately in line with its peers, favorably noting lower sub-advisory fees negotiated in 2006. On the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory fee schedule appropriately benefits investors by permitting economies of scale in the form of lower management fees as the level of assets grows. The Board noted that the sub-advisory fee breakpoints were recently revised downward. The Board noted that certain classes of shares of the Fund are closed to new investors and investments, except that it may continue selling its shares to TA IDEX funds of funds and other institutional investors, which may limit the Fund’s ability to realize economies of scale. The Board assessed the current asset levels of the Fund and its long-term development strategy. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including “soft dollar” benefits that the Sub-Adviser may receive. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their
319
relationships with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund, and that the Sub-Adviser participates 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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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TA IDEX VAN KAMPEN EMERGING MARKETS DEBT
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Van Kampen Emerging Markets Debt (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Morgan Stanley Investment Management, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, since its inception in November 2004 until June 30, 2006. The Trustees noted that TFAI
321
and the Sub-Adviser generally had achieved below-median investment performance over the one-year period. However, the Board noted that, in light of the Fund’s recent inception, more time is needed to allow the Fund to develop a more meaningful performance track record, and the Board noted that a new management fee schedule which could result in lower operating expenses and improved performance. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Board favorably noted the Fund’s new pricing schedule, which lowers the effective sub-advisory fee rate paid by TFAI with respect to the Fund, allowing TFAI to reduce its advisory fee to the benefit of Fund shareholders. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. The Board noted that, although management fees were high, the overall expense ratio of the Fund was generally consistent and competitive with industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of asset-based breakpoints in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board noted the recent reduction of the Fund’s management fee and concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the
322
best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund, and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements in particular. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
323
TA IDEX VAN KAMPEN SMALL COMPANY GROWTH
INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS - REVIEW AND RENEWAL (unaudited)
At a meeting of the Board of Trustees of Transamerica IDEX Mutual Funds (“TA IDEX”) held on November 7, 2006, the Board reviewed and considered the Investment Advisory Agreement between TA IDEX Van Kampen Small Company Growth (the “Fund”) and Transamerica Fund Advisors, Inc. (“TFAI”) as well as the Investment Sub-Advisory Agreement of the Fund between TFAI and Morgan Stanley Investment Management, Inc. (the “Sub-Adviser”), to determine whether the agreements should be renewed for a one-year period. Following their review and consideration, the Trustees determined that the Investment Advisory Agreement and the Investment Sub-Advisory Agreement will enable shareholders of the Fund to obtain high quality services at a cost that is appropriate, reasonable, and in the best interests of its shareholders. The Board, including the independent members of the Board, unanimously approved the renewal of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement. In reaching their decision, the Trustees requested and obtained from TFAI and the Sub-Adviser such information as they deemed reasonably necessary to evaluate the proposed agreements. The Trustees also carefully considered the information that they had received throughout the year from TFAI and the Sub-Adviser (such as in-person presentations by 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, fee and expense information, and profitability data prepared by management. In considering the proposed continuation of the Investment Advisory Agreement and the Investment Sub-Advisory Agreement, the Trustees evaluated a number of considerations that they believe, in light of the legal advice furnished to them by TA IDEX counsel and 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 service to be provided. The Board considered the nature and quality of the services provided by TFAI and the Sub-Adviser to the Fund in the past, as well as the services anticipated to be provided in the future. The Board concluded that TFAI and the Sub-Adviser are capable of providing high quality services to the Fund, as indicated by the nature and quality of services provided in the past, TFAI’s and the Sub-Adviser’s management capabilities demonstrated with respect to the portfolios they manage, including the Fund, and the experience, capability and integrity of TFAI’s senior management, the financial resources of TFAI and the Sub-Adviser, TFAI’s management oversight process, and the professional qualifications and experience of the Sub-Adviser’s portfolio management team. The Trustees also concluded that TFAI and the Sub-Adviser proposed to provide investment and related services that were of the same quality and quantity as services provided to the Fund in the past, and that these services are appropriate in scope and extent in light of the Fund’s operations, the competitive landscape of the investment company industry and investor needs, and that TFAI’s and the Sub-Adviser’s obligations will remain substantially the same. The Trustees also considered the nature and quality of other services provided by TFAI to the Fund, such as compliance and legal services, and determined that such services were necessary for the Fund’s operations and performed in a competent, professional manner.
The investment performance of the Fund. The Board examined the performance of the Fund, including relative performance against a peer group of comparable mutual funds as prepared by Lipper, since its inception in November 2004 until June 30, 2006. The Trustees noted that TFAI
324
and the Sub-Adviser generally had achieved below-median investment performance. However, the Board noted that, in light of the Fund’s recent inception, more time is needed to evaluate the ability of the Fund to develop a more meaningful performance track record. On the basis of the Trustees’ assessment of the nature, extent and quality of advisory services to be provided or procured by TFAI and the Sub-Adviser, the Trustees concluded that TFAI and the Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the Fund’s investment objective, policies and strategies and competitive with many other investment companies, and also determined that TFAI’s and the Sub-Adviser’s performance records indicate that their continued management is likely to benefit the Fund and its shareholders.
The cost of advisory services provided and the level of profitability. The Board reviewed profitability information regarding TFAI’s costs of procuring portfolio management services, as well as the costs of provision of administration, fund accounting and other services, to the Fund and to TA IDEX as a whole by TFAI and its affiliates. The Board carefully considered revenues earned and expenses incurred by TFAI in managing the Fund. The Trustees reviewed data from Lipper that compared the Fund’s management fees (including management fees at various asset levels), other fees and expenses (including total expenses) and portfolio turnover rate against a peer group of comparable mutual funds. The Board also carefully considered TFAI’s pricing strategy. Based on such information, the Trustees determined that the overall expense ratio of the Fund was highly competitive with industry averages. In addition, on the basis of the Board’s review of the management fees to be charged by TFAI for investment advisory and related services, TFAI profitability information (derived from TFAI’s audited financial statements), TFAI’s estimated management income resulting from its management of the Fund, the estimated margin of the Sub-Adviser, as well as the entirety of TFAI’s and its affiliates’ service relationship with TA IDEX, the Board concluded that the level of investment management fees and other service fees, as well as TFAI’s and the Sub-Adviser’s profitability, are appropriate in light of the services provided, the management fees and overall expense ratios of comparable investment companies and the anticipated profitability of the relationship between the Fund, TFAI and its affiliates, and the Sub-Adviser.
Whether fee levels reflect economies of scale and the extent to which economies of scale would be realized as the Fund grows. The Board concluded that the inclusion of an asset-based breakpoint in the Fund’s advisory fee schedule appropriately benefits investors by realizing economies of scale in the form of lower management fees as the level of assets grows. In addition, the Board concluded that the Fund’s management fees appropriately reflect the Fund’s current size, the current economic environment for TFAI, the competitive nature of the investment company market, and TFAI’s pricing strategy. 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 TFAI and fees payable by TFAI to the Sub-Adviser, in the future.
Benefits (such as soft dollars) to TFAI, its affiliates, or the Sub-Adviser from their relationship with the Fund. The Board noted that it receives quarterly reports on the Sub-Adviser’s brokerage practices, including soft-dollar benefits it receives. The Board concluded that benefits derived by TFAI, its affiliates, and the Sub-Adviser from their relationship with the Fund, including “soft dollar” benefits (if any) in connection with brokerage transactions and distribution/service fees, are reasonable and fair, and are consistent with industry practice and the best interests of the Fund and its shareholders. In this regard, the Board noted that TFAI does not realize “soft dollar” benefits from its relationship with the Fund, and that the Sub-Adviser’s “soft dollar” arrangements are consistent with applicable law, including “best execution” requirements in particular. The Board also noted that the Sub-Adviser is participating in a brokerage program
325
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. In addition, the Trustees determined that the administration and fund accounting fees paid by the Fund to affiliates of TFAI are reasonable, fair and in the best interests of shareholders in light of the nature and quality of the services provided, the associated costs to these affiliates of providing the services, the impact of the costs of such services on the Fund’s overall operating expenses, and the necessity of the services for the Fund’s operations.
Other considerations. The Board determined that TFAI is committed 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 program in place by TFAI to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Adviser. The Trustees also determined that TFAI makes a significant entrepreneurial commitment to the management and success of the Fund, reflected by, among other things, TFAI’s expense limitation and fee waiver arrangement with the Fund, which could result in TFAI waiving a substantial amount of advisory fees for the benefit of shareholders, and the contributions that TFAI makes out of its own profits, directly or indirectly, to promote TA IDEX series and/or provide for desirable investor services.
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P.O. Box 9012
Clearwater, FL 33758-9012
www.TransamericaIDEX.com
Customer Service: 1-888-233-IDEX (4339)
Distributor: Transamerica Capital, Inc., Member NASD
Item 2: Code of Ethics.
Not applicable for semi-annual reports.
Item 3: Audit Committee Financial Expert.
Not applicable for semi-annual reports.
Item 4: Principal Accountant Fees and Services.
Not applicable for semi-annual reports.
Item 5: Audit Committee of Listed Registrants.
Not applicable for semi-annual reports.
Item 6: Schedule of Investments.
The schedules of investments are included in the Semi-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
The Registrant’s Governance/Nominating Committee’s provisions with respect to nominations of Trustees to its Board are as follows:
The Governance/Nominating Committee may consider nominations for shareholders of the Fund. Shareholders may submit for the Governance/Nominating Committee’s consideration, recommendations regarding potential nominees for service on the Board. Each eligible shareholder or shareholder group may submit no more than one nominee each calendar year. Recommendations should be submitted to the Committee in care of the Fund’s Secretary and must be received by December 31, 2007. In order for the Governance/Nominating Committee to consider shareholder submissions, the following requirements, among others, must be satisfied regarding the nominee:
· the nominee must satisfy all qualifications provided in the Fund’s organizational documents, including qualification as a possible Independent Trustee if the nominee is to serve in that capacity;
· the nominee may not be the nominating shareholder, a member of the nominating shareholder group or a member of the immediate family of the nominating shareholder or any member of the nominating shareholder group;
· neither the nominee nor any member of the nominee’s immediate family may be currently employed or employed within the year prior to the nomination by any nominating shareholder entity or entity in a nominating shareholder group;
· neither the nominee nor any immediate family member of the nominee is permitted to have accepted directly or indirectly, during the year of the election for which the nominee’s name was submitted, during the immediately preceding calendar year, or during the year when the nominee’s name was submitted, any consulting, advisory, or other compensatory fee from the nominating shareholder or any member of a nominating shareholder group;
· the nominee may not be an executive officer, director/trustee or person fulfilling similar functions of the nominating shareholder or any member of the nominating shareholder group, or of an affiliate of the nominating shareholder or any such member of the nominating shareholder group;
· the nominee may not control the nominating shareholder or any member of the nominating shareholder group (or, in the case of a holder or member that is a fund, an interested person of such holder or member as defined by Section 2(a)(19) of the 1940 Act); and
· a shareholder or shareholder group may not submit for consideration a nominee which has previously been considered by the Governance/Nominating Committee.
In addition, in order for the Governance/Nominating Committee to consider shareholder submissions, the following requirements must be satisfied regarding the shareholder or shareholder group submitting the proposed nominee: any shareholder or shareholder group submitting a proposed nominee must beneficially own, either individually or in the aggregate, more than 5% of the Fund’s (or a portfolio thereof) securities that are eligible to vote both at the time of submission of the nominee and at the time of the Board member election (each of the securities used for purposes of calculating this ownership must have been held continuously for at least two years as of the date of the nomination); in addition, such securities must continue to be held through the date of the meeting and the nominating shareholder or shareholder group must also bear the economic risk of the investment; and the nominating shareholder or shareholder group must also submit a certification which provides the number of shares which the person or group has (a) sole power to vote or direct the vote, (b) shared power to vote or direct the vote, (c) sole power to dispose or direct the disposition of such shares, and (d) shared power to dispose or direct the disposition of such shares (in addition the certification shall provide that the shares have been held continuously for at least two years).
In assessing the qualifications of a potential candidate for membership on the Board, the Governance/Nominating Committee may consider the candidate’s potential contribution to the operation of the Board and its committees, and such other factors as it may deem relevant. The Governance/Nominating Committee has oversight responsibilities and monitors certain issues, including the adviser’s and sub-advisers’ codes of ethics, shareholder communications and shareholder complaint resolution and disaster recovery policies, in consultation with the CCO and independent directors’ counsel, that affect the duties of independent members of the Board.
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 the 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 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) Not Applicable
(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 IDEX Mutual Funds |
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| (Registrant) | ||
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| By: |
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| John K. Carter | |
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| Chief Executive Officer | |
| Date: | June 26, 2007 | |
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: |
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| John K. Carter | |
| Chief Executive Officer | |
Date: | June 26, 2007 | |
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By: |
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| Joseph P. Carusone | |
| Interim Principal Financial Officer | |
Date: | June 26, 2007 |
EXHIBIT INDEX
Exhibit No. |
| Description of Exhibit |
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12(a)(2)(i) |
| Section 302 N-CSR Certification of Chief Executive Officer |
12(a)(2)(ii) |
| Section 302 N-CSR Certification of Principal Financial Officer |
12(b) |
| Section 906 N-CSR Certification of Chief Executive Officer and Principal Financial Officer |