Transamerica High Quality Bond
SCHEDULE OF INVESTMENTS
At July 31, 2022
(unaudited)
| Principal | Value | |||||||
| ASSET-BACKED SECURITIES - 27.9% | ||||||||
AmeriCredit Automobile Receivables Trust | ||||||||
Series 2018-2, Class D, | ||||||||
4.01%, 07/18/2024 | $ 3,000,000 | $ 3,000,685 | ||||||
Series 2020-2, Class D, | ||||||||
2.13%, 03/18/2026 | 1,360,000 | 1,311,231 | ||||||
Avis Budget Rental Car Funding AESOP LLC | ||||||||
Series 2018-2A, Class A, | ||||||||
4.00%, 03/20/2025 (A) | 1,425,000 | 1,417,150 | ||||||
Series 2020-1A, Class B, | ||||||||
2.68%, 08/20/2026 (A) | 520,000 | 487,763 | ||||||
CLI Funding VIII LLC | ||||||||
Series 2021-1A, Class A, | ||||||||
1.64%, 02/18/2046 (A) | 1,436,153 | 1,280,628 | ||||||
CNH Equipment Trust | ||||||||
Series 2019-C, Class B, | ||||||||
2.35%, 04/15/2027 | 1,730,000 | 1,689,691 | ||||||
Domino’s Pizza Master Issuer LLC | ||||||||
Series 2015-1A, Class A2II, | ||||||||
4.47%, 10/25/2045 (A) | 1,225,250 | 1,214,839 | ||||||
Series 2018-1A, Class A2I, | ||||||||
4.12%, 07/25/2048 (A) | 770,000 | 753,664 | ||||||
Evergreen Credit Card Trust | ||||||||
Series 2019-2, Class B, | ||||||||
2.27%, 09/15/2024 (A) | 625,000 | 623,490 | ||||||
FirstKey Homes Trust | ||||||||
Series 2020-SFR2, Class D, | ||||||||
1.97%, 10/19/2037 (A) | 2,000,000 | 1,839,605 | ||||||
Ford Credit Auto Lease Trust | ||||||||
Series 2021-A, Class C, | ||||||||
0.78%, 09/15/2025 | 1,725,000 | 1,676,757 | ||||||
Ford Credit Auto Owner Trust | ||||||||
Series 2019-1, Class A, | ||||||||
3.52%, 07/15/2030 (A) | 1,500,000 | 1,496,614 | ||||||
Series 2019-C, Class B, | ||||||||
2.13%, 05/15/2025 | 2,130,000 | 2,089,782 | ||||||
Series 2020-1, Class C, | ||||||||
2.54%, 08/15/2031 (A) | 1,135,000 | 1,068,487 | ||||||
Series 2022-A, Class C, | ||||||||
2.14%, 07/15/2029 | 1,625,000 | 1,527,609 | ||||||
GMF Floorplan Owner Revolving Trust | ||||||||
Series 2020-1, Class B, | ||||||||
1.03%, 08/15/2025 (A) | 715,000 | 691,277 | ||||||
Series 2020-2, Class C, | ||||||||
1.31%, 10/15/2025 (A) | 1,860,000 | 1,786,817 | ||||||
Hilton Grand Vacations Trust | ||||||||
Series 2018-AA, Class A, | ||||||||
3.54%, 02/25/2032 (A) | 327,744 | 324,265 | ||||||
HPEFS Equipment Trust | ||||||||
Series 2022-1A, Class C, | ||||||||
1.96%, 05/21/2029 (A) | 1,100,000 | 1,043,415 | ||||||
Hyundai Auto Receivables Trust | ||||||||
Series 2021-A, Class C, | ||||||||
1.33%, 11/15/2027 | 1,350,000 | 1,247,552 | ||||||
Master Credit Card Trust II | ||||||||
Series 2018-1A, Class C, | ||||||||
3.74%, 07/21/2024 (A) | 675,000 | 672,175 | ||||||
MVW LLC | ||||||||
Series 2019-2A, Class A, | ||||||||
2.22%, 10/20/2038 (A) | 583,885 | 554,544 | ||||||
MVW Owner Trust | ||||||||
Series 2016-1A, Class A, | ||||||||
2.25%, 12/20/2033 (A) | 96,525 | 96,115 | ||||||
| Principal | Value | |||||||
| ASSET-BACKED SECURITIES (continued) | ||||||||
MVW Owner Trust (continued) | ||||||||
Series 2017-1A, Class A, | ||||||||
2.42%, 12/20/2034 (A) | $ 220,199 | $ 216,185 | ||||||
PFS Financing Corp. | ||||||||
Series 2021-A, Class A, | ||||||||
0.71%, 04/15/2026 (A) | 900,000 | 848,110 | ||||||
Progress Residential Trust | ||||||||
Series 2019-SFR3, Class D, | ||||||||
2.87%, 09/17/2036 (A) | 1,000,000 | 974,473 | ||||||
Series 2020-SFR3, Class D, | ||||||||
1.90%, 10/17/2027 (A) | 1,355,000 | 1,257,238 | ||||||
Sierra Timeshare Receivables Funding LLC | ||||||||
Series 2018-2A, Class A, | ||||||||
3.50%, 06/20/2035 (A) | 188,361 | 186,330 | ||||||
Synchrony Credit Card Master Note Trust | ||||||||
Series 2017-2, Class C, | ||||||||
3.01%, 10/15/2025 | 640,000 | 638,142 | ||||||
Verizon Master Trust | ||||||||
Series 2021-1, Class C, | ||||||||
0.89%, 05/20/2027 | 950,000 | 890,752 | ||||||
Series 2022-1, Class C, | ||||||||
1.39%, 01/20/2027 | 1,250,000 | 1,213,721 | ||||||
Verizon Owner Trust | ||||||||
Series 2020-A, Class C, | ||||||||
2.06%, 07/22/2024 | 450,000 | 444,326 | ||||||
Series 2020-B, Class C, | ||||||||
0.83%, 02/20/2025 | 1,000,000 | 956,564 | ||||||
Volvo Financial Equipment LLC | ||||||||
Series 2019-1A, Class B, | ||||||||
3.26%, 01/16/2024 (A) | 660,000 | 659,809 | ||||||
Series 2019-2A, Class B, | ||||||||
2.28%, 11/15/2024 (A) | 930,000 | 914,308 | ||||||
World Omni Auto Receivables Trust | ||||||||
Series 2019-B, Class B, | ||||||||
2.86%, 06/16/2025 | 625,000 | 621,630 | ||||||
World Omni Select Auto Trust | ||||||||
Series 2021-A, Class C, | ||||||||
1.09%, 11/15/2027 | 1,515,000 | 1,408,816 | ||||||
|
| |||||||
Total Asset-Backed Securities |
| 39,124,559 | ||||||
|
| |||||||
| CORPORATE DEBT SECURITIES - 51.4% | ||||||||
| Airlines - 1.0% | ||||||||
United Airlines Pass-Through Trust | ||||||||
4.63%, 03/03/2024 | 1,390,824 | 1,389,689 | ||||||
|
| |||||||
| Banks - 14.5% | ||||||||
Bank of America Corp. | ||||||||
Fixed until 02/13/2025, | 2,485,000 | 2,352,348 | ||||||
Bank of Montreal | ||||||||
2.65%, 03/08/2027 (C) | 1,220,000 | 1,155,489 | ||||||
Barclays PLC | ||||||||
3-Month LIBOR + 1.38%, | 2,000,000 | 1,991,465 | ||||||
BNP Paribas SA | ||||||||
Fixed until 06/09/2025, | 1,600,000 | 1,494,572 | ||||||
DNB Bank ASA | ||||||||
Fixed until 03/28/2024, | 1,140,000 | 1,117,029 | ||||||
HSBC Holdings PLC | ||||||||
Fixed until 03/10/2025, | 1,320,000 | 1,270,408 | ||||||
Transamerica Funds | Page 1 |
Transamerica High Quality Bond
SCHEDULE OF INVESTMENTS (continued)
At July 31, 2022
(unaudited)
| Principal | Value | |||||||
| CORPORATE DEBT SECURITIES (continued) | ||||||||
| Banks (continued) | ||||||||
JPMorgan Chase & Co. | ||||||||
Fixed until 06/23/2024, | $ 1,260,000 | $ 1,185,135 | ||||||
Fixed until 09/22/2026, | 1,170,000 | 1,044,275 | ||||||
Lloyds Banking Group PLC | ||||||||
Fixed until 11/07/2022, | 1,545,000 | 1,538,964 | ||||||
NatWest Group PLC | ||||||||
Fixed until 03/22/2024, | 1,250,000 | 1,238,914 | ||||||
PNC Bank NA | ||||||||
2.50%, 08/27/2024 | 2,170,000 | 2,127,580 | ||||||
Sumitomo Mitsui Financial Group, Inc. | ||||||||
3-Month SOFR + 0.88%, | 1,445,000 | 1,396,679 | ||||||
Sumitomo Mitsui Trust Bank Ltd. | ||||||||
0.80%, 09/12/2023 (A) | 1,075,000 | 1,042,395 | ||||||
Wells Fargo & Co. | ||||||||
Fixed until 04/30/2025, | 1,470,000 | 1,394,194 | ||||||
|
| |||||||
| 20,349,447 | ||||||||
|
| |||||||
| Capital Markets - 5.5% | ||||||||
Ameriprise Financial, Inc. | ||||||||
3.00%, 04/02/2025 | 1,579,000 | 1,555,269 | ||||||
Charles Schwab Corp. | ||||||||
3-Month SOFR + 1.05%, | 450,000 | 443,098 | ||||||
Credit Suisse AG | ||||||||
1.00%, 05/05/2023 | 1,095,000 | 1,072,350 | ||||||
Goldman Sachs Group, Inc. | ||||||||
Fixed until 02/24/2027, | 3,400,000 | 3,168,442 | ||||||
Morgan Stanley | ||||||||
Fixed until 02/18/2025, | 1,500,000 | 1,444,804 | ||||||
|
| |||||||
| 7,683,963 | ||||||||
|
| |||||||
| Consumer Finance - 3.2% | ||||||||
American Express Co. | ||||||||
3-Month SOFR + 0.65%, | 1,210,000 | 1,170,513 | ||||||
Capital One Financial Corp. | ||||||||
3.50%, 06/15/2023 | 965,000 | 965,336 | ||||||
General Motors Financial Co., Inc. | ||||||||
3-Month SOFR + 1.20%, | 1,760,000 | 1,736,494 | ||||||
Volkswagen Group of America Finance LLC | ||||||||
0.88%, 11/22/2023 (A) | 635,000 | 611,242 | ||||||
|
| |||||||
| 4,483,585 | ||||||||
|
| |||||||
| Diversified Financial Services - 0.8% | ||||||||
AerCap Ireland Capital DAC / AerCap Global Aviation Trust | ||||||||
1.65%, 10/29/2024 | 1,015,000 | 942,964 | ||||||
4.50%, 09/15/2023 | 235,000 | 234,723 | ||||||
|
| |||||||
| 1,177,687 | ||||||||
|
| |||||||
| Diversified Telecommunication Services - 1.2% | ||||||||
AT&T, Inc. | ||||||||
3-Month LIBOR + 1.18%, | 1,770,000 | 1,764,866 | ||||||
|
| |||||||
| Principal | Value | |||||||
| CORPORATE DEBT SECURITIES (continued) | ||||||||
| Electric Utilities - 4.0% | ||||||||
Berkshire Hathaway Energy Co. | ||||||||
4.05%, 04/15/2025 | $ 1,040,000 | $ 1,062,704 | ||||||
Constellation Energy Generation LLC | ||||||||
3.25%, 06/01/2025 | 1,000,000 | 973,368 | ||||||
Edison International | ||||||||
4.95%, 04/15/2025 | 1,526,000 | 1,547,011 | ||||||
Entergy Louisiana LLC | ||||||||
0.95%, 10/01/2024 | 810,000 | 767,600 | ||||||
NextEra Energy Capital Holdings, Inc. | ||||||||
0.65%, 03/01/2023 | 1,250,000 | 1,230,694 | ||||||
|
| |||||||
| 5,581,377 | ||||||||
|
| |||||||
| Energy Equipment & Services - 1.2% | ||||||||
Halliburton Co. | ||||||||
3.50%, 08/01/2023 | 1,690,000 | 1,685,274 | ||||||
|
| |||||||
| Equity Real Estate Investment Trusts - 4.9% | ||||||||
American Tower Corp. | ||||||||
2.40%, 03/15/2025 | 965,000 | 924,909 | ||||||
Kimco Realty Corp. | ||||||||
4.45%, 01/15/2024 | 850,000 | 853,873 | ||||||
Office Properties Income Trust | ||||||||
4.50%, 02/01/2025 | 950,000 | 893,409 | ||||||
Simon Property Group LP | ||||||||
3.50%, 09/01/2025 | 1,425,000 | 1,416,390 | ||||||
Ventas Realty LP | ||||||||
3.50%, 02/01/2025 | 805,000 | 792,642 | ||||||
WEA Finance LLC / Westfield UK & Europe Finance PLC | ||||||||
3.75%, 09/17/2024 (A) | 1,340,000 | 1,294,718 | ||||||
Welltower, Inc. | ||||||||
3.63%, 03/15/2024 | 650,000 | 648,841 | ||||||
|
| |||||||
| 6,824,782 | ||||||||
|
| |||||||
| Food & Staples Retailing - 0.8% | ||||||||
7-Eleven, Inc. | ||||||||
0.80%, 02/10/2024 (A) | 1,225,000 | 1,170,904 | ||||||
|
| |||||||
| Food Products - 0.8% | ||||||||
Mondelez International, Inc. | ||||||||
2.13%, 03/17/2024 | 1,120,000 | 1,098,081 | ||||||
|
| |||||||
| Gas Utilities - 0.5% | ||||||||
Atmos Energy Corp. | ||||||||
0.63%, 03/09/2023 | 705,000 | 693,482 | ||||||
|
| |||||||
| Health Care Providers & Services - 0.2% | ||||||||
Cigna Corp. | ||||||||
3.50%, 06/15/2024 | 250,000 | 250,741 | ||||||
|
| |||||||
| IT Services - 0.9% | ||||||||
Fiserv, Inc. | ||||||||
3.20%, 07/01/2026 | 1,255,000 | 1,221,001 | ||||||
|
| |||||||
| Life Sciences Tools & Services - 1.0% | ||||||||
Illumina, Inc. | ||||||||
0.55%, 03/23/2023 | 995,000 | 972,792 | ||||||
Thermo Fisher Scientific, Inc. | ||||||||
3-Month SOFR + 0.53%, | 515,000 | 505,907 | ||||||
|
| |||||||
| 1,478,699 | ||||||||
|
| |||||||
| Media - 0.9% | ||||||||
Charter Communications Operating LLC / Charter Communications Operating Capital | ||||||||
4.91%, 07/23/2025 | 1,223,000 | 1,240,531 | ||||||
|
| |||||||
Transamerica Funds | Page 2 |
Transamerica High Quality Bond
SCHEDULE OF INVESTMENTS (continued)
At July 31, 2022
(unaudited)
| Principal | Value | |||||||
| CORPORATE DEBT SECURITIES (continued) | ||||||||
| Multi-Utilities - 2.2% | ||||||||
Dominion Energy, Inc. | ||||||||
3-Month LIBOR + 0.53%, | $ 1,775,000 | $ 1,765,406 | ||||||
DTE Energy Co. | ||||||||
1.05%, 06/01/2025 | 1,425,000 | 1,321,663 | ||||||
|
| |||||||
| 3,087,069 | ||||||||
|
| |||||||
| Oil, Gas & Consumable Fuels - 2.1% | ||||||||
Energy Transfer LP | ||||||||
4.75%, 01/15/2026 | 1,565,000 | 1,574,845 | ||||||
Phillips 66 | ||||||||
3.70%, 04/06/2023 | 440,000 | 441,028 | ||||||
Williams Cos., Inc. | ||||||||
3.90%, 01/15/2025 | 990,000 | 986,809 | ||||||
|
| |||||||
| 3,002,682 | ||||||||
|
| |||||||
| Pharmaceuticals - 1.1% | ||||||||
AstraZeneca PLC | ||||||||
3-Month LIBOR + 0.67%, | 1,562,000 | 1,562,034 | ||||||
|
| |||||||
| Road & Rail - 2.1% | ||||||||
Norfolk Southern Corp. | ||||||||
5.59%, 05/17/2025 | 1,432,000 | 1,492,486 | ||||||
NTT Finance Corp. | ||||||||
0.58%, 03/01/2024 (A) | 460,000 | 438,895 | ||||||
1.16%, 04/03/2026 (A) | 1,075,000 | 983,169 | ||||||
|
| |||||||
| 2,914,550 | ||||||||
|
| |||||||
| Semiconductors & Semiconductor Equipment - 1.2% | ||||||||
Advanced Micro Devices, Inc. | ||||||||
7.50%, 08/15/2022 | 1,691,000 | 1,700,808 | ||||||
|
| |||||||
| Software - 1.3% | ||||||||
Oracle Corp. | ||||||||
2.50%, 04/01/2025 | 1,155,000 | 1,114,053 | ||||||
VMware, Inc. | ||||||||
0.60%, 08/15/2023 | 765,000 | 740,724 | ||||||
|
| |||||||
| 1,854,777 | ||||||||
|
| |||||||
Total Corporate Debt Securities |
| 72,216,029 | ||||||
|
| |||||||
| MORTGAGE-BACKED SECURITIES - 12.8% | ||||||||
BX Commercial Mortgage Trust | ||||||||
Series 2019-XL, Class F, | ||||||||
1-Month LIBOR + 2.00%, | 1,555,500 | 1,500,706 | ||||||
Series 2021-SOAR, Class D, | ||||||||
1-Month LIBOR + 1.40%, | 1,716,993 | 1,613,590 | ||||||
Series 2021-VOLT, Class C, | ||||||||
1-Month LIBOR + 1.10%, | 700,000 | 654,254 | ||||||
BX Trust | ||||||||
Series 2021-LGCY, Class D, | ||||||||
1-Month LIBOR + 1.30%, | 1,700,000 | 1,575,284 | ||||||
CGDB Commercial Mortgage Trust | ||||||||
Series 2019-MOB, Class D, | ||||||||
1-Month LIBOR + 1.65%, | 2,210,000 | 2,143,277 | ||||||
| Principal | Value | |||||||
| MORTGAGE-BACKED SECURITIES (continued) | ||||||||
CHC Commercial Mortgage Trust | ||||||||
Series 2019-CHC, Class D, | ||||||||
1-Month LIBOR + 2.05%, | $ 1,756,735 | $ 1,662,001 | ||||||
Citigroup Commercial Mortgage Trust | ||||||||
Series 2019-SMRT, Class B, | ||||||||
4.38%, 01/10/2036 (A) | 1,600,000 | 1,579,964 | ||||||
Cold Storage Trust | ||||||||
Series 2020-ICE5, Class D, | ||||||||
1-Month LIBOR + 2.10%, | 1,474,486 | 1,431,779 | ||||||
Credit Suisse Mortgage Capital Certificates | ||||||||
Series 2019-ICE4, Class D, | ||||||||
1-Month LIBOR + 1.60%, | 1,810,000 | 1,766,568 | ||||||
DBGS Mortgage Trust | ||||||||
Series 2018-BIOD, Class E, | ||||||||
1-Month LIBOR + 1.70%, | 822,386 | 799,613 | ||||||
Extended Stay America Trust | ||||||||
Series 2021-ESH, Class C, | ||||||||
1-Month LIBOR + 1.70%, | 447,247 | 433,750 | ||||||
Morgan Stanley Capital I Trust | ||||||||
Series 2017-CLS, Class D, | ||||||||
1-Month LIBOR + 1.40%, | 1,305,000 | 1,291,807 | ||||||
STWD Trust | ||||||||
Series 2021-FLWR, Class D, | ||||||||
1-Month LIBOR + 1.38%, | 1,700,000 | 1,589,095 | ||||||
|
| |||||||
Total Mortgage-Backed Securities |
| 18,041,688 | ||||||
|
| |||||||
| U.S. GOVERNMENT AGENCY OBLIGATIONS - 3.2% | ||||||||
Federal Home Loan Mortgage Corp. | ||||||||
1-Year CMT + 2.04%, | 303,877 | 310,129 | ||||||
4.50%, 09/01/2026 | 90,799 | 93,534 | ||||||
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Interest Only STRIPS | ||||||||
0.51% (B), 08/25/2031 | 17,697,683 | 675,538 | ||||||
0.72% (B), 12/25/2030 | 4,791,203 | 231,934 | ||||||
0.93% (B), 09/25/2030 | 19,920,968 | 1,200,864 | ||||||
1.04% (B), 06/25/2031 | 7,594,221 | 558,095 | ||||||
1.31% (B), 07/25/2026 | 20,561,267 | 818,184 | ||||||
Federal National Mortgage Association, Interest Only STRIPS | ||||||||
0.02% (B), 11/25/2022 | 12,393,220 | 58 | ||||||
Seasoned Loans Structured Transaction Trust | ||||||||
Series 2018-1, Class A1, | ||||||||
3.50%, 06/25/2028 | 548,560 | 548,241 | ||||||
|
| |||||||
Total U.S. Government Agency Obligations |
| 4,436,577 | ||||||
|
| |||||||
Transamerica Funds | Page 3 |
Transamerica High Quality Bond
SCHEDULE OF INVESTMENTS (continued)
At July 31, 2022
(unaudited)
| Principal | Value | |||||||
| U.S. GOVERNMENT OBLIGATION - 4.1% | ||||||||
| U.S. Treasury - 4.1% | ||||||||
U.S. Treasury Note | ||||||||
2.75%, 05/15/2025 | $ 5,830,000 | $ 5,813,148 | ||||||
|
| |||||||
Total U.S. Government Obligation |
| 5,813,148 | ||||||
|
| |||||||
| Shares | Value | |||||||
| OTHER INVESTMENT COMPANY - 0.2% | ||||||||
| Securities Lending Collateral - 0.2% | ||||||||
State Street Navigator Securities Lending Trust - Government Money Market Portfolio, 2.27% (D) | 239,488 | 239,488 | ||||||
|
| |||||||
Total Other Investment Company |
| 239,488 | ||||||
|
| |||||||
Total Investments |
| 139,871,489 | ||||||
Net Other Assets (Liabilities) - 0.4% | 606,817 | |||||||
|
| |||||||
Net Assets - 100.0% | $ 140,478,306 | |||||||
|
| |||||||
INVESTMENT VALUATION:
Valuation Inputs (E)
| Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Value | |||||||||||||
ASSETS | ||||||||||||||||
Investments |
| |||||||||||||||
Asset-Backed Securities | $ | — | $ | 39,124,559 | $ | — | $ | 39,124,559 | ||||||||
Corporate Debt Securities | — | 72,216,029 | — | 72,216,029 | ||||||||||||
Mortgage-Backed Securities | — | 18,041,688 | — | 18,041,688 | ||||||||||||
U.S. Government Agency Obligations | — | 4,436,577 | — | 4,436,577 | ||||||||||||
U.S. Government Obligation | — | 5,813,148 | — | 5,813,148 | ||||||||||||
Other Investment Company | 239,488 | — | — | 239,488 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 239,488 | $ | 139,632,001 | $ | — | $ | 139,871,489 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Transamerica Funds | Page 4 |
Transamerica High Quality Bond
SCHEDULE OF INVESTMENTS (continued)
At July 31, 2022
(unaudited)
FOOTNOTES TO SCHEDULE OF INVESTMENTS:
| (A) | Securities are exempt from registration pursuant to Rule 144A of the Securities Act of 1933. Securities may be resold as transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2022, the total value of 144A securities is $46,601,913, representing 33.2% of the Fund’s net assets. | |
| (B) | Floating or variable rate securities. The rates disclosed are as of July 31, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated within the description. Variable rate securities with a floor or ceiling feature are disclosed at the inherent rate, where applicable. Certain variable rate securities are not based on a published reference rate and spread, but are determined by the issuer or agent and are based on current market conditions; these securities do not indicate a reference rate and spread in the description. | |
| (C) | All or a portion of the security is on loan. The value of the security on loan is $234,587, collateralized by cash collateral of $239,488. The amount on loan indicated may not correspond with the security on loan identified because a security with pending sales are in the process of recall from the brokers. | |
| (D) | Rate disclosed reflects the yield at July 31, 2022. | |
| (E) | There were no transfers in or out of Level 3 during the period ended July 31, 2022. Please reference the Investment Valuation section of the Notes to Schedule of Investments for more information regarding investment valuation and pricing inputs. |
PORTFOLIO ABBREVIATIONS:
CMT | Constant Maturity Treasury | |
LIBOR | London Interbank Offered Rate | |
SOFR | Secured Overnight Financing Rate | |
STRIPS | Separate Trading of Registered Interest and Principal of Securities |
Transamerica Funds | Page 5 |
Transamerica High Quality Bond
NOTES TO SCHEDULE OF INVESTMENTS
At July 31, 2022
(unaudited)
INVESTMENT VALUATION
Transamerica High Quality Bond (the “Fund”) is a series of the Transamerica Funds.
All investments in securities are recorded at their estimated fair value. The Fund values its investments at the official close of the New York Stock Exchange (“NYSE”) each day the NYSE is open for business.
The Fund utilizes various methods to measure the fair value of its investments on a recurring basis. Generally Accepted Accounting Principles in the United States of America establishes a hierarchy that prioritizes inputs to valuation methods. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three levels (“Levels”) of inputs of the fair value hierarchy are defined as follows:
Level 1 — Unadjusted quoted prices in active markets for identical securities.
Level 2 — Inputs, other than quoted prices included in Level 1, which are observable, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available, which may include the Fund’s own assumptions used in determining the fair value of investments.
The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy that is assigned to the fair value measurement of a security is determined based on the lowest Level input that is significant to the fair value measurement in its entirety. Certain investments that are measured at fair value using Net Asset Value (“NAV”) per share, or its equivalent, using the “practical expedient” have not been classified in the fair value Levels. The hierarchy classification of inputs used to value the Fund’s investments at July 31, 2022, is disclosed within the Investment Valuation section of the Schedule of Investments.
The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, but not limited to, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is generally greatest for instruments categorized in Level 3. Due to the inherent uncertainty of valuation, the determination of values may differ significantly from values that would have been realized had a ready market for investments existed, and the differences could be material.
Fair value measurements: Descriptions of the valuation techniques applied to the Fund’s significant categories of assets and liabilities measured at fair value on a recurring basis are as follows:
Asset-backed securities: The fair value of asset-backed securities is estimated based on models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. To the extent the inputs are observable and timely, the values would generally be categorized in Level 2 of the fair value hierarchy; otherwise they would be categorized in Level 3.
Corporate debt securities: The fair value of corporate debt securities is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate debt securities are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3.
Mortgage-backed securities: The fair value of mortgage-backed securities is estimated based on models that consider issuer type, coupon, cash flows, mortgage prepayment projection tables and adjustable rate mortgage evaluations that incorporate index data, periodic life caps and the next coupon reset date. To the extent the inputs are observable and timely, the values would generally be categorized in Level 2 of the fair value hierarchy; otherwise they are categorized in Level 3.
U.S. government agency obligations: U.S. government agency obligations are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Generally, agency issued debt securities are valued in a manner similar to U.S. government obligations. Mortgage pass-throughs include to be announced (“TBA”) securities and mortgage pass-through certificates. Generally, TBA securities and mortgage pass-throughs are valued using dealer quotations. Depending on market activity levels and whether quotations or other observable data are used, these securities are typically categorized in Level 2 of the fair value hierarchy; otherwise they would be categorized in Level 3.
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Transamerica High Quality Bond
NOTES TO SCHEDULE OF INVESTMENTS (continued)
At July 31, 2022
(unaudited)
U.S. government obligations: U.S. government obligations are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued by principally using dealer quotations. U.S. government obligations generally are categorized in Level 2 of the fair value hierarchy, or Level 3 if inputs are unobservable.
Securities lending collateral: Securities lending collateral is invested in a money market fund which is valued at the actively traded NAV and no valuation adjustments are applied. Securities lending collateral is categorized in Level 1 of the fair value hierarchy.
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