Transamerica UltraShort Bond
SCHEDULE OF INVESTMENTS
At January 31, 2024
(unaudited)
Principal | Value | |||||||
ASSET-BACKED SECURITIES - 16.2% | ||||||||
ACM Auto Trust | ||||||||
Series 2023-2A, Class A, | ||||||||
7.97%, 06/20/2030 (A) | $ 146,729 | $ 147,902 | ||||||
Series 2024-1A, Class A, | ||||||||
7.71%, 01/21/2031 (A) | 125,000 | 125,391 | ||||||
American Express Credit Account Master Trust | ||||||||
Series 2021-1, Class A, | ||||||||
0.90%, 11/15/2026 | 305,000 | 294,999 | ||||||
Series 2022-3, Class A, | ||||||||
3.75%, 08/15/2027 | 300,000 | 295,504 | ||||||
AmeriCredit Automobile Receivables Trust | ||||||||
Series 2020-2, Class D, | ||||||||
2.13%, 03/18/2026 | 250,000 | 243,290 | ||||||
Avis Budget Rental Car Funding AESOP LLC | ||||||||
Series 2018-2A, Class A, | ||||||||
4.00%, 03/20/2025 (A) | 66,667 | 66,567 | ||||||
Series 2018-2A, Class B, | ||||||||
4.27%, 03/20/2025 (A) | 350,000 | 349,443 | ||||||
Series 2019-2A, Class A, | ||||||||
3.35%, 09/22/2025 (A) | 330,000 | 326,824 | ||||||
CIFC Funding Ltd. | ||||||||
Series 2017-4A, Class A1R, | ||||||||
3-Month Term SOFR + 1.21%, | 190,436 | 190,701 | ||||||
Discover Card Execution Note Trust | ||||||||
Series 2022-A2, Class A, | ||||||||
3.32%, 05/15/2027 | 250,000 | 245,207 | ||||||
Hyundai Auto Receivables Trust | ||||||||
Series 2021-B, Class A3, | ||||||||
0.38%, 01/15/2026 | 206,255 | 202,411 | ||||||
LCM XXV Ltd. | ||||||||
Series 25A, Class AR, | ||||||||
3-Month Term SOFR + 1.10%, | 146,095 | 145,871 | ||||||
PFS Financing Corp. | ||||||||
Series 2021-A, Class A, | ||||||||
0.71%, 04/15/2026 (A) | 250,000 | 247,443 | ||||||
Santander Drive Auto Receivables Trust | ||||||||
Series 2021-1, Class D, | ||||||||
1.13%, 11/16/2026 | 276,059 | 269,651 | ||||||
Series 2021-4, Class C, | ||||||||
1.26%, 02/16/2027 | 223,749 | 219,576 | ||||||
Series 2022-2, Class A3, | ||||||||
2.98%, 10/15/2026 | 112,065 | 111,582 | ||||||
Series 2023-5, Class A2, | ||||||||
6.31%, 07/15/2027 | 123,462 | 124,113 | ||||||
Sierra Timeshare Receivables Funding LLC | ||||||||
Series 2020-2A, Class B, | ||||||||
2.32%, 07/20/2037 (A) | 144,403 | 138,729 | ||||||
Sound Point CLO XVI Ltd. | ||||||||
Series 2017-2A, Class AR, | ||||||||
3-Month Term SOFR + 1.24%, | 112,940 | 112,839 | ||||||
Symphony CLO XIX Ltd. | ||||||||
Series 2018-19A, Class A, | ||||||||
3-Month Term SOFR + 1.22%, | 229,876 | 229,887 |
Principal | Value | |||||||
ASSET-BACKED SECURITIES (continued) | ||||||||
TCW CLO Ltd. | ||||||||
Series 2018-1A, Class A1R, | ||||||||
3-Month Term SOFR + 1.23%, | $ 187,988 | $ 187,990 | ||||||
Tidewater Auto Receivables Trust | ||||||||
Series 2020-AA, Class D, | ||||||||
2.31%, 03/15/2027 (A) | 188,153 | 185,018 | ||||||
Toyota Auto Loan Extended Note Trust | ||||||||
Series 2019-1A, Class A, | ||||||||
2.56%, 11/25/2031 (A) | 250,000 | 247,484 | ||||||
Series 2020-1A, Class A, | ||||||||
1.35%, 05/25/2033 (A) | 250,000 | 238,272 | ||||||
Venture XXVII CLO Ltd. | ||||||||
Series 2017-27A, Class AR, | ||||||||
3-Month Term SOFR + 1.31%, | 253,931 | 254,269 | ||||||
Veridian Auto Receivables Trust | ||||||||
Series 2023-1A, Class A2, | ||||||||
5.97%, 08/17/2026 (A) | 134,171 | 134,162 | ||||||
Welk Resorts LLC | ||||||||
Series 2019-AA, Class A, | ||||||||
2.80%, 06/15/2038 (A) | 103,306 | 99,028 | ||||||
|
| |||||||
Total Asset-Backed Securities |
| 5,434,153 | ||||||
|
| |||||||
CORPORATE DEBT SECURITIES - 29.0% | ||||||||
Aerospace & Defense - 1.1% | ||||||||
Boeing Co. | ||||||||
1.43%, 02/04/2024 | 188,000 | 187,929 | ||||||
2.25%, 06/15/2026 | 210,000 | 196,469 | ||||||
|
| |||||||
384,398 | ||||||||
|
| |||||||
Automobiles - 3.4% | ||||||||
Ford Motor Credit Co. LLC | ||||||||
3.38%, 11/13/2025 | 200,000 | 191,941 | ||||||
3.66%, 09/08/2024 | 200,000 | 197,376 | ||||||
General Motors Financial Co., Inc. | ||||||||
3.95%, 04/13/2024 | 235,000 | 233,964 | ||||||
Nissan Motor Acceptance Co. LLC | ||||||||
1.13%, 09/16/2024 (A) | 130,000 | 126,158 | ||||||
Volkswagen Group of America Finance LLC | ||||||||
3.95%, 06/06/2025 (A) | 400,000 | 393,029 | ||||||
|
| |||||||
1,142,468 | ||||||||
|
| |||||||
Banks - 8.4% | ||||||||
Bank of America Corp. | ||||||||
Fixed until 06/19/2025, | 410,000 | 387,953 | ||||||
BNP Paribas SA | ||||||||
Fixed until 11/19/2024, | 200,000 | 195,662 | ||||||
Citigroup, Inc. | ||||||||
Fixed until 05/24/2024, | 293,000 | 291,536 | ||||||
Deutsche Bank AG | ||||||||
0.90%, 05/28/2024 | 150,000 | 147,761 | ||||||
Goldman Sachs Group, Inc. | ||||||||
3.50%, 11/16/2026 | 293,000 | 283,167 | ||||||
JPMorgan Chase & Co. | ||||||||
3.13%, 01/23/2025 | 330,000 | 324,046 |
Transamerica Funds | Page 1 |
Transamerica UltraShort Bond
SCHEDULE OF INVESTMENTS (continued)
At January 31, 2024
(unaudited)
Principal | Value | |||||||
CORPORATE DEBT SECURITIES (continued) | ||||||||
Banks (continued) | ||||||||
Lloyds Banking Group PLC | ||||||||
4.58%, 12/10/2025 | $ 200,000 | $ 196,740 | ||||||
Morgan Stanley | ||||||||
Fixed until 10/21/2024, | 272,000 | 262,711 | ||||||
PNC Financial Services Group, Inc. | ||||||||
Fixed until 10/28/2024, | 57,000 | 56,979 | ||||||
Truist Financial Corp. | ||||||||
2.85%, 10/26/2024 | 196,000 | 192,395 | ||||||
US Bancorp | ||||||||
1.45%, 05/12/2025 | 196,000 | 187,574 | ||||||
Wells Fargo & Co. | ||||||||
Fixed until 05/19/2024, | 294,000 | 289,487 | ||||||
|
| |||||||
2,816,011 | ||||||||
|
| |||||||
Beverages - 0.6% | ||||||||
Constellation Brands, Inc. | ||||||||
3.60%, 05/09/2024 | 196,000 | 195,026 | ||||||
|
| |||||||
Chemicals - 0.3% | ||||||||
Westlake Corp. | ||||||||
0.88%, 08/15/2024 | 119,000 | 116,044 | ||||||
|
| |||||||
Commercial Services & Supplies - 0.8% | ||||||||
Element Fleet Management Corp. | ||||||||
1.60%, 04/06/2024 (A) | 162,000 | 160,686 | ||||||
6.27%, 06/26/2026 (A) | 97,000 | 98,736 | ||||||
|
| |||||||
259,422 | ||||||||
|
| |||||||
Consumer Finance - 0.6% | ||||||||
American Express Co. | ||||||||
3.38%, 05/03/2024 | 196,000 | 194,956 | ||||||
|
| |||||||
Consumer Staples Distribution & Retail - 0.6% | ||||||||
7-Eleven, Inc. | ||||||||
0.80%, 02/10/2024 (A) | 196,000 | 195,668 | ||||||
|
| |||||||
Containers & Packaging - 0.6% | ||||||||
Berry Global, Inc. | ||||||||
0.95%, 02/15/2024 | 125,000 | 124,730 | ||||||
4.88%, 07/15/2026 (A) | 98,000 | 96,395 | ||||||
|
| |||||||
221,125 | ||||||||
|
| |||||||
Electric Utilities - 1.1% | ||||||||
Black Hills Corp. | ||||||||
1.04%, 08/23/2024 | 172,000 | 167,624 | ||||||
Southern Co. | ||||||||
0.60%, 02/26/2024 | 196,000 | 195,331 | ||||||
|
| |||||||
362,955 | ||||||||
|
| |||||||
Financial Services - 1.4% | ||||||||
AerCap Ireland Capital DAC/AerCap Global Aviation Trust | ||||||||
1.65%, 10/29/2024 | 300,000 | 291,440 | ||||||
Air Lease Corp. | ||||||||
0.70%, 02/15/2024 | 171,000 | 170,686 | ||||||
|
| |||||||
462,126 | ||||||||
|
| |||||||
Health Care Equipment & Supplies - 0.6% | ||||||||
GE HealthCare Technologies, Inc. | ||||||||
5.60%, 11/15/2025 | 200,000 | 201,819 | ||||||
|
|
Principal | Value | |||||||
CORPORATE DEBT SECURITIES (continued) | ||||||||
Health Care Providers & Services - 1.5% | ||||||||
Cigna Group | ||||||||
0.61%, 03/15/2024 | $ 125,000 | $ 124,274 | ||||||
3.50%, 06/15/2024 | 99,000 | 98,249 | ||||||
CVS Health Corp. | ||||||||
2.63%, 08/15/2024 | 128,000 | 126,055 | ||||||
HCA, Inc. | ||||||||
5.00%, 03/15/2024 | 150,000 | 149,853 | ||||||
|
| |||||||
498,431 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure - 0.4% | ||||||||
Warnermedia Holdings, Inc. | ||||||||
3.64%, 03/15/2025 | 132,000 | 129,470 | ||||||
|
| |||||||
Insurance - 0.6% | ||||||||
Brighthouse Financial Global Funding | ||||||||
1.00%, 04/12/2024 (A) | 196,000 | 194,211 | ||||||
|
| |||||||
Leisure Products - 0.6% | ||||||||
Brunswick Corp. | ||||||||
0.85%, 08/18/2024 | 196,000 | 190,939 | ||||||
|
| |||||||
Media - 0.4% | ||||||||
Charter Communications Operating LLC/Charter Communications Operating Capital | ||||||||
4.91%, 07/23/2025 | 130,000 | 128,846 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels - 3.0% | ||||||||
DCP Midstream Operating LP | ||||||||
5.38%, 07/15/2025 | 96,000 | 96,119 | ||||||
MPLX LP | ||||||||
4.88%, 12/01/2024 | 131,000 | 130,511 | ||||||
ONEOK, Inc. | ||||||||
5.55%, 11/01/2026 | 193,000 | 196,264 | ||||||
Ovintiv, Inc. | ||||||||
5.65%, 05/15/2025 | 215,000 | 216,045 | ||||||
Plains All American Pipeline LP/PAA Finance Corp. | ||||||||
3.60%, 11/01/2024 | 203,000 | 199,945 | ||||||
Williams Cos., Inc. | ||||||||
4.30%, 03/04/2024 | 159,000 | 158,820 | ||||||
|
| |||||||
997,704 | ||||||||
|
| |||||||
Personal Care Products - 0.5% | ||||||||
Kenvue, Inc. | ||||||||
5.50%, 03/22/2025 | 158,000 | 159,257 | ||||||
|
| |||||||
Pharmaceuticals - 0.3% | ||||||||
Pfizer Investment Enterprises Pte. Ltd. | ||||||||
4.65%, 05/19/2025 | 122,000 | 121,742 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals - 0.6% | ||||||||
Hewlett Packard Enterprise Co. | ||||||||
5.90%, 10/01/2024 | 200,000 | 200,359 | ||||||
|
| |||||||
Tobacco - 1.0% | ||||||||
BAT Capital Corp. | ||||||||
3.22%, 08/15/2024 | 128,000 | 126,370 | ||||||
Philip Morris International, Inc. | ||||||||
5.13%, 11/15/2024 | 200,000 | 199,842 | ||||||
|
| |||||||
326,212 | ||||||||
|
|
Transamerica Funds | Page 2 |
Transamerica UltraShort Bond
SCHEDULE OF INVESTMENTS (continued)
At January 31, 2024
(unaudited)
Principal | Value | |||||||
CORPORATE DEBT SECURITIES (continued) | ||||||||
Wireless Telecommunication Services - 0.6% | ||||||||
Rogers Communications, Inc. | ||||||||
2.95%, 03/15/2025 | $ 125,000 | $ 121,882 | ||||||
T-Mobile USA, Inc. | ||||||||
2.25%, 02/15/2026 | 103,000 | 97,642 | ||||||
|
| |||||||
219,524 | ||||||||
|
| |||||||
Total Corporate Debt Securities |
| 9,718,713 | ||||||
|
| |||||||
MORTGAGE-BACKED SECURITIES - 4.4% | ||||||||
BX Commercial Mortgage Trust | ||||||||
Series 2019-XL, Class C, | ||||||||
1-Month Term SOFR + 1.36%, | 403,750 | 402,236 | ||||||
Series 2020-VKNG, Class C, | ||||||||
1-Month Term SOFR + 1.51%, | 245,000 | 243,162 | ||||||
CAMB Commercial Mortgage Trust | ||||||||
Series 2019-LIFE, Class D, | ||||||||
1-Month Term SOFR + 2.05%, | 250,000 | 249,139 | ||||||
Fontainebleau Miami Beach Trust | ||||||||
Series 2019-FBLU, Class A, | ||||||||
3.14%, 12/10/2036 (A) | 350,000 | 340,346 | ||||||
Great Wolf Trust | ||||||||
Series 2019-WOLF, Class C, | ||||||||
1-Month Term SOFR + 1.95%, | 250,000 | 249,063 | ||||||
|
| |||||||
Total Mortgage-Backed Securities |
| 1,483,946 | ||||||
|
| |||||||
COMMERCIAL PAPER - 41.4% | ||||||||
Banks - 10.6% | ||||||||
ABN AMRO Funding USA LLC | ||||||||
5.85% (C), 05/03/2024 (A) | 500,000 | 493,022 | ||||||
Bank of China Ltd. | ||||||||
5.70% (C), 04/03/2024 | 250,000 | 247,611 | ||||||
DNB Bank ASA | ||||||||
5.90% (C), 03/25/2024 (A) | 350,000 | 347,236 | ||||||
HSBC USA, Inc. | ||||||||
5.68% (C), 07/23/2024 (A) | 500,000 | 486,915 | ||||||
Lloyds Bank PLC | ||||||||
5.89% (C), 03/12/2024 | 250,000 | 248,454 | ||||||
Mackinac Funding Co. LLC | ||||||||
5.87% (C), 03/13/2024 (A) | 500,000 | 496,857 | ||||||
Macquarie Bank Ltd. | ||||||||
5.82% (C), 03/04/2024 (A) | 500,000 | 497,524 | ||||||
NatWest Markets PLC | ||||||||
5.92% (C), 05/21/2024 (A) | 250,000 | 245,791 | ||||||
Standard Chartered Bank | ||||||||
5.42% (C), 07/15/2024 (A) | 500,000 | 487,952 | ||||||
|
| |||||||
3,551,362 | ||||||||
|
| |||||||
Capital Markets - 0.7% | ||||||||
Goldman Sachs International | ||||||||
5.74% (C), 04/03/2024 (A) | 250,000 | 250,118 | ||||||
|
| |||||||
Containers & Packaging - 1.5% | ||||||||
Amcor Finance USA, Inc. | ||||||||
5.77% (C), 02/12/2024 (A) | 500,000 | 499,089 | ||||||
|
|
Principal | Value | |||||||
COMMERCIAL PAPER (continued) | ||||||||
Diversified Consumer Services - 1.5% | ||||||||
VW Credit, Inc. | ||||||||
5.67% (C), 03/19/2024 | $ 500,000 | $ 496,272 | ||||||
|
| |||||||
Electric Utilities - 6.4% | ||||||||
Berkshire Hathaway Energy Co. | ||||||||
5.68% (C), 02/12/2024 (A) | 500,000 | 499,090 | ||||||
Consolidated Edison Co. of New York, Inc. | ||||||||
5.79% (C), 03/06/2024 (A) | 400,000 | 397,837 | ||||||
Duke Energy Corp. | ||||||||
5.81% (C), 02/27/2024 (A) | 500,000 | 497,915 | ||||||
Entergy Corp. | ||||||||
5.62% (C), 03/13/2024 (A) | 500,000 | 496,740 | ||||||
5.72% (C), 03/08/2024 (A) | 250,000 | 248,565 | ||||||
|
| |||||||
2,140,147 | ||||||||
|
| |||||||
Financial Services - 19.7% | ||||||||
Alinghi Funding Co. LLC | ||||||||
6.00% (C), 06/12/2024 (A) | 500,000 | 490,280 | ||||||
Anglesea Funding LLC | ||||||||
5.83% (C), 02/01/2024 (A) | 500,000 | 499,926 | ||||||
Atlantic Asset Securitization LLC | ||||||||
5.92% (C), 05/10/2024 (A) | 500,000 | 492,540 | ||||||
Britannia Funding Co. LLC | ||||||||
5.60% (C), 04/12/2024 (A) | 500,000 | 494,600 | ||||||
Chariot Funding LLC | ||||||||
5.54% (C), 02/15/2024 (A) | 500,000 | 498,887 | ||||||
Fairway Finance Co. LLC | ||||||||
5.89% (C), 04/10/2024 (A) | 500,000 | 494,773 | ||||||
Glencove Funding LLC | ||||||||
5.73% (C), 02/02/2024 (A) | 250,000 | 249,926 | ||||||
5.88% (C), 04/05/2024 (A) | 250,000 | 247,577 | ||||||
Gotham Funding Corp. | ||||||||
5.53% (C), 03/26/2024 (A) | 500,000 | 495,895 | ||||||
GTA Funding LLC | ||||||||
5.85% (C), 04/01/2024 (A) | 400,000 | 396,360 | ||||||
Intercontinental Exchange, Inc. | ||||||||
5.68% (C), 02/05/2024 (A) | 350,000 | 347,780 | ||||||
Liberty Street Funding LLC | ||||||||
5.87% (C), 04/22/2024 (A) | 500,000 | 493,936 | ||||||
Mont Blanc Capital Corp. | ||||||||
5.59% (C), 02/14/2024 (A) | 500,000 | 498,961 | ||||||
Starbird Funding Corp. | ||||||||
5.67% (C), 04/04/2024 (A) | 400,000 | 400,000 | ||||||
Thunder Bay Funding LLC | ||||||||
5.68% (C), 02/27/2024 (A) | 250,000 | 248,998 | ||||||
5.83% (C), 05/07/2024 | 250,000 | 246,412 | ||||||
|
| |||||||
6,596,851 | ||||||||
|
| |||||||
Software - 1.0% | ||||||||
Manhattan Asset Funding Co. LLC | ||||||||
5.48% (C), 04/22/2024 (A) | 350,000 | 345,707 | ||||||
|
| |||||||
Total Commercial Paper |
| 13,879,546 | ||||||
|
| |||||||
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS - 6.5% | ||||||||
U.S. Treasury Bills | ||||||||
5.43% (C), 05/23/2024 | 1,925,000 | 1,894,157 | ||||||
5.53% (C), 09/05/2024 | 300,000 | 291,423 | ||||||
|
| |||||||
Total Short-Term U.S. Government Obligations |
| 2,185,580 | ||||||
|
|
Transamerica Funds | Page 3 |
Transamerica UltraShort Bond
SCHEDULE OF INVESTMENTS (continued)
At January 31, 2024
(unaudited)
Principal | Value | |||||||
REPURCHASE AGREEMENTS - 1.8% | ||||||||
Fixed Income Clearing Corp., 2.50% (C), dated 01/31/2024, to be repurchased at $120,281 on 02/01/2024. Collateralized by a U.S. Government Obligation, 4.50%, due 07/15/2026, and with a value of $122,697. | $ 120,272 | $ 120,272 | ||||||
Nomura Securities International, Inc., 5.30% (C), dated 01/31/2024, to be repurchased at $500,074 on 02/01/2024. Collateralized by U.S. Government Agency Obligations, 3.00% - 4.50%, due 10/20/2026 - 05/01/2051, and with a total value of $508,865. | 500,000 | 500,000 | ||||||
|
| |||||||
Total Repurchase Agreements |
| 620,272 | ||||||
|
| |||||||
Total Investments |
| 33,322,210 | ||||||
Net Other Assets (Liabilities) - 0.7% | 221,932 | |||||||
|
| |||||||
Net Assets - 100.0% | $ 33,544,142 | |||||||
|
|
Transamerica Funds | Page 4 |
Transamerica UltraShort Bond
SCHEDULE OF INVESTMENTS (continued)
At January 31, 2024
(unaudited)
INVESTMENT VALUATION:
Valuation Inputs (D)
Level 1 - Unadjusted Quoted Prices | Level 2 - Other Significant Observable Inputs | Level 3 - Significant Unobservable Inputs | Value | |||||||||||||
ASSETS |
| |||||||||||||||
Investments | ||||||||||||||||
Asset-Backed Securities | $ | — | $ | 5,434,153 | $ | — | $ | 5,434,153 | ||||||||
Corporate Debt Securities | — | 9,718,713 | — | 9,718,713 | ||||||||||||
Mortgage-Backed Securities | — | 1,483,946 | — | 1,483,946 | ||||||||||||
Commercial Paper | — | 13,879,546 | — | 13,879,546 | ||||||||||||
Short-Term U.S. Government Obligations | — | 2,185,580 | — | 2,185,580 | ||||||||||||
Repurchase Agreements | — | 620,272 | — | 620,272 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | — | $ | 33,322,210 | $ | — | $ | 33,322,210 | ||||||||
|
|
|
|
|
|
|
|
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 January 31, 2024, the total value of 144A securities is $19,013,108, representing 56.7% of the Fund’s net assets. | |
(B) | Floating or variable rate securities. The rates disclosed are as of January 31, 2024. 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) | Rates disclosed reflect the yields at January 31, 2024. | |
(D) | There were no transfers in or out of Level 3 during the period ended January 31, 2024. Please reference the Investment Valuation section of the Notes to Schedule of Investments for more information regarding investment valuation and pricing inputs. |
PORTFOLIO ABBREVIATION:
SOFR | Secured Overnight Financing Rate |
Transamerica Funds | Page 5 |
Transamerica UltraShort Bond
NOTES TO SCHEDULE OF INVESTMENTS
At January 31, 2024
(unaudited)
INVESTMENT VALUATION
Transamerica UltraShort Bond (the “Fund”) is a series of the Transamerica Funds.
Transamerica Asset Management, Inc. (“TAM”) has been designated as the Fund’s valuation designee pursuant to Rule 2a-5 under the Investment Company Act of 1940, as amended, with responsibility for fair valuation subject to oversight by the Fund’s Board of Trustees. The net asset value of the Fund is computed as of the official close of the New York Stock Exchange (“NYSE”) each day the NYSE is open for business.
TAM 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 TAM’s own assumptions used in determining the fair value of the Fund’s 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 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 January 31, 2024, 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.
Commercial paper: Commercial paper is valued using amortized cost, which approximates fair value. The values are generally categorized in Level 2 of the fair value hierarchy, or Level 3 if inputs are unobservable.
Short-term notes: The Fund normally values short-term government and U.S. government agency securities 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. Short-term government and U.S. government agency securities generally are categorized in Level 2 of the fair value hierarchy, or Level 3 if inputs are unobservable.
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Transamerica UltraShort Bond
NOTES TO SCHEDULE OF INVESTMENTS (continued)
At January 31, 2024
(unaudited)
Repurchase agreements: Repurchase agreements are valued at cost, which approximates fair value. To the extent the inputs are observable and timely, the values are generally categorized in Level 2 of the fair value hierarchy.
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