Growth Portfolio
We do not offer the portfolio for sale directly to the public. Insurance
companies purchase shares of the portfolio and offer them as investment options
in their variable annuity contracts and variable life insurance policies. Read
your contract for additional variable insurance contract charges and
restrictions on purchases or allocations.
This prospectus should be read in conjunction with the variable insurance
contract.
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any representation to
the contrary is a criminal offense..Transamerica Variable Insurance Fund, Inc.
<PAGE>
Table of Contents
The Portfolio at a Glance . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Fees and Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
The Portfolio in Detail . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Growth Portfolio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Investment Adviser & Sub-Adviser . . . . . . . . . . . . . . . . . . . . . . 5
Determination of Net Asset Value . . . . . . . . . . . . . . . . . . . . . . 7
Offering, Purchase and Redemption of Shares . . . . . . .. . . . . . . 7
Income, Dividends and Capital Gains Distributions . . . .. . . . . 7
Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Financial Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8
Additional Information and Assistance. . . . . . . . . . . Back Cover.
<PAGE>
Transamerica Variable Insurance Fund, Inc.
Growth Portfolio
THE PORTFOLIO AT A GLANCE
The following is a summary of the portfolio's goals, strategies, risks, intended
investors and performance. We cannot guarantee that the investment goals will be
achieved. The portfolio is managed by Transamerica Investment Management, LLC.
The performance shown for the portfolio assumes reinvestment of dividends. The
portfolio is only available through the purchase or variable annuity and
variable life insurance contracts. The performance of the portfolio does not
reflect any expenses or charges applicable to these variable insurance
contracts. We compare a portfolio's performance to a broad-based securities
market index. Performance figures for this index do not reflect any commissions
or fees, which you would pay if you purchased the securities represented by the
index. You cannot invest directly in the index. The performance data for the
index does not indicate the past or future performance of the portfolio.
Growth Portfolio
The portfolio seeks to maximize long-term growth.
It invests at least 65% of its assets in a diversified selection of equity
securities of domestic growth companies of any size. We look for companies we
consider to be premier companies that are under-valued in the stock market.
Your principal risk in investing in this portfolio is you could lose money. The
value of equity securities can fall due to the issuing company's poor financial
condition or bad general economic or market conditions. Since this portfolio
invests in equities, its performance may vary more than fixed income portfolio
over short periods.
The portfolio is intended for long-term investors who have the perspective,
patience, and financial ability to take on above-average stock market
volatility.
The following performance information provides some indication of the risks of
investing in the portfolio. We show annual returns, best and worst quarters, and
average annual total returns over the life of the portfolio. This portfolio is
the successor to Transamerica Occidental's Separate Account Fund C, a management
investment company funding vari-able annuities, through a reorganization on
November 1, 1996. Performance prior to November 1, 1996, is Transamerica
Occidental's Separate Account Fund C perfor-mance. Past performance is no
guarantee of future results.
Total Returns by Calendar Year
[Graph Omitted]
Best calendar quarter: 33.85% for quarter ending 12/31/99
Worst calendar quarter: -20.51% for quarter ending 9/30/90
Average Annual Total Returns (as of 12/31/99)
1 year 5 years 10 years
Growth Portfolio 37.79% 41.48% 26.79%
S&P 500 Index * 21.04% 28.56% 18.21%
* The Standard and Poor's 500 Index (S&P 500) consists of 500 widely held,
pub-licly traded common stocks.
<PAGE>
FEES AND EXPENSES
The table below provides a breakdown of the expenses you may pay if you buy and
hold shares of this portfolio. There is no sales charge (load) or other
transaction fees for the purchase of shares of the portfolio by insurance
companies which offer the portfolio as an investment option in their variable
insurance contracts. But, you may pay sales charges (loads) and other expenses
in connection with your ownership of the variable insurance contract through
which this portfolio is available. Investors do pay fees and expenses incurred
by the portfolio.
Annual Fund Operating Expenses
(as a percent of average net assets)
Total
Management Other Operating
Portfolio Fee Expenses Expenses
Growth 0.75% 0.15% 0.90%
The portfolio's total operating expenses above include the maximum management
fees, and other expenses that the portfolio incurred in 1999. However, in 1999
certain fee waivers by the Adviser were in place so that the management fee,
other expenses and total portfolio expenses experienced by the portfolio were
0.70%, 0.15%, 0.85%, respectively.
The Adviser has agreed to waive part of its management fee or reimburse other
operating expenses to ensure that annual total operating expenses for the
portfolio (other than inter-est, taxes, brokerage commissions and extraordinary
expenses) will not exceed this cap of 0.85%. The fee waivers and expense
assumptions may be terminated at any time without notice but are expected to
continue through 2000.
Example
The table below is to help you compare the cost of investing in this portfolio
with the cost of investing in other mutual funds. These examples assume that you
make a one-time investment of $10,000 and hold your shares for the time periods
indicated. The examples also assume that your investment has a 5% return each
year and that the portfolio's operating expenses remain the same as shown above.
The examples are based on expenses without fee waivers. The examples do not
reflect reinvestment of dividends and distri-butions. Costs are the same whether
you redeem at the end of any period or not. Although, your actual costs may be
higher or lower, based on these assumptions, your costs would be as follows.
These costs do not reflect any charges or expenses applicable to the variable
insurance contract through which this portfolio is available.
Investment Period
Portfolio 1 Year 3 Years 5 Years 10 Years
Growth $92 $287 $498 $1,108
<PAGE>
THE PORTFOLIO IN DETAIL
The following expands on the strategies, policies and risks described in The
Portfolio at a Glance. For more information about the performance of the
portfolio, see the Statement of Additional Information (SAI). You can get a free
copy of the SAI by asking us. The SAI includes the Annual Report. The Portfolio
in Detail.Transamerica Variable Insurance Fund, Inc.
GROWTH PORTFOLIO
Goal
Our goal is to maximize long-term growth.
Strategies
We use a "bottom up" approach to investing. We focus on identifying fundamental
change in it's early stages and invest-ing in premier companies. We believe in
long term investing and do not attempt to time the market. The portfolio is
con-structed one company at a time. Each company passes through our rigorous
research process and stands on it's own merits as a premier company.
We buy securities of companies we believe have the defining features of premier
growth companies that are under-valued in the stock market. Premier companies
have many or all of these features:
* Shareholder-oriented management * Dominance in market share * Cost production
advantages * Leading brands * Self-financed growth * Attractive reinvestment
opportunities
Policies
We invest at least 65% of the portfolio's assets in a diversified portfolio of
domestic equity securities. We do not limit its investments to any particular
type or size of company. The portfolio may also invest in cash or cash
equivalents for temporary defensive purposes when market conditions war-rant. To
the extent it is invested in these securities, the portfolio is not achieving
its investment objective.
Risks
Since the portfolio invests principally in equity securities, the value of its
shares will fluctuate in response to general eco-nomic and market conditions.
Financial risk comes from the possibility that current earnings of a company we
invest in may fall, or that its overall financial circumstances may decline,
causing the security to lose value.
This Portfolio Is Intended For:
Long-term investors who have the perspective, patience and financial ability to
take on above-average price volatility in pursuit of long-term capital growth.
INVESTMENT ADVISER & SUB-ADVISER
The Investment Adviser of the portfolio is Transamerica Investment Management,
LLC, or TIM or Adviser, at 1150 South Olive Street, Los Angeles, California
90015. Prior to January 1, 2000, the Adviser was Transamerica Occidental Life
Insurance Company, also at 1150 South Olive Street, Los Angeles. TIM was formed
as a Delaware limited liability company December 1, 1999. It is controlled by
Sub-Adviser Transamerica Investment Services, Inc. ("TIS"). TIM man-ages $12
billion in mutual funds, separate accounts, and pension assets previously
managed by TIS. Both Transamerica Investment Services, Inc., and former adviser
Transamerica Occidental Life Insurance Company are sub-sidiaries of Transamerica
Corporation, 600 Montgomery Street, San Francisco, California 94111.
Transamerica Cor-poration is a subsidiary of AEGON N. V., an international
insurance group.
The Adviser's duties include, but are not limited to, developing and
implementing an investment program for the Portfolios.
The Adviser is also responsible for the selection of brokers and dealers to
execute transactions for the portfolio. Some of these brokers or dealers may be
affiliated persons of the Adviser and Sub-Adviser. Although it is the policy of
the Adviser to seek the best price and execution for each trans-action, they may
give consideration to brokers and dealers who provide them with statistical
information, research and other services in addition to transaction services.
Advisory Fee
For its services to the portfolio, the Adviser receives an annual advisory fee
from the portfolio. This fee is based on the average daily net assets of the
portfolio. The fee is deducted daily from the assets of the portfolio. The fee
may be higher than the average advisory fee paid to the invest-ment advisers of
other similar portfolios. The amount of the advisory fee, payable under the
investment advisory agree-ment, is 0.75%. The Adviser may waive some or all of
the fee from time to time at its discretion. In 1999 the Adviser (then
Tranamerica Occidental Life Insurance Company) waived a portion of the advisory
fee and was paid 0.70% of the portfolio's average net assets.
The portfolio pays all the costs of its operations that are not assumed by the
Investment Adviser, including:
* Custodian;
* Legal;
* Auditing;
* Administration;
* Registration fees and expenses; and
* Fees and expenses of directors unaffiliated with the Investment Adviser.
<PAGE>
Sub-Adviser
Transamerica Investment Services, Inc., is the Sub-Adviser. The Sub-Adviser has
been in existence since 1967 and has provided investment advisory services to
investment compa-nies since 1968 and to Transamerica Corporation and affiliated
companies since 1981. The Sub-Adviser is located at 1150 South Olive Street, Los
Angeles, California 90015- 2211. The Sub-Adviser a wholly-owned subsidiary of
Transamerica Corporation which is owned by AEGON, N.V. The Sub-Adviser provides
investment research reports and information and other services at the request of
the Adviser.
Portfolio Manager
Management decisions for the portfolio are made by a team of expert managers and
analysts headed by a team leader (designated as primary manager) and his backup
(designated as co-manager). The team leader has primary responsibility for the
day-to-day decisions related to the portfolio. The transactions and performance
of the portfolio are reviewed by the Sub-Adviser's senior officers.
The following listing provides a brief biography of the primary manager and
co-manager for the portfolio:
Primary Manager since 1984: Jeffrey S. Van Harte, CFA, Senior Vice President and
Head of Equity Investments, Transamerica Investment Management, LLC., Vice
Presi-dent, Transamerica Investment Services, Inc. Manager of the Transamerica
Equity Fund and the Transamerica Premier Equity Fund since 1998. Was manager of
the Transamerica Balanced Fund from 1993 to 1998 and the Transamerica Premier
Balanced Fund from 1995 to 1998. Member of San Francisco Society of Financial
Analysts. B.A., California State University at Fullerton. Joined Transamerica in
1980.
Co-Manager since 1999: Gary U. Rolle',CFA,Executive Vice President and Chief
Financial Officer, Transamerica Investment Management, LLC. Executive Vice
President & Chief Investment Officer, Transamerica Investment Services. Chairman
& President, Transamerica Income Shares. Chief Investment Officer, Transamerica
Occidental Life Insurance and Transamerica Life Insurance & Annuity Companies.
Manager of the Transamerica Balanced Fund and Transamerica Premier Balanced Fund
since 1998. Co-Man-ager of the Transamerica Premier Equity Fund, Transamerica
Equity Fund and Fund A (both separate accounts), and Transamerica corporate
accounts. Former member of the Board of Governors of the Los Angeles Soci-ety of
Financial Analysts. B.S., University of California at Riverside. Joined
Transamerica in 1967.
<PAGE>
DETERMINATION OF NET ASSET VALUE
We normally determine the net asset value per share of the portfolio once daily
as of the close of regular trading on the New York Stock Exchange, currently
4:00 p.m. New York time. We do this each day when the New York Stock Exchange is
open. The New York Stock Exchange is sched-uled to be open Monday through Friday
throughout the year, except for certain holidays.
We calculate the net asset value by subtracting the portfolio's liabilities from
its total assets and dividing the result by the total number of shares
outstanding.
We generally determine the value of the portfolio securities and assets on the
basis of their market values. However, any short-term debt securities of the
portfolio having remaining maturities of sixty days or less are valued by the
amortized cost method, which approximates market value. Amortized cost involves
valuing an investment at its cost and assuming a constant amortization to
maturity of any discount or pre-mium, regardless of the effect of movements in
interest rates. We value investments for which market quotations are not readily
available at their fair value as determined in good faith by, or under authority
delegated by, the portfolio's Board of Directors.
OFFERING, PURCHASE AND REDEMPTION OF SHARES
We sell shares of the portfolio in a continuous offering to various insurance
companies. These insurance companies offer them as investment options in
variable annuity and variable life insurance contracts. The insurance companies
purchase and redeem shares of the portfolio at net asset value without sales or
redemption charges being imposed by the portfolio.
On each business day insurance companies purchase or redeem shares of the
portfolio based on the requests from their contract owners that have been
processed on that day. Insurance companies purchase and redeem shares at their
net asset value calculated at the end of that day, although such purchases and
redemptions may be executed the next business day.
If insurance companies purchase shares of a portfolio for variable life
insurance or qualified pension and retirement plans, a potential for certain
conflicts may exist between the interests of variable annuity contract owners,
variable life insurance contract owners and plan participants. We do not foresee
any disadvantage to owners of the annuity contracts arising from the fact that
shares of a portfolio might be held by such entities. However, in such an event,
the portfolio's Board of Directors will monitor the portfolio in order to
identify any material irreconcilable conflicts of interest which may possibly
arise, and to determine what action, if any, should be taken in response to such
conflicts.
INCOME, DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
o The portfolio distributes substantially all of its net invest-ment income in
the form of dividends to its shareholders.
o Dividends are made on a per share basis to shareholders of record as of the
distribution date, regardless of how long the shares have been held.
o Dividends, if any, are generally paid annually.
o Capital gains, if any, are generally distributed annually.
o If you buy shares just before or on a record date, you will pay the full price
for the shares and then you may receive a portion of the price back as a taxable
distribution.
TAXES
The portfolio qualifies as a regulated investment company under Subchapter M of
the Internal Revenue Code of 1986, as amended (the "Code"). The portfolio
intends to distribute substantially all of its net income and net capital gains
to its shareholders. As a result, under the provisions of subchapter M, there
should be little or no income or gains taxable to the portfolio. In addition,
the portfolio intends to comply with certain other distribution rules specified
in the Code so that it will not incur a 4% nondeductible federal excise tax that
otherwise would apply. For more information see Federal Tax Matters in the SAI.
The shareholders of the portfolio are insurance companies offering variable
insurance contracts. For information con-cerning federal income tax consequences
for owners of variable insurance contracts, see the prospectus for these
products.
<PAGE>
FINANCIAL HIGHLIGHTS
The following information is intended to help you understand the portfolio's
financial performance for the past five years.
Certain information reflects financial results for a single portfolio share. The
total returns in the table represent the rate the investor would have earned (or
lost) in that year, assuming reinvestment of all dividends and distributions.
This information has been audited by Ernst & Young LLP, independent auditors.
Their report, along with the portfolio's financial statements, are included in
the statement of additional information and annual report. See the back cover to
find out how to get the statement of additional information.
The Growth Portfolio was formerly Transamerica Occidental's Separate Account
Fund C. The former fund was reorganized on November 1, 1996, when all its assets
and liabilities were transferred to the newly created Growth Portfolio. The
financial infor-mation is presented as if the reorganization had always been in
effect. The activity prior to November 1, 1996, represents accumulated unit
values of Separate Account Fund C which have been converted to share values for
presentation purposes.
Selected data for a share outstanding throughout each period are as follows*
Year ended December 31,
1999 1998 1997 1996 1995
Net Asset Value
Beginning of period $ 19.360 $ 14.750 $ 10.930 $ 8.582 $ 5.615
Operations
Net investment loss (0.088) (0.013) (0.050) (0.065) (0.069)
Net realized and unrealized gain 7.395 6.380 5.130 2.413 3.036
Total from investment operations 7.307 6.367 5.080 2.348 2.967
Dividends/Distributions to Shareholders
Net realized gains (0.057) (1.757) (1.260) -- --
Net Asset Value
End of period $ 26.610 $ 19.360 $ 14.750 $ 10.930 $ 8.582
Total Return 37.79% 43.28% 46.50% 27.36% 52.84%
Ratios and Supplemental Data
Expenses to average net assets 1 0.85% 0.85% 0.85% 1.27% 1.41%
Net investment loss to average net assets 2
(0.49%) (0.32%) (0.39%) (0.68%) (0.94%)
Portfolio turnover rate 28.79% 34.41% 20.54% 34.58% 18.11%
Net assets, end of period (in thousands)
$ 238,655 $ 107,892 $ 46,378 $ 32,238 $ 25,738
* Prior to November 1, 1996, activity represents accumulated unit values of
Transamerica Occiidental's Separate Account Fund C which have been
converted to share values for presentation purposes.
1 If the Investment Adviser had not waived expenses, the ratio of operating
expenses to average net assets would have been 0.90%, 0.96%, 0.98% and
1.34% for the years ended December 31, 1999, 1998, 1997 and 1996,
respectively.
2 If the Investment Adviser had not waived expenses, the ratio of net
investment loss to average net assets would have been (0.55%), (0.44%),
(0.52%) and (0.75%) for the years ended December 31, 1999, 1998, 1997 and
1996, respectively.
<PAGE>
TRANSAMERICA INVESTMENT MANAGEMENT
1150 S. Olive Street, 27th Floor
Los Angeles, CA 90015
Transamerica Securities Sales Corporation, Distributor
ADDITIONAL INFORMATION AND
ASSISTANCE
You may get more information, at no charge, about this portfolio by requesting
the following:
Annual and Semi-Annual Report
These reports describe the portfolio's performance and list its holdings. The
annual report discusses the market conditions and the portfolio manager's
strategies that significantly affected the portfolio's performance during the
last fiscal year.
Statement of Additional Information (SAI)
This document gives additional information about the portfolio. The SAI was
filed with the Securities and Exchange Commis-sion (SEC) and is incorporated by
reference as part of the prospectus. The audited annual report is a part of the
SAI.
To Obtain Information from Us
* Call 1-800-258-4260
* Write to Transamerica Service Center, 401 North Tryon Street, Suite 700,
Charlotte, North Carolina 28202.
* Visit our Internet web site at http://www.transamerica.com
To Obtain Information from the SEC
* Visit the SEC, Public Reference Room, Washington, D.C.
to review or copy the prospectus and SAI
* Call 1-800-SEC-0330
* Visit the SEC's Internet web site at http://www.sec.gov
* Write to Securities and Exchange Commission, Public
Reference Section, Washington, D.C. 20549-6009 for copies
of these documents (requires you to pay a duplicating fee)
SEC file number: 811-9216
VIM 527-0500
