Transamerica Premier Portfolio of Funds
Investor & Adviser Class Shares
Transamerica Investors
Annual Report for the
Period Ending December 31, 1995
People. Performance. Portfolios.
Table of Contents
Transamerica Investors Annual Report for the
Period Ending December 31, 1995
Presidents Report 3
Investment Management Reports
Transamerica Premier Equity Fund 4
Transamerica Premier Index Fund 4
Transamerica Premier Bond Fund 5
Transamerica Premier Short-Intermediate
Government Fund 5
Transamerica Premier Balanced Fund 6
Transamerica Premier Cash Reserve Fund 6
Schedules of Investments
Transamerica Premier Equity Fund 7
Transamerica Premier Index Fund 8
Transamerica Premier Bond Fund 15
Transamerica Premier Balanced Fund 16
Transamerica Premier Short-Intermediate
Government Fund 18
Transamerica Premier Cash Reserve Fund 19
Financial Statements
Statements of Assets & Liabilities 20
Statements of Operations 21
Statements of Changes in Net Assets 22
Financial Highlights 23
Notes to Financial Statements 25
Independent AuditorOs Report 30
PresidentOs Report
Dear Fellow Shareholders:
I am both pleased and excited to deliver this first report to
shareholders since the launch of our new company N Transamerica Investors N and
the introduction of the Transamerica Premier Portfolio of Funds.
The establishment of Transamerica Investors marked the fulfillment of
our quest to create a quality mutual fund program that brings our years of
institutional investment expertise to the individual and makes it easier for
everyone to invest. We thank you for joining us, and we look forward to our
first full year of providing the services and expertise to help you advance your
individual investment objectives.
The Transamerica Premier Portfolio of Funds, introduced on October 2,
1995, is a carefully diversified family of funds managed by Transamerica
Investment Services N the same investment professionals who for more than 10
years have managed the segregated investment accounts for TransamericaOs pension
clients.
Healthy economic growth through most of 1995 led to robust corporate
profits and sharply higher stock prices. Stock market valuations were enhanced
by the persistent decline in long-term interest rates. Likewise, inflation was
subdued with no signs of acceleration.
Looking ahead to 1996, we believe there will be a re-acceleration of
economic growth during the second half, despite the slower growth early in the
year. Continuing trends set in 1995, a climate of subdued inflation should allow
for a further decline in interest rates as the year unfolds, spurring that
economic re-acceleration.
Shareholders can also expect an increasing level of convenience in
monitoring our performance. Leading financial publications currently include the
Transamerica Premier Cash Reserve Fund (Investor Class) in their weekly
listings, and listings of our other funds will follow as threshold levels are
attained. Also on the horizon, watch for the introduction of Transamerica
InvestorsO home page on the Internet.
We are proud of having established Transamerica Investors. Again, thank
you for joining us. We feel privileged to serve your investment needs.
Respectfully,
Nicki Bair, President
Investment Management Report N Equity Funds
Transamerica Premier Equity Fund
Portfolio Manager Glen E. Bickerstaff Comments
OOur strategy is to invest in premier companies with strong managements that are
taking advantage of their leading competitive positions to gain market share,
grow profits, and increase shareholder returns. Companies are identified for
investment where senior managers have developed specific plans to capitalize on
the changes in their industries and positioned their companies to benefit from
major sustainable trends. Specific areas of investment include those designed to
capitalize on at least three major trends. Demand for financial and investment
services will be growing into the next century as baby boomers save more
aggressively for retirement. The drive to reduce costs in corporations leads to
capital investments in technology intended to streamline operations and increase
worker productivity. Companies which are restructuring to reduce costs and
enhance market share will benefit from the renewed economic growth we are
anticipating later in the year. During the quarter ended December 31, 1995, the
initial quarter of operation, the Transamerica Premier Equity Fund (Investor
Class) declined 1.80% while the S&P 500 rose 6.02%.O
Performance Highlights (10/2/95 -D 12/31/95)
Performance Highlights (10/2/95 -D 12/31/95)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* (1.80)% (1.90)%
NAV per share at 12/31/95 $9.82 $9.81
$10,000 invested in the Premier Equity Fund (10/2/95 -D 12/31/95)**
[CHART]
Transamerica Premier Index Fund
Portfolio Manager Christopher J. Bonavico Comments
OThe Transamerica Premier Index FundOs goal is to offer investors the ability to
track overall stock market returns as measured by the S&P 500 Index. The Fund
offers investors the attractive long term appreciation potential of the stock
market.
For the three-month period ending December 31, 1995, the Transamerica Premier
Index Fund (Investor Class) has earned a return of 5.90% after fees relative to
a 6.02% total return for the S&P 500. To achieve its goal, the Fund invests in
those stocks that make up the S&P 500 Index as well as in fixed income
investments and stock index futures as of 12/31/95.
In 1996 we expect continued positive returns for equity investors. While the
earnings performance of individual companies is important to stock valuations,
the long term trend of lower global inflation and interest rates is in place
supporting higher overall equity market values.O
The Transamerica Premier Index Fund is not sponsored, endorsed, sold or promoted
by Standard & PoorOs Corporation. Performance Highlights (10/2/95 -D 12/31/95)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 5.90% 5.80%
NAV per share at 12/31/95 $10.59 $10.58
$10,000 invested in the Premier Index Fund (10/2/95 -D 12/31/95)**
[CHART]
The Standard & PoorOs 500 Composite Stock Price Index (OS&P 500O) consists of
500 widely held, publicly traded common stocks. The S&P 500 Index does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents. *Total return for the period from
October 2, 1995 (commencement of operations) through December 31, 1995.
**Hypothetical illustration of $10,000 invested at inception (October 2, 1995),
assuming reinvestment of dividends and capital gains at net asset value through
December 31, 1995. Note: All performance information cited here and on the
following pages represents past performance and is not indicative of future
results. If the Investment Adviser had not waived fees and the Administrator had
not reimbursed expenses, the aggregate total returns of the Funds would have
been lower. Investment Management Report N Bond Funds Transamerica Premier Bond
Fund Portfolio Manager Sharon K. Kilmer Comments OThe Transamerica Premier Bond
Fund is well positioned to benefit from low inflation and slow economic growth.
We expect that the Federal Reserve will continue to push short-term rates lower,
that long-term rates will decline as well, and we believe that a fund with
longer maturities will benefit most. The Fund owns bonds of high quality
companies and of companies with improving credit fundamentals. In order to
capitalize on our research expertise, the FundOs investment in longer maturity
bonds, which have more price volatility, will also appreciate more when credits
are upgraded by the rating agencies. A large percentage of the portfolio is
invested in industrial companies in the manufacturing, paper and forest
products, and transportation sectors, where many of the credit upgrades are
taking place as corporate restructurings are increasing productivity.
For the three-month period ending December 31, 1995, the Fund (Investor Class)
had a total return of 4.82%, versus 4.66% for the Lehman Brothers
Government/Corporate Bond Index over the same period.O
Performance Highlights (10/2/95 -D 12/31/95)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 4.82% 4.69%
NAV per share at 12/31/95 $10.37 $10.37
$10,000 invested in the Premier Bond Fund (10/2/95 -D 12/31/95)**
Transamerica Premier
Short-Intermediate Government Fund
Portfolio Manager Kevin J. Hickam Comments
OThe Transamerica Premier Short-Intermediate Government Fund (Investor Class)
posted a total return of 3.49% in its inaugural quarter, outpacing the 3.34%
return of the Lehman Brothers Intermediate-Term Government Bond Index.
The Fund is actively managed to provide a high level of income while attempting
to control price volatility. We closely follow economic activity, fiscal policy,
and monetary policy to develop an interest rate outlook.
As we enter 1996, the FundOs average maturity is longer than that of the Lehman
Brothers Index. This will help the Fund to earn more income and achieve greater
price appreciation as interest rates decline.
Additionally, a sizable portion of the FundOs assets are currently invested in a
narrow range of maturities to benefit from a steepening of the yield curve which
occurs when short-term interest rates decline more than long-term interest
rates. This is what we expect to happen as the Federal Reserve drops short-term
interest rates this year.O
Performance Highlights (10/2/95 -D 12/31/95)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 3.49% 3.37%
NAV per share at 12/31/95 $10.25 $10.25
$10,000 invested in the Premier Short-Intermediate
Government Fund (10/2/95 -D 12/31/95)**
[CHART]
The Lehman Brothers Government/Corporate Bond Index is a broad-based unmanaged
index of all government and corporate bonds that are investment grade with at
least one year to maturity. The Lehman Brothers Government/Corporate Bond Index
does not reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents. The Lehman Brothers Intermediate-Term
Government Bond Index is comprised of all publicly issued, non-convertible debt
of the U.S. government or any agency thereof, quasi-federal corporations, and
corporate debt guaranteed by the U.S. government with a maturity of between one
and ten years. *Total return for the period from October 2, 1995 (commencement
of operations) through December 31, 1995. **Hypothetical illustration of $10,000
invested at inception (October 2, 1995), assuming reinvestment of dividends and
capital gains at net asset value through December 31, 1995. Note: All
performance information cited here and on the following pages represents past
performance and is not indicative of future results. If the Investment Adviser
had not waived fees and the Administrator had not reimbursed expenses, the
aggregate total returns of the Funds would have been lower.
Investment Management Report N Other Funds
Transamerica Premier Balanced Fund
Portfolio Managers Jeffery S. Van Harte and Sharon K. Kilmer Comment
OThe Transamerica Premier Balanced Fund (Investor Class) increased its net asset
value to $10.23, up from its initial offering price of $10.00 per share. The
FundOs return for the quarter was 2.30%, compared to returns of 6.02% and 4.66%
for the S&P 500 Index and the Lehman Brothers Government/Corporate Bond Index,
respectively. At the end of the year, the FundOs portfolio mix was 58% common
stocks, 38% bonds, and 4% cash. The Fund invests with a long-term time horizon
in the stocks and bonds of OpremierO companies. OPremierO to us means companies
that are leaders in their respective industries and that possess excellent
managements. We also try to identify fundamental changes that are taking place
over a long period of time, and we invest in those changes. Generally, stock
selection will focus on companies that grow by selling more products and taking
market share, not raising prices. The FundOs bond component is invested in
intermediate maturity securities of premier companies with improving credit
fundamentals. The intermediate maturity structure of the bond component is
intended to offset the more volatile nature of the equity component.O
Performance Highlights (10/2/95 -D 12/31/95)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 2.30% 2.20%
NAV per share at 12/31/95 $10.23 $10.22
$10,000 invested in the Premier Balanced Fund (10/2/95 -D 12/31/95)**
Transamerica Premier Cash Reserve Fund
Portfolio Manager Kevin J. Hickam Comments
OThe Transamerica Premier Cash Reserve Fund is dedicated to providing investors
with the highest money market returns while investing in only high-quality money
market securities because safety of principal is our number one priority. To
this end, prior to purchasing a security, we thoroughly research the issuer to
ensure that they meet our stringent quality standards. The Federal Reserve is
expected to cut interest rates during 1996. In order to cushion the impact of
falling short-term interest rates on the FundOs yield, we plan to maintain the
FundOs maturity at the longer end of its maturity range. In this way we are able
to enhance the FundOs yield by delaying the rollover of assets in a declining
rate environment. The Fund will remain invested in high-quality, liquid money
market securities.
The FundOs (Investor Class) return for the quarter was 1.39%, compared with a
return of 1.31% for its index.O
The Fund is neither insured nor guaranteed by the U.S. government, and there can
be no assurance that the Fund will be able to maintain a stable net asset value
of $1.00 per share.
Performance Highlights (10/2/95 - 12/31/95)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 1.39% 1.26%
NAV per share at 12/31/95 $1.00 $1.00
$10,000 invested in the Premier Cash Reserve Fund (10/2/95 -D 12/31/95)**
The Standard & PoorOs 500 Composite Stock Price Index (OS&P 500O)consists of 500
widely held, publicly traded common stocks. The Lehman Brothers
Government/Corporate Bond Index is a broad-based unmanaged index of all
government and corporate bonds that are investment grade with at least one year
to maturity. The Standard & PoorOs 500 Composite Stock Price Index and the
Lehman Brothers Government/Corporate Bond Index do not reflect any commissions
or fees which would be incurred by an investor purchasing the securities
represented by each index. The IBCOs Money Fund Report(a) NAll Taxable, First
Tier is a composite of taxable money market funds that meet the SECOs definition
of first tier securities contained in Rule 2a-7 under the Investment Company Act
of 1940. The IBCOs Money Fund Report(a) NAll Taxable, First Tier does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents. *Total return for the period from
October 2, 1995 (commencement of operations) through December 31, 1995.
**Hypothetical illustration of $10,000 invested at inception (October 2, 1995),
assuming reinvestment of dividends and capital gains at net asset value through
December 31, 1995. Note: All performance information cited here and on the
following pages represents past performance and is not indicative of future
results. If the Investment Adviser had not waived fees and the Administrator had
not reimbursed expenses, the aggregate total returns of the Funds would have
been lower.
Schedule of Investments
Transamerica Premier Equity Fund December 31, 1995
shares value
COMMON STOCKS - 94.4%
Business Services - 11.9%
Automatic Data Processing Incorporated 4,000 $ 297,000
CUC International Incorporated (a) 12,500 426,562
First Data Corporation 9,000 601,875
1,325,437
Hotels & Restaurants - 11.0%
Host Marriott Corporation (a) 25,000 331,250
Marriot International Incorporated 9,000 344,250
Mirage Resorts Incorporated (a) 16,000 552,000
1,227,500
Electronics - 11.0%
Intel Corporation 7,500 425,625
Molex Incorporated 11,000 336,875
Motorola Incorporated 8,000 456,000
1,218,500
Communication Services - 10.4%
Silver King Communications
Incorporated (a) 20,000 695,000
Tele Communications Incorporated (a) 23,000 457,125
1,152,125
Industrial Machinery - 9.4%
Briggs & Stratton Corporation 13,000 563,875
Cincinnati Milacron Incorporated 2,000 52,500
Magna International Incorporated 10,000 432,500
1,048,875
Financial Services - 8.8%
Countrywide Credit Industries
Incorporated 15,000 326,250
Merrill Lynch & Company Incorporated 6,000 306,000
Schwab (Charles) Corporation 17,000 342,125
974,375
Software - 7.8%
Autodesk Incorporated 8,000 274,000
Broderbund Software Incorporated (a) 4,000 243,000
Microsoft Corporation (a) 4,000 351,000
868,000
Leisure Time - 4.2%
Disney (Walt) Company 8,000 472,000
Automobiles - 4.0%
General Motors Corporation 8,500 449,438
Insurance - 3.3%
American International Group
Incorporated 4,000 370,000
Plastics - 3.2%
Illinois Tool Works Incorporated 6,000 354,000
Computers & Business Equipment - 3.2%
Cisco Systems Incorporated (a) 1,000 74,625
Dell Computer Corporation (a) 8,000 277,000
351,625
shares value
Telecommunications - 2.8%
Airtouch Communications
Incorporated (a) 11,000 $ 310,750
Drugs & Health Care - 2.7%
Columbia / HCA Healthcare
Corporation 6,000 304,500
Industrials - 0.7%
Mallinckrodt Group Incorporated 2,000 72,750
TOTAL COMMON STOCKS
(Cost $10,736,937) 10,499,875
principal
amount value
REPURCHASE AGREEMENT - 5.2% State Street Bank and Trust Company, 5.25%, due
01/02/1996 (collateralized by $580,000 par value U.S. Treasury Notes, 7.625%,
due 04/30/1996, with a value of $591,943) (Cost $579,000) $579,000 579,000 TOTAL
INVESTMENTS - 99.6% (Cost $11,315,937*) 11,078,875 OTHER ASSETS LESS LIABILITIES
- - 0.4% 48,501 NET ASSETS - 100.0% $11,127,376 (a) non-income producing security
*Aggregate cost for Federal tax purposes. 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 $146,668 and $383,730,
respectively. Net unrealized depreciation for tax purposes is $237,062. See
notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund December 31, 1995
shares value
COMMON STOCKS - 76.8%
Drugs & Health Care - 6.4%
Abbott Labs 740 $ 30,895
Allergan Incorporated 60 1,950
Alza Corporation (a) 77 1,906
American Home Products Corporation 289 28,033
Amgen Incorporated (a) 247 14,666
Bard (C R) Incorporated 49 1,580
Bausch & Lomb Incorporated 53 2,100
Baxter International Incorporated 258 10,804
Becton Dickinson & Company 61 4,575
Beverly Enterprises Incorporated (a) 92 978
Biomet Incorporated (a) 107 1,913
Bristol Myers Squibb Company 473 40,619
Columbia / HCA Healthcare Corporation 414 21,010
Community Psychiatric Centers 41 502
Johnson & Johnson 602 51,546
Lilly (Eli) & Company 514 28,912
Manor Care Incorporated 58 2,030
Medtronic Incorporated 216 12,069
Merck & Company Incorporated 1,153 75,810
Pfizer Incorporated 589 37,107
Pharmacia & Upjohn Incorporated 449 17,399
Schering Plough Corporation 347 18,998
St. Jude Medical Incorporated (a) 64 2,752
Tenet Healthcare Corporation (a) 186 3,859
United Healthcare Corporation 162 10,611
United States Healthcare Incorporated 144 6,696
United States Surgical Corporation 53 1,133
Warner Lambert Company 126 12,238
442,691
Oil - 5.1%
Amerada Hess Corporation 87 4,611
Amoco Corporation 463 33,278
Ashland Incorporated 59 2,072
Atlantic Richfield Company 150 16,612
Chevron Corporation 608 31,920
Exxon Corporation 1,158 92,785
Kerr McGee Corporation 48 3,048
Louisiana Land & Exploration Company 31 1,329
Mobil Corporation 369 41,328
Occidental Petroleum Corporation 297 6,348
Pennzoil Company 43 1,817
Phillips Petroleum Company 244 8,327
Royal Dutch Petroleum Company 500 70,562
Sun Incorporated 70 1,916
Tenneco Incorporated 169 8,387
Texaco Incorporated 242 18,997
Unocal Corporation 230 6,699
USX Marathon Group 277 5,402
355,438
shares value
Telecommunications - 4.9%
Airtouch Communications
Incorporated (a) 461 $ 13,023
Alltel Corporation 176 5,192
Ameritech Corporation 517 30,503
AT & T Corporation 1,479 95,765
Bell Atlantic Corporation 407 27,218
Bellsouth Corporation 926 40,281
GTE Corporation 904 39,776
MCI Communications Corporation 632 16,511
NYNEX Corporation 398 21,492
Pacific Telesis Group 399 13,417
Sprint Corporation 325 12,960
United States West
Communications Group 439 15,694
United States West Media Group (a) 439 8,341
340,173
Food & Beverages - 3.9%
Archer Daniels Midland Company 505 9,090
Campbell Soup Company 233 13,980
Coca Cola Company 1,176 87,318
Conagra Incorporated 229 9,446
CPC International Incorporated 136 9,333
General Mills Incorporated 148 8,547
Heinz (H J) Company 340 11,262
Hershey Foods Corporation 72 4,680
Kellogg Company 204 15,759
Pepsico Incorporated 734 41,012
Pioneer Hi-Bred International
Incorporated 78 4,339
Quaker Oats Company 125 4,313
Ralston Purina Company 97 6,050
Sara Lee Corporation 447 14,248
Sysco Corporation 170 5,525
Unilever N V 149 20,972
Whitman Corporation 98 2,279
Wrigley (Wm) Junior Company 108 5,670
273,823
Banking - 3.9%
Banc One Corporation 368 13,892
Bank New York Incorporated 179 8,726
Bank of Boston Corporation 104 4,810
Bankamerica Corporation 349 22,598
Bankers Trust New York Corporation 73 4,855
Barnett Banks Incorporated 91 5,369
Boatmens Bancshares Incorporated 117 4,782
Chase Manhattan Corporation 163 9,882
Chemical Banking Corporation 235 13,806
Citicorp 371 24,950
Comerica Incorporated 100 4,013
Corestates Financial Corporation 130 4,924
First Bank Systems Incorporated 100 4,962
Schedule of Investments
Transamerica Premier Index Fund December 31, 1995 N Continued
shares value
Banking - continued
First Chicago NBD Corporation 297 $ 11,731
First Fidelity Bancorp 75 5,653
First Interstate Bancorp 71 9,691
First Union Corporation 160 8,900
Keycorp 212 7,685
MBNA Corporation 138 5,089
Mellon Bank Corporation 137 7,364
Morgan (J P) & Company Incorporated 175 14,044
National City Corporation 137 4,538
Nationsbank Corporation 253 17,615
Norwest Corporation 303 9,999
PNC Bank Corporation 315 10,159
Republic New York Corporation 52 3,231
Suntrust Banks Incorporated 107 7,329
United States Bancorp 142 4,775
Wachovia Corporation 160 7,320
Wells Fargo & Company 45 9,720
272,412
Retail - 2.5%
Charming Shoppes Incorporated 96 276
Circuit City Stores Incorporated 90 2,486
Dayton Hudson Corporation 67 5,025
Dillard Department Stores Incorporated 105 2,993
Federated Department Stores
Incorporated (a) 200 5,500
Gap Incorporated 134 5,628
Handleman Company 31 178
Home Depot Incorporated 444 21,256
K Mart Corporation 428 3,103
Limited Incorporated 333 5,786
Longs Drug Stores Corporation 19 910
Lowes Companies Incorporated 149 4,991
May Department Stores Company 232 9,802
Melville Corporation 98 3,014
Mercantile Stores Incorporated 34 1,573
Nordstrom Incorporated 77 3,118
Penney (J C) Incorporated 212 10,096
Pep Boys Manny Moe & Jack 57 1,461
Price Costco Incorporated (a) 182 2,776
Rite Aid Corporation 78 2,672
Sears Roebuck & Company 363 14,157
Supervalu Incorporated 64 2,016
TJX Companies Incorporated 68 1,284
Toys R Us Incorporated (a) 258 5,611
Wal Mart Stores Incorporated 2,142 47,927
Walgreen Company 230 6,871
Woolworth Corporation 124 1,612
172,122
Computers & Business Equipment - 2.4%
3Com Corporation (a) 150 6,581
Amdahl Corporation (a) 111 944
Seenotes to financial statements.
shares value
Cabletron Systems Incorporated (a) 67 $ 5,427
Ceridian Corporation (a) 43 1,774
Cisco Systems Incorporated (a) 253 18,880
Compaq Computer Corporation (a) 246 11,808
Cray Research Incorporated (a) 24 594
Data General Corporation (a) 35 481
Digital Equipment Corporation (a) 137 8,785
Hewlett Packard Company 477 39,949
Intergraph Corporation (a) 43 677
International Business Machines 530 48,627
Pitney Bowes Incorporated 141 6,627
Tandem Computers Incorporated (a) 108 1,148
Tandy Corporation 61 2,531
Unisys Corporation (a) 160 900
Xerox Corporation 100 13,700
169,433
Electrical Equipment - 2.3%
Boston Scientific Corporation (a) 141 6,909
Cooper Industries Incorporated 100 3,675
Emerson Electric Company 209 17,086
General Electric Company 1,580 113,760
General Signal Corporation 44 1,424
Grainger (W W) Incorporated 47 3,114
Johnson Controls Incorporated 38 2,612
Millipore Corporation 42 1,727
National Service Industries Incorporated 45 1,457
Raychem Corporation 41 2,332
Westinghouse Electric Corporation 366 6,039
160,135
Electric Utilities - 2.3%
American Electric Power Incorporated 173 7,006
Baltimore Gas & Electric Company 138 3,933
Carolina Power & Light Company 145 5,003
Central & South West Corporation 179 4,990
Cinergy Corporation 145 4,441
Consolidated Edison Company
Incorporated 219 7,008
Detroit Edison Company 137 4,727
Dominion Resources Incorporated 162 6,683
Duke Power Company 191 9,049
Entergy Corporation 212 6,201
FPL Group Incorporated 173 8,023
General Public Utilities Corporation 108 3,672
Houston Industries Incorporated 244 5,917
Niagara Mohawk Power Corporation 135 1,299
Northern States Power Company 63 3,095
Ohio Edison Company 142 3,337
P P & L Resources Incorporated 100 2,500
Pacific Gas & Electric Company 396 11,236
Pacificorp 265 5,631
Peco Energy Company 207 6,236
Public Service Enterprise Group 228 6,982
See notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund December 31, 1995 N Continued
shares value
Electric Utilities - continued
SCEcorp 416 $ 7,384
Southern Company 621 15,292
Texas Utilities Company 211 8,677
Unicom Corporation 200 6,550
Union Electric Company 95 3,966
158,838
Electronics - 2.3%
Advanced Micro Devices Incorporated (a) 97 1,601
AMP Incorporated 203 7,790
Andrew Corporation (a) 36 1,377
Apple Computer 113 3,602
DSC Communications Corporation (a) 107 3,946
EG & G Incorporated 49 1,188
Harris Corporation 36 1,966
Honeywell Incorporated 119 5,786
Intel Corporation 768 43,584
Loral Corporation 160 5,660
LSI Logic Corporation (a) 150 4,912
Micron Technology Incorporated 192 7,608
Motorola Incorporated 550 31,350
National Semiconductor Corporation (a) 115 2,559
Perkin Elmer Corporation 39 1,472
Raytheon Company 228 10,773
Scientific Atlanta Incorporated 72 1,080
Silicon Graphics Incorporated (a) 148 4,070
Tektronix Incorporated 31 1,523
Teledyne Incorporated 52 1,333
Tellabs Incorporated (a) 82 3,034
Texas Instruments Incorporated 175 9,056
Thomas & Betts Corporation 18 1,328
156,598
Financial Services - 2.1%
Allstate Corporation 418 17,190
American Express Company 455 18,826
Beneficial Corporation 49 2,285
Dean Witter Discover & Company 157 7,379
Federal Home Loan Mortgage Corporation 169 14,111
Federal National Mortgage Association 254 31,528
Fleet Financial Group Incorporated 239 9,739
Household International Incorporated 91 5,380
Merrill Lynch & Company Incorporated 164 8,364
Morgan Stanley Group Incorporated 72 5,805
Salomon Incorporated 99 3,515
Travelers Group Incorporated 298 18,737
142,859
Insurance - 1.9%
Aetna Life & Casualty Company 106 7,340
Alexander & Alexander Services 41 779
American General Corporation 191 6,661
American International Group
Incorporated 442 40,885
shares value
Chubb Corporation 81 $ 7,837
Cigna Corporation 68 7,021
General Re Corporation 76 11,780
ITT Hartford Group Incorporated (a) 108 5,225
Jefferson Pilot Corporation 66 3,069
Lincoln National Corporation Incorporated 88 4,730
Loews Corporation 110 8,621
Marsh & McLennan Companies
Incorporated 68 6,035
Providian Corporation 89 3,627
Safeco Corporation 118 4,071
St. Paul Companies Incorporated 79 4,394
Torchmark Incorporated 67 3,032
Transport Holdings Incorporated (a) 1 41
Unum Corporation 68 3,740
US Life Corporation 32 956
USF & G Corporation 104 1,755
131,599
Chemicals - 1.9%
Air Products & Chemicals Incorporated 104 5,486
Dow Chemical Company 251 17,664
Du Pont (E I) De Nemours & Company 517 36,125
Eastman Chemical Company 76 4,759
First Mississippi Corporation 19 503
FMC Corporation (a) 34 2,299
Goodrich (B F) Company 24 1,635
Grace (W R) & Company 88 5,203
Great Lakes Chemical Corporation 60 4,320
Hercules Incorporated 104 5,863
Mallinckrodt Group Incorporated 71 2,583
Monsanto Company 107 13,107
Morton International Incorporated 138 4,951
Nalco Chemical Company 63 1,898
PPG Industries Incorporated 189 8,647
Praxair Incorporated 129 4,338
Rohm & Haas Company 63 4,056
Sigma-Aldrich Corporation 46 2,277
Union Carbide Corporation 128 4,800
130,514
Household Appliances & Products - 1.7%
Bassett Furniture Industries Incorporated 13 302
Black & Decker Corporation 80 2,820
Clorox Company 50 3,581
Colgate Palmolive Company 136 9,554
Corning Incorporated 214 6,848
Gillette Company 413 21,528
Maytag Corporation 100 2,025
Newell Company 148 3,829
Procter & Gamble Company 641 53,203
Rubbermaid Incorporated 147 3,748
Snap-On Incorporated 38 1,720
Stanley Works 41 2,112
See notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund December 31, 1995 N Continued
shares value
Household Appliances & Products - continued
Whirlpool Corporation 69 $ 3,674
Zenith Electronics Corporation (a) 20 138
115,082
Aerospace & Defense - 1.4%
Boeing Company 319 25,002
Computer Sciences Corporation (a) 52 3,653
General Dynamics Corporation 59 3,488
Lockheed Martin Corporation 187 14,773
McDonnell Douglas Corporation 105 9,660
Northrop Grumman Corporation 46 2,944
Rockwell International Corporation 202 10,681
Sun Microsystems Incorporated (a) 178 8,121
TRW Incorporated 61 4,727
United Technologies Corporation 115 10,911
93,960
Automobiles - 1.3%
Chrysler Corporation 357 19,769
Ford Motor Company 1,002 29,058
General Motors Corporation 697 36,854
Paccar Incorporated 36 1,516
87,197
Software - 1.2%
Autodesk Incorporated 44 1,507
Computer Associates International
Incorporated 224 12,740
Microsoft Corporation (a) 546 47,911
Novell Incorporated (a) 344 4,902
Oracle Systems Corporation (a) 404 17,120
Shared Medical Systems Corporation 22 1,196
85,376
Tobacco - 1.2%
American Brands Incorporated 176 7,854
Philip Morris Companies Incorporated 783 70,862
Schweitzer-Mauduit International
Incorporated (a) 15 347
UST Incorporated 182 6,074
85,137
Paper & Forest Products - 1.1%
Alco Standard Corporation 104 4,745
Boise Cascade Corporation 45 1,558
Champion International Corporation 90 3,780
Federal Paper Board Incorporated 43 2,231
Georgia Pacific Corporation 85 5,833
International Paper Company 237 8,976
James River Corporation 77 1,858
Kimberly Clark Corporation 259 21,432
Louisiana Pacific Corporation 101 2,449
Mead Corporation 50 2,613
Potlatch Corporation 27 1,080
Stone Container Corporation 89 1,279
Union Camp Corporation 65 3,096
shares value
Westvaco Corporation 94 $ 2,609
Weyerhaeuser Company 190 8,217
Willamette Industries Incorporated 51 2,869
74,625
Business Services - 0.8%
Automatic Data Processing Incorporated 134 9,949
Block (H & R) Incorporated 98 3,969
CUC International Incorporated (a) 162 5,528
De Luxe Corporation 77 2,233
Donnelley (R R) & Sons Company 143 5,631
Ecolab Incorporated 60 1,800
First Data Corporation 211 14,111
Humana Incorporated (a) 200 5,475
Interpublic Group Companies
Incorporated 73 3,166
Ogden Corporation 46 983
Safety Kleen Corporation 54 844
Service Corporation International 90 3,960
57,649
Communication Services - 0.8%
Northern Telecom Limited 237 10,191
SBC Communications Incorporated 568 32,660
Tele Communications Incorporated (a) 609 12,104
54,955
Conglomerates - 0.7%
Allied Signal Incorporated 264 12,540
Harcourt General Incorporated 68 2,848
Minnesota Mining & Manufacturing
Company 392 25,970
Textron Incorporated 79 5,332
46,690
Railroads & Equipment - 0.7%
Burlington Northern Santa Fe 132 10,296
Conrail Incorporated 73 5,110
CSX Corporation 196 8,942
Norfolk Southern Corporation 122 9,684
Union Pacific Corporation 191 12,606
46,638
Hotels & Restaurants - 0.6%
Darden Restaurants Incorporated 147 1,746
Dial Corporation 87 2,577
Hilton Hotels Corporation 45 2,767
LubyOs Cafeterias Incorporated 22 490
Marriot International Incorporated 117 4,475
McDonaldOs Corporation 648 29,241
RyanOs Family Steak Houses Incorporated (a) 50 350
ShoneyOs Incorporated (a) 39 400
WendyOs International Incorporated 95 2,019
44,065
Leisure Time - 0.6%
Bally Entertainment Group (a) 44 616
Brunswick Corporation 89 2,136
See notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund December 31, 1995 N Continued
shares value
Leisure Time - continued
Disney (Walt) Company 486 $28,674
Harrahs Entertainment Incorporated (a) 96 2,328
ITT Corporation (a) 108 5,724
King World Productions Incorporated (a) 34 1,322
Outboard Marine Corporation 19 387
41,187
Broadcasting - 0.5%
Capital Cities/ABC Incorporated 144 17,766
Comcast Corporation 224 4,074
Viacom Incorporated (a) 337 15,965
37,805
Gas & Pipeline Utilities - 0.5%
Coastal Corporation 98 3,650
Columbia Gas Systems Incorporated (a) 47 2,062
Consolidated Natural Gas Company 87 3,948
Eastern Enterprises 19 670
Enron Corporation 235 8,959
Enserch Corporation 64 1,040
Nicor Incorporated 47 1,292
Oneok Incorporated 25 572
Pacific Enterprise 79 2,232
Panhandle Eastern Corporation 140 3,902
Peoples Energy Corporation 33 1,048
Sonat Incorporated 81 2,886
Williams Companies Incorporated 95 4,168
36,429
Gold & Mining - 0.5%
Barrick Gold Corporation 329 8,677
Cyprus Amax Minerals Company 86 2,247
Echo Bay Mines Limited 105 1,089
First Mississippi Gold, Incorporated (a) 13 289
Freeport McMoRan Copper & Gold 190 5,344
Homestake Mining Company 129 2,016
Newmont Mining Corporation 80 3,620
Phelps Dodge Corporation 65 4,046
Placer Dome Incorporated 223 5,380
Santa Fe Pacific Gold Corporation 122 1,479
34,187
Petroleum Services - 0.5%
Baker Hughes Incorporated 132 3,218
Dresser Industries Incorporated 170 4,144
Halliburton Company 106 5,366
Helmerich and Payne Incorporated 23 684
McDermott International Incorporated 51 1,122
Rowan Companies Incorporated (a) 79 780
Schlumberger Limited 226 15,650
Western Atlas Incorporated (a) 50 2,525
33,489
Publishing - 0.5%
American Greetings Corporation 69 1,906
Dun & Bradstreet Corporation 158 10,230
shares value
Harland (John H) Company 28 $ 585
Jostens Incorporated 36 873
McGraw Hill Companies Incorporated 47 4,095
Meredith Corporation 26 1,089
Time Warner Incorporated 360 13,635
32,413
Industrial Machinery - 0.5%
Applied Materials Incorporated (a) 164 6,457
Briggs & Stratton Corporation 28 1,214
Cincinnati Milacron Incorporated 32 840
Crane Company 28 1,033
Cummins Engine Incorporated 38 1,406
Giddings & Lewis Incorporated 32 528
Ingersoll Rand Company 99 3,477
ITT Industries Incorporated 108 2,592
Nacco Industries Incorporated 8 444
Pall Corporation 107 2,876
Parker Hannifin Corporation 69 2,363
Timken Company 29 1,109
Trinova Corporation 27 773
Tyco Interest Limited 142 5,059
Varity Corporation (a) 38 1,411
31,582
Liquor - 0.4%
Anheuser-Busch Companies Incorporated 238 15,916
Brown-Forman Corporation 64 2,336
Coors (Adolph) Company 36 797
Seagram Limited 347 12,015
31,064
Newspapers - 0.3%
Dow Jones & Company Incorporated 90 3,589
Gannett Incorporated 131 8,040
Knight Ridder Incorporated 46 2,875
New York Times Company 90 2,666
Times Mirror Company 105 3,557
Tribune Company 61 3,729
24,456
Retail Grocery - 0.3%
Albertsons Incorporated 237 7,791
American Stores Company 138 3,692
Fleming Companies Incorporated 35 722
Giant Foods Incorporated 55 1,733
Great Atlantic & Pacific Tea Incorporated 36 828
Kroger Company (a) 114 4,275
Winn Dixie Stores Incorporated 140 5,162
24,203
Photography - 0.3%
Eastman Kodak Company 319 21,373
Polaroid Corporation 42 1,990
23,363
See notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund December 31, 1995 N Continued
shares value
Pollution Control - 0.3%
Browning Ferris Industries Incorporated 199 $ 5,870
Laidlaw Incorporated 259 2,655
WMX Technologies Incorporated 452 13,503
Zurn Industries Incorporated 12 257
22,285
Apparel & Textiles - 0.3%
Brown Group Incorporated 17 242
Fruit Of The Loom Incorporated (a) 71 1,731
Liz Claiborne 70 1,942
Nike Incorporated 134 9,330
Reebok International Limited 73 2,062
Russell Corporation 36 999
Springs Industries Incorporated 19 786
Stride Rite Corporation 46 345
V F Corporation 60 3,165
20,602
Aluminum - 0.3%
Alcan Aluminum Limited 210 6,536
Aluminum Company America 166 8,777
Reynolds Metals Company 59 3,341
18,654
Construction & Mining Equipment - 0.3%
Caterpillar Incorporated 186 10,927
Dover Corporation 106 3,909
Foster Wheeler Corporation 33 1,403
Harnischfeger Industries Incorporated 45 1,496
17,735
Auto Parts - 0.2%
Dana Corporation 94 2,749
Eaton Corporation 73 3,915
Echlin Incorporated 56 2,044
Genuine Parts Company 114 4,674
13,382
Air Travel - 0.2%
AMR Corporation (a) 71 5,272
Delta Air Lines Incorporated 47 3,472
Southwest Airlines Company 134 3,115
US Air Group Incorporated (a) 58 769
12,628
Construction Materials - 0.2%
Armstrong World Industries Incorporated 35 2,170
Masco Corporation 148 4,644
Owens Corning Fiberglas Corporation (a) 47 2,109
Sherwin Williams Company 80 3,260
12,183
Steel - 0.2%
Armco Incorporated (a) 99 582
Bethlehem Steel Corporation (a) 103 1,442
Inland Steel Industries Incorporated 45 1,131
Nucor Corporation 82 4,684
shares value
USX United States Steel 76 $ 2,337
Worthington Industries Incorporated 85 1,769
11,945
Trucking & Freight Forwarding - 0.2%
Consolidated Freightways Incorporated 40 1,060
Federal Express Corporation (a) 52 3,841
Navistar International Corporation
Incorporated (a) 70 735
Pittston Services Group 39 1,224
Roadway Services Incorporated 36 1,759
Ryder Systems Incorporated 73 1,807
Yellow Corporation 26 322
10,748
Cosmetics & Toiletries - 0.2%
Alberto Culver Company 26 894
Avon Products Incorporated 64 4,824
International Flavors & Fragrances 104 4,992
10,710
Plastics - 0.1%
Illinois Tool Works Incorporated 109 6,431
Premark International Incorporated 59 2,987
9,418
Savings and Loan - 0.1%
Ahmanson (H F) & Company 109 2,889
Golden West Financial Corporation 55 3,039
Great Western Financial Corporation 127 3,238
9,166
Toys & Amusements - 0.1%
Hasbro Incorporated 82 2,542
Mattel Incorporated 207 6,365
8,907
Agricultural Machinery - 0.1%
Deere & Company 243 8,566
Tires & Rubber - 0.1%
Cooper Tire & Rubber Company 78 1,921
Goodyear Tire & Rubber Company 142 6,443
8,364
Non-Ferrous Metals - 0.1%
Asarco Incorporated 39 1,248
Engelhard Corporation 134 2,914
Inco Limited 111 3,691
7,853
Containers & Glass - 0.1%
Ball Corporation 28 770
Bemis Incorporated 48 1,230
Crown Cork & Seal Incorporated (a) 84 3,507
Temple Inland Incorporated 52 2,295
7,802
Gas Exploration - 0.1%
Burlington Resources Incorporated 118 4,631
Noram Energy Corporation 116 1,030
See notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund December 31, 1995 N Continued
shares value
Gas Exploration - continued
Oryx Energy Company (a) 96 $ 1,284
Santa Fe Energy Resources Incorporated (a) 84 809
7,754
Building Construction - 0.1%
Centex Corporation 26 903
Fluor Corporation 77 5,082
Kaufman & Broad Home Corporation 30 446
Morrison Knudsen Corporation 31 132
Pulte Corporation 25 841
7,404
Office Furnishings & Supplies - 0.1%
Avery Dennison Corporation 50 2,506
Moore Corporation Limited 93 1,732
4,238
Mobile Homes - 0.0%
Fleetwood Enterprises Incorporated 43 1,107
Depositary Receipt - 15.1%
S & P Depositary Receipt Trust 17,000 1,045,234
TOTAL COMMON STOCKS
(Cost $5,052,208) 5,324,872
interest maturity principal
rate date amount value
COMMERCIAL PAPER - DOMESTIC - 14.2%
American Telephone & Telegraph Company
5.530% 03/14/1996 $300,000296,636
Associates Corporation North American
5.500% 03/15/1996 300,000 296,608
General Electric Capital Corporation
5.530% 03/15/1996 400,000 395,453
TOTAL COMMERCIAL PAPER - DOMESTIC
(Cost $988,697) 988,697
COMMERCIAL PAPER - FOREIGN - 4.3%
Canadian Wheat Board
(Cost $296,918)
5.520% 03/08/1996 300,000 296,918
U.S. GOVERNMENT SECURITIES - 0.8%
United States Treasury Bills**
5.280% 03/07/1996 10,000 9,903
United States Treasury Bills**
5.150% 03/21/1996 45,000 44,485
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $54,388) 54,388
principal
amount value
REPURCHASE AGREEMENT - 3.6% State Street Bank and Trust Company, 5.25%, due
01/02/1996 (collateralized by $250,000 par value U.S. Treasury Notes, 7.625%,
due 04/30/1996, with a value of $255,148)
(Cost $249,000) $249,000 $ 249,000
TOTAL INVESTMENTS - 99.7%
(Cost $6,641,211*) 6,913,875
OTHER ASSETS LESS LIABILITIES - 0.3% 20,308
NET ASSETS- 100.0% $6,934,183
(a) non-income producing security
*Aggregate cost for Federal tax purposes. 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 $372,013 and $99,349,
respectively. Net unrealized appreciation for tax purposes is $272,664.
**$55,000 par value of U.S. Treasury Bills has been pledged as collateral for
initial margin for futures contracts.
Schedule of Futures Contracts
number of contract total contract unrealized
contracts description value gain (loss)
5 S&P 500 $1,546,125 $4,200
March 1996 (long)
See notes to financial statements.
Schedule of Investments
Transamerica Premier Bond Fund December 31, 1995
interest maturity principal market
rate date amount value
CORPORATE BONDS - 62.3% Finance & Banking - 11.2% Bank Of Boston Corporation
6.625% 12/01/2005 $400,000 $ 406,956
First Union Corporation
6.875% 09/15/2005 400,000 416,032
Ford Motor Credit Company
6.375% 10/06/2000 500,000 509,050
1,332,038
Electric Utilities - 8.5%
Commonwealth Edison Company
7.000% 07/01/2005 300,000 308,223
Gulf States Utilities Company
8.250% 04/01/2004 400,000 431,300
Northern States Power Company
7.125% 07/01/2025 250,000 267,710
1,007,233
Other Utilities - 7.4%
Arkla Incorporated
8.900% 12/15/2006 400,000 446,864
Hydro Quebec
7.375% 02/01/2003 400,000 427,164
874,028
Industrials - 4.4%
Mallinckrodt Group Incorporated
6.750% 09/15/2005 500,000 518,855
Aerospace & Defense - 4.2%
Boeing Company
8.625% 11/15/2031 400,000 499,000
Petroleum Services - 4.1%
Anadarko Petroleum Corporation
5.875% 10/15/2003 500,000 488,695
Automobiles - 3.9%
General Motors Corporation
9.625% 12/01/2000 400,000 460,660
Drugs & Health Care - 3.8%
American Home Products Corporation
7.900% 02/15/2005 400,000 449,896
Broadcasting - 3.6%
Viacom Incorporated
7.750% 06/01/2005 400,000 424,788
Liquor - 3.6%
Anheuser Busch Companies Incorporated
7.250% 09/15/2015 400,000 423,048
Gas Exploration - 3.2%
Burlington Resources Incorporated
9.125% 10/01/2021 300,000 381,204
Containers & Glass - 2.3%
Riverwood International Corporation
11.250% 06/15/2002 250,000 271,250
interest maturity principal market
rate date amount value
Retail - 2.1%
Pathmark Stores Incorporated
9.625% 05/01/2003 $ 250,000 $ 243,125
TOTAL CORPORATE BONDS
(Cost $7,146,919) 7,373,820
GOVERNMENT AND AGENCY SECURITIES - 33.6%
United States Treasury Bonds
7.625% 02/15/2025 700,000 855,967
United States Treasury Notes
6.500% 05/15/2005 1,500,000 1,595,865
United States Treasury Notes
6.500% 08/15/2005 300,000 319,593
United States Treasury Notes
5.875% 11/15/2005 1,180,000 1,206,550
TOTAL GOVERNMENT AND AGENCY SECURITIES
(Cost $3,838,744) 3,977,975
REPURCHASE AGREEMENT - 2.7% State Street Bank and Trust Company, 5.25%, due
01/02/1996, (collateralized by $315,000 par value U.S. Treasury Notes, 7.625%,
due 04/30/1996, with a value of $321,486) (Cost $313,000) 313,000 313,000
TOTAL INVESTMENTS - 98.6%
(Cost $11,298,663*) 11,664,795
OTHER ASSETS LESS LIABILITIES - 1.4% 171,315
NET ASSETS - 100.0% $11,836,110
*Aggregate cost for Federal tax purposes. 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 $372,701 and $6,569,
respectively. Net unrealized appreciation for tax purposes is $366,132.
See notes to financial statements.
Schedule of Investments
Transamerica Premier Balanced Fund December 31, 1995
shares value
COMMON STOCKS - 58.1%
Software - 9.8%
Autodesk Incorporated 9,000 $ 308,250
Broderbund Software Incorporated (a) 5,000 303,750
Intuit (a) 4,000 312,000
Microsoft Corporation (a) 3,000 263,250
1,187,250
Electronics - 6.9%
Intel Corporation 6,500 368,875
Molex Incorporated 6,000 183,750
Motorola Incorporated 5,000 285,000
837,625
Financial Services - 5.3%
Countrywide Credit Industries
Incorporated 10,000 217,500
Franklin Resources Incorporated 4,500 226,687
Schwab (Charles) Corporation 10,000 201,250
645,437
Hotels & Restaurants - 5.3%
Host Marriott Corporation (a) 10,000 132,500
Marriot International Incorporated 5,500 210,375
Mirage Resorts Incorporated (a) 8,500 293,250
636,125
Business Services - 5.1%
First Data Corporation 6,500 434,687
Transaction Systems Architects
Incorporated (a) 5,500 185,625
620,312
Computers & Business Equipment - 4.2%
Cisco Systems Incorporated (a) 3,500 261,188
Dell Computer Corporation (a) 7,000 242,375
503,563
Communication Services - 3.9%
Silver King Communications
Incorporated (a) 5,500 191,125
Tele Communications Incorporated (a) 14,000 278,250
469,375
Leisure Time - 3.4%
Disney (Walt) Company 7,000 413,000
Industrial Machinery - 2.9%
Briggs & Stratton Corporation 8,000 347,000
Electrical Equipment - 2.2%
Millipore Corporation 6,500 267,313
shares value
Drugs & Healthcare - 2.2%
United Healthcare Corporation 4,000 $ 262,000
Toys & Amusements - 1.9%
Mattel Incorporated 7,500 230,625
Household Appliances & Products - 1.7%
Gillette Company 4,000 208,500
Plastics - 1.7%
Illinois Tool Works Incorporated 3,500 206,500
Telecommunications - 1.6%
Airtouch Communications
Incorporated (a) 7,000 197,750
TOTAL COMMON STOCKS
(Cost $6,981,293) 7,032,375
interest maturity principal market
rate date amount value
CORPORATE BONDS - 22.7%
Electric Utilities - 5.2%
Commonwealth Edison Company
7.000% 07/01/2005 $300,000 308,223
Gulf States Utilities Company
8.250% 04/01/2004 300,000 323,475
631,698
Finance & Banking - 5.2%
First Union Corporation
6.875% 09/15/2005 300,000 312,024
General Motors Acceptance Corporation
7.375% 05/28/1999 300,000 314,655 626,679
Drugs & Healthcare - 2.8%
American Home Products Corporation
7.900% 02/15/2005 300,000 337,422
Broadcasting - 2.6%
Viacom Incorporated
7.750% 06/01/2005 300,000 318,591
Gas & Pipeline Utilities - 2.6%
Williams Companies Incorporated
7.500% 09/15/1999 300,000 311,616
Petroleum Services - 2.4%
Anadarko Petroleum Corporation
5.875% 10/15/2003 300,000 293,217
Other Utilities - 1.9%
Arkla Incorporated
8.900% 12/15/2006 200,000 223,432
TOTAL CORPORATE BONDS
(Cost $2,680,764) 2,742,655
See notes to financial statements.
Schedule of Investments
Transamerica Premier Balanced Fund December 31, 1995 N Continued
interest maturity principal market
rate date amount value
U.S. GOVERNMENT SECURITIES - 15.0%
United States Treasury Notes
6.375% 08/15/2002 $ 400,000 $ 419,436
United States Treasury Notes
5.875% 11/15/2005 1,370,000 1,400,825
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $1,796,952) 1,820,261
principal
amount value
REPURCHASE AGREEMENT - 3.5% State Street Bank and Trust Company, 5.25%, due
01/02/1996 (collateralized by $425,000 par value U.S. Treasury Notes, 7.625%,
due 04/30/1996, with a value of $433,751) (Cost $425,000) 425,000 425,000 TOTAL
INVESTMENTS - 99.3% (Cost $11,884,009*) 12,020,291 OTHER ASSETS LESS LIABILITIES
- - 0.7% 81,845 NET ASSETS - 100.0% $12,102,136
(a) non-income producing security
*Aggregate cost for Federal tax purposes. 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 $435,721 and $299,439,
respectively. Net unrealized appreciation for tax purposes is $136,282.
See notes to financial statements.
Schedule of Investments
Transamerica Premier Short-Intermediate Government Fund December 31, 1995
issuer interest maturity principal
rate date amount value
U.S. Government Securities - 93.8%
United States Treasury Bonds 11.625% 11/15/2002 $150,000 $201,843
United States Treasury Bonds 10.750% 02/15/2003 328,000 427,987
United States Treasury Notes 5.125% 06/30/1998 1,015,000 1,012,940
United States Treasury Notes 6.875% 03/31/2000 436,000 460,595
United States Treasury Notes 5.875% 08/15/1998 490,000 497,732
United States Treasury Notes 6.500% 08/15/2005 100,000 106,531
United States Treasury Notes 6.250% 08/31/2000 500,000 517,265
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $3,172,141) 3,224,893 REPURCHASE AGREEMENT - 3.9% State Street Bank and
Trust Company, 5.25%, due 01/02/1996 (collateralized by $135,000 par value U.S.
Treasury Notes, 7.625%, due 04/30/1996, with a value of $137,780) (Cost
$134,000) 134,000 134,000 TOTAL INVESTMENTS - 97.7% (Cost $3,306,141*) 3,358,893
OTHER ASSETS LESS LIABILITIES - 2.3% 77,373 NET ASSETS - 100.0% $3,436,266
*Aggregate cost for Federal tax purposes. 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 $52,752 and $0, respectively. Net
unrealized appreciation for tax purposes is $52,752.
See notes to financial statements.
Schedule of Investments
Transamerica Premier Cash Reserve Fund December 31, 1995
interest maturity principal
rate date amount value
COMMERCIAL PAPER - DOMESTIC - 77.0% Financial Services - 23.4% Associates
Corporation North American
5.650% 01/30/1996 $1,000,000 $ 995,449
Associates Corporation North American
5.500% 04/02/1996 300,000 295,783
Corporate Asset Funding Corporation 5.600% 03/01/1996 1,300,000 1,287,867
General Electric Capital Corporation 5.500% 04/12/1996 1,100,000 1,082,858
General Electric Capital Corporation 5.450% 05/02/1996 200,000 196,306
Toyota Motor Credit Company 5.710% 01/18/1996 1,200,000 1,196,764
Toyota Motor Credit Company
5.710% 01/19/1996 200,000 199,429
USAA Capital Corporation
5.800% 01/17/1996 1,300,000 1,296,649
6,551,105
Food Processing - 12.1%
Campbell Soup Company
5.600% 02/15/1996 1,000,000 993,000
Cargill Incorporated
5.640% 02/05/1996 1,050,000 1,044,243
Cargill Incorporated
5.540% 03/01/1996 350,000 346,768
Hershey Foods Corporation
5.650% 01/26/1996 1,000,000 996,076
3,380,087
Telecommunications - 11.4%
American Telephone & Telegraph Company 5.720% 01/23/1996 1,000,000 996,504
Ameritech Capital Funding Corporation
5.700% 02/06/1996 1,100,000 1,093,730
GTE California Incorporated
5.770% 01/11/1996 1,100,000 1,098,237
3,188,471
Banking - 8.1%
Banc One Corporation
5.680% 01/26/1996 1,000,000 996,055
Banc One Corporation
5.650% 02/07/1996 300,000 298,258
Morgan J P & Company Incorporated
5.620% 04/04/1996 1,000,000 985,326
2,279,639
Utilities - 7.5%
Consolidated Natural Gas Company
5.670% 01/26/1996 1,100,000 1,095,669
Florida Power Corporation
5.730% 01/19/1996 $1,000,000 997,135
2,092,804
interest maturity principal
rate date amount value
Transportation - 3.9%
United Parcel Service
5.720% 01/18/1996 $1,100,000 $ 1,097,029
Publishing - 3.6%
Knight Ridder Incorporated
5.720% 01/09/1996 1,000,000 998,729
Insurance - 3.5%
Prudential Funding Corporation
5.650% 02/09/1996 1,000,000 993,879
Drugs & Health Care - 3.5%
Warner Lambert Company
5.530% 04/19/1996 1,000,000 983,256
TOTAL COMMERCIAL PAPER-DOMESTIC
(Cost $21,564,999) 21,564,999
COMMERCIAL PAPER - FOREIGN -18.3%
Banking - 7.8%
Canadian Imperial Holding Incorporated
5.580% 02/13/1996 1,175,000 1,167,169
Toronto Dominion Holdings
5.680% 01/23/1996 1,000,000 996,529
2,163,698
Government Agency - 7.0%
Canadian Wheat Board
5.650% 01/24/1996 1,000,000 996,390
Province Of British Columbia
5.520% 07/03/1996 1,000,000 971,787
1,968,177
Utilities - 3.5%
Ontario Hydro
5.590% 04/09/1996 1,000,000 984,628
TOTAL COMMERCIAL PAPER - FOREIGN
(Cost $5,116,503) 5,116,503
U.S. GOVERNMENT AGENCY - 4.6%
Federal Home Loan Bank Consolidated Discount Note
(Cost $1,299,795)
5.709% 01/02/1996 1,300,000 1,299,795
REPURCHASE AGREEMENT - 0.5%
State Street Bank and Trust Company, 5.25%, due 01/02/1996 (collateralized by
$145,000 par value U.S. Treasury Notes, 7.625%, due 04/30/1996, with a value of
$147,986) (Cost $144,000) 144,000 144,000 TOTAL INVESTMENTS - 100.4% (Cost
$28,125,297*) 28,125,297 OTHER ASSETS LESS LIABILITIES - (0.4)% (107,545 NET
ASSETS - 100.0% $28,017,752
*Aggregate cost for Federal tax purposes.
See notes to financial statements.
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities December 31, 1995
Transamerica
Premier Transamerica
Transamerica Transamerica Transamerica Transamerica Short- Premier
Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Assets
Investments, at value (Note 4)
$11,078,875 $6,913,875 $11,664,795 $12,020,291 $3,358,893 $28,125,297
Cash 18,866 43,423 27,083 26,139 12,544 43,898
Dividends and interest receivable
8,495 15,133 167,394 76,491 73,288 63
Variation margin receivable
N 1,750 N N N N
Receivable for fund shares sold
34,987 671 2,484 1,402 150 26,015
Due from Administrator (Note 2)
3,695 7,566 4,441 4,523 2,037 7,225
Total assets 11,144,918 6,982,418 11,866,197 12,128,846 3,446,912 28,202,498
Liabilities
Payable for securities purchased
N 11,574 N N N N
Dividends payable N N N N N 130,446
Directors fees payable
778 1,030 2,030 1,631 609 5,171
Distribution fees
payable (Note 3)
3,553 1,388 6,531 5,712 1,948 5,940
Service fees payable (Note 3)
9 N 3 6 N 8
Other accrued expenses
13,202 34,243 21,523 19,361 8,089 43,181
Total liabilities 17,542 48,235 30,087 26,710 10,646 184,746
Total net assets $11,127,376 $6,934,183 $11,836,110 $12,102,136 $3,436,266 $28,017,752
Net Assets
Par value $1,133 $655 $1,141 $1,183 $335 $28,018
Paid in capital 11,342,743 6,618,570 11,440,250 11,919,162 3,357,958 27,989,734
Undistributed net investment
income (Note 1) 21,826 37,969 63,428 72,055 16,750 N
Accumulated net realized gain
(loss) on investments
(1,264) 125 (34,841) (26,546) 8,471 N
Net unrealized appreciation
(depreciation) of investments
and futures contracts
(237,062) 276,864 366,132 136,282 52,752 N
Total net assets
$11,127,376 $6,934,183 $11,836,110 $12,102,136 $3,436,266 $28,017,752
Investor Class
Net assets $11,070,182 $6,933,960 $11,826,508 $12,083,554 $3,436,050 $27,996,475
Shares outstanding
1,127,366 654,842 1,140,473 1,180,785 335,279 27,996,475
Net asset value, offering price
and redemption price
per Investor share
$9.82 $10.59 $10.37 $10.23 $10.25 $1.00
Adviser Class
Net assets $57,194 $223 $9,602 $18,582 $216 $21,277
Shares outstanding
5,828 21 926 1,817 21 21,277
Net asset value, offering price
and redemption price
per Adviser share
$9.81 $10.58 $10.37 $10.22 $10.25 $1.00
investments, at cost
$11,315,937 $6,641,211 $11,298,663 $11,884,009 $3,306,141 $28,125,297
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
Financial Statements
Statements of Operations For the period October 2, 1995 (commencement of operations) through December 31, 1995
Transamerica
Premier Transamerica
Transamerica Transamerica Transamerica Transamerica Short- Premier
Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Investment Income
Interest income $14,522 $10,649 $179,739 $70,655 $48,343 $349,438
Dividend income* 10,878 30,822 N 7,170 N N
Total income 25,400 41,471 179,739 77,825 48,343 349,438
Expenses
Investment Adviser fee (Note 2)
12,015 4,161 15,656 17,091 3,895 20,801
Custodian fees 6,773 39,458 9,181 9,262 3,920 14,368
Audit fees 2,543 3,366 6,632 5,327 1,990 16,893
Legal fees 432 572 1,128 906 338 2,873
Printing expenses 1,038 1,374 2,707 2,174 812 6,895
Directors fees and expenses
(Note 2) 778 1,030 2,030 1,631 609 5,171
Transfer agent fees
10,248 5,651 7,478 9,306 5,623 9,505
Service fees (Note 3)
9 N 3 6 N 8
Distribution fees - Investor
shares (Note 3)
3,525 1,388 6,522 5,694 1,948 5,940
Distribution fees - Adviser
shares (Note 3)
28 N 9 18 N N
Registration fees 257 260 270 266 256 291
Insurance expense 478 634 1,249 1,003 375 3,180
Total operating expenses
before waiver and
reimbursement
38,124 57,894 52,865 52,684 19,766 85,925
Fees waived by Investment
Adviser (Note 2)
(12,015) (4,161) (15,656) (17,091) (3,895) (20,801)
Expenses reimbursed by the
Administrator (Note 2)
(22,535) (50,231) (30,607) (29,823) (13,902) (50,230)
Total expenses 3,574 3,502 6,602 5,770 1,969 14,894
net investment income
21,826 37,969 173,137 72,055 46,374 334,544
Net Realized and Unrealized Gain (Loss)
on Investments
Net realized gain (loss) on
investments
(1,264) 125 (34,841) (26,546) 8,471 N
Unrealized appreciation
(depreciation) of investments
and futures contracts
during the period
(237,062) 276,864 366,132 136,282 52,752 N
Net Realized and Unrealized Gain (Loss)
on Investments
(238,326) 276,989 331,291 109,736 61,223 N
Net Increase (Decrease) in Net Assets
Resulting from Operations
$(216,500) $314,958 $504,428 $181,791 $107,597 $344,544
*Net of foreign withholding
taxes of: $ 298 $ 50 N N N
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
Financial Statements
Statements of Changes in Net Assets For the period October 2, 1995 (commencement of operations) through December 31, 1995
Transamerica
Premier Transamerica
Transamerica Transamerica Transamerica Transamerica Short- Premier
Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Increase in Net Assets
From operations:
Net investment income
$ 21,826 $ 37,969 $ 173,137 $ 72,055 $ 46,374 $334,544
Net realized gain (loss)
on investments
(1,264) 125 (34,841) (26,546) 8,471 N
Unrealized appreciation
(depreciation) of investments
and futures contracts
during the period
(237,062) 276,864 366,132 136,282 52,752 N
Net increase (decrease)
in net assets resulting
from operations
(216,500) 314,958 504,428 181,791 107,597 334,544
Dividends to shareholders from net investment income:
Investor shares N N (109,662) N (29,622) (334,364)
Adviser shares N N (47) N (2) (180)
Fund share transactions (Note 5)
11,327,206 6,602,555 11,424,721 11,903,675 3,341,623 28,001,102
Increase in net assets
11,110,706 6,917,513 11,819,440 12,085,466 3,419,596 28,001,102
Net Assets
Beginning of period
16,670 16,670 16,670 16,670 16,670 16,650
End of period (1)
$11,127,376 $6,934,183 $11,836,110 $12,102,136 $3,436,266 $28,017,752
(1) Includes undistributed net
investment income of:
$ 21,826 $ 37,969 $63,428 $72,055 $ 16,750 N
</TABLE>
See notes to financial statements.
<TABLE>
<CAPTION>
Financial Statements
Financial Highlights N Investor Class Shares Period Ended December 31, 1995*
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements.
Transamerica
Premier Transamerica
Transamerica Transamerica Transamerica Transamerica Short- Premier
Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of period $10.00 $10.00 $10.00 $10.00 $10.00 $1.00
Investment Operations
Net investment income (1)
0.02 0.06 0.16 0.06 0.15 0.01
Net realized and
unrealized gain (loss)
(0.20) 0.53 0.32 0.17 0.20 N
Total from investment operations
(0.18) 0.59 0.48 0.23 0.35 0.01
Distributions to
Shareholders from:
Net investment income N N (0.11) N (0.10) (0.01)
Net asset value
End of period $9.82 $10.59 $10.37 $10.23 $10.25 $1.00
TOTAL RETURN (2) (1.80)% 5.90% 4.82% 2.30% 3.49% 1.39%
Ratios and Supplemental Data
Expenses (3) (4) 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Net investment income (4)
1.51% 2.70% 6.55% 3.12% 5.88% 5.55%
Portfolio turnover (4) 0% 4% 19% 16% 260% N/A
Net assets at end
of period
$11,070,182 $6,933,960 $11,826,508 $12,083,554 $3,436,050 $27,996,475
</TABLE>
*Each Fund commenced operations on October 2, 1995. (1) Net
investment income is after waiver of certain fees by the Investment Adviser and
reimbursement of certain expenses by the Administrator (see Note 2 to the
financial statements). If the Investment Adviser had not waived fees and the
Administrator had not reimbursed expenses, net investment income (loss) per
share would have been $(0.01) for the Equity Fund, $(0.03) for the Index Fund,
$0.12 for the Bond Fund, $0.02 for the Balanced Fund, $0.09 for the
Short-Intermediate Government Fund, and $0.01 for the Cash Reserve Fund. (2)
Total return represents aggregate total return for the period indicated and is
not annualized. (3) If the Investment Adviser had not waived fees and the
Administrator had not reimbursed expenses, the ratio of operating expenses to
average net assets would have been 2.39% for the Equity Fund, 4.12% for the
Index Fund, 1.93% for the Bond Fund, 2.12% for the Balanced Fund, 2.51% for the
Short-Intermediate Government Fund, and 1.37% for the Cash Reserve Fund. (4)
Annualized. See notes to financial statements. Financial Statements Financial
Highlights N Adviser Class Shares Period Ended December 31, 1995* The following
table includes selected data for a share outstanding throughout the period and
other performance information derived from the financial statements.
<TABLE>
<CAPTION>
Transamerica
Premier Transamerica
Transamerica Transamerica Transamerica Transamerica Short- Premier
Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of period $10.00 $10.00 $10.00 $10.00 $10.00 $1.00
Investment Operations
Net investment income (1) 0.01 0.04 0.12 0.03 0.12 0.01
Net realized and
unrealized gain (loss)
(0.20) 0.54 0.35 0.19 0.22 N
Total from investment operations
(0.19) 0.58 0.47 0.22 0.34 0.01
Distributions to
to Shareholders from:
Net investment income N N (0.10) N (0.09) (0.01)
Net asset value
End of period $9.81 $10.58 $10.37 $10.22 $10.25 $1.00
TOTAL RETURN (2) (1.90)% 5.80% 4.69% 2.20% 3.37% 1.26%
Ratios and Supplemental Data
Expenses (3) (4) 0.94% 1.12% 0.98% 0.98% 0.99% 0.38%
Net investment income (4)
0.63% 1.49% 5.72% 2.36% 4.84% 5.43%
Portfolio turnover (4) 0% 4% 19% 16% 260% N/A
Net assets at end of period
$57,194 $223 $9,602 $18,582 $216 $21,277
</TABLE>
*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of certain fees by the Investment
Adviser and reimbursement of certain expenses by the Administrator (see Note 2
to the financial statements). If the Investment Adviser had not waived fees and
the Administrator had not reimbursed expenses, net investment income (loss) per
share would have been $(0.62) for the Equity Fund, $(0.05) for the Index Fund,
$(3.01) for the Bond Fund, $(1.95) for the Balanced Fund, $0.08 for the
Short-Intermediate Government Fund, and $(0.24) for the Cash Reserve Fund. (2)
Total return represents aggregate total return for the period indicated and is
not annualized. (3) If the Investment Adviser had not waived fees and the
Administrator had not reimbursed expenses, the ratio of operating expenses to
average net assets would have been 92.04% for the Equity Fund, 4.52% for the
Index Fund, 147.96% for the Bond Fund, 150.92% for the Balanced Fund, 2.55% for
the Short-Intermediate Government Fund, and 109.23% for the Cash Reserve Fund.
(4) Annualized.
See notes to financial statements.
Financial Statements
Notes to Financial Statements N December 31, 1995
1. Significant Accounting Policies
Transamerica Investors, Inc. (the OCompanyO) was organized as a Maryland
corporation on February 22, 1995. The Company is registered with the Securities
and Exchange Commission (the OSECO) under the Investment Company Act of 1940
(the O1940 ActO) as an open-end, diversified management investment company. The
Company is composed of six series (collectively referred to as the OFundsO):
Transamerica Premier Equity Fund (the OEquity FundO), Transamerica Premier Index
Fund (the OIndex FundO), Transamerica Premier Bond Fund (the OBond FundO),
Transamerica Premier Balanced Fund (the OBalanced FundO), Transamerica Premier
Short-Intermediate Government Fund (the OShort-Intermediate Government FundO),
and Transamerica Premier Cash Reserve Fund (the OCash Reserve FundO). Each Fund
is a separate series. Each series has two classes of shares, Investor Shares and
Adviser Shares. Each share of each class represents an identical legal interest
in the same investments of a Fund, except that Adviser Shares have higher
distribution fees. Each class has certain other expenses related solely to that
class. The Company commenced investment operations on October 2, 1995. The
following is a summary of significant accounting policies followed by each Fund
in the preparation of its financial statements in accordance with generally
accepted accounting principles. (a) Valuation of Securities N All securities are
valued as of the close of regular trading on the New York Stock Exchange
(normally 4:00 p.m. Eastern time). Except for the Cash Reserve Fund, each Fund
will compute its net asset value once daily at the close of such trading on each
day that the New York Stock Exchange is open for business. The Cash Reserve Fund
will determine its net asset value only on days that the Federal Reserve is
open. Investments of the Funds (other than the Cash Reserve Fund) are valued as
follows: (1) Equity securities listed on any U.S. or foreign stock exchange or
the National Association of Securities Dealers Automated Quotation System
(OnasdaqO) are valued at the last sale price on that exchange or nasdaq on the
valuation day; if no sale occurs, equity securities traded on a U.S. exchange or
nasdaq are valued at the mean between the closing bid and closing asked prices.
Equity securities traded on a foreign exchange will be valued at the official
bid price. Over-the-counter securities not quoted on nasdaq are valued at the
last sale price on the valuation day or, if no sale occurs, at the mean between
the last bid and asked prices. (2) Debt securities purchased with a remaining
maturity of 61 days or more are valued on the basis of dealer-supplied
quotations or by a pricing service selected by Transamerica Investment Services,
Inc., the Investment Adviser, and approved by the Board of Directors. (3)
Options and futures contracts are valued at the last sale price on the market
where any such option or futures contract is principally traded.
Over-the-counter options are valued based upon prices provided by market makers
in such securities or dealers in such currencies. (4) Forward foreign currency
exchange contracts are valued based upon quotations supplied by dealers in such
contracts. (5) All other securities and other assets, including those for which
no pricing service supplies quotations or quotations are not deemed by the
Investment Adviser to be representative of market values, but excluding debt
securities with remaining maturities of 60 days or less, are valued at fair
value as determined in good faith pursuant to procedures established by the
Board. (6) Debt securities with a remaining maturity of 60 days or less will be
valued at their amortized cost, which approximates market value. All of the
investments of the Cash Reserve Fund are valued at amortized cost, in accordance
with Rule 2a-7 of the 1940 Act, which approximates market value. (b) Repurchase
Agreements N Each Fund may enter into repurchase agreements with Federal Reserve
System member banks or U.S. securities dealers. A repurchase agreement occurs
when, at the time the Fund purchases an interest-bearing debt obligation, the
seller agrees to repurchase the debt obligation on a specified date in the
future at an agreed-upon price. The repurchase price reflects an agreed-upon
interest rate during the time the FundOs money is invested in the security.
Since the security constitutes collateral for the repurchase obligation, a
repurchase agreement can be considered a collateralized loan. The risk to the
Fund is the ability of the seller to pay the agreed-upon price on the delivery
date. If the seller is unable to make timely repurchase, the FundOs expected
proceeds could be delayed, or the Fund could suffer a loss in principal or
current interest, or incur costs in liquidating the collateral. Financial
Statements Notes to Financial Statements N Continued
c) Futures Contracts N The Index Fund uses S&P 500 Index futures as part of its
strategy to match the return of the S&P 500 Index. Upon entering into a futures
contract, the Fund is required to deposit with the broker an amount of cash or
cash equivalents equal to a certain percentage of the contract amount. This is
known as the initial margin. Subsequent payments (Ovariation marginO) are made
or received by the Fund each day, depending on the daily fluctuations of the
value of the contract. The daily changes in the contract are recorded as
unrealized gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed. The use of futures contracts involves several risks. The
change in value of futures contracts primarily corresponds with the value of
their underlying instruments, which may not correlate with the change in value
of the hedged investments. In addition, the Fund may not be able to enter into a
closing transaction because of an illiquid secondary market. (d) Securities
Transactions, Investment Income and Expenses N Securities transactions are
recorded as of the trade date. Realized gains and losses on sales of investments
are recorded on the identified cost basis. Interest income and expenses are
recorded daily on an accrual basis. Dividend income is recorded on the ex-date.
Investment income and realized and unrealized gains and losses are allocated
based upon the relative average daily net assets of each class of shares.
Expenses not directly chargeable to a specific Fund are allocated primarily on
the basis of relative average daily net assets. Expenses of each Fund not
directly attributable to the operations of any class of shares are allocated
among the classes based upon the relative average daily net assets of each
class. Distribution fees are directly attributable to a particular class of
shares and are charged only to that class. (e) Dividends and Distributions N
Dividends from net investment income on shares of the Cash Reserve Fund are
determined on a class level and are declared daily and paid monthly. Dividends
from net investment income on shares of the Bond Fund and the Short-Intermediate
Government Fund are determined on a class level and are declared and paid
monthly. Dividends from net investment income, if any, on shares of the Equity
Fund, the Index Fund, and the Balanced Fund are determined on a class level and
are declared and paid quarterly. Each Fund distributes net realized capital
gains, if any, on a Fund level annually. Dividends and distributions paid by
each Fund and class are recorded on the ex-dividend date, except for the Cash
Reserve Fund, which records dividends daily. Additional dividends from net
investment income and distributions of capital gains may be made at the
discretion of the Board of Directors in order to avoid the 4% nondeductible
Federal excise tax. Income dividends and capital gains distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by the Funds, timing differences and differing characterization of distributions
made by the Funds. (f) Federal Income Taxes N Each Fund intends to qualify as a
regulated investment company by complying with the requirements of the Internal
Revenue Code applicable to regulated investment companies and by distributing to
shareholders substantially all of its taxable income. Therefore, no Federal
income or excise tax provision is required. For Federal income tax purposes,
capital loss carry forwards (exclusive of certain capital losses incurred after
October 31) of $17, $34,657, and $26,024 are available to the extent provided by
regulations to offset future realized capital gains of the Equity Fund, the Bond
Fund, and the Balanced Fund, respectively. These losses expire in 2003. 2.
Investment Advisory Fees and Other Transactions with Affiliates The Company has
entered into an Investment Advisory and Administrative Services Agreement (the
OAgreementO) with Transamerica Investment Services, Inc. (the OInvestment
AdviserO), a wholly owned subsidiary of Transamerica Corporation, on behalf of
each Fund. Pursuant to the Agreement, the Investment Adviser will supervise and
manage the investments of each Fund, direct the purchase and sale of its
investments, and ensure that investments follow its investment objective,
strategies, and policies and comply with government regulations. For its
services to the Funds, the Investment Adviser receives a monthly fee, based on
an annual percentage of the average daily net assets of each Fund. The annual
fee for the Equity Fund is 0.85% on the first $1 billion of average daily net
assets, 0.82% on the next $1 billion of average daily net assets, and 0.80% on
average daily net assets over $2 billion. The annual fee for the Index Fund is
0.30% of average daily net assets. The annual fee for the Bond Fund is 0.60% on
the first $1 billion of average daily net assets, 0.57% on the next $1 billion
of average daily net assets, and 0.55% on average daily net assets over $2
billion. The annual fee for the Balanced Fund is 0.75% on the first $1 billion
of average daily net assets, 0.72% on the next $1 billion of average daily net
assets, and 0.70% on average daily net assets over $2 billion. The annual fee
for the Short- Financial Statements Notes to Financial Statements N Continued
Intermediate Government Fund is 0.50% of average daily net assets. The annual
fee for the Cash Reserve Fund is 0.35% of average daily net assets. The
CompanyOs Administrator is Transamerica Occidental Life Insurance Company (the
OAdministratorO), a wholly owned subsidiary of Transamerica Insurance
Corporation of California, which in turn is a wholly owned subsidiary of
Transamerica Corporation. The Administrator provides the Funds with
administrative and clerical services, including the maintenance of the FundsO
books and records; registers the FundsO shares with the SEC and with those
states and other jurisdictions where the shares are offered or sold and arranges
periodic updating of the FundsO prospectuses; provides proxy materials and
reports to the FundsO shareholders and the SEC; and provides the Funds with
adequate office space and all necessary office equipment and services. The
Administrator receives its fee directly from the Investment Adviser, and
receives no compensation from the Funds. The Investment Adviser agreed to waive
its Fee, and the Administrator assumed any other operating expenses (other than
certain extraordinary or non-recurring expenses) for each Fund which exceeded
0.25% of the average daily net assets for the Investor Shares, until the earlier
of December 31, 1995 or such time as the FundOs assets exceed $50 million. For
the Adviser Shares, the Investment Adviser agreed to waive its fee, and the
Administrator assumed any other operating expenses (other than certain
extraordinary or non-recurring expenses) for each Fund which exceeded 1.00%,
1.15%, 1.00%, 1.00%, 1.00%, and 0.40% for the Equity Fund, the Index Fund, the
Bond Fund, the Balanced Fund, the Short-Intermediate Government Fund, and the
Cash Reserve Fund, respectively, until the earlier of December 31, 1995, or such
time as the FundOs assets exceed $50 million. Transamerica Securities Sales
Corporation (OTSSCO) is the principal underwriter and distributor of the shares
of each of the Funds. TSSC distributes Investor Shares. TSSC has an agreement
with Transamerica Financial Resources, Inc. (OTFRO) to sell Adviser Shares
through its registered representatives. TSSC can also enter into arrangements
where Adviser Shares will be sold by other broker-dealers, subject to the
approval of the Board. Both TSSC and TFR are wholly-owned subsidiaries of
Transamerica Insurance Corporation of California. No officer, director, or
employee of the Investment Adviser, the Administrator or any of their respective
affiliates receives any compensation from the Funds for acting as a director or
officer of the Company. Each director of the Company who is not an Ointerested
personO (as that term is defined in the 1940 Act) receives from the Funds a
$10,000 annual fee, $1,000 for each meeting of the CompanyOs Board attended, and
$500 for each Board committee meeting attended, and is reimbursed for expenses
incurred in connection with such attendance. For the period ended December 31,
1995, the Funds incurred aggregate fees of $11,249 to all directors who are not
affiliated persons of the Investment Adviser. 3. Distribution PlanS The 12b-1
plans of distribution and related distribution contracts require each Fund to
pay distribution and service fees to TSSC as compensation for its activities,
not as reimbursement for specific expenses. For the Investor Shares, there is an
annual 12b-1 distribution fee of 0.25% of the average daily net assets of the
Investor Shares of each Fund, except the Index and Cash Reserve Funds, which
each pay a distribution fee of 0.10% of the average daily net assets. For the
Adviser Shares, there is an annual 12b-1 distribution fee of 0.75% of the
average daily net assets of the Adviser Shares of each Fund, except the Cash
Reserve Fund, which has no distribution fee. There is also an annual 12b-1
service fee of 0.25% of the average daily net assets of the Adviser Shares of
each Fund. The distribution fee covers compensation to registered
representatives and other sales personnel involved with selling Adviser Shares,
as well as preparation, printing and mailing of the Prospectus, Statement of
Additional Information, sales literature, other media advertising, and related
expenses. The service fee compensates sales personnel for ongoing shareholder
information and advice, and office expenses such as rent, communications
equipment, employee salaries, and other overhead costs. Financial Statements
Notes to Financial Statements N Continued 4. Securities Transactions The
aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the period ended December 31, 1995 were as follows:
U.S. Government Proceeds from U.S. Government
Purchases Purchases Sales Sales
Equity Fund $10,736,936 $N N N
Index Fund 5,088,825 N 36,769 N
Bond Fund 7,552,308 3,838,744 371,398 N
Balanced Fund 9,966,570 1,796,952 278,542 N
Short-Intermediate
Government Fund N 4,666,620 N 1,503,201
5. Capital Stock Transactions
At December 31, 1995, there were two billion shares of $0.001 par value stock
authorized, consisting of one billion Investor Shares and one billion Adviser
Shares. At December 31, 1995, substantially all of the shares of the Funds were
owned by the Investment Adviser and its affiliates. The tables below summarize
transactions in Fund shares for the period from October 2, 1995
commencement of operations) to December 31, 1995.
Transamerica Premier Equity Fund
Investor Shares Adviser Shares
Shares Amount Shares Amount
Capital stock sold 1,125,709 $11,269,950 5,827 $57,342
Capital stock issued
upon reinvestment of
dividends and distributions
N N N N
Capital stock redeemed (9) (86) N N
Net increase 1,125,700 $11,269,864 5,827 $57,342
Transamerica Premier Index Fund
Investor Shares Adviser Shares
Shares Amount Shares Amount
Capital stock sold 653,176 $6,602,355 20 $200
Capital stock issued
upon reinvestment of
dividends and distributions
N N N N
Capital stock redeemed N N N N
Net increase 653,176 $6,602,355 20 $200
Transamerica Premier Balanced Fund
Investor Shares Adviser Shares
Shares Amount Shares Amount
Capital stock sold 1,179,124 $11,885,383 1,816 $18,341
Capital stock issued
upon reinvestment of
dividends and distributions
N N N N
Capital stock redeemed (5) (49) N N
Net increase 1,179,119 $11,885,334 1,816 $18,341
Financial Statements
Notes to Financial Statements N Continued
Transamerica Premier Bond Fund
Investor Shares Adviser Shares
Shares Amount Shares Amount
Capital stock sold 1,127,986 $11,305,873 921 $9,270
Capital stock issued
upon reinvestment of
dividends and distributions
10,828 109,606 4 47
Capital stock redeemed (7) (75) N N
Net increase 1,138,807 $11,415,404 925 $9,317
Transamerica Premier Short-Intermediate Government Fund
Investor Shares Adviser Shares
Shares Amount Shares Amount
Capital stock sold 330,690 $3,311,850 20 $200
Capital stock issued
upon reinvestment of
dividends and distributions
2,927 29,621 N 1
Capital stock redeemed (4) (49) N N
Net increase 333,613 $3,341,422 20 $201
Transamerica Premier Cash Reserve Fund
Investor Shares Adviser Shares
Shares Amount Shares Amount
Capital stock sold 27,792,888 $27,792,888 25,200 $25,200
Capital stock issued
upon reinvestment of
dividends and
distributions 204,021 204,021 76 76
Capital stock redeemed (17,083) (17,083) (4,000) (4,000)
Net increase 27,979,826 $27,979,826 21,276 $21,276
Report of Ernst & Young LLP Independent Auditors
To the Shareholders and Board of Directors of Transamerica Investors, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Transamerica Investors, Inc. (comprising
respectively, the Transamerica Premier Equity Fund, Transamerica Premier Index
Fund, Transamerica Premier Bond Fund, Transamerica Premier Balanced Fund,
Transamerica Premier Short-Intermediate Government Fund, and Transamerica
Premier Cash Reserve Fund) as of December 31, 1995, and the related statements
of operations, changes in net assets and financial highlights for the period
from October 2, 1995 (commencement of operations) to December 31, 1995. These
financial statements and financial highlights are the responsibility of the
FundOs management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit. We conducted
our audit in accordance with generally accepted auditing standards. Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of December 31, 1995, by
correspondence with the custodian and brokers. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audit provides a reasonable basis for our opinion. In our opinion, the
financial statements and financial highlights referred to above present fairly,
in all material respects, the financial position of each of the respective funds
constituting Transamerica Investors, Inc., as of December 31, 1995, and the
results of their operations, the changes in their net assets and their financial
highlights for the period from October 2, 1995 to December 31, 1995, in
conformity with generally accepted accounting principles.
Boston, Massachusetts
February 2, 1996
Transamerica Premier Portfolio of Funds
Transamerica Premier Funds Investment Objectives
Transamerica Premier Equity Fund
We seek to maximize long-term growth for this Fund.
Transamerica Premier Index Fund
We seek to track the performance of the Standard & PoorOs 500 Composite Stock
Price Index, also known as the S&P 500 Index, for this Fund. Transamerica
Premier Bond Fund We seek to achieve a high total return (income plus capital
changes) from fixed income securities consistent with preservation of principal
for this Fund. Transamerica Premier Balanced Fund We seek to achieve long-term
capital growth and current income with a secondary objective of capital
preservation, by balancing investments among stocks, bonds, and cash (or cash
equivalents) for this Fund. Transamerica Premier Short-Intermediate Government
Fund We seek to achieve a high level of current income with the security of
investing in government securities for this Fund. Transamerica Premier Cash
Reserve Fund We seek to maximize current income consistent with liquidity and
preservation of principal for this Fund. Federal tax information For corporate
shareholders, the following amounts represent the percentages of 1995 taxable
ordinary dividend distributions which qualify for the dividends received
deduction for Federal Income Tax purposes: Equity Fund 42.11%, Index Fund
79.94%, Balanced Fund 9.44%. Transamerica Premier Portfolio of Funds
Transamerica Premier Funds Directors
Nooruddin S. Veerjee
Chairman of the Board
Sidney E. Harris
Charles C. Reed
Gary U. Rolle
Carl R. Terzian
Transamerica Premier Funds Officers
Nooruddin S. Veerjee
Chief Executive Officer
Nicki Bair
President
J. Richard Atwood
Treasurer
Reid A. Evers
Secretary
Donald Radisich
Vice President
Howell Margolit
Assistant Vice President
Christopher W. Shaw
Assistant Vice President
Investment Adviser
Transamerica Investment Services, Inc.
1150 South Olive Street
Los Angeles, California 90015
Distributor
Transamerica Securities Sales Corporation
1150 South Olive Street
Los Angeles, California 90015
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
Transfer Agent
Boston Financial Data Services, Inc.
Two Heritage Drive
North Quincy, Massachusetts 02171
Independent Auditors
Ernst & Young LLP
200 Clarendon Street
Boston, Massachusetts 02116
This report is for the information of the shareholders of Transamerica
Investors. Its use in connection with any offering of the
FundsO shares is authorized only if accompanied or preceded by a current
Transamerica Premier Funds prospectus that
contains more complete investment information, including fees, risks and
expenses. Please read the prospectus thoroughly before you
invest. Call 1-800-89-ASK-US for more information.
These Funds are neither insured nor guaranteed by the U.S.
government. There can be no assurance that the Transamerica Premier Cash
Reserve Fund will be able to maintain a stable net asset
value of $1.00 per share.
(C)1996 Transamerica Securities Sales Corporation, Distributor
1150 South Olive Street, Los Angeles, CA 90015-2287
People. Performance. Portfolios.
AR95
