Transamerica Premier Funds
Semi-Annual Report
June 30, 1996
Investor & Adviser Class Shares
Contents
3 President's Report
Investment Management Reports
and scheduleS of investmentS
4 Transamerica Premier Equity Fund
5 Transamerica Premier Index Fund
16 Transamerica Premier Bond Fund
20 Transamerica Premier Balanced Fund
24 Transamerica Premier Short-Intermediate Government Fund
27 Transamerica Premier Cash Reserve Fund
Financial Statements
31 Statements of Assets & Liabilities
32 Statements of Operations
33 Statements of Changes in Net Assets
Financial Highlights
35 Investor Class
37 Adviser Class
Notes to financial statements
transamerica investment services
Economic Outlook
The second quarter of 1996 saw strong job growth. In fact, in the past several
years, ten million new jobs have been added. Thisled to an overall acceleration
of economic growth, resulting in the strongest gross domestic product growth
(4.2%) in more than a year. Inflation did not re-ignite, as price increases
continued to hover in the 3% range at both the producer and consumer level.
However, concern that growth creates a potential risk of inflation did lead to
bond market sell-offs early in the year.
As consumers become more debt-laden and interest rates inch upward,
retail sales should taper off. We look for the rate of growth to be slower
during the balance of 1996. Capital spending should slow down, as well. We
believe we will see a decline in interest rates by the new year. As always, the
high-quality companies with positive business fundamentals are the first to
rebound from periodic market corrections.
The latest stock market roller-coaster performance was the result of
overly optimistic stock valuations adjusting to more realistic price levels. The
very strong bull market of the past 18 months was due for a cooling-off period.
Brief `corrections,' or market dips, can occur due to economic and interest rate
worries. The key is to remain focused on long-term investment objectives.
The long-term outlook over the next decade remains positive. The
demographic, technological, and productivity trends are well underway. Skilled
and educated baby-boomers will be at their productive peak in the next ten
years. An information and technology surge will be in full force, increasing
productivity and reducing labor costs. The result of aging boomers' savings
dollars flowing into financial markets will support higher prices for both
stocks and bonds.
3
President's Report
Dear FellowShareholders:
Welcome to the first semi-annual report for the Transamerica Premier Funds. We
are pleased to offer our shareholders quality mutual funds, the kind you would
expect from the same Transamerica professionals who have served the needs of our
pension clients for over ten years. Providing you with products to meet your
individual investment objectives will always be our number one priority.
To help you make the best investment decisions, we have made it even
easier for you to access Investor Class information with the introduction of our
Transamerica Premier Funds web site. Visit us at
`http://funds.transamerica.com.' View net asset values, prospectus information,
timely performance data on all six Premier funds, and more. You can even submit
questions to our portfolio managers and review our investment strategies. We
look forward to hearing from you on the web site!
To keep you informed, we have included a discussion of the market and
economic outlook from Transamerica Investment Services, our Investment Adviser
(page 2). We hope you find this informative. It is all part of our commitment to
meet your investment needs and goals. And, you can always call us toll-free with
any comments or questions at 1-800-89-ASK-US or 1-800-892-7587, ext. 1000.
We look forward to continuing to serve our Transamerica Premier Funds
shareholders. It is our privilege to assist you with your investment needs.
Respectfully,
Nicki Bair
President
Transamerica Premier Equity Fund
Portfolio Manager, Glen E. Bickerstaff
FUND PERFORMANCE
The Premier Equity Fund's performance has been strong for the six months ended
June 30, 1996, returning 10.81% for Investor Class shares compared to 10.10% for
the S&P 500 Index.
In general, 1996 has been a good year for equity investors. Several
forces which helped move stocks higher included better than expected economic
growth and an overall positive environment for corporate earnings and profit
growth. Technology stocks did well, despite a difficult June, especially among
software and technology services related companies.
PORTFOLIO MANAGER COMMENTS
"Over the first half of the year, the market has been good and we participated
fully in its success. The companies selected for the Fund possess successful
management teams who effectively become our partners when we make an investment.
We had a strong six month return as a result of this strategy. Our successes
have included identifying companies who have participated in the resurgence of
technology growth, such as Cisco Systems and Dell Computer.
Other trends for the future are: the demand for financial and
investment services and products that will be growing into the next century as
baby boomers save more aggressively for retirement. And, the drive to reduce
costs in corporations leading to capital investments in technology, streamlining
operations and increasing productivity.
As businesses face competitive pressure to lower their cost structures,
they use new technologies to expand margins and become more profitable.
Companies who supply this type of technology are attractive to us. The
outsourcing of electronic credit and debit transaction processing is a big part
of that effort. And, with the proliferation of Internet shopping, banking, and
other business and personal transactions continuing to climb, we believe these
companies will offer nice growth opportunities. That is why Intel, Microsoft and
First Data Corporation remain solid choices as long-term investments."
PORTFOLIO ASSET MIX
As of June 30, 1996, the Fund consisted of:
Common Stocks 95.1%
Cash or Cash Equivalents 4.9%
The five companies with the largest weighting in the portfolio as of June 30,
1996, were as follows:
Mirage Resorts Incorporated 5.7%
First Data Corporation 4.4%
Dell Computer Corporation 4.3%
Schwab (Charles) Corporation 4.2%
Intel Corporation 4.1%
GOING FORWARD
The economy (gross domestic product, job creation, and housing) has been strong
since the year started. Some sectors of the market equate growth with an
inevitable rise in inflation. Interest rates have risen in the first half of the
year reflecting this sentiment. In general, the economy `self-corrects,' and we
anticipate a discernible slowing of growth in the second half. The markets are
anticipating election results later this year that would maintain the status
quo.
We remain positive that, while stock prices go up and down over the
short term, your investment in the Transamerica Premier Equity Fund continues to
be an attractive choice for your long-term investment needs. We will continue to
focus on growth stocks of what we consider to be `premier' companies -- those
companies which have strong managements that take advantage of competitive
positions to gain market share, grow profits and increase shareholder returns.
Thank you for your continued investment in the Transamerica Premier
Equity Fund.
Performance Highlights (10/2/95 -- 6/30/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 8.81% 8.31%
NAV per share at 6/30/96 $10.86 $10.83
$10,000 INVESTED IN THE PREMIER EQUITY FUND (10/2/95 - 6/30/96)**
5
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") 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 June 30, 1996. **Hypothetical illustration of $10,000 invested at
inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through June 30, 1996.
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.
Transamerica Premier Equity Fund
Schedule of Investments - June 30, 1996 (Unaudited)
Shares Value
Shares or
Principal
Amount Value
6
COMMON STOCKS 95.1%
Hotels & Restaurants 10.9%
Host Marriott Corporation (a) 35,000 $ 459,375
Marriott International Incorporated 14,000 752,500
Mirage Resorts Incorporated (a) 25,000 1,350,000
2,561,875
Industrial Machinery 10.1%
Briggs & Stratton Corporation 20,000 822,500
Cincinnati Milacron Incorporated 2,000 48,000
Illinois Tool Works Incorporated 10,000 676,250
Magna International Incorporated 18,000 828,000
2,374,750
Electronics 9.9%
Intel Corporation 13,000 954,688
Molex Incorporated 19,000 558,125
Motorola Incorporated 13,000 817,375
2,330,188
Business Services 9.9%
Automatic Data Processing Incorporated 15,000 579,375
CUC International Incorporated (a) 20,000 710,000
First Data Corporation 13,000 1,035,125
2,324,500
Financial Services 9.9%
Countrywide Credit Industries Incorporated 25,000 618,750
Merrill Lynch & Company Incorporated 11,000 716,375
Schwab (Charles) Corporation 40,000 980,000
2,315,125
Computers & Business Equipment 7.7%
Cisco Systems Incorporated (a) 14,000 792,750
Dell Computer Corporation (a) 20,000 1,017,500
1,810,250
Software 6.6%
Broderbund Software Incorporated (a) 7,000 225,750
Intuit (a) 10,000 472,500
Microsoft Corporation (a) 7,000 840,875
1,539,125
Insurance 4.6%
20th Century Industries (a) 30,000 498,750
American International Group Incorporated 6,000 591,750
1,090,500
Communication Services 3.8%
Silver King Communications Incorporated (a) 30,000 900,000
Retail Grocery 3.6%
Smith's Food & Drug Centers Incorporated 35,000 835,625
Automobiles 3.4%
General Motors Corporation 15,000 785,625
Banking 3.1%
Wells Fargo & Company 3,000 $ 716,625
Leisure Time 2.9%
Disney (Walt) Company 11,000 691,625
Aerospace & Defense 2.6%
Boeing Company 7,000 609,875
Publishing 2.3%
McGraw Hill Companies Incorporated 12,000 549,000
Drugs & Health Care 2.3%
Columbia/HCA Healthcare Corporation 10,000 533,750
Telecommunications 1.5%
Airtouch Communications Incorporated (a) 12,500 353,125
TOTAL COMMON STOCKS
(Cost $20,720,314) 22,321,563
REPURCHASE AGREEMENT 5.0%
State Street Bank and Trust Company, 4.50%, due 07/01/96, (collateralized by
$1,185,000 par value U.S. Treasury Notes, 5.875%, due 07/31/97, with a
value
of $1,212,387) (Cost $1,188,000) $1,188,000 1,188,000
TOTAL INVESTMENTS 100.1%
(Cost $21,908,314*) 23,509,563
LIABILITIES IN EXCESS OF
OTHER ASSETS (0.1)% (30,075)
NET ASSETS 100.0% $23,479,488
(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 $2,180,781 and $579,532,
respectively. Net unrealized appreciation for tax purposes is $1,601,249.
6
See notes to financial statements.
7
Transamerica Premier Index Fund
Portfolio Manager, Christopher J. Bonavico
7
FUND PERFORMANCE
Buoyed by stable interest rates and healthy corporate profits, stocks performed
strongly in the first six months of 1996. The Investor Class shares returned
9.67% in the first half of 1996. The equity market has retreated from its
mid-year high point as interest rates have moved higher amid concerns of higher
inflation.
The performance of the Transamerica Premier Index Fund reflects the
performance of the S&P 500 Index, although it may not match it precisely.
Generally, when the Index is rising, the value of the shares in the Fund should
also rise. When the market is declining, the value of the shares should also
decline.
PORTFOLIO MANAGER COMMENTS
"The Transamerica Premier Index Fund is a convenient way to invest in the
overall stock market, since the Fund aims to track the return of the S&P 500.
The companies in the Index are chosen by Standard & Poors to represent leading
firms and industries in the U.S. economy. By investing in the Fund, shareholders
participate in the performance of these leading companies while obtaining the
diversification of hundreds of stocks spanning ninety different industries. This
broad diversification helps reduce some of the risks associated with common
stock funds.
The goal of the Fund is to reflect the returns of the overall stock
market. Over the long run, stocks have outperformed all other asset classes in
investor returns. Stocks also have provided an excellent method for long-term
investors to increase their net worth ahead of inflation."
PORTFOLIO ASSET MIX
As of June 30, 1996, the Fund consisted of:
Common Stocks 87.7%
Cash or Cash Equivalents 11.3%
Other Assets 1.0%
As of June 30, 1996, the five
companies with the largest equity holdings in the portfolio were as follows:
General Electric Company 2.4%
Coca Cola Company 2.0%
Exxon Corporation 1.8%
AT&T Corporation 1.6%
Philip Morris Companies, Inc. 1.4%
Going Forward
Corporate profit performance will be an important factor determining stock
market performance in the second half. We are optimistic that many business
sectors will continue to post healthy profit gains, however, the pace of these
gains may slow as the economic cycle matures. Continued equity market gains will
require the confluence of strong profit growth and lower interest rates.
Our long term outlook for the stock market remains bright. The
competitiveness of American companies is unmatched throughout the world, and
these firms stand to benefit strongly from global economic expansion. We also
see lower inflation and interest rates in the long run, as the savings rates of
aging Americans rise. Lower rates should support higher equity prices in the
future.
Thank you for your continued investment in the Transamerica Premier
Index Fund.
The Transamerica Premier Index Fund is not sponsored, endorsed, sold,
or promoted by Standard & Poor's Corporation.
7
8
Transamerica Premier Index Fund
8
Performance Highlights (10/2/95 -- 6/30/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 16.14% 15.26%
NAV per share at 6/30/96 $11.41 $11.40
$10,000 INVESTED IN THE PREMIER INDEX FUND (10/2/95 - 6/30/96)**
8
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") 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 June 30, 1996. **Hypothetical illustration of $10,000 invested at
inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through June 30, 1996.
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. 9
Transamerica Premier Index Fund Schedule of Investments - June 30, 1996
(Unaudited) 9
Shares Value
Shares Value
9
COMMON STOCKS 87.7%
Drugs & Health Care 8.5%
Abbott Labs 1,126 $048,981
Allergan Incorporated 92 3,611
Alza Corporation (a) 119 3,258
American Home Products Corporation 896 53,872
Amgen Incorporated (a) 381 20,574
Bard (C R) Incorporated 82 2,788
Bausch & Lomb Incorporated 82 3,485
Baxter International Incorporated 389 18,380
Becton Dickinson & Company 92 7,383
Beverly Enterprises Incorporated (a) 141 1,692
Biomet Incorporated (a) 165 2,372
Bristol Myers Squibb Company 723 65,070
Columbia / HCA Healthcare Corporation 638 34,053
Community Psychiatric Centers (a) 62 589
Johnson & Johnson 1,910 94,545
Lilly (Eli) & Company 790 51,350
Manor Care Incorporated 90 3,544
Medtronic Incorporated 333 18,648
Merck & Company Incorporated 1,761 113,805
Pfizer Incorporated 913 65,165
Pharmacia & Upjohn Incorporated 722 32,039
Schering Plough Corporation 522 32,755
St. Jude Medical Incorporated (a) 100 3,350
Tenet Healthcare Corporation (a) 300 6,413
United Healthcare Corporation 250 12,625
United States Healthcare Incorporated 220 12,100
United States Surgical Corporation 82 2,542
Warner Lambert Company 388 21,340
736,329
Oil 6.6%
Amerada Hess Corporation 133 7,132
Amoco Corporation 712 51,531
Ashland Incorporated 91 3,606
Atlantic Richfield Company 230 27,255
Chevron Corporation 935 55,165
Exxon Corporation 1,779 154,551
Kerr McGee Corporation 74 4,505
Louisiana Land & Exploration Company 48 2,766
Mobil Corporation 565 63,351
Pennzoil Company 66 3,053
Phillips Petroleum Company 376 15,745
Royal Dutch Petroleum Company 768 118,080
Sun Incorporated 108 3,280
Tenneco Incorporated 249 12,730
Texaco Incorporated 379 31,789
Unocal Corporation 354 11,947
USX Marathon Group 412 8,291
574,777
Telecommunications 6.1%
Airtouch Communications Incorporated (a) 710 $020,057
Alltel Corporation 271 8,333
Ameritech Corporation 794 47,144
AT & T Corporation 2,291 142,042
Bell Atlantic Corporation 627 39,971
Bellsouth Corporation 1,424 60,342
GTE Corporation 1,388 62,113
MCI Communications Corporation 976 25,010
NYNEX Corporation 616 29,260
Pacific Telesis Group 611 20,621
Sprint Corporation 648 27,216
United States West Communications Group 672 21,420
United States West Media Group (a) 675 12,319
WorldCom Incorporated 300 16,613
532,461
Banking 5.9%
Banc One Corporation 651 22,134
Bank of New York Incorporated 287 14,709
Bank of Boston Corporation 161 7,970
Bankamerica Corporation 530 40,147
Bankers Trust New York Corporation 113 8,348
Barnett Banks Incorporated 136 8,296
Boatmens Bancshares Incorporated 225 9,028
Chase Manhattan Corporation 624 44,070
Citicorp 697 57,590
Comerica Incorporated 170 7,586
Corestates Financial Corporation 299 11,511
Fifth Third Bancorp 144 7,776
First Bank Systems Incorporated 209 12,122
First Chicago NBD Corporation 460 17,997
First Union Corporation 408 24,837
Fleet Financial Group Incorporated 380 16,530
Keycorp 339 13,136
MBNA Corporation 319 9,092
Mellon Bank Corporation 191 10,887
Morgan (J P) & Company Incorporated 269 22,764
National City Corporation 209 7,341
Nationsbank Corporation 424 35,033
Norwest Corporation 506 17,647
PNC Bank Corporation 489 14,548
Republic New York Corporation 81 5,042
Suntrust Banks Incorporated 324 11,988
United States Bancorp 217 7,839
Wachovia Corporation 244 10,675
Wells Fargo & Company 139 33,204
509,847
Food & Beverages 5.6%
Archer Daniels Midland Company 751 14,363
Campbell Soup Company 357 25,168
Food & Beverages (continued)
Coca Cola Company 3,594 $175,657
Conagra Incorporated 353 16,017
CPC International Incorporated 208 14,976
General Mills Incorporated 228 12,426
Heinz (H J) Company 530 16,099
Hershey Foods Corporation 111 8,145
Kellogg Company 312 22,854
Pepsico Incorporated 2,258 79,877
Pioneer Hi-Bred International Incorporated 120 6,345
Quaker Oats Company 192 6,552
Ralston Purina Company 152 9,747
Sara Lee Corporation 694 22,468
Sysco Corporation 263 9,008
Unilever N V 229 33,233
Whitman Corporation 151 3,643
Wrigley (Wm) Junior Company 166 8,383
484,961
Depositary Receipt 4.2%
S & P Depositary Receipt Trust 5,400 362,306
Computers & Business Equipment 3.8%
Applied Materials Incorporated (a) 257 7,839
3Com Corporation (a) 236 10,797
Amdahl Corporation (a) 171 1,838
Bay Networks Incorporated (a) 262 6,747
Cabletron Systems Incorporated (a) 103 7,068
Ceridian Corporation (a) 95 4,798
Cisco Systems Incorporated (a) 792 44,847
Compaq Computer Corporation (a) 380 18,715
Cray Research Incorporated (a) 18 434
Data General Corporation (a) 54 702
Digital Equipment Corporation (a) 219 9,855
EMC Corporation (a) 300 5,588
Hewlett Packard Company 731 72,826
Intergraph Corporation (a) 66 800
International Business Machines 815 80,685
Pitney Bowes Incorporated 217 10,362
Sun Microsystems Incorporated (a) 263 15,484
Tandem Computers Incorporated (a) 168 2,079
Tandy Corporation 91 4,311
Unisys Corporation (a) 246 1,753
Xerox Corporation 465 24,877
332,405
Retail 3.6%
Charming Shoppes Incorporated 148 1,045
Circuit City Stores Incorporated 140 5,058
Dayton Hudson Corporation 103 10,622
Dillard Department Stores Incorporated 162 5,913
Federated Department Stores Incorporated (a) 290 9,896
Gap Incorporated 412 13,235
Home Depot Incorporated 683 36,882
Kmart Corporation 650 $008,044
Limited Incorporated 391 8,407
Longs Drug Stores Corporation 29 1,294
Lowes Companies Incorporated 230 8,309
May Department Stores Company 357 15,619
Melville Corporation 151 6,116
Mercantile Stores Incorporated 53 3,107
Nordstrom Incorporated 116 5,162
Penney (J C) Incorporated 320 16,800
Pep Boys Manny Moe & Jack 89 3,026
Price Costco Incorporated (a) 280 6,055
Rite Aid Corporation 120 3,570
Sears Roebuck & Company 559 27,181
Supervalu Incorporated 97 3,056
TJX Companies Incorporated 103 3,476
Toys R Us Incorporated (a) 393 11,200
Wal Mart Stores Incorporated 3,305 83,864
Walgreen Company 353 11,825
Woolworth Corporation 192 4,320
313,082
Electrical Equipment 3.4%
Boston Scientific Corporation (a) 249 11,205
Cooper Industries Incorporated 155 6,432
Emerson Electric Company 321 29,010
General Electric Company 2,393 206,994
General Instrument Corporation (a) 150 4,331
General Signal Corporation 68 2,576
Grainger (W W) Incorporated 73 5,658
Johnson Controls Incorporated 59 4,101
Millipore Corporation 64 2,680
National Service Industries Incorporated 69 2,700
Raychem Corporation 64 4,600
Westinghouse Electric Corporation 591 11,081
291,368
Electronics 2.9%
Advanced Micro Devices Incorporated (a) 188 2,562
AMP Incorporated 312 12,519
Andrew Corporation (a) 84 4,515
Apple Computer 177 3,717
DSC Communications Corporation (a) 165 4,971
EG & G Incorporated 69 1,475
Harris Corporation 56 3,416
Honeywell Incorporated 182 9,919
Intel Corporation 1,177 86,436
LSI Logic Corporation (a) 186 4,836
Micron Technology Incorporated 298 7,711
Motorola Incorporated 845 53,129
National Semiconductor Corporation (a) 194 3,007
Perkin Elmer Corporation 62 2,991
Raytheon Company 346 17,862
Scientific Atlanta Incorporated 110 1,705
Silicon Graphics Incorporated (a) 233 $005,592
Tektronix Incorporated 48 2,148
Teledyne Incorporated 80 2,890
Tellabs Incorporated (a) 127 8,493
Texas Instruments Incorporated 270 13,466
Thomas & Betts Corporation 58 2,175
255,535
Electric Utilities 2.8%
American Electric Power Incorporated 267 11,381
Baltimore Gas & Electric Company 211 5,987
Carolina Power & Light Company 221 8,398
Central & South West Corporation 296 8,584
Cinergy Corporation 225 7,200
Consolidated Edison Company Incorporated 337 9,857
Dominion Resources Incorporated 252 10,080
DTE Energy Company 208 6,422
Duke Power Company 294 15,067
Edison International 643 11,333
Entergy Corporation 326 9,250
FPL Group Incorporated 265 12,190
General Public Utilities Corporation 172 6,063
Houston Industries Incorporated 376 9,259
Niagara Mohawk Power Corporation 207 1,604
Northern States Power Company 98 4,839
Ohio Edison Company 219 4,791
P P & L Resources Incorporated 228 5,387
Pacific Gas & Electric Company 600 13,950
Pacificorp 420 9,345
Peco Energy Company 318 8,268
Public Service Enterprise Group 351 9,609
Southern Company 955 23,517
Texas Utilities Company 324 13,851
Unicom Corporation 308 8,585
Union Electric Company 146 5,877
240,694
Financial Services 2.7%
Allstate Corporation 641 29,246
American Express Company 694 30,970
Beneficial Corporation 76 4,266
Dean Witter Discover & Company 244 13,969
Federal Home Loan Mortgage Corporation 259 22,144
Federal National Mortgage Association 1,564 52,394
Green Tree Financial Corporation 197 6,156
Household International Incorporated 141 10,716
Merrill Lynch & Company Incorporated 252 16,411
Morgan Stanley Group Incorporated 223 10,955
Salomon Incorporated 152 6,688
Travelers Group Incorporated 679 30,979
234,894
Insurance 2.5%
Aetna Life & Casualty Company 165 $011,797
Alexander & Alexander Services 64 1,264
American General Corporation 293 10,658
American International Group Incorporated 679 66,966
Aon Corporation 150 7,613
Chubb Corporation 250 12,469
Cigna Corporation 109 12,848
General Re Corporation 118 17,965
ITT Hartford Group Incorporated (a) 171 9,106
Jefferson Pilot Corporation 102 5,266
Lincoln National Corporation 149 6,891
Loews Corporation 169 13,330
Marsh & McLennan Companies Incorporated 105 10,132
Providian Corporation 136 5,831
Safeco Corporation 180 6,368
St. Paul Companies Incorporated 121 6,474
Torchmark Incorporated 103 4,506
Unum Corporation 104 6,474
US Life Corporation 49 1,611
USF & G Corporation 161 2,636
220,205
Chemicals 2.5%
Air Products & Chemicals Incorporated 160 09,240
Dow Chemical Company 375 28,500
Du Pont (E I) De Nemours & Company 796 62,983
Eastman Chemical Company 115 7,001
FMC Corporation (a) 53 3,458
Goodrich (B F) Company 76 2,841
Grace (W R) & Company 140 9,922
Great Lakes Chemical Corporation 93 5,789
Hercules Incorporated 158 8,729
Mallinckrodt Group Incorporated 106 4,121
Monsanto Company 835 27,137
Morton International Incorporated 211 7,860
Nalco Chemical Company 96 3,024
PPG Industries Incorporated 276 13,455
Praxair Incorporated 200 8,450
Rohm & Haas Company 96 6,024
Sigma-Aldrich Corporation 71 3,799
Union Carbide Corporation 197 7,831
220,164
Household Appliances & Products 2.3%
Black & Decker Corporation 123 4,751
Clorox Company 74 6,558
Colgate Palmolive Company 209 17,713
Corning Incorporated 328 12,587
Gillette Company 636 39,670
Maytag Corporation 155 3,236
Newell Company 227 6,952
Household Appliances & Products (continued)
Procter & Gamble Company 984 $089,175
Rubbermaid Incorporated 226 6,158
Snap-On Incorporated 58 2,748
Stanley Works 128 3,808
Whirlpool Corporation 106 5,260
198,616
Software 2.0%
Autodesk Incorporated 66 1,972
Computer Associates International Incorporated 347 24,724
Microsoft Corporation (a) 851 102,226
Novell Incorporated (a) 527 7,312
Oracle Systems Corporation (a) 936 36,914
Shared Medical Systems Corporation 33 2,120
175,268
Tobacco 1.7%
American Brands Incorporated 260 11,798
Philip Morris Companies Incorporated 1,196 124,384
UST Incorporated 277 9,487
145,669
Aerospace & Defense 1.7%
Boeing Company 492 42,866
Computer Sciences Corporation (a) 80 5,980
General Dynamics Corporation 90 5,580
Lockheed Martin Corporation 285 23,940
McDonnell Douglas Corporation 322 15,617
Northrop Grumman Corporation 71 4,837
Rockwell International Corporation 311 17,805
TRW Incorporated 94 8,448
United Technologies Corporation 175 20,125
145,198
Automobiles 1.6%
Chrysler Corporation 541 33,542
Ford Motor Company 1,533 49,631
General Motors Corporation 1,074 56,251
Paccar Incorporated 56 2,744
142,168
Paper & Forest Products 1.3%
Alco Standard Corporation 183 8,281
Boise Cascade Corporation 69 2,527
Champion International Corporation 138 5,762
Georgia Pacific Corporation 132 9,372
International Paper Company 422 15,561
James River Corporation 122 3,218
Kimberly Clark Corporation 399 30,823
Louisiana Pacific Corporation 155 3,429
Mead Corporation 77 3,994
Potlatch Corporation 42 1,643
Stone Container Corporation 143 1,966
Union Camp Corporation 101 4,924
Westvaco Corporation 144 $0 4,302
Weyerhaeuser Company 289 12,282
Willamette Industries Incorporated 79 4,701
112,785
Business Services 1.1%
Automatic Data Processing Incorporated 416 16,068
Block (H & R) Incorporated 149 4,861
CUC International Incorporated (a) 261 9,265
De Luxe Corporation 118 4,189
Donnelley (R R) & Sons Company 220 7,673
Ecolab Incorporated 93 3,069
First Data Corporation 319 25,400
Humana Incorporated (a) 232 4,147
Interpublic Group Companies Incorporated 112 5,250
Ogden Corporation 70 1,269
Safety Kleen Corporation 83 1,453
Service Corporation International 168 9,660
92,304
Leisure Time 1.0%
Bally Entertainment Group (a) 67 1,842
Brunswick Corporation 137 2,740
Disney (Walt) Company 971 61,051
Harrahs Entertainment Incorporated (a) 147 4,153
ITT Corporation (a) 171 11,329
King World Productions Incorporated (a) 53 1,928
Outboard Marine Corporation 29 526
83,569
Communication Services 1.0%
Loral Space & Communications (a) 249 3,393
Northern Telecom Limited 364 19,792
SBC Communications Incorporated 872 42,946
Tele Communications Incorporated (a) 935 16,947
83,078
Conglomerates 0.9%
Allied Signal Incorporated 405 23,135
Harcourt General Incorporated 104 5,200
Minnesota Mining & Manufacturing Company 601 41,469
Textron Incorporated 122 9,745
79,549
Hotels & Restaurants 0.9%
Darden Restaurants Incorporated 227 2,440
Dial Corporation 135 3,864
Hilton Hotels Corporation 69 7,763
Luby's Cafeterias Incorporated 33 776
Marriott International Incorporated 179 9,621
McDonald's Corporation 995 46,516
Ryan's Family Steak Houses Incorporated (a) 77 712
Shoney's Incorporated (a) 60 653
Wendy's International Incorporated 170 3,166
75,511
Railroads & Equipment 0.9%
Burlington Northern Santa Fe 203 $16,418
Conrail Incorporated 112 7,434
CSX Corporation 302 14,572
Norfolk Southern Corporation 186 15,763
Union Pacific Corporation 295 20,613
74,800
Gas & Pipeline Utilities 0.7%
Coastal Corporation 150 6,262
Columbia Gas Systems Incorporated (a) 78 4,066
Consolidated Natural Gas Company 134 7,001
Eastern Enterprises 29 964
Enron Corporation 361 14,756
Enserch Corporation 98 2,132
Nicor Incorporated 72 2,043
Oneok Incorporated 39 975
Pacific Enterprises 121 3,585
PanEnergy Corporation 215 7,068
Peoples Energy Corporation 50 1,675
Sonat Incorporated 123 5,535
Williams Companies Incorporated 146 7,227
63,289
Petroleum Services 0.7%
Baker Hughes Incorporated 204 6,707
Dresser Industries Incorporated 259 7,640
Halliburton Company 164 9,102
Helmerich and Payne Incorporated 35 1,282
McDermott International Incorporated 78 1,628
Rowan Companies Incorporated (a) 121 1,785
Schlumberger Limited 347 29,235
Western Atlas Incorporated (a) 76 4,427
61,806
Gold & Mining 0.6%
Barrick Gold Corporation 506 13,725
Cyprus Amax Minerals Company 133 3,009
Echo Bay Mines Limited 181 1,946
Freeport McMoRan Copper & Gold 289 9,212
Homestake Mining Company 198 3,391
Newmont Mining Corporation 135 6,666
Phelps Dodge Corporation 99 6,175
Placer Dome Incorporated 343 8,189
Santa Fe Pacific Gold Corporation 188 2,655
54,968
Industrial Machinery 0.6%
Briggs & Stratton Corporation 41 1,686
Cincinnati Milacron Incorporated 49 1,176
Crane Company 43 1,763
Cummins Engine Incorporated 57 2,301
Giddings & Lewis Incorporated 49 796
Illinois Tool Works Incorporated 168 11,361
Ingersoll Rand Company 156 $ 6,825
ITT Industries Incorporated 171 4,296
Nacco Industries Incorporated 13 720
Pall Corporation 164 3,957
Parker Hannifin Corporation 106 4,492
Timken Company 45 1,744
Trinova Corporation 42 1,402
Tyco Interest Limited 219 8,924
Varity Corporation (a) 58 2,791
54,234
Publishing 0.6%
American Greetings Corporation 107 2,929
Dun & Bradstreet Corporation 243 15,187
Harland (John H) Company 44 1,084
Jostens Incorporated 55 1,086
McGraw Hill Companies Incorporated 144 6,588
Meredith Corporation 40 1,670
Time Warner Incorporated 555 21,784
50,328
Liquor 0.6%
Anheuser-Busch Companies Incorporated 364 27,300
Brown-Forman Corporation 99 3,960
Coors (Adolph) Company 54 965
Seagram Limited 536 18,023
50,248
Retail Grocery 0.5%
Albertsons Incorporated 362 14,978
American Stores Company 210 8,662
Fleming Companies Incorporated 53 762
Giant Foods Incorporated 85 3,049
Great Atlantic & Pacific Tea Incorporated 55 1,808
Kroger Company (a) 177 6,992
Winn Dixie Stores Incorporated 219 7,747
43,998
Newspapers 0.5%
Dow Jones & Company Incorporated 139 5,803
Gannett Incorporated 201 14,221
Knight Ridder Incorporated 70 5,075
New York Times Company 138 4,502
Times Mirror Company 156 6,786
Tribune Company 91 6,609
42,996
Photography 0.5%
Eastman Kodak Company 490 38,097
Polaroid Corporation 65 2,966
41,063
Apparel & Textiles 0.5%
Brown Group Incorporated 26 $ 452
Fruit Of The Loom Incorporated (a) 109 2,779
Liz Claiborne 106 3,670
Nike Incorporated 205 21,064
Reebok International Limited 108 3,631
Russell Corporation 56 1,547
Springs Industries Incorporated 29 1,465
Stride Rite Corporation 71 586
V F Corporation 91 5,426
40,620
Construction & Mining Equipment 0.4%
Case Corporation 102 4,896
Caterpillar Incorporated 283 19,173
Dover Corporation 163 7,518
Foster Wheeler Corporation 57 2,558
Harnischfeger Industries Incorporated 67 2,228
36,373
Pollution Control 0.4%
Browning Ferris Industries Incorporated 305 8,845
Laidlaw Incorporated 421 4,262
WMX Technologies Incorporated 697 22,827
35,934
Aluminum 0.3%
Alcan Aluminum Limited 322 9,821
Aluminum Company of America 254 14,573
Reynolds Metals Company 91 4,744
29,138
Broadcasting 0.3%
Comcast Corporation 344 6,364
Viacom Incorporated (a) 528 20,526
26,890
Gas Exploration 0.3%
Burlington Resources Incorporated 181 7,783
Noram Energy Corporation 178 1,936
Occidental Petroleum Corporation 456 11,286
Oryx Energy Company (a) 151 2,453
Santa Fe Energy Resources Incorporated (a) 129 1,532
24,990
Air Travel 0.3%
AMR Corporation (a) 109 9,919
Delta Air Lines Incorporated 73 6,059
Southwest Airlines Company 206 6,000
US Air Group Incorporated (a) 90 1,620
23,598
Auto Parts 0.3%
Dana Corporation 145 4,495
Eaton Corporation 111 6,507
Echlin Incorporated 88 3,333
Genuine Parts Company 176 8,052
22,387
Construction Materials 0.2%
Armstrong World Industries Incorporated 53 $ 3,054
Masco Corporation 230 6,958
Owens Corning Fiberglass Corporation (a) 73 3,139
Sherwin Williams Company 122 5,673
18,824
Cosmetics & Toiletries 0.2%
Alberto Culver Company 40 1,855
Avon Products Incorporated 194 8,754
International Flavors & Fragances 159 7,573
18,182
Steel 0.2%
Armco Incorporated (a) 152 760
Bethlehem Steel Corporation (a) 161 1,912
Inland Steel Industries Incorporated 70 1,374
Nucor Corporation 125 6,328
USX United States Steel 119 3,376
Worthington Industries Incorporated 130 2,714
16,464
Toys & Amusements 0.2%
Hasbro Incorporated 126 4,505
Mattel Incorporated 396 11,335
15,840
Containers & Glass 0.2%
Ball Corporation 43 1,236
Bemis Incorporated 76 2,660
Crown Cork & Seal Incorporated 179 8,055
Temple Inland Incorporated 80 3,740
15,691
Agricultural Machinery 0.2%
Deere & Company 377 15,080
Trucking & Freight Forwarding 0.2%
Caliber Systems Incorporated 56 1,904
Consolidated Freightways Incorporated 62 1,310
Federal Express Corporation (a) 81 6,642
Navistar International Corporation (a) 105 1,037
Ryder Systems Incorporated 114 3,206
Yellow Corporation 40 530
14,629
Savings & Loan 0.2%
Ahmanson (H F) & Company 168 4,536
Golden West Financial Corporation 84 4,704
Great Western Financial Corporation 196 4,680
13,920
Tires & Rubber 0.2%
Cooper Tire & Rubber Company 120 2,670
Goodyear Tire & Rubber Company 218 10,519
13,189
Non-Ferrous Metals 0.1%
Asarco Incorporated 61 $0,001,685
Engelhard Corporation 206 4,738
Inco Limited 169 5,450
11,873
Building Construction 0.1%
Centex Corporation 41 1,276
Fluor Corporation 120 7,845
Kaufman & Broad Home Corporation 46 667
Pulte Corporation 39 1,043
10,831
Office Furnishings & Supplies 0.1%
Avery Dennison Corporation 76 4,171
Moore Corporation Limited 143 2,699
6,870
Mobile Homes 0.0%
Fleetwood Enterprises Incorporated 66 2,046
TOTAL COMMON STOCKS
(Cost $7,130,157) 7,593,842
COMMERCIAL PAPER 10.8%
General Electric Capital Corporation
5.300% 09/20/1996 $300,000296,422
Merrill Lynch & Company Incorporated
5.380% 09/20/1996 100,000 98,790
5.400% 09/20/1996 550,000 543,317
TOTAL COMMERCIAL PAPER
(Cost $938,529) 938,529
U.S. GOVERNMENT SECURITIES 0.5%
United States Treasury Bills**
(Cost $39,548)
5.090% 09/19/1996 $ 40,00039,548
TOTAL INVESTMENTS 99.0%
(Cost $8,108,234*) 8,571,919
OTHER ASSETS LESS LIABILITIES 1.0% 89,689
NET ASSETS 100.0% $8,661,608
(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
$574,856 and $111,171, respectively. Net unrealized appreciation for
tax purposes is $463,685.
**$40,000 par value of U.S. Treasury Bills has been pledged as
collateral for initial margin for futures contracts.
SCHEDULE OF FUTURES CONTRACTS
Number Contract Total Unrealized
of Contracts Description Contract Value Loss
3 S&P 500 $1,015,200 $(14,925)
September 1996 (long)
9
See notes to financial statements.
10
rica Premier Index Fund
Schedule of Investments - June 30, 1996 (Unaudited)
(Continued)
10
Shares Value
Shares Value
10
See notes to financial statements.
11
Shares Value
Shares Value
11
11
See notes to financial statements.
12
Transamerica Premier Index Fund
Schedule of Investments - June 30, 1996 (Unaudited)
12
Shares Value
Shares Value
12
See notes to financial statements.
13
Shares Value
Shares Value
13
13
See notes to financial statements.
14
Transamerica Premier Index Fund
Schedule of Investments - June 30, 1996 (Unaudited)
(Continued)
14
Shares Value
Shares Value
14
See notes to financial statements.
15
Shares or
Principal
Amount Value
15
15
See notes to financial statements.
16
Transamerica Premier Bond Fund
Portfolio Manager, Sharon K. Kilmer
FUND PERFORMANCE
1996 has been a difficult year for bond investors. It began with high
expectations a slow growth economy, little inflation, and declining interest
rates. However, economic growth accelerated, producing employment gains through
May. Inflation fears rekindled. The 30-year U.S. Government Bond demonstrated
volatility, beginning the year yielding 5.9%, jumping to 7% in March and April,
and closing in June below that level.
The Transamerica Premier Bond Fund's performance, reflecting these
market conditions, was down 3.97% for the six months ending June 30, 1996, for
investor class shares. The longer maturity bonds in which we primarily invest
tend to produce higher income than bonds with shorter maturities. Longer
maturity bonds also tend to vary more in price in response to changing interest
rates. Due to the longer maturity of the Fund's assets, the price of the Fund'
securities can fluctuate more sharply than shorter-term securities when interest
rates go up or down.
Portfolio manager Comments
"We invest in bonds with relatively long average maturities in order to
capitalize on our research expertise, not to speculate on interest rates. We had
two large positions that significantly outperformed the market this year. Arkla
Incorporated was upgraded to an investment-grade rating, as we anticipated.
Tenet Healthcare was also upgraded from a mid-BB to a high BB rating. We expect
this company's financial condition to continue to improve."
Portfolio asset mix
As of June 30, 1996, the Fund consisted of:
Corporate Bonds 60.4%
U.S. Treasury Securities 35.3%
Cash or Cash Equivalents 3.2%
Other Assets 1.1%
Going Forward
For the past two years the bond market has been rallying and selling off due to
fears that growth will lead to inflation. If there is concern that a "run-away
economy" is looming, the Federal Reserve will step in with tighter money policy
by increasing short-term interest rates to slow the economy down. Thus far in
1996, housing, employment, and gross domestic product numbers have been stronger
than expected.
We anticipate that economic growth will slow down on its own, which
will ease inflation fears. We expect interest rates to be lower by year end. The
Transamerica Premier Bond Fund will continue to be invested in longer-term debt
of high-quality, well-managed corporations that should perform well under our
slower growth, low inflation scenario.
Thank you for your continued investment in the Transamerica Premier Bond Fund.
ghlights (10/2/95 -- 6/30/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 0.66% 0.10%
NAV per share at 6/30/96 $9.63 $9.63
$10,000 INVESTED IN THE PREMIER bond FUND (10/2/95 - 6/30/96)** 17 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.
*Total return for the period from October 2, 1995 (commencement of
operations) through June 30, 1996. **Hypothetical illustration of $10,000
invested at inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through June 30, 1996.
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. 17
18 Transamerica Premier Bond Fund Schedule of Investments - June
30, 1996 (Unaudited) 18
Interest Maturity Principal
Rate Date Amount Value
CORPORATE BONDS 60.4%
Finance & Banking 10.6%
Bank of Boston Corporation 6.625% 12/01/2005 $0,400,000 $0,378,492
First Union Corporation 6.875% 09/15/2005 400,000 386,156
Ford Motor Credit Company 6.375% 10/06/2000 500,000 490,900
1,255,548
Industrials 8.3%
Lockheed Martin Corporation 7.650% 05/01/2016 500,000 498,105
Mallinckrodt Group Incorporated 6.750% 09/15/2005 500,000 479,545
977,650
Electric Utilities 7.9%
Commonwealth Edison Company 7.000% 07/01/2005 300,000 287,334
Gulf States Utilities Company 8.250% 04/01/2004 400,000 409,772
Northern States Power Company 7.125% 07/01/2025 250,000 238,773
935,879
Other Utilities 7.1%
Arkla Incorporated 8.900% 12/15/2006 400,000 435,436
Hydro Quebec 7.375% 02/01/2003 400,000 405,076
840,512
Drugs & Health Care 7.0%
American Home Products Corporation 7.900% 02/15/2005 400,000 418,272
Tenet Healthcare Corporation 8.625% 12/01/2003 400,000 405,500
823,772
Petroleum Services 3.9%
Anadarko Petroleum Corporation 5.875% 10/15/2003 500,000 457,910
Aerospace & Defense 3.8%
Boeing Company 8.625% 11/15/2031 400,000 449,904
Automobiles 3.7%
General Motors Corporation 9.625% 12/01/2000 400,000 440,664
Liquor 3.2%
Anheuser Busch Companies Incorporated 7.250% 09/15/2015 400,000 385,632
Gas Exploration 2.9%
Burlington Resources Incorporated 9.125% 10/01/2021 300,000 342,696
Retail 2.0%
Pathmark Stores Incorporated 9.625% 05/01/2003 250,000 232,500
TOTAL CORPORATE BONDS
(Cost $7,404,851) 7,142,667
U.S. GOVERNMENT SECURITIES 35.3%
United States Treasury Bonds 7.500% 11/15/2016 500,000 525,310
United States Treasury Bonds 7.625% 02/15/2025 700,000 754,250
United States Treasury Notes 6.500% 05/15/2005 1,500,000 1,480,305
United States Treasury Notes 6.500% 08/15/2005 300,000 295,686
United States Treasury Notes 5.875% 11/15/2005 1,180,000 1,111,595
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $4,376,908) 4,167,146
Interest Maturity Principal
Rate Date Amount Value
REPURCHASE AGREEMENT 3.2%
State Street Bank and Trust Company, (collateralized
by $380,000 par value U.S. Treasury Notes, 5.875%,
due 07/31/97, with a value of $388,782) (Cost $377,000)4.500% 07/01/1996
$377,000 $ 377,000
TOTAL INVESTMENTS 98.9%
(Cost $12,158,759*) 11,686,813
OTHER ASSETS LESS LIABILITIES 1.1% 134,758
NET ASSETS 100.0% $11,821,571
*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 $2,361 and $474,307,
respectively. Net unrealized depreciation for tax purposes is $471,946.
See notes to financial statements.
19
See notes to financial statements.
20
Transamerica Premier Balanced Fund
Portfolio Managers, Sharon K. Kilmer and Jeffrey S. Van Hart 20 FUND
PERFORMANCE The word Obalanced' correctly describes the Fund by representing
participation in the stock and bond markets. The Fund's year-to-date performance
as of June 30, 1996 was 4.58% for the Investor Class. (It has been a strong year
for equity investments and a more difficult year for bond investments).
In general, the Fund holds equities for long-term capital appreciation,
and holds bonds for stability of principal and income as well as a reserve for
investment opportunities. This balance often creates a situation where some of
the market risks offset one another. The expected performance of this Fund lies
somewhere between the performance of an equity fund (holding the same stocks)
and a bond fund (holding the same bonds).
Portfolio managerS Comment
"We invest with a long-term time horizon in the stocks and bonds of premier
companies. We define Opremier' as companies that are leaders in their respective
industries and shareholder driven. We also try to identify fundamental changes
or trends that are taking place over a long period of time, and we invest in
those trends.
Some of the fundamental trends we like are the shift from paper
transactions to electronic transactions through increased credit and debit card
usage. The Fund has investments in First Data Corp., a credit card processor,
and Transaction System Architects, a debit card processor. Standard-setting
companies like Intel and Microsoft will continue to benefit from the substantial
investments in technology being made worldwide. Finally, demographic shifts in
the population have increased the demand for both savings and investment
products as well as leisure and entertainment offerings. The Fund's investments
in Charles Schwab, Franklin Resources, Mirage Resorts and Walt Disney are
leading companies that should benefit.
Generally, stock selection will focus on companies that are growing,
not because they are simply raising prices, but rather, because they are selling
more products or taking market share from competitors."
Portfolio asset mix
As of June 30, 1996, the Fund consisted of:
Common Stocks 60.9%
Bonds 32.3%
Cash or Cash Equivalents 6.8%
Going Forward
We expect that common stocks will represent 60% to 70% of the Fund's total
assets. At the half point of 1996, stocks have run ahead of bonds. Therefore, we
do not expect to increase the Fund's percentage allocation to stocks. We remain
positive that the Transamerica Premier Balanced Fund's attention to Opremier'
companies and fundamental change will produce superior investment results over a
long period of time.
Thank you for your
continued investment in
the Transamerica Premier Balanced Fund.
Performance Highlights (10/2/95 -- 6/30/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 6.99% 6.49%
NAV per share at 6/30/96 $10.56 $10.57
$10,000 INVESTED IN THE PREMIER balanced FUND (10/2/95 - 6/30/96)** 21
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") 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 & Poor's 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.
*Total return for the period from October 2, 1995 (commencement of operations)
through June 30, 1996. **Hypothetical illustration of $10,000 invested at
inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through June 30, 1996.
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. 21
22 Transamerica Premier Balanced Fund Schedule of Investments -
June 30, 1996 (Unaudited) 22
Shares Value
Shares or
Principal
Amount Value
COMMON STOCKS 60.9%
Software 9.6%
Autodesk Incorporated 9,000 $ 268,875
Broderbund Software Incorporated (a) 8,000 258,000
Intuit (a) 8,000 378,000
Microsoft Corporation (a) 4,000 480,500
1,385,375
Hotels & Restaurants 7.1%
Host Marriott Corporation (a) 20,000 262,500
Marriott International Incorporated 5,500 295,625
Mirage Resorts Incorporated (a) 8,500 459,000
1,017,125
Computers & Business Equipment 6.9%
Applied Materials Incorporated (a) 8,000 244,000
Cisco Systems Incorporated (a) 7,000 396,375
Dell Computer Corporation (a) 7,000 356,125
996,500
Business Services 6.1%
First Data Corporation 6,500 517,562
Transaction Systems Architects Incorporated (a) 5,500 368,500
886,062
Financial Services 5.1%
Franklin Resources Incorporated 6,000 366,000
Schwab (Charles) Corporation 15,000 367,500
733,500
Industrial Machinery 3.9%
Briggs & Stratton Corporation 8,000 329,000
Illinois Tool Works Incorporated 3,500 236,688
565,688
Electronics 3.3%
Intel Corporation 6,500 477,344
Leisure Time 3.1%
Disney (Walt) Company 7,000 440,125
Retail Grocery 2.7%
Smith's Food & Drug Centers Incorporated 16,000 382,000
Publishing 2.5%
McGraw Hill Companies Incorporated 8,000 366,000
Banking 2.5%
Wells Fargo & Company 1,500 358,312
Electrical Equipment 2.3%
Millipore Corporation 8,000 335,000
Communication Services 2.1%
Silver King Communications Incorporated (a) 10,000 300,000
Telecommunications 2.0%
Airtouch Communications Incorporated (a) 10,000 282,500
Household Appliances & Products 1.7% Gillette Company 4,000 $ 249,500 TOTAL
COMMON STOCKS (Cost $7,945,457) 8,775,031 CORPORATE BONDS 20.6% Finance &
Banking 6.1% First Union Corporation
6.875% 09/15/2005 $300,000289,617
General Motors Acceptance Corporation
7.375% 05/28/1999 300,000 305,817
Mellon Bank Corporation
7.000% 03/15/2006 300,000 292,401
887,835
Electric Utilities 4.1%
Commonwealth Edison Company
7.000% 07/01/2005 300,000 287,334
Gulf States Utilities Company
8.250% 04/01/2004 300,000 307,329
594,663
Drugs & Health Care 2.2%
American Home Products Corporation
7.900% 02/15/2005 300,000 313,704
Gas & Pipeline Utilities 2.1%
Williams Companies Incorporated
7.500% 09/15/1999 300,000 301,500
Retail 2.0%
Dayton-Hudson Corporation
6.400% 02/15/2003 300,000 284,322
Petroleum Services 1.9%
Anadarko Petroleum Corporation
5.875% 10/15/2003 300,000 274,746
Other Utilities 1.5%
Arkla Incorporated
8.900% 12/15/2006 200,000 217,718
Broadcasting 0.7%
Viacom Incorporated
7.750% 06/01/2005 100,000 97,502
TOTAL CORPORATE BONDS
(Cost $3,071,643) 2,971,990
U.S. GOVERNMENT SECURITIES 11.7%
United States Treasury Notes
6.375% 08/15/2002 $ 400,000 $ 396,812
5.875% 11/15/2005 1,370,000 1,290,581
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $1,796,952) 1,687,393
REPURCHASE AGREEMENT 6.6%
State Street Bank and Trust Company, (collateralized by $950,000 par
value U.S. Treasury Notes, 5.875%, due 07/31/97, with a value
of $971,955)
(Cost $948,000) 4.500% 07/01/1996 $ 948,000 948,000
TOTAL INVESTMENTS 99.8%
(Cost $13,762,052*) 14,382,414
OTHER ASSETS LESS LIABILITIES 0.2% 34,874
NET ASSETS 100.0% $14,417,288
(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 $1,230,822 and $610,460,
respectively. Net unrealized appreciation for tax purposes is $620,362.
See notes to financial statements.
Principal
Amount Value
See notes to financial statements.
Transamerica Premier Short-Intermediate Government Fund
Portfolio Manager, Kevin J. Hickam
24
FUND PERFORMANCE
We expected interest rates would decline in 1996 due to moderate economic growth
and low inflation. In fact, economic growth in the first half of the year was
much stronger than anticipated, resulting in significant job creation and robust
consumer spending. This, in turn, led to higher interest rates and an overall
climate of caution.
We have shortened the maturity of our holdings as compared to the
beginning of 1996. Forecasts are constantly monitored and, if the outlook
changes, we will adjust the mix of securities.
PORTFOLIO MANAGER COMMENTS
"The Transamerica Premier Short-Intermediate Government 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.
Our goal is to offer higher income than money market funds, with
greater price stability than most longer-term bond funds. If you are a
conservative investor who wants less fluctuation in the value of your
investments, the Fund's shorter-term securities and credit quality may give you
more peace of mind.
If you are seeking higher yields than those offered by savings
accounts or money market securities, shorter-term U.S. government-backed
securities make sense. U.S. government bonds have traditionally been a
conservative choice for shorter-term income
investors."
portfolio asset mix
As of June 30, 1996, the Fund consisted of:
U.S. Government Securities 96%
Other Assets 4%
Going Forward
For the remainder of 1996, we do not anticipate inflation to be a significant
factor and believe that the Federal Reserve will continue to do a good job
guiding the economy. We believe the third quarter will mark the peak in interest
rates, and the strategy will be to lengthen the Fund maturity as a result.
In summary, Transamerica Premier Short-Intermediate Government Fund
provides a solid choice for the fixed-income component of your diversified
holdings by providing the opportunity to earn a higher return than cash, over
time.
Thank you for your continued investment in the Transamerica Premier
Short-Intermediate Government Fund.
Performance Highlights (10/2/95 -- 6/30/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 2.40% 1.93%
NAV per share at 6/30/96 $9.81 $9.82
$10,000 INVESTED IN THE PREMIER short-intermediate government FUND (10/2/95 -
6/30/96)** 25 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 June 30, 1996. **Hypothetical illustration of $10,000
invested at inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through June 30, 1996.
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. 25
26 Transamerica Premier Short-Intermediate Government Fund Schedule
of Investments - June 30, 1996 (Unaudited)
Interest Maturity Principal
Rate Date Amount Value
U.S. GOVERNMENT SECURITIES 96.0%
United States Treasury Bond Strips Principal 0.000% 05/15/2017 $250,000 $56,885
United States Treasury Notes 6.375% 07/15/1999 1,400,000 1,402,408
United States Treasury Notes 5.125% 06/30/1998 515,000 505,426
United States Treasury Notes 6.875% 03/31/2000 436,000 442,335
United States Treasury Notes 6.500% 08/15/2005 300,000 295,686
United States Treasury Notes 6.250% 08/31/2000 500,000 496,485
United States Treasury Notes 5.625% 11/30/2000 175,000 169,503
TOTAL INVESTMENTS 96.0%
(Cost $3,464,925*) 3,368,728
OTHER ASSETS LESS LIABILITIES 4.0% 141,076
NET ASSETS 100.0% $3,509,804
*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 $1,016 and $97,213, respectively.
Net unrealized depreciation for tax purposes is $96,197.
See notes to financial statements.
Transamerica Premier Cash Reserve Fund
Portfolio Manager, Kevin J. Hickam
FUND PERFORMANCE
1996 Fund performance has been excellent. The Transamerica Premier Cash Reserve
Fund ranked number five for yield among 291 no-load money market funds for the
month of June, and number five among 290 funds for the year-to-date yield, as
tracked by Lipper Analytical Services, Inc. The seven-day yield (annualized as
of June 30, 1996) was 5.17% and the effective yield was 5.30%* for the Investor
Class.
Portfolio Manager comments
"Our goal is to maximize current income while preserving principal for
investors. We invest in high-quality, short-term securities with minimal credit
risk, thus providing investors with high yields and the convenience of a
checking account. It offers the potential for higher yields than bank saving
accounts without a significant increase in risk. Of course, shares in the Fund
are not insured against loss by the federal government.
Because safety of principal is our first priority, we thoroughly
research the issuer of every security before we purchase it to ensure that our
stringent quality standards are met."
Portfolio asset mix
As of June 30, 1996, the Fund consisted of:
Commercial Paper (Domestic) 82.5%
Commercial Paper (Foreign) 8.6%
Short-term Corporate Notes 8.3%
Cash or Cash Equivalents 0.6%
Going Forward
For the balance of 1996, the average securities' maturity should run between
45-65 days. This will position the Fund to continue earning high yields as well
as take advantage of market oppotunities. We expect interest rates to be
unchanged to lower over the course of the year.
We remain positive that the Transamerica Premier Cash Reserve Fund will
continue to provide high yield and liquidity for investors. In addition, the
Fund's convenience, flexibility, and stability can provide a solid base for a
diversified portfolio, no matter what your investment objectives may be.
Thank you for your continued investment in the Transamerica
Premier Cash Reserve Fund.
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.
*The Investment Adviser agreed to waive their Adviser Fee and the Administrator
agreed to assume any other operating expenses for the Fund. Otherwise, the
current and effective yields would have been 2.55% and 2.68%, respectively.
27 Transamerica Premier Cash Reserve Fund
Performance Highlights (10/2/95 -- 6/30/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 4.05% 3.84%
NAV per share at 6/30/96 $1.00 $1.00
$10,000 INVESTED IN THE PREMIER cash reserve FUND (10/2/95 - 6/30/96)** 28
The IBC's Money Fund ReportTM --All Taxable, First Tier is a composite of
taxable money market funds that meet the SEC's definition of first tier
securities contained in Rule 2a-7 under the Investment Company Act of 1940. The
IBC's Money Fund ReportTM --All 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 June 30, 1996. **Hypothetical illustration of $10,000 invested at
inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through June 30, 1996.
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. 29
Transamerica Premier Cash Reserve Fund Schedule of Investments - June 30,
1996 (Unaudited) 29
Interest Maturity Principal
Rate Date Amount Value
COMMERCIAL PAPER -- DOMESTIC -- 82.5%
Consumer Financial Services -- 19.2%
Ford Motor Credit Company 5.250% 09/17/1996 $1,400,000 $ 1,384,075
Toyota Motor Credit Company 5.300% 07/02/1996 1,400,000 1,399,794
Unilever Capital Corporation 5.280% 07/08/1996 1,400,000 1,398,563
USAA Capital Corporation 5.290% 07/01/1996 600,000 600,000
USAA Capital Corporation 5.280% 07/09/1996 800,000 799,061
5,581,493
Commercial Financial Services -- 15.5%
Assets Securitization Cooperative 5.280% 07/19/1996 500,000 498,680
Assets Securitization Cooperative 5.400% 09/25/1996 850,000 839,035
Associates Corporation North American 5.250% 07/22/1996 1,300,000 1,296,019
General Electric Capital Corporation 5.300% 09/09/1996 1,400,000 1,385,572
Pitney Bowes Credit Corporation 5.330% 08/15/1996 500,000 496,669
4,515,975
Insurance -- 9.6%
General Re Corporation 5.350% 07/22/1996 1,400,000 1,395,631
Prudential Funding Corporation 5.260% 09/18/1996 1,400,000 1,383,840
2,779,471
Telecommunications -- 8.9%
American Telephone & Telegraph Company 5.190% 08/08/1996 1,400,000 1,392,330
Bellsouth Telecomm Incorporated 5.370% 07/23/1996 1,201,000 1,197,059
2,589,389
Banking -- 7.9%
Morgan (J P) & Company Incorporated 5.350% 09/12/1996 1,000,000 989,151
Old Kent Bank & Trust Company 7.860% 12/16/1996 1,300,000 1,316,315
2,305,466
Household Products -- 5.0%
Procter & Gamble Company 5.340% 08/12/1996 1,450,000 1,440,967
Food Processing -- 5.0%
Cargill Incorporated 5.340% 08/23/1996 1,450,000 1,438,601
Brokerage -- 4.9%
Merrill Lynch & Company Incorporated 5.250% 07/30/1996 435,000 433,160
Merrill Lynch & Company Incorporated 5.400% 09/03/1996 1,000,000 990,400
1,423,560
Food & Beverages -- 4.8%
Coca Cola Company 5.350% 09/20/1996 1,400,000 1,383,148
Leisure Time -- 1.7%
Disney (Walt) Company 5.270% 10/15/1996 500,000 492,241
TOTAL COMMERCIAL PAPER -- DOMESTIC
(Cost $23,950,311) 23,950,311
COMMERCIAL PAPER -- FOREIGN -- 8.6%
Government -- 4.8%
Province of British Columbia 5.520% 07/03/1996 1,000,000 999,693
Province of British Columbia 5.450% 12/23/1996 400,000 389,403
1,389,096
Interest Maturity Principal
Rate Date Amount Value
Banking -- 3.8%
Canadian Imperial Holding Incorporated 5.290% 07/01/1996 $1,100,000 $1,100,000
TOTAL COMMERCIAL PAPER -- FOREIGN
(Cost $2,489,096) 2,489,096
SHORT-TERM CORPORATE NOTES -- 8.3%
Finance & Banking -- 8.3%
Deere (John) Capital Corporation 4.625% 09/02/1996 1,000,000 999,063
First Bank International Association Minneapolis 5.3875% 11/20/1996
1,400,000 1,400,000
TOTAL SHORT-TERM CORPORATE NOTES
(Cost $2,399,063) 2,399,063
REPURCHASE AGREEMENT -- 0.7%
State Street Bank and Trust Company, (collateralized by
$205,000 par value U.S. Treasury Notes, 5.875%,
due 07/31/97, with a value of $209,738) (Cost $205,000) 4.500% 07/01/1996
205,000 205,000
TOTAL INVESTMENTS -- 100.1%
(Cost $29,043,470*) 29,043,470
LIABILITIES in excess of OTHER ASSETS -- (0.1)% (25,522)
NET ASSETS -- 100.0% $29,017,948
*Aggregate cost for Federal tax purposes.
See notes to financial statements.
Transamerica Premier Cash Reserve Fund
Schedule of Investments - June 30, 1996 (Unaudited)
(Continued)
See notes to financial statements.
31
Statements of Assets and Liabilities
June 30, 1996 (Unaudited)
<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
Assets
<S> <C> <C> <C> <C> <C> <C> <C>
Investments, at value (Note 4) $23,509,563 $8,571,919 $11,686,813 $14,382,414 $3,368,728 $29,043,470
Cash 824 70,853 319 305 78,551 942
Dividends and interest receivable 12,035 13,341 177,402 84,501 80,557 21,853
Variation margin receivable 5,625
Receivable for fund shares sold 35,723 2,518 675 3,273 379 4,764
Prepaid expenses and other assets 3,653 2,806 4,982 4,845 1,459 7,404
Due from Administrator (Note 2) 3,061 42,882 3,886 67 13,742 25,261
TOTAL ASSETS 23,564,859 8,709,944 11,874,077 14,475,405 3,543,416 29,103,694
Liabilities
Payable for fund shares redeemed 5,250
Directors fees payable 2,398 1,041 1,621 1,783 476 3,857
Distribution fees payable (Note 3) 4,974 714 2,409 3,021 715 2,370
Service fees payable (Note 3) 6 3 15 36 2 8
Other accrued expenses 77,993 46,578 48,461 53,277 32,419 74,261
TOTAL LIABILITIES 85,371 48,336 52,506 58,117 33,612 85,746
TOTAL NET ASSETS $23,479,488 $8,661,608 $11,821,571 $14,417,288 $3,509,804 $29,017,948
Net Assets
Par value $ 2,163 $ 759 $ 1,228 $ 1,365 $ 358 $ 29,018
Paid in capital 21,858,304 7,770,519 12,297,592 13,810,323 3,580,808 28,988,930
Undistributed net investment
income (loss) (Note 1) (56,204) 21 (55) (5) (4)
Accumulated net realized
gain (loss) on investments
and futures transactions 73,976 441,549 (5,248) (14,757) 24,839
Net unrealized appreciation
(depreciation) of investments
and futures contracts 1,601,249 448,760 (471,946) 620,362 (96,197)
TOTAL NET ASSETS $23,479,488 $8,661,608 $11,821,571 $14,417,288 $3,509,804 $29,017,948
Investor Class
Net assets $23,144,092 $8,625,931 $11,745,467 $14,241,601 $3,502,021 $28,905,745
Shares outstanding 2,131,944 756,087 1,219,935 1,348,041 356,846 28,905,745
Net asset value and offering
and redemption price
per Investor share $10.86 $11.41 $9.63 $10.56 $9.81 $1.00
Adviser Class
Net assets $335,396 $35,677 $76,104 $175,687 $7,783 $112,203
Shares outstanding 30,969 3,129 7,900 16,617 793 112,203
Net asset value and offering
and redemption price
per Adviser share $10.83 $11.40 $9.63 $10.57 $9.82 $1.00
INVESTMENTS, AT COST $21,908,314 $8,108,234 $12,158,759 $13,762,052 $3,464,925 $29,043,470
</TABLE>
See notes to financial statements.
Statements of Operations
Six months ended June 30, 1996 (Unaudited)
32
<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
Investment Income
<S> <C> <C> <C> <C> <C>
Interest income $ 19,303 $ 44,824$ 406,398 $172,764 $104,052 $769,871
Dividend income* 68,270 68,828 20,788
TOTAL INCOME 87,573 113,652 406,398 193,552 104,052 769,871
Expenses
Investment Adviser fee (Note 2) 81,070 11,648 34,970 49,600 8,588 49,257
Custodian fees 24,152 45,535 19,570 21,859 6,560 31,255
Audit fees 6,608 2,157 2,868 3,928 826 5,184
Legal fees 4,787 1,998 3,062 3,412 1,057 7,383
Printing expenses 6,512 3,614 6,051 6,145 1,788 13,370
Directors fee and expenses (Note 2) 5,534 2,119 3,089 3,772 891 7,021
Transfer agent fees 56,988 29,675 27,347 33,628 26,178 33,508
Service fees (Note 3) 221 6 71 158 5 31
Distribution fees (Note 3):
Investor shares 23,624 3,883 14,500 16,375 4,289 14,023
Adviser shares 661 19 215 476 14 92
Registration fees 13,586 12,777 13,096 13,239 12,532 14,132
Insurance expense 1,898 805 1,243 1,378 365 2,969
Other 3,678 395 318 659 84 345
Total operating expenses
before waiver and reimbursement 229,319 114,631 126,400 154,629 63,177 178,570
Fees waived by Investment
Adviser (Note 2) (81,070) (11,648)(34,970) (49,600) (8,588) (49,257)
Expenses reimbursed by
Administrator (Note 2) (4,521) (85,012) (15,444) (8,666) (39,975) (94,059)
TOTAL EXPENSES 143,728 17,971 75,986 96,363 14,614 35,254
NET INVESTMENT INCOME (LOSS) (56,155)95,681 330,412 97,189 89,438 734,617
Net Realized and Unrealized
Gain (Loss) on Investments
Net realized gain on
investments and futures
transactions 75,240 445,777 29,593 11,789 24,851
Net change in unrealized appreciation
(depreciation) of investments
and futures contracts
during the period 1,838,311 171,896 (838,078) 484,080 (148,949)
Net Realized and Unrealized
Gain (Loss) on Investments 1,913,551 617,673 (808,485) 495,869 (124,098)
Net Increase (Decrease)
in Net Assets Resulting
from Operations $1,857,396 $713,354 $(478,073) $593,058 $(34,660) $734,617
*Net of foreign withholding
taxes of: $ 1,070 $ 541
</TABLE>
See notes to financial statements.
Statements of changes in net assets
33
<TABLE>
<CAPTION>
Transamerica Transamerica Transamerica
Premier Premier Premier
Equity Fund Index Fund Bond Fund
Six Months Ended Period Six Months Ended Period Six Months Ended Period
June 30, 1996 Ended June 30, 1996 Ended June 30, 1996 Ended
(Unaudited) December 31, 1995* (Unaudited) December 31, 1995* (Unaudited) December 31, 1995*
Increase (Decrease)
in Net Assets
From operations:
<S> <C> <C> <C> <C> <C>
Net investment income (loss) $ (56,155) $ 21,826 $ 95,681 $ 37,969 $ 330,412
$ 173,137
Net realized gain (loss)
on investments and futures
transactions 75,240 (1,264) 445,777 125 29,593 (34,841)
Net change in unrealized appreciation
(depreciation) of investments
and futures contracts
during the period 1,838,311 (237,062) 171,896 276,864 (838,078) 366,132
Net increase (decrease)
in net assets resulting
from operations 1,857,396 (216,500) 713,354 314,958 (478,073) 504,428
Dividends to shareholders from net investment income:
Investor shares (21,869) (133,506) (392,222) (109,662)
Adviser shares (6) (123) (1,673) (47)
Distributions to shareholders from net realized gains:
Investor shares (4,353)
Adviser shares
Fund share transactions (Note 5) 10,516,591 11,327,206 1,152,053 6,602,555 857,429 11,424,721
Increase (decrease) in net assets 12,352,112 11,110,706 1,727,425 6,917,513 (14,539) 11,819,440
Net Assets
Beginning of period 11,127,376 16,670 6,934,183 16,670 11,836,110 16,670
End of period (1) $23,479,488 $11,127,376 $8,661,608 $6,934,183 $11,821,571 $11,836,110
(1) Includes undistributed net
investment income (loss) of: $ (56,204) $ 21,826 $ 21 $ 37,969 $ (55)
$ 63,428
</TABLE>
*Each Fund commenced operations on October 2, 1995.
33
See notes to financial statements.
Statements of Changes in Net Assets
34
<TABLE>
<CAPTION>
Transamerica Transamerica Premier Short- Transamerica
Premier Balanced Fund Intermediate Government Fund Premier Cash Reserve Fund
Six Months Ended Period Six Months Ended Period Six Months Ended Period
June 30, 1996 Ended June 30, 1996 Ended June 30, 1996 Ended
(Unaudited) December 31, 1995* (Unaudited) December 31, 1995* (Unaudited) December 31, 1995*
Increase in Net Assets
From operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income $ 97,189 $ 72,055 $ 89,438 $ 46,374 $ 734,617 $334,544
Net realized gain (loss)
on investments and futures
transactions 11,789 (26,546)24,851 8,471
Net change in unrealized appreciation
(depreciation) of investments
and futures contracts
during the period 484,080 136,282 (148,949) 52,752
Net increase (decrease)
in net assets resulting
from operations 593,058 181,791 (34,660) 107,597 734,617 334,544
Dividends to shareholders from net investment income:
Investor shares (168,588) (106,090) (29,622)(732,143) (334,364)
Adviser shares (661) (102) (2) (2,474) (180)
Distributions to shareholders from net realized gains:
Investor shares (8,483)
Adviser shares
Fund share transactions (Note 5) 1,891,343 11,903,675 222,873 3,341,623 1,000,196 28,001,102
Increase in net assets 2,315,152 12,085,466 73,538 3,419,596 1,000,196 28,001,102
Net Assets
Beginning of period 12,102,136 16,670 3,436,266 16,670 28,017,752 16,650
End of period (1) $14,417,288 $12,102,136 $3,509,804 $3,436,266 $29,017,948 $28,017,752
(1) Includes undistributed net
investment income (loss) of: $ (5) $ 72,055 $ (4) $ 16,750
</TABLE>
*Each Fund commenced operations on October 2, 1995.
34
See notes to financial statements.
35
Financial Highlights Investor Class
35
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Transamerica Transamerica Transamerica
Premier Equity Fund Premier Index Fund Premier Bond Fund
Six Months Period Six Months Period Six Months Period
Ended Ended Ended Ended Ended Ended
June 30, 1996 December 31, June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995* (Unaudited) 1995* (Unaudited) 1995*
NET ASSET VALUE
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $ 9.82 $10.00 $10.59 $10.00 $10.37 $10.00
INVESTMENT OPERATIONS
Net investment income (loss) (1) (0.03) 0.02 0.13 0.06 0.28 0.16
Net realized and
unrealized gain (loss) 1.09 (0.20) 0.89 0.53 (0.69) 0.32
Total from investment operations 1.06 (0.18) 1.02 0.59 (0.41) 0.48
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (0.02) (0.19) (0.33) (0.11)
Net realized gains (0.01)
Total distributions
to shareholders (0.02) (0.20) (0.33) (0.11)
Net asset value
End of period $10.86 $ 9.82 $11.41 $10.59 $ 9.63 $10.37
TOTAL RETURN (2) 10.81% (1.80)% 9.67% 5.90% (3.97)% 4.82%
RATIOS And
SUPPLEMENTAL DATA
Expenses to average net assets (3) (4) 1.50% 0.25% 0.46% 0.25% 1.30% 0.25%
Net investment income (loss)
to average net assets (4) (0.58)% 1.51% 2.46% 2.70% 5.67% 6.55%
Portfolio turnover rate 8% 0% 94% 4% 6% 19%
Average commission rate (5) $0.0656 $0.0678 $0.0322 $0.0418
Net assets end of period $23,144,092 $11,070,182 $8,625,931 $6,933,960 $11,745,467 $11,826,508
</TABLE>
*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of 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 for the periods ended June 30, 1996
and December 31, 1995, respectively, net investment income (loss) per share
would have been $(0.06) and $(0.01) for the Equity Fund, $0.02 and$(0.03) for
the Index Fund, and $0.25 and $0.12 for the Bond 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 for the periods ended June 30, 1996
and December 31, 1995, respectively, the ratios of operating expenses to average
net assets would have been 2.21% and 2.39% for the Equity Fund, 2.52% and 4.12%
for the Index Fund, and 1.91% and 1.93% for the Bond Fund (4) Annualized. (5)
Represents the average commission rate paid on equity security transactions on
which commissions are charged. See notes to financial
statements. Financial Highlights Investor Class The
following table includes selected data for a share outstanding throughout each
period and other performance information derived from the financial statements.
<TABLE>
<CAPTION>
Transamerica Transamerica Premier Short- Transamerica
Premier Balanced Fund Intermediate Government Fund Premier Cash Reserve Fund
Six Months Period Six Months Period Six Months Period
Ended Ended Ended Ended Ended Ended
June 30, 1996 December 31, June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995* (Unaudited) 1995* (Unaudited) 1995*
NET ASSET VALUE
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning of period $10.23 $10.00 $10.25 $10.00 $1.00 $1.00
INVESTMENT OPERATIONS
Net investment income (1) 0.07 0.06 0.26 0.15 0.03 0.01
Net realized and
unrealized gain (loss) 0.40 0.17 (0.36) 0.20
Total from investment operations 0.47 0.23 (0.10) 0.35 0.03 0.01
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (0.14) (0.31) (0.10) (0.03) (0.01)
Net realized gains (0.03)
Total distributions
to shareholders (0.14) (0.34) (0.10) (0.03) (0.01)
Net asset value
End of period $10.56 $10.23 $ 9.81 $10.25 $1.00 $1.00
TOTAL RETURN (2) 4.58% 2.30% (1.06)% 3.49% 2.63% 1.39%
RATIOS And
SUPPLEMENTAL DATA
Expenses to average net assets (3) (4) 1.45% 0.25% 0.85% 0.25% 0.25% 0.25%
Net investment income (loss)
to average net assets (4) 1.48% 3.12% 5.21% 5.88% 5.22% 5.55%
Portfolio turnover rate 15% 16% 49% 260% N/A N/A
Average commission rate (5) $0.0649 $0.0662
Net assets end of period $14,241,601 $12,083,554 $3,502,021 $3,436,050
$28,905,745 $27,996,475
</TABLE>
*Each Fund commenced operations on October 2, 1995. (1)
Net investment income is after waiver of 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 for the periods ended June 30, 1996
and December 31, 1995, respectively, net investment income (loss) per share
would have been $0.04 and $0.02 for the Balanced Fund, $0.17 and $0.09 for the
Short--Intermediate Government Fund, and $0.02 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 for the periods ended
June 30, 1996 and December 31, 1995, respectively, the ratios of operating
expenses to average net assets would have been 2.08% and 2.12% for the Balanced
Fund, 2.70% and 2.51% for the Short--Intermediate Government Fund, and 1.14% and
1.37% for the Cash Reserve Fund. (4) Annualized. (5) Represents the average
commission rate paid on equity security transactions on which commissions are
charged. See notes to financial statements. Financial
Highlights Adviser class The following table includes selected data
for a share outstanding throughout each period and other performance information
derived from the financial statements.
<TABLE>
<CAPTION>
Transamerica Transamerica Transamerica
Premier Equity Fund Premier Index Fund Premier Bond Fund
Six Months Period Six Months Period Six Months Period
Ended Ended Ended Ended Ended Ended
June 30, 1996 December 31, June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995* (Unaudited) 1995* (Unaudited) 1995*
NET ASSET VALUE
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $ 9.81 $10.00 $10.58 $10.00 $10.37 $10.00
INVESTMENT OPERATIONS
Net investment income (loss) (1) (0.04) 0.01 0.05 0.04 0.24 0.12
Net realized and
unrealized gain (loss) 1.06 (0.20) 0.90 0.54 (0.69) 0.35
Total from investment operations 1.02 (0.19) 0.95 0.58 (0.45) 0.47
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (0.12) (0.29) (0.10)
Net realized gains (0.01)
Total distributions
to shareholders (0.13) (0.29) (0.10)
Net asset value
End of period $10.83 $ 9.81 $11.40 $10.58 $ 9.63 $10.37
TOTAL RETURN (2) 10.41% (1.90)% 8.94% 5.80% (4.39)% 4.69%
RATIOS And
SUPPLEMENTAL DATA
Expenses to average net assets (3) (4) 2.25% 0.94% 1.16% 1.12% 2.05% 0.98%
Net investment income (loss)
to average net assets (4) (1.32)% 0.63% 1.63% 1.49% 5.04% 5.72%
Portfolio turnover rate 8% 0% 94% 4% 6% 19%
Average commission rate (5) $0.0656 $0.0678 $0.0322 $0.0418
Net assets end of period $335,396 $57,194 $35,677 $223 $76,104 $9,602
</TABLE>
*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of 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 for the periods ended June 30, 1996
and December 31, 1995, respectively, net investment income (loss) per share
would have been $(0.69) and $(0.62) for the Equity Fund, $(21.37) and$(0.05) for
the Index Fund, and $(2.28) and $(3.01) for the Bond 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 for the periods ended June 30, 1996
and December 31, 1995, respectively, the ratios of operating expenses to average
net assets would have been 23.68% and 92.04% for the Equity Fund, 660.83% and
4.52% for the Index Fund, and 55.41% and 147.96% for the Bond Fund (4)
Annualized. (5) Represents the average commission rate paid on equity security
transactions on which commissions are charged. See notes
to financial statements. Financial Highlights adviser Class
The following table includes selected data for a share outstanding
throughout each period and other performance information derived from the
financial statements.
<TABLE>
<CAPTION>
Transamerica Transamerica Premier Short- Transamerica
Premier Balanced Fund Intermediate Government Fund Premier Cash Reserve Fund
Six Months Period Six Months Period Six Months Period
Ended Ended Ended Ended Ended Ended
June 30, 1996 December 31, June 30, 1996 December 31, June 30, 1996 December 31,
(Unaudited) 1995* (Unaudited) 1995* (Unaudited) 1995*
NET asset value
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $10.22 $10.00 $10.25 $10.00 $1.00 $1.00
INVESTMENT OPERATIONS
Net investment income (1) 0.04 0.03 0.21 0.12 0.03 0.01
Net realized and
unrealized gain (loss) 0.39 0.19 (0.35) 0.22 0.00 0.00
Total from investment operations 0.43 0.22 (0.14) 0.34 0.03 0.01
DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income (0.08) (0.26) (0.09) (0.03) (0.01)
Net realized gains (0.03)
Total distributions
to shareholders (0.08) (0.29) (0.09) (0.03) (0.01)
Net asset value
End of period $10.57 $10.22 $ 9.82 $10.25 $1.00 $1.00
TOTAL RETURN (2) 4.20% 2.20% (1.39)% 3.37% 2.55% 1.26%
RATIOS And
SUPPLEMENTAL DATA
Expenses to average net assets (3) (4) 2.20% 0.98% 1.60% 0.99% 0.40% 0.38%
Net investment income
to average net assets(4) 0.79% 2.36% 4.50% 4.84% 5.02% 5.43%
Portfolio turnover rate 15% 16% 49% 260% N/A N/A
Average commission rate (5) $0.0649 $0.0662
Net assets end of period $175,687 $18,582 $7,783 $216 $112,203 $21,277
</TABLE>
*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of 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 for the periods ended June 30, 1996
and December 31, 1995, respectively, net investment income (loss) per share
would have been $(1.33) and $(1.95) for the Balanced Fund, $(41.55) and $0.08
for the Short-Intermediate Government Fund, and $(0.16) 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 for the periods ended
June 30, 1996 and December 31, 1995, respectively, the ratios of operating
expenses to average net assets would have been 29.42% and 150.92% for the
Balanced Fund, 888.14% and 2.55% for the Short-Intermediate Government Fund, and
36.49% and 109.23% for the Cash Reserve Fund. (4) Annualized. (5) Represents the
average commission rate paid on equity security transactions on which
commissions are charged. 38 See notes to financial statements. 39
notes to financial sTatementS (unaudited) June 30, 1996 39 1.
Significant Accounting Policies Transamerica Investors, Inc. (the "Company") was
organized as a Maryland corporation on February 22, 1995. The Company is
registered with the Securities and Exchange Commission (the "SEC") under the
Investment Company Act of 1940 (the "1940 Act") as an open-end, diversified
management investment company. The Company is composed of six series
(collectively referred to as the "Funds"): Transamerica Premier Equity Fund (the
"Equity Fund"), Transamerica Premier Index Fund (the "Index Fund"), Transamerica
Premier Bond Fund (the "Bond Fund"), Transamerica Premier Balanced Fund (the
"Balanced Fund"), Transamerica Premier Short-Intermediate Government Fund (the
"Short-Intermediate Government Fund"), and Transamerica Premier Cash Reserve
Fund (the "Cash Reserve Fund"). 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 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
("NASDAQ") 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 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 Fund's 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 Fund's
expected proceeds could be delayed, or the Fund could suffer a loss in principal
or current interest, or incur costs in liquidating the collateral.
(C) FUTURES CONTRACTS The Index Fund uses S&P 500 Index futures as part of its
strategy to track 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 ("variation margin") 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 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 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
gain 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 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
carryforwards (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 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 "Agreement") with Transamerica Investment Services, Inc. (the
"Investment Adviser"), 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-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 Company's Administrator is Transamerica Occidental Life Insurance
Company (the "Administrator"), a wholly owned subsidiary of Transamerica
Insurance Corporation of California, which in turn is a wholly ownzed subsidiary
of Transamerica Corporation. The Administrator provides the Funds with
administrative and clerical services, including the maintenance of the Funds'
books and records; registers the Funds' shares with the SEC and with those
states and other jurisdictions where the shares are offered or sold and arranges
periodic updating of the Funds' prospectuses; provides proxy materials and
reports to the Funds' 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 has agreed to waive its fee, and the
Administrator has agreed to assume any other operating expenses (other than
certain extraordinary or non-recurring expenses) for each Fund which together
exceed a specified percentage of the average daily net assets of that Fund until
the earlier of October 1, 1996 or such time as the Fund's assets exceed $50
million. The specified percentages are as follows:
Investor Adviser
Fund Shares Shares
Equity Fund 1.50% 2.25%
Index Fund 0.25% 1.15%
Bond Fund 1.30% 2.05%
Balanced Fund 1.45% 2.20%
Short-Intermediate
Government Fund 0.85% 1.60%
Cash Reserve Fund 0.25% 0.40%
Transamerica Securities Sales Corporation ("TSSC") 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. ("TFR") 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,
which in turn is a wholly-owned subsidiary of Transamerica Corporation.
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 "interested person" (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 Company's Board attended, $500 for each Board committee meeting attended,
and is reimbursed for expenses incurred in connection with such attendance. For
the period ended June 30, 1996, the Funds accrued aggregate fees of $22,426 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 the
Funds 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.
4. Security Transactions
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the period six months ended
June 30, 1996 were as follows:
notes to financial sTatements (unaudited)
June 30, 1996 (Continued)
41
U.S. Proceeds U.S.
Government from Government
Purchases Purchases Sales Sales
Equity Fund $11,333,173 $1,424,033
Index Fund 7,629,112 $ 72,347 5,867,064 $ 46,988
Bond Fund 927,840 538,164 700,878
Balanced Fund 3,165,136 1,821,859
Short-Intermediate Government Fund 1,893,805 1,626,504
41
notes to financial sTatements (unaudited)
June 30, 1996 (Continued
42
5. Capital Stock Transactions
At June 30, 1996, there were two billion shares of $0.001 par value stock
authorized, consisting of one billion Investor Shares and one billion Adviser
Shares.The tables below summarize the transactions in Fund shares for the
periods indicated. 42 Transamerica Premier Equity Fund
<TABLE>
<CAPTION>
Six-Months Ended June 30, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Capital stock sold 1,050,430 $10,734,260 1,125,709 $11,269,950
Capital stock issued upon reinvestment
of dividends and distributions 2,200 21,734
Capital stock redeemed (48,052) (500,300) (9) (86)
Net increase 1,004,578 $10,255,694 1,125,700 $11,269,864
Adviser Shares
Capital stock sold 27,562 $286,0505,827 $57,342
Capital stock issued upon reinvestment
of dividends and distributions 1 6
Capital stock redeemed (2,422) (25,159)
Net increase 25,141 $260,897 5,827 $57,342
Transamerica Premier Index Fund
Six-Months Ended June 30, 1996 Period Ended December 31, 1995
investor Shares Shares Amount Shares Amount
Capital stock sold 90,585 $1,000,147 653,176 $6,602,355
Capital stock issued upon reinvestment
of dividends and distributions 12,455 137,394
Capital stock redeemed (1,795) (20,407)
Net increase 101,245 $1,117,134 653,176 $6,602,355
Adviser Shares
Capital stock sold 3,097 $34,796 20 200
Capital stock issued upon reinvestment
of dividends and distributions 11 123
Capital stock redeemed
Net increase 3,108 $34,919 20 200
Transamerica Premier Bond Fund
Six-Months Ended June 30, 1996 Period Ended December 31, 1995 investor
Shares Shares Amount Shares Amount Capital stock sold 47,433 $470,1451,127,986
$11,305,873 Capital stock issued upon reinvestment
of dividends and distributions 39,586 391,180 10,828 109,606
Capital stock redeemed (7,557) (74,205)(7) (75)
Net increase 79,462 $787,120 1,138,807 $11,415,404
Adviser Shares
Capital stock sold 7,784 $78,180 921 $9,270
Capital stock issued upon reinvestment
of dividends and distributions 171 1,672 4 47
Capital stock redeemed (981) (9,543)
Net increase 6,974 $70,309 925 $9,317
43
Transamerica Premier Balanced Fund
Six-Months Ended June 30, 1996 Period Ended December 31, 1995
investor Shares Shares Amount Shares Amount
Capital stock sold 160,303 $1,664,648 1,179,124 $11,885,383
Capital stock issued upon reinvestment
of dividends and distributions 16,330 168,397
Capital stock redeemed (9,377) (96,402)(5) (49)
Net increase 167,256 $1,736,643 1,179,119 $11,885,334
Adviser Shares
Capital stock sold 17,071 $178,1901,816 $18,341
Capital stock issued upon reinvestment
of dividends and distributions 64 660
Capital stock redeemed (2,335) (24,150)
Net increase 14,800 $154,700 1,816 $18,341
Transamerica Premier Short-Intermediate Government Fund
Six-Months Ended June 30, 1996 Period Ended December 31, 1995
investor Shares Shares Amount Shares Amount
Capital stock sold 12,578 $125,409330,690 $3,311,850
Capital stock issued upon reinvestment
of dividends and distributions 11,478 114,571 2,927 29,621
Capital stock redeemed (2,489) (24,758)(4) (49)
Net increase 21,567 $215,222 333,613 $3,341,422
Adviser Shares
Capital stock sold 762 $7,550 20 $200
Capital stock issued upon reinvestment
of dividends and distributions 10 101 1
Capital stock redeemed
Net increase 772 $7,651 20 $201
Transamerica Premier Cash Reserve Fund
Six-Months Ended June 30, 1996 Period Ended December 31, 1995
investor Shares Shares Amount Shares Amount
Capital stock sold 2,892,663 $2,892,663 27,792,888 $27,792,888
Capital stock issued upon reinvestment
of dividends and distributions 861,903 861,903 204,021 204,021
Capital stock redeemed (2,845,296) (2,845,296) (17,083) (17,083)
Net increase 909,270 $ 909,270 27,979,826 $27,979,826
Adviser Shares
Capital stock sold 141,046 $141,04625,200 $25,200
Capital stock issued upon reinvestment
of dividends and distributions 2,568 2,568 76 76
Capital stock redeemed (52,688) (52,688)(4,000) (4,000)
Net increase 90,926 90,926 21,276 $21,276
</TABLE>
Transamerica
Premier Funds
Investment Objectives
44
Transamerica Premier
Funds Directors
Nooruddin S. Veerjee
Chairman of the Board
Sidney E. Harris
Charles C. Reed
Gary U. Roll
Carl R. Terzian
Transamerica Premier
Funds Officers
Nooruddin S. Veerjee
Chief Executive Officer
Nicki A. Bair
President
E. Joy Heckendorf
Senior Vice President
J. Richard Atwood
Treasurer
Reid A. Evers
Secretary
Donald P. Radisich
Vice President
Howell Margolit
Assistant Vice President
Christopher W. Shaw
Assistant Vice President
Investment Adviser
Transamerica Investment Services, Inc.
1150 South Olive
Los Angeles, CA 90015
Distributor
Transamerica Securities Sales Corporation
1150 South Olive
Los Angeles, CA 90015
Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110
Transfer Agent
State Street Bank/Boston Financial
Data Services
Two Heritage Drive
North Quincy, Massachusetts 02171
Premier Equity Fund
We seek to maximize long-term growth.
Premier Index Fund
We seek to track the performance of the Standard & Poor's 500 Composite Stock
Price Index, also known as the S&P 500 index.
Premier Bond Fund
We seek to achieve a high total return (income plus capital changes) from fixed
income securities consistent with preservation of principal. 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).
Premier Short-Intermediate Government Fund
We seek to achieve a high level of current income with the security of investing
in government securities. Premier Cash Reserve Fund We seek to maximize current
income consistent with liquidity and preservation of principal.
This report is for the information of the shareholders of Transamerica Premier
Funds. The financial information included in this report has been taken from the
records of the fund without examination by independent auditors. Its use in
connection with any offering of the Funds' 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
