TRANSAMERICA INVESTORS INC, 497, 1996-05-03

TRANSAMERICA INVESTORS INC
497, 1996-05-03

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Prospectus: April 29, 1996

Transamerica Premier Funds
Adviser Shares

Transamerica Premier Equity Fund
Transamerica Premier INdex Fund
Transamerica Premier Bond Fund
Transamerica Premier Balanced Fund
Transamerica Premier Short-Intermediate Government Fund
Transamerica Premier cash reserve Fund

Your Guide This guide (the "Prospectus") will provide you with helpful insights
and details about the Adviser Class of Shares of the Transamerica Premier Funds.
It is intended to give you what you need to know before investing. Please read
it carefully and save it for future reference. Transamerica Investors
Transamerica Investors, Inc. (also referred to as the Company or we, us, or our)
is an open-end, management investment company. We are a mutual fund company that
offers a number of portfolios, known collectively as the Transamerica Premier
Funds. Each Fund is managed separately and has its own investment objective,
strategies and policies designed to meet different goals. Each Fund and each
class of each Fund has its own levels of expenses and charges. The minimum
investment is $1,000 per Fund, or less in certain instances. See "Minimum
Investments" on page 22. For Additional Information and Assistance For
additional details about the Funds contact your broker, or write to Transamerica
Investors, P.O. Box 9232, Boston, Massachusetts 02205-9232. A free Statement of
Additional Information (the "SAI") which has been filed with the Securities and
Exchange Commission is available upon request. The SAI is a part of this
Prospectus by reference.

THESE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE UNITED STATES 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. LIKE ALL MUTUAL
FUND SHARES, THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS
THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.

Contents

The Funds at a Glance 3
Fund Expenses 5
The Management Team 6
Fund Performance 7
Financial Highlights 8
The Funds in Detail 10
Transamerica Premier Equity Fund 10
Transamerica Premier Index Fund 11
Transamerica Premier Bond Fund 12
Transamerica Premier Balanced Fund 13
Transamerica Premier Short-Intermediate Government Fund 14
Transamerica Premier Cash Reserve Fund 14
A General Discussion About Risk 15
Investment Procedures and Risk Considerations for the Funds 16
Shareholder Services 20
How to Buy Shares 21
How to Sell Shares 22
How to Exchange Shares 24
Other Investor Requirements and Services 24
Dividends and Capital Gains 25
What About Taxes? 26
Share Price 27
Investment Adviser and Administrator 28
General Information 29
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL SECURITIES
IN ANY STATE OR OTHER JURISDICTION TO ANY PERSON TO WHOM IT IS UNLAWFUL TO
MAKE SUCH AN OFFER IN SUCH STATE OR OTHER JURISDICTION.

Read this section for investment performance numbers you can use to compare with
other funds.

Your tolerance for risk is one major part of your investment decision. You
should be aware of sev-eral types of risk related to the Funds, which are
explained in this section.

One of the advantages
of investing in mutual funds is the potential to receive dividends and/or
capital gains.

The Funds at a Glance

The Funds at a Glance
The Transamerica Premier Funds consist of six diversified Funds with different
investment objectives and risk levels, which invest in a range of securities
types. There is no guarantee that these investment objectives will be met. These
short descriptions will give you a summary of each Fund. A more detailed
description for each Fund is in "The Funds in Detail" on page 10. For
information on the risks associated with investment in these Funds, see
"Investment Procedures and Risk Considerations for the Funds" on page 16.
Transamerica Premier Equity Fund
* We seek to maximize long-term growth for this Fund. * We invest primarily in
common stocks of growth companies that we consider to be premier companies
that are undervalued in the stock market. * The Fund is intended for investors
who wish to participate primarily in the common stock markets. Investors
should have the perspective, patience, and financial ability to take on
above-average stock market volatility in a focused pursuit of long-term
capital growth. * See page 10 for details.
Transamerica 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, for this Fund. * We
attempt to reproduce the overall investment characteristics of the S&P 500
Index by using a combination of management techniques. Our stock purchases
reflect the S&P 500 Index, but we make no attempt to forecast general market
movements. * The Fund is intended for investors who wish to participate in the
overall growth of the economy, as reflected by the domestic stock market.
Investors should have the perspective, patience, and financial ability to take
on average stock market volatility in pursuit of long-term capital growth.*
See page 11 for details.
Transamerica Premier Bond Fund
* We seek to achieve a high total return (income plus capital changes) from
fixed income securities consistent with preservation of principal for this
Fund. * We invest primarily in a diversified selection of investment grade
corporate and government bonds and mortgage-backed securities. * The Fund is
intended for investors who wish to invest in a diversified portfolio of bonds.
Investors should have the perspective, patience, and financial ability to take
on above-average bond price volatility in pursuit of a high total return
produced by income from longer-term securities and capital gains from
undervalued bonds. * See page 12 for details.
Transamerica Premier Balanced Fund
*We seek to achieve long-term capital growth and current income with a
secondary objective of capital preservation, by balancing investments among
stocks, bonds, and cash (or cash equivalents) for this Fund. *We invest in a
diversified selection of common stocks, bonds, and money market instruments
and other short-term debt securities. *The Fund is intended for investors who
wish to participate in both the equity and debt markets, but who wish to leave
the allocation of the balance between them to professional management.
Investors should have the perspective, patience, and financial ability to take
on average market volatility in pursuit of long-term total return that
balances capital growth and current income. * See page 13 for details.
Transamerica Premier Short-Intermediate Government Fund * We seek to achieve a
high level of current income with the security of investing in government
securities for this Fund. * We generally invest in securities issued or
guaranteed by the U.S. government, its agencies or instrumentalities, or its
political subdivisions. The Fund will have a dollar-weighted average maturity
of more than two years, but less than five years. * The Fund is intended for
investors who wish to earn higher income than is available from money market
funds. Investors should have the perspective and patience to accept the
additional price fluctuation for the advantage of earning generally higher
returns than is available from money market funds. * See page 14 for details.
Transamerica Premier Cash Reserve Fund
* We seek to maximize current income from money market securities consistent
with liquidity and preservation of principal for this Fund. * This is a money
market fund. We invest primarily in high quality U.S. dollar-denominated money
market instruments with remaining maturities of 13 months or less. * The Fund
provides a low risk, relatively low cost way to maximize current income
through high quality money market securities that offer stability of principal
and liquidity. This Fund may be a suitable investment for temporary or
defensive purposes and may also be appropriate as part of an overall long-term
investment strategy. * See page 14 for details.
SHARES OF THESE FUNDS ARE NOT DEPOSITS OR OBLIGATIONS OF ANY BANK, AND ARE
NOT INSURED BY
THE FDIC OR ANY OTHER GOVERNMENTAL AGENCY. THESE FUNDS INVOLVE INVESTMENT
RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL.

The Funds at a Glance

Fund Expenses

Fund Expenses
Each Fund bears the costs of its operations. These costs may include, but are
not limited to, fees for investment management, distribution, shareholder
services, independent directors, professional and brokerage services, security
pricing services, custody, transfer agency, recordkeeping services, pension plan
services, insurance, federal and state registration, amortized expenses, taxes,
and any extraordinary expenses.
Each Fund is available in two classes of shares: Investor Shares and
Adviser Shares. Each class of shares will be charged separately for expenses
related solely to that class. Each class of shares may have different sales
charges and other expenses, which may affect performance. Fund expenses that are
not class specific will be allocated between the classes based on the net assets
of each class. This Prospectus describes only Adviser Shares. Adviser Shares
Adviser Shares are available only for Pension and Retirement Savings Programs
and institutional investors, and only from registered representatives of
Transamerica Financial Resources, Inc. ("TFR"), or other registered
broker-dealers authorized by the Board of Directors and Transamerica Securities
Sales Corporation ("TSSC"). Individual investors can buy this class of shares
only for an Individual Retirement Account ("IRA") or through a program sponsored
by their employer, that is offered by a registered
representative (i.e., broker). For a listing of applicable Pension and
Retirement Savings Programs, see "Shareholder Services" on page 20. Investor
Shares Investor Shares are sold directly to individuals, companies, Pension and
Retirement Savings Programs, and other institutional investors from TSSC, the
Distributor. For a free prospectus about Investor Shares, call 1-800-89-ASK-US.
<TABLE>
<CAPTION>

Shareholder Transaction Expenses
Shareholder transaction expenses are charges you pay at the time you buy or sell
shares in a Fund.
Short-Interm. Cash
Transaction Expenses Equity Index Bond Balanced Government Reserve
<S> <C> <C> <C> <C> <C> <C>
Sales Charge on Purchases1 None None None None None None
Redemption Fee None None None None None None
Sales Charge on Reinvested Dividends None None None None None None
Exchange Fee None None None None None None
Contingent Deferred Sales Charge None None None None None None
</TABLE>

Estimated Annual Fund Operating Expenses
(as a percent of average net assets)
Annual Fund Operating Expenses are paid at a daily rate out of the Fund's
assets. We calculate the share price and any dividends after these expenses are
recorded.
<TABLE>
<CAPTION>
Other Expenses Total Operating
Transamerica Adviser Fee After Reim- Expenses After Waiver
Premier Fund After Waiver2 12b-1 Fee3 bursement4 and Reimbursement5

<S> <C> <C> <C> <C>
Equity 0.85% 1.00% 0.40% 2.25%
Index 0.30% 1.00% 0.30% 1.60%
Bond 0.60% 1.00% 0.45% 2.05%
Balanced 0.75% 1.00% 0.45% 2.20%
Short-Intermediate Government 0.50% 1.00% 0.10% 1.60%
Cash Reserve 0.35% 0.25% 0.25% 0.85%
</TABLE>

The preceding tables summarize actual transaction expenses and anticipated
operating expenses. The purpose of the tables is to assist you in understanding
the varying costs and expenses you will bear directly or indirectly. Without any
fee waiver by the Investment Adviser or expense reimbursement by the
Administrator, the estimated total operating expenses for the first year of the
Funds' operation, based on $50 million of assets in each Fund, are 4.01%, 3.67%,
3.85%, 3.91%, 3.65% and 2.77%, respectively. Example Using the previous tables
of transaction expenses and operating expenses6, you would pay the following
expenses based on a $1,000 investment. The expenses shown assume a 5% annual
return. The expenses are the same whether or not you redeem your shares at the
end of each time period. We may assess an annual fee against accounts used as
IRA's or SEP's. For more information on this fee, see "IRA Accounts" on page 20.
Transamerica Premier Fund 1 Year 3 Years Equity $23 $70 Index $16 $50 Bond $21
$64 Balanced $22 $69 Short-Intermediate Government $16 $50 Cash Reserve $ 9 $27
THE INFORMATION CONTAINED IN THE ABOVE EXAMPLES SHOULD NOT BE CONSIDERED A
REPRESENTATION OF FUTURE EXPENSES. THE ACTUAL EXPENSES MAY BE MORE OR LESS THAN
THOSE SHOWN.
1. Although there is no sales charge, there is a 12b-1 fee. Over a long period
of time, the total amount of 12b-1 fees paid may exceed the amount of another
fund's sales charges.
2. See "Adviser Fee" on page 28.
3. 12b-1 fees are asset-based charges to compensate brokers and other sales
people. They also cover costs of advertising and marketing the Funds. The
12b-1 fee includes a service fee to compensate sales people for expenses in
providing ongoing shareholder information and advice and related expenses.
For more information on 12b-1 fees, see "Distribution Plan" on page 29.
4. "Other Expenses" are those incurred after any reimbursements to the Fund by
the Administrator. See "The Management Team" below. Other expenses include
expenses not covered by the adviser fee or the 12b-1 fee. See "Distribution
Plan" on page 29. This can include fees and expenses attributable solely to a
particular class of shares, such as those for transfer agent, administrative
personnel, and pension plan services, preparing, printing, mailing and
distributing materials to shareholders of a particular class; state and
federal registration fees; legal and accounting fees; directors' fees and
expenses incurred as a result of issues relating solely to a class; and fees
and payments for specific class services including account maintenance,
dividend disbursing or subaccounting services; or administration of a
dividend reinvestment, systematic investment or withdrawal plan.
5. "Total Operating Expenses" include adviser fees, 12b-1 fees, and other
expenses that a Fund incurs. The Investment Adviser has agreed to waive their
Adviser Fee and the Administrator has agreed to assume any other operating
expenses for each Fund, other than certain extraordinary or non-recurring
expenses, 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 2.25% for
the Premier Equity Fund, 1.60% for the Premier Index Fund, 2.05% for the
Premier Bond Fund, 2.20% for the Premier Balanced Fund, 1.60% for the Premier
Short-Intermediate Government Fund, and 0.85% for the Premier Cash Reserve
Fund. The Administrator may, from time to time, assume additional expenses.
Fee waivers and expense assumption arrangements, which may be terminated at
any time without notice, will increase a Fund's yield.
6. The expenses in the example assume no fees for IRA or SEP
accounts.
The Management Team
Responsibility for the management and supervision of the Company and its Funds
rests with the Board of Directors of Transamerica Investors, Inc. (the "Board").
The Investment Adviser and the Administrator are subject to the direction of the
Board.
The Funds' Investment Adviser is Transamerica Investment Services, Inc. (the
"Investment Adviser"), 1150 South Olive Street, Los Angeles, California 90015.
The Investment Adviser's duties include, but are not limited to: (1) supervising
and managing the investments of each Fund and directing the purchase and sale of
its investments; and (2) ensuring that investments follow the investment
objective, strategies, and policies and comply with government regulations.
The Funds' Administrator is Transamerica Occidental Life Insurance Company
(the "Administrator"), 1150 South Olive Street, Los Angeles, California 90015.
The Administrator's duties include, but are not limited to: (1) providing the
Funds with administrative and clerical services, including the maintenance of
the Funds' books and records; (2) registering the Fund shares with the
Securities and Exchange Commission (the "SEC") and with those states and other
jurisdictions where its shares are offered or sold and arranging periodic
updating of the Funds' prospectus; (3) providing proxy materials and reports to
Fund shareholders and the SEC; and (4) providing the Funds with adequate office
space and all necessary office equipment and services.
Transamerica Occidental Life Insurance Company is a wholly-owned subsidiary
of Transamerica Insurance Corporation of California. Both Transamerica Insurance
Corporation of California and Transamerica Investment Services, Inc. are
wholly-owned subsidiaries of Transamerica Corporation, 600 Montgomery Street,
San Francisco, California 94111, one of the nation's largest financial services
companies. For more information on Fund management, see "Investment Adviser and
Administrator" on page 28.

The Management Team

Fund Performance

Fund Performance
The following table shows how the Funds' (Adviser Class) performance compares to
recognized industry indexes, since the Funds' inception on October 2, 1995.
Rates of return shown are calculated using time-weighted total rate of
return. Total return figures to December 31, 1995 are audited. Unaudited total
returns to February 29, 1996 are provided to give you more recent performance
information.
<TABLE>
<CAPTION>
February 29, 1996 December 31, 1995
Transamerica Premier Funds NAV 1Total Return 2 NAV 1 Total Return 2
<S> <C> <C> <C> <C>
Premier Equity Fund $10.27 4.70% $9.81 (1.90)%
S&P 500 4.36% 6.02%
Premier Index Fund $10.95 3.83% $10.58 5.80%
S&P 500 4.36% 6.02%
Premier Bond Fund $9.98 (2.93)% $10.37 4.69%
Lehman Brothers Government/Corporate Bond Index (4.45)% 4.66%
Premier Balanced Fund $10.41 2.28% $10.22 2.20%
50% Lehman Brothers Government/Corporate Bond Index
50% S&P 500 (0.05)% 5.34%
Premier Short-Intermediate Government Fund $10.08 (0.62)% $10.25 3.37%
Lehman Brothers Intermediate-Term Government Bond Index (0.22)% 3.34%
Premier Cash Reserve Fund $1.00 5.02%* $1.00 5.53%*
IBC/Donoghue First Tier Index 3 4.74%* 5.12%*
</TABLE>

*Seven-day annualized current yield as of December 31, 1995 and February 29,
1996.
1Net asset value.
2Total Return for period beginning October 2, 1995 (commencement of operations)
to December 31,1995 and January 1, 1996 to
February 29, 1996.
3IBC's Money Fund Reporttrademark-All Taxable, First Tier. The Standard and
Poor's 500 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. The IBC's Money Fund
Reporttrademark-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
Reporttrademark-All Taxable, First Tier does not reflect any commissions or fees
which would be incurred by an investor purchasing the securities it represents.
The Lehman Brothers Intermediate-Term Government Bond Index is comprised of all
publicly issued, non-convertible debt of the U.S. government or any agency
thereof, quasi-federal corporations, and corporate debt guaranteed by the U.S.
government with maturities of between one and ten years. Note: All performance
information cited here 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.

Financial Highlights

Financial Highlights
Period Ended December 31, 1995*

The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements. The information in the following table of financial highlights has
been audited by Ernst & Young LLP, the Funds' independent auditors, whose
unqualified report is included in the Funds' annual report which is incorporated
by reference in the Statement of Additional Information.

<TABLE>
<CAPTION>
Transamerica

Premier
Transamerica
Transamerica Transamerica Transamerica Transamerica Short-
Premier
Adviser Class Premier Premier Premier Premier Intermediate Cash
Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund
Fund
Net Asset Value
<S> <C> <C> <C> <C> <C>
Beginning of period $10.00 $10.00 $10.00 $10.00 $10.00
$1.00

Investment Operations
Net investment income (1) 0.01 0.04 0.12 0.03 0.12
0.01
Net realized and
unrealized gain (loss) (0.20) 0.54 0.35 0.19 0.22
- -
Total from investment
operations (0.19) 0.58 0.47 0.22
0.34 0.01

Distributions to
Shareholders from:
Net investment income - - (0.10) - (0.09)
(0.01)

Net Asset Value
End of period $9.81 $10.58 $10.37
$10.22 $10.25 $1.00

TOTAL RETURN (2) (1.90)% 5.80% 4.69% 2.20% 3.37%
1.26%

Ratios and Supplemental
Data
Ratio of expenses to
average net assets (3) (4) 0.94%1.12% 0.98% 0.98% 0.99%
0.38%
Ratio of net income to
average net assets (4) 0.63% 1.49% 5.72% 2.36% 4.84%
5.43%
Portfolio turnover rate (4)0% 4% 19% 16% 260%
N/A
Net assets end of period $57,194 $223 $9,602 $18,582 $216
$21,277
</TABLE>

*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of certain fees by the Investment
Adviser and reimbursement of certain expenses by the Administrator (see Note 2
to the financial statements). If the Investment Adviser had not waived fees and
the Administrator had not reimbursed expenses, net investment income (loss) per
share would have been $(0.62) for the Transamerica Premier Equity Fund, $(0.05)
for the Transamerica Premier Index Fund, $(3.01) for the Transamerica Premier
Bond Fund, $(1.95) for the Transamerica Premier Balanced Fund, $0.08 for the
Transamerica Premier Short-Intermediate Government Fund, and $(0.24) for the
Transamerica Premier Cash Reserve Fund. (2) Total return represents aggregate
total return for the period indicated and is not annualized. (3) If the
Investment Adviser had not waived fees and the Administrator had not reimbursed
expenses, the ratio of operating expenses to average net assets would have been
92.04% for the Transamerica Premier Equity Fund, 4.52% for the Transamerica
Premier Index Fund, 147.96% for the Transamerica Premier Bond Fund, 150.92% for
the Transamerica Premier Balanced Fund, 2.55% for the Transamerica Premier
Short-Intermediate Government Fund, and 109.23% for the Transamerica Premier
Cash Reserve Fund. (4) Annualized.

Financial Highlights - Unaudited

Financial Highlights
Period From January 1, 1996 to February 29, 1996 (unaudited)

The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>

Transamerica

Investment Operations
Net investment income (1) (0.01) 0.03 0.08 0.01 0.05
0.01
Net realized and
unrealized gain 0.47 0.37 (0.38) 0.21 (0.11)
0.00
Total from investment
operations 0.46 0.40 (0.30) 0.22 (0.06)
0.01

Less Distributions Declared
to Shareholders From:
Net investment income 0.00 (0.03) (0.09) (0.03) (0.08)
(0.01)
Net realized gains 0.00 0.00 0.00 0.00 (0.03)
0.00
Total distributions declared
to shareholders 0.00 (0.03) (0.09) (0.03) (0.11)
(0.01)

Net Asset Value
End of period $10.27 $10.95 $9.98 $10.41 $ 10.08
$1.00

TOTAL RETURN (2) 4.70% 3.83% (2.93)% 2.28% (0.62)%
0.87%

Ratios and Supplemental
Data
Ratio of expenses to
average net assets (3)(4) 2.25% 1.69% 2.05% 2.20% 1.67%
0.40%
Ratio of net income to
average net assets (4) (1.08)% 1.39% 5.46% 1.20% 4.46%
5.23%
Portfolio turnover rate (4)3% 34% 23% 22% 296% N/A
Net assets end of period $138,060$231 $83,042 $167,022 $214$137,400

</TABLE>

(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,
net investment income (loss) per share would have been $(0.05) for the
Transamerica Premier Equity Fund, $(242.56) for the Transamerica Premier Index
Fund, $(1.54) for the Transamerica Premier Bond Fund, $(0.46) for the
Transamerica Premier Balanced Fund, $(1.59) for the Transamerica Premier
Short-Intermediate Government Fund, and $(0.26) for the Transamerica Premier
Cash Reserve Fund. (2) Total return figures are not annualized. (3) If the
Investment Adviser had not waived fees and the Administrator had not reimbursed
expenses, the ratio of operating expenses to average net assets would have been
105.41% for the Transamerica Premier Equity Fund, 13,452.39% for the
Transamerica Premier Index Fund, 111.26% for the Transamerica Premier Bond Fund,
88.79% for the Transamerica Premier Balanced Fund, 14,159.95% for the
Transamerica Premier Short-Intermediate Government Fund, and 60.74% for the
Transamerica Premier Cash Reserve Fund. (4) Annualized.

The Funds in Detail

The Funds in Detail
Fund Objectives, Strategies and Policies The investment objectives, strategies,
and policies of each Fund are described below. There is also a section for each
Fund giving some points to consider when investing in that Fund's shares. The
"Some Points to Consider When Investing" section is designe d to suggest
circumstances for investing in that Fund, and give you a better understanding of
the Fund. Fund Risks The "Investment Procedures and Risk Considerations for the
Funds" section on page 16 details specific risks of the types of securities in
which the Funds invest. Transamerica Premier Equity Fund Investment Objective We
seek to maximize long-term growth for this Fund. Investment Strategies and
Policies We invest primarily in common stocks of growth companies that we
consider to be premier companies that are undervalued in the stock market. We
believe premier companies have:
* managements that demonstrate their outstanding capabilities through a
combination of superior track records and well-defined plans for the future; *
low cost proprietary products; * dominance in market share or specialized
market niches; * strong earnings and cash flows to finance future growth; or *
shareholder orientation by increasing dividends, stock repurchases, and
strategic acquisitions.
We also select companies for their potential for growth based upon trends
in the U.S. economy. Some major trends have included: a) the aging of baby
boomers; b) the proliferation of communication and information technologies;
c) the shift toward financial assets rather than real estate or other
tangible assets; and d) the continuing increase in U.S. productivity.
We focus on growth stocks for this Fund. We will generally invest at least
65% of the Fund's assets in common stocks. We may also invest in preferred
stocks, warrants, and bonds convertible into common stocks. When the Investment
Adviser determines that market conditions warrant, the Fund may invest without
limit in cash and cash equivalents for temporary defensive purposes. It is not
expected to be used routinely. As part of the management of cash and cash
equivalents and to help maintain liquidity, we may purchase and sell the same
kind of money market and other short-term instruments and debt securities as we
do for the Transamerica Premier Cash Reserve Fund. See "Transamerica Premier
Cash Reserve Fund" on page 14.
We may buy foreign securities if they meet the same criteria described above
for the Fund's investments in general. We may invest as much as 20% of its
assets in foreign securities. At times the Fund may have no foreign investments.
Foreign securities we purchase will be those traded on the U.S. exchanges as
American Depositary Receipts ("ADR's"). ADR's are registered stocks of foreign
companies which trade on U.S. stock exchanges. Some Points to Consider when
Investing Since we invest primarily in common stocks, our investments are
subject to stock market price volatility. Price volatility means that stock
prices can go up or down due to a variety of economic and market conditions.
However, we attempt to lessen price volatility by focusing on the potential
for each prospective holding (a "bottom up" approach) rather than the economic
and business cycle (a "top down" approach). The Fund is constructed one stock at
a time. Each company passes through our research process and in our opinion
stands on its own merits as a viable investment. Our proprietary fundamental
research is designed to identify companies with potential for improvement in
profitability and acceleration of growth. We believe a rising stock market will
tend to provide significant opportunities for these fundamental improvements to
be reflected in stock prices. We believe these stocks to have stable inherent
value under most circumstances and tend to be better protected in a general
declining market.
The Fund is intended for investors who have the perspective, patience, and
financial ability to take on above-average stock market volatility in a focused
pursuit of long-term capital growth. Because of the uncertainty associated with
common stock investments, the Fund is intended to be a long-term investment.
Transamerica Premier Index Fund Investment Objective We seek to track the
performance of the Standard & Poor's 500 Composite Stock Price Index, also known
as the S&P 500 Index (the "Index"), for this Fund. Investment Strategies and
Policies To achieve the Fund's objective, we use a combination of management
techniques. We purchase common stocks, S&P 500 Stock Index futures, S&P 500
Stock Index options, and short-term instruments in varying proportions. For
common stocks, investment decisions are based solely on the market proportions
of securities which are included in the Index. The only exception is that
Transamerica Corporation common stock will not be purchased. Our stock purchases
reflect the Index, but we make no attempt to forecast general market movements.
The S&P 500 Index is an unmanaged index which assumes reinvestment of
dividends and is generally considered representative of U.S. large
capitalization stocks. The Index is composed of 500 common stocks of
large-capitalization companies that are chosen by Standard and Poor's
Corporation on a statistical basis. The inclusion of a stock in the Index in no
way implies that Standard & Poor's Corporation believes the stock to be an
attractive investment. The 500 stocks, most of which trade on the New York Sto
ck Exchange, represent approximately 70% of the market value of all U.S. common
stocks. Each stock in the Index is weighted by its market value.
Because of the market value weighting, the 50 largest companies in the Index
currently account for approximately 50% of the Index. Typically, companies
included in the Index are the largest and most dominant firms in their
respective industries. As of December 31, 1995, the five companies with the
largest weighting in the Index were: * General Electric (1.6%), * AT&T
Corporation (1.4%), * Exxon Corporation (1.3%), * Coca Cola (1.3%), and * Philip
Morris Companies (1.0%).
The Investment Adviser routinely compares the Fund's composition to the
Index and rebalances the Fund as required.
We may invest in instruments, other than common stocks, whose return depends
on stock market prices. They include S&P 500 Stock Index futures contracts,
options on the Index, options on futures contracts, and debt securities. These
are derivative securities whose returns are linked to the returns of the S&P 500
Index. These investments are made primarily to help the Fund track the total
return of the Index. The use of S&P 500 Index derivatives allows the Fund to
achieve close correlation with the Index on a cost-effective basis while
maintaining liquidity. Purchase of futures and options requires only a small
amount of cash to cover the Fund's position and approximate the price movement
of the Index. In order to avoid leverage, any cash which we do not invest in
stocks or in futures and options we invest in short-term debt securities of the
same type as the Transamerica Premier Cash Reserve Fund can invest. See
"Transamerica Premier Cash Reserve Fund" on page 14. These investments allow the
Fund to approximate the dividend yield of the Index, to cover the Fund's open
positions in the S&P 500 Index derivatives, and to help offset transaction costs
and other expenses not incurred by the unmanaged Index. For more information on
derivatives, see the section on "Options, Futures, and Other Derivatives" on
page 18 of this Prospectus, and also in the Statement of Additional Information.
The Transamerica Premier Index Fund is not affiliated with, sponsored,
endorsed, sold or promoted by Standard & Poor's Corporation. Some Points to
Consider when Investing The performance of the Transamerica Premier Index Fund
will reflect the performance of the S&P 500 Index although it may not match it
precisely. Generally, when the Index is rising, the value of shares in the Fund
should also rise. When the market is declining, the value of shares should also
decline. The Index's returns are not reduced by investment or operating
expenses. So, our ability to match the Index will be impeded by such expenses.
The Fund's return versus the Index, and its monthly correlation with the
movement of the Index, will be reviewed by the Fund's management and reported to
the Board.
The portfolio turnover rate may be as high as 200%. This may result in
higher transaction costs and tax consequences than for a less actively traded
fund, but the Investment Adviser believes that such turnover will not adversely
affect the Fund's performance. See "Investment Procedures and Risk
Considerations for the Funds" on page 16 for more information on turnover.
The Fund is intended for investors who wish to participate in the overall
growth of the economy, as reflected by the domestic stock market. By owning
shares of the Fund, you indirectly own shares of the largest companies,
according to their proportional representation in the Index. Investors should
have the perspective, patience, and financial ability to take on average stock
market volatility in pursuit of long-term capital growth. Because of the
uncertainty associated with common stock investments, the Fund is intended to be
a long-term investment. Transamerica Premier Bond Fund Investment Objective We
seek to achieve a high total return (income plus capital changes) from fixed
income securities consistent with preservation of principal for this Fund.
Investment Strategies and Policies We invest in a diversified selection of
corporate and government bonds and mortgage-backed securities. Through our
proprietary evaluation and credit research, we attempt to identify bonds whose
potential to outperform other similar bonds, by virtue of underlying credit
strength and market mispricing, is not fully reflected in the current bond
market valuations. By actively managing the Fund, we capitalize on these
opportunities. We seek to accumulate additional return by finding price
advantages as they occur in the market.
We normally invest at least 65% of the Fund's assets in investment grade
bonds. Investment grade bonds are rated Baa or higher by Moody's Investors
Service ("Moody's"). They are rated BBB or higher by Standard & Poor's
Corporation ("S&P"). Maturities are primarily between 10 and 30 years. In
addition, we may invest in lower-rated securities (currently not expected to
exceed 20% of the Fund's assets). Those securities are rated Ba1 or lower
(Moody's) and BB+ or lower (S&P). We may also invest in unrated securities of
similar quality, as determined by us. For more information on lower-rated
securities, see "High-Yield ('Junk') Bonds" on page 18 of the Prospectus and see
the Statement of Additional Information. For more information on S&P and Moody's
ratings, see "Summary of Bond Ratings" on page 31.
Our investments may include securities issued or guaranteed by the U.S.
government or its agencies and instrumentalities, publicly traded corporate
securities, as well as municipal obligations. We also may invest in
mortgage-backed securities issued by various federal agencies and government
sponsored enterprises and in other mortgage-related or asset-backed securities.
The investments in mortgage-related securities can be subject to the risk of
early repayment of principal. For more information, see "Mortgage- Backed and
Asset-Backed Securities" on page 19 and the Statement of Additional Information.
We may buy foreign securities and other instruments if they meet the same
criteria described above for the Fund's investments in general. We may invest as
much as 20% of the Fund's assets in foreign securities. At times the Fund may
have no foreign investments. See "Foreign Securities" on page 18.
If a security in the Fund that was originally rated "investment grade" is
downgraded by a ratings service, it may or may not be sold. This depends on our
assessment of the issuer's prospects. However, we will not purchase
below-investment-grade securities if that would increase their representation in
the Fund to more than 35%. See "Summary of Bond Ratings" on page 31 and "High
Yield ('Junk') Bonds" on page 18 for a description of bond ratings and junk
bonds.
As part of the management of cash and cash equivalents and to help maintain
liquidity, we may purchase and sell the same kind of money market and other
short-term instruments and debt securities as we do for the Transamerica Premier
Cash Reserve Fund. See "Transamerica Premier Cash Reserve Fund" on page 14. We
may also invest in options and futures contracts on other securities or groups
of securities and preferred stock. See "Options, Futures and Other Derivatives"
on page 18 and in the Statement of Ad ditional Information. We ordinarily invest
in common stock only as a result of conversion of bonds, exercise of warrants,
or other extraordinary business events. Some Points to Consider when Investing
The Transamerica Premier Bond Fund is intended for investors who have the
perspective, patience, and financial ability to take on above-average bond price
volatility in pursuit of a high total return produced by income from longer-term
securities and capital changes from undervalued credit strength. Due to the
longer maturity of the Fund's assets, the price of the Fund's securities can
fluctuate more sharply than shorter-term securities when interest rates go up or
down. An increase in interest rates will cause prices to fall. A decrease in
rates will cause prices to rise. Because of the uncertainty associated with
long-term bond investments, the Fund is intended to be a long-term investment.
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 changes in interest rates. The basic
quality of the bonds, which are primarily investment grade, tends to provide
some safety of principal.
In general, lower-rated bonds, which are a much lesser component of the
Fund, offer higher returns. But they also carry higher risks. These can include:
a) a higher risk of insolvency, especially during economic downturns; b) a lower
degree of liquidity; and c) the prices of lower-rated bonds can be more
volatile. Transamerica Premier Balanced Fund Investment Objective We seek to
achieve long-term capital growth and current income with a secondary objective
of capital preservation, by balancing investments among stocks, bonds, and cash
(or cash equivalents) for this Fund. Investment Strategies and Policies We
invest in a diversified selection of common stocks, bonds, and money market
instruments and other short-term debt securities. We attempt to achieve
reasonable asset appreciation during favorable periods and conservation of
principal in adverse times. This requires flexibility in managing the Fund's
assets. Therefore, we may shift the portions held in bonds and stocks according
to business and investment conditions. The Fund may hold equity, fixed income,
and cash securities in any proportion, although at all times it will not hold
less than 25% of its assets in non-convertible debt securities. When the
Investment Adviser determines that market conditions warrant, the Fund may
invest without limit, in cash or cash equivalents for temporary defensive
purposes. To the extent that the Fund is so invested, it is not achieving the
investment objectives of the Fund.
In general, common stocks represent 60-70% of the Fund's total assets, with
the remaining 30% to 40% of the Fund's assets primarily invested in investment
grade bonds as rated by either Moody's or S&P and cash (or cash equivalents).
The Fund holds common stocks primarily to provide long-term growth of capital
and income. Changes in the asset mix may be made to increase the bond position
of the Fund and to help achieve the Fund's objectives of long-term growth as
well as capital preservation.
The stocks in the Transamerica Premier Balanced Fund are generally growth
companies that we consider to be premier companies and undervalued in the stock
market. Equity securities may be selected by us based on growth potential and
dividend paying properties since income is a consideration. We manage the equity
portion of the Fund in a similar manner as we do the Transamerica Premier Equity
Fund, although the selection of securities may differ. See "Transamerica Premier
Equity Fund" on page 10.
We invest the fixed income portion of the Fund in a diversified selection of
corporate and U.S. government bonds and mortgage-backed securities. We manage
this portion in a similar manner as we do the Transamerica Premier Bond Fund,
although the selection of securities may differ. See "Transamerica Premier Bond
Fund" on page 12. The fixed income assets are normally at least 65% high
quality, investment grade bonds with maturities of between 5 and 30 years.
Non-investment grade bonds held in the fixed income portion of the Fund will be
less than 20% of the Transamerica Premier Balanced Fund's net assets. For more
information on non-investment grade bonds, see "High-Yield (' Junk') Bonds" on
page 18 and the Statement of Additional Information.
The Fund may also hold certain short-term fixed income securities. As part
of the management of cash and cash equivalents and to help maintain liquidity,
we may purchase and sell the same kind of money market and other short-term
instruments and debt securities as we do for the Transamerica Premier Cash
Reserve Fund. See "Transamerica Premier Cash Reserve Fund" on page 14.
We may buy foreign securities and other instruments if they meet the same
criteria described above for the Fund's investments in general. We may invest as
much as 20% of the Fund's assets in foreign securities. At times the Fund may
have no foreign investment s. Foreign stock securities purchased by us will be
those traded on the U.S. exchanges as American Depositary Receipts ("ADR's"). We
may also invest in stock and bond index futures and options to a limited extent,
as well as preferred stocks. Some Points to Consider when Investing 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. But investment risks cannot totally be avoided. The
expected performance of such a fund would normally lie somewhere between the
performance of an equity fund (holding the same stocks) and the performance of a
bond fund (holding the same bonds). But this depends on the actual proportions
of stocks and bonds. Since we have flexibility in changing the balance between
asset classes, we may increase exposure to the current advantages of one or more
of the asset classes. Or we may avoid the current disadvantages of one or more
of the asset classes.
The Transamerica Premier Balanced Fund is intended for investors who wish to
participate in both the equity and debt markets, but who wish to leave the
allocation of the balance between them to professional management. The Fund is
intended for investors who have the perspective, patience, and financial ability
to take on average market volatility in pursuit of long-term total return that
balances capital growth and current income. Because of the uncertainties
associated with common stock and bond investments, the Fund is intended to be a
long-term investment. Transamerica Premier Short-Intermediate Government Fund
Investment Objective We seek to achieve a high level of current income with the
security of investing in
government securities for this Fund.
Investment Strategies and Policies We generally invest at least 65% of the
Fund's assets in securities issued or guaranteed by the U.S. government, its
agencies or instrumentalities, or its political subdivisions. The Fund will have
a dollar-weighted average maturity of more than two years, but less than five
years. The maturity of individual instruments may range from less than one to as
much as thirty years. Our goal is to offer higher income than money market funds
with greater price stability than most bond funds. Because of the Fund's
emphasis on income, capital appreciation is not a significant investment
consideration. Our investments will consist primarily of bonds and
mortgage-backed securities.
We may invest in U.S. Treasury Bills, notes and bonds. We may also invest in
securities issued by any agency or instrumentality of the United States.
Examples of those securities include those issued by the Government National
Mortgage Association ("GNMA"), the Federal National Mortgage Association
("FNMA"), the Federal Housing Administration, the Federal Farm Credit System, or
the Student Loan Marketing Association. Some agency securities are backed by the
full faith and credit of the U.S. Treasury (such as those issued by GNMA).
Others are supported by a borrowing facility from the Treasury (such as those
issued by FNMA). The remainder are backed by the credit of the issuing agency or
instrumentality. Agency securities that are mortgage-backed (such as those
issued by GNMA) are also subject to prepayment risk. In a period of rising
interest rates, prepayments would be expected to decline, extending the average
life of these securities and increasing their price volatility in relation to
fixed-maturity government securities. In certain situations, this may require
the Fund to sell securities below their cost. For more information on prepayment
risk see the section on "Current Income Risk" under "A General Discussion About
Risk" on page 15 and the section on "Mortgage-Backed and Asset-Backed
Securities" on page 19.
We may also invest up to 35% of the Fund's assets in investment grade
corporate bonds. Investment grade bonds are rated Baa or higher by Moody's
Investors Service ("Moody's"). They are rated BBB or higher by Standard & Poor's
Corporation ("S&P"). For more information on S&P and Moody's ratings, see
"Summary of Bond Ratings" on page 31. We may also invest in instruments derived
from (i.e. derivative instruments) government or government agency securities.
For more information on derivatives see "Options, Futures, and Other
Derivatives" on page 18. As part of the management of cash and cash equivalents
and to help maintain liquidity, we may purchase and sell the same kind of money
market and other short-term instruments and debt securities as we do for the
Transamerica Premier Cash Reserve Fund. See "Transamerica Premier Cash Reserve
Fund" on page 14. Some Points to Consider when Investing Generally, the
Transamerica Premier Short-Intermediate Government Fund is subject to relatively
low credit risk. This is because we invest primarily in securities that are
issued or guaranteed by the U.S. government, its agencies or instrumentalities,
or its political subdivisions or other top-rated securities, although the Fund
itself is not guaranteed. Under normal conditions, the Fund provides a higher
yield than money market funds because of the somewhat longer maturity of the
securities. The high quality and the limited maturity of the assets tend to pr
ovide safety of principal. Most bonds will fall in price when interest rates
rise. Bonds of higher credit quality tend to better withstand the changes in the
economy. Also, shorter-term bonds will decline less than longer-term bonds.
In attempting to achieve its objective, the Fund will actively trade its
investments. This may result in higher transaction costs and tax consequences
than for a less actively traded fund, but the Investment Adviser believes that
such turnover will not adversely affect the Fund's performance. The portfolio
turnover rate may be as high as 300%. See "Investment Procedures and Risk
Considerations for the Funds" on page 16 for more information on turnover.
The Transamerica Premier Short-Intermediate Government Fund is intended for
investors who wish to earn higher income than is available from money market
funds. However, this Fund may have more short-term volatility than a money
market fund. Investors should have the perspective and patience to accept the
additional price fluctuation for the advantage of earning generally higher
returns than is available from money market funds. Transamerica Premier Cash
Reserve Fund Investment Objective We seek to maximize current income from money
market securities consistent with liquidity and preservation of principal for
this Fund. Investment Strategies and Policies This is a money market fund. We
invest primarily in high quality U.S. dollar-denominated money market
instruments of U.S. and foreign issuers with remaining maturities of 13 months
or less, including:
* Obligations issued or guaranteed by the U.S. and foreign governments and
their agencies or instrumentalities; * Obligations of U.S. and foreign banks,
or their foreign branches, and U.S. savings banks; * Short-term corporate
obligations, including commercial paper, notes, and bonds; * Other short-term
debt obligations with remaining maturities of 397 days or less; and *
Repurchase agreements involving any of the securities mentioned above.
We may also purchase other marketable, non-convertible corporate debt
securities of U.S. issuers. These investments include bonds, debentures,
floating rate obligations, and issues with optional maturities. See the
Statement of Additional Information for a description of these securities.
Bank obligations are limited to U.S. or foreign banks having total assets
over $1.5 billion. Investments in savings association obligations are limited
to U.S. savings banks with total assets over $1.5 billion. Investments in
bank obligations can include instruments issued by foreign branches of U.S.
or foreign banks or domestic branches of foreign banks.
In addition, we may invest in U.S. dollar-denominated obligations issued or
guaranteed by foreign governments or their political subdivisions, agencies, or
instrumentalities. We may buy these foreign securities and other instruments if
they meet the same criteria described above for the Fund's investments in
general. The Fund can invest up to 25% of its assets in obligations of Canadian
and other foreign issuers. At times the Fund may have no foreign investments.
The commercial paper and other short-term corporate obligations are
determined by us to present minimal credit risks. We determine that they are
either: a) rated in the highest short-term rating category by at least two
nationally recognized statistical rating organizations; b) rated in the highest
short-term rating by a single rating organization if it's the only organization
that has assigned the obligations a short-term rating; or c) unrated, but
determined by us to be of comparable quality (also called "First Tier
Securities").
We seek to maintain a stable net asset value of $1.00 per share by investing
in securities which present minimal credit risk as defined above, by maintaining
the average maturities of the Fund's portfolio at 90 days or less, and by
valuing the Fund's securities on an amortized cost basis. Some Points to
Consider when Investing The Fund provides a low risk, relatively low cost way to
maximize current income through high quality money market securities that offer
stability of principal and liquidity. The rates on short-term investments made
by us and the daily dividend will vary, rising or falling with short-term rates
generally. The Fund's yield will tend to lag behind the changes in interest
rates. The speed with which the Fund's yield reflects current market rates will
depend on how quickly its securities mature and the amount of money available
for new investment.
This Fund may be a suitable investment for temporary or defensive purposes.
It may also be appropriate as part of an overall long-term investment strategy.
THE TRANSAMERICA PREMIER CASH RESERVE FUND IS NEITHER INSURED NOR GUARANTEED BY
THE UNITED STATES 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. What is
Fundamental? The investment objectives given for each Fund are fundamental. This
means they can be changed only with the approval of the majority of
shareholders. We can give you no assurance that these objectives will be met.
Many of the strategies and policies are not fundamental. This means strategies
and policies can be changed by the Board without your approval.
If any investment objectives of a Fund change, you should decide if the Fund
still meets your financial needs. More information about this is in the
Statement of Additional Information. A General Discussion About Risk It's
important for you to understand the risks inherent in investing in different
kinds of funds, such as our Funds. All investments are subject to risk. Even
money you hide in your mattress is subject to the risk that inflation may erode
its value. Each of the Funds is subject to the following risks: Market or Price
Volatility Risk For stocks, this refers to the up and down price fluctuations,
or volatility, caused by changing conditions in the financial markets. For bonds
and other debt securities, it is the change in market price caused by interest
rate movements. Longer-maturity bond funds and stock funds are more subject to
this risk than money market and shorter-maturity bond funds. Financial or Credit
Risk For stocks and other equity securities, financial risk comes from the
possibility that current earnings of the stock company will fall or that overall
financial circumstances will decline. Either of these could cause the security
to lose its value. For bonds and other debt securities, financial risk comes
from the possibility that the issuer will not be able to pay principal and
interest on time. Funds with low quality bonds and speculative stock funds are
more subject to this risk than funds with government or high quality bonds. For
more information, see "High-Yield ('Junk') Bonds" on page 18 and "Summary of
Bond Ratings" on page 31. Current Income Risk The Funds receive income, either
as interest or dividends, from the securities in which they have invested. Each
Fund pays out substantially all of this income to its shareholders as dividends.
See the footnote for "What About Taxes?" on page 26. The dividends paid out to
shareholders are called current income. Current income risk means how much and
how quickly overall interest rate or dividend rate changes on income received by
the Funds affects our ability to maintain the current level of income paid to
shareholders. Inflation or Purchasing Power Risk Inflation risk is the
uncertainty that your invested dollars may not buy as much in the future as they
do today. Longer-maturity bond funds are more subject to this risk than money
market or stock funds. Sovereign Risk Sovereign risk is the potential loss of
assets or earning power due to government actions, such as taxation,
expropriation, or regulation. Funds with large investments overseas or funds
with tax-advantaged investments are more subject to this risk.
More in-depth information about risk is provided in the following section
and in the Statement of Additional Information. Investment Procedures and Risk
Considerations for the Funds Buying and Selling Securities In general, we
purchase and hold securities for each Fund for capital growth, current income,
or a combination of those purposes. However, we ordinarily buy and sell
securities whenever we think it is appropriate in order to achieve the Fund's
investment objective. Fund changes can result from liquidity needs, securities
reaching a price objective, anticipated changes in interest rates, a change in
the creditworthiness of an issuer, or from general financial or market
developments. Because investment changes usually are not tied to the length of
time a security has been held, a significant number of short-term transactions
may result.
We may sell one security and simultaneously purchase another of comparable
quality. We may simultaneously purchase and sell the same security to take
advantage of short-term differentials and bond yields. Or we may purchase
individual securities in anticipation of relatively short-term price gains. The
rate of portfolio turnover will not be a determining factor in these decisions.
However, certain tax considerations can restrict our ability to sell securities
in some circumstances when the security has been held for less than three
months. Increased turnover results in higher costs. These costs result from
brokerage commissions, dealer mark-ups and other transaction costs on the sale
of securities and reinvestment in other securities. This can result in the
acceleration of taxable gains.
Turnover has not been and will not be a consideration. The Investment
Adviser buys and sells securities for each Fund whenever they believe it is
appropriate to do so.
We cannot predict precisely the turnover rates for these new Funds, but we
expect that the annual turnover rates will generally not exceed: 50% for the
Transamerica Premier Equity Fund; 200% for the Transamerica Premier Index Fund;
100% for the Transamerica Premier Bond Fund; 50% for the Transamerica Premier
Balanced Fund; and 300% for the Transamerica Premier Short-Intermediate
Government Fund. We expect the turnover rate for the Transamerica Premier Cash
Reserve Fund to be zero for regulatory purposes. A 100% annual turnover rate
would occur if all of a Fund's securities were replaced one time during a one
year period. Short-term gains realized from turnover are taxable to shareholders
as ordinary income, except for shares held in special tax-qualified accounts
(such as IRA's or employer sponsored pension plans). In addition, higher
turnover rates can result in corresponding increases in brokerage commissions
and other transaction costs. We generally will not consider turnover rates in
making investment decisions on behalf of any Fund consistent with the Fund's
investment objective and policies.
For more information, see "What About Taxes?", on page 26, and the Statement
of Additional Information. Fund Lending As a way to earn additional income, we
may lend Fund securities to creditworthy persons not affiliated with the Funds.
Such loans must be secured by cash, collateral or by irrevocable letters of
credit maintained on a current basis in an amount at least equal to the market
value of the securities loaned. During the existence of the loan, we must
continue to receive the equivalent of the interest and dividends paid by the
issuer on the securities loaned and interest on the investment of the
collateral. We must have the right to call the loan and obtain the securities
loaned at any time on three days notice. This includes the right to call the
loan to enable us to execute shareholder voting rights. Such loans cannot exceed
one-third of the Fund's net assets taken at market value. Interest on loaned
securities cannot exceed 10% of the annual gross income of the Fund (without
offset for realized capital gains). The lending policy described in this
paragraph is a fundamental policy that can be changed only by a vote of a
majority of shareholders.
Lending securities to broker-dealers and institutions could result in a loss
or a delay in recovering the Fund's securities. Borrowing Policies of the Funds
We can borrow money from banks or engage in reverse repurchase agreements, for
temporary or emergency purposes. We can borrow up to one-third of a Fund's total
assets. To secure borrowings, we can mortgage or pledge securities in an amount
up to one-third of a Fund's net assets. If we borrow money, a Fund's share price
may be subject to greater fluctuation until the borrowing is paid off. The Fund
will not make any additional investments, other than through reverse repurchase
agreements, while the level of borrowing exceeds 5% of the Fund's total assets.
For more information on reverse repurchase agreements see the "Reverse
Repurchase Agreements and Leverage" section below. Repurchase Agreements We may
enter into repurchase agreements with Federal Reserve System member banks or
U.S. securities dealers. A repurchase agreement occurs when, at the time we
purchase 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. Our risk is the ability of the seller to pay
the agreed-upon price on the delivery date. If the seller is unable to make a
timely repurchase, our expected proceeds could be delayed, or we could suffer a
loss in principal or current interest, or incur costs in liquidating the
collateral. We have established procedures to evaluate the creditworthiness of
parties making repurchase agreements.
The securities underlying repurchase agreements are not subject to the
restrictions applicable to maturity of the Funds or their securities.
We will not invest in repurchase agreements maturing in more than seven
days, if that would result in more than 10% of the Fund's net assets being so
invested when taking into account the remaining days to maturity of our existing
repurchase agreements. Reverse Repurchase Agreements and Leverage We may enter
into reverse repurchase agreements with Federal Reserve member banks and U.S.
securities dealers from time to time. In a reverse repurchase transaction we
sell securities and simultaneously agree to repurchase them at a price which
reflects an agreed-upon rate of interest. We will use the proceeds of reverse
repurchase agreements to make other investments which either mature or are under
an agreement to resell at a date simultaneous with or prior to the expiration of
the reverse repurchase agreement. The Fund may utilize reverse repurchase
agreements only if the interest income to be earned from the investment proceeds
of the transaction is greater than the interest expense of the reverse
repurchase transaction.
Reverse repurchase agreements are a form of leverage which increases the
opportunity for gain and the risk of loss for a given change in market value. In
addition, the gains or losses will cause the net asset value of the Fund's
shares to rise or fall faster than would otherwise be the case. There may also
be a risk of delay in the recovery of the underlying securities, if the opposite
party has financial difficulties.
A Fund's obligations under all borrowings, including reverse repurchase
agreements, will not exceed one-third of the Fund's net assets. When-Issued
Securities We may sometimes purchase new issues of securities on a when-issued
basis. The price of when-issued securities is established at the time the
commitment to purchase is made. Delivery of and payment for these securities
typically occur 15 to 45 days after the commitment to purchase. The market price
of the securities at the time of delivery may be higher or lower than those
contracted for on the when-issued security, and there is some risk the
transaction may not be consummated. We maintain a segregated account for each of
the Funds consisting of cash or high-quality liquid debt securities in an amount
at least equal to the when-issued commitments. Short Sales We may sell
securities which we do not own, or intend to deliver to the buyer if we do own
("sell short") if, at the time of the short sale, we own or have the right to
acquire an equal amount of the security being sold short at no additional cost.
These transactions allow us to hedge against price fluctuations by locking in a
sale price for securities we do not wish to sell immediately.
We may make a short sale when we want to sell a security we own at a current
attractive price. This allows us to postpone a gain or loss for federal income
tax purposes and to satisfy certain tests applicable to regulated investment
companies under the Internal Revenue Code of 1986, as amended, (the "Code"). We
will make short sales only if the total amount of all short sales does not
exceed 10% of the Fund. This limitation can be changed at any time. Municipal
Obligations We may invest in municipal obligations for any Fund, except for the
Transamerica Premier Index Fund. This includes the equity Funds as part of their
cash management techniques. In addition to the usual risks associated with
investing for income, the value of municipal obligations can be affected by
changes in the actual or perceived credit quality. The credit quality of a
municipal obligation can be affected by, among other factors: a) the financial
condition of the issuer or guarantor; b) the issuer's future borrowing plans and
sources of revenue; c) the economic feasibility of the revenue bond project or
general borrowing purpose; d) political or economic developments in the region
or jurisdiction where the security is issued; and e) the liquidity of the
security. Because municipal obligations are generally traded over the counter,
the liquidity of a particular issue often depends on the willingness of dealers
to make a market in the security. The liquidity of some municipal issues can be
enhanced by demand features which enable us to demand payment from the issuer or
a financial intermediary on short notice. High-Yield ("Junk") Bonds High-yield
bonds (commonly called "junk" bonds) are lower-rated bonds that involve higher
current income but are predominantly speculative because they present a higher
degree of credit risk. Credit risk is the risk that the issuer of the bonds will
not be able to make interest or principal payment on time. If this happens, we
would lose some of our income, and we could expect a decline in the market value
of the securities affected. We need to carefully analyze the financial condition
of companies issuing junk bonds. The prices of junk bonds tend to be more
reflective of prevailing economic and industry conditions, the issuers' unique
financial situations, and the bonds' coupon than to small changes in the level
of interest rates. But during an economic downturn or a period of rising
interest rates, highly leveraged companies can have trouble making principal and
interest payments, meeting projected business goals, and obtaining additional
financing.
We may also invest in unrated debt securities. Unrated debt, while not
necessarily of lower quality than rated securities, may not have as broad a
market. Because of the size and perceived demand for the issue, among other
factors, certain municipalities may decide not to pay the cost of getting a
rating for their bonds. We analyze the creditworthiness of the issuer, as well
as any financial institution or other party responsible for payments on the
security, to determine whether to purchase unrated municipal bonds.
Unrated debt securities will be included in the 35% limit on non-investment
grade debt of the applicable Funds, unless we deem such securities to be the
equivalent of investment grade securities. See "Summary of Bond Ratings" on page
31 and the Statement of Additional Information for a description of bond rating
categories. Foreign Securities We may invest in foreign securities for each of
the Funds, except the Transamerica Premier Index Fund and the Transamerica
Premier Short-Intermediate Government Fund. Foreign equity investments for the
Transamerica Premier Equity Fund and the Transamerica Premier Balanced Fund are
limited to the purchase of American Depositary Receipts ("ADR's") evidencing
ownership of the underlying foreign securities. ADR's are dollar-denominated and
are issued by domestic banks or securities firms and traded in the U.S.
Investing in securities of foreign issuers involves different, and sometimes
greater risks than investments in securities of U.S. issuers. These include an
increased risk of adverse political and economic developments, and with respect
to certain countries, the possibility of expropriation, nationalization or
confiscatory taxation or limitations on the removal of the funds or other assets
of a Fund. These risks are discussed under "A General Discussion About Risk" on
page 15. Options, Futures, and Other Derivatives We may use options, futures,
forward contracts, and swap transactions ("derivatives") for each of the Funds.
However, we do not currently use, nor anticipate using, derivatives for the
Transamerica Premier Cash Reserve Fund. We may seek to protect a Fund against
potential unfavorable movements in interest rates or securities' prices by
investing in derivatives. If those markets do not move in the direction we
anticipate, we could suffer investment losses.
We may purchase, or we may write, call or put options on securities or on
indexes ("options"). We may also enter into interest rate or index futures
contracts for the purchase or sale of instruments based on financial indexes
("futures contracts"), options on futures contracts, forward contracts, and
interest rate swaps and swap-related products. We use these instruments
primarily to adjust a Fund's exposure to changing securities prices, interest
rates, or other factors that affect securities values. This is an attempt to
reduce the overall investment risk. However, the Transamerica Premier Index Fund
will use derivatives as part of its strategy to match the performance of the S&P
500 Index.
Risks in the use of these derivatives include, in addition to those referred
to above: a) the risk that interest rates and securities prices do not move in
the directions being hedged against, in which case the Fund has incurred the
cost of the derivative (either its purchase price or, by writing an option,
losing the opportunity to profit from increases in the value of the securities
covered) with no tangible benefit; b) imperfect correlation between the price of
derivatives and the movements of the securities' prices or interest rates being
hedged; c) the possible absence of a liquid secondary market for any particular
derivative at any time; d) the potential loss if the counterparty to the
transaction does not perform as promised; and e) the possible need to defer
closing out certain positions to avoid adverse tax consequences.
More information on derivatives is contained in the Statement of Additional
Information. Mortgage-Backed and Asset-Backed Securities We may invest in
mortgage-backed and asset-backed securities. The Transamerica Premier Bond Fund
and the Transamerica Premier Short-Intermediate Government Fund are more likely
to invest in such securities than the other Funds. Mortgage-backed and
asset-back ed securities are generally pools of many individual mortgages or
other loans. Part of the cash flow of these securities is from the early payoff
of some of the underlying loans. The specific amount and timing of such
prepayments is difficult to predict, creating "prepayment risk." For example,
prepayments on Government National Mortgage Association ("GNMA's") are more
likely to increase during periods of declining long-term interest rates because
borrowers tend to refinance when interest rates drop. In the event of very high
prepayments, we may be required to invest these proceeds at a lower interest
rate, causing us to earn less than if the prepayments had not occurred.
Prepayments are more likely to decrease during periods of rising interest rates,
causing the expected average life to become longer. This variability of
prepayments will tend to limit price gains when interest rates drop and to
exaggerate price declines when interest rates rise. Zero Coupon Bonds We may
invest in zero coupon bonds and strips. Zero coupon bonds do not make regular
interest payments. Instead, they are sold at a discount from face value. A
single lump sum which represents both principal and interest is paid at
maturity. Strips are debt securities whose interest coupons are taken out and
traded separately after the securities are issued, but otherwise are comparable
to zero coupon bonds. The market value of zero coupon bonds and strips generally
is more sensitive to interest rate fluctuati ons than interest-paying securities
of comparable term and quality. Illiquid Securities We may invest up to 15% of a
Fund's net assets in securities that are illiquid, except that the Transamerica
Premier Cash Reserve Fund may only invest 10%. Securities are considered
illiquid when there is no readily available market or when they have legal or
contractual restrictions. Repurchase agreements which mature in more than seven
days are included as illiquid securities. It may be difficult for us to sell
these investments quickly for their fair market value.
Certain restricted securities that are not registered for sale to the
general public but that can be resold to institutional investors under Rule 144A
may not be considered illiquid. This is provided that a dealer or institutional
trading market exists. The institutional trading market is relatively new.
Liquidity of the Funds' investments could be impaired if trading for these
securities does not further develop or declines. The Investment Adviser
determines the liquidity of Rule 144A securities under guidelines approved by
the Board. Variable Rate, Floating Rate, or Variable Amount Securities We may
invest in variable rate, floating rate, or variable amount securities for each
Fund, except for the Transamerica Premier Equity Fund. These are short-term
unsecured promissory notes issued by corporations to finance short-term credit
needs. They are interest-bearing notes on which the interest rate generally
fluctuates on a scheduled basis. Investments in Other Investment Companies We
may invest up to 10% of a Fund's total assets in the shares of other investment
companies, but only up to 5% of its assets in any one other investment company.
In addition, we cannot purchase more than 3% of the securities of any one
investment company for any Fund. We intend to keep these investments to a
minimum. Shareholder Services This section details the various services
available to you as a shareholder. Pension Plan Sponsors We offer the
investments described in this prospectus, however you may wish to contact your
plan administrator about the services that apply to your specific plan.
Provided the necessary IRS-approved plan documents are available through a
Third Party Admini-strator, employers/plan sponsors can use the Transamerica
Premier Funds as investment options for: * 401(a), 401(k), profit sharing, or
money purchase pension plans (including KEOGH/HR 10 Plans) designed to benefit
employees of corporations, partnerships and sole proprietors. * Section 403(b)
(7) (Tax-Sheltered Annuity) Plans* for employees of educational organizations or
other qualifying tax-exempt organizations. * 457 deferred compensation plans for
employees of state governments and tax-exempt organizations. * Employers'
non-qualified plans or savings programs, that do not qualify for federal tax
advantages. * Other retirement plans or savings programs allowed by the Board.
Your broker may be submitting your application for you. But, if you are
completing your own application, one is provided with this prospectus. Please
call 1-800-89-ASK-US if you need help in completing your application. Send the
application to the address listed on the application form, or in the envelope
provided. Participants or Employees of Company Sponsored Retirement Plans Please
read this prospectus carefully before making your retirement investment
decisions. Not all investment options described in this prospectus may be
available to your plan. If you have specific questions about the details of your
plan, please contact your company's benefits coordinator.
If you are a participant in a Company Sponsored Retirement Plan, you will
complete enrollment forms during your enrollment meetings and therefore do not
need to complete an application. Changes to your investment choices can be made
through your plan administrator. IRA Accounts You can establish an Individual
Retirement Account ("IRA") for yourself or under your employer's Simplified
Employee Pension ("SEP"), or other comparable program allowed by the Internal
Revenue Service with us.
If you are receiving a distribution from your pension plan, or you would
like to transfer your IRA account from another financial institution, you can
continue to get tax-deferred growth by transferring these proceeds to your
Transamerica Premier Fund IRA. If you want to rollover distributions from your
pension plan to an IRA in one or more of the funds, the money must be paid
directly by your pension plan administrator to Transamerica Investors to a avoid
a 20% federal withholding tax. See "What About Taxes?" on page 26.
There is an annual fee of $10 per Fund in which you own shares for
administering your IRA. This is limited to a maximum annual fee of $36 per
taxpayer identification number. We will waive this fee if the combined value of
all shares in your IRA accounts is $5,000 or more when the fee is due.
Alternatively, you can pay a one-time, non-refundable fee of $100 for all IRA
accounts that are maintained under the same taxpayer identification number. You
may pay the fee to us, otherwise we will deduct the annual fee ordinarily during
December of each year or at the time you fully redeem your shares in a Fund, if
before then. The Company reserves the right to change the fee, but we will
notify you at least 30 days in advance of any change.
You or your broker may be submitting an application. A different application
is available for IRA accounts by calling 1-800-89-ASK-US. Please also call this
toll free number if you need help in completing your application. Send it to the
address listed on the application form, or in the envelope provided. * You may
be required to have your own custodian for this plan. How to Buy Shares You May
Buy Shares in One of Four Ways:

1. By Mail Fill out an investment coupon from a previous confirmation statement,
or indicate on your check or a separate piece of paper your name, address and
account number, and mail it to:
Transamerica Investors
P.O. Box 9232
Boston, MA 02205-9232
All investments made by check should be in U.S. dollars and made payable to
Transamerica Investors, Inc., or in the case of a retirement account, the
custodian. We will not accept third party checks, except those payable to an
existing shareholder who is a natural person (as opposed to a corporation or
partnership), and we will not accept checks drawn on credit card accounts. When
you make purchases by check or automatic investment plan, redemptions will not
be allowed until the investment being redeemed has been in the account for 15
business days.

2. By Automatic Investment Plan You can make investments automatically by
electing this service in your application. It will authorize us to take regular,
automatic withdrawals from your bank account. These periodic investments must be
at least $50 for each Fund in which you are automatically investing. You can
change the date or amount of your monthly investment, or terminate the Automatic
Investment Plan, at any time by letter or telephone call (with prior
authorization). Give us your request at least 20 business days before the change
is to become effective. You may also be able to have investments automatically
deducted from:
your paycheck at work;
your savings account;
your social security payments; or
other sources of your choice.
Call 1-800-89-ASK-US for more information.

3. By Telephone If you elect the telephone purchasing service on your
application, you can make occasional electronic withdrawals from your designated
bank account by calling 1-800-89-ASK-US.
We take reasonable precautions to make sure that telephone instructions are
genuine. Precautions include requiring you to positively identify yourself, tape
recording the telephone instructions, and providing written confirmations. We
accept all telephone instructions we reasonably believe to be accurate and
genuine. Any losses arising from communication errors are your responsibility.
If reasonable procedures are not used to confirm that instructions communicated
by telephone are genuine, the Company may be liable for any losses due to
unauthorized or fraudulent transactions.

4. By Wire You can make your initial or subsequent investments in the Funds
by wire. Here's what you need to do:
send us your application form (initial investment only); call 1-800-89-ASK-US
for a wire number; instruct your bank to wire money to State Street Bank, ABA
number
011000028, DDA number
9905-134-4; and
specify on the wire:
a) "Transamerica Investors, Inc.";
b) your Fund's account number, if you have one;
c) identify the Funds in which you would like to purchase shares, and the
amount to be allocated to
each Fund (e.g., $5,000 in the Transamerica Premier Equity Fund and $4,000
in the Transamerica Premier Bond Fund);
d) your name, your city and state; and
e) your wire number.
Wired money is considered received by us when we receive the wire and all
the required information listed above. If we
receive your telephone call and wire before the New York Stock Exchange
closes, usually 4:00 p.m. Eastern Standard Time, the money is credited that
same day if you have supplied us with all other needed information.
Minimum Investments
<TABLE>
<CAPTION>
MINIMUM MINIMUM
INITIAL SUBSEQUENT
TYPE OF ACCOUNT INVESTMENT INVESTMENT
<S> <C> <C>
Regular Accounts $1,000 $100
Pension or Retirement Savings Programs $250 None
Automatic Investment Plans $50 $50
</TABLE>

How to Sell Shares
You can sell your shares to us (called "redeeming") at any time. You'll receive
the net asset value next determined after we receive your redemption request,
assuming all requirements have been met.
Before redeeming, please read "When Share Price Is Determined" on page 27 and
"Points to Remember When Redeeming" on page 23. You have several options for
receiving your redemption:
* By check;
* By electronic transfer to your bank; or * By wire transfer.
If your wire transfer is $2,500 or less, we will charge a $10 fee. Also,
some banks may charge a fee to receive the wire transfer.
If you call us before the close of the New York Stock Exchange, usually 4:00
p.m. Eastern Standard Time, you will receive the price determined as of the
close of that business day. See "Share Price" on page 27.
You May Sell Shares in One of Three Ways:

1. By Mail Your written instructions to us to redeem shares can be in any
one of the following forms:
* By redemption form, available by calling 1-800-89-ASK-US; * By letter; or *
By assignment form or other authorization granting power with respect to
your shares in one of the Funds.
Once mailed to us, your redemption request is irrevocable and cannot be
modified or canceled.
If the amount redeemed is over $50,000, all signatures must be guaranteed.
See "Signature Guarantee" on page 25. The request must be signed by each
registered owner. All owners must sign the request exactly as their names appear
in the registration. For example, if the owner's name appears in the
registration as John Michael Smith, he must sign that way and not as John M.
Smith.

2. By Telephone If you have previously authorized telephone directions in
writing (e.g., in your application), you can redeem your shares by calling
1-800-89-ASK-US. Be careful in calling, since once made, your telephone request
cannot be modified or canceled.
We take reasonable precautions to make sure that telephone instructions are
genuine. Precautions include requiring you to positively identify yourself, tape
recording the telephone instructions, and providing written confirmations. We
accept all telephone instructions we reasonably believe to be accurate and
genuine. Any losses arising from communication errors are your responsibility.
If reasonable procedures are not used to confirm that instructions communicated
by telephone are genuine, the Company may be liable for any losses due to
unauthorized or fraudulent transactions. For detailed information on how
telephone transactions will operate, see the Statement of Additional
Information.

3. By Automatic Income Plan Under the Automatic Income Plan we automatically
redeem enough shares each month to provide you with a check or automatic
deposit to your bank account. The minimum is
$50 per Fund. Please tell us: a) when you want to be paid each month; b) how
much you want to be paid; and c) from which Fund(s). To set up an Automatic
Income Plan, call us at 1-800-89-ASK-US.
If your monthly income payments exceed the dividends, interest, and capital
appreciation on your shares, the payments will deplete your investment.
You can specify the Automatic Income Plan when you make your first
investment. If you sign up for the plan later, the request for the Automatic
Income Plan or any increase in payment amount must be signed by all owners of
your account.
You can request us to send payments to an address other than the address of
record at the time of your first investment. After that, a request to send
payments to an address other than the address of record must be signed by all
owners of your account, with their signatures guaranteed.
The Automatic Income Plan option can be terminated at any time. If it is, we
will notify you. You can terminate the Plan or change the amount of the payments
by writing or calling us. Termination or change will become effective within 15
days after we receive your instructions. How Long Will it Take? We will usually
send your redemption payment to you on the second business day after we receive
your request, but not later than seven days afterwards, assuming we have all the
information we need. If the information you provide us is incomplete, we will
contact you, but this may delay the redemption.
The Company may postpone such payment if: (a) the New York Stock Exchange is
closed for other than usual weekends or holidays, or trading on the New York
Stock Exchange is restricted; (b) an emergency exists as defined by the U.S.
Securities and Exchange Commission (the "Commission"), or the Commission
requires that trading be restricted; or (c) the Commission permits a delay for
the protection of investors.
When a redemption occurs shortly after a recent check purchase, the
redemption proceeds may be held beyond seven days but only until the purchase
check clears, which may take up to 15 days. If you anticipate redemptions soon
after you purchase your shares by check, you can avoid this delay by wiring your
purchase payment. Points to Remember When Redeeming
* All redemptions are made and the price is determined on the day we
receive all necessary documentation. See "When Share Price Is Determined"
on page 27.
* We cannot accept redemptions specifying a certain date or dollar price. It
must be an amount. We will return these requests. * For redemptions greater
than $250,000 the Company reserves the right to give you marketable securities
instead of cash. See the Statement of Additional Information, or call us at
1-800-89-ASK-US. * If you request a redemption check within 30 days of your
address change, you must send us your request in writing with a signature
guarantee. Keep your address current by writing or calling in your new address
to us as soon as possible. * Except for a transfer of redemption proceeds to
the custodian of a tax-qualified plan, we will make all payments to the
registered owner of the shares, unless you tell us otherwise. * We will mail
all checks to the address of record, unless you tell us otherwise. * If the
redemption request is made by a corporation, partnership, trust, fiduciary,
agent, or unincorporated association, the individual signing the request must
be authorized. If the redemption is from an account under a qualified pension
plan, spousal consent may be required. * A request to redeem shares in an IRA
or 403(b) plan must be accompanied by an IRS Form W4-P (pension income tax
withholding form, which we will provide) and a reason for withdrawal. This is
required by the IRS.
Please call us at 1-800-89-ASK-US or write to Transamerica Investors, P.O. Box
9232, Boston, MA 02205-9232 for further information. How to Exchange Shares
Between Funds If your investment needs change, you can exchange shares in any
Fund for shares of any other Fund within the same class. You can exchange
shares by any of the following methods:
* By mail;
* By telephone; or
* By the Automatic Exchange Plan
By Mail or Telephone The procedures relating to exchanges in writing and by
telephone are the same as for purchases. Exchanges are available to any resident
of any state in which shares of the Fund are legally sold. By Automatic Exchange
Plan You can make automatic share exchanges either once or twice a month. You
can request the service in writing to us. Your request must be signed by all
registered owners of the account. Call 1-800-89-ASK-US for information. Points
to Remember When Making Exchanges Make sure you understand the investment
objective of the Fund into which you are exchanging shares. The exchange service
is not designed to give shareholders the opportunity to "time the market." It
gives you a convenient way to change the balance between
the accounts so that it more closely matches your overall investment objectives
and risk tolerance level.
* You can make an unlimited number of exchanges between the Funds. However,
unless you are using the Automatic Exchange Plan, further exchanges may be
suspended for the remainder of any calendar year during which you make more
than four exchanges involving a single Fund. This limitation is designed to
keep each Fund's asset base stable and to reduce its administrative expenses.
* An exchange is treated as a sale of shares from one Fund and the purchase of
shares in another Fund. Exchanges are taxable events. See "What About Taxes?"
on page 26. * Exchanges into or out of the Funds are made at the next
determined net asset value per share after we receive all necessary
information for the exchange. * Exchanges are accepted only if the ownership
registrations of both accounts are identical. * The Company reserves the right
to reject any exchange request and to modify or terminate the exchange option
at any time.
Between Classes Exchanges between different classes of shares will be on the
basis of the relative net asset values of the respective shares to be exchanged.
You may be able to exchange your shares for shares of a class having a different
pricing structure if you are no longer eligible to purchase shares of the
original class due to a change in your status. You will receive advance notice
if your shares must be exchanged for another class of shares. Other Investor
Requirements and Services Tax Identification Number You must furnish your
taxpayer identification number and state whether or not you are subject to
backup withholding for prior under-reporting. If you don't furnish your tax I.D.
number, redemptions or exchanges of shares, as well as dividends and capital
gains distributions, will be subject to federal withholding tax. Changing Your
Address To change the address on your account, please call us at
1-800-89-ASK-US, or send us a written notification signed by all registered
owners of your account. Include the name of your Fund(s), the account number(s),
the name(s) on the account and both the old and new addresses. Within the first
30 days after an address change, telephone redemptions are permissible only if
the redemption proceeds are wired or electronically transferred. See "How to
Sell Shares" on page 22. Signature Guarantee When a signature guarantee is
required, e.g., when the redemption amount is more than $50,000, the signature
of each owner of record must be guaranteed by a bank or trust company (or
savings bank, savings and loan association, or a member of a national stock
exchange). This is required to comply with general stock transfer rules. You
must obtain a written guarantee that states "Signature(s) Guaranteed" and is
signed in the name of the guarantor by an authorized person. If you have any
questions, call 1-800-8 9-ASK-US.
Our policy to waive the signature guarantee for amounts of $50,000 or less
can be amended or discontinued at any time. A signature guarantee may be
required with regard to any particular redemption transaction. How You Will Get
Ongoing Information About the Funds We will send you a consolidated, quarterly
statement of your account showing all transactions since the beginning of the
current quarter. You can request a statement of your account activity at any
time. Also, each time you invest, redeem, transfer or exchange shares, we will
send you a confirmation of the transaction.
We will send you an annual report that includes audited financial statements
for the fiscal year. It will include a list of securities in each Fund on that
date. We will also send you a semi-annual report that includes unaudited
financial statements for the previous six months. It will also include a list of
securities in each Fund on that date.
We will send you a new Prospectus each year. The Statement of Additional
Information is also revised each year. We will send this to you only if you
request it. Dividends and Capital Gains We distribute substantially all of the
Funds' net investment income in the form of dividends to you. The following
table shows how often we pay dividends on each Fund. Fund Dividend Paid
Transamerica Premier Equity Fund Quarterly Transamerica Premier Index Fund
Quarterly Transamerica Premier Bond Fund Monthly Transamerica Premier Balanced
Fund Quarterly Transamerica Premier Short-Intermediate Government Fund Monthly
Transamerica Premier Cash Reserve Fund Monthly

Although we pay dividends monthly on the Transamerica Premier Cash Reserve
Fund, dividends are determined daily. You may purchase shares of the
Transamerica Premier Cash Reserve Fund by wiring federal funds to State Street
Bank, the Custodian. If you notify us by calling 1-800-89-ASK-US by 1:00 p.m.
Eastern Standard Time, and State Street receives your wired funds by 4:00 p.m.
Eastern Standard Time, your purchase will be effective immediately, and you will
begin to earn dividends on that business day. Federa l funds wires will be
accepted only on a day on which the Federal Reserve is open. To redeem shares of
the Transamerica Premier Cash Reserve Fund by federal funds wire, call
1-800-89-ASK-US. We will wire funds to you the next business day on which the
Federal Reserve is open. You will earn dividends on the day you request
redemption by telephone.
We distribute net capital gains, if any, on all of the Funds annually. You
can select from among the following distribution options:
* Reinvested You can have all of your dividends and capital gains
distributions reinvested in additional shares of the same or any other Fund.
Unless you choose one of the other options, we will select this option for you
automatically; * Cash & Reinvested You can choose to have either your
dividends or your capital gains paid in cash and the other will be reinvested
in additional shares in the same or any other Fund; or * All Cash You can
choose to have your dividends and capital gains distributions paid in cash.
We make distributions for each Fund on a per share basis to the shareholders
of record as of the distribution date of that Fund. We do this regardless of how
long the shares have been held. That means if you buy shares just before or on a
record date, you will pay the full price for the shares and then you may receive
a portion of the price back as a taxable distribution. What About Taxes? Federal
Taxes* Dividends paid by a Fund from net investment income, the excess of net
short-term capital gain over net long-term capital loss, and original issue
discount or certain market discount income will be taxable to shareholders as
ordinary income. Distributions paid by a Fund from the excess of net long-term
capital gain over net short-term capital loss will be taxable as long-term
capital gains regardless of how long the shareholders have held their shares.
These tax consequences will apply regardless of whethe r distributions are
received in cash or reinvested in shares. A portion of the dividends paid to
corporate shareholders may qualify for the corporate dividends-received
deduction to the extent the Fund earns qualifying dividends. We will notify you
after each calendar year of the amount and character of distributions you
received from each Fund for federal tax purposes.
For IRA's and pension plans, dividends and capital gains are reinvested and
not taxed until you receive a qualified distribution from your IRA or pension
plan.
You need to consider the tax implications of buying shares immediately prior
to a dividend or capital gain distribution. Investors who purchase shares
shortly before the record date for a distribution will pay a per share price
that includes the value of the anticipated distribution. You will be taxed when
you receive the distribution even though the distribution represents a return of
a portion of the purchase price. You may want to call us at 1-800-89-ASK-US
before your purchase. We will tell you if a distribution is due.
Redemptions and exchanges of shares are taxable events which may represent a
gain or a loss for the shareholder.
Individuals and certain other classes of shareholders may be subject to
backup withholding of federal income tax on distributions, redemptions and
exchanges if they fail to furnish their correct taxpayer identification number.
Individuals, corporations and other shareholders that are not U.S. persons under
the Code are subject to different tax rules. They may be subject to nonresident
alien withholding on amounts considered ordinary dividends from the Fund.
When you sign your account application, you will be asked to certify that
your social security or taxpayer identification number is correct. You will also
be asked to certify that you are not subject to backup withholding for failure
to report income to the Internal Revenue Service. Pension and Retirement Savings
Programs The tax rules applicable to participants and beneficiaries in Pension
and Retirement Savings Programs vary according to the type of plan and the terms
and conditions of the plan. In general, distributions from these plans are taxed
as ordinary income. Speci al favorable tax treatment may be available for
certain types of contributions and distributions. Adverse tax consequences may
result from contributions in excess of specified limits:
distributions prior to age 591/2 (subject to certain exceptions);
distributions that do not conform to specified commencement and minimum
distribution rules;
aggregate distributions in excess of a specified annual amount; and
in other specified circumstances.
You should consult a qualified tax adviser for more information. Other Taxes In
addition to federal taxes, you may be subject to state and local taxes on
payments received from us. Depending on the state tax rules pertaining to a
shareholder, a portion of the dividends paid by a Fund that come from direct
obligations of the U.S. Treasury and certain agencies may be exempt from state
and local taxes. Check with your own tax adviser regarding specific questions as
to federal, state and local taxes.
*For each taxable year, we intend to qualify each Fund as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986,
as amended, (the "Code"). Qualifying regulated investment companies
distributing substantially all of their ordinary income and capital gains are
not subject to federal income or excise tax on any net investment income and
net realized capital gains distributed to shareholders. However, the
shareholders (you) are subject to tax on these distributions.
Share Price
How Share Price is Determined We value Fund securities, primarily traded on a
domestic securities exchange or nasdaq, at the last sale price on that exchange
on the day the valuation is made. We take price information on listed securities
from the exchange where the security is primarily traded. If no sale is
reported, we use the mean of the latest bid and asked prices. We generally price
securities traded over-the-counter the same way. When market quotations are not
readily available, we value securities and other assets at fair value as
determined in good faith by the Board.
We will value all securities held by the Transamerica Premier Cash Reserve
Fund, and any short-term investments of the other Funds with maturities of 60
days or less at the time of purchase, on the basis of amortized cost when the
Board determines that amortized cost is fair value. Amortized cost involves
valuing an investment at its cost and a constant amortization to maturity of any
discount or premium, regardless of the effect of assuming movements in interest
rates. For more information, see the Statement of Additional Information. When
Share Price is Determined The price of your shares is their net asset value. We
determine the net asset value by calculating the total value of the Fund's
assets, deducting total liabilities, and dividing the result by the number of
shares outstanding. Except for the Transamerica Premier Cash Reserve Fund, we
determine the net asset value only on days that the New York Stock Exchange (the
"Exchange") is open. We determine the net asset value of the Transamerica
Premier Cash Reserve Fund only on days that the Federal Reserve is open.
If we receive your investment or redemption request before the close of
business on the Exchange, usually 4:00 p.m. Eastern Standard Time, your share
price for that transaction will be the price we determine at the close of the
Exchange that day. When investment and redemption requests are received after
the Exchange is closed, we use the share price at the close of the Exchange the
next day the Exchange is open. We consider investment and redemption requests by
telephone to be received at the time of your telephone call, assuming you've
given us all required information.
We consider purchase payments to be received only when your check, wire, or
automatic investment funds are received by us along with all required
information. We consider wired funds to be received on the day they are
deposited in the Company's bank account. If you call us with wire instructions
before the Exchange closes, we usually deposit the money that day. Where to Find
Information about Share Price You can get the current net asset values of your
Funds by calling us at 1-800-89-ASK-US. The net asset value of each Fund may
also be published in leading newspapers daily, once its net assets reach a
certain amount. Investment Adviser and Administrator Investment Adviser Services
The Investment Adviser is responsible for making investment decisions for the
Funds. The Investment Adviser is also responsible for the selection of brokers
and dealers to execute transactions for each Fund. Some of these brokers or
dealers may be affiliated persons of the Company, the Investment Adviser,
Administrator, or the Distributor. Since it is our policy to seek the best price
and execution for each transaction, the Investment Adviser may give
consideration to brokers and dealers who provide us with statistical information
and other services in addition to transaction services. Additional information
about the selection of brokers and dealers is provided in the Statement of
Additional Information.
Trading decisions for each of the Funds described in this Prospectus are
made by a team of expert managers and analysts headed by a team leader. The team
leader is primarily responsible for the day-to-day decisions related to their
Fund. They are supported by the entire group of managers and analysts. The team
leader of any one Fund may be on another Fund team. The transactions and
performance of the Funds are reviewed continuously by the Investment Adviser's
senior officers.
Here's a listing and brief biography of the team leaders for each of the
Funds:
* Transamerica Premier Equity Fund Glen E. Bickerstaff. Vice President,
Senior Fund Manager and Director of Research, Transamerica Investment
Services. B.S., University of Southern California, 1980. Vice President,
Fish & Lederer Investment Counsel, 1986-1987. Vice President, Pacific Centur
y Advisers, 1980-1986. Joined Transamerica in 1987.
* Transamerica Premier Index Fund Christopher J. Bonavico. Equity Trader
& Analyst, Transamerica Investment Services. M.B.A., New York University,
1993. B.S., University of Delaware, 1987. Equity Research Analyst, Salomon
Brothers, 1989-1993. Business Analyst, Planning & Financial Management,
Chase Manhattan Bank, 1988-1989. Joined Transamerica in 1993.
* Transamerica Premier Bond Fund Sharon K. Kilmer, C.F.A. Vice President
and Director of Fixed Income Portfolio Management, Transamerica Investment
Services. Member of the Los Angeles Society of Financial Analysts. M.B.A.,
University of Southern California, 1982. B.A., University of Southern
California (Magna Cum Laude, Phi Beta Kappa), 1980. Joined Transamerica in
1982.
* Transamerica Premier Balanced Fund
Bonds Sharon K. Kilmer, C.F.A. (see above).
Stocks Jeffrey S. Van Harte, C.F.A. Vice President and Senior Fund
Manager, Transamerica Investment Services. Member of San Francisco Society
of Financial Analysts. B.A., California State University at Fullerton,
1980. Securities Analyst and Trader, Transamerica Investment Services,
1980-1984. Joined Transamerica in 1980.
* Transamerica Premier Short-Intermediate Government Fund and
Transamerica Premier Cash Reserve Fund Kevin J. Hickam, C.F.A. Assistant
Vice President and Fund Manager, Transamerica Investment Services. Member
of Los Angeles Society of Financial Analysts. M.B.A. Cornell University,
1989. B.S., California State University at Chico, 1984. Senior Accountant,
Santa Clara Savings, 1984-1987. Joined Transamerica in 1989.
Adviser Fee For its services to the Funds, the Investment Adviser receives an
Adviser Fee. This fee is based on an annual percentage of the average daily net
assets of each Fund. It is accrued daily, and paid monthly.
The annual fee percentages for the Transamerica Premier Equity Fund are .85%
on the first $1 billion of assets. This reduces to .82% on the next $1 billion,
and finally .80% on assets over $2 billion. The corresponding fee percentages
for the Transamerica Premier Index Fund are .30%, .30%, and .30% respectively.
The corresponding fee percentages for the Transamerica Premier Bond Fund are
.60%, .57%, and .55%, respectively. The corresponding fee percentages for the
Transamerica Premier Balanced Fund are .75%, .72%, and .70%, respectively. The
corresponding fee percentages for the Transamerica Premier Short-Intermediate
Government Fund are .50%, .50%, and .50%, respectively. The corresponding fee
percentages for the Transamerica Premier Cash Reserve Fund are .35%, .35%, and
.35%, respectively.
The Investment Adviser will reduce the Adviser Fee each Fund must pay if the
fee exceeds any state-imposed restrictive expense limitations. This excludes
permissible items, such as brokerage commissions, Rule 12b-1 payments, interest,
taxes and litigation expenses. The Investment Adviser may waive some or all of
these fees from time to time at its discretion. Administrator Services The
Investment Adviser pays part of the Adviser Fee to the Administrator. The
Administrator provides office space for the Company and pays the salaries, fees
and expenses of all Company officers and those directors affiliated with
Transamerica Corporation and not already paid by the Investment Adviser. Each
Fund pays all of its expenses not assumed by the Administrator. This includes
transfer agent and custodian fees and expenses, legal and auditing fees,
printing costs of reports to shareholders, registrati on fees and expenses,
12b-1 fees, and fees and expenses of directors unaffiliated with Transamerica
Corporation.
The Administrator may from time to time reimburse the Funds for some or all
of their operating expenses, including 12b-1 fees. Such reimbursements will
increase a Fund's return. This is intended to make the Funds more competitive.
This practice may be terminated at any time. General Information Transamerica
Investors, Inc. Transamerica Investors, Inc. was organized as a Maryland
corporation on February 22, 1995. The Company is registered with the Securities
and Exchange Commission under the 1940 Act as an open-end, diversified
management investment company of the series type. Each Fund constitutes a
separate series. Each series has two classes of shares, Investor Shares and
Adviser Shares. The fiscal year-end of each of the Funds is December 31.
The Company is authorized to issue and sell multiple classes of shares for
each of the Funds. The Company reserves the right to issue additional classes of
shares in the future without the consent of shareholders, and can allocate any
remaining unclassified shares or reallocate any unissued classified shares.
Except for the differences noted below and elsewhere in this Prospectus,
each share of a Fund has equal dividend, redemption and liquidation rights with
other shares of the Funds and when issued, is fully paid and nonassessable. 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. Each class
will have exclusive voting rights under the 12b-1 distribution plan. In the
event that a special meeting of shareholders is called, separate votes are taken
by each class only if a matter affects, or requires the vote of, just that
class. Although the legal rights of holders of each class of shares are
identical, it is likely that the difference in expenses will result in different
net asset values and dividends. The classes may have different exchange
privileges.
As a Maryland corporation, the Company is not required to hold regular
annual meetings of shareholders. Ordinarily there will be no shareholder
meetings, unless requested by shareholders holding 10% or more of the
outstanding shares, or unless required by the 1940 Act or Maryland law. You are
entitled to cast one vote for each share you own of each Fund. At a special
shareholders meeting, if one is called, issues that affect all the Funds in
substantially the same way will be voted on by all shareholders, without regard
to the Funds. Issues that do not affect a Fund will not be voted on by that
Fund. Issues that affect all Funds, but in which their interests are not
substantially the same, will be voted on separately by each Fund. Custodian and
Transfer Agent Under a Custodian Agreement, State Street Bank and Trust Company
("State Street"), 225 Franklin Street, Boston, Massachusetts 02110, holds all
securities and cash assets of the Funds, provides recordkeeping services, and
serves as the Funds' custodian. State Street is authorized to deposit securities
in securities depositories or to use services of sub-custodians.
Under a Transfer Agency Agreement, State Street Bank also serves as the
Funds' transfer agent. The transfer agent is responsible for: a) opening and
maintaining your account; b) reporting information to you about your account;
c) paying you dividends and capital gains; and d) handling your requests for
exchanges, transfers and redemptions.
Distributor Transamerica Securities Sales Corporation ("TSSC") is the
principal underwriter and distributor of the shares of each of the Funds.
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 is a wholly-owned subsidiary of Transamerica
Corporation. TSSC and TFR are registered with the Securities and Exchange
Commission as broker-dealers. They are also members of the National Association
of Securities Dealers, Inc. Distribution Plan Each Fund makes payments to TSSC
according to a plan adopted to meet the requirements of Rule 12b-1 under the
Investment Company Act of 1940, as amended. These fees accrue daily and are
based on an annual percentage of the daily average net value of the assets
represented by each class of shares.
The 12b-1 plan 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. If TSSC's expenses are
more than its fees for any Fund, the Fund will not have to pay more than those
fees. If TSSC's expenses are less than the fees, it will keep the excess. The
Company will pay the distribution and service fees to TSSC until the
distribution contracts are terminated or not renewed. In that event, TSSC's
expenses over and above any fees through the termination date will be TSSC's
sole responsibility and not the obligation of the Company. The Transamerica
Investors, Inc. Board of Directors (the "Board") will review the distribution
plan, contracts and TSSC's expenses for each class of shares quarterly.
For the Adviser Shares class, there is an annual 12b-1 distribution fee
of .75% of the average daily net assets of the Adviser Shares of each Fund,
except the Transamerica Premier Cash Reserve Fund. There is no distribution fee
for the Transamerica Premier Cash Reserve Fund. There is also an annual 12b-1
service fee of .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 people for ongoing shareholder
information and advice, and office expenses such as rent, communications
equipment, employee salaries, and other overhead costs.
From time to time, and for one or more Funds within each class of Shares,
the Distributor may waive all or any portion of these fees at its discretion.
Dealer Concession Pursuant to a selling agreement between TSSC and TFR, a dealer
concession is paid to TFR equal to 1.00% on all new Adviser Shares purchased,
plus 0.25% on an annual basis on all Adviser Share assets, except on the
Transamerica Premier Cash Reserve Fund. The 0.25% trailer will be paid at
quarter-end at the rate of 0.0625% of the average daily asset balance for the
quarter. No dealer concession is paid on the assets in the Transamerica Premier
Cash Reserve Fund, nor when new shares of this Fund are purchased. However,
exchanges from the Transamerica Premier Cash Reserve Fund may be eligible for a
1.00% concession. Performance Information The Company may publish performance
information about the Funds. Fund performance usually will be shown either as
cumulative total return or average periodic total return compared with other
mutual funds by public ranking services, such as Lipper Analytical Services,
Inc. Cumulative total return is the actual performance over a stated period of
time. Average annual total return is the hypothetical return, compounded
annually, that would have produced the same cumulative return if the Fund's
performance had been constant over the entire period. Each Fund's total return
shows its overall dollar or percentage change in value. This includes changes in
the share price and reinvestment of dividends and capital gains.
The performance of a Fund can also be measured in terms of yield. Each
Fund's yield shows the rate of income the Fund earns on its investments as a
percentage of the Fund's share price.
A Fund can also separate its cumulative and average annual total returns
into income results and capital gains or losses. Each Fund can quote its total
returns on a before-tax or after-tax basis.
The performance information which may be published for the Funds is
historical. It is not intended to represent or guarantee future results. The
value of your Fund shares can be more or less than their original cost when they
are redeemed. From time to time, the Tramsamerica Premier Cash Reserve Fund
advertises its "yield" and "effective yield." Both yield figures are based on
historical earnings and are not intended to indicate future performance. The
"yield" of the Fund refers to the income generated by an investment in the Fund
over a seven-day period (which period will be stated in the advertisement). This
income is then "annualized." That is, the amount of income generated by the
investment during that week is assumed to be generated each week over a 52-week
period and is shown as a percentage of the investment. The "effective yield" is
calculated similarly but, when annualized, the income earned by an investment in
the Fund is assumed to be reinvested. The "effective yield" will be slightly
higher than the "yield" because of the compounding effect of this assumed
reinvestment. For more information, see the Statement of Additional Information.
Material Legal Proceedings There are no material legal proceedings to which the
Company is subject, or to which the Investment Adviser, the Administrator, or
the Distributor are subject which are likely to have a material adverse effect
on their ability to perform their obligations to the Company, or on the Company
itself. Controlling Interest Since the number of Adviser Shares sold during the
period of October 2, 1995 through February 29, 1996 was insignificant, it is not
meaningful to list all shareholders that have a controlling interest in the
Funds as defined in the 1940 Act. Summary of Bond Ratings Following is a summary
of the grade indicators used by two of the most prominent, independent rating
agencies (Moody's Investors Service, Inc. and Standard & Poor's Corporation) to
rate the quality of bonds. The first four categories are generally considered
investment quality bonds. Those below that level are of lower quality, commonly
referred to as "junk bonds." Investment Grade Moody's Standard
& Poor's
Highest quality Aaa AAA
High quality Aa AA
Upper medium A A
Medium, speculative features Baa BBB
Lower Quality
Moderately speculative Ba BB
Speculative B B
Very speculative Caa CCC
Very high risk Ca CC
Highest risk, may not be paying interest C C
In arrears or default C D

For more detailed information on bond ratings, including gradations within
each category of quality, see the Statement of Additional Information.

For the Transamerica Premier Equity Fund, we generally focus on
growth stocks of what
we consider to be
premier companies.

Stock prices go up and down, especially over a short-term horizon. So if you
invest in the Transamerica Premier Equity Fund you should be willing to accept
these kinds of price swings while focusing on the long-term investment
objective.

The Funds in Detail

The Transamerica Premier Index Fund is an easy way for you to invest in the
overall stock market since the Fund's objective is to track the performance of
the S&P 500.

The Funds in Detail

We invest primarily in high quality, investment grade corporate and government
bonds and mortgage-backed securities, and, to a lesser extent, in
below-investment grade securities, foreign securities, and cash equivalents.

Bond prices and interest rates tend to work like a see-saw. Longer maturity
bonds sit out towards the end. Shorter maturity bonds sit in towards the center.
When interest rates rise, bond prices fall. When interest rates fall, bond
prices rise.

The Funds in Detail

The name of the Transamerica Premier Balanced Fund is very descriptive. We
attempt to balance long-term capital growth (stocks) with current income (bonds
and other fixed income securities).

The stocks in the Premier Balanced Fund are usually concentrated among premier
growth companies. We manage that portion of the Fund much like we manage the
Transamerica Premier Equity Fund.

We manage the fixed income portion of the Transamerica Premier Balanced Fund
(mostly bonds and mortgage-backed securities) much like we manage the
Transamerica Premier Bond Fund.

By investing in both stocks and bonds, we attempt to lessen overall investment
risk.

The Funds in Detail

The Transamerica Premier Cash Reserve Fund offers a place to keep your money
while you are considering in which Funds to invest, or for your short-term
needs.

A General Discussion About Risk

How you feel about risk is personal. Risk reflects uncertainty or unexpected
change. Try to come up with a balance of investments that allows you to go after
your main goals while still giving you peace of mind.

Investment Procedures and Risk Considerations for the Funds

We have the ability to buy and sell securities as often as we wish in order to
achieve a Fund's investment objective.

Investment Procedures and Risk Considerations for the Funds

Shareholder Services

When you set up an IRA, you enjoy tax-deferred investment earnings. You may want
to consolidate several IRAs or you may need to invest a distribution from a
former employer's pension plan.

Shareholder Services

We take reasonable steps to make sure your telephone instructions are authorized
and accurate. We record all phone calls and send you confirmation of all
telephone transactions. You are responsible for the accuracy of phone
instructions.

Shareholder Services

You can sell your shares via any of three ways:

(1) by mail,
(2) by telephone, or
(3) under an Automatic
Income Plan.

Shareholder Services

If you want to receive a flat amount each month, use the Automatic Income Plan.
We will automatically sell enough shares every month to provide you with an
income payment. Amounts paid to you by Automatic Income Plan are not a return on
your investment. You must report any gains or losses on your income tax return.
We will provide information to you concerning any gain or loss.

Shareholder Services

Exchanging shares among Funds with different investment objectives gives you the
opportunity to keep your goals in sight as your lifestyle and needs change. For
example, as you get closer to retirement age, you may want to move some of your
investment dollars into more conservative funds to better protect your nest egg.

Exchanges are treated the same as purchases and redemptions. There are tax
considerations you should discuss with your tax adviser.

There is a lot of administrative work in maintaining your account so we require
that you keep at least $500 in each Fund account. Of course, you're investing
for the long haul, so it's to your advantage to keep building up your accounts.
This gives your money a chance to really work for you.

Dividends and Capital Gains

We'll keep you informed about how your investments are doing with quarterly
statements and semi-annual and annual reports.

You're investing in the Funds because you want your money to grow. The
investment income generated by a Fund is distributed to you either as dividends
or capital gains, or both. You can choose to reinvest or take cash, according to
the three options described in this section.

What About Taxes?

Generally, whether or not you choose to reinvest your dividends and capital
gains or take them in cash, they are considered by the IRS to be taxable income.

There are special tax considerations if you are taking a cash distribution
from a pension plan and rolling it over to an IRA in one of the Funds. You
need to discuss this with your tax adviser.

Share Price

The price of your shares is referred to as their net asset value. We calculate
the net asset value each day the New York Stock Exchange (the "Exchange") is
open.

When you buy or sell shares, you get the share price that we determine at the
close of the Exchange on the day we receive your request. If we receive your
request after the close of the Exchange, you get the share price at the close of
the following day.

Investment Adviser and Administrator

General Information

State Street Bank, one
of the biggest and most experienced transfer agents in the business, handles all
your account transactions and provides reports to you about your account. For
information about your account, call the Transamerica Investors team at
1-800-89-ASK-US.

General Information

This Page Intentionally Left Blank

The following 4 pages are the Separate Account Performance insert (tipped onto
page 9- verify with client. This page does not print.)

Supplement Dated April 29, 1996 to Adviser Shares Prospectus Dated April 29,
1996

Investment Adviser's Performance
The following information supplements, and should be read in conjunction with,
the Prospectus to which this supplement is attached.
Because Transamerica Investors, Inc. is a new mutual fund company,
established in 1995, there is limited past performance information available for
the Funds. However, the Investment Adviser, Transamerica Investment Services,
Inc., has been managing segregated investment accounts (or "separate accounts")
for pension clients of Transamerica Corporation's affiliate companies for over
ten years. The Investment Adviser's performance in managing these investments
was a key factor in our decision to offer mutual
funds to the public. This performance is illustrated in the tables and
graphs that follow.
Five of the Funds described in this Prospectus have substantially the same
investment objectives and policies and use the same investment strategies and
techniques as the similarly named, but unrelated, separate accounts managed by
the Investment Adviser. However, there can be no assurance that their
performance will be the same. The Funds may have total assets which will be more
or less than the total assets in the separate accounts. The Investment Adviser
believes that asset size is not a significant factor in the Funds' ability to
achieve their investment objectives.
For comparison purposes, the five separate accounts match up to the
Premier Funds as follows:
Separate Accounts Premier Funds
Equity Separate Account Transamerica Premier Equity Fund
Equity Index Separate Account Transamerica Premier Index Fund
Bond Separate Account Transamerica Premier Bond Fund
Balanced Separate Account Transamerica Premier Balanced Fund
Cash Management Separate Account Transamerica Premier Cash Reserve Fund
The following table shows how the separate accounts' annualized
performance compares to recognized industry indexes over the last one-year,
three-year, and five-year periods.
Separate Account Performance1
<TABLE>
<CAPTION>
1 3 5 Since
Separate Account or Index Year Years Years Inception2
<S> <C> <C> <C> <C>
Equity Separate Account 39.61% 23.69% 24.80% 20.90%
S&P 500 Index 34.70% 16.15% 14.99% 11.97%

Equity Index Separate Account 34.39% 15.71% 14.52% 14.61%
S&P 500 Index 34.70% 16.15% 14.99% 14.83%

Bond Separate Account 15.42% 7.80% 11.13% 12.89%
Lehman Brothers Govt/Corporate Index 12.61% 6.45% 9.04% 10.29%

Balanced Separate Account 35.24% 0 - - 0 - - 18.79%
50% S&P 500 Index and
50% Lehman Brothers Govt/Corporate Index23.26% 0 - - 0 - - 11.14%

Cash Management Separate Account 5.45% 4.11% 4.15% 6.86%
IBC/Donoghue First Tier Index3 5.38% 4.04% 4.08% 6.80%
</TABLE>

1 Figures are as of 2/29/96
2 Inception dates: Equity - 10/1/87; Equity Index - 10/1/86; Bond - 5/1/83;
Balanced - 4/1/93; Cash Management - 1/3/82 3 IBC's Money Fund Report
trademark - All Taxable, First Tier - - Prior to separate account inception

The Investment Adviser has had a history of successfully investing in the
three basic investment categories: equity, bond, and money markets. Following
are graphs of the three separate accounts representing those categories, showing
their performance since inception compared with the performance of recognized
industry indexes for each investment category.
Rates of return shown are calculated using a time-weighted total rate of
return with each period linked to create the long-term rates of return. Results
for periods longer than one year are annualized. This method was used for each
separate account and will also be used for each of the Funds. Beginning on
October 1, 1992 the separate account values were calculated daily and cash flows
were daily. Prior to that date, separate account valuations and cash flows were
monthly.
The following graph shows that $1,000 invested in the Equity Separate
Account at its inception on October 1, 1987 would have grown to about $4,941 as
of February 29,1996. This is equivalent to a 20.90% return per year. By
comparison $1,000 invested at the same time in S&P 500 Index securities would
have grown to only about $2,591. The S&P 500 Index is a selection of 500 common
stocks designed to be a benchmark for the equity market in general.
The following graph shows that $1,000 invested in the Bond Separate Account
at its inception on May 1, 1983 would have grown to about $4,743 as of February
29,1996. This is equivalent to a 12.89% return per year. By comparison $1,000
invested at the same time in Lehman Brothers Government/Corporate Index
securities would have grown to only about $3,518. The Lehman Brothers
Government/Corporate Index is a mixture of both corporate and government bonds
with maturities of 10 years or longer that are rated investment grade or higher
by Moody's or Standard & Poor's.
The following graph shows that $1,000 invested in the Cash Management
Separate Account at its inception on January 3, 1982 would have grown to about
$2,561 as of February 29, 1996. This is equivalent to a 6.86% return per year.
And $1,000 invested at the same time in IBC/Donoghue First Tier Index securities
would have grown to about $2,539. The IBC/Donoghue First Tier Index is a
composite of taxable money market funds that meet the SEC's definition of first
tier securities.
Performance for the separate accounts is shown after reduction for
investment management and administrative charges. The industry indexes shown in
the previous graphs are used for comparison purposes only. They are unmanaged
indexes that have no management fees or expense charges, and they are not
available for investment. Performance figures are based on historical earnings.
They are not intended to indicate future performance.
As you can see, the separate accounts have good long-term performance
records compared with the indexes. Keep in mind the Premier Funds' performance
may differ from the separate accounts' performance. Some reasons for this
difference are timing of purchases and sales, availability of cash for new
investments, brokerage commissions, and diversification of securities. It's
possible that by using different performance-determining methods than we've used
here, the results could vary. You should not rely on this performance data when
deciding whether to invest in a particular Premier Fund. Past performance of the
separate accounts is no guarantee of future results for the Funds.

The performance figures shown opposite are for five investment funds which have
the same Investment Adviser and use the same basic investment strategies as the
corresponding Premier Funds. This demonstrates the Investment Adviser's
investment track record.

Supplement

Transamerica Equity Separate Account
$5,000
$4,000
$3,000
$2,000
$1,000

Equity Separate Account
$4,941

S&P 500 Index
$2,591

'87

'88
'89
'90
'91
'92
'93
'94
'95
'96

Performance since October 1, 1987

Transamerica Bond Separate Account
$5,000
$4,000
$3,000
$2,000
$1,000

Bond Separate Account
$4,743

Lehman Brothers
Government/
Corporate Index
$3,518

'83

'84
'85
'86
'87
'88
'89
'90
'91
'92
'93
'94
'95
'96

Performance since May 1, 1983

Supplement

Transamerica Cash Management Separate Account
$3,000
$2,500
$2,000
$1,500
$1,000
$500

Cash Management Separate Account
$2,561

IBC/Donoghue First Tier Index
$2,539

'82

'84

'86

'88

'90

'92

'94

'96

Performance since January 3, 1982

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