Prospectus: April 29, 1996
Transamerica Premier Funds
Investor 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 Investor 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 39. For Additional Information and Assistance For
additional details about the Funds, you can call 1-800-89-ASK-US
(1-800-892-7587), 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 by calling the above number. 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 6
Fund Performance 9
Financial Highlights 10
The Management Team 14
The Funds In Detail 15
Transamerica Premier Equity Fund 15
Transamerica Premier Index Fund 17
Transamerica Premier Bond Fund 19
Transamerica Premier Balanced Fund 21
Transamerica Premier Short-Intermediate
Government Fund 23
Transamerica Premier Cash Reserve Fund 25
A General Discussion About Risk 27
Investment Procedures and Risk
Considerations for the Funds 28
Shareholder Services 35
Opening Your Account 36
How to Buy Shares 37
How to Sell Shares 39
How to Exchange Shares 43
Other Investor Requirements and Services 44
Dividends and Capital Gains 46
What About Taxes? 47
Share Price 48
Investment Adviser and Administrator 50
General Information 52
ALL OF THE FEES AND EXPENSES ARE SPELLED OUT HERE, SO YOU CAN SEE HOW THESE
COSTS COMPARE WITH OTHER FUNDS.
READ THIS SECTION FOR INVESTMENT PERFORMANCE NUMBERS YOU CAN USE TO COMPARE WITH
OTHER FUNDS.
WE OFFER A NUMBER OF SERVICES THAT MAKE INVESTING IN THE FUNDS SIMPLE AND
EFFICIENT, LIKE OUR AUTOMATIC INVESTMENT PLAN. THIS SECTION LISTS AND
DESCRIBES THESE
SPECIAL SERVICES.
ONE OF THE ADVANTAGES OF INVESTING IN MUTUAL FUNDS IS THE POTENTIAL TO
RECEIVE DIVIDENDS AND/OR
CAPITAL GAINS. YOU CHOOSE HOW YOU WANT TO RECEIVE THESE.
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.
#
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 15. For
information on the risks associated with investment in these Funds, see
"Investment Procedures and Risk Considerations for the Funds" on page 28.
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 under-valued 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 15 for more 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 17 for more 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 19 for more 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 21 for more 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 23 for more
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 25 for more details.
#
The Funds at a Glance
#
The Funds at a Glance
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.
#
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, 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 Investor Shares. INVESTOR SHARES Investor
Shares are available on a no-load basis directly to individuals, companies,
Pension and Retirement Savings Programs, and other institutional investors from
Transamerica Securities Sales Corporation ("TSSC"), the Distributor. For a
listing of applicable Pension and Retirement Savings Programs, see "Pension and
Retirement Savings Programs" on page 56. ADVISER SHARES Adviser Shares are
available only to Pension and Retirement Savings Programs and other
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 TSSC. Individual
investors can buy Adviser 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). To receive a free prospectus about
Adviser Shares, contact a TFR representative or call 1-800-892-7587.
#
Fund Expenses
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
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 Non None None None
Contingent Deferred
Sales Charge None None Non None None None
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 Total Operating
Transamerica Expenses Expenses After
Premier Adviser Fee After Reim-Waiver and
Fund After Waiver212b-1 Fee3 bursement4 Reimbursement5
<S> <C> <C> <C> <C>
Equity 0.85% 0.25% 0.40% 1.50%
Index 0.30% 0.10% 0.30% 0.70%
Bond 0.60% 0.25% 0.45% 1.30%
Balanced 0.75% 0.25% 0.45% 1.45%
Short-Intermediate
Government 0.50% 0.25% 0.10% 0.85%
Cash Reserve 0.35% 0.10% 0.25% 0.70%
</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 3.26%, 2.77%,
3.10%, 3.16%, 2.90% and 2.62%, respectively.
#
Fund Expenses
Example
Using the previous tables of transaction expenses and operating expenses,6 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 36. Transamerica Premier Fund 1 Year 3 Years
Equity $15 $47
Index $ 7 $22
Bond $13 $41
Balanced $15 $46
Short-Intermediate Government $ 9 $27
Cash Reserve $ 7 $22
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 51. 3. 12b-1 fees cover costs
of advertising and marketing the Funds. For more information on 12b-1 fees, see
"Distribution Plan" on page 53. 4. "Other Expenses" are those incurred after any
reimbursements to the Fund by the Administrator. See "The Management Team" on
page 14. Other expenses include expenses not covered by the Adviser Fee or the
12b-1 fee. See "Distribution Plan" on page 53. This can include fees and
expenses attributable solely to a particular class of shares, such as those for
transfer agent and administrative personnel; 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 1.50% for the Premier Equity Fund, 0.70% for the
Premier Index Fund, 1.30% for the Premier Bond Fund, 1.45% for the Premier
Balanced Fund, 0.85% for the Premier Short-Intermediate Government Fund, and
0.70% 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.
#
Fund Performance
Fund Performance
The following table shows how the Funds' (Investor 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 1 Total Return 2 NAV 1 Total Return 2
<S> <C> <C> <C> <C>
Premier Equity Fund $10.27 4.79% $9.82 1.80)%
S&P 500 4.36% 6.02%
Premier Index Fund $10.96 4.06% $10.59 5.90%
S&P 500 4.36% 6.02%
Premier Bond Fund $9.99 (2.71)% $10.37 4.82%
Lehman Brothers Government/Corporate Bond Index(4.45)% 4.66%
Premier Balanced Fund $10.42 2.47% $10.23 2.30%
50% Lehman Brothers Government/Corporate Bond Index
50% S&P 500 (0.05)% 5.34%
Premier Short-Intermediate Government Fund $10.07 (0.49)% $10.25 3.49%
Lehman Brothers Intermediate-Term
Government Bond Index (0.22)% 3.34%
Premier Cash Reserve Fund $1.00 5.12%* $1.00 5.55%*
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.
1 Net asset value.
2 Total Return for period beginning October 2, 1995 (commencement of operations)
to December 31, 1995 and January 1, 1996 to February 29, 1996.
3 IBC'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 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' 1995 annual report which is incorporated by reference
in the Statement of Additional Information.The following table includes selected
data for a share outstanding throughout the period and other performance
information derived from the financial statements.
<TABLE>
<CAPTION>
Transamerica
Premier Transamerica
Transamerica Transamerica Transamecia Transamerica Short- Premier
Investor 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> <C>
Beginning of period $10.00 $10.00 $10.00 $10.00 $10.00 $1.00
Investment Operations
Net investment income (1) 0.02 0.06 0.16 0.06 0.15 0.01
Net realized and
unrealized gain (loss) (0.20) 0.53 0.32 0.17 0.20 -
Total from investment operations (0.18) 0.59 0.48 0.23 0.35 0.01
Distributions to
Shareholders from:
Net investment income - - (0.11) - (0.10) (0.01)
Net asset value
End of period $9.82 $10.59 $10.37 $10.23 $10.25 $1.00
TOTAL RETURN (2) (1.80)% 5.90% 4.82% 2.30% 3.49% 1.39%
Ratios and Supplemental Data
Ratio of expenses to
average net assets (3) (4) 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Ratio of net income to
average net assets (4) 1.51% 2.70% 6.55% 3.12% 5.88% 5.55%
Portfolio turnover rate (4) 0% 4% 19% 16% 260% N/A
Net assets at end of period $11,070,182 $6,933,960 $11,826,508 $12,083,554 $3,436,050 $27,996,475
</TABLE>
*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of certain fees by the Investment
Adviser and reimbursement of certain expenses by the Administrator (see Note 2
to the financial statements). If the Investment Adviser had not waived fees and
the Administrator had not reimbursed expenses, net investment income (loss) per
share would have been $(0.01) for the Transamerica Premier Equity Fund, $(0.03)
for the Transamerica Premier Index Fund, $0.12 for the Transamerica Premier Bond
Fund, $0.02 for the Transamerica Premier Balanced Fund, $0.09 for
theTransamerica Premier Short-Intermediate Government Fund, and $0.01 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
2.44% for the Transamerica Premier Equity Fund, 4.17% for the Transamerica
Premier Index Fund, 1.96% for the Transamerica Premier Bond Fund, 2.16% for the
Transamerica Premier Balanced Fund, 2.54% for the Transamerica Premier
Short-Intermediate Government Fund, and 1.39% for the Transamerica Premier Cash
Reserve Fund. (4) Annualized.
#
#
Financial
Highlights--(Unaudited)
Financial Highlights
Period January 1, 1996 to February 29, 1996
The following table includes selected data for a share outstanding throughout
the period and other performance information. This data is unaudited.
<TABLE>
<CAPTION>
Transamerica
Premier Transamerica
Transamerica Transamerica Transamecia Transamerica Short- Premier
Investor Class Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
<S> <C> <C> <C> <C> <C> <C>
Beginning of period $ 9.82 $10.59 $10.37 $10.23 $10.25 $1.00
Income From Investment Operations
Net Investment Income (1) 0.00 0.07 0.09 0.02 0.09 0.01
Net realized and unrealized gain 0.47 0.36 (0.37) 0.23 (0.14) 0.00
Total from investment operations 0.47 0.43 (0.28) 0.25 (0.05) 0.01
Distributions To Shareholders From:
Net investment income (0.02) (0.06) (0.10) (0.06) (0.10) (0.01)
Net realized gains 0.00 0.00 0.00 0.00 (0.03) 0.00
Total distributions
to shareholders (0.02) (0.06) (0.10) (0.06) (0.13) (0.01)
Net asset value
End of period $10.27 $10.96 $9.99 $10.42 $10.07 $1.00
Total Return (2) 4.79% 4.06% (2.71)% 2.47% (0.49)% 0.89%
Ratios and Supplemental Data
Ratio of expenses to
average net assets (3) (4) 1.50 % 0.70% 1.30% 1.45% 0.85% 0.25%
Ratio of net income to
average net assets (4) (0.38)% 2.61% 5.52% 1.51% 5.23% 5.44%
Portfolio turnover rate (4) 3% 34% 23% 22% 296% N/A
Net assets at end of period $18,893,369 $7,478,636 $11,678,373 $12,876,625 $3,455,064 $27,897,125
</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 $(0.01) for the
Transamerica Premier Equity Fund, $0.04 for the Transamerica Premier Index Fund,
$0.08 for the Transamerica Premier Bond Fund, $0.01 for the Transamerica Premier
Balanced Fund, $0.05 for the Transamerica Premier Short-Intermediate Government
Fund, and $0.01 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 2.27% for the Transamerica Premier Equity
Fund, 4.52% for the Transamerica Premier Index Fund, 2.15% for the Transamerica
Premier Bond Fund, 2.39% for the Transamerica Premier Balanced Fund, 3.17% for
the Transamerica Premier Short-Intermediate Government Fund, and 1.34% for the
Transamerica Premier Cash Reserve Fund. (4) Annualized.
#
#
The Management Team
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 50. 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 28
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 25.
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 25. 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 33 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 28 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 32 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 55.
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 34 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 32.
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 55 and "High
Yield ('Junk') Bonds" on page 32 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 25. 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 33 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 15.
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 19. 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 32 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 25.
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. 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 27 and the section on "Mortgage-Backed and Asset-Backed
Securities" on page 34.
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 55. 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 33. 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 25. 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
provide 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 28 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 maturity 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.
#
The Funds in Detail
FOR THE TRANSAMERICA PREMIER EQUITY FUND, WE GENERALLY FOCUS ON GROWTH STOCKS
OF WHAT WE CONSIDER
TO BE PREMIER
COMPANIES.
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The Funds in Detail
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.
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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.
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The Funds in Detail
#
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.
#
The Funds in Detail
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.
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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.
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The Funds in Detail
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.
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The Funds in Detail
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The Funds in Detail
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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.
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The Funds in Detail
THE TRANSAMERICA PREMIER CASH RESERVE FUND OFFERS THE CONVENIENCE OF A LOW RISK,
RELATIVELY LOW COST INVESTMENT. YOU CAN GET AT YOUR MONEY SIMPLY BY WRITING
CHECKS, JUST AS YOU DO WITH YOUR BANK CHECKING ACCOUNT (ALTHOUGH THERE IS A
MINIMUM CHECK AMOUNT OF $250). SEE "BY CHECK" ON PAGE 41 FOR MORE DETAILS.
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A General Discussion About
Risk
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 32 and "Summary of Bond Ratings" on page 55. 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 47.
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.
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.
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Investment Procedures and
Risk Considerations
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 47, 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 i nformation 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
55 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 27. 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 Our goal is to make your investment in our Funds,
and the ongoing account servicing, as simple as possible by offering the
following shareholder services:
*Simple application form with service representatives to assist you.
*Purchases, exchanges and redemptions by phone.
*Purchases and redemptions by wire.
* Automatic Investment Plan - you designate an amount of $50 or more to be
automatically withdrawn from your checking, savings or other bank account and
deposited into the Fund you select. *Automatic Exchange Plan - allows you to
specify an amount to be automatically withdrawn from one Fund and deposited
into another Fund on a regular basis, once or twice a month. *Automatic Income
Plan - you can receive automatic monthly payments from your Fund account to
your checking or savings account. *Automatic investment of dividends. *Uniform
Gifts to Minors (UGMA or UTMA). *Transmission of redemption proceeds by
electronic funds transfer. *Check writing - unless your account is for a
Pension or Retirement Savings Program, you can write checks for $250 or more
against your Transamerica Premier Cash Reserve Fund account. *Individual
Retirement Account (IRA) - we will administer your IRA.
WE HAVE THE ABILITY
TO BUY AND SELL
SECURITIES AS OFTEN AS WE WISH IN ORDER
TO ACHIEVE A FUND'S INVESTMENT
OBJECTIVE.
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Investment Procedures and
Risk Considerations
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Investment Procedures and
Risk Considerations
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Investment Procedures and
Risk Considerations
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Investment Procedures and
Risk Considerations
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Investment Procedures and
Risk Considerations
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Investment Procedures and
Risk Considerations
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Shareholder Services
WHETHER YOU ARE A NEW INVESTOR, OR YOU ARE A CURRENT SHAREHOLDER, YOU CAN
CALL 1-800-89-ASK-US TO OBTAIN INFORMATION ABOUT YOUR ACCOUNT, OR TO INVEST
IN ANY OF THE TRANSAMERICA PREMIER FUNDS.
MORE DETAILS ON THESE AND OTHER SERVICES ARE IN THE NEXT SECTIONS.
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Shareholder Services
Opening Your Account
To open an account, complete the application and send it to us with a check,
money order, or wire for the amount you want to invest. Mail the application to:
Transamerica Investors
P.O. Box 9232
Boston, MA 02205-9232
If you need help in filling out your application, call one of our customer
service representatives at 1-800-89-ASK-US. We will walk you through the
application and help you understand everything. 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. Contributions to an IRA may be deductible from
your taxable income, depending on your personal tax situation. Please call
1-800-89-ASK-US for your IRA application kit, or for additional information. The
kit has information on whether you qualify for deductible contributions to an
IRA.
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 avoid a
20% federal withholding tax. See "What About Taxes?" on page 47.
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. Uniform Gifts to Minors A
Uniform Gifts/Transfers to Minors Act (UGMA/UTMA) account allows an adult to put
assets in the name of a minor child. The adult maintains control over these
assets until the child reaches the age of majority, which is generally 18 or 21.
State laws dictate which type of account can be used and the age of majority. An
adult must be appointed as custodian for the account and will be legally
responsible for administering the account, but the child's Social Security
number must be used. Generally, the person selected as custodian is one of the
parents or grandparents, but may be some other adult relative or friend. By
shifting assets to a custodial account, you may benefit if the child's tax rate
is lower.
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.
1-800-89-ASK-US
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Shareholder Services
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 annuity from Transamerica; 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
MINIMUM MINIMUM
INITIAL SUBSEQUENT
TYPE OF ACCOUNT INVESTMENTINVESTMENT
Regular Accounts $1,000 $100
Pension or Retirement Saving Programs $250 None
Uniform Gift to Minors (UGMA) or
Transfer to Minors (UTMA) $250 $100
Automatic Investment Plans $50 $50
Your investment must be a specified dollar amount. We cannot accept purchase
requests specifying a certain price, date, or number of shares; these
investments will be returned. The price you pay for your shares will be the next
determined net asset value after your purchase order is received. See "Share
Price" on page 48. The Company reserves the right to reject any application or
investment. There may be circumstances when the Company will not accept new
investments in one or more of the Funds. If you have a securities dealer, bank,
or other financial institution handle your transactions with us you may be
charged a fee by them.
YOU HAVE FOUR OPTIONS WHEN IT COMES TO INVESTING IN THE FUNDS:
(1) BY MAIL,
(2) BY OUR AUTOMATIC INVESTMENT PLAN,
(3) BY TELEPHONE, OR (4) BY WIRE.
THE AUTOMATIC INVESTMENT PLAN IS A GOOD WAY FOR YOU TO MAKE REGULAR, SYSTEMATIC
INVESTMENTS INTO YOUR FUNDS - FOR EXAMPLE, $200 EVERY MONTH THROUGHOUT THE YEAR.
IT GIVES YOU THE CONVENIENCE AND DISCIPLINE OF SYSTEMATIC INVESTING.
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Shareholder Services
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Shareholder Services
How to Sell Shares
You can sell your shares (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 49, "Minimum Account Balances" on page 45,
and "Points to Remember When Redeeming" on page 42.
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 48.
You May Sell Shares in One of Four 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 45. 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 Check (Transamerica Premier Cash Reserve Fund only) Redemptions can be
made from the Transamerica Cash Reserve Fund by check. To be eligible, you must
have applied for the check writing feature on your account application. The
signature(s) you designated must appear on the check for it to be honored. If
you close your account by check, we will send you any accrued dividends by
check. You can write an unlimited number of checks, as long as each check is for
$250 or more, and as long as the Fund account balance does not drop below $500.
See "Minimum Account Balances" on page 45.
This option is not available for Pension or Retirement Savings Program
accounts (including IRA's), or any other account controlled by a fiduciary.
4. 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 49.
* 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.
YOU CAN SELL YOUR SHARES VIA ANY OF FOUR WAYS:
(1) BY MAIL,
(2) BY TELEPHONE,
(3) BY CHECK, OR
(4) UNDER AN AUTOMATIC INCOME PLAN.
1-800-89-ASK-US
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Shareholder Services
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Shareholder Services
IF YOU'RE INVESTED IN THE TRANSAMERICA PREMIER CASH RESERVE FUND, GETTING YOUR
MONEY CAN BE AS EASY AS WRITING A CHECK.
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.
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Shareholder Services
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Shareholder Services
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 this 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
47. * 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.
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.
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Shareholder Services
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 39. 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. Minimum Account
Balances You must maintain a minimum balance of $500 in each Fund in which you
own shares. If a Fund's value falls below $500 as a result of your action, we
will notify you. You will have 30 days to increase your balance to or above the
minimum. If you do not increase your balance, we will redeem your shares and pay
the value to you.
This minimum does not apply if you are actively contributing to that Fund
through an Automatic Investment Plan or if your Fund is for a Pension or
Retirement Savings Program (including IRAs), or for an UGMA/UTMA. 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. How to Transfer Your Shares to Another Person You can transfer
ownership of your shares to another person or organization, or change the name
on an account, by sending us written instructions. The request must be signed by
all registered owners of your account. To change the name on an account, the
shares must be transferred to a new account. The request must include a
signature guarantee. See "Signature Guarantee" on page 45. This option is not
available for Pension or Retirement Savings Programs. Please call us at
1-800-89-ASK-US for additional information. The Company reserves the right to
amend, suspend, or discontinue offering any of these options at any time without
prior notice.
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Shareholder Services
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.
WE'LL KEEP YOU INFORMED ABOUT HOW YOUR INVESTMENTS ARE DOING WITH QUARTERLY
STATEMENTS AND SEMI-ANNUAL AND ANNUAL REPORTS.
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Dividends and Capital Gains
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:
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.
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 AND You can choose to have either your dividends or your capital gains
paid in REINVESTED 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.
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What About Taxes?
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. Special favorable tax treatment may be available for certain
types of contribu tions and distributions. Adverse tax consequences may result
from contributions in excess of specified limits:
1. distributions prior to age 591\2 (subject to certain exceptions);
2. distributions that do not conform to specified commencement and minimum
distribution rules;
3. aggregate distributions in excess of a specified annual amount; and
4. 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.
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.
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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.
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.
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Share Price
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.
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Investment Adviser and
Administrator
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
leaders are 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.
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Investment Adviser and
Administrator
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General Information
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 will distribute Investor Shares.
TSSC is a wholly-owned subsidiary of Transamerica Insurance Corporation of
California, which is a wholly-owned subsidiary of Transamerica Corporation. TSSC
is registered with the Securities and Exchange Commission as a broker-dealer.
TSSC is also a member 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 Investor Shares class, there is an annual 12b-1 distribution fee of
.25% of the average daily net assets of the Investor shares of each Fund, except
the Transamerica Premier Index and Cash Reserve Funds. The distribution fee for
the Index and Cash Reserve Funds is .10%. This fee covers such expenses as
preparation, printing and mailing of the Prospectus and Statement of Additional
Information, as well as sales literature and other media advertising, and
related expenses. It can also be used to compensa te sales personnel involved
with selling the Funds.
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.
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 As of February 29, 1996 the following shareholders
owned controlling interest in the Investor Class, as defined by the 1940 Act:
Transamerica Corporation (Equity, Balanced, Short-Intermediate Government);
Transamerica Occidental Life Insurance Company (Equity, Index, Balanced, Cash
Reserve); ARC Reinsurance Corporation (Index); Transamerica Real Estate Tax
Service (Bond); Transamerica Life Insurance & Annuity Company (Cash Reserve).
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."
STANDARD &
INVESTMENT GRADE MOODY'S 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. Pension
and Retirement Savings Programs Following is a listing of Pension and Retirement
Savings Programs. Provided you have the necessary plan documents, you 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. * Individual Retirement Account ("IRA"),
or comparable program, for individuals and Simplified Employee Pension ("SEP")
Plans for employers (including sole proprietors) and their employees. *
Section 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. *You may be required to have
your own custodian for this plan.
#
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
#
General Information
#
General Information
TRANSAMERICA PREMIER FUNDS PROVIDE A GOOD SELECTION OF FUNDS FOR YOUR RETIREMENT
OR SAVINGS NEEDS.
#
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 Investor 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
AccountTransamerica 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 performance figures shown here 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
Separate Account Performance1
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.
<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
- - - Prior to separate account inception
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 Reporttrademark-
All Taxable, First Tier.
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.
#
Supplement
Equity Separate Account
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.
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
Bond Separate Account
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.
Transamerica Bond Separate Account
$5,000
$4,000
$3,000
$2,000
$1,000
Bond Separate Account
$4,743
Lehman Brothers
Government/Corporate
$3,518
'83
'84
'85
'86
'87
'88
'89
'90
'91
'92
'93
'94
'95
'96
Performance since May 1, 1983
#
Supplement
Cash Management Separate Account
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.
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
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.
#
<PAGE>
Transamerica Premier Portfolio of Funds
Statement of Additional Information
April 29, 1996
Your Guide This Statement of Additional Information will provide you with
details beyond what is available in the Prospectus. Please refer to the
Prospectus first, then to this document. Please read it carefully. Save it for
future reference. The Premier Funds Transamerica Premier Equity Fund The Fund
seeks to maximize long-term capital appreciation. Transamerica Premier Index
Fund The Fund seeks to track the performance of the Standard & Poor's 500
Composite Stock Price Index, also known as the S&P 500 Index (the "Index").
Transamerica Premier Bond Fund The Fund seeks to achieve a high total return
(income plus capital changes) consistent with preservation of principal.
Transamerica Premier Balanced Fund The Fund seeks to achieve long-term capital
growth and current income with a secondary objective of capital preservation, by
balancing its investments among stocks, bonds, and cash. Transamerica Premier
Short-Intermediate Government Fund The Fund seeks to achieve a high level of
current income with the security of investing in government securities.
Transamerica Premier Cash Reserve Fund This is a money market fund that seeks to
maximize current income consistent with liquidity and preservation of principal.
About the Prospectus This Statement of Additional Information is not a
prospectus. It should be read in connection with the current Prospectus dated
April 29, 1996. The Prospectus is available without charge by calling,
1-800-89-ASK-US. Terms used in the Prospectus are incorporated in this Statement
of Additional Information.
People. Performance. Portfolios.
Registration Mark
Contents
Investment Restrictions 3
Description of Corporate Bond Ratings 4
Description of Fixed-Income Instruments 5
Investment Procedures and Risk Considerations for the Funds
High Yield ("Junk") Bonds 6
Restricted and Illiquid Securities 7
Derivatives 7
Options on Securities and Securities Indexes 7
Risks Associated with Options Transactions 8
Futures Contracts and Options on Futures Contracts 8
Swap Transactions 10
Foreign Securities 10
Segregated Accounts 11
Purchase of "When-Issued" Securities 11
Lending of Securities 11
Borrowing Policies of the Funds 11
Repurchase Agreements 11
Reverse Repurchase Agreements and Leverage 12
Other Investment Techniques and Opportunities 12
Fund Turnover 12
Management of the Company 13
Investment Advisory and Other Services 14
Redemption of Shares 15
Exchange Privilege 16
Telephone Transactions 16
Brokerage Allocation 16
Determination of Net Asset Value 17
Performance Information 18
Taxes 19
Other Information 20
Financial Statements 20
Schedule of Investments
Transamerica Premier Equity Fund 21
Transamerica Premier Index Fund 22
Transamerica Premier Bond Fund 29
Transamerica Premier Balanced Fund 30
Transamerica Premier Short-Intermediate
Government Fund 32
Transamerica Premier Cash Reserve Fund 33
Financial Statements
Statements of Assets and Liabilities 34
Statements of Operations 35
Statements of Changes in Net Assets 36
Financial Highlights 38
Notes to Financial Statements 42
#
Investment Restrictions
Investment Restrictions
Investment restrictions numbered 1 through 10 below have been adopted by the
Company as fundamental policies of the Funds. Under the Investment Company Act
of 1940, as amended (the "1940 Act"), a fundamental policy may not be changed
with respect to a Fund without the vote of a majority of the outstanding voting
securities (as defined in the 1940 Act) of the Fund. Each Fund will operate as a
"diversified company" within the meaning of the 1940 Act. Investment
restrictions 11 through 16 may be changed by a vote of the Board of Directors of
the Company (the "Board") at any time. 1. Borrowing Each Fund may borrow from
banks for temporary or emergency (not leveraging) purposes, including the
meeting of redemption requests and cash payments of dividends and distributions
that might otherwise require the untimely disposition of securities, in an
amount not to exceed 33-1\3% of the value of the Fund's total assets (including
the amount borrowed) valued at market less liabilities (not including the amount
borrowed) at the time the borrowing is made. Whenever borrowings, not including
reverse repurchase agreements, of 5% or more of a Fund's total assets are
outstanding, the Fund will not make any additional investments. 2. Lending No
Fund may lend its assets or money to other persons, except through (a)
purchasing debt obligations, (b) lending securities in an amount not to exceed
331/3% of the Fund's assets taken at market value, (c) entering into repurchase
agreements (d) trading in financial futures contracts, index futures contracts,
securities indexes and options on financial futures contracts, options on index
futures contracts, options on securities and options on securities indexes and
(e) entering into variable rate demand notes. 3. 5% Fund Rule No Fund may
purchase securities (other than government securities) of any issuer if, as a
result of the purchase, more than 5% of the Fund's total assets would be
invested in the securities of the issuer, except that up to 25% of the value of
the total assets of each Fund, other than the Transamerica Premier Cash Reserve
Fund, may be invested without regard to this limitation. All securities of a
foreign government and its agencies will be treated as a single issuer for
purposes of this restriction. Transamerica Premier Cash Reserve Fund may invest
more than 5% of the Fund's total assets, but not more than 25% of the Fund's
total assets, in the securities of one issuer for a period not to exceed three
business days. 4. 10% Issuer Rule No Fund may purchase more than 10% of the
voting securities of any one issuer, or more than 10% of the outstanding
securities of any class of issuer, except that (a) this limitation is not
applicable to a Fund's investments in government securities and (b) up to 25% of
the value of the assets of a Fund may be invested without regard to these 10%
limitations. All securities of a foreign government and its agencies will be
treated as a single issuer for purposes of this restriction. 5. 25% Industry
Rule No Fund may invest more than 25% of the value of its total assets in
securities issued by companies engaged in any one industry, including
non-domestic banks or any foreign government. This limitation does not apply to
securities issued or guaranteed by the United States government, its agencies or
instrumentalities. For the Transamerica Premier Cash Reserve Fund, investments
in the following are not subject to the 25% limitation: repurchase agreements
and securities loans collateralized by United States government securities,
certificates of deposit, bankers' acceptances, and obligations (other than
commercial paper) issued or guaranteed by United States banks and United States
branches of foreign banks. 6. Underwriting No Fund may underwrite any issue of
securities, except to the extent that the sale of securities in accordance with
the Fund's investment objective, policies and limitations may be deemed to be an
underwriting, and except that the Fund may acquire securities under
circumstances in which, if the securities were sold, the Fund might be deemed to
be an underwriter for purposes of the Securities Act of 1933, as amended. 7.
Real Estate No Fund may purchase or sell real estate or real estate limited
partnership interests, or invest in oil, gas or mineral leases, or mineral
exploration or development programs, except that a Fund may (a) invest in
securities secured by real estate, mortgages or interests in real estate or
mortgages, (b) purchase securities issued by companies that invest or deal in
real estate, mortgages or interests in real estate or mortgages, (c) engage in
the purchase and sale of real estate as necessary to provide it with an office
for the transaction of business or (d) acquire real estate or interests in real
estate securing an issuer's obligations, in the event of a default by that
issuer. 8. Short Sales No Fund may make short sales of securities or maintain a
short position, unless at all times when a short position is open, the Fund owns
an equal amount of the securities or securities convertible into or exchangeable
for, without payment of any further consideration, securities of the same issue
as, and equal in amount to, the securities sold short. 9. Margin Purchases No
Fund may purchase securities on margin, except that a Fund may obtain any
short-term credits necessary for the clearance of purchases and sales of
securities. For purposes of this restriction, the deposit or payment of initial
or variation margin in connection with futures contracts, financial futures
contracts or related options, and options on securities, and options on
securities indexes will not be deemed to be a purchase of securities on margin
by a Fund. 10. Commodities No Fund may invest in commodities, except that each
Fund (other than the Transamerica Premier Cash Reserve Fund) may invest in
futures contracts (including financial futures contracts or securities index
futures contracts) and related options and other similar contracts as described
in this Statement of Additional Information and in the Prospectus. 11.
Securities of Other Investment Companies No Fund may purchase securities of
other investment companies, other than a security acquired in connection with a
merger, consolidation, acquisition, reorganization or offer of exchange and
except as permitted under the 1940 Act, if as a result of the pur chase: (a)
more than 10% of the value of the Fund's total assets would be invested in the
securities of investment companies; (b) more than 5% of the value of the Fund's
total assets would be invested in the securities of any one investment company;
or (c) the Fund would own more than 3% of the total securities of any investment
company. 12. Invest for Control No Fund may invest in companies for the purposes
of exercising control or management. 13. 3-Year Rule No Fund may purchase
securities (other than government securities) if, as a result of the purchase,
the Fund would then have more than 5% of its total assets invested in securities
of companies (including predecessors) that have been in continuous operation for
fewer than three years. This restriction will apply to the entity supplying the
revenues from which the issue is to be paid. 14. Affiliated Parties No Fund may
purchase or retain securities of any company if any of the Company's officers or
directors or any officer or director of the Investment Adviser who individually
own 1/2 of 1% of the company, together own more than 5% of the company. 15.
Warrants No Fund may purchase warrants (other than warrants acquired by the Fund
as part of a unit or attached to securities at the time of purchase) if, as a
result, the investments (valued at the lower of cost or market) would exceed 5%
of the value of the Fund's net assets of which not more than 2% of the value of
the Fund's net assets may be invested in warrants not listed on the New York
Stock Exchange, Inc. (the "NYSE") or the American Stock Exchange. For purposes
of this restriction, warrants acquired by a Fund in units or attached to
securities may be deemed to be without value. The Transamerica Premier Cash
Reserve Fund may not invest in any form of warrants. 16. Restricted and Illiquid
Securities The Funds will each not invest more than 10% of their total assets in
securities that are not registered or are offered in an exempt, non-public
offering ("restricted securities") under the Securities Act of 1933, as amended
("1933 Act"). However, such restriction will not apply to restricted securities
offered and sold to "qualified institutional buyers" under Rule 144A of the 1933
Act or to foreign securities which are offered or sold outside the United States
in accordance with Regulation S of the 1933 Act. In addition, no Fund will
invest more than 15% (10% for the Transamerica Premier Cash Reserve Fund) of its
net assets in illiquid investments, which includes most repurchase agreements
maturing in more than seven days, currency and interest rate swaps, time
deposits with a notice or demand period of more than seven days, certain
over-the-counter option contracts, participation interests in loans, securities
that are not readily marketable, and restricted securities, unless the
Investment Adviser determines, based upon a continuing review of the trading
markets and available reliable price information for the specific security, that
such restricted securities are eligible under Rule 144A and are liquid. For
purposes of this restriction, illiquid securities are securities that cannot be
disposed of by a Fund within seven days in the ordinary course of business at
approximately the amount at which the Fund has valued the securities. In no
event, will any Fund's investment in illiquid restricted securities, in the
aggregate, exceed 15% (10% for the Transamerica Premier Cash Reserve Fund) of
its assets. If through a change in values, net assets, or other circumstances,
any Fund were in a position where more than 15% of its assets were invested in
illiquid securities, it would take appropriate steps to protect liquidity. The
Board has adopted guidelines and delegated to the Investment Adviser the daily
function of determining and monitoring the liquidity of restricted securities.
The Board, however, will retain sufficient oversight and be ultimately
responsible for the determinations. When no market, dealer, or matrix quotations
are available for a security, illiquid investments are priced at fair value as
determined in good faith by a committee appointed by the Board. Since it is not
possible to predict with assurance exactly how the market for restricted
securities sold and offered under Rule 144A will develop, the Board will
carefully monitor each Fund's investments in these securities, focusing on such
important factors, among others, as valuation, liquidity, and availability of
information. To the extent that qualified institutional buyers become for a time
uninterested in purchasing these restricted securities, this investment practice
could have the effect of decreasing the level of liquidity in a Fund. The
purchase price and subsequent valuation of restricted securities normally
reflect a discount from the price at which such securities would trade if they
were not restricted, since the restriction makes them less liquid. The amount of
the discount from the prevailing market prices is expected to vary depending
upon the type of security, the character of the issuer, the party who will hear
the expenses of registering the restricted securities, and prevailing supply and
demand conditions. The Company may make commitments more restrictive than the
restrictions listed above with respect to a Fund to permit the sale of shares of
the Fund in certain states. If the Company determines that any such commitment
is no longer in the best interests of a Fund and its shareholders, the Company
will revoke the commitment by terminating the sale of shares of the Fund in the
state involved or may otherwise modify its commitment based on a change in the
state's restrictions. The percentage limitations in the restrictions listed
above apply at the time of purchases of securities. Description of Corporate
Bond Ratings Moody's Investors Service, Inc. and Standard and Poor's Corporation
are two prominent independent rating agencies that rate the quality of bonds.
Following are expanded explanations of the ratings shown in the Prospectus.
Moody's Investors Service, Inc. Aaa: Bonds with this rating are judged to be of
the best quality. They carry the smallest degree of investment risk. Interest
payments are protected by a large or exceptionally stable margin and principal
is secure. Aa: Bonds with this rating are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or fluctuation of protective
elements may be of greater amplitude. A: Bonds with this rating possess many
favorable investment attributes and are to be considered as upper medium grade
obligations. Factors giving security to principal and interest are considered
adequate, but elements may be present which suggest a susceptibility to
impairment sometime in the future. Baa: Bonds with this rating are considered as
medium grade obligations, i.e., they are neither highly protected nor poorly
secured. Interest payments and principal security appear adequate for the
present but certain protective elements may be lacking or may be
characteristically unreliable over any great length of time. Such bonds lack
outstanding investment characteristics and in fact have speculative
characteristics as well. Ba: Bonds with this rating are judged to have
speculative elements; their future cannot be considered as well-assured. Often
the protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the future.
Uncertainty of position characterizes bonds in this class. B: Bonds with this
rating generally lack characteristics of desirable investments. Assurance of
interest and principal payments or of maintenance of other terms of the contract
over any long period of time may be small. Caa: Bonds with this rating are of
poor standing. Such issues may be in default or there may be present elements of
danger with respect to principal or interest. Ca: Bonds with this rating
represent obligations which are speculative in a high degree. Such issues are
often in default or have other marked shortcomings. C: Bonds with this rating
are the lowest rated class of bonds. Issues so rated can be regarded as having
extremely poor prospects of ever attaining any real investment standing. Moody's
applies numerical modifiers 1, 2 and 3 in each generic rating classification
from Aa through B in its corporate bond rating system. The modifier 1 indicates
that the security ranks in the higher end of its generic rating category; the
modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that the
issue ranks in the lower end of its generic rating category. Generally,
investment-grade debt securities are those rated Baa3 or better by Moody's.
Standard & Poor's Corporation AAA: This rating is the highest rating assigned by
Standard & Poor's. Capacity to pay interest and repay principal is very strong.
AA: This rating indicates a very strong capacity to pay interest and repay
principal and differs from the higher rated issues only in small degree. A: This
rating indicates a strong capacity to pay interest and repay principal, although
it is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than debt in higher rated categories. BBB:
This rating indicates an adequate capacity to pay interest and repay principal.
Whereas it normally exhibits adequate protection parameters, adverse economic
conditions or changing circumstances are more likely to lead to a weakened
capacity to pay interest and repay principal for debt in this category than in
higher rated categories. BB, B, CCC, CC: These ratings indicate, on balance, a
predominantly speculative capacity of the issuer to pay interest and repay
principal in accordance with the terms of the obligation. BB indicates the
lowest degree of speculation and CC the highest degree of speculation. While
such debt will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major risk exposures to adverse
conditions. C: This rating is reserved for income bonds on which no interest is
being paid. D: This rating indicates debt in default, and payment of interest
and/or repayment of principal are in arrears. The ratings from "AA" to "B" may
be modified by the addition of a plus or minus sign to show relative standing
within the major rating categories, for example A or B+. Generally,
investment-grade debt securities are those rated BBB- or better by Standard &
Poor's. Description of Fixed-Income Instruments U.S. Government Obligations
Securities issued or guaranteed as to principal and interest by the United
States government include a variety of Treasury securities, which differ in
their interest rates, maturities and times of issuance. Treasury Bills have a
maturity of one year or less; Treasury Notes have maturities of one to ten
years; and Treasury Bonds can be issued with any maturity period but generally
have a maturity of greater than ten years. Agencies of the United States
government which issue or guarantee obligations include, among others, the
Export-Import Bank of the United States, Farmers Home Administration, Federal
Housing Administration, government National Mortgage Association, Maritime
Administration, Small Business Administration and The Tennessee Valley
Authority. Obligations of instrumentalities of the United States government
include securities issued or guaranteed by, among others, banks of the Farm
Credit System, the Federal National Mortgage Association, Federal Home Loan
Banks, Federal Home Loan Mortgage Corporation, Student Loan Marketing
Association, Federal Intermediate Credit Banks, Federal Land Banks, Banks for
Cooperatives, and the U.S. Postal Service. Some of these securities are
supported by the full faith and credit of the U.S. Treasury; others are
supported by the right of the issuer to borrow from the Treasury, while still
others are supported only by the credit of the instrumentality. Certificates of
Deposit Certificates of deposit are generally short-term, interest-bearing
negotiable certificates issued by banks, savings and loan associations or
savings banks against funds deposited in the issuing institution. Time Deposits
Time deposits are deposits in a bank or other financial institution for a
specified period of time at a fixed interest rate for which a negotiable
certificate is not received. Certain time deposits may be considered illiquid.
Bankers' Acceptance A bankers' acceptance is a draft drawn on a commercial bank
by a borrower usually in connection with an international commercial transaction
(to finance the import, export, transfer or storage of goods). The borrower is
liable for payment as well as the bank, which unconditionally guarantees to pay
the draft at its face amount on the maturity date. Most acceptances have
maturities of six months or less and are traded in secondary markets prior to
maturity. Commercial Paper Commercial paper refers to short-term, unsecured
promissory notes issued by corporations to finance short-term credit needs.
Commercial paper is usually sold on a discount basis and has a maturity at the
time of issuance not exceeding 270 days.
Variable Rate, Floating Rate, or Variable Amount Securities Variable rate,
floating rate, or variable amount securities are short-term unsecured promissory
notes issued by corporations to finance short-term credit needs. These are
interest-bearing notes on which the interest rate generally fluctuates on a
scheduled basis. Corporate Debt Securities Corporate debt securities are debt
issued by a corporation that pays interest and principal to the holders at
specified times. Asset-Backed Securities Asset-backed securities are securities
which represent an undivided fractional interest in a trust whose assets
generally consist of mortgages, motor vehicle retail installment sales
contracts, or other consumer-based loans. Participation Interests in Loans A
participation interest in a loan entitles the purchaser to receive a portion of
principal and interest payments due on a commercial loan extended by a bank to a
specified company. The purchaser of such an interest has no recourse against the
bank if payments of principal and interest are not made by the borrower and
generally relies on the bank to administer and enforce the loan's terms.
International Organization Obligations International organization obligations
include obligations of those organizations designated or supported by U.S. or
foreign government agencies to promote economic reconstruction and development
or international banking, and related government agencies. Examples include the
International Bank for Reconstruction and Development (the World Bank), the
European Coal and Steel Community, the Asian Development Bank, and the
InterAmerican Development Bank. Custody Receipts A Fund may acquire custody
receipts in connection with securities issued or guaranteed as to principal and
interest by the U.S. government, its agencies, authorities or instrumentalities.
Such custody receipts evidence ownership of future interest payments, principal
payments or both on certain notes or bonds issued by the U.S. government, its
agencies, authorities or instrumentalities. These custody receipts are known by
various names, including "Treasury Receipts," "Treasury Investors Growth
Receipts" ("TIGRs"), and "Certificates of Accrual on Treasury Securities"
("CATS"). For certain securities law purposes, custody receipts are not
considered U.S. government securities. Pass-Through Securities The Funds may
invest in mortgage pass-through securities such as Government National Mortgage
Association ("GNMA") certificates or Federal National Mortgage Association
("FNMA") and other mortgage-backed obligations, or modified pass-through
securities such as collateralized mortgage obligations issued by various
financial institutions. In connection with these investments, early repayment of
investment principal arising from prepayments of principal on the underlying
mortgage loans due to the sale of the underlying property, the refinancing of
the loan, or foreclosure may expose the Fund to a lower rate of return upon
reinvestment of the principal. Prepayment rates vary widely and may be affected
by changes in market interest rates. In periods of falling interest rates, the
rate of prepayment tends to increase, thereby shortening the actual average life
of the mortgage-related security. Conversely, when interest rates are rising,
the rate of prepayment tends to decrease, thereby lengthening the actual average
life of the mortgage-related security. Accordingly, it is not possible to
accurately predict the average life of a particular pool of pass-through
securities. Reinvestment of prepayments may occur at higher or lower rates than
the original yield on the certificates. Therefore, the actual maturity and
realized yield on pass-through or modified pass-through mortgage-related
securities will vary based upon the prepayment experience of the underlying pool
of mortgages. For purposes of calculating the average life of the assets of the
relevant Fund, the maturity of each of these securities will be the average life
of such securities based on the most recent or estimated annual prepayment rate.
Investment Procedures and Risk Considerations for the Funds High Yield ("Junk")
Bonds High-yield bonds (commonly called "junk" bonds) are lower rated bonds that
involve 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 happened to a bond in a Fund, the Fund would lose some of its income, and
could expect a decline in the market value of the securities affected. So the
Investment Adviser needs 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, 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 may have trouble
making principal and interest payments, meeting projected business goals, and
obtaining additional financing. Junk bonds' values will generally decrease in a
rising interest rate market.
Junk bonds may contain "call" provisions, which enable the issuers of the
bond to redeem the bond at will. If the issuer exercises this privilege during a
declining interest rate market, the Fund would replace the bond most likely with
a lower yield bond, resulting in a lower return for investors.
Periods of economic or political uncertainty and change can create some
volatility for junk bonds. Since the last major economic recession, there has
been a substantial increase in the use of high-yield debt securities to fund
highly leveraged corporate acquisitions and restructurings. Past experience with
high-yield securities in a prolonged economic downturn may not provide an
accurate indication of future performance during such periods. Lower rated
securities may also be harder to sell than higher rate securities because of bad
publicity and investor perceptions of this market, as well as new or proposed
laws dealing with high yield securities. For many junk bonds, there is no
established retail secondary market. As a result, it may be difficult fo r the
Investment Adviser to accurately value the bonds because they cannot rely on
available, objective data.
Each Fund 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. Since these ratings do not consider factors relevant to each issue, and
may not be updated regularly, the Investment Adviser may treat high yield
securities as unrated debt.
Because of the size and perceived demand of the issue, among other factors,
certain municipalities may decide not to pay the cost of getting a rating for
their bonds. The Investment Adviser will 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. Restricted and Illiquid Securities A Fund may purchase certain restricted
securities of U.S. issuers (those that are not registered under the Securities
Act of 1933, as amended (the "1933 Act") but can be offered and sold to
"qualified institutional buyers" under Rule 144A of that Act) and limited
amounts of illiquid investments, including illiquid restricted securities.
Illiquid investments include many restricted securities, repurchase
agreements that mature in more than seven days, fixed time deposits that mature
in more than seven days and participation interests in loans.
Certain repurchase agreements which provide for settlement in more than
seven days, however, can be liquidated before the nominal fixed term of seven
days or less notice. The Investment Adviser will consider such repurchase
agreements as liquid. Likewise, restricted securities (including commercial
paper issued pursuant to Section 4(2) of the 1933 Act) that the Board or the
Investment Adviser have determined to be liquid will be treated as such.
The SEC staff has taken the position that fixed time deposits maturing in
more than seven days that cannot be traded on a secondary market and
participation interests in loans are illiquid and not readily marketable. A
considerable amount of time may elapse between a Fund's decision to dispose of
restricted or illiquid securities and the time which such Fund is able to
dispose of them, during which time the value of such securities (and therefore
the value of the Fund's shares held by an account) could decline. Derivatives
Each Fund, except for Transamerica Premier Cash Reserve Fund and Transamerica
Premier Equity Fund, may use options, futures, forward contracts, and swap
transactions ("derivatives"). The Funds may purchase and write, call or put
options on securities or on indexes ("options") and may 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.
By investing in derivatives, the Investment Adviser may seek to protect a
Fund against potentially unfavorable movements in interest rates or securities'
prices, or attempt to adjust a Fund's exposure to changing securities prices,
interest rates, or other factors that affect securities values. This is done in
an attempt to reduce a Fund's overall investment risk. Although it will not
generally be a significant part of a Fund's strategies, the Adviser may also use
derivatives to enhance returns. Opportuni ties to enhance returns arise when the
derivative does not reflect the fair value of the underlying securities. None of
the Funds will use derivatives for leverage.
Risks in the use of derivatives include, in addition to those referred to
above: (1) 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; (2) imperfect correlation between the price of
derivatives and the movements of the securities' prices or interest rates being
hedged; (3) the possible absence of a liquid secondary market for any particular
derivative at any time (some derivatives are not actively traded but are custom
designed to meet the investment needs of a narrow group of institutional
investors and can become illiquid if the needs of that group of investors
change); (4) the potential loss if the counterparty to the transaction does not
perform as promised; and (5) the possible need to defer closing out certain
positions to avoid adverse tax consequences.
The Transamerica Premier Bond Fund, Transamerica Premier Short-Intermediate
Government Fund, and Transamerica Premier Balanced Fund may invest in
derivatives with respect to less than 20% of each Fund's assets; Transamerica
Premier Index Fund may invest with respect to no more than 35% of its assets.
The Board will closely monitor the Investment Adviser's use of derivatives in
each of the Funds to assure they are used in accordance with the investment
objectives of each Fund. Options on Securities and Securities Indexes A Fund may
write (i.e., sell) covered call and put options on any securities in which it
may invest. A call option written by a Fund obligates the Fund to sell specified
securities to the holder of the option at a specified price if the option is
exercised at any time before the expiration date. All call options written by a
Fund are covered, which means that the Fund will own the securities subject to
the option so long as the option is outstanding. A Fund's purpose in writing
covered call options is to realize greater income than would be realized on
securities transactions alone. However, by writing the call option a Fund might
forgo the opportunity to profit from an increase in the market price of the
underlying security.
A put option written by a Fund would obligate the Fund to purchase specified
securities from the option holder at a specified price if the option is
exercised at any time before the expiration date. All put options written by a
Fund would be covered, which means that such Fund would have deposited with its
custodian cash or liquid high grade debt securities with a value at least equal
to the exercise price of the put option. The purpose of writing such options is
to generate additional income for the Fund. However, in return for the option
premium, a Fund accepts the risk that it might be required to purchase the
underlying securities at a price in excess of the securities' market value at
the time of purchase.
In addition, a written call option or put option may be covered by
maintaining cash or liquid high grade debt securities in a segregated account
with its custodian or by purchasing an offsetting option or any other option
which, by virtue of its exercise price or otherwise, reduces a Fund's net
exposure on its written option position.
A Fund may also write (sell) covered call and put options on any securities
index composed of securities in which it may invest. Options on securities
indexes are similar to options on securities, except that the exercise of
securities index options requires cash payments and does not involve the actual
purchase or sale of securities. In addition, securities index options are
designed to reflect price fluctuations in a group of securities or segment of
the securities market rather than price fluctuations in a single security.
A Fund may cover call options on a securities index by owning securities
whose price changes are expected to be similar to those of the underlying index,
or by having an absolute and immediate right to acquire such securities without
additional cash consideration (or for additional cash consideration held in a
segregated account by its custodian) upon conversion or exchange of other
securities in the Fund. A Fund may cover call and put options on a securities
index by maintaining cash or liquid high grade debt securities with a value
equal to the exercise price in a segregated account with its custodian.
A Fund may terminate its obligations under an exchange traded call or put
option by purchasing an option identical to the one it has written. Obligations
under over-the-counter options may be terminated only by entering into an
offsetting transaction with the counterparty to such option. Such purchases are
referred to as "closing purchase" transactions.
A Fund may purchase put and call options on any securities in which it may
invest or options on any securities index based on securities in which it may
invest. A Fund would also be able to enter into closing sale transactions in
order to realize gains or minimize losses on options it had purchased.
A Fund would normally purchase call options in anticipation of an increase
in the market value of securities of the type in which it may invest. The
purchase of a call option would entitle a Fund, in return for the premium paid,
to purchase specified securities at a specified price during the option period.
A Fund would ordinarily realize a gain if, during the option period, the value
of such securities exceeded the sum of the exercise price, the premium paid and
transaction costs; otherwise the Fund would realize a loss on the purchase of
the call option.
A Fund would normally purchase put options in anticipation of a decline in
the market value of its securities ("protective puts") or in securities in which
it may invest. The purchase of a put option would entitle a Fund, in exchange
for the premium paid, to sell specified securities at a specified price during
the option period. The purchase of protective puts is designed to offset or
hedge against a decline in the market value of a Fund's securities. Put options
may also be purchased by a Fund for the purpose of affirmatively benefiting from
a decline in the price of securities which it does not own. A Fund would
ordinarily realize a gain if, during the option period, the value of the
underlying securities decreased below the exercise price sufficiently to cover
the premium and transaction costs; otherwise such a Fund would realize a loss on
the purchase of the put option.
A Fund would purchase put and call options on securities indexes for the
same purposes as it would purchase options on individual securities. Risks
Associated with Options Transactions There is no assurance that a liquid
secondary market on an options exchange will exist for any particular
exchange-traded option or at any particular time. If a Fund is unable to affect
a closing purchase transaction with respect to covered options it has written,
the Fund will not be able to sell the underlying securities or dispose of assets
held in a segregated account until the options expire or are exercised.
Similarly, if a Fund is unable to effect a closing sale transaction with respect
to options it has purchased, it would have to exercise the options in order to
realize any profit and will incur transaction costs upon the purchase or sale of
underlying securities.
Reasons for the absence of a liquid secondary market on an exchange include
the following: (i) there may be insufficient trading interest in certain
options; (ii) restrictions may be imposed by an exchange on opening transactions
or closing transactions or both; (iii) trading halts, suspensions or other
restrictions may be imposed with respect to particular classes or series of
options; (iv) unusual or unforeseen circumstances may interrupt normal
operations on an exchange; (v) the facilities of an exchange or the Options
Clearing Corporation may not at all times be adequate to handle current trading
volume; or (vi) one or more exchanges could, for economic or other reasons,
decide or be compelled at some future date to discontinue the trading of options
(or a particular class or series of options), in which event the secondary
market on that exchange (or in that class or series of options) would cease to
exist, although outstanding options on that exchange that had been issued by the
Options Clearing Corporation as a result of trades on that exchange would
continue to be exercisable in accordance with their terms.
A Fund may purchase and sell both options that are traded on U.S., United
Kingdom, and other exchanges and options traded over-the-counter with broker-d
ealers who make markets in these options. The ability to terminate over-the-co
unter options is more limited than with exchange-traded options and may involve
the risk that broker-dealers participating in such transactions will not fulfill
their obligations. Until such time as the staff of the SEC changes its position,
a Fund will treat purchased over-the-counter options and all assets used to
cover written over-the-counter options as illiquid securities, except that with
respect to options written with primary dealers in U.S. government securities
pursuant to an agreement requiring a closing purchase transaction at a formula
price, the amount of illiquid securities may be calculated with reference to the
formula.
Transactions by a Fund in options on securities and securities indexes will
be subject to limitations established by each of the exchanges, boards of trade
or other trading facilities governing the maximum number of options in each
class which may be written or purchased by a single investor or group of
investors acting in concert. Thus, the number of options which a Fund may write
or purchase may be affected by options written or purchased by other investment
advisory clients of the Investment Adviser of the Funds. An exchange, board of
trade or other trading facility may order the liquidations of positions found to
be in excess of these limits, and it may impose certain other sanctions.
The writing and purchase of options is a highly specialized activity which
involves investment techniques and risks different from those associated with
ordinary securities transactions. The successful use of protective puts for
hedging purposes depends in part on an ability to anticipate future price
fluctuations and the degree of correlation between the options and securities
markets. Futures Contracts and Options on Futures Contracts A Fund may purchase
and sell futures contracts and may also purchase and write options on futures
contracts. A Fund may purchase and sell futures contracts based on various
securities (such as U.S. government securities), securities indexes, and other
financial instruments and indexes. A Fund will engage in futures or related
options transactions only for bona fide hedging purposes as defined below or to
increase total returns to the extent permitted by regulations of the Commodity
Futures Trading Commission ("CFTC"). All futures contracts entered into by a
Fund are traded on U.S. exchanges or boards of trade that are licensed and
regulated by the CFTC.
Futures Contracts A futures contract may generally be described as an
agreement between two parties to buy or sell particular financial instruments
for an agreed price during a designated month (or to deliver the final cash
settlement price, in the case of a contract relating to an index or otherwise
not calling for physical delivery at the end of trading in the contract).
When interest rates are rising or securities prices are falling, a Fund can
seek to offset a decline in the value of its current securities through the sale
of futures contracts. When rates are falling or prices are rising, a Fund,
through the purchase of futures contracts, can attempt to secure better rates or
prices than might later be available in the market when it effects anticipated
purchases. The Transamerica Premier Index Fund will use options and futures
contracts only to achieve its performance objective of matching the return on
the S&P 500.
Positions taken in the futures markets are not normally held to maturity,
but are instead liquidated through offsetting transactions which may result in a
profit or a loss. While a Fund's futures contracts on securities will usually be
liquidated in this manner, it may instead make or take delivery of the
underlying securities whenever it appears economically advantageous for a Fund
to do so. A clearing corporation associated with the exchange on which futures
on securities are traded guarantees that, if still open, the sale or purchase
will be performed on the settlement date.
Hedging Strategies Hedging by use of futures contracts seeks to establish
more certainty than would otherwise be possible in the effective price or rate
of return on securities that a Fund owns or proposes to acquire. A Fund may, for
example, take a "short" position in the futures market by selling futures
contracts in order to hedge against an anticipated rise in interest rates or a
decline in market prices that would adversely affect the value of the Fund's
securities. Such futures contracts may include contracts for the future delivery
of securities held by the Fund or securities with characteristics similar to
those of a Fund's securities.
If, in the opinion of the Investment Adviser, there is a sufficient degree
of correlation between price trends for a Fund's securities and futures
contracts based on other financial instruments, securities indexes or other
indexes, the Fund may also enter into such futures contracts as part of its
hedging strategy. Although under some circumstances prices of a Fund's
securities may be more or less volatile than prices of such futures contracts,
the Investment Adviser will attempt to estimate the extent of this difference in
volatility based on historical patterns and to compensate for it by having a
Fund enter into a greater or lesser number of futures contracts or by attempting
to achieve only a partial hedge against price changes affecting the Fund's
securities. When hedging of this character is successful, any depreciation in
the value of the Fund's securities will be substantially offset by appreciation
in the value of the futures position. On the other hand, any unanticipated
appreciation in the value of the Fund's securities would be substantially offset
by a decline in the value of the futures position.
On other occasions, a Fund may take a "long" position by purchasing such
futures contracts. This would be done, for example, when a Fund anticipates the
subsequent purchase of particular securities when it has the necessary cash, but
expects the prices or interest rates then available in the applicable market to
be less favorable than prices or rates that are currently available.
Options on Futures Contracts The acquisition of put and call options on
futures contracts will give a Fund the right (but not the obligation), for a
specified price, to sell or to purchase, respectively, the underlying futures
contract at any time during the option period. As the purchaser of an option on
a futures contract, a Fund obtains the benefit of the futures position if prices
move in a favorable direction but limits its risk of loss in the event of an
unfavorable price movement to the loss of the option premium and transaction
costs.
The writing of a call option on a futures contract generates a premium which
may partially offset a decline in the value of a Fund's assets. By writing a
call option, a Fund becomes obligated, in exchange for the premium, to sell a
futures contract, which may have a value higher than the exercise price.
Conversely, the writing of a put option on a futures contract generates a
premium, which may partially offset an increase in the price of securities that
a Fund intends to purchase. However, a Fund becomes obligated to purchase a
futures contract, which may have a value lower than the exercise price. Thus,
the loss incurred by a Fund in writing options on futures is potentially
unlimited and may exceed the amount of the premium received. A Fund will
increase transaction costs in connection with the writing of options on futures.
The holder or writer of an option on a futures contract may terminate its
position by selling or purchasing an offsetting option on the same series. There
is no guarantee that such closing transactions can be effected. A Fund's ability
to establish and close out positions on such options will be subject to the
development and maintenance of a liquid market.
Other Considerations Where permitted, a Fund will engage in futures
transactions and in related options transactions only for bona fide hedging or
to increase total return to the extent permitted by CFTC regulations. A Fund
will determine that the price fluctuations in the futures contracts and options
on futures used for hedging purposes are substantially related to price
fluctuations in securities held by the Fund or which it expects to purchase.
Except as stated below, each Fund's futures transactions will be entered into
for traditional hedging purposes, i.e., futures contracts will be sold to
protect against a decline in the price of securities that the Fund owns, or
futures contracts will be purchased to protect the Fund against an increase in
the price of securities it intends to purchase. As evidence of this hedging
intent, a Fund expects that on 75% or more of the occasions on which they take a
long futures or option position (involving the purchase of futures contracts),
that Fund will have purchased, or will be in the process of purchasing,
equivalent amounts of related securities in the cash market at the time when the
futures or option position is closed out. However, in particular cases, when it
is economically advantageous for a Fund to do so, a long futures position may be
terminated or an option may expire without the corresponding purchase of
securities or other assets.
As an alternative to literal compliance with the bona fide hedging
definition, a CFTC regulation permits a Fund to elect to comply with a different
test, under which the aggregate initial margin and premiums required to
establish positions in futures contracts and options on futures for the purpose
of increasing total return, will not exceed 5% of the Fund's net asset value,
after taking into account unrealized profits and losses on any such positions
and excluding the amount by which such options were in-the-money at the time of
purchase. As permitted, each Fund will engage in transactions in futures
contracts and in related options transactions only to the extent such
transactions are consistent with the requirements of the Internal Revenue Code
of 1986, as amended (the "Code") for maintaining its qualification as a
regulated investment company for federal income tax purposes.
Transactions in futures contracts and options on futures involve brokerage
costs, require margin deposits and, in the case of contracts and options
obligating a Fund to purchase securities or currencies, require the Fund to
segregate with its custodian liquid high grade debt securities in an amount
equal to the underlying value of such contracts and options.
While transactions in futures contracts and options on futures may reduce
certain risks, such transactions themselves entail certain other risks. Thus,
unanticipated changes in interest rates or securities prices may result in a
poorer overall performance for a Fund than if it had not entered into any
futures contracts or options transactions. In the event of an imperfect
correlation between a futures position and the position which is intended to be
protected, the desired protection may not be obtained and a Fund may be exposed
to risk of loss.
Perfect correlation between a Fund's futures positions and current positions
may be difficult to achieve because no futures contracts based on individual
equity securities are currently available. The only futures contracts available
to these Funds for hedging purposes are various futures on U.S. government
securities and securities indexes.
Interest Rate Swaps A Fund may enter into interest rate swaps for hedging
purposes and non-hedging purposes. Since swaps are entered into for good faith
hedging purposes or are offset by a segregated account as described below, the
Investment Adviser believes that swaps do not constitute senior securities as
defined in the 1940 Act and, accordingly, will not treat them as being subject
to the Fund's borrowing restrictions. The net amount of the excess, if any, of a
Fund's obligations over its "entitlement" with respect to each interest rate
swap will be accrued on a daily basis and an amount of cash or liquid high grade
debt securities (i.e., securities rated in one of the top three ratings
categories by Moody's or S&P, or, if unrated, deemed by the Investment Adviser
to be of comparable credit quality) having an aggregate net asset value at least
equal to such accrued excess will be maintained in a segregated account by the
Fund's custodian. A Fund will not enter into any interest rate swap unless the
credit quality of the unsecured senior debt or the claims-paying ability of the
other party thereto is considered to be investment grade by the Investment
Adviser. If there is a default by the other party to such a transaction, a Fund
will have contractual remedies pursuant to the agreement. The swap market has
grown substantially in recent years with a large number of banks and investment
banking firms acting both as principals and as agents utilizing standardized
swap documentation. As a result, the swap market has become relatively liquid in
comparison with the markets for other similar instruments which are traded in
the interbank market. Swap Transactions The Funds may, to the extent permitted
by the SEC, enter into privately negotiated "swap" transactions with other
financial institutions in order to take advantage of investment opportunities
generally not available in public markets. In general, these transactions
involve "swapping" a return based on certain securities, instruments, or
financial indexes with another party, such as a commercial bank, in exchange for
a return based on different securities, instruments, or financial indexes.
By entering into swap transactions, a Fund may be able to protect the value
of a portion of its securities against declines in market value. A Fund may also
enter into swap transactions to facilitate implementation of allocation
strategies between different market segments or to take advantage of market
opportunities which may arise from time to time. A Fund may be able to enhance
its overall performance if the return offered by the other party to the swap
transaction exceeds the return swapped by the Fund. However, there can be no
assurance that the return a Fund receives from the counterparty to the swap
transaction will exceed the return it swaps to that party.
While a Fund will only enter into swap transactions with counterparties it
considers creditworthy (and will monitor the creditworthiness of parties with
which it enters into swap transactions), a risk inherent in swap transactions is
that the other party to the transaction may default on its obligations under the
swap agreement. If the other party to the swap transaction defaults on its
obligations, a Fund would be limited to contractual remedies under the swap
agreement. There can be no assurance that a Fund will succeed when pursuing its
contractual remedies. To minimize a Fund's exposure in the event of default, the
Funds will usually enter into swap transactions on a net basis (i.e., the
parties to the transaction will net the payments payable to each other before
such payments are made). When a Fund enters into swap transactions on a net
basis, the net amount of the excess, if any, of the Fund's obligations over its
entitlements with respect to each such swap agreement will be accrued on a daily
basis and an amount of liquid assets having an aggregate market value at least
equal to the accrued excess will be segregated by the Fund's custodian. To the
extent a Fund enters into swap transactions other than on a net basis, the
amount segregated will be the full amount of the Fund's obligations, if any,
with respect to each such swap agreement, accrued on a daily basis. See
"Segregated Funds" below.
Swap agreements are considered to be illiquid by the SEC staff and will
be subject to the limitations on illiquid investments. See "Restricted and
Illiquid Securities" on page 4.
To the extent that there is an imperfect correlation between the return a
Fund is obligated to swap and the securities or instruments representing such
return, the value of the swap transaction may be adversely affected. A Fund
therefore will not enter into a swap transaction unless it owns or has the right
to acquire the securities or instruments representative of the return it is
obligated to swap with the counterparty to the swap transaction. It is not the
intention of the Funds to engage in swap transactions in a speculative manner,
but rather primarily to hedge or manage the risks associated with assets held in
a Fund, or to facilitate the implementation of strategies of purchasing and
selling assets for a Fund. Foreign Securities All Funds, except the Transamerica
Premier Index Fund and the Transamerica Premier Short-Intermediate Government
Fund, can invest in foreign securities. The foreign equity investments for the
Transamerica Premier Equity Fund and the Transamerica Premier Balanced Fund will
be limited to the purchase of American Depositary Receipts ("ADR's"). Foreign
securities, other than ADR's, will be held in custody by State Street London
Limited, who will handle transactions with the transnational depositories
Euroclear and Cedel. Segregated Accounts In connection with when-issued
securities, firm commitment agreements, futures, the writing of options, and
certain other transactions in which a Fund incurs an obligation to make payments
in the future, a Fund may be required to segregate assets with its custodian in
amounts sufficient to settle the transaction. To the extent required, such
segregated assets will consist of liquid assets such as cash, United States
government securities or other appropriate high grade, short-term debt
obligations as may be permitted by law. Purchase of "When-Issued" Securities The
Funds may enter into firm commitment agreements for the purchase of securities
on a specified future date. Thus, the Funds may purchase, for example, new
issues of fixed-income instruments on a "when-issued" basis, whereby the payment
obligation, or yield to maturity, or coupon rate on the instruments may not be
fixed at the time of the transaction. In addition, the Funds may invest in
asset-backed securities on a delayed delivery basis. This reduces the Funds'
risk of early repayment of principal, but exposes the Funds to some additional
risk that the transaction will not be consummated.
When the Funds enter into firm commitment agreements, liability for the
purchase price and the rights and risks of ownership of the securities accrue to
the Funds at the time they become obligated to purchase such securities,
although delivery and payment occur at a later date. Accordingly, if the market
price of the security should decline, the effect of the agreement would be to
obligate the Funds to purchase the security at a price above the current market
price on the date of delivery and payment. During the time the Funds are
obligated to purchase such securities they will be required to segregate assets.
See "Segregated Accounts," on this page. A Fund will not purchase securities on
a "when-issued" basis if, as a result, more than 15% of the Fund's net assets
would be so invested. Lending of Securities Subject to investment restriction
number 2 titled "Lending" on page 3 (relating to loans of securities), a Fund
may lend its securities to brokers and dealers that are not affiliated with the
Investment Adviser, are registered with the Commission and are members of the
NASD, and also to certain other financial institutions. All loans will be fully
collateralized. In connection with the lending of its securities, a Fund will
receive as collateral cash, securities issued or guaranteed by the United States
government (i.e., Treasury securities), or other collateral permitted by
applicable law, which at all times while the loan is outstanding will be
maintained in amounts equal to at least 102% of the current market value of the
loaned securities, or such lesser percentage as may be permitted by applicable
law, as reviewed daily. The Fund lending its securities will receive amounts
equal to the interest or dividends paid on the securities loaned and in addition
will expect to receive a portion of the income generated by the short-term
investment of cash received as collateral or, alternatively, where securities or
a letter of credit are used as collateral, a lending fee paid directly to the
Fund by the borrower of the securities. Such loans will be terminable by the
Fund at any time and will not be made to affiliates of the Investment Adviser. A
Fund may terminate a loan of securities in order to regain record ownership of,
and to exercise beneficial rights related to, the loaned securities, including
but not necessarily limited to voting or subscription rights, and may, in the
exercise of its fiduciary duties, terminate a loan in the event that a vote of
holders of those securities is required on a material matter. The Fund may pay
reasonable fees to persons unaffiliated with the Fund for services or for
arranging such loans. Loans of securities will be made only to firms deemed
creditworthy. As with any extension of credit, however, there are risks of delay
in recovering the loaned securities, should the borrower of securities default,
become the subject of bankruptcy proceedings, or otherwise be unable to fulfill
its obligations or fail financially. 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 the case of reverse
repurchase agreements, while the level of the borrowing exceeds 5% of the Fund's
total assets.
Short-term corporate obligations may also include variable amount master
demand notes. Variable amount master notes are obligations that permit the
investment of fluctuating amounts by the Fund at varying rates of interest
pursuant to direct arrangements between the Fund, as lender, and the borrower.
These notes permit daily changes in the amounts borrowed. The Fund has the right
to increase the amount under the note at any time up to the full amount provided
by the note agreement, or to decrease the amount, and the borrower may repay up
to the full amount of the note without penalty. The borrower is typically a
large industrial or finance company which also issues commercial paper.
Typically these notes provide that the interest rate is set daily by the
borrower. The rate is usually the same or similar to the interest rate on
commercial paper being issued by the borrower. Because variable amount master
notes are direct lending arrangements between the lender and borrower, it is not
generally contemplated that such instruments will be traded, and there is no
secondary market for these notes, although they are redeemable (and thus
immediately repayable by the borrower) at the face value, plus accrued interest,
at any time. Accordingly, the Fund's right to redeem is dependent on the ability
of the borrower to pay principal and interest on demand. In connection with
master demand note arrangements, the Fund considers earning power, cash flow,
and other liquidity ratios of the issuer. The Fund will only invest in master
demand notes of U.S. issuers. While master demand notes, as such, are not
typically rated by credit rating agencies, if not so rated the Fund may invest
in them only if at the time of an investment the issuer meets the criteria set
forth in the Prospectus for all other commercial paper issuers. The Fund will
not invest more than 25% of its assets in master demand notes. Repurchase
Agreements Repurchase agreements have the characteristics of loans by a Fund,
and will be fully collateralized (either with physical securities or evidence of
book entry transfer to the account of the custodian bank) at all times. During
the term of the repurchase agreement the Fund retains the security subject to
the repurchase agreement as collateral securing the seller's repurchase
obligation, continually monitors the market value of the security subject to the
agreement, and requires the Fund's seller to deposit with the Fund additional
collateral equal to any amount by which the market value of the security subject
to the repurchase agreement falls below the resale amount provided under the
repurchase agreement. The Funds will enter into repurchase agreements only with
member banks of the Federal Reserve System, and with primary dealers in United
States government securities or their wholly-owned subsidiaries whose
creditworthiness has been reviewed and found satisfactory by the Investment
Adviser and who have, therefore, been determined to present minimal credit risk.
Securities underlying repurchase agreements will be limited to certificates
of deposit, commercial paper, bankers' acceptances, or obligations issued or
guaranteed by the United States government or its agencies or instrumentalities,
in which the Fund may otherwise invest.
If a seller of a repurchase agreement defaults and does not repurchase the
security subject to the agreement, the Fund would look to the collateral
security underlying the seller's repurchase agreement, including the securities
subject to the repurchase agreement, for satisfaction of the seller's obligation
to the Fund; in such event the Fund might incur disposition costs in liquidating
the collateral and might suffer a loss if the value of the collateral declines.
In addition, if bankruptcy proceedings are instituted against a seller of a
repurchase agreement, realization upon the collateral may be delayed or limited.
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 Funds'
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.
The use of reverse repurchase agreements is included in the Fund's borrowing
policy and is subject to the limit of Section 18(f)(1) of the Investment Company
Act of 1940, as amended. During the time a reverse repurchase agreement is
outstanding, each Fund that has entered into such an agreement maintains a
segregated account with its Custodian containing cash, U.S. government or other
liquid high grade debt securities having a value at least equal to the
repurchase price under the reverse repurchase agreement. Other Investment
Techniques and Opportunities The Funds may take certain actions with respect to
merger proposals, tender offers, conversion of equity-related securities and
other investment opportunities with the objective of enhancing overall return,
irrespective of how these actions may affect the weight of the particular
securities in a Fund. It is not the policy of any of the Funds to select
investments based primarily on the possibility of one or more of these
investment techniques and opportunities being presented. Fund Turnover
The transactions engaged in by the Funds are reflected in the Funds'
turnover rates. The rate of turnover for each Fund is calculated by dividing the
lesser of the amount of purchases or sales of securities during the fiscal year
by the monthly average of the value of the Fund's securities (excluding from the
computation all securities, including options, with maturities at the time of
acquisition of one year or less). A high rate of turnover generally involves
correspondingly greater brokerage commission expenses, which must be borne
directly by the Fund and ultimately by the Fund's shareholder. However, because
turnover is not a limiting factor in determining whether or not to sell
securities, a particular investment may be sold at any time, if investment
judgment or account operations make a sale advisable.
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.
The Investment Adviser cannot predict precisely the turnover rates for these
new Funds, but expects 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. The turnover rate for the Transamerica
Premier Cash Reserve Fund is expected 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. The Investment Adviser
generally will not consider turnover rates in making investment decisions on
behalf of any Fund consistent with the Fund's investment objective and policies.
Management of the Company
The names of the directors and executive officers of the Company, their
business addresses and their principal occupations and certain other
affiliations during the past five years are listed below. Each of the persons
listed below is an employee of an entity that provides services to the Funds. An
asterisk (*) appears before the name of each director who is an "interested
person" of the Company, as defined in the 1940 Act.
<TABLE>
<CAPTION>
<S> <C> <C>
Name, Address & Position Held Principal Occupations During Past 5 Years
Age with Company and Other Affiliations
Nicki Bair President Vice President,
Transmerica Center 1150 South Olive Transamerica Investment Services
Los Angeles, CA 90015 ("TIS") since April, 1995;
Age 40 and Vice President, Transamerica
Life Insurance and Annuity Company
("TALIAC") since 1991;
and Vice President, Transamerica
Occidental Life Insurance Company
("TOLIC") since 1992; formerly
Division Manager, Pension Pricing
and Asset Liability Management,
TALIAC and TOLIC.
Reid A. Evers Secretary Second Vice President & Assistant
Transamerica Center General Counsel, TOLIC and TALIAC.
1150 South Olive
Los Angeles, CA 90015
Age 45
Christopher W. Shaw Assistant Vice President Second Vice President & Compliance
Transamerica Center Officer, Transamerica Securities Sales
1150 South Olive Corporation since March, 1995.
Los Angeles, CA 90015 Formerly Manager, Group Pension
Age 49 Implementation, TALIAC since 1984.
*Nooruddin S. Veerjee Chief Executive Officer President,
TALIAC and President,
Transamerica Center and Chairman of the Board Group Pension Division, TOLIC, since
1150 South Olive December 1993. Formerly Senior Vice
Los Angeles, CA 90015 President, Group Pension Line,
Age 37 TOLIC, April 1992-December 1993;
Vice President-Office of the Chairman,
TOLIC, April 1990-April 1992; Vice
President & Subline Manager, Pension
Financial Products, TALIAC, March
1985-April1990
*Gary U. Rolle Director Executive Vice President & Chief
Transamerica Center Investment Officer, TIS; Chairman &
1150 South Olive President, Transamerica Income
Los Angeles, CA 90015 Shares Investment Company; Chief
Age 54 Investment Officer, TOLIC & TALIAC.
Donald Radisich Vice President Vice President, Administration,
Transamerica Center TALIAC.
1150 South Olive
Los Angeles, CA 90015
Age 53
Howell Margolit Assistant Vice President Assistant Vice President, TIS since
Transamerica Center April, 1995; formerly Manager, Pricing 1150 South Olive and
Product Development, TALIAC.
Los Angeles, CA 90015
Age 43
J. Richard Atwood Treasurer, Compliance
Transamerica Center Officer, Chief Financial Officer and
1150 South Olive Chief Accounting Officer
Los Angeles, CA 90015
Age 35
Vice President and Chief Financial
Officer, TIS since 1995; formerly Vice
President and Controller, First Pacific
Advisors, Inc. since 1988.
Sidney E. Harris Director Dean of the Drucker Center, Claremont
The Drucker Center Graduate School; Director for The
Claremont Graduate School ServiceMaster Company and Family
925 N. Dartmouth Avenue Savings Bank; Trustee of Menlo
Claremont, CA 91711 College, Atherton, California.
Age 46
Charles C. Reed Director Executive Vice President, Alexander &
Alexander & Alexander Alexander of California, Inc.;
55 S. Lake Ave., Suite 500 Chairman of L.A. Chamber of
Pasadena, CA 91101 Commerce; Director for Los Angeles
Age 62 YMCA, LA 2000 Partnership, and the
California Museum Foundation.
Carl R. Terzian Director Chairman of Carl Terzian Associates;
Carl Terzian Associates Vice President of Project Concern;
12400 Wilshire Blvd., Trustee of Woodbury University;
Suite 200 Director for Armenian Film
Los Angeles, CA 90025 Foundation, Arthritis Foundation, Boy
Age 60 Scouts of America, California Higher
Education Loan Authority, Hugh
O'Brian Youth Foundation, St.
Vincent Medical Center Foundation,
The Wellness Community, The
Educational Resource and Services
Center, Inc., and Senior Health
and Peer Counseling.
</TABLE>
No officer, director or employee of Transamerica Investment Services, Inc.
or Transamerica Occidental Life Insurance Company or any of their affiliates
receives any compensation from the Company for acting as a director or officer
of the Company. Each director of the Company who is not an "interested person"
of the Company receives an annual fee of $10,000, and $1,000 for each meeting of
the Company's Board attended, and $500 for each Board committee meeting
attended, and is reimbursed for expenses incurred in connection with such
attendance.
Following is a table of the compensation expected to be paid to all
directors during the current fiscal year.
Estimated Total
Annual Compensation
Compensation Pension Benefits at All Related
Name Paid Benefits Retirement Funds
Sidney E. Harris $15,000 $0 $0 $15,000
Charles C. Reed $15,000 $0 $0 $15,000
Carl R. Terzian $15,000 $0 $0 $15,000
Gary U. Rolle $0 $0 $0 $0
Nooruddin S. Veerjee $0 $0 $0 $0
As of February 29, 1996 the officers and directors of Transamerica
Investors, Inc. together owned less than 1% of the shares of the Funds. As of
February 29, 1996 the following shareholders owned 5% or more of the shares
of the following Funds.
<TABLE>
<CAPTION>
Transamerica Percent of
Shareholder Premier Fund Shares
<S> <C> <C> <C>
Transamerica Corporation Equity Fund 39%
Transamerica Occidental Life Insurance Company Equity Fund 43%
ARC Reinsurance Corporation Equity Fund 16%
ARC Reinsurance Corporation Index Fund 72%
Transamerica Occidental Life Insurance Company Index Fund 25%
Transamerica Real Estate Tax Svc Bond Fund 86%
Transamerica Occidental Life Insurance Company Bond Fund 11%
Transamerica Corporation Balanced Fund 63%
Transamerica Occidental Life Insurance Company Balanced Fund 29%
Transamerica Corporation Short-Intermediate Government Fund 89%
Transamerica Occidental Life Insurance CompanyShort-Intermediate Government Fund 9%
Transamerica Occidental Life Insurance Company Cash Reserve Fund 44%
Transamerica Life Insurance & Annuity Company Cash Reserve Fund 40%
</TABLE>
The above percentages are of the Investor Shares only. The number of Adviser
Shares sold during this period was insignificant. Investment Advisory and Other
Services Investment Adviser and Administrator 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 will: (1) supervise and manage the investments of each
Fund and direct the purchase and sale of its investment securities; and (2) see
that investments follow the investment objectives and comply with government
regulations. 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 Advi ser may give
consideration to brokers and dealers who provide us with statistical information
and other services in addition to transaction services. 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. For the period ended December 31, 1995, the Adviser
earned $12,015, $4,161, $15,656, $17,091, $3,895, and $20,801 of Investment
Adviser fees, all of which were waived, on the Equity Fund, the Index Fund, the
Bond Fund, the Balanced Fund, the Short-Intermediate Government Fund and the
Cash Reserve Fund, respectively.
The Adviser Fee for any Fund may be reduced in any year if the Fund's
expenses exceed the limits on investment company expenses imposed by any statute
or regulatory authority of any jurisdiction in which shares of the Fund are
qualified to offer for sale. The term "expenses" is defined in the statutes or
regulations of such jurisdictions, but it generally excludes brokerage
commissions, taxes, interest, and extraordinary expenses. The only such
limitation currently known is imposed by the State of California. California's
maximum Fund expenses before the Adviser Fee must be reduced are 2.5% of the
first $30 million of average net assets, 2% of the next $70 million, and 1.5% of
any excess over $100 million.
The Funds' Administrator is Transamerica Occidental Life Insurance Company
(the "Administrator"), 1150 South Olive Street, Los Angeles, California 90015.
The Administrator will: (1) provide the Funds with administrative and clerical
services, including the maintenance of the Funds' books and records; (2) arrange
periodic updating of the Funds' prospectus and any supplements; (3) provide
proxy materials and reports to Fund shareholders and the Securities and Exchange
Commission; and (4) provide the Funds with adequate office space and all
necessary office equipment and services. The Administrator also provides
services for the registration of Fund shares with those states and other
jurisdictions where its shares are offered or sold.
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. Custodian and Transfer Agent State Street Bank and Trust Company
("State Street"), located at 225 Franklin Street, Boston, Massachusetts 02110,
serves as custodian of the Funds' investments. Under its custodian contract with
the Company, State Street is authorized to appoint one or more banking
institutions as subcustodians of assets owned by each Fund. For its custody
services, State Street receives monthly fees charged to the Funds based upon the
month-end, aggregate net asset value of the Funds, plus certain charges for
securities transactions. The assets of the Company are held under bank
custodianship in accordance with the 1940 Act.
Under a Foreign Subcustodian Agreement with State Street, State Street
London Limited is responsible for foreign assets and transactions with the
transnational depositories of Euroclear and Cedel.
Under a Transfer Agency Agreement, State Street Bank is also responsible for
processing redemption requests and crediting dividends to the accounts of
shareholders of the Funds. Distribution of Shares of the Funds Transamerica
Securities Sales Corporation ("TSSC") serves as the principal underwriter of
shares of the Funds, which are continuously distributed. Transamerica Financial
Resources, Inc. ("TFR") will also distribute shares of the Funds pursuant to a
selling agreement with TSSC. Both TSSC and TFR are wholly-owned subsidiaries of
Transamerica Insurance Corporation of California, which is a wholly-owned
subsidiary of Transamerica Corporation, are registered with the Securities and
Exchange Commission as broker/dealers, and are members of the National
Association of Securities Dealers, Inc. TSSC may also enter into arrangements
whereby Fund shares may be sold by other broker/dealers, which may or may not be
affiliated with TFR or TSSC.
The Company has adopted a plan of distribution pursuant to Rule 12b-1 (the
"Plan") under the Investment Company Act of 1940, as amended (the "1940 Act").
Under the Plan, each Fund makes payments monthly to TSSC based on an annual
percentage of the average net value of the assets represented by each class of
shares.
For the Investor Shares class, there is an annual 12b-1 distribution fee of
.25% of the average daily net assets of the Investor shares of each Fund, except
the Transamerica Premier Index and Cash Reserve Funds. The distribution fee for
the Index and Cash Reserve Funds is .10%. This fee covers such expenses as
preparation, printing and mailing of the Prospectus and Statement of Additional
Information, as well as sales literature and other media advertising, and
related expenses. It can also be used to compensa te sales personnel involved
with selling the Funds. During the period from October 2, 1995 to December 31,
1995, TSSC earned $25,010.15 in 12b-1 fees for the Investor Shares. All of these
fees were used to develop and distribute sales literature.
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 12b-1 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 12b-1 fees for Adviser Shares are higher than Investor Shares because
the distribution fee for the Adviser Shares 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. Also, a service fee is charged on Adviser Shares. 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. During the period from October 2, 1995 to December 31,
1995, TSSC earned $81.88 in 12b-1 fees for the Adviser Shares. All of these fees
were allocated to TFR as dealer concession to compensate registered
representatives and for related expenses.
From time to time, and for one or more Funds within each class of Shares,
the Distributor may waive any or all 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 to another
Transamerica Premier Fund may be eligible for a 1.00% concession. Capitalization
Transamerica Corporation provided $100,000 in initial capitalization for the
Company which amount has been allocated among the Funds. Transamerica
Corporation acquired its shares for investment and can only dispose of its
shares by redemption. Transamerica Corporation and certain of its wholly-owned
subsidiaries invested an additional $30 million in shares of the Funds.
Redemption of Shares
Detailed information on how to redeem shares of a Fund is included in the
Prospectus. The right of redemption of shares of a Fund may be suspended or the
date of payment postponed (1) for any periods during which the New York Stock
Exchange is closed (other than for customary weekend and holiday closings), (2)
when trading in the markets the Fund normally utilizes is restricted, or an
emergency, as defined by the rules and regulations of the SEC, exists, making
disposal of a Fund's investments or determination of its net asset value not
reasonably practicable, or (3) for such other periods as the Securities and
Exchange Commission by order may permit for the protection of the Fund's
shareholders. A shareholder who pays for Fund shares by personal check will
receive the proceeds of a redemption of those shares when the purchase check has
been collected, which may take up to 10 days or more. Shareholders who
anticipate the need for more immediate access to their investment should
purchase shares with Federal funds or bank wire or by a certified or cashier's
check. Redemptions in Excess of $250,000 If you request a redemption of up to
$250,000, the amount will be paid in cash. If you redeem more than $250,000 from
any one account in any one Fund in a 90-day period, the entire redemption will
be paid in cash if you provide Transamerica with an unconditio nal instruction
to redeem at least 30 days prior to the date on which the redemption transaction
is to occur. The instruction must specify the dollar amount or number of shares
to be redeemed and the date of the transaction. The date must be a minimum of 30
days after receipt of the instruction by Transamerica. If you have authorized
Transamerica to accept such instructions, your instruction may be by telephone
or in writing without a signature guarantee. If you have not done so, the
instruction must be in writing with all signatures guaranteed. Your shares will
be redeemed at the price determined on the date you specify in your instruction
and the proceeds will be sent by mail, wire or electronic funds transfer in
accordance with the procedures specified in the Prospectus.
Receipt of your instruction to redeem 30 days prior to the transaction
provides the Fund with sufficient time to raise the cash in an orderly manner to
pay the redemption and thereby minimizes the effect of the redemption on the
Fund and its shareholders.
You may cancel your redemption instruction prior to the transaction date.
However, if you do so, Transamerica may not accept an instruction from you
to redeem in accordance with this alternative for a period of 90 days from the
date of cancellation.
If you do not provide your instruction to redeem 30 days prior to the
transaction, Transamerica offers you two alternatives:
(1) You may redeem up to $250,000 in cash the first day, and the remainder
over the next 20 business days at the rate of not less than $50,000 or
more than $500,000 per day (and such lesser amount on the last day to
redeem all the shares remaining), but not more than $10 million total.
The redemption each day will be at the price determined that day. For
example, a request to redeem $525,000, or a number of shares worth
$525,000, will be effective at $250,000 on the first day, and $50,000 per
day for the next five business days, and $25,000 on the last day. A
request to redeem $11 million would be effective at $250,000 the first
day and $500,000 per day for the next 20 business days ($10.25 million
total) and the remaining $750,000 to be redeemed by the delivery of
securities.
Since the price is determined not on the date the redemption
request is received, but instead on succeeding business days when the
redemption is effected, the number of shares redeemed will vary from day
to day. The total you will receive over the entire period may be more or
less than the amount that you would have received had the redemption been
effected on the day your redemption request was received. In the first
example above, falling per-share prices could cause the value of the
shares on the last day to be less than $25,000, and the redemption on the
last day would be only of the shares left in the account.
(2) In lieu of receiving cash as described earlier, you may elect to
receive securities from Transamerica's fund. The securities delivered
will be selected at the sole discretion of Transamerica. They will be
readily marketable with an active and substantial secondary market given
the type of companies involved and the characteristics of the markets in
which they trade, but will not necessarily be representative of the
entire fund, and will be securities that Transamerica may regard as least
desirable. You may incur brokerage costs in converting the securities to
cash.
The method of valuing securities used to make the redemptions will
be the same as the method of valuing securities described under
"Determination of Net Asset Value," page 17, and such valuation will be
made as of the same time the redemption price is determined.
These alternatives are designed to lessen the adverse effect of large
redemptions on the Fund and its non-redeeming shareholders. For example, assume
that a shareholder redeems $1 million on a given day and that the Fund pays him
$250,000 in cash and is required to sell securities for $750,000 to raise the
remainder of the cash to pay him. The securities valued at $750,000 on the day
of the redemption may bring a lower price when sold thereafter, so that more
securities may be sold to realize $750,000. In that case, the redeeming
shareholder's proceeds would be fixed at $750,000 and the market risk would be
imposed on the Fund and its remaining shareholders, who would suffer the loss.
By delivering securities instead of cash or staggering the payment of cash, the
market risk is imposed on the redeeming shareholder. If securities are
delivered, the redeeming shareholder (and not the Fund) bears the brokerage cost
of selling them. Exchange Privilege
The exchange privilege described in the Prospectus enables a shareholder of
a Fund to acquire the same class of shares in a Fund having a different
investment objective and policies when the shareholder believes that a shift
between Funds is an appropriate investment decision. Upon receipt of proper
instructions and all necessary supporting documents, shares submitted for
exchange are redeemed at the then-current net asset value and the proceeds are
immediately invested in shares of the Fund being acquired. The Company reserves
the right to reject any exchange request. Telephone Transactions
The Company and its Transfer Agent will employ reasonable procedures such as
requiring certain identifying information from the caller, tape recording the
telephone instructions, and providing written confirmation of the transaction to
confirm that the instructions communicated by telephone are genuine. All
telephone instructions reasonably believed by the Transfer Agent to be genuine
will be the shareholder's responsibility, including losses arising from any
errors in the communication of instructions. As a result of this policy, the
shareholder will bear the risk of loss. If the Company or its Transfer Agent do
not employ reasonable procedures to confirm that instructions communicated by
telephone are genuine, they may be liable for any losses due to unauthorized or
fraudulent transactions. Brokerage Allocation
Subject to the direction of the Board, the Investment Adviser has
responsibility for making a Fund's investment decisions, for effecting the
execution of trades for a Fund and for negotiating any brokerage commissions
thereon. It is the Investment Adviser's policy to obtain the best price and
execution available, giving attention to net price (including commissions where
applicable), execution capability (including the adequacy of a firm's capital
position), and other services related to execution; the relative priority given
to these factors will depend on all of the circumstances regarding a specific
trade.
The Investment Adviser receives a variety of brokerage and research services
from brokerage firms in return for the execution by such brokerage firms of
trades on behalf of the Funds. These brokerage and research services include,
but are not limited to, quantitative and qualitative research information and
purchase and sale recommendations regarding securities and industries, analyses
and reports covering a broad range of economic factors and trends, statistical
data relating to the strategy and performance of the Funds and other investment
companies, services related to the execution of trades in a Fund's securities
and advice as to the valuation of securities. The Investment Adviser considers
the quantity and quality of such brokerage and research services provided by a
brokerage firm along with the nature and difficulty of the specific transaction
in negotiating commissions for trades in a Fund's securities and may pay higher
commission rates than the lowest available when it is reasonable to do so in
light of the value of the brokerage and research services received generally or
in connection with a particular transaction.
Consistent with federal legislation, the Investment Adviser may obtain such
brokerage and research services regardless of whether they are paid for (1) by
means of commissions, or (2) by means of separate, non-commission payments. The
Investment Adviser's judgment as to whether and how it will obtain the specific
brokerage and research services will be based upon its analysis of the quality
of such services and the cost (depending upon the various methods of payment
which may be offered by brokerage firms) and will reflect the Investment
Adviser's opinion as to which services and which means of payment are in the
long-term best interests of the Funds. The Investment Adviser will not effect
any brokerage transactions in the Funds' securities with any affiliate of the
Company, the Investment Adviser, or the Administrator except in accordance with
applicable SEC rules.
Certain executive officers of the Investment Adviser also have supervisory
responsibility with respect to the securities of the Investment Adviser's own
accounts. In placing orders for the purchase and sale of debt securities for a
Fund, the Investment Adviser will normally use its own facilities. A Fund and
another fund or another advisory client of the Investment Adviser, or the
Investment Adviser itself, may desire to buy or sell the name, publicly traded
security at or about the same time. In such a case, the purchases or sales will
normally be allocated as nearly as practicable on a pro rata basis in proportion
to the amounts to be purchased or sold by each. In determining the amounts to be
purchased and sold, the main factors to be considered are the respective
investment objectives of a Fund and the other funds, the relative size of
holdings of the same or comparable securities, availability of cash for
investment by a Fund and the other funds, and the size of their respective
investment commitments.
During the Fund's initial period of operation from October 2, 1995 to
December 31, 1995, all transactions were allocated to brokers and dealers on the
basis of the best execution and no commissions were paid based on research or
other services provided. For the period ended December 31, 1995 the Equity Fund,
the Index Fund, the Bond Fund, the Balanced Fund, the Short-Intermediate
Government Fund, and the Cash Reserve Fund paid $13,485, $4,295, $0, $8,045, $0,
and $0, respectively, in brokerage commissions.
On December 31, 1995, the Index Fund held 164 shares of Merrill Lynch &
Company Incorporated with a value of $8,364 and 72 shares of Morgan Stanley
Group Incorporated with a value of $5,805 and the Equity Fund held 6,000 shares
of Merrill Lynch & Company Incorporated with a value of $306,000. In 1995,
Merrill Lynch & Company Incorporated and Morgan Stanley Group
Incorporated were among the Index and Equity Funds'
regular brokers or dealers as defined in Rule 10b-1 under the Investment
Company Act of 1940.
Determination of Net Asset Value
Under the 1940 Act, the Board is responsible for determining in good faith
the fair value of securities of each Fund, and each class of each Fund. In
accordance with procedures adopted by the Board, the net asset value per share
is calculated by determining the net worth of each Fund (assets, including
securities at market value, minus liabilities) divided by the number of that
Fund's outstanding shares. All securities are valued as of the close of regular
trading on the New York Stock Exchange (normally 4:00 p.m. Eastern Standard
Time). Except for the Transamerica Premier Cash Reserve Fund, each Fund will
compute its net asset value once daily at the close of such trading on each day
that the New York Stock Exchange is open for business (as described in the
Prospectus). The Transamerica Premier Cash Reserve Fund will determine its net
asset value only on days that the Federal Reserve is open.
In the event that the New York Stock Exchange, the Federal Reserve, or the
national securities exchange on which stock options are traded adopt different
trading hours on either a permanent or temporary basis, the Board will
reconsider the time at which net asset value is computed. In addition, the Funds
may compute their net asset value as of any time permitted pursuant to any
exemption, order or statement of the SEC or its staff.
Assets of the Funds (other than the Transamerica Premier Cash Reserve Fund)
are valued as follows:
(a) equity securities and other similar investments ("Equities")
listed on any U.S. or foreign stock exchange or
the National Association of Securities Dealers Automated Quotation
System ("nasdaq") are valued at the last sale price on that exchange or
nasdaq on the valuation day; if no sale occurs, Equities traded on a U.S.
exchange or nasdaq are valued at the mean between the closing bid and
closing asked prices. Equities traded on a foreign exchange will be
valued at the official bid price;
(b) over-the-counter securities not quoted on nasdaq are valued at
the last sale price on the valuation day or, if no sale occurs, at the
mean between the last bid and asked prices;
(c) debt securities purchased with a remaining maturity of 61 days or
more are valued on the basis of dealer-supplied quotations or by a
pricing service selected by the Investment Adviser and approved by the
Board;
(d) options and futures contracts are valued at the last sale price
on the market where any such option or futures contracts is principally
traded;
(e) over-the-counter options are valued based upon prices provided by
market makers in such securities or dealers in such currencies.
(f) forward foreign currency exchange contracts are valued based
upon quotations supplied by dealers in such
contracts;
(g) all other securities and other assets, including those for which
a pricing service supplies no quotations or quotations are not deemed by
the Investment Adviser to be representative of market values, but
excluding debt securities with remaining maturities of 60 days or less,
are valued at fair value as determined in good faith pursuant to
procedures established by the Board; and
(h) debt securities with a remaining maturity of 60 days or less will
be valued at their amortized cost, which approximates market value.
Equities traded on more than one U.S. national securities exchange or
foreign securities exchange are valued at the last sale price on each business
day at the close of the exchange representing the principal market for such
securities. The value of all assets and liabilities expressed in foreign
currencies will be converted into U.S. dollar values at the noon (Eastern
Standard Time) Reuters spot rate. If such quotations are not available, the rate
of exchange will be determined in good faith by or under procedures established
by the Board.
All of the assets of the Transamerica Premier Cash Reserve Fund are valued
on the basis of amortized cost in an effort to maintain a constant net asset
value of per share $1.00. The Board has determined that to be in the best
interests of the Transamerica Premier Cash Reserve Fund and its shareholders.
Under the amortized cost method of valuation, securities are valued at cost on
the date of their acquisition, and thereafter a constant accretion of any
discount or amortization of any premium to maturity is assumed, regardless of
the impact of fluctuating interest rates on the market value of the security.
While this method provides certainty in valuation, it may result in periods in
which value as determined by amortized cost is higher or lower than the price
the Fund would receive if it sold the security. During such periods, the quoted
yield to investors may differ somewhat from that obtained by a similar fund
which uses available market quotations to value all of its securities.
The Board has established procedures reasonably designed, taking into
account current market conditions and the Transamerica Premier Cash Reserve
Fund's investment objective, to stabilize the net asset value per share for
purposes of sales and redemptions at $1.00. These procedures include review by
the Board, at such intervals as it deems appropriate, to determine the extent,
if any, to which the net asset value per share calculated by using available
market quotations deviates from $1.00 per share. In the event such deviation
should exceed one half of one percent, the Board will promptly consider
initiating corrective action. If the Board believes that the extent of any
deviation from a $1.00 amortized cost price per share may result in material
dilution or other unfair results to new or existing shareholders, it will take
such steps as it considers appropriate to eliminate or reduce these consequences
to the extent reasonably practicable. Such steps may include: (1) selling
securities prior to maturity; (2) shortening the average maturity of the fund;
(3) withholding or reducing dividends; or (4) utilizing a net asset value per
share determined from available market quotations. Even if these steps were
taken, the Transamerica Premier Cash Reserve Fund's net asset value might still
decline. Performance Information
Performance information for the Funds including the yield and effective
yield of the Transamerica Premier Cash Reserve Fund, the yield of the remaining
Funds, and the total return of all Funds, may appear in reports or promotional
literature to current or prospective shareholders. Money Market Fund Yields
Current yield for the Transamerica Premier Cash Reserve Fund will be computed by
determining the net change, exclusive of capital changes at the beginning of a
seven-day period in the value of a hypothetical investment, subtracting any
deductions from shareholder accounts, and dividing the difference by the value
of the hypothetical investment at the beginning of the base period to obtain the
base period return. This base period return is then multiplied by (365/7) with
the resulting yield figure carried to at least the nearest hundredth of one
percent.
Calculation of "effective yield" begins with the same "base period return"
used in the calculation of yield, which is then annualized to reflect weekly
compounding pursuant to the following formula:
Effective Yield = [(Base Period Return + 1)365/7] - 1 30-Day Yield for
Non-Money Market Funds Quotations of yield for the remaining Funds will be based
on all investment income per share earned during a particular 30-day period,
less expenses accrued during the period ("net investment income"), and will be
computed by dividing net investment income by the value of a share on the last
day of the period, according to the following formula:
Yield = 2[({[a-b]/cd} + 1)6 - 1] Where:
a = dividends and interest earned during the period b = the expenses
accrued for the period (net of reimbursements) c = the average daily
number of shares outstanding during the period d = the maximum offering
price per share on the last day of the
period
Average Annual Total Return for Non-Money Market Funds Quotations of average
annual total return for any Fund will be expressed in terms of the average
annual compounded rate of return of a hypothetical investment in a Fund over a
period of one, five and ten years (or, if less, up to the life of the Fund),
calculated pursuant to the formula:
P(1 + T)n = ERV Where:
P = a hypothetical initial payment of $1,000 T = an average annual total
return n = the number years
ERV = the ending redeemable value of a hypothetical $1,000 payment made at
the beginning of the 1, 5, or 10 year period at the end of the 1, 5, 10 year
period (or fractional portion thereof)
Any performance data quoted for a Fund will represent historical performance
and the investment return and principal value of an investment will fluctuate so
that an investor's shares, when redeemed, may be worth more or less than
original cost. Published Performance From time to time the Company may publish,
or provide telephonically, an indication of the Funds' past performance as
measured by independent sources such as (but not limited to) Lipper Analytical
Services, Incorporated, Weisenberger Investment Companies Service, Donoghue's
Money Fund Report, Barron's, Business Week, Changing Times, Financial World,
Forbes, Fortune, Money, Personal Investor, Sylvia Porter's Personal Finance and
The Wall Street Journal. The Company may also advertise information which has
been provided to the NASD for publication in regional and local newspapers.
In addition, the Company may from time to time advertise its performance
relative to certain indexes and benchmark investments, including:
*the Lipper Analytical Services, Inc. Mutual Fund Performance Analysis,
Fixed-Income Analysis and Mutual Fund Indexes (which measure total return and
average current yield for the mutual fund industry and rank mutual fund
performance);
*the CDA Mutual Fund Report published by CDA Investment Technologies,
Inc. (which analyzes price, risk and various measures of return for the
mutual fund industry);
*the Consumer Price Index published by the U.S. Bureau of Labor
Statistics (which measures changes in the price of goods and services);
*Stocks, Bonds, Bills and Inflation published by Ibbotson Associates (which
provides historical performance figures for stocks, government securities and
inflation);
*the Hambrecht & Quist Growth Stock Index; *the NASDAQ OTC Composite Prime
Return; *the Russell Midcap Index; *the Russell 2000 Index; *the ValueLine
Composite; *the Wilshire 4500 Index;
*the Salomon Brothers World Bond Index (which measures the total return in
U.S. dollar terms of government bonds, Eurobonds and foreign bonds of ten
countries, with all such bonds having a minimum maturity of five years);
*the Shearson Lehman Brothers Aggregate Bond Index or its component indexes
(the Aggregate Bond Index measures the performance of Treasury, U.S.
government agencies, mortgage and Yankee bonds);
*the S&P Bond indexes (which measure yield and price of corporate,
municipal and U.S. government bonds);
*the J.P. Morgan Global Government Bond Index;
*Donoghue's Money Market Fund Report (which provides
industry averages of 7-day annualized and compounded yields of
taxable, tax-free and U.S. government money market funds);
*historical investment data supplied by the research departments of
Goldman Sachs, Lehman Brothers, First Boston Corporation, Morgan Stanley
(including EAFE), Salomon Brothers, Merrill Lynch, Donaldson Lufkin and
Jenrette or other providers of such data;
*the FT-Actuaries Europe and Pacific Index;
*mutual fund performance indexes published by Morningstar, Inc., Variable
Annuity Research & Data Service, the Investment Company Institute, the
Investment Company Data, Inc., Media General Financial, and Value Line Mutual
Fund Survey; and
*financial industry analytical surveys, such as Piper Universe.
The composition of the investments in such indexes and the
characteristics of such benchmark investments are not identical to, and in some
cases are very different from, those of a Fund. These indexes and averages are
generally unmanaged and the items included in the calculations of such indexes
and averages may be different from those of the equations used by the Company to
calculate a Fund's performance figures.
The Funds may also from time to time include in such advertising a total
return figure that is not calculated according to the formula set forth above in
order to compare more accurately the performance of a Fund with other measures
of investment return. For example, unmanaged indexes may assume the reinvestment
of dividends but generally do not reflect deductions for administrative and
management costs and expenses.
The Company may from time to time summarize the substance of discussions
contained in shareholder reports in advertisements and publish the Investment
Adviser's views as to markets, the rationale for a Fund's investments, and
discussions of the Fund's current asset allocation.
From time to time, advertisements or information may include a discussion of
certain attributes or benefits to be derived by an investment in a particular
Fund. Such advertisements or information may include symbols, headlines or other
material which highlight or summarize the information discussed in more detail
in the communication.
Such performance data will be based on historical results and will not be
intended to indicate future performance. The total return or yield of a Fund
will vary based on market conditions, expenses, investments, and other factors.
The value of a Fund's shares will fluctuate and an investor's shares may be
worth more or less than their original cost upon redemption. The Company may
also, at its discretion, from time to time make a list of a Fund's holdings
available to investors upon request. Taxes
Each Fund intends to qualify and to continue to qualify as a regulated
investment company ("RIC") under the Internal Revenue Code of 1986, as amended
(the "Code"). The distribution requirement, in order to qualify for that
treatment, is that each Fund must distribute to its shareholders for each
taxable year at least 90% of its investment company taxable income, consisting
generally of net investment income, net short-term capital gain, and net gains
from certain foreign currency transactions. The Company must also meet the
following additional requirements: (1) The Fund must derive at least 90% of its
gross income each taxable year from dividends, interest, payments with respect
to securities loans, and gains from the sale or other disposition of securities
or foreign currencies, or other income (including gains from options, futures,
or forward contracts) derived with respect to its business of investing in
securities or those currencies ("Income Requirement"); (2) The Fund must derive
less than 30% of its gross income each taxable year from gains (without
including losses) on the sales or other disposition of securities, or any of the
following, that were held for less than three months - options, futures, or
forward contracts (other than those on foreign currencies), or foreign
currencies (or options, futures, or forwards thereon) that are not directly
related to the Fund's principal business of investing in securities (or options
and futures with respect thereto) ("Short-Short Limitation"); (3) At the close
of each quarter of the Fund's taxable year, at least 50% of the value of its
total assets must be represented by cash and cash items, U.S. government
securities, securities of other RIC's, and other securities that, with respect
to any one issuer, do not exceed 5% of the value of the Fund's total assets and
that do not represent more than 10% of the outstanding voting securities of the
issuer; and (4) At the close of each quarter of the Fund's taxable year, not
more than 25% of the value of its total assets may be invested in securities
(other than U.S. government securities or the securities of other RIC's) of any
one issuer.
Each Fund will be subject to a nondeductible 4% excise tax on amounts not
distributed to shareholders on a timely basis. The Fund intends to make
sufficient distributions to avoid this 4% excise tax.
Dividends and interest received by each Fund may be subject to income,
withholding, or other taxes imposed by foreign countries and U.S. possessions
that would reduce the yield on its securities. Tax conventions between certain
countries and the United States may reduce or eliminate these foreign taxes,
however, and foreign countries generally do not impose taxes on capital gains in
respect to investments by foreign investors.
Certain of the Funds may invest in the stock of "passive foreign investment
companies" ("PFIC's"). A PFIC is a foreign corporation that, in general, meets
either of the following tests: (1) At least 75% of its gross income is passive;
or (2) An average of at least 50% of its assets produce, or are held for the
production of, passive income. Under certain circumstances, the Fund would be
subject to Federal income tax on a portion of any "excess distribution" received
on the stock of a PFIC or of any gain on disposition of that stock (collectively
"PFIC income"), plus interest thereon, even if the Fund distributes the PFIC
income as a taxable dividend to its shareholders. The balance of the PFIC income
would be included in the Fund's investment company taxable income, and
accordingly, will not be taxable to it to the extent that income is distributed
to its shareholders. If the Fund invests in a PFIC and elects to treat the PFIC
as a "qualified electing fund," then in lieu of the foregoing tax and interest
obligation, that Fund will be required to include income each year to its pro
rata share of the qualified electing fund's annual ordinary earnings and net
capital gain (the excess of net long-term capital gain over net short-term
capital loss), even if they are not distributed to the Fund; those amounts would
be subject to the Distribution Requirement. The ability of a Fund to make this
election may be limited.
The use of hedging strategies, such as writing (selling) and purchasing
options and futures contracts and entering into forward contracts, involves
complex rules that will determine for income tax purposes the character and
timing of recognition of the income received in connection therewith by a Fund.
Income from the disposition of foreign currencies (except certain gains
therefrom that may be excluded by future regulations), and income from
transactions in options, futures, and forward contracts derived by a Fund with
respect to its business of investing in securities or foreign currencies, will
qualify as permissible income under the Income Requirement. However, income from
the disposition of options and futures contract (other than those on foreign
currencies) will be subject to the Short-Short Limitation if they are held for
less than three months. Income from the disposition of foreign currencies, and
options, futures, and forward contracts on foreign currencies, that are not
directly related to a Fund's principal business of investing in securities (or
options and futures with respect thereto) also will be subject to the
Short-Short Limitation if they are held for less than three months.
If a Fund satisfies certain requirements, any increase in value on a
position that is part of a "designated hedge" will be offset by any decrease in
value (whether realized or not) of the offsetting hedging position during the
period of the hedge for purposes of determining whether that Fund satisfies the
Short-Short Limitation. Thus, only the net gain (if any) from the designated
hedge will be included in gross income for purposes of that limitation. Each
Fund intends that, when it engages in hedging transactions, it will qualify for
this treatment, but it is not clear whether this treatment will be available for
all of the Fund's hedging transactions. To the extent this treatment is not
available, a Fund may be forced to defer the closing out of certain options and
futures contracts beyond the time when it otherwise would be advantageous to do
so, in order for the Fund to qualify as a RIC.
We have obtained a ruling from the Internal Revenue Service to the effect
that the payment of different amounts as dividends with respect to the Investor
and Adviser shares by reason of differences in their respective distribution
expenses does not result in the treatment of dividends or distributions of the
Fund as "preferential dividends" under the Internal Revenue Code of 1986, as
amended, and thus will not adversely affect the Fund's tax status as a regulated
investment company.
The foregoing is only a general summary of some of the important Federal
income tax considerations generally affecting the Funds and their shareholders.
No attempt is made to present a complete explanation of the Federal tax
treatment of the Funds' activities. Potential investors are urged to consult
their own tax advisers for more detailed information and for information
regarding any applicable state, local, or foreign taxes. Other Information Legal
Matters An opinion of counsel as to the legality of the shares of the Funds has
been given by Reid A. Evers. Independent Auditors Ernst & Young LLP, 200
Clarendon Street, Boston, Massachusetts 02116, performs audits of the Funds'
financial statements. Other Information A Registration Statement has been filed
with the Securities and Exchange Commission, under the Securities Act of 1933 as
amended, with respect to the Company and the shares of the Funds discussed in
this Statement of Additional Information. Not all of the information set forth
in the Registration Statement, amendments and exhibits thereto has been included
in the Prospectus or this Statement of Additional Information. Statements
contained herein concerning the contents of certain other legal instruments are
intended to be summaries. For a complete statement of the terms of these
documents, reference should be made to the instruments filed with the
Commission. Financial Statements The audited Annual Report for the fiscal year
ended December 31, 1995 is a separate report supplied with this Statement of
Additional Information and is incorporated herein by reference. The following
unaudited financial statements are for the period January 1, 1996 through
February 29, 1996.
#
Description of Corporate Bond Ratings
#
Description of Fixed-Income Instruments
#
Investment Procedures and Risk Considerations for the Funds
#
Investment Procedures and Risk Considerations for the Funds
#
Investment Procedures and Risk Considerations for the Funds
#
Investment Procedures and Risk Considerations for the Funds
#
Investment Procedures and Risk Considerations for the Funds
#
Investment Procedures and Risk Considerations for the Funds
#
Fund Turnover
#
Management of the Company
#
Investment Advisory and Other Services
#
Redemption of Shares
#
Exchange Privilege/Telephone Transactions/Brokerage Allocation
#
Determination of Net Asset Value
#
Performance Information
#
Taxes
#
Following is a table of the compensation expected to be paid to all
directors and to all officers and affiliated persons of the Company receiving
more than $60,000 from the Company during the next fiscal year.
<TABLE>
<CAPTION>
Estimated Annual Total Compensation
Name Compensation Paid Pension Benefits Benefits at Retirement All Related Funds
<S> <C> <C> <C> <C>
Sidney E. Harris $15,000 $0 $0 $15,000
Charles C. Reed $15,000 $0 $0 $15,000
Carl R. Terzian $15,000 $0 $0 $15,000
Gary U. Rolle $0 $0 $0 $0
Nooruddin S. Veerjee $0 $0 $0 $0
</TABLE>
Other Information
#
Schedule of Investments
Transamerica Premier Equity Fund February 29, 1996 (unaudited)
shares value
COMMON STOCKS - 98.7%
Hotels & Restaurants - 12.3%
Host Marriott Corporation (a) 35,000 $ 455,000
Host Marriott Services Corporation (a) 5,000 33,125
Marriot International Incorporated 14,000 687,750
Mirage Resorts Incorporated (a) 25,000 1,159,375
2,335,250
Business Services - 11.2%
Automatic Data Processing
Incorporated 15,000 581,250
CUC International Incorporated (a) 20,000 647,500
First Data Corporation 13,000 900,250
2,129,000
Electronics - 11.0%
Intel Corporation 13,000 764,563
Molex Incorporated 19,000 631,750
Motorola Incorporated 13,000 705,250
2,101,563
Financial Services - 9.0%
Countrywide Credit Industries
Incorporated 25,000 525,000
Merrill Lynch & Company
Incorporated 11,000 633,875
Schwab (Charles) Corporation 22,000 561,000
1,719,875
Software - 8.7%
Autodesk Incorporated 9,000 318,375
Broderbund Software Incorporated (a) 7,000 316,750
Intuit 5,000 333,750
Microsoft Corporation (a) 7,000 690,812
1,659,687
Industrial Machinery - 8.6%
Briggs & Stratton Corporation 20,000 857,500
Cincinnati Milacron Incorporated 2,000 57,500
Magna International Incorporated 18,000 713,250
1,628,250
Communication Services - 8.4%
Silver King Communications
Incorporated (a) 30,000 862,500
Tele Communications Incorporated (a) 35,000 735,000
1,597,500
Computers & Business Equipment - 7.1%
Cisco Systems Incorporated (a) 14,000 665,000
Dell Computer Corporation (a) 20,000 687,500
1,352,500
Automobiles - 4.0%
General Motors Corporation 15,000 768,750
Insurance - 3.8%
American International Group
Incorporated 4,000 386,500
shares value
20th Century Industries 20,000 $ 337,500
724,000
Leisure Time - 3.8%
Disney (Walt) Company 11,000 720,500
Plastics - 3.5%
Illinois Tool Works Incorporated 10,000 658,750
Drugs & Health Care - 2.9%
Columbia / HCA Healthcare
Corporation 10,000 547,500
Aerospace- 2.4%
Boeing Company 5,500 446,188
Telecommunications - 2.0%
Airtouch Communications
Incorporated (a) 12,500 387,500
TOTAL COMMON STOCKS
(Cost $18,345,245) 18,776,813
principal
amount value
REPURCHASE AGREEMENT - 1.0% State Street Bank and Trust Company, 5.25%, due
03/01/1996 (collateralized by $205,000 par value U.S. Treasury Notes, 5.75%, due
08/15/1996, with a value of $201,193)
(Cost $195,000) $195,000195,000 TOTAL INVESTMENTS - 99.7% (Cost $18,540,245*)
18,971,813 OTHER ASSETS LESS LIABILITIES - 0.3% 59,616 NET ASSETS - 100.0%
$19,031,429 (a) non-income producing security *Aggregate cost for Federal tax
purposes. Aggregate gross unrealized appreciation for all securities in which
there is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost over
value were $1,043,931 and $612,363, respectively, resulting in net unrealized
appreciation of 431,568.
#
See notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund February 29, 1996 (unaudited)
shares value
COMMON STOCKS - 63.8%
Drugs & Health Care - 6.1%
Abbott Labs 740 $ 30,895
Allergan Incorporated 60 2,235
Alza Corporation (a) 77 2,560
American Home Products Corporation 289 28,466
Amgen Incorporated (a) 247 14,758
Bard (C R) Incorporated 49 1,758
Bausch & Lomb Incorporated 53 2,060
Baxter International Incorporated 258 11,804
Becton Dickinson & Company 61 5,002
Beverly Enterprises Incorporated (a) 92 1,116
Biomet Incorporated (a) 107 2,033
Bristol Myers Squibb Company 473 40,264
Columbia / HCA Healthcare Corporation 414 22,667
Community Psychiatric Centers 41 379
Johnson & Johnson 602 56,287
Lilly (Eli) & Company 514 31,097
Manor Care Incorporated 58 2,226
Medtronic Incorporated 216 12,393
Merck & Company Incorporated 1,153 76,386
Pfizer Incorporated 589 38,800
Pharmacia & Upjohn Incorporated 449 18,802
Schering Plough Corporation 347 19,475
St. Jude Medical Incorporated (a) 64 2,416
Tenet Healthcare Corporation (a) 186 4,162
United Healthcare Corporation 162 10,571
United States Healthcare Incorporated 144 7,020
United States Surgical Corporation 53 1,504
Warner Lambert Company 126 12,458
459,594
Oil - 4.6%
Amerada Hess Corporation 87 4,481
Amoco Corporation 463 32,178
Ashland Incorporated 59 2,161
Atlantic Richfield Company 150 16,425
Chevron Corporation 608 33,820
Exxon Corporation 1,158 92,061
Kerr McGee Corporation 48 2,862
Louisiana Land & Exploration Company 31 1,294
Mobil Corporation 369 40,452
Pennzoil Company 43 1,645
Phillips Petroleum Company 244 8,540
Royal Dutch Petroleum Company 500 68,875
Sun Incorporated 70 2,039
Tenneco Incorporated 169 9,443
Texaco Incorporated 242 19,299
Unocal Corporation 230 6,900
USX Marathon Group 277 5,124
347,599
shares value
Telecommunications - 4.4%
Airtouch Communications
Incorporated (a) 461 $ 14,291
Alltel Corporation 176 5,852
Ameritech Corporation 517 29,792
AT & T Corporation 1,479 94,102
Bell Atlantic Corporation 407 26,913
Bellsouth Corporation 926 36,924
GTE Corporation 904 38,759
MCI Communications Corporation 632 18,486
NYNEXCorporation 398 20,497
Pacific Telesis Group 399 11,272
Sprint Corporation 325 13,975
United States West Communications
Group 439 14,377
United States West Media Group (a) 439 9,164
334,404
Banking - 4.0%
Banc One Corporation 405 14,421
Bank New York Incorporated 179 9,286
Bank of Boston Corporation 104 5,057
Bankamerica Corporation 349 24,866
Bankers Trust New York Corporation 73 4,718
Barnett Banks Incorporated 91 5,687
Boatmens Bancshares Incorporated 117 6,555
Chase Manhattan Corporation 163 12,143
Chemical Banking Corporation 235 16,832
Citicorp 421 32,838
Comerica Incorporated 100 3,888
Corestates Financial Corporation 130 5,590
First Bank Systems Incorporated 100 5,762
First Chicago NBD Corporation 297 12,882
First Interstate Bancorp 71 11,600
First Union Corporation 261 15,790
Keycorp 212 7,976
MBNA Corporation 207 5,848
Mellon Bank Corporation 137 7,655
Morgan (J P) & Company Incorporated 175 14,328
National City Corporation 137 4,761
Nationsbank Corporation 253 18,659
Norwest Corporation 303 11,059
PNC Bank Corporation 315 9,647
Republic New York Corporation 52 3,114
Suntrust Banks Incorporated 107 7,691
United States Bancorp 142 4,384
Wachovia Corporation 160 7,440
Wells Fargo & Company 45 11,098
301,575
Food & Beverages - 3.8%
Archer Daniels Midland Company 505 9,721
Campbell Soup Company 233 14,388
Coca Cola Company 1,176 94,962
shares value
Food & Beverages - continued
Conagra Incorporated 229 $ 9,647
CPC International Incorporated 136 9,418
General Mills Incorporated 148 8,510
Heinz (H J) Company 340 11,560
Hershey Foods Corporation 72 5,427
Kellogg Company 204 15,402
Pepsico Incorporated 734 46,425
Pioneer Hawaii Bred International
Incorporated 78 4,202
Quaker Oats Company 125 4,297
Ralston Purina Company 97 6,499
Sara Lee Corporation 447 14,472
Sysco Corporation 170 5,589
Unilever N V 149 20,040
Whitman Corporation 98 2,279
Wrigley (Wm ) Junior Company 108 6,345
289,183
Computers & Business Equipment - 2.8%
3Com Corporation (a) 150 7,331
Amdahl Corporation (a) 111 930
Bay Networks Incorporated 180 7,335
Cabletron Systems Incorporated (a) 67 5,033
Ceridian Corporation (a) 43 1,849
Cisco Systems Incorporated (a) 506 24,035
Compaq Computer Corporation (a) 246 12,454
Cray Research Incorporated (a) 24 681
Data General Corporation (a) 35 591
Digital Equipment Corporation (a) 137 9,864
Hewlett Packard Company 477 48,058
Intergraph Corporation (a) 43 796
International Business Machines 530 64,991
Pitney Bowes Incorporated 141 6,803
Tandem Computers Incorporated (a) 108 1,039
Tandy Corporation 61 2,669
Unisys Corporation (a) 160 980
Xerox Corporation 100 13,025
208,464
Retail - 2.3%
Charming Shoppes Incorporated 96 402
Circuit City Stores Incorporated 90 2,666
Dayton Hudson Corporation 67 4,983
Dillard Department Stores Incorporated 105 3,281
Federated Department Stores
Incorporated (a) 200 6,050
Gap Incorporated 134 7,186
Handleman Company 31 155
Home Depot Incorporated 444 19,203
K Mart Corporation 428 2,996
Limited Incorporated 333 5,827
Longs Drug Stores Corporation 19 855
Lowes Companies Incorporated 149 4,619
shares value
May Department Stores Company 232 $ 10,817
Melville Corporation 98 3,124
Mercantile Stores Incorporated 34 1,781
Nordstrom Incorporated 77 3,475
Penney (J C) Incorporated 212 10,070
Pep Boys Manny Moe & Jack 57 1,710
Price Costco Incorporated (a) 182 3,140
Rite Aid Corporation 78 2,457
Sears Roebuck & Company 363 16,471
Supervalu Incorporated 64 2,064
TJX Companies Incorporated 68 1,513
Toys R Us Incorporated (a) 258 6,160
Wal Mart Stores Incorporated 2,142 45,517
Walgreen Company 230 7,590
Woolworth Corporation 124 1,488
175,600
Electrical Equipment - 2.2%
Boston Scientific Corporation (a) 141 6,768
Cooper Industries Incorporated 100 3,862
Emerson Electric Company 209 16,276
General Electric Company 1,580 119,290
General Signal Corporation 44 1,601
Grainger (WW) Incorporated 47 3,214
Johnson Controls Incorporated 38 2,726
Millipore Corporation 42 1,864
National Service Industries Incorporated 45 1,569
Raychem Corporation 41 2,660
Westinghouse Electric Corporation 366 6,771
166,601
Electronics - 2.1%
Advanced Micro Devices Incorporated (a) 97 1,879
AMP Incorporated 203 8,653
Andrew Corporation (a) 36 1,872
Apple Computer 113 3,108
DSC Communications Corporation (a) 107 3,263
EG & G Incorporated 49 1,170
Harris Corporation Delaware 36 2,394
Honeywell Incorporated 119 6,307
Intel Corporation 768 45,168
Loral Corporation 160 7,540
LSI Logic Corporation (a) 150 4,144
Micron Technology Incorporated 192 6,144
Motorola Incorporated 550 29,837
National Semiconductor Corporation (a) 115 1,797
Perkin Elmer Corporation 39 1,794
Raytheon Company 228 11,428
Scientific Atlanta Incorporated 72 1,206
Silicon Graphics Incorporated (a) 148 3,700
Tektronix Incorporated 31 1,407
Teledyne Incorporated 52 1,463
Tellabs Incorporated (a) 82 3,874
Texas Instruments Incorporated 175 8,728
shares value
Electronics - continued
Thomas & Betts Corporation 18 $ 1,296
158,172
Electric Utilities - 2.1%
American Electric Power Incorporated 173 7,417
Baltimore Gas & Electric Company 138 3,916
Carolina Power & Light Company 145 5,292
Central & South West Corporation 179 4,967
Cinergy Corporation 145 4,332
Consolidated Edison Company
New York Incorporated 219 7,145
Detroit Edison Company 137 5,583
Dominion Resources
Incorporated Virginia 162 6,399
Duke Power Company 191 9,335
Edison International (a) 416 7,280
Entergy Corporation 212 6,015
FPL Group Incorporated 173 7,720
General Public Utilities Corporation 108 3,605
Houston Industries Incorporated 244 5,520
Niagara Mohawk Power Corporation 135 1,013
Northern States Power Company
Minnesota 63 3,103
Ohio Edison Company 142 3,373
P P & L Resources Incorporated 100 2,488
Pacific Gas & Electric Company 396 10,147
Pacificorp 265 5,499
Peco Energy Company 207 5,848
Public Service Enterprise Group 228 6,412
Southern Company 621 14,826
Texas Utilities Company 211 8,519
Unicom Corporation 200 6,400
Union Electric Company 95 4,014
156,168
Financial Services - 2.1%
Allstate Corporation 418 17,922
American Express Company 455 20,930
Beneficial Corporation 49 2,548
Case Corporation 70 3,719
Dean Witter Discover & Company 157 8,439
Federal Home Loan Mortgage
Corporation 169 13,942
Federal National Mortgage Association 1,016 32,131
Fleet Financial Group Incorporated 239 9,829
Household International Incorporated 91 6,120
Merrill Lynch & Company Incorporated 164 9,450
Morgan Stanley Group Incorporated 144 6,750
Salomon Incorporated 99 3,774
Travelers Group Incorporated 298 19,929
155,483
Chemicals - 1.9%
Air Products & Chemicals Incorporated 104 5,538
shares value
Dow Chemical Company 251 $ 20,143
Du Pont (E I) De Nemours & Company 517 39,550
Eastman Chemical Company 76 5,472
First Mississippi Corporation 19 496
FMC Corporation (a) 34 2,482
Goodrich (B F) Company 24 1,827
Grace (W R) & Company 88 6,072
Great Lakes Chemical Corporation 60 4,290
Hercules Incorporated 104 6,240
Mallinckrodt Group Incorporated 71 2,787
Monsanto Company 107 14,405
Morton International Incorporated 138 5,227
Nalco Chemical Company 63 2,000
PPG Industries Incorporated 189 8,765
Praxair Incorporated 129 4,450
Rohm & Haas Company 63 4,386
Sigma Aldrich 46 2,634
Union Carbide Corporation 128 5,760
142,524
Insurance - 1.8%
Aetna Life & Casualty Company 106 8,016
Alexander & Alexander Services 41 764
American General Corporation 191 6,948
American International Group
Incorporated 442 42,708
Chubb Corporation 81 7,867
Cigna Corporation 68 8,058
General Re Corporation 76 10,934
Highlands Insurance Group Incorporated 10 204
ITT Hartford Group Incorporated (a) 108 5,562
Jefferson Pilot Corporation 66 3,671
Lincoln National Corporation
Incorporated 88 4,840
Loews Corporation 110 9,350
Marsh & McLennan Companies
Incorporated 68 6,605
Providian Corporation 89 4,116
Safeco Corporation 118 4,307
St. Paul Companies Incorporated 79 4,473
Torchmark Incorporated 67 3,107
Transport Holdings Incorporated (a) 1 44
Unum Corporation 68 4,004
US Life Corporation 32 968
USF & G Corporation 104 1,560
138,106
Household Appliances & Products - 1.6%
Bassett Furniture Industries Incorporated 13 335
Black & Decker Corporation 80 2,700
Clorox Company 50 4,237
Colgate Palmolive Company 136 10,642
Corning Incorporated 214 6,955
Gillette Company 413 22,354
shares value
Household Appliances & Products - continued
Maytag Corporation 100 $ 1,962
Newell Company 148 4,107
Procter & Gamble Company 641 52,562
Rubbermaid Incorporated 147 4,134
Snap-On Incorporated 38 1,701
Stanley Works 41 2,316
Whirlpool Corporation 69 3,838
Zenith Electronics Corporation (a) 20 138
117,981
Software - 1.3%
Autodesk Incorporated 44 1,557
Computer Associates International
Incorporated 224 15,400
Mentor Graphics Corporation 80 1,140
Microsoft Corporation (a) 546 53,883
Novell Incorporated (a) 344 4,192
Oracle Systems Corporation (a) 404 21,008
Shared Medical Systems Corporation 22 1,227
98,407
Aerospace & Defense - 1.3%
Boeing Company 319 25,879
Computer Sciences Corporation (a) 52 3,796
General Dynamics Corporation 59 3,518
Lockheed Martin Corporation 187 14,259
McDonnell Douglas Corporation 105 9,266
Northrop Grumman Corporation 46 2,841
Rockwell International Corporation 202 11,514
Sun Microsystems Incorporated (a) 178 9,345
TRW Incorporated 61 5,284
United Technologies Corporation 115 12,362
98,064
Tobacco - 1.2%
American Brands Incorporated 176 7,986
Philip Morris Companies Incorporated 783 77,517
Schweitzer-Mauduit International
Incorporated (a) 15 426
UST Incorporated 182 6,461
92,390
Automobiles - 1.2%
Chrysler Corporation 357 20,126
Ford Motor Company 1,002 31,313
General Motors Corporation 697 35,721
Paccar Incorporated 36 1,701
88,861
Paper & Forest Products - 0.9%
Alco Standard Corporation 104 4,927
Boise Cascade Corporation 45 1,586
Champion International Corporation 90 3,600
Federal Paper Board Incorporated 43 2,295
Georgia Pacific Corporation 85 5,366
International Paper Company 237 8,443
shares value
James River Corporation Virginia 77 $2,031
Kimberly Clark Corporation 259 19,781
Louisiana Pacific Corporation 101 2,336
Mead Corporation 50 2,500
Potlatch Corporation 27 1,110
Stone Container Corporation 89 1,224
Union Camp Corporation 65 3,031
Westvaco Corporation 94 2,726
Weyerhaeuser Company 190 8,051
Willamette Industries Incorporated 51 2,677
71,684
Leisure Time - 0.9%
Bally Entertainment Group (a) 44 682
Bally Total Fitness Holding Corporation 11 47
Brunswick Corporation 89 2,036
Disney (Walt) Company 781 51,169
Harrahs Entertainment Incorporated (a) 96 2,604
ITT Corporation (a) 108 6,520
King World Productions Incorporated (a) 34 1,424
Outboard Marine Corporation 19 385
64,867
Business Services - 0.8%
Automatic Data Processing Incorporated 268 10,385
Block (H & R) Incorporated 98 3,467
CUC International Incorporated (a) 162 5,245
De Luxe Corporation 77 2,474
Donnelley (R R) & Sons Company 143 5,148
Ecolab Incorporated 60 1,822
First Data Corporation 211 14,612
Humana Incorporated (a) 200 4,900
Interpublic Group Companies
Incorporated 73 3,075
Ogden Corporation 46 983
Safety Kleen Corporation 54 783
Service Corporation International 90 4,084
56,978
Communication Services - 0.7%
Northern Telecom Limited 237 11,258
SBC Communications Incorporated 568 31,169
Tele Communications Incorporated (a) 609 12,789
55,216
Hotels & Restaurants - 0.7%
Darden Restaurants Incorporated 147 1,801
Dial Corporation Delaware 87 2,610
Hilton Hotels Corporation 45 4,219
Luby's Cafeterias Incorporated 22 456
Marriot International Incorporated 117 5,747
McDonald's Corporation 648 32,400
Ryan's Family Steak Houses
Incorporated (a) 50 331
Shoney's Incorporated (a) 39 327
shares value
Hotels & Restaurants -continued
Wendy's International Incorporated 95 $1,722
49,613
Conglomerates - 0.7%
Allied Signal Incorporated 264 14,685
Harcourt General Incorporated 68 2,950
Minnesota Mining & Manufacturing
Company 392 25,529
Textron Incorporated 79 6,221
49,385
Railroads & Equipment - 0.6%
Burlington Northern Santa Fe 132 10,560
Conrail Incorporated 73 5,265
CSX Corporation 196 8,796
Norfolk Southern Corporation 122 9,943
Union Pacific Corporation 191 12,606
47,170
Gold & Mining - 0.5%
Barrick Gold Corporation 329 9,952
Cyprus Amax Minerals Company 86 2,225
Echo Bay Mines Limited 105 1,444
First Mississippi Corporation (a) 13 351
Freeport McMoRan Copper & Gold 190 6,199
Homestake Mining Company 129 2,500
Newmont Mining Corporation 80 4,550
Phelps Dodge Corporation 65 3,973
Placer Dome Incorporated 223 6,300
Santa Fe Pacific Gold Corporation 122 1,906
39,400
Gas & Pipeline Utilities - 0.5%
Coastal Corporation 98 3,602
Columbia Gas Systems Incorporated (a) 47 2,056
Consolidated Natural Gas Company 87 3,741
Eastern Enterprises 19 672
Enron Corporation 235 8,607
Enserch Corporation 64 968
Nicor Incorporated 47 1,263
Oneok Incorporated 25 544
Pacific Enterprises 79 2,113
Panhandle Eastern Corporation 140 4,007
Peoples Energy Corporation 33 1,015
Sonat Incorporated 81 2,714
Williams Companies Incorporated 95 4,512
35,814
Petroleum Services - 0.5%
Baker Hughes Incorporated 132 3,481
Dresser Industries Incorporated 170 4,781
Halliburton Company 106 5,817
Helmerich and Payne Incorporated 23 771
McDermott International Incorporated 51 982
Rowan Companies Incorporated (a) 79 859
Schlumberger Limited 226 16,470
shares value
Western Atlas Incorporated (a) 50 $2,631
35,792
Publishing - 0.4%
American Greetings Corporation 69 1,889
Dun & Bradstreet Corporation 158 9,993
Harland (John H) Company 28 626
Jostens Incorporated 36 819
McGraw Hill Companies Incorporated 47 4,107
Meredith Corporation 26 1,141
Time Warner Incorporated 360 15,390
33,965
Industrial Machinery - 0.4%
Applied Materials Incorporated (a) 164 5,863
Briggs & Stratton Corporation 28 1,200
Cincinnati Milacron Incorporated 32 920
Crane Company 28 1,134
Cummins Engine Incorporated 38 1,601
Giddings & Lewis Incorporated Wisconsin 32 536
Ingersoll Rand Company 99 4,047
ITT Industries Incorporated 108 2,835
Nacco Industries Incorporated 8 446
Pall Corporation 107 2,916
Parker Hannifin Corporation 69 2,424
Timken Company 29 1,305
Trinova Corporation 27 813
Tyco Interest Limited 142 5,130
Varity Corporation (a) 38 1,434
32,604
Liquor - 0.4%
Anheuser-Busch Companies Incorporated 238 16,035
Brown-Forman Corporation 64 2,504
Coors (Adolph) Company 36 698
Seagram Limited 347 11,928
31,165
Newspapers - 0.3%
Dow Jones & Company Incorporated 90 3,510
Gannett Incorporated 131 8,908
Knight Ridder Incorporated 46 3,185
New York Times Company 90 2,475
Times Mirror Company 105 3,570
Tribune Company 61 4,072
25,720
Retail Grocery - 0.3%
Albertsons Incorporated 237 8,769
American Stores Company 138 4,019
Fleming Companies Incorporated 35 700
Giant Foods Incorporated 55 1,808
Great Atlantic & Pacific Tea Incorporated 36 810
Kroger Company (a) 114 4,233
Winn Dixie Stores Incorporated 140 4,795
25,134
shares value
Photography - 0.3%
Eastman Kodak Company 319 $22,809
Polaroid Corporation 42 1,848
24,657
Pollution Control - 0.3%
Browning Ferris Industries Incorporated 199 5,895
Laidlaw Incorporated 259 2,525
WMX Technologies Incorporated 452 12,882
Zurn Industries Incorporated 12 260
21,562
Construction & Mining Equipment - 0.3%
Caterpillar Incorporated 186 12,439
Dover Corporation 106 4,717
Foster Wheeler Corporation 33 1,452
Harnischfeger Industries Incorporated 45 1,704
20,312
Apparel & Textiles - 0.3%
Brown Group Incorporated 17 210
Fruit Of The Loom Incorporated (a) 71 1,802
Liz Claiborne 70 2,196
Nike Incorporated 134 8,693
Reebok International Limited 73 1,925
Russell Corporation 36 1,008
Springs Industries Incorporated 19 822
Stride Rite Corporation 46 374
V F Corporation 60 3,225
20,255
Aluminum - 0.2%
Alcan Aluminum Limited 210 6,405
Aluminum Company America 166 9,420
Reynolds Metals Company 59 3,046
18,871
Broadcasting - 0.2%
Comcast Corporation 224 4,396
Viacom Incorporated (a) 337 13,227
17,623
Air Travel - 0.2%
AMR Corporation (a) 71 6,230
Delta Air Lines Incorporated 47 3,666
Southwest Airlines Company 134 4,121
US Air Group Incorporated (a) 58 979
14,996
Gas Exploration - 0.2%
Burlington Resources Incorporated 118 4,292
Noram Energy Corporation 116 1,044
Occidental Petroleum Corporation 297 6,831
Oryx Energy Company (a) 96 1,236
Santa Fe Energy Resources Incorporated (a) 84 777
14,180
Auto Parts - 0.2%
Dana Corporation 94 2,844
shares value
Eaton Corporation 73 $4,225
Echlin Incorporated 56 1,897
Genuine Parts Company 114 4,873
13,839
Steel - 0.2%
Armco Incorporated (a) 99 557
Bethlehem Steel Corporation (a) 103 1,416
Inland Steel Industries Incorporated 45 1,097
Nucor Corporation 82 4,418
USX United States Steel 76 2,489
Worthington Industries Incorporated 85 1,827
11,804
Construction Materials - 0.2%
Armstrong World Industries Incorporated 35 2,052
Masco Corporation 148 4,218
Owens Corning Fiberglas Corporation (a) 47 1,909
Sherwin Williams Company 80 3,390
11,569
Cosmetics & Toiletries - 0.1%
Alberto Culver Company 26 920
Avon Products Incorporated 64 5,144
International Flavours 104 5,213
11,277
Plastics - 0.1%
Illinois Tool Works Incorporated 109 7,180
Premark International Incorporated 59 3,090
10,270
Toys & Amusements - 0.1%
Hasbro Incorporated 82 2,829
Mattel Incorporated 207 6,883
9,712
Agricultural Machinery - 0.1%
Deere & Company 243 9,507
Trucking & Freight Forwarding - 0.1%
Caliber Systems Incorporated (a) 36 1,521
Consolidated Freightways Incorporated 40 980
Federal Express Corporation (a) 52 3,848
Navistar International Corporation
Incorporated (a) 70 709
Roadway Services Incorporated 18 270
Ryder Systems Incorporated 73 1,834
Yellow Corporation 26 287
9,449
Tires & Rubber - 0.1%
Cooper Tire & Rubber Company 78 1,979
Goodyear Tire & Rubber Company 142 6,745
8,724
Containers & Glass - 0.1%
Ball Corporation 28 840
Bemis Incorporated 48 1,470
shares value
Containers & Glass - continued
Crown Cork & Seal Incorporated (a) 84 $ 3,959
Temple Inland Incorporated 52 2,093
8,362
Savings And Loan - 0.1%
Ahmanson H F & Company 109 2,480
Golden West Financial Corporation 55 2,784
Great Western Financial Corporation 127 2,905
8,169
Non-Ferrous Metals - 0.1%
Asarco Incorporated 39 1,165
Engelhard Corporation 134 2,730
Inco Limited 111 3,538
7,433
Building Construction - 0.1%
Centex Corporation 26 747
Fluor Corporation 77 5,169
Kaufman & Broad Home Corporation 30 461
Morrison Knudsen Corporation 31 58
Pulte Corporation 25 747
7,182
Office Furnishings & Supplies - 0.1%
Avery Dennison Corporation 50 2,694
Moore Corporation Limited 93 1,825
4,519
Mobile Homes - 0.0%
Fleetwood Enterprises Incorporated 43 1,156
Miscellaneous - 4.7%
S & P Depositary Receipt Trust 5,600 357,700
TOTAL COMMON STOCKS
(Cost $4,429,707) 4,826,811
PREFFERED STOCK - 0.0%
Teledyne Incorporated
(Cost $0) 1 8
interest maturity principal
rate date amount value
COMMERCIAL PAPER - DOMESTIC - 28.9%
American Telephone & Telegraph Company
5.530% 03/14/1996 $300,000299,401
Associates Corporation North American
5.500% 03/15/1996 300,000299,358
Cargill Incorporated
5.370% 03/11/1996 345,000344,485
General Electric Capital Corporation
5.340% 03/14/1996 100,00099,807
General Electric Capital Corporation
5.530% 03/15/1996 400,000399,140
Merrill Lynch & Company Incorporated
5.400% 03/15/1996 400,000399,160
interest maturity principal
rate date amount value
USAA Capital Corporation
5.350% 03/18/1996 $345,000 $344,129
TOTAL COMMERCIAL PAPER - DOMESTIC
(Cost $2,185,480) 2,185,480
COMMERCIAL PAPER - FOREIGN - 4.0%
Canadian Wheat Board
(Cost $299,678)
5.520% 03/08/1996 300,000 299,678
U.S. GOVERNMENT SECURITIES - 1.2%
United States Treasury Bills
5.280% 03/07/1996 10,000 9,991
United States Treasury Bills**
4.930% 03/14/1996 35,000 34,938
United States Treasury Bills**
5.150% 03/21/1996 45,000 44,871
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $89,800) 89,800
TOTAL INVESTMENTS - 99.0%
(Cost $7,004,665*) 7,401,777
OTHER ASSETS LESS LIABILITIES - 1.0% 77,090
NET ASSETS - 100.0% $7,478,867
(a) non-income producing security
Schedule of Futures Contracts
number of contract total contractunrealized
contracts description value gain (loss)
8 S&P 500 $2,577,000 $56,000
June 1996 (long)
*Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $491,849 and $94,737,
respectively. Net unrealized appreciation for tax purposes is $397,112.
**$80,000 par value of U.S. Treasury Bills has been pledged as collateral for
initial margin for futures contracts.
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Index Fund February 29, 1996 (unaudited) - Continued
#
See notes to financial statements.
Schedule of Investments
Transamerica Premier Index Fund February 29, 1996 (unaudited) - Continued
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Index Fund February 29, 1996 (unaudited) - Continued
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Index Fund February 29, 1996 (unaudited) - Continued
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Index Fund February 29, 1996 (unaudited) - Continued
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Index Fund February 29, 1996 (unaudited) - Continued
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Bond Fund February 29, 1996 (unaudited)
interest maturity principal market
rate date amount value
CORPORATE BONDS - 60.6% Finance & Banking - 11.0% Bank of Boston Corporation
6.625% 12/01/2005 $400,000 $391,340
First Union Corporation
6.875% 09/15/2005 400,000403,392
Ford Motor Credit Company
6.375% 10/06/2000 500,000502,020
1,296,752
Electric Utilities - 8.2%
Commonwealth Edison Company
7.000% 07/01/2005 300,000299,301
Gulf States Utilities Company
8.250% 04/01/2004 400,000416,928
Northern States Power Company Minnesota
7.125% 07/01/2025 250,000248,370
964,599
Drugs & Health Care - 7.3%
American Home Products Corporation
7.900% 02/15/2005 400,000434,896
Tenet Healthcare Corporation
8.625% 12/01/2003 430,000418,000
852,896
Other Utilities - 7.2%
Arkla Incorporated
8.900% 12/15/2006 400,000429,148
Hydro Quebec
7.375% 02/01/2003 400,000415,980
845,128
Industrials - 4.2%
Mallinckrodt Group Incorporated
6.750% 09/15/2005 500,000499,205
Petroleum Services - 4.0%
Anadarko Petroleum Corporation
5.875% 10/15/2003 500,000473,040
Aerospace & Defense - 4.0%
Boeing Company
8.625% 11/15/2031 400,000472,816
Automobiles - 3.9%
General Motors Corporation
9.625% 12/01/2000 400,000453,704
Liquor - 3.4%
Anheuser Busch Companies Incorporated
7.250% 09/15/2015 400,000398,520
Gas Exploration - 3.0%
Burlington Resources Incorporated
9.125% 10/01/2021 300,000356,448
Containers & Glass - 2.3%
Riverwood International Corporation
11.250% 06/15/2002 250,000276,250
interest maturity principal market
rate date amount value
Retail - 2.1%
Pathmark Stores Incorporated
9.625% 05/01/2003$ 250,000 $240,000
TOTAL CORPORATE BONDS
(Cost $6,752,198) 7,129,358
GOVERNMENT AND AGENCY SECURITIES - 32.2%
United States Treasury Bonds
7.625% 02/15/2025700,000 792,421
United States Treasury Notes
6.500% 05/15/2005 1,500,0001,535,160
United States Treasury Notes
6.500% 08/15/2005 300,000306,891
United States Treasury Notes
5.875% 11/15/2005 1,180,0001,155,845
TOTAL GOVERNMENT AND AGENCY SECURITIES
(Cost $3,838,744) 3,790,317
REPURCHASE AGREEMENT - 5.7%
State Street Bank and Trust Company, 4.75%, due 03/01/1996, (collateralized by
$700,000 par value U.S. Treasury Notes, 5.75%, due 08/15/1996, with a value of
$687,001)
(Cost $670,000) 670,000670,000
TOTAL INVESTMENTS - 98.5%
(Cost $11,675,609*) 11,589,675
OTHER ASSETS LESS LIABILITIES - 1.5% 171,740
NET ASSETS - 100.0% $11,761,415
*Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $25,099 and $111,033,
respectively, resulting in net unrealized depreciation of $85,934.
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Balanced Fund February 29, 1996 (unaudited)
shares value
COMMON STOCKS - 59.7%
Software - 9.0%
Autodesk Incorporated 9,000 $ 318,375
Broderbund Software Incorporated (a) 5,000 226,250
Intuit (a) 4,000 333,750
Microsoft Corporation (a) 3,000 296,063
1,174,438
Financial Services - 6.8%
Franklin Resources Incorporated 4,500 259,312
Schwab (Charles) Corporation 10,000 255,000
Wells Fargo and Company 1,500 369,938
884,250
Electronics - 6.5%
Intel Corporation 6,500 382,281
Molex Incorporated 6,000 199,500
Motorola Incorporated 5,000 271,250
853,031
Hotels & Restaurants - 6.2%
Host Marriott Corporation (a) 10,000 130,000
Host Marriott Services Corporation 2,000 13,250
Marriot International Incorporated 5,500 270,188
Mirage Resorts Incorporated (a) 8,500 394,187
807,625
Business Services - 4.9%
First Data Corporation 6,500 450,125
Transaction Systems Architects
Incorporated (a) 5,500 193,875
644,000
Communication Services - 4.5%
Silver King Communications
Incorporated (a) 10,000 287,500
Tele Communications Incorporated (a) 14,000 294,000
581,500
Computers & Business Equipment - 4.4%
Cisco Systems Incorporated (a) 7,000 332,500
Dell Computer Corporation (a) 7,000 240,625
573,125
Leisure Time - 3.5%
Disney (Walt) Company 7,000 458,500
Industrial Machinery - 2.6%
Briggs & Stratton Corporation 8,000 343,000
Electrical Equipment - 2.2%
Millipore Corporation 6,500 288,437
Drugs & Health Care - 2.0%
United Healthcare Corporation 4,000 261,000
Toys & Amusements - 1.9%
Mattel Incorporated 7,500 249,375
shares value
Plastics - 1.8%
Illinois Tool Works Incorporated 3,500 $ 230,563
Telecommunications - 1.7%
Airtouch Communications
Incorporated (a) 7,000 217,000
Household Appliances & Products - 1.7%
Gillette Company 4,000 216,500
TOTAL COMMON STOCKS
(Cost $7,306,463) 7,782,344
interest maturity principal market
rate date amount value
CORPORATE BONDS - 21.1% Finance & Banking - 4.7% First Union Corporation
6.875% 09/15/2005 $300,000302,544
General Motors Acceptance Corporation
7.375% 05/28/1999 300,000311,247
613,791
Electric Utilities - 4.7%
Commonwealth Edison Company
7.000% 07/01/2005 300,000299,301
Gulf States Utilities Company
8.250% 04/01/2004 300,000312,696
611,997
Industrials - 2.5%
American Home Products Corporation
7.900% 02/15/2005 300,000326,172
Gas & Pipeline Utilities - 2.4%
Williams Companies Incorporated
7.500% 09/15/1999 300,000307,986
Retail - 2.2%
Dayton Hudson Corporation
6.400% 02/15/2003 300,000291,312
Petroleum Services - 2.2%
Anadarko Petroleum Corporation
5.875% 10/15/2003 300,000283,824
Other Utilities - 1.6%
Arkla Incorporated
8.900% 12/15/2006 200,000214,574
Broadcasting - 0.8%
Viacom Incorporated
7.750% 06/01/2005 100,000101,345
TOTAL CORPORATE BONDS
(Cost $2,770,412) 2,751,001
interest maturity principal market
rate date amount value
U.S. GOVERNMENT SECURITIES - 13.4%
United States Treasury Notes
6.375% 08/15/2002$ 400,000 $409,624
United States Treasury Notes
5.875% 11/15/2005 1,370,0001,341,956
TOTAL U.S. GOVERNMENT SECURITIES
(Cost $1,796,952) 1,751,580
principal
amount value
REPURCHASE AGREEMENT - 5.2% State Street Bank and Trust Company, 4.75%, due
03/01/1996 (collateralized by $715,000 par value U.S. Treasury Notes, 5.75%, due
08/15/1996, with a value of $701,722)
(Cost $686,000) 686,000 686,000
TOTAL INVESTMENTS - 99.4%
(Cost $12,559,827*) 12,970,925
OTHER ASSETS LESS LIABILITIES - 0.6% 72,722
NET ASSETS - 100.0% $13,043,647
(a) non-income producing security
*Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $809,498 and $398,400,
respectively, resulting in net unrealized appreciation of $411,098.
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Balanced Fund February 29, 1996 (unaudited) - Contin
ued
#
See notes to financial statements.
Schedule of Investments
Transamerica Premier Short-Intermediate Government Fund February 29, 1996
(unaudited)
<TABLE>
<CAPTION>
issuer interest maturity
principal
rate date
amount
value
U.S. Government Securities - 98.1%
<S> <C> <C> <C> <C>
United States Treasury Notes 5.125% 06/30/1998 $515,000
$
510,895
United States Treasury Notes 5.625% 11/30/2000 175,000
174,043
United States Treasury Notes 6.250% 08/31/2000 500,000
510,000
United States Treasury Notes 6.375% 07/15/1999 1,400,000
1,432,592
United States Treasury Notes 6.500% 08/15/2005 300,000
306,891
United States Treasury Notes 6.875% 03/31/2000
436,000
454,460
TOTAL U.S. GOVERNMENT
SECURITIES
</TABLE>
(Cost $3,408,896)
3,388,881
TOTAL INVESTMENTS -
98.1%
(Cost $3,408,896*)
3,388,881
OTHER ASSETS LESS LIABILITIES -
1.9%
66,397
NET ASSETS - 100.0%
$3,455,278
*Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $8,311 and $28,326, respectively,
resulting in net unrealized depreciation of $20,015.
See notes to financial statements.
#
Schedule of Investments
Transamerica Premier Cash Reserve Fund February 29, 1996 (unaudited)
interest maturity principal
rate date amount value
COMMERCIAL PAPER - DOMESTIC - 83.3% Consumer Financial Services - 16.7% Ford
Motor Credit Company
5.350% 04/12/1996$ 950,000 $944,070
Motorola Credit Corporation
5.160% 04/04/1996 1,300,0001,293,665
Toyota Motor Credit Company
5.330% 03/22/1996 1,200,0001,196,269
USAA Capital Corporation
5.330% 03/27/1996 1,250,0001,245,188
4,679,192
Commercial Financial Services - 14.2%
Associates Corporation North American
5.210% 03/04/1996 1,100,0001,099,522
Associates Corporation North American
5.500% 04/02/1996 300,000298,533
Corporate Asset Funding Corporation
5.600% 03/01/1996 1,300,0001,300,000
General Electric Capital Corporation
5.500% 04/12/1996 1,100,0001,092,942
General Electric Capital Corporation
5.450% 05/02/1996 200,000198,123
3,989,120
Finance & Banking - 8.3%
Deere (John) Capital Corporation
4.625% 09/02/1996 1,000,000997,250
Old Kent Bank & Trust Company
7.860% 12/16/1996 1,300,0001,328,163
2,325,413
Food Processing - 7.3%
Cargill Incorporated
5.020% 05/03/1996 700,000693,850
Cargill Incorporated
5.540% 03/01/1996 350,000350,000
Hershey Foods Corporation
5.250% 04/04/1996 1,000,000995,042
2,038,892
Banking - 6.4%
Morgan (J P) & Company Incorporated
5.620% 04/04/1996 1,000,000994,692
Republic New York Corporation
5.200% 04/30/1996 800,000793,067
1,787,759
Insurance - 4.9%
Prudential Funding Corporation
4.980% 05/24/1996 1,400,0001,383,732
Utilities - 3.8%
Consolidated Natural Gas Company
5.180% 03/21/1996 1,060,0001,056,950
interest maturity principal
rate date amount value
Telecommunications - 3.7%
Ameritech Capital Funding Corporation
5.150% 03/27/1996$ 650,000 $647,582
GTE California Incorporated
5.230% 03/01/1996 400,000400,000
1,047,582
Mining - 3.6%
Minnesota Mining & Manufacturing Company
5.200% 03/26/1996 1,000,000996,389
Drugs & Health Care - 3.5%
Warner Lambert Company
5.530% 04/19/1996 1,000,000992,473
Brokerage - 3.5%
Merrill Lynch & Company Incorporated
5.330% 05/03/1996 1,000,000990,673
Household Products - 3.5%
Proctor & Gamble Company
5.000% 06/14/1996 1,000,000985,417
Electronics - 2.5%
Hewlett Packard Company
5.230% 05/14/1996 695,000687,528
Paper and Forest Products - 1.4%
Kimberly Clark Corporation
5.130% 04/12/1996 400,000397,606
TOTAL COMMERCIAL PAPER - DOMESTIC
(Cost $23,358,726) 23,358,726
COMMERCIAL PAPER - FOREIGN - 12.0%
Banking - 4.9%
Toronto Dominion Holdings
5.070% 05/07/1996 1,400,0001,386,790
Utilities - 3.6%
Ontario Hydro
5.590% 04/09/1996 1,000,000993,944
Government Agency - 3.5%
Province of British Columbia
5.520% 07/03/1996 1,000,000980,987
TOTAL COMMERCIAL PAPER - FOREIGN
(Cost $3,361,721) 3,361,721
CERTIFICATE OF DEPOSIT - 4.9%
CIBC Yankee Certificate of Deposit
(Cost $1,375,000)
5.220% 03/27/1996 1,375,0001,375,000
TOTAL INVESTMENTS - 100.2%
(Cost $28,095,447*) 28,095,447
OTHER ASSETS LESS LIABILITIES - (0.2)% (60,921
NET ASSETS - 100.0% $28,034,526
*Aggregate cost for Federal tax purposes.
)
See notes to financial statements.
#
Financial Statements
Statements of Assets and Liabilities February 29, 1996 (unaudited)
Transamerica
<TABLE>
<CAPTION>
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
Premier Premier Premier Premier Intermediate
Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government
Fund
Fund
Assets
<S> <C> <C> <C> <C> <C>
Investments, at value (Note 4) $18,971,813 $7,401,777 $11,589,675 $12,970,925
$3,388,881 $28,095,447
Cash 843 81,888 739 253
40,802 -
Dividends and interest
receivable 13,261 11,022 209,861 85,054
31,595 46,646
Receivable for fund shares sold 83,919 34,452 950 27,854
380
15,625
Due from Administrator (Note 2) 16,333 21,247 9,994 11,499
16,603 39,718
Total Assets 19,086,169 7,550,386 11,811,219 13,095,585
3,478,261 28,197,436
Liabilities
Payable for fund shares
redeemed 50 - - -
- -
56
Dividends payable - - - -
- -
- -
Variation margin payable - 21,600 - -
- -
- -
Due to custodian - - - -
- -
84,074
Directors fees payable 2,174 703 1,154 1,208
947
2,700
Distribution fees
payable (Note 3) 9,503 2,553 11,408 10,832
1,948 10,419
Service fees payable (Note 3) 45 - 10 21
- -
13
Other accrued expenses 42,968 46,663 37,232 39,877
20,088 65,648
Total Liabilities 54,740 71,519 49,804 51,938
22,983 162,910
Total Net Assets $19,031,429 $7,478,867 $11,761,415 $13,043,647
$3,455,278 $28,034,526
Net Assets
Par value $ 1,853 $683 $1,178 $ 1,252
$
343 $ 28,034
Paid in capital 18,613,581 6,919,235 11,812,958 12,632,601
3,435,800 28,006,492
Undistributed net investment
income (loss) (Note 1) (9,063) 31,001 53,930 30,786
14,311 -
Accumulated net realized
gain (loss) on investments (6,510) 186,837 (20,717) (32,090)
24,839 -
Net unrealized appreciation
(depreciation) of investments 431,568 341,111 (85,934) 411,098
(20,015) -
Total Net Assets $19,031,429 $7,478,867 $11,761,415 $13,043,647
$3,455,278 $28,034,526
Investor Shares:
Net assets $18,893,369 $7,478,636 $11,678,373 $12,876,625
$3,455,064 $27,897,125
Shares outstanding 1,839,766 682,587 1,169,556 1,235,868
342,936 27,897,125
Net asset value and offering
and redemption price
per Investor share $10.27 $10.96 $9.99 $10.42
$10.07
$1.00
Adviser Shares:
Net assets $138,060 $231 $83,042 $167,022
$214
$137,400
Shares outstanding 13,443 21 8,317 16,039
21
137,400
Net asset value and offering
and redemption price
per Adviser share $10.27 $10.95 $9.98 $10.41
$10.08
$1.00
Investments, at cost $18,540,245 $7,004,665 $11,675,609 $12,559,827
$3,408,896 $28,095,447
</TABLE>
See notes to financial statements.
#
Financial Statements
Statements of Operations For the period January 1, 1996 through Febraury 29,
1996 (unaudited)
<TABLE>
<CAPTION>
Transamerica
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
Premier Premier Premier Premier Intermediate
Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government
Fund
Fund
Investment Income
<S> <C> <C> <C> <C> <C>
Interest $ 10,011 $ 22,913 $ 132,587 $ 54,563 $
34,636 $ 258,895
Dividends* 16,355 16,386 - 5,830
- -
- -
TOTAL INCOME 26,366 39,299 132,587 60,393
34,636 258,895
Expenses
Investment Adviser fee (Note 2) 9,972 3,554 11,668 15,268
2,849 15,924
Custodian fees 8,665 2,624 7,130 8,496
1,573 10,872
Audit fees 1,768 891 1,462 1,530
428
3,421
Legal fees 1,551 781 1,283 1,343
376
3,001
Printing expenses 3,403 2,392 4,227 4,059
1,252 8,960
Directors fees and expenses
(Note 2) 2,881 664 831 1,286
838
1,637
Transfer agent fees 17,989 11,049 8,985 11,934
12,315 12,437
Service fees (Note 3) 36 - 7 15
- -
5
Distribution fees -
Investor shares (Note 3) 5,842 1,166 4,854 5,075
1,424 4,463
Distribution fees -
Adviser shares (Note 3) 108 - 23 45
- -
16
Registration fees 6,674 4,270 4,294 4,413
4,194 4,127
Miscellaneous 573 299 477 499
155
1,089
Total operating expenses
before waiver and
reimbursement 59,462 27,690 45,241 53,963
25,404 65,952
Fees waived by Investment
Adviser (Note 2) (9,972) (3,554) (11,668) (15,268)
(2,849) (15,924)
Expenses reimbursed by the
Administrator (Note 2) (14,110) (15,851) (8,269) (9,137)
(17,711) (38,639)
TOTAL Expenses 35,380 8,285 25,304 29,558
4,844 11,389
Net Investment Income (9,014) 31,014 107,283 30,835
29,792 247,506
Net Realized And Unrealized Gain
(Loss) on Investments
Net realized gain (loss) on
investments and futures (5,246) 186,712 14,124 (5,544)
24,851 -
Unrealized appreciation
(depreciation) of investments
and futures contracts
during the period 668,630 64,247 (452,066) 274,816
(72,767) -
Net Realized And Unrealized
Gain (Loss) On Investments 663,384 250,959 (437,942) 269,272
(47,916) -
Net Increase (Decrease) In
Net Assets Resulting From
Operations $654,370 $281,973 $(330,659) $300,107
$(18,124) $247,506
*Net of foreign
withholding taxes of: - $11 - -
- -
- -
</TABLE>
See notes to financial statements.
#
Financial Statements
Statements of Changes in Net Assets For the period January 1, 1996 through
February 29, 1996 (unaudited)
<TABLE>
<CAPTION>
Transamerica
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
Premier Premier Premier Premier Intermediate
Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government
Fund
Fund
Increase (Decrease) in Net
Assets From Operations:
<S> <C> <C> <C> <C>
Net investment income $ (9,014) $31,014 $107,283 $ 30,835
$
29,792 $ 247,506
Net realized gain (loss)
on investments (5,246) 186,712 14,124 (5,544)
24,851 -
Unrealized appreciation
(depreciation)of investments
and future contracts during
the period 668,630 64,247 (452,066) 274,816
(72,767) -
Net increase (decrease) in net
assets resulting from
operations 654,370 281,973 (330,659) 300,107
(18,124) 247,506
Dividends to shareholders from net investment income:
Investor shares (21,869) (37,981) (116,698) (72,028)
(32,230) (247,045)
Adviser shares (6) (1) (84) (76)
(2)
(461)
Distributions to shareholders from net realized gains:
Investor shares - - - -
(8,481) -
Adviser shares - - - -
(1)
- -
Fund share transactions
(Note 5) 7,271,558 300,693 372,746 713,508
77,850 16,774
Increase in net assets 7,904,053 544,684 (74,695) 941,511
19,012 16,774
Net Assets
Beginning of period 11,127,376 6,934,183 11,836,110 12,102,136
3,436,266 28,017,752
End of period (1) $19,031,429 $7,478,867 $11,761,415 $13,043,647
$3,455,278 $28,034,526
(1) Includes undistributed
net investment income of: $(9,063) $31,001 $53,930 $30,786
$14,311 $ -
</TABLE>
See notes to financial statements.
#
Financial Statements
Statements of Changes in Net Assets For the period October 2, 1995
(commencement of operations) through December 31, 1995
<TABLE>
<CAPTION>
Transamerica
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
Premier Premier Premier Premier Intermediate
Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government
Fund
Fund
Increase in Net Assets
From
operations:
<S> <C> <C> <C> <C>
Net investment income $ 21,826 $ 37,969 $ 173,137 $72,055
$46,374 $ 334,544
Net realized gain (loss)
on investments (1,264) 125 (34,841) (26,546)
8,471 -
Unrealized appreciation
(depreciation) of investments
and futures contracts
during the period (237,062) 276,864 366,132 136,282
52,752 -
Net increase (decrease)
in net assets resulting
from operations (216,500) 314,958 504,428 181,791
107,597 334,544
Dividends to shareholders from net investment income:
Investor shares - - (109,662) -
(29,622) (334,364)
Adviser shares - - (47) -
(2)
(180)
Fund share transactions (Note 5) 11,327,206 6,602,555 11,424,721 11,903,675
3,341,623 28,001,102
Increase in net assets 11,110,706 6,917,513 11,819,440 12,085,466
3,419,596 28,001,102
Net Assets
Beginning of period 16,670 16,670 16,670 16,670
16,670 16,650
End of period (1) $11,127,376 $6,934,183
$11,836,110 $12,102,136 $3,436,266
$28,017,752
(1) Includes undistributed net
investment income of: $ 21,826 $ 37,969 $ 63,428 $72,055
$
16,750 -
</TABLE>
See notes to financial statements.
#
Financial Statements
Financial Highlights - Investor Class Shares Period from January 1, 1996 through
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
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
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>
Beginning of period $9.82 $10.59 $10.37 $10.23
$10.25
$1.00
Investment Operations
Net investment income (1) 0.00 0.070.09 0.02 0.09
0.01
Net realized and
unrealized gain 0.47 0.36(0.37) 0.23 (0.14)
0.00
Total from investment operations 0.47 0.43(0.28) 0.25 (0.05)0.01
Distributions to
Shareholders from:
Net investment income (0.02)(0.06) (0.10)(0.06) (0.10)
(0.01)
Net realized gains 0.00 0.00 0.00 0.00
(0.03)
0.00
Total distributions
to shareholders (0.02) (0.06) (0.10) (0.06)
(0.13) (0.01)
Net asset value end of period $10.27 $10.96 $9.99 $10.42
$10.07
$1.00
TOTAL RETURN (2) 4.79%4.06% (2.71)% 2.47%
(0.49)% 0.89%
Ratios and Supplemental Data
Ratio of expenses to
average net assets (3) (4) 1.50% 0.70%
1.30%
1.45% 0.85% 0.25%
Ratio of net income to
average net assets (4) (0.38)% 6.61%
5.52%
1.51% 5.23% 5.44%
Portfolio turnover rate (4) 3% 34%
23%
22% 296% N/A
Net assets end of period $18,893,369$7,478,636 $11,678,373
$12,876,625
$3,455,064 $27,897,125
</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 $(0.01) for the Equity
Fund, $0.04 for the Index Fund, $0.08 for the Bond Fund, $0.01 for the Balanced
Fund, $0.05 for the Short-Intermediate Government Fund, and $0.01 for the Cash
Reserve Fund. (2) Total return represents aggregate total return for the period
indicated and is not annualized. (3) If the Investment Adviser had not waived
fees and the Administrator had not reimbursed expenses, the ratio of operating
expenses to average net assets would have been 2.27% for the Equity Fund, 4.52%
for the Index Fund, 2.15% for the Bond Fund, 2.39% for the Balanced Fund, 3.17%
for the Short-Intermediate Government Fund, and 1.34% for the Cash Reserve Fund.
(4) Annualized.
See notes to financial statements.
#
Financial Statements
Financial Highlights - Investor Class Shares Period Ended December 31, 1995*
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Transamerica
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
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>
Beginning of period $10.00 $10.00 $10.00 $10.00
$10.00
$1.00
Investment Operations
Net investment income (1) 0.02 0.060.16 0.06 0.15
0.01
Net realized and
unrealized gain (loss) (0.20)0.53 0.32 0.17 0.20 -
Total from investment operations (0.18) 0.59 0.48 0.23 0.35
0.01
Distributions to
Shareholders from:
Net investment income - - (0.11) -
(0.10) (0.01)
Net asset value
End of period $9.82 $10.59 $10.37 $10.23
$10.25
$1.00
TOTAL RETURN (2) (1.80)% 5.90% 4.82% 2.30%
3.49% 1.39%
Ratios and Supplemental Data
Ratio of expenses to
average net assets (3) (4) 0.25%0.25% 0.25% 0.25% 0.25%
0.25%
Ratio of net income to
average net assets (4) 1.51%2.70% 6.55% 3.12% 5.88%
5.55%
Portfolio turnover rate (4) 0% 4% 19%16%
260%
N/A
Net assets end of period $11,070,182 $6,933,960 $11,826,508
$12,083,554 $3,436,050 $27,996,475
</TABLE>
*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of certain fees by the Investment
Adviser and reimbursement of certain expenses by the
Administrator (see Note 2 to the financial statements). If the Investment
Adviser had not waived fees and the Administrator had not reimbursed expenses,
net investment income (loss) per share would have been $(0.01) for the Equity
Fund, $(0.03) for the Index Fund, $0.12 for the Bond Fund, $0.02 for the
Balanced Fund, $0.09 for the Short-Intermediate Government Fund, and $0.01 for
the Cash Reserve Fund. (2) Total return represents aggregate total return for
the period indicated and is not annualized. (3) If the Investment Adviser had
not waived fees and the Administrator had not reimbursed expenses, the ratio of
operating expenses to average net assets would have been 2.39% for the Equity
Fund, 4.12% for the Index Fund, 1.93% for the Bond Fund, 2.12% for the Balanced
Fund, 2.51% for the Short-Intermediate Government Fund, and 1.37% for the Cash
Reserve Fund. (4) Annualized.
See notes to financial statements.
#
#
Financial Statements
Financial Highlights - Adviser Class Shares Period from January 1, 1996 through
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
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
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 $9.81 $10.58 $10.37 $10.22 $10.25
$1.00
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
Distributions 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
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 at 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 Equity
Fund, $(242.56) for the Index Fund, $(1.54) for the Bond Fund, $(0.46) for the
Balanced Fund, $(1.59) for the Short-Intermediate Government Fund, and $(0.26)
for the 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 Equity Fund, 13,452.39% for the Index Fund, 111.26%
for the Bond Fund, 88.79% for the Balanced Fund, 14,159.95% for the
Short-Intermediate Government Fund, and 60.74% for the Cash Reserve Fund. (4)
Annualized.
See notes to financial statements.
#
Financial Statements
Financial Highlights - Adviser Class Shares Period Ended December 31, 1995*
The following table includes selected data for a share outstanding throughout
the period and other performance information derived from the financial
statements.
<TABLE>
<CAPTION>
Transamerica
Premier
Transamerica
Transamerica Transamerica TransamericaTransamerica Short-
Premier
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>
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
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 at end of period $57,194 $223
$9,602
$18,582 $216 $21,277
</TABLE>
*Each Fund commenced operations on October 2, 1995.
(1) Net investment income is after waiver of certain fees by the Investment
Adviser and reimbursement of certain expenses by the
Administrator (see Note 2 to the financial statements). If the Investment
Adviser had not waived fees and the Administrator had not reimbursed expenses,
net investment income (loss) per share would have been $(0.62) for the Equity
Fund, $(0.05) for the Index Fund, $(3.01) for the Bond Fund, $(1.95) for the
Balanced Fund, $0.08 for the Short-Intermediate Government Fund, and $(0.24) for
the Cash Reserve Fund. (2) Total return represents aggregate total return for
the period indicated and is not annualized. (3) If the Investment Adviser had
not waived fees and the Administrator had not reimbursed expenses, the ratio of
operating expenses to average net assets would have been 92.04% for the Equity
Fund, 4.52% for the Index Fund, 147.96% for the Bond Fund, 150.92% for the
Balanced Fund, 2.55% for the Short-Intermediate Government Fund, and 109.23% for
the Cash Reserve Fund. (4) Annualized.
See notes to financial statements.
#
Financial Statements
Notes to Financial Statements - (Unaudited) February 29, 1996
1. Significant Accounting Policies
Transamerica Investors, Inc. (the "Company") was organized
as a Maryland corporation on February 22, 1995. The Company is registered with
the Securities and Exchange Commission (the "SEC") under the Investment Company
Act of 1940 (the "1940 Act") as an open-end, diversified management investment
company. The Company is composed of six series (collectively referred to as the
"Funds"): Transamerica Premier Equity Fund (the "Equity Fund"), Transamerica
Premier Index Fund (the "Index Fund"), Transamerica Premier Bond Fund (the "Bond
Fund"), Transamerica Premier Balanced Fund (the "Balanced Fund"), Transamerica
Premier Short-Intermediate Government Fund (the "Short-Intermediate Government
Fund"), and Transamerica Premier Cash Reserve Fund (the "Cash Reserve Fund").
Each Fund is a separate series. Each series has two classes of shares, Investor
Shares and Adviser Shares. Each share of each class represents an identical
legal interest in the same investments of a Fund, except that Adviser Shares
have higher distrib ution fees. Each class has certain other expenses related
solely to that class. The Company commenced investment operations on October 2,
1995. The following is a summary of significant accounting policies followed by
each Fund in the preparation of its financial statements in accordance with
generally accepted accounting principles.
(a) Valuation of Securities - All securities are valued as of the close of
regular trading on the New York Stock Exchange (normally 4:00 p.m. Eastern
Standard Time). Except for the Cash Reserve Fund, each Fund will compute its
net asset value once daily at the close of such trading on each day that the
New York Stock Exchange is open for business. The Cash Reserve Fund will
determine its net asset value only on days that the Federal Reserve is open.
Investments of the Funds (other than the Cash Reserve Fund) are valued as
follows:
(1) Equity securities listed on any U.S. or foreign stock
exchange or the National Association of Securities Dealers Automated Quotation
System ("nasdaq") are valued at the last sale price on that exchange or nasdaq
on the valuation day; if no sale occurs, equity securities traded on a U.S.
exchange or nasdaq are valued at the mean between the closing bid and closing
asked prices. Equity securities traded on a foreign exchange will be valued at
the official bid price. Over-the-counter securities not quoted on nasdaq are
valued at the last sale price on the valuation day or, if no sale occurs, at the
mean between the last bid and asked prices.
(2) Debt securities purchased with a remaining maturity of
61 days or more are valued on the basis of dealer-supplied quotations or by a
pricing service selected by Transamerica Investment Services, Inc., the
investment adviser, and approved by the Board of Directors.
(3) Options and futures contracts are valued at the last
sale price on the market where any such option or futures contract is
principally traded. Over-the-counter options are valued based upon prices
provided by market makers in such securities or dealers in such currencies.
(4) Forward foreign currency exchange contracts are valued
based upon quotations supplied by dealers in such contracts.
(5) All other securities and other assets, including those
for which no pricing service supplies quotations or quotations are not deemed by
the Investment Adviser to be representative of market values, but excluding debt
securities with remaining maturities of 60 days or less, are valued at fair
value as determined in good faith pursuant to procedures established by the
Board.
(6) Debt securities with a remaining maturity of 60 days or
less will be valued at their amortized cost, which approximates market value.
All of the investments of the Cash Reserve Fund are valued
at amortized cost, in accordance with Rule 2a-7 of the 1940 Act, which
approximates market value. (b) Repurchase Agreements Plan - Each Fund may enter
into repurchase agreements with Federal Reserve System member banks or U.S.
securities dealers. A repurchase agreement occurs when, at the time the Fund
purchases an interest-bearing debt obligation, the seller agrees to repurchase
the debt obligation on a specified date in the future at an agreed-upon price.
The repurchase price reflects an agreed-upon interest rate during the time the
Fund's money is invested in the security. Since the security constitutes
collateral for the repurchase obligation, a repurchase agreement can be
considered a collateralized loan. The risk to the Fund is the ability of the
seller to pay the agreed-upon price on the delivery date. If the seller is
unable to make timely repurchase, the Fund's expected proceeds could be delayed,
or the Fund could suffer a loss in principal or current interest, or incur costs
in liquidating the collateral. (C) FUTURES CONTRACTS -- The Index Fund uses S&P
500 Index futures as part of its strategy to match the return of the S&P 500
Index. Upon entering into a futures contract, the Fund is required to deposit
with the broker an amount of cash or cash equivalents equal to a certain
percentage of the contract amount. This is known as the initial margin.
Subsequent payments ("variation margin") are made or received by the Fund each
day, depending on the daily fluctuations of the value of the contract. The daily
changes in the contract a re recorded as unrealized gains or losses. The Fund
recognizes a realized gain or loss when the contract is closed. The use of
futures contracts involves several risks. The change in value of futures
contracts primarily corresponds with the value of their underlying instruments,
which may not correlate with the change in value of the hedged investments. In
addition, the Fund may not be able to enter into a closing transaction because
of an illiquid secondary market. (d) Securities Transactions, Investment Income
and Expenses - Securities transactions are recorded as of the trade date.
Realized gains and losses on sales of investments are recorded on the identified
cost basis. Interest income and expenses are recorded daily on an accrual basis.
Dividend income is recorded on the ex-date. Investment income and realized and
unrealized gains and losses are allocated based upon the relative average daily
net assets of each class of shares. Expenses not directly chargeable to a
specific Fund are allocated primarily on the basis of relative average daily net
assets. Expenses of each Fund not directly attributable to the operations of any
class of shares are allocated among the classes based upon the relative average
daily net assets of each class. Distribution fees are directly attributable to a
particular class of shares and are charged only to that class. (e) Dividends and
Distributions - Dividends from net investment income on shares of the Cash
Reserve Fund are determined on a class level and are declared daily and paid
monthly. Dividends from net investment income on shares of the Bond Fund and the
Short-Intermediate Government Fund are determined on a class level and are
declared and paid monthly. Dividends from net investment income, if any, on
shares of the Equity Fund, the Index Fund, and the Balanced Fund are determined
on a class level and are declared and paid quarterly. Each Fund distributes net
realized capital gains, if any, on a Fund level annually. Dividends and
distributions paid by each Fund and class are recorded on the ex-dividend date,
except for the Cash Reserve Fund, which records dividends daily. Additional
dividends from net investment income and distributions of capital gains may be
made at the discretion of the Board of Directors in order to avoid the 4%
nondeductible Federal excise tax. Income dividends and capital gain
distributions are determined in accorda nce with income tax regulations which
may differ from generally accepted accounting principles. These differences are
primarily due to differing treatments of income and gains on various investment
securities held by the Funds, timing differences and differing characterization
of distributions made by the Funds. (f) Federal Income Taxes - Each Fund intends
to qualify as a regulated investment company by complying with the requirements
of the Internal Revenue Code applicable to regulated investment companies and by
distributing to shareholders substantially all of its taxable income. Therefore,
no Federal income or excise tax provision is required. For Federal income tax
purposes, capital loss carryforwards (exclusive of certain capital losses
incurred after October 31) of $17, $34,657, and $26,024 are available to the
extent provided by regulations to offset future realized gains of the Equity
Fund, the Bond Fund, and the Balanced Fund, respectively. These losses expire in
2003. The Company has entered into an Investment Advisory and Administrative
Services Agreement (the "Agreement") with Transamerica Investment Services, Inc.
(the "Investment Adviser"), a wholly owned subsidiary of Transamerica
Corporation, on behalf of each Fund. Pursuant to the Agreement, the Investment
Adviser will supervise and manage the investments of each Fund, direct the
purchase and sale of its investments, and ensure that investments follow its
investment objective, strategies, and policies and comply with government
regulations. For its services to the Funds, the Investment Adviser receives a
monthly fee, based on an annual percentage of the average daily net assets of
each Fund. The annual fee for the Equity Fund is 0.85% on the first $1 billion
of average daily net assets, 0.82% on the next $1 billion of average daily net
assets, and 0.80% on average daily net assets over $2 billion. The annual fee
for the Index Fund is 0.30% of average daily net assets. The annual fee for the
Bond Fund is 0.60% on the first $1 billion of average daily net assets, 0.57% on
the next $1 billion of average daily net assets, and 0.55% on average daily net
assets over $2 billion. The annual fee for the Balanced Fund is 0.75% on the
first $1 billion of average daily net assets, 0.72% on the next $1 billion of
average daily net assets, and 0.70% on average daily net assets over $2 billion.
The annual fee for the Short-Intermediate Government Fund is 0.50% of average
daily net assets. The annual fee for the Cash Reserve Fund is 0.35% of average
daily net assets.
The Company's Administrator is Transamerica Occidental Life
Insurance Company (the "Administrator"), a wholly owned subsidiary of
Transamerica Insurance Corporation of California, which in turn is a wholly
owned subsidiary of Transamerica Corporation. The Administrator provides the
Funds with administrative and clerical services, including the maintenance of
the Funds' books and records; registers the Funds' shares with the SEC and with
those states and other jurisdictions where the shares are offered or sold and
arranges periodic updating of the Funds' prospectuses; provides proxy materials
and reports to the Funds' shareholders and the SEC; and provides the Funds with
adequate office space and all necessary office equipment and services. The
Administrator receives its fee directly from the Investment Adviser, and
receives no compensation from the Funds.
The Investment Adviser has agreed to waive its Fee, and the
Administrator has agreed to assume any other operating expenses (other than
certain extraordinary or non-recurring expenses) for each Fund which together
exceed a specified percentage of the average daily net assets of that Fund until
the earlier of October 1, 1996 or such time as the Fund's assets exceed $50
million. The specified percentages are as follows:
Investor Adviser
Fund Shares Shares
Equity Fund 1.50% 2.25%
Index Fund 0.70% 1.60%
Bond Fund 1.30% 2.05%
Balanced Fund 1.45% 2.20%
Short-Intermediate Government Fund 0.85% 1.60%
Cash Reserve Fund 0.70% 0.85%
Transamerica Securities Sales Corporation ("TSSC") is the
principal underwriter and distributor of the shares of each of the Funds. TSSC
distributes Investor Shares. TSSC has an agreement with Transamerica Financial
Resources, Inc. ("TFR") to sell Adviser Shares through its registered
representatives. TSSC can also enter into arrangements where Adviser Shares will
be sold by other broker-dealers, subject to the approval of the Board. Both TSSC
and TFR are wholly-owned subsidiaries of Transamerica Insurance Corporation of
California, which in turn is a wholly-owned subsidiary of Transamerica
Corporation.
No officer, director, or employee of the Investment Adviser,
the Administrator or any of their respective affiliates receives any
compensation from the Funds for acting as a director or officer of the Company.
Each director of the Company who is not an "interested person" (as that term is
defined in the 1940 Act) receives from the Funds a $10,000 annual fee, $1,000
for each meeting of the Company's Board attended, and $500 for each Board
committee meeting attended, and is reimbursed for expenses incurred in
connection with such attendance. For the period ended February 29, 1996, the
Funds paid aggregate fees of $8,137 to all directors who are not affiliated
persons of the Investment Adviser.
The 12b-1 plans of distribution and related distribution contracts require the
Funds to pay distribution and service fees to TSSC as compensation for its
activities, not as reimbursement for specific expenses. For the Investor
Shares, there is an annual 12b-1 distribution fee of 0.25% of the average daily
net assets of the Investor Shares of each Fund, except the Index and Cash
Reserve Funds, which each pay a distribution fee of 0.10% of the average daily
net assets. For the Adviser Shares, there is an annual 12b-1 distribution fee
of 0.75% of the average daily net assets of the Adviser Shares of each Fund,
except the Cash Reserve Fund, which has no distribution fee. There is also an
annual 12b-1 service fee of 0.25% of the average daily net assets of the
Adviser Shares of each Fund. The distribution fee covers compensation to
registered representatives and other sales personnel involved with selling
Adviser Shares, as well as preparation, printing and mailing of the Prospectus,
Statement of Additional Information, sales literature, other media advertising,
and related expenses. The service fee compensates sales personnel for ongoing
shareholder information and advice, and office expenses such as rent,
communications equipment, employee salaries, and other overhead costs.
The aggregate cost of purchases and proceeds from sales of securities,
excluding short-term
investments, for the period of January 1, 1996 through February 29, 1996 were
as follows:
<TABLE>
<CAPTION>
U.S. GovernmentProceeds from U.S. Government Purchases
Purchases Sales Sales
<S> <C> <C> <C> <C> <C>
Equity Fund $7,688,174 $ - $73,630 $ -
Index Fund 272,715 - 955,863 -
Bond Fund 430,000 - 424,628 -
Balanced Fund 842,793 - 422,452 -
Short-Intermediate
Government Fund - $1,838,289 - $1,626,504
At February 29, 1996, there were two billion shares of $0.001 par value stock authorized, consisting of one billion Investor
Shares and one billion Adviser Shares. The tables below summarize
transactions in Fund shares for the period from January 1, 1996 to February
29, 1996 and for the period ended December 31, 1995.
Transamerica Premier Equity Fund
Period Ended February 29, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 717,282 $7,245,446 1,125,709 $11,269,950
Capital stock issued
upon reinvestment of
dividends and distributions 2,199 21,734 - -
Capital stock redeemed (7,082) (72,471) (9) (86)
Net increase 712,399 $7,194,709 1,125,709 $11,269,950
Adviser Shares Shares Amount Shares Amount
Capital stock sold 7,615 $76,843 5,827 $57,842
Capital stock issued
upon reinvestment of
dividends and distributions 1 6 - -
Capital stock redeemed - - - -
Net increase 7,616 $76,849 5,827 $57,842
Transamerica Premier Index Fund
Period Ended February 29, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 24,600 $267,501 653,176 $6,602,355
Capital stock issued
upon reinvestment of
dividends and distributions 3,534 37,572 - -
Capital stock redeemed (390) (4,380) - -
Net increase 27,744 $300,693 653,176 $6,602,355
Adviser Shares Shares Amount Shares Amount
Capital stock sold - - 20 $200
Capital stock issued
upon reinvestment of
dividends and distributions - - - -
Capital stock redeemed - - - -
Net increase - - 20 $200
Transamerica Premier Bond Fund
Period Ended February 29, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 18,790 $192,289 1,127,986 $11,305,873
Capital stock issued
upon reinvestment of
dividends and distributions 11,310 116,499 10,828 109,606
Capital stock redeemed (1,017) (10,481) (7) (75)
Net increase 29,083 $298,307 1,138,807 $11,415,404
Adviser Shares Shares Amount Shares Amount
Capital stock sold 7,383 $74,356 921 $9,270
Capital stock issued
upon reinvestment of
dividends and distributions 8 83 4 47
Capital stock redeemed - - - -
Net increase 7,391 $74,439 925 $9,317
Transamerica Premier Balanced Fund
Period Ended February 29, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 48,373 $496,136 1,179,124 $11,885,383
Capital stock issued
upon reinvestment of
dividends and distributions 7,043 71,981 - -
Capital stock redeemed (333) (3,469) (5) (49)
Net increase 55,083 $564,648 1,179,119 $11,885,334
Adviser Shares Shares Amount Shares Amount
Capital stock sold 14,214 $148,784 1,816 $18,341
Capital stock issued
upon reinvestment of
dividends and distributions 7 76 - -
Capital stock redeemed - - - -
Net increase 14,221 $148,860 1,816 $18,341
Transamerica Premier Short-Intermediate Government Fund
Period Ended February 29, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 3,641 $37,160 330,960 $3,311,850
Capital stock issued
upon reinvestment of
dividends and distributions 4,018 40,713 2,927 29,621
Capital stock redeemed (2) (25) (4) (49)
Net increase 7,657 $77,848 333,613 $3,341,422
Adviser Shares Shares Amount Shares Amount
Capital stock sold - - 20 $200
Capital stock issued
upon reinvestment of
dividends and distributions - $2 - 1
Capital stock redeemed - - - -
Net increase - $2 20 $201
Transamerica Premier Cash Reserve Fund
Period Ended February 29, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 582,450 $582,450 27,792,888 $27,792,888
Capital stock issued
upon reinvestment of
dividends and distributions 377,095 377,095 204,021 204,021
Capital stock redeemed (1,058,895) (1,058,895) (17,083) (17,083)
Net increase (decrease) (99,350) ($99,350) 27,979,826 $27,979,826
Adviser Shares Shares Amount Shares Amount
Capital stock sold 117,560 $117,560 25,200 $25,200
Capital stock issued
upon reinvestment of
dividends and distributions 564 564 76 76
Capital stock redeemed (2,000) (2,000) (4,000) (4,000)
Net increase 116,124 $116,124 21,276 $21,276
</TABLE>
#
Financial Statements
Notes to Financial Statements - (Unaudited) Continued
2. Investment Advisory Fees and Other Transactions with Affiliates
#
Financial Statements
Notes to Financial Statements - (Unaudited) Continued
3. Distribution PlanS
#
Financial Statements
Notes to Financial Statements - (Unaudited) Continued
4. Securities Transactions
5. Capital Stock Transactions
#
Financial Statements
Notes to Financial Statements - (Unaudited) Continued
#
Financial Statements
Notes to Financial Statements - (Unaudited) Continued
#
Transamerica Premier Portfolio of Funds
People. Performance. Portfolios.
