TRANSAMERICA INVESTORS INC, N-30D, 1997-03-04

TRANSAMERICA INVESTORS INC
N-30D, 1997-03-04

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Transamerica Premier Portfolio of Funds

1996 Annual Report
c3

Contents

1 President's Report

Investment Management Reports
and Schedules of Investments
2 Transamerica Premier Equity Fund
5 Transamerica Premier Index Fund
14 Transamerica Premier Bond Fund
17 Transamerica Premier Balanced Fund
20 Transamerica Premier Short-Intermediate Government Fund
22 Transamerica Premier Cash Reserve Fund

Financial Statements
25 Statements of Assets & Liabilities
26 Statements of Operations
27 Statements of Changes in Net Assets

Financial Highlights
29 Investor Class Shares
31 Adviser Class Shares
33 Notes to Financial Statements
39 Independent Auditors' Report

President's Report

Dear Fellow
Shareholders:
We are pleased to present the second annual report for the Transamerica Premier
Funds. These funds were created to provide individual investors like you with
the tools needed to build a strong financial future.
At Transamerica we are committed to making investing easier for
individual investors by simplifying and clearly explaining the products and
services we offer. Here are just a few of this year's accomplishments:
* The Premier Equity Fund ranked in the top 10%, and the Premier Cash Reserve
Fund ranked in the top 5%, in their investment categories for the year ended
1996.*
* Our web site was launched, http://funds.transamerica.com, making it easy for
you to view net asset values, prospectus information, and performance data for
all the Premier Funds. * The Premier Equity Fund (TEQUX) is now listed in most
major publications. We expect the other Premier funds to be listed during 1997.
* The Board of Directors of the Transamerica Premier Funds decided to suspend
sales of the Premier Short-Intermediate Government Fund, which was closed to new
purchases on February 15, 1997. Although this fund has closed, we are actively
working to introduce additional funds in the near future.

As part of our commitment to meeting your investment needs, a discussion of the
market and our outlook for first quarter 1997 follows. I hope you'll find it
informative and helpful in achieving your investment goals.

Investment Adviser Outlook
We are very optimistic about the market as economic expansion continues into its
sixth year. Growth appears to be high enough to continue to create new jobs and
opportunities --- and with no recession on the horizon, concerns about inflation
simply aren't realistic.
Persistent worries about inflation will probably keep interest rates
near or slightly above current levels in the early part of this year. As long as
inflation remains at current levels and capital investment spending is strong,
the Fed is not likely to feel the need to tighten monetary policy or increase
rates.
In the continuing low inflation environment, long-term, fixed rate bond
yields are attractive and provide good real returns. Clearly, if there is an
increase in yields in the near term, we would take advantage of the buying
opportunity.
Mixed economic signals have not dampened the enthusiasm of common stock
investors. With moderate economic growth, low inflation, and stable interest
rates, equity investors are free to focus on the business prospects of
individual industries and companies. Corporate profits are improving steadily,
with more companies delivering favorable surprises than unfavorable ones. As
inflation remains low, strong profit growth in individual companies continues to
represent unique opportunities for owners of common stocks.
We continue to invest our equity assets in areas where strong unit
growth and new products have allowed successful companies to grow without the
benefit of significantly higher prices. Technology, financial services, leisure,
and selected health care industries are specific areas where we have focused for
substantial growth opportunities.
Please feel free to call us toll-free at 1-800-892-7587, with any
comments or questions you may have. We look forward to continuing to serve our
Transamerica Premier Funds shareholders. It is our privilege to assist you with
your investment needs.

Cordially,

Nicki Bair
President

*Source: Lipper Analytical Services; of 669 growth funds and 289 money market
funds.

2
Transamerica Premier Equity Fund
Portfolio Manager, Glen E. Bickerstaff
2

Fund Performance
The Premier Equity Fund's performance for 1996 was strong, particularly during
the second half of the year. Investor Class shares posted a total investment
return of 29.07% for the year ended December 31, 1996, comparing quite favorably
to the total return of 22.96% for the S&P 500. Since its inception on October 2,
1995, the Fund has earned an annualized total return of 20.85%, while the S&P
500 has returned 23.60%.

Portfolio Manager Comments
The stock market posted strong gains in 1996, close on the heels of 1995's
extraordinary returns. Economic growth in general, especially during the early
part of the year, was stronger than expected. While corporate profit gains
supported higher stock prices, the credit markets feared the return of higher
inflation, causing long-term treasury yields to rise from just below 6% to over
7% in July. As growth moderated in the third quarter, so did fears of renewed
inflation, resulting in sharp bond yield declines during October and November.
While interest rates were falling late in the year, the stock market rallied
strongly.

Portfolio Asset Mix
As of December 31, 1996, the Fund consisted of:

Common Stocks 96.8%
Cash and Cash
Equivalents 3.2%
Total 100.0%

The companies with the largest weighting in the portfolio as
of December 31, 1996, were
as follows:

Dell Computer 6.8%
Intel Corporation 5.5%
Smith's Food &
Drug Centers 5.0%
Envoy Corporation 4.2%
T. Rowe Price
& Associates 4.2%

Going Forward
Entering 1997, the financial markets are struggling with mixed growth signals
- --- some factors are strong and others are weak. However, moderate growth is
expected as the year unfolds, without a significant increase in inflation. This
outlook is supported by the likelihood of slower worldwide growth in 1997,
combined with a strong U.S. dollar, resulting in relatively weak demand for U.S.
exports.

In spite of concerns regarding a lack of pricing power and resulting margin
pressure, earnings have been improving steadily. The Premier Equity Fund is
invested in large and medium capitalization growth companies characterized by
strong or dominant market positions and superior managements. These inherent
advantages should allow the companies we invest in to continue to show
significant earnings growth, even as the economy slows. Additionally, the
valuations afforded these companies should benefit from the lower interest rates
that will result from moderate economic growth and low inflation. The Premier
Equity Fund has significant assets committed to companies in the financial
services, technology, leisure, and health care industries --- all of which
should remain strong areas for growth in 1997.
Thank you for your continued investment in the Transamerica Premier
Equity Fund.

Performance Highlights (10/2/95 - 12/31/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 26.75% 25.71%
NAV per share at 12/31/96 $12.65 $12.57

$10,000 Invested In The Premier Equity Fund (10/2/95 - 12/31/96)**
3

The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") consists of
500 widely held, publicly traded common stocks. The S&P 500 Index does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents.
*Total return for the period from October 2, 1995 (commencement of operations)
through December 31, 1996.
**Hypothetical illustration of $10,000 invested at inception (October 2, 1995),
assuming reinvestment of dividends and capital gains at net asset value through
December 31, 1996. Note: All performance information cited here and on the
following pages represents past performance and is not indicative of future
results. If the Investment Adviser had not waived fees and the Administrator had
not reimbursed expenses, the aggregate total returns of the Funds would have
been lower. 3 4 Transamerica Premier Equity Fund Schedule of
Investments - December 31, 1996 4
Market
Shares Value

Market
Shares Value
4

Common Stocks --- 96.8%
Aerospace & Defense --- 2.4%
Boeing Company 7,000 $744,625
Banking --- 2.6%
Wells Fargo & Company 3,000 809,250
Broadcasting --- 2.3%
HSN Inc. (a) 30,000 712,500
Business Services --- 9.6%
CUC International Inc. (a) 30,000 712,500
Envoy Corp. (a) 35,000 1,312,500
First Data Corp. 26,000 949,000
2,974,000
Chemicals --- 3.6%
Betzdearborn Inc. 19,000 1,111,500
Computers & Business Equipment --- 9.7%
Cisco Systems Inc. (a) 14,000 890,750
Dell Computer Corp. (a) 40,000 2,125,000
3,015,750
Containers & Glass --- 2.6%
Crown Cork & Seal Inc. 15,000 815,625
Drugs & Health Care --- 4.7%
Alternative Living Services Inc. (a) 75,000 1,087,500
Centocor Inc. (a) 10,000 357,500
1,445,000
Electronics --- 8.9%
Applied Materials Inc. (a) 30,000 1,078,125
Intel Corp. 13,000 1,702,188
2,780,313
Financial Services --- 11.1%
Charles Schwab Corp. 40,000 1,280,000
Franklin Resources Inc. 5,000 341,875
Merrill Lynch & Company Inc. 11,000 896,500
Moneygram Payment Systems Inc. (a) 70,000 927,500
3,445,875
Hotels & Restaurants --- 8.5%
Host Marriott Corp. (a) 35,000 560,000
Marriott International Inc. 14,000 773,500
Mirage Resorts Inc. (a) 60,000 1,297,500
2,631,000
Industrial Machinery --- 5.4%
Briggs & Stratton Corp. 20,000 880,000
Illinois Tool Works Inc. 10,000 798,750
1,678,750
Insurance --- 4.3%
20th Century Industries 40,000 675,000
American International Group Inc. 6,000 649,500
1,324,500

Investment Companies --- 4.2%
T. Rowe Price & Associates Inc. 30,000 $ 1,305,000
Leisure Time --- 4.8%
Walt Disney Company 11,000 765,875
Speedway Motorsports Inc. (a) 35,000 735,000
1,500,875
Retail Grocery --- 5.0%
Smith's Food & Drug Centers Inc. 50,000 1,550,000
Computers --- Software --- 7.1%
Broderbund Software Inc. (a) 25,000 743,750
Intuit (a) 10,000 315,000
Microsoft Corp. (a) 14,000 1,156,750
2,215,500
Total Common Stocks
(cost $24,089,390) 30,060,063
Repurchase Agreement --- 3.6%
State Street Bank and Trust Company, 4.50%, due 1/2/97, (collateralized by
$780,000 par value U.S. Treasury Bonds, 10.625%, due 8/15/15, with a
value of $1,144,772 cost $1,120,000) 1,120,000 1,120,000
Total Investments --- 100.4%
(cost $25,209,390)* 31,180,063
Liabilities In Excess Of
Other Assets --- (0.4)% (113,106)
Net Assets --- 100.0% $31,066,957

(a) non-income producing security

See notes to financial statements.

Transamerica Premier Index Fund
Portfolio Manager, Christopher J. Bonavico
5

Fund Performance
The Premier Index Fund earned a total return of 22.33% for the year ended
December 31, 1996, in comparison to a total return of 22.96% for the S&P 500.
Since the Fund's inception on October 2, 1995, Investor Class shares have earned
an annualized total return of 22.98% relative to a 23.60% annualized return for
the S&P 500.
Over the past 12 months, the Fund has achieved its goal of matching the
performance of the S&P 500 Index. Although it may not match it precisely, in
general, when the S&P 500 is rising, the value of the shares in the Fund should
also rise. When the market is declining, the value of the shares should also
decline. To accomplish this, the Fund invests in stocks that mirror the S&P 500
Index, as well as in fixed income investments and stock index futures and
options. We manage the allocation of assets among these classes to most
effectively offer investors the total return of the S&P 500 over time.

Portfolio Manager Comments
Equity market returns were strong in 1996 as corporate profits continued their
six-year
rise, although at a slower pace. As investors feared the economy's continued
strength would translate into higher inflation, short and long-term interest
rates rose early in the year. As the year progressed, however, inflation
remained subdued and interest rates declined from their mid-year peaks. The
long-term treasury bond ended the year at 6.65%, only 71 basis points higher
than the 1995 year-end level. Continuing low inflation led investors to increase
their valuations of common stocks. Stock market returns also continued to
benefit from merger and acquisition activity, increasing shareholder value by
allowing companies to improve their competitive positions.

Portfolio Asset Mix
As of December 31, 1996, the Fund consisted of:

Common Stocks 76.4%
Cash and
Cash Equivalents 23.6
Total 100.0%

The sectors with the largest equity weighting in the portfolio as of December
31, 1996, were as follows:

Drugs & Healthcare 7.4%
Banking 5.2%
Food & Beverages 4.7%
Telecommunications 4.7%
Computer & Business
Equipment 4.0%

Going forward
In 1997, we expect continued positive returns for equity investors. While the
earnings performance of individual companies is important to stock valuations,
the broader long-term trend of lower global inflation and interest rates
supports higher overall equity market values. In this lower inflation
environment, bond yields should decline and equity returns should continue to be
attractive for long-term investors.
Thank you for your continued investment in the Transamerica Premier
Index Fund.

The Transamerica Premier Index Fund is not sponsored, endorsed, sold, or
promoted by Standard & Poor's Corporation. 5 # 6 Transamerica
Premier Index Fund 6
Performance Highlights (10/2/95 - 12/31/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 29.55% 28.19%
NAV per share at 12/31/96 $11.96 $11.97

$10,000 Invested In The Premier Index Fund (10/2/95 - 12/31/96)**
6

#
7

Transamerica Premier Index Fund
Schedule of Investments - December 31, 1996
7

Market
Shares Value

Common Stocks --- 76.4%
Aerospace & Defense --- 1.4%
Boeing Company 505 $53,724
Computer Sciences Corp. (a) 80 6,570
General Dynamics Corp. 90 6,345
Lockheed Martin Corp. 285 26,078
McDonnell Douglas Corp. 322 20,608
Newport News Shipbuilding Inc. (a) 50 747
Northrop Grumman Corp. 71 5,875
TRW Inc. 188 9,306
United Technologies Corp. 350 23,100
152,353

Agricultural Machinery --- 0.1%
Deere & Company 377 15,316

Air Travel --- 0.2%
AMR Corp. (a) 109 9,605
Delta Air Lines Inc. 73 5,174
Southwest Airlines Company 206 4,558
USAir Group Inc. (a) 90 2,104
21,441

Aluminum --- 0.3%
Alcan Aluminum Limited 322 10,827
Aluminum Company of America 254 16,193
Reynolds Metals Company 91 5,130
32,150

Apparel & Textiles --- 0.4%
Brown Group Inc. 26 478
Footstar Inc. (a) 0 12
Fruit of the Loom Inc. (a) 109 4,128
Liz Claiborne 106 4,094
Nike Inc. 410 24,497
Reebok International Limited 72 3,024
Russell Corp. 56 1,666
Springs Industries Inc. 29 1,247
Stride Rite Corp. 71 710
VF Corp. 91 6,143
45,999

Auto Parts --- 0.2%
Dana Corp. 145 4,731
Eaton Corp. 111 7,742
Echlin Inc. 88 2,783
Genuine Parts Company 176 7,832
23,088

Automobiles --- 1.4%
Chrysler Corp. 1,082 35,706
Ford Motor Company 1,533 48,864
General Motors Corp. 1,074 59,876
Paccar Inc. 56 3,808
148,254

Banking --- 5.2%
Banc One Corp. 651 $527,993
Bank of Boston Corp. 211 13,557
The Bank of New York Company, Inc. 574 19,372
BankAmerica Corp. 530 52,867
Bankers Trust 113 9,746
Barnett Banks Inc. 272 11,186
Boatmens Bancshares Inc. 225 14,513
Citicorp 697 71,791
Comerica Inc. 170 8,904
Corestates Financial Corp. 299 15,511
Fifth Third Bancorp 144 9,045
First Bank Systems Inc. 209 14,264
First Chicago NBD Corp. 460 24,725
First Union Corp. 408 30,192
KeyCorp 339 17,119
MBNA Corp. 319 13,239
Mellon Bank Corp. 191 13,561
JP Morgan & Company Inc. 269 26,261
National City Corp. 209 9,379
NationsBank Corp. 424 41,446
Norwest Corp. 506 22,011
PNC Bank Corp. 489 18,399
Republic New York Corp. 81 6,612
Suntrust Banks Inc. 324 15,957
U.S. Bancorp 217 9,751
Wachovia Corp. 244 13,786
Wells Fargo & Co. 139 37,495
568,682

Broadcasting --- 0.2%
Comcast Corp. 344 6,127
TCI Satellite Entertainment Inc. (a) 1 5
Viacom Inc. (a) 528 18,414
24,546

Building Construction --- 0.1%
Centex Corp. 41 1,543
Fluor Corp. 120 7,530
Kaufman & Broad Home Corp. 46 592
Pulte Corp. 39 1,199
10,864

Business Services --- 1.0%
Automatic Data Processing Inc. 416 17,836
Block (H & R) Inc. 149 4,321
Cognizant Corp. 343 11,319
CUC International Inc. (a) 542 12,861
DeLuxe Corp. 118 3,865
R.R. Donnelley & Sons Co. 220 6,902
Ecolab Inc. 93 3,499
First Data Corp. 638 23,287
Humana Inc. (a) 232 4,437

Business Services (continued)
Interpublic Group Companies Inc. 112 $ 5,320
Safety Kleen Corp. 83 1,359
Service Corp. International 336 9,408
104,414

Chemicals --- 2.2%
Air Products & Chemicals Inc. 160 11,060
Dow Chemical Company 375 29,391
EI Du Pont de Nemours & Company 796 75,122
Eastman Chemical Company 115 6,354
FMC Corp. (a) 53 3,717
B.F. Goodrich Company 76 3,078
W.R. Grace & Company 140 7,245
Great Lakes Chemical Corp. 93 4,348
Hercules Inc. 158 6,834
Mallinckrodt Group Inc. 106 4,677
Monsanto Company 835 32,461
Morton International Inc. 211 8,598
Nalco Chemical Company 96 3,468
PPG Industries Inc. 276 15,490
Praxair Inc. 200 9,225
Rohm & Haas Company 96 7,836
Sigma-Aldrich Corp. 71 4,433
Union Carbide Corp. 197 8,052
241,389

Communication Services --- 1.1%
Lucent Technologies Inc. 942 43,590
Northern Telecom Limited 364 22,522
SBC Communications Inc. 872 45,126
Tele-Communications Inc. (a) 935 12,213
123,451

Computers & Business Equipment --- 4.0%
3Com Corp. (a) 236 17,316
Amdahl Corp. (a) 171 2,073
Applied Materials Inc. (a) 257 9,236
Bay Networks Inc. (a) 262 5,469
Cabletron Systems Inc. (a) 206 6,850
Ceridian Corp. (a) 95 3,848
Cisco Systems Inc. (a) 892 56,753
Compaq Computer Corp. (a) 380 28,215
Data General Corp. (a) 54 783
Dell Computer Corp. (a) 300 15,937
Digital Equipment Corp. (a) 219 7,966
EMC Corp. (a) 300 9,938
Hewlett Packard Company 1,462 73,465
Intergraph Corp. (a) 66 677
International Business Machines 815 123,065
Pitney Bowes Inc. 217 11,826
Seagate Technology Inc. (a) 300 11,850

Sun Microsystems Inc. (a) 526 $ 13,512
Tandem Computers Inc. (a) 168 2,310
Tandy Corp. 91 4,004
Unisys Corp. (a) 246 1,661
Xerox Corp. 465 24,471
431,225

Conglomerates --- 1.0%
Allied Signal Inc. 405 27,135
Harcourt General Inc. 104 4,797
Minnesota Mining & Manufacturing Company 601 49,808
Tenneco Inc. (a) 249 11,236
Textron Inc. 122 11,498
104,474

Construction & Mining Equipment --- 0.4%
Case Corp. 102 5,559
Caterpillar Inc. 283 21,296
Dover Corp. 163 8,191
Foster Wheeler Corp. 57 2,116
Harnischfeger Industries Inc. 67 3,224
40,386

Construction Materials --- 0.2%
Armstrong World Industries Inc. 53 3,683
Masco Corp. 230 8,280
Owens Corning Fiberglass Corp. 73 3,112
Sherwin Williams Company 122 6,832
21,907

Containers & Glass --- 0.2%
Ball Corp. 43 1,118
Bemis Inc. 76 2,803
Crown Cork & Seal Inc. 179 9,733
Temple Inland Inc. 80 4,330
17,984

Cosmetics & Toiletries --- 0.2%
Alberto Culver Company 40 1,920
Avon Products Inc. 194 11,082
International Flavors & Fragances 159 7,155
20,157

Depositary Receipt --- 2.2%
S&P Depositary Receipt Trust** 3,240 239,557

Drugs & Health Care --- 7.4%
Abbott Labs 1,126 57,144
Allegiance Corp. 1 22
Allergan Inc. 92 3,278
Alza Corp. (a) 119 3,079
American Home Products Corp. 896 52,528
Amgen Inc. (a) 381 20,717
Bausch & Lomb Inc. 82 2,870
Baxter International Inc. 389 15,949
Becton Dickinson & Company 184 7,981
Beverly Enterprises Inc. (a) 141 $ 1,798
Biomet Inc. 165 2,496
Bristol Myers Squibb Company 723 78,626
Columbia / HCA Healthcare Corp. 957 38,998
CR Bard Inc. 82 2,296
Eli Lilly & Company 790 57,670
Guidant Corp. 100 5,700
Johnson & Johnson 1,910 95,022
Manor Care Inc. 90 2,430
Medtronic Inc. 333 22,644
Merck & Company Inc. 1,761 139,559
Pfizer Inc. 913 75,665
Pharmacia & Upjohn Inc. 722 28,609
Schering Plough Corp. 522 33,799
St. Jude Medical Inc. (a) 100 4,263
Tenet Healthcare Corp. (a) 300 6,563
United Healthcare Corp. 250 11,250
United States Surgical Corp. 82 3,229
Warner Lambert Company 388 29,100
803,285

Electric Utilities --- 2.1%
American Electric Power Inc. 267 10,980
Baltimore Gas & Electric Company 211 5,644
Carolina Power & Light Company 221 8,067
Central & South West Corp. 296 7,585
Cinergy Corp. 225 7,509
Consolidated Edison Company Inc. 337 9,857
Dominion Resources Inc. 252 9,702
DTE Energy Company 208 6,734
Duke Power Company 294 13,597
Edison International 643 12,780
Entergy Corp. 326 9,046
FPL Group Inc. 265 12,190
General Public Utilities Corp. 172 5,784
Houston Industries Inc. 376 8,507
Niagara Mohawk Power Corp. (a) 207 2,044
Northern States Power Company 98 4,496
Ohio Edison Company 219 4,982
P P & L Resources Inc. 228 5,244
Pacific Gas & Electric Company 600 12,600
Pacificorp 420 8,610
Peco Energy Company 318 8,030
Public Service Enterprise Group 351 9,565
Southern Company 955 21,607
Texas Utilities Company 324 13,203
Unicom Corp. 308 8,355
Union Electric Company 146 5,621
232,339

Electrical Equipment --- 3.1%
Boston Scientific Corp. (a) 249 $ 14,940
Cooper Industries Inc. 155 6,529
Emerson Electric Company 321 31,057
General Electric Company 2,393 236,608
General Instrument Corp. (a) 150 3,244
General Signal Corp. 68 2,907
W.W. Grainger Inc. 73 5,858
Johnson Controls Inc. 59 4,890
Millipore Corp. 64 2,648
National Service Industries Inc. 69 2,579
Raychem Corp. 64 5,128
Westinghouse Electric Corp. 855 16,993
333,381

Electronics --- 3.2%
Advanced Micro Devices Inc. (a) 188 4,841
AMP Inc. 312 11,973
Andrew Corp. (a) 84 4,457
Apple Computer 177 3,695
DSC Communications Corp. (a) 165 2,949
EG & G Inc. 69 1,389
Harris Corp. 56 3,843
Honeywell Inc. 182 11,967
Intel Corp. 1,177 154,113
LSI Logic Corp. (a) 186 4,976
Micron Technology Inc. 298 8,679
Motorola Inc. 845 51,862
National Semiconductor Corp. (a) 194 4,729
Perkin Elmer Corp. 62 3,650
Raytheon Company 346 16,651
Rockwell International Corp. (a) 311 18,932
Scientific Atlanta Inc. 110 1,650
Silicon Graphics Inc. (a) 251 6,401
Tektronix Inc. 48 2,460
Tellabs Inc. (a) 254 9,557
Texas Instruments Inc. 270 17,212
Thomas & Betts Corp. 58 2,574
348,560

Financial Services --- 3.3%
Allstate Corp. 641 37,098
American Express Company 694 39,211
Beneficial Corp. 76 4,817
Chase Manhattan Corp. 624 55,692
Dean Witter Discover & Company 244 16,165
Federal Home Loan Mortgage Corp. 259 28,522
Federal National Mortgage Association 1,564 58,259
Fleet Financial Group Inc. 380 18,953
Green Tree Financial Corp. 197 7,609
Household International Inc. 141 13,007
Merrill Lynch & Company Inc. 252 20,538

Financial Services (continued)
Morgan Stanley Group Inc. 223 $12,739
Salomon Inc. 152 7,163
Travelers Group Inc. 905 41,079
360,852

Food & Beverages --- 4.7%
Archer Daniels Midland Company 789 17,348
Campbell Soup Company 357 28,649
Coca Cola Company 3,594 189,134
Conagra Inc. 353 17,562
CPC International Inc. 208 16,120
General Mills Inc. 228 14,450
HJ Heinz Company 530 18,948
Hershey Foods Corp. 222 9,713
Kellogg Company 312 20,475
Pepsico Inc. 2,258 66,046
Pioneer Hi-Bred International Inc. 120 8,400
Quaker Oats Company 192 7,320
Ralston Purina Company 152 11,153
Sara Lee Corp. 694 25,851
Sysco Corp. 263 8,580
Unilever N V 229 40,132
Whitman Corp. 151 3,454
Wm Wrigley Junior Company 166 9,338
512,673

Gas & Pipeline Utilities --- 0.7%
Coastal Corp. 150 7,331
Columbia Gas Systems Inc. 78 4,963
Consolidated Natural Gas Company 134 7,404
Eastern Enterprises 29 1,026
El Paso Natural Gas Company 23 1,169
Enron Corp. 361 15,568
Enserch Corp. 98 2,254
Nicor Inc. 72 2,574
Oneok Inc. 39 1,170
Pacific Enterprises 121 3,675
PanEnergy Corp. 215 9,675
Peoples Energy Corp. 50 1,694
Sonat Inc. 123 6,335
Williams Companies Inc. 219 8,212
73,050

Gas Exploration --- 0.3%
Burlington Resources Inc. 181 9,118
Noram Energy Corp. 178 2,737
Occidental Petroleum Corp. 456 10,659
Oryx Energy Company (a) 151 3,737
Santa Fe Energy Resources Inc. (a) 129 1,790
Union Pacific Resources Group Inc. 310 9,063
37,104

Gold & Mining --- 0.5%
Barrick Gold Corp. 506 $14,547
Battle Mountain Gold Company 300 2,063
Cyprus Amax Minerals Company 133 3,109
Echo Bay Mines Limited 181 1,199
Freeport McMoRan Copper & Gold 289 8,634
Homestake Mining Company 198 2,822
Newmont Mining Corp. 135 6,041
Phelps Dodge Corp. 99 6,682
Placer Dome Inc. 343 7,460
Santa Fe Pacific Gold Corp. 188 2,891
55,448

Household Appliances & Products --- 2.2%
Black & Decker Corp. 123 3,705
Clorox Company 74 7,428
Colgate Palmolive Company 209 19,280
Corning Inc. 328 15,170
Gillette Company 756 58,779
Maytag Corp. 155 3,061
Newell Company 227 7,151
Procter & Gamble Company 984 105,780
Rubbermaid Inc. 226 5,142
Snap-On Inc. 87 3,099
Stanley Works 128 3,456
Tupperware Corp. 88 4,719
Whirlpool Corp. 106 4,942
241,712

Hotels & Restaurants --- 0.7%
Darden Restaurants Inc. 227 1,986
HFS Inc. (a) 200 11,950
Hilton Hotels Corp. 343 8,961
Marriott International Inc. 179 9,890
McDonald's Corp. 995 45,024
Wendy's International Inc. 170 3,485
81,296

Industrial Machinery --- 0.6%
Briggs & Stratton Corp. 41 1,804
Cincinnati Milacron Inc. 49 1,072
Crane Company 65 1,870
Cummins Engine Inc. 57 2,622
Giddings & Lewis Inc. 49 631
Illinois Tool Works Inc. 168 13,419
Ingersoll Rand Company 156 6,942
ITT Industries Inc. 171 4,189
Nacco Industries Inc. 13 696
Pall Corp. 164 4,182
Parker Hannifin Corp. 106 4,107
Thermo Electron Corp. 200 8,262
Timken Company 45 2,064

Trinova Corp. 42 $1,528
Tyco Interest Limited 219 11,580
64,968

Insurance --- 2.4%
Aetna Life & Casualty Company 214 17,120
Alexander & Alexander Services 64 1,112
American General Corp. 293 11,976
American International Group Inc. 679 73,502
Aon Corp. 150 9,319
Chubb Corp. 250 13,437
Cigna Corp. 109 14,892
General Re Corp. 118 18,614
ITT Hartford Group Inc. 171 11,542
Jefferson Pilot Corp. 102 5,776
Lincoln National Corp. 149 7,823
Loews Corp. 169 15,928
Marsh & McLennan Companies Inc. 105 10,920
MBIA Inc. 65 6,581
MGIC Investment Corp. 100 7,600
Providian Corp. 136 6,987
Safeco Corp. 180 7,099
St. Paul Companies Inc. 121 7,094
Torchmark Inc. 103 5,202
Unum Corp. 104 7,514
US Life Corp. 49 1,629
USF&G Corp. 161 3,361
265,028

Leisure Time --- 0.8%
Brunswick Corp. 137 3,288
Harrahs Entertainment Inc. (a) 147 2,922
ITT Corp. (a) 171 7,417
King World Productions Inc. (a) 53 1,954
Walt Disney Company 971 67,606
83,187

Liquor --- 0.5%
Adolph Coors Company 54 1,026
Anheuser-Busch Companies Inc. 728 29,120
Brown-Forman Corp. 99 4,529
Seagram Limited 536 20,770
55,445

Newspapers --- 0.4%
Dow Jones & Company Inc. 139 4,709
Gannett Inc. 201 15,050
Knight Ridder Inc. 140 5,355
New York Times Company 138 5,244
Times Mirror Company 156 7,761
Tribune Company 91 7,177
45,296

Non-Ferrous Metals --- 0.1%
Asarco Inc. 61 $1,517
Engelhard Corp. 206 3,940
Inco Limited 269 8,574
14,031

Oil --- 5.7%
Amerada Hess Corp. 133 7,697
Amoco Corp. 712 57,316
Ashland Inc. 91 3,993
Atlantic Richfield Company 230 30,475
Chevron Corp. 935 60,775
Exxon Corp. 1,779 174,342
Kerr McGee Corp. 74 5,328
Louisiana Land & Exploration Company 48 2,574
Mobil Corp. 565 69,071
Pennzoil Company 66 3,729
Phillips Petroleum Company 376 16,638
Royal Dutch Petroleum Company 768 131,136
Sun Inc. 108 2,633
Texaco Inc. 379 37,189
Unocal Corp. 354 14,381
USX Marathon Group 412 9,837
627,114

Office Furnishings & Supplies --- 0.1%
Avery Dennison Corp. 152 5,377
Moore Corp. Limited 143 2,914
8,291

Paper & Forest Products --- 1.2%
Alco Standard Corp. 183 9,447
Boise Cascade Corp. 69 2,191
Champion International Corp. 138 5,969
Georgia Pacific Corp. 132 9,504
International Paper Company 422 17,038
James River Corp. 122 4,041
Kimberly Clark Corp. 399 38,005
Louisiana Pacific Corp. 155 3,274
Mead Corp. 77 4,476
Potlatch Corp. 42 1,806
Stone Container Corp. 143 2,127
Union Camp Corp. 101 4,823
Westvaco Corp. 144 4,140
Weyerhaeuser Company 289 13,691
Willamette Industries Inc. 79 5,550
126,082

Petroleum Services --- 0.6%
Baker Hughes Inc. 204 7,038
Dresser Industries Inc. 259 8,029
Halliburton Company 164 9,881
Helmerich and Payne Inc. 35 1,824

Petroleum Services (continued)
McDermott International Inc. 78 $1,297
Rowan Companies Inc. (a) 121 2,738
Schlumberger Limited 347 34,657
Western Atlas Inc. (a) 76 5,386
70,850

Photography --- 0.4%
Eastman Kodak Company 490 39,322
Polaroid Corp. 65 2,828
42,150

Pollution Control --- 0.3%
Browning Ferris Industries Inc. 305 8,006
Laidlaw Inc. 421 4,841
WMX Technologies Inc. 697 22,740
35,587

Publishing --- 0.4%
American Greetings Corp. 107 3,036
Dun & Bradstreet Corp. 243 5,771
John H. Harland Company 44 1,452
Jostens Inc. 55 1,162
McGraw Hill Companies Inc. 144 6,642
Meredith Corp. 40 2,110
Time Warner Inc. 555 20,813
40,986

Railroads & Equipment --- 0.7%
Burlington Northern Santa Fe 203 17,534
Conrail Inc. 86 8,568
CSX Corp. 302 12,759
Norfolk Southern Corp. 186 16,275
Union Pacific Corp. 295 17,737
72,873

Retail --- 2.8%
Autozone Inc. (a) 200 5,512
Charming Shoppes Inc. (a) 148 749
Circuit City Stores Inc. 140 4,217
CVS Corp. 151 6,248
Dayton Hudson Corp. 309 12,128
Dillard Department Stores Inc. 162 5,002
Federated Department Stores Inc. (a) 290 9,896
Gap Inc. 412 12,411
Home Depot Inc. 683 34,235
Kmart Corp. (a) 650 6,744
Limited, Inc. 391 7,184
Longs Drug Stores Corp. 29 1,425
Lowes Companies Inc. 230 8,165
May Department Stores Company 357 16,690
Mercantile Stores Inc. 53 2,617
Nordstrom Inc. 116 4,111
JC Penney Inc. 320 15,600
Pep Boys-Manny Moe & Jack 89 2,737
Price-Costco Inc. (a) 280 $ 7,035
Rite-Aid Corp. 120 4,770
Sears Roebuck & Company 559 25,784
Supervalu Inc. 97 2,752
TJX Companies Inc. 103 4,880
Toys R Us Inc. (a) 393 11,790
Wal Mart Stores Inc. 3,305 75,602
Walgreen Company 353 14,120
Woolworth Corp. (a) 192 4,200
306,604

Retail Grocery --- 0.4%
Albertsons Inc. 362 12,896
American Stores Company 210 8,584
Fleming Companies Inc. 53 914
Giant Foods Inc. 85 2,933
Great Atlantic & Pacific Tea Inc. 55 1,753
Kroger Company (a) 177 8,230
Winn Dixie Stores Inc. 219 6,926
42,236

Savings & Loan --- 0.2%
HF Ahmanson & Company 168 5,460
Golden West Financial Corp. 84 5,303
Great Western Financial Corp. 196 5,684
16,447

Software --- 2.0%
Autodesk Inc. 66 1,848
Computer Associates International Inc. 520 25,870
Microsoft Corp. (a) 1,702 140,628
Novell Inc. (a) 527 4,990
Oracle Systems Corp. (a) 936 39,078
Shared Medical Systems Corp. 33 1,625
214,039

Steel --- 0.2%
Allegheny Teldyne Inc. 254 5,842
Armco Inc. (a) 152 627
Bethlehem Steel Corp. (a) 161 1,449
Inland Steel Industries Inc. 70 1,400
Nucor Corp. 125 6,375
USX-U.S. Steel Group 119 3,734
Worthington Industries Inc. 130 2,356
21,783

Telecommunications --- 4.7%
Airtouch Communications Inc. (a) 710 17,928
Alltel Corp. 271 8,503
Ameritech Corp. 794 48,136
AT & T Corp. 2,291 99,658
Bell Atlantic Corp. 627 40,598
Bellsouth Corp. 1,424 57,494
Frontier Corp. 200 4,537
GTE Corp. 1,388 63,154
MCI Communications Corp. 976 $ 31,903
NYNEX Corp. 616 29,645
Pacific Telesis Group 611 22,454
Sprint Corp. 648 25,839
U.S. West Communications Group 672 21,672
U.S. West Media Group (a) 675 12,488
WorldCom Inc. (a) 1,200 31,275
515,284

Tires & Rubber --- 0.1%
Cooper Tire & Rubber Company 120 2,370
Goodyear Tire & Rubber Company 218 11,200
13,570

Tobacco --- 1.4%
American Brands Inc. 260 12,903
Philip Morris Companies Inc. 1,196 134,699
UST Inc. 277 8,968
156,570

Toys & Amusements --- 0.1%
Hasbro Inc. 126 4,898
Mattel Inc. 396 10,989
15,887

Trucking & Freight Forwarding --- 0.1%
Caliber Systems Inc. 56 1,078
Federal Express Corp. (a) 162 7,209
Navistar International Corp. (a) 105 959
Ryder Systems Inc. 114 3,206
12,452

Total Common Stocks
(cost $7,104,478) 8,334,097
Preferred Stock --- 0.0%
Aetna Life & Casualty Company 16 1,270
Fresenius National Medical Care Inc. (a) 140 15

Total Preferred Stock
(cost $1,031) 1,285
Commercial Paper --- 22.4%
Merrill Lynch & Company Inc.**
5.360% 03/20/97 1,300,000 1,283,841
5.300% 03/21/97 925,000 913,385
5.350% 03/21/97 250,000 246,834

Total Commercial Paper
(cost $2,446,209) $2,444,060
U.S. Government Securities --- 1.0%
U.S. Treasury Bills**
4.840% 03/20/97 67,000 66,285
4.800% 03/20/97 30,000 29,683
4.780% 03/20/97 10,000 9,895
Total U.S. Government Securities (cost $105,882) 105,863 Repurchase Agreement
- --- 1.2% State Street Bank and Trust Company,** 4.50%, 01/02/97 (collateralized
by $95,000 par value U.S. Treasury Bonds, 10.625%, due 8/15/15, with a value
of $139,427, cost $131,000) 131,000 131,000
Total Investments --- 101.0%
(cost $9,788,600)* 11,016,305
Liabilities In Excess of
Other Assets --- (1.0)% (109,148)
Net Assets --- 100.0% $10,907,157

(a) non-income producing security

** Represents cost for financial reporting purposes and differs from cost basis
for Federal tax purposes by $44,065. 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 $1,343,871 and $160,231, respectively. Net unrealized
appreciation for tax purposes is $1,183,640. ** $2,920,480 market value of
securities and $560 of cash has been pledged as collateral for initial margin
for future contracts.

Schedule of Future Contracts
Number Contract Total Unrealized
of Contracts Description Contract Value Loss
7 S&P 500 $2,605,750 $(500)
March 1997 (Long)

See notes to financial statements.

#
8

Transamerica Premier Index Fund
Schedule of Investments - December 31, 1996
(Continued)
8

Market
Shares Value

#
8

See notes to financial statements.

Market
Shares Value

See notes to financial statements.

#
10

Transamerica Premier Index Fund
Schedule of Investments - December 31, 1996
(Continued)
10

Market
Shares Value

#
10

See notes to financial statements.

Market
Shares Value

See notes to financial statements.

#
12

Transamerica Premier Index Fund
Schedule of Investments - December 31, 1996
(Continued)
12

Market
Shares Value

#
12

See notes to financial statements.

Market
Shares Value

See notes to financial statements.

#
14

Transamerica Premier Bond Fund
Portfolio Manager, Sharon K. Kilmer

Fund Performance
In a generally difficult year for bond investors, the Premier Bond Fund earned
Investor Class shareholders a total return of 1.16% for the year ended December
31, 1996, in comparison to the Lehman Brothers Government/Corporate Index, which
had a total return of 2.90%. Since its inception on October 2, 1995, the Fund
has realized an annualized return of 4.79%, while the Index has returned 6.10%
over the same period.

Portfolio Manager Comments
Bond portfolios invested in longer maturity bonds had an especially hard time
during 1996, as long-term U.S. Treasuries returned less than 1% for the year.
Fortunately, the credit ratings of several large portfolio holdings were
upgraded during the year. Arkla, Inc.
and Tenet Healthcare added significant total return to the portfolio.
The strength of the economy surprised most people early in the year.
From March through mid-summer, strong job growth propelled the stock market
higher and caused a substantial sell-off in the bond market. In early July,
long-term interest rates rose from the 1995 year-end low of 5.94% to a high of
7.19%, as participants in the market feared higher inflation would accompany
stronger growth.
Third quarter growth slowed as consumer spending declined, spurring the
bond market to rally significantly in October and November. While long-term
interest rates ended the year at 6.65%, sharply down from the highs, they were
nonetheless, higher than they had been at the beginning of the year.

Portfolio asset mix
As of December 31, 1996, the Fund consisted of:

Corporate Bonds 58.8%
U.S. Treasury
Securities 33.7%
Cash or
Cash Equivalents 6.6%
Other Assets 0.9%
Total 100.0%

Going Forward
We expect the markets to be volatile in the first half of 1997, due to
conflicting signs of both strength and weakness. The market will shift from
trading lower on fears of strong growth and increased inflation and higher on
hopes of an economic slowdown. However, by summer it should be apparent that
economic growth has slowed and inflation is under control, providing the impetus
for a sustained interest rate rally. The Premier Bond Fund will continue to be
invested in bonds of high quality companies with improving credit fundamentals.
Thank you for your continued investment in the Transamerica Premier
Bond Fund.

#
15

Performance Highlights (10/2/95 - 12/31/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 6.03% 5.14%
NAV per share at 12/31/96 $9.86 $9.87

$10,000 Invested In The Premier Bond Fund (10/2/95 - 12/31/96)**
15

The Lehman Brothers Government/Corporate Bond Index is a broad-based unmanaged
index of all government and corporate bonds that are investment grade with at
least one year to maturity. The Lehman Brothers Government/Corporate Bond Index
does not reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents.
*Total return for the period from October 2, 1995 (commencement of
operations) through December 31, 1996. **Hypothetical illustration of $10,000
invested at inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through December 31, 1996. 15
# 16 Transamerica Premier Bond Fund Schedule of Investments -
December 31, 1996 16
Principal Market
Amount Value

Principal Market
Amount Value

Corporate Bonds --- 58.8%
Aerospace & Defense --- 3.7%
Boeing Company 8.625% 11/15/31 400,000 $469,280
Automobiles --- 3.5%
General Motors
Corp. 9.625% 12/01/00 400,000 441,504
Drugs & Health Care --- 6.7%
American Home Products
Corp. 7.900% 02/15/05 400,000 426,216
Tenet Healthcare
Corp. 8.625% 12/01/03 400,000 422,000
848,216
Electric Utilities --- 10.9%
Commonwealth Edison
Company 7.000% 07/01/05 300,000 296,943
Gulf States Utilities
Company 8.250% 04/01/04 400,000 422,732
Hydro Quebec 7.375% 02/01/03 400,000 410,852
Northern States
Power Company 7.125% 07/01/25 250,000 244,425
1,374,952
Finance & Banking --- 11.0%
First Union Corp. 6.875% 09/15/05 400,000 394,128
Ford Motor Credit
Company 6.375% 10/06/00 500,000 497,420
Wells Fargo &
Company 7.125% 08/15/06 500,000 500,730
1,392,278
Food & Beverage --- 3.1%
Anheuser Busch
Companies Inc. 7.250% 09/15/15 400,000 398,596
Gas Exploration & Distribution --- 6.3%
Arkla Inc. 8.900% 12/15/06 400,000 450,632
Burlington Resources
Inc. 9.125% 10/01/21 300,000 352,248
802,880
Industrials --- 8.0%
Lockheed Martin
Corp. 7.650% 05/01/16 500,000 517,205
Mallinckrodt
Group Inc. 6.750% 09/15/05 500,000 489,605
1,006,810
Petroleum Services --- 3.7%
Anadarko Petroleum
Corp. 5.875% 10/15/03 500,000 467,645

Retail --- 1.9%
Pathmark Stores
Inc. 9.625% 05/01/03 250,000 $ 239,367
Total Corporate Bonds
(cost $7,508,554) 7,441,528
U.S. Government Securities --- 33.7%
U.S. Treasury Bonds
6.500% 05/15/05 1,500,000 1,510,080
6.500% 08/15/05 300,000 301,923
5.875% 11/15/05 1,180,000 1,137,780
7.500% 11/15/16500,000 541,250
7.625% 02/15/25 700,000 777,546
Total U.S. Government Securities
(cost $4,376,908) 4,268,579
Repurchase Agreement --- 6.6%
State Street Bank and Trust Company, (collateralized by $580,000 par value U.S.
Treasury Bonds, 10.625%, due 8/15/15, with a value of $851,240, cost $834,000)
4.500% 01/02/97 834,000 834,000
Total Investments --- 99.1%
(cost $12,719,462)* 12,544,107
Other Assets Less Liabilities --- 0.9% 117,672
Net Assets --- 100.0% $12,661,779

#
16

See notes to financial statements.

Transamerica Premier Balanced Fund
Portfolio Managers, Sharon K. Kilmer and Jeffrey S. Van Harte 17 Fund
Performance The Premier Balanced Fund provided Investor Class shareholders with
a total return of 15.28% for the year ended December 31, 1996. In comparison,
the benchmark index return was only 12.63%. Since its inception on October 2,
1995, the Fund has achieved an annualized return of 14.09%, while the benchmark
index returned 14.66%. The Fund's outstanding performance in the past year was
due to its investment in industry leading technology and financial services
stocks, as well as an overweighted asset allocation in common stocks. The Fund's
asset allocation at year-end was 67% in common stocks, 30% in bonds, and 3% in
cash equivalents.

Portfolio Managers' Comments
Stock and bond returns diverged in 1996 due to the surprisingly strong economy.
Equity investors enjoyed good corporate earnings momentum while bond investors
worried about the strong economy and returning inflation. After closing 1995 at
a yield of 5.94%, the bellwether (30-year U.S. Treasury Bond) long bond yield
rose to 6.65% at the end of 1996. The Lehman Brothers Government/Corporate Bond
Index returned only 2.90% for the year. In contrast, the stock market continued
its dramatic move upward, with the S&P 500 Index returning 22.96% for 1996.

Portfolio Asset Mix
As of December 31, 1996, the Fund consisted of:

Common Stocks 66.7%
Bonds 29.6%
Cash and
Cash Equivalents 3.7%
Total 100.0%

Going Forward
The gap in performance that developed in 1996 may close this year as the stock
and bond markets react to slower economic growth. Along with the strong U.S.
dollar, the fact that the Japanese and European economies are facing the
daunting task of restructuring and downsizing their private and public sectors
could weaken demand for U.S. exports. A positive note, however, is that the U.S.
bond market could rally in the face of relatively weak worldwide economies.
The Premier Balanced Fund's asset allocation will continue to have a
bias toward common stocks, with a weighting of 60-70% equities to 30-40% bonds.
The Fund's stock holdings consist mostly of large capitalization growth stocks
with dominant market share positions. Growth stocks often do very well in
declining interest rate and weak economic environments, as long as they maintain
their earnings growth. The Fund's positions in leading technology companies such
as Intel and Microsoft, and leading financial services companies such as Charles
Schwab and Wells Fargo, should serve it well. The Fund's bond component will
extend its maturities slightly and will continue to invest in high-quality
companies with improving credit fundamentals.
Thank you for your continued investment in the Transamerica Premier
Balanced Fund.

#
18

Transamerica Premier Balanced Fund

Performance Highlights (10/2/95 - 12/31/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 17.93% 17.03%
NAV per share at 12/31/96 $11.57 $11.59

$10,000 Invested In The Premier Balanced Fund (10/2/95 - 12/31/96)**
18

The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") consists of
500 widely held, publicly traded common stocks. The Lehman Brothers
Government/Corporate Bond Index is a broad-based unmanaged index of all
government and corporate bonds that are investment grade with at least one year
to maturity. The Standard & Poor's 500 Composite Stock Price Index and the
Lehman Brothers Government/Corporate Bond Index do not reflect any commissions
or fees which would be incurred by an investor purchasing the securities
represented by each index.
*Total return for the period from October 2, 1995 (commencement of operations)
through December 31, 1996. **Hypothetical illustration of $10,000 invested at
inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through December 31, 1996. 18
# 19 Transamerica Premier Balanced Fund Schedule of Investments -
December 31, 1996 19

Market
Shares Value

Shares or
Principal Market
Amount Value

Common Stocks --- 66.7%
Banking --- 3.3%
Wells Fargo & Company 2,000 $ 539,500
Broadcasting --- 1.5%
HSN Inc. (a) 10,000 237,500
Business Services --- 5.2%
First Data Corp. 13,000 474,500
Transaction Systems Architects Inc. (a) 11,000 365,750
840,250
Chemicals --- 2.5%
Betzdearborn Inc. 7,000 409,500
Computers & Business Equipment --- 7.4%
Cisco Systems Inc. (a) 7,000 445,375
Dell Computer Corp. (a) 14,000 743,750
1,189,125
Electrical Equipment --- 2.6%
Millipore Corp. 10,000 413,750
Electronics --- 8.2%
Applied Materials Inc. (a) 13,000 467,187
Intel Corp. 6,500 851,094
1,318,281
Financial Services --- 9.7%
Charles Schwab Corp. 15,000 480,000
Franklin Resources Inc. 10,000 683,750
Moneygram Payment Systems Inc. (a) 30,000 397,500
1,561,250
Household Appliances & Products --- 2.4%
Gillette Company 5,000 388,750
Hotels & Restaurants --- 6.2%
Host Marriott Corp. (a) 20,000 320,000
Marriott International Inc. 5,500 303,875
Mirage Resorts Inc. (a) 17,000 367,625
991,500
Industrial Machinery --- 1.7%
Illinois Tool Works Inc. 3,500 279,563
Leisure Time --- 3.0%
Walt Disney Company 7,000 487,375
Retail Grocery --- 3.9%
Smith's Food & Drug Centers Inc. 20,000 620,000
Software --- 7.5%
Broderbund Software Inc. (a) 10,000 297,500
Intuit (a) 8,000 252,000
Microsoft Corp. (a) 8,000 661,000
1,210,500
Telecommunications --- 1.6%
Airtouch Communications Inc. (a) 10,000 252,500
Total Common Stocks
(cost $8,469,100) 10,739,344

Corporate Bonds --- 18.9%
Broadcasting --- 0.6%
Viacom Inc. 7.750% 06/01/05 100,000 $ 98,467
Drugs & Health Care --- 2.0%
American Home
Products Corp. 7.900% 02/15/05 300,000 319,662
Electric Utilities --- 3.8%
Commonwealth Edison
Company 7.000% 07/01/05 300,000 296,943
Gulf States Utilities
Company 8.250% 04/01/04 300,000 317,049
613,992
Finance & Banking --- 5.6%
First Union Corp. 6.875% 09/15/05 300,000 295,596
General Motors
Acceptance Corp. 7.375% 05/28/99 300,000 307,038
Mellon Bank Corp. 7.000% 03/15/06 300,000 298,314
900,948
Gas & Pipeline Utilities --- 1.9%
Williams Companies
Inc. 7.500% 09/15/99 300,000 303,789
Gas Exploration & Distribution --- 1.4%
Arkla Inc. 8.900% 12/15/06 200,000 225,316
Petroleum Services --- 1.8%
Anadarko Petroleum
Corp. 5.875% 10/15/03 300,000 280,587
Retail --- 1.8%
Dayton-Hudson Corp. 6.400% 02/15/03300,000 292,161
Total Corporate Bonds
(cost $3,071,643) 3,034,922
U.S. Government Securities --- 10.7%
U.S. Treasury Notes 6.375% 08/15/02400,000 402,624
5.875% 11/15/05 1,370,000 1,320,981
Total U.S. Government Securities
(cost $1,796,952) 1,723,605
Repurchase Agreement --- 3.4%
State Street Bank and Trust Company, (collateralized by $385,000 par value U.S.
Treasury Bonds, 10.625%, due 8/15/15, with a value of $565,048,
cost $551,000) 4.500% 01/02/97 551,000 551,000
Total Investments --- 99.7%
(cost $13,888,695)* 16,048,871
Other Assets Less Liabilities --- 0.3% 50,963
Net Assets --- 100.0% $16,099,834

(a) non-income producing security
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $2,774,150 and $613,974,
respectively. Net unrealized appreciation for tax purposes is $2,160,174.

See notes to financial statements.

#
20

Transamerica Premier Short-Intermediate Government Fund
Portfolio Manager, Kevin J. Hickam
20

Fund Performance
The Premier Short-Intermediate Government Fund provided Investor Class
shareholders with a total return of 2.62% for the year ended December 31, 1996.
In comparison, the total return of the Lehman Brothers Government Index was
4.05%. Since inception on October 2, 1995, the Fund has achieved an annualized
total return of 4.93%, relative to an annualized return of 5.98% for the Index.
The Fund's strategy is to maximize total return through investments in
intermediate fixed income bonds with the highest credit quality. To reduce
volatility, the Fund's maximum average maturity will not exceed 10 years, and
government-backed bonds will represent the majority of the holdings.

Portfolio Manager Comments
Expectations of slow economic growth and falling interest rates for 1996 quickly
reversed in the spring as consumers gained confidence and spent heavily on
housing and autos. The Federal Reserve lowered the Federal Funds rate by .25% to
%5.25% in January, but persistent worries over inflation kept short-term rates
steady throughout the year.

Investors speculating that the Federal Reserve would tighten monetary
policy pushed long-term interest rates significantly higher through mid-year.
However, in the fall, economic growth slowed in an environment of continuing low
inflation, which resulted in the bond market recovering nearly half its losses.

Portfolio Asset Mix
As of December 31, 1996, the Fund consisted of:

U.S. Government
Securities 97.1%
Other Assets 2.9%
Total 100.0%

Going forward
The economy looks solid as 1997 begins. While we expect economic growth to slow
from the fourth quarter 1996 GDP increase of 4.7%, it should still post an
overall gain in the range of 2.0% to 2.5% for the year. Inflation should again
post a moderate increase of 3.0% to 3.5% for the year.

Special Note
The Board of Directors of the Transamerica Premier Funds has determined that it
is in the best interest of the shareholders of the Short-Intermediate Government
Fund to suspend sales to new purchasers as of February 15, 1997. In making this
decision, the Board weighed the level of expenses being incurred to operate the
Fund relative to its size, and determined that it is no longer economically
feasible to operate the Fund. In addition, the investment adviser and
administrator of the Fund have determined that it is no longer economically
feasible to subsidize the expenses of the Fund, and therefore, have decided to
discontinue any fee waivers and expense reimbursement as of April 1, 1997. For
the year ended December 31, 1996, the actual subsidized expense ratio for this
Fund was 0.85%. Absent the fee waivers and expense reimbursement, this ratio
would have been 3.3% for the same period.

#
21

Performance Highlights (10/2/95 - 12/31/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 6.20% 5.21%
NAV per share at 12/31/96 $9.85 $9.85

$10,000 Invested In The Premier Short-Intermediate Government Fund (10/2/95 -
12/31/96)**
21

The Lehman Brothers Intermediate-Term Government Bond Index is comprised of all
publicly issued, non-convertible debt of the U.S. government or any agency
thereof, quasi-federal corporations, and corporate debt guaranteed by the U.S.
government with a maturity of between one and ten years.
*Total return for the period from October 2, 1995 (commencement of
operations) through December 31, 1996. **Hypothetical illustration of $10,000
invested at inception (October 2, 1995), assuming reinvestment of dividends
and capital gains at net asset value through December 31, 1996.

21
Schedule of Investments - December 31, 1996
21

Principal Market
Amount Value

Market
Value

U.S. Government Securities --- 97.1%
U.S. Treasury Bond Strips Principal
0.000% 05/15/17 250,000 $ 62,545
U.S. Treasury Notes
5.125% 06/30/98 515,000 510,334
6.375% 07/15/99 1,000,000 1,009,060
6.250% 08/31/00 500,000 501,875
5.625% 11/30/00 175,000 171,827
6.500% 08/15/05 300,000 301,923
5.875% 11/15/05 475,000 458,005
7.000% 07/15/06 525,000 545,428

Total U.S. Government Securities
(cost $3,610,463) $3,560,997
Other Assets Less Liabilities --- 2.9% 105,673
Net Assets --- 100.0% $3,666,670

* 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 $7,206 and $56,672, respectively.
Net unrealized depreciation for tax purposes is ($49,466). 21 See notes
to financial statements. 21 # 22 Transamerica Premier Cash
Reserve Fund Portfolio Manager, Kevin J. Hickam 22 Fund Performance The
Investor Class Premier Cash Reserve Fund posted a total return of 5.34% for the
year ended December 31, 1996. In comparison, the total return for the average
IBC/Donoghue First Tier money market fund was 4.86%. The Fund ranked ninth among
289 funds for the year, according to Lipper Analytical Services. As of December
31, 1996, the seven day current yield was 5.35%* and the annualized return since
inception on October 2, 1995 was 5.40%

Portfolio Manager Comments
At the beginning of 1996 the economy seemed to be losing momentum, with anemic
holiday sales leading to GDP of just 0.3% for the fourth quarter of 1995 and
1.3% for the entire year. In response, the Federal Reserve lowered the Federal
Funds rate by 0.25% to 5.50% in December 1995, and to 5.25% in January 1996.
However, economic growth rebounded strongly in the first-half of 1996,
raising the likelihood of higher inflation as well as speculation as to what the
Federal Reserve's response would be. Investors reacted by pushing long-term
interest rates significantly higher through the middle of the year. Over the
remainder of 1996, interest rates moved off their highs as employment gains
slowed, inflation remained subdued, and the Federal Reserve stayed on the
sidelines. Short-term interest rates, which tend to be more closely tied to the
Federal Funds rate than long-term interest rates, moved in a much narrower
range.

Portfolio Asset Mix
As of December 31, 1996, the Fund consisted of:

Commercial Paper
(Domestic) 64.5%
Commercial Paper
(Canadian) 10.4%
Short-term
Corporate Notes 24.7%
Cash and
Cash Equivalents .4%
Total 100.0%

Going Forward
As 1997 begins, the economy looks solid. While fourth quarter 1996 GDP posted a
4.7% increase, we expect the pace of economic growth to slow to an overall
increase of 2.0% to 2.5% for the coming year.
Inflation should once again post a moderate increase of 3.0% to 3.5% in
1997. In such an environment, the Federal Reserve is unlikely to make any
significant policy changes, and short-term interest rates should continue to
trade in a narrow range.
Thank you for your continued investment in the Transamerica Premier
Cash Reserve Fund.

The Fund is neither insured nor guaranteed by the U.S. government, and
there can be no assurance that the Fund will be able to maintain a stable net
asset value of $1.00 per share.

*The Investment Adviser agreed to waive their Adviser Fee and the Administrator
agreed to assume any other operating expenses for the Fund. Otherwise, the
current and effective yields would have been 2.55% and 2.68%, respectively.

#
23

Performance Highlights (10/2/95 - 12/31/96)
Investor Class Adviser Class
Inception Date 10/2/95 10/2/95
Total Return* 6.65% 6.36%
NAV per share at 12/31/96 $1.00 $1.00

$10,000 Invested In The Premier Cash Reserve Fund (10/2/95 - 12/31/96)**
23
The IBC's Money Fund ReportTM -All Taxable, First Tier is a composite of taxable
money market funds that meet the SEC's definition of first tier securities
contained in Rule 2a-7 under the Investment Company Act of 1940. The IBC's Money
Fund ReportTM -All Taxable, First Tier does not reflect any commissions or fees
which would be incurred by an investor purchasing the securities it represents.
*Total return for the period from October 2, 1995 (commencement of operations)
through December 31, 1996.
**Hypothetical illustration of $10,000 invested at inception (October 2, 1995),
assuming reinvestment of dividends and capital gains at net asset value through
December 31, 1996.

#
24

Transamerica Premier Cash Reserve Fund
Schedule of Investments - December 31, 1996
24

Principal Market
Amount Value

Commercial Paper -Domestic --- 64.5%
Banking --- 9.3%
Banc One Corp. 5.300% 01/10/97 1,500,000 $ 1,498,013
Republic New York
Corp. 5.350% 01/15/97 1,500,000 1,496,879
2,994,892
Brokerage --- 4.5%
Merrill Lynch & Company Inc.
5.330% 01/23/97 1,000,000 996,743
5.400% 01/23/97 470,000 468,449
1,465,192
Chemicals --- 3.7%
EI DuPont de Nemours
& Company 5.310% 01/21/97 1,200,000 1,196,460
Commercial Financial Services --- 4.5%
General Electric
Capital Corp. 5.510% 01/07/97 1,450,000 1,448,668
Computers & Business Equipment --- 1.6%
Xerox Corp. 5.300% 01/07/97 500,000 499,558
Consumer Financial Services --- 18.3%
Associates Corp. of
North America 5.300% 01/09/97 1,540,000 1,538,186
Ford Motor Credit
Company 5.430% 01/27/97 1,525,000 1,519,019
Toyota Motor
Credit Company 5.300% 02/03/97 525,000 522,450
5.260% 03/31/97 845,000 834,012
USAA Capital Corp. 5.520% 01/06/971,000,000 999,234
5.310% 02/03/97 500,000 497,566
5,910,467
Food Processing --- 4.7%
Cargill Inc. 5.250% 02/14/97 1,515,000 1,505,279
Telecommunications --- 13.6%
American Telephone &
Telegraph Company 5.350% 02/10/97 1,500,000 1,491,083
Ameritech Capital
Funding Corp. 5.270% 02/07/97 1,500,000 1,491,875
GTE California Inc. 5.540% 01/29/971,400,000 1,393,968
4,376,926
Utilities --- 4.3%
Florida Power Corp. 5.500% 01/08/971,400,000 1,398,503
Total Commercial Paper --- Domestic
(amortized cost $20,795,945) 20,795,945

Commercial Paper -Foreign --- 10.4% Banking --- 7.0% Canadian Imperial Holding
Inc.
5.300% 01/06/97 800,000 $ 799,411
5.295% 01/06/97 725,000 724,466
Toronto Dominion
Holdings 5.300% 02/03/97 750,000 746,356
2,270,233
Government --- 3.4%
Province of British
Columbia 5.260% 04/01/97 1,100,000 1,085,535
Total Commercial Paper --- Foreign
(amortized cost $3,355,768) 3,355,768
Short-Term Corporate Notes --- 22.7%
Finance & Banking --- 18.0%
AI Credit Corp. 5.280% 01/13/97 1,500,000 1,497,360
Asset Securitization
Cooperative Corp. 5.300% 03/11/97 1,550,000 1,534,255
Bank of New York 5.320% 01/15/97 1,225,000 1,222,466
John Deere Capital Corp.
5.530% 02/10/97 1,000,000 993,856
5.270% 02/12/97 560,000 556,557
5,804,494
Technology --- 4.7%
IBM Credit Corp. 5.290% 03/04/97 1,525,000 1,511,106
Total Short-Term Corporate Notes (amortized cost $7,315,600) 7,315,600
U.S. Government Agency --- 2.0%
Federal National Mortgage Association Discount
Notes (amortized cost $644,524)
5.320% 02/27/97 650,000 644,524
Repurchase Agreement --- 0.5% State Street Bank and Trust Company,
(collateralized by $110,000 par value U.S. Treasury Bonds, 10.625%, due 8/15/15,
with a value of $161,442, cost $154,000)
4.500% 01/02/97 154,000 154,000
Total Investments --- 100.1%
(amortized cost $32,265,837) 32,265,837
Liabilities in Excess of
Other Assets --- (0.1)% (21,859)
Net Assets --- 100.0% $32,243,978

24
#
24

See notes to financial statements.

Statements of Assets and Liabilities
December 31, 1996
25
<TABLE>
<CAPTION>

Transamerica
Premier Transamerica
Transamerica Transamerica Transamerica Transamerica Short- Premier
Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
Assets
<S> <C> <C> <C> <C> <C>
Investments, at value (Note 4) $ 31,180,063 $ 11,016,305 $ 12,544,107 $ 16,048,871
$ 3,560,997 $ 32,265,837
Cash 459 560 526 931 54,931 789
Receivables:
Dividends and interest 13,580 15,650 189,750 86,082 68,972 19
Securities sold 0 1,672 0 0 0 0
Fund shares sold 47,921 2,874 803 26,993 359 49,392
Due from Administrator (Note 2) 0 6,630 0 0 0
2,655
Prepaid expenses and other assets 3,414 2,327 3,106 3,526 987
7,242
Total Assets 31,245,437 11,046,018 12,738,292 16,166,403
3,686,246 32,325,934
Liabilities
Due to Adviser (Note 2) 65,305 0 10,717 20,876 4,495 0
Payables:
Securities purchased 0 44,599 0 0 0 0
Fund shares redeemed 49,179 4,909 25,184 0 0 780
Directors fees 2,502 1,045 1,602 1,785 471 3,846
Distribution service fees
payable (Note 3) 6,753 963 2,767 3,471 788 2,659
Variation margin payable 0 51,100 0 0 0 0
Other accrued expenses 54,741 36,245 36,243 40,437 13,822 74,671
Total Liabilities 178,480 138,861 76,513 66,569 19,576 81,956
Total Net Assets $ 31,066,957 $ 10,907,157 $ 12,661,779 $ 16,099,834 $
3,666,670 $ 32,243,978
Net Assets Consist of:
Paid in capital $ 25,229,994 $ 9,620,139 $ 12,851,838 $ 14,097,711 $
3,725,786 $32,243,978
Undistributed net investment
income (loss) (Note 1) (152,433) (476) 37 (367) (295) 0
Accumulated net realized gain (loss) on
investments and futures transactions 18,723 60,289 (14,741) (157,686)
(9,355) 0
Net unrealized appreciation (depreciation)
of investments and futures contracts 5,970,673 1,227,205 (175,355)
2,160,176 (49,466) 0
Total Net Assets $ 31,066,957 $ 10,907,157 $ 12,661,779 $ 16,099,834 $
3,666,670 $ 32,243,978
Investor Class
Net assets $ 30,454,107 $ 10,814,068 $ 12,552,802 $ 16,040,518 $
3,652,303 $ 32,040,619
Shares outstanding 2,407,362 904,167 1,273,697 1,385,895
370,807 32,040,619
Net asset value and offering and
redemption price per Investor share $ 12.65 $ 11.96 $ 9.86 $ 11.57 $ 9.85 $
1.00
Adviser Class
Net assets $ 612,850 $ 93,089 $ 108,977 $ 59,316 $ 14,367 $ 203,359
Shares outstanding 48,737 7,776 11,046 5,118 1,458 203,359
Net asset value and offering and
redemption price per Adviser share $ 12.57 $ 11.97 $ 9.87 $ 11.59 $ 9.85 $
1.00
Investments, at Cost $ 25,209,390 $ 9,788,600 $ 12,719,462 $ 13,888,695 $
3,610,463 $ 32,265,837

</TABLE>

See notes to financial statements.

#
26

Statements of Operations
Year ended December 31, 1996
26
<TABLE>
<CAPTION>

Transamerica
Premier Transamerica
Transamerica Transamerica Transamerica Transamerica Short- Premier
Premier Premier Premier Premier Intermediate Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Government Fund Fund
Investment Income
<S> <C> <C> <C> <C> <C> <C>
Interest income $ 45,059 $ 85,047 $ 835,919 $ 348,205 $ 214,473 $ 1,598,405
Dividend income* 147,481 157,304 0 47,468 0 0
Total Income 192,540 242,351 835,919 395,673 214,473 1,598,405
Expenses
Investment adviser fee (Note 2) 194,101 25,718 72,032 106,251 17,620
102,415
Transfer agent fees 92,539 48,630 45,069 54,440 41,871 54,426
Distribution fees (Note 3):
Investor shares 56,290 8,533 29,831 35,155 8,792 28,977
Adviser shares 2,396 265 550 787 50 0
Custodian fees 50,135 95,167 37,585 43,680 17,493 56,456
Registration fees 32,218 23,378 25,753 26,898 20,840 35,331
Audit fees 13,264 4,911 7,075 8,622 2,063 15,336
Legal fees 12,118 4,735 7,056 8,166 2,065 16,743
Printing 11,058 5,482 8,896 9,331 2,625 20,233
Directors' fees and expenses (Note 2) 11,422 4,315 6,208 7,472 1,814
14,692
Insurance 2,606 1,806 3,156 3,102 927 3,217
Service fees (Note 3) 798 88 183 262 17 331
Other 142 82 104 111 60 191
Total operating expenses
before waiver and reimbursement 479,087 223,110 243,498 304,277 116,237
348,348
Fees waived by Investment
Adviser (Note 2) (134,162) (25,718) (72,032) (98,079) (17,620) (102,415)
Expenses reimbursed by
Administrator (Note 2) 0 (167,471) (14,854) 0 (68,613)
(172,585)
Total Expenses 344,925 29,921 156,612 206,198 30,004 73,348
Net Investment Income (Loss) (152,385) 212,430 679,307 189,475 184,469
1,525,057
Net Realized and Unrealized
Gain (Loss) From:
Net realized gain (loss) on investments
and futures transactions 19,987 597,132 20,100 (131,140) 12,136 0
Net change in unrealized appreciation
(depreciation) of investments and
futures contracts during the year 6,207,735 950,341 (541,487) 2,023,894
(102,218) 0
Net Realized and Unrealized
Gain (Loss) on Investments
and Future Transactions 6,227,722 1,547,473 (521,387) 1,892,754
(90,082) 0
Net Increase in Net Assets
Resulting From Operations $ 6,075,337 $ 1,759,903 $ 157,920 $ 2,082,229 $
94,387 $ 1,525,057
*Net of foreign withholding taxes of: $ 1,603 $ 968 $ 0 $ 0 $ 0 $
0
</TABLE>

#
26

See notes to financial statements.

Statements of Changes in Net Assets

27
<TABLE>
<CAPTION>

Transamerica Premier Transamerica Premier Transamerica Premier
Equity Fund Index Fund Bond Fund
Year Period Year Period Year Period
Ended Ended Ended Ended Ended Ended
December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995* December 31,
1996December 31, 1995*
Increase in
Net Assets:
From operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ (152,385) $ 21,826 $ 212,430 $ 37,969 $ 679,307
173,137
Net realized gain (loss)
on investments and futures
transactions 19,987 (1,264) 597,132 125 20,100 (34,841)
Net change in unrealized appreciation
(depreciation) of investments
and futures contracts
during the period 6,207,735 (237,062) 950,341 276,864 (541,487)
366,132
Net increase (decrease)
in net assets resulting
from operations 6,075,337 (216,500) 1,759,903 314,958 157,920
504,428

Dividends and Distributions
to shareholders from:
Net investment income:
Investor shares (21,868) 0 (250,208) 0 (738,858)
(109,662)
Adviser shares (6) 0 (667) 0 (3,840) (47)
Net realized gains:
Investor shares 0 0 (532,417) 0 0 0
Adviser shares 0 0 (4,551) 0 0 0
Fund share transactions (Note 5) 13,886,118 11,327,206 3,000,914 6,602,555
1,410,447 11,424,721
Increase in net assets 19,939,581 11,110,706 3,972,974 6,917,513
825,669 11,819,440

Net Assets
Beginning of year 11,127,376 16,670 6,934,183 16,670 11,836,110
16,670
End of year1 $ 31,066,957 $ 11,127,376 $ 10,907,157 $ 6,934,183 $
12,661,779 $ 11,836,110

1Includes undistributed net
investment income (loss) of: $ (152,433) $ 21,826 $ (476) $ 37,969 $ 37 $
63,428

</TABLE>

* Fund commenced operations on October 2, 1995.

See notes to financial statements.

#
28

Statements of Changes in Net Assets

28
<TABLE>
<CAPTION>

Transamerica Premier Transamerica Premier Short- Transamerica Premier
Balanced Fund Intermediate Government Fund Cash Reserve Fund
Year Period Year Period Year Period
Ended Ended Ended Ended Ended Ended
December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995* December 31,
1996December 31, 1995*
Increase in
Net Assets:
From operations:
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss) $ 189,475 $ 72,055 $ 184,469 $ 46,374 $ 1,525,057 $
334,544
Net realized gain (loss)
on investments and
futures transactions (131,140) (26,546) 12,136 8,471 0 0
Net change in unrealized
appreciation (depreciation)
of investments and futures
contracts during the year 2,023,894 136,282 (102,218) 52,752 0
0
Net increase
in net assets resulting
from operations 2,082,229 181,791 94,387 107,597 1,525,057
334,544

Dividends and Distributions to
shareholders from:
Net investment income:
Investor shares (261,146) 0 (201,187) (29,622) (1,518,377)
(334,364)
Adviser shares (751) 0 (327) (2) (6,680) (180)
Net realized gains:
Investor shares 0 0 (29,877) 0 0 0
Adviser shares 0 0 (85) 0 0 0
Fund share transactions (Note 5) 2,177,366 11,903,675 367,493 3,341,623
4,226,226 28,001,102
Increase in net assets 3,997,698 12,085,466 230,404 3,419,596
4,226,226 28,001,102

Net Assets
Beginning of year 12,102,136 16,670 3,436,266 16,670 28,017,752
16,650
End of year1 $ 16,099,834 $12,102,136 $ 3,666,670 $ 3,436,266 $
32,243,978 $ 28,017,752

1Includes undistributed net
investment income (loss) of: $ (367) $ 72,055 $ (295) $ 16,750 $ 0 $ 0

</TABLE>

* Fund commenced operations on October 2, 1995.
28

#
28

See notes to financial statements.

Financial Highlights --- Investor Class Shares
29

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

Transamerica Transamerica Transamerica
Premier Equity Fund Premier Index Fund Premier Bond Fund
Year Period Year Period Year Period
Ended Ended Ended Ended Ended Ended
December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995*
Net Asset Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of period $ 9.82 $ 10.00 $ 10.59 $ 10.00 $ 10.37 $ 10.00

Investment Operations
Net investment income (loss)1 (0.06) 0.02 0.27 0.06 0.56 0.16
Net realized and
unrealized gain (loss) 2.91 (0.20) 2.06 0.53 (0.46) 0.32
Total from investment operations 2.85 (0.18) 2.33 0.59 0.10 0.48

Distributions To
Shareholders From:
Net investment income (0.02) 0.00 (0.33) 0.00 (0.61) (0.11)
Net realized gains 0.00 0.00 (0.63) 0.00 0.00 0.00
Total distributions (0.02) 0.00 (0.96) 0.00 (0.61) (0.11)

Net asset value
End of period $12.65 $ 9.82 $11.96 $10.59 $ 9.86 $10.37

Total Return2 29.07% (1.80)% 22.33% 5.90% 1.16% 4.82%

Ratios And
Supplemental Data
Expenses to average net assets 3, 4 1.50% 0.25% 0.35% 0.25% 1.30% 0.25%
Net investment income (loss)4 (0.66)% 1.51% 2.48% 2.70% 5.66% 6.55%
Portfolio turnover rate 4 60% 0% 94% 4% 7% 19%
Average commission rate 5 $0.0660 $0.0678 $0.0363 0.0418 - -
Net assets, end of period $30,454,107 $11,070,182 $10,814,068 $6,933,960 $12,552,802 $11,826,508

</TABLE>

Transamerica Transamerica Premier Transamerica Premier
Premier Balanced Fund Short-Intermediate Government Fund Cash Reserve Fund
Year Period Year Period Year Period
Ended Ended Ended Ended Ended Ended
December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995*
Net Asset Value
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of period $ 10.23 $ 10.00 $ 10.25 $ 10.00 $ 1.00 $ 1.00

Investment Operations
Net investment income 1 0.14 0.06 0.52 0.15 0.05 0.01
Net realized and
unrealized gain (loss) 1.40 0.17 (0.27) 0.20 0.00 0.00
Total from investment operations 1.54 0.23 0.25 0.35 0.05 0.01

Distributions To
Shareholders From:
Net investment income (0.20) 0.00 (0.57) (0.10) (0.05) (0.01)
Net realized gains 0.00 0.00 (0.08) 0.00 0.00 0.00
Total distribution (0.20) 0.00 (0.65) (0.10) (0.05) (0.01)

Net asset value
End of period $ 11.57 $ 10.23 $ 9.85 $ 10.25 $ 1.00 $ 1.00

Total Return2 15.28% 2.30% 2.62% 3.49% 5.34% 1.39%

Ratios And
Supplemental Data
Expenses to average net assets 3,4 1.45% 0.25% 0.85% 0.25% 0.25% 0.25%
Net investment income 4 1.34% 3.12% 5.24% 5.88% 5.21% 5.55%
Portfolio turnover rate 4 19% 16% 72% 260% N/A N/A
Average commission rate 5 $0.0656 $0.0662 - - - -
Net assets, end of period $16,040,518 $12,083,554 $3,652,303 $3,436,050 $32,040,619 $27,996,475
</TABLE>

Transamerica Transamerica Transamerica
Premier Equity Fund Premier Index Fund Premier Bond Fund
Year Period Year Period Year Period
Ended Ended Ended Ended Ended Ended
December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995*
Net Asset Value
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Beginning of period $ 9.81 $ 10.00 $ 10.58 $ 10.00 $ 10.37 $ 10.00

Investment Operations
Net investment income (loss) 1 (0.10)0.01 0.16 0.04 0.49 0.12
Net realized and
unrealized gain (loss) 2.86 (0.20)2.06 0.54 (0.46) 0.35
Total from investment operations 2.76 (0.19) 2.22 0.58 0.03 0.47

Distributions To
Shareholders From:
Net investment income 0.00 0.00 (0.20) 0.00 (0.53) (0.10)
Net realized gains 0.00 0.00 (0.63) 0.00 0.00 0.00
Total distributions 0.00 0.00 (0.83) 0.00 (0.53) (0.10)

Net asset value
End of period $ 12.57 $ 9.81 $ 11.97 $ 10.58 $ 9.87 $ 10.37

Total Return2 28.15% (1.90)% 21.16% 5.80% 0.43% 4.69%

Ratios And
Supplemental Data
Expenses to average net assets 3,4 2.25% 0.94% 1.15% 1.12% 2.05% 0.98%
Net investment income (loss) 4 (1.44)% 0.63% 1.62% 1.49% 4.94% 5.72%
Portfolio turnover rate 4 60% 0% 94% 4% 7% 19%
Average commission rate 5 $0.0660 $0.0678 $0.0363 $0.0418 - -
Net assets, end of period $612,850 $57,194 $93,089 $223 $108,977 $9,602

</TABLE>

See notes to financial statements.

#
32

Financial Highlights --- Adviser Class Shares

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

Transamerica Transamerica Premier Transamerica Premier
Premier Balanced Fund Short-Intermediate Government Fund Cash Reserve Fund
Year Period Year Period Year Period
Ended Ended Ended Ended Ended Ended
December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995* December 31, 1996 December 31, 1995*
Net Asset Value
<S> <C> <C> <C> <C> <C> <C>
beginning of period $10.22 $10.00 $10.25 $10.00 $1.00 $1.00

Investment Operations
Net investment income 1 0.07 0.03 0.44 0.12 0.05 0.01
Net realized and
unrealized gain (loss) 1.40 0.19 (0.27) 0.22 0.00 0.00
Total from investment operations 1.47 0.22 0.17 0.34 0.05 0.01

Distributions To
Shareholders From:
Net investment income (0.10) 0.00 (0.49) (0.09) (0.05) (0.01)
Net realized gains 0.00 0.00 (0.08) 0.00 0.00 0.00
Total distribution (0.10) 0.00 (0.57) (0.09) (0.05) (0.01)

Net asset value
End of period $11.59 $10.22 $ 9.85 $10.25 $1.00 $1.00

Total Return 2 14.51% 2.20% 1.78% 3.37% 5.18% 1.26%

Ratios And
Supplemental Data
Expenses to average net assets 3,4 2.20% 0.98% 1.60% 0.99% 0.40% 0.38%
Net investment income 4 0.65% 2.36% 4.51% 4.84% 5.04% 5.43%
Portfolio turnover rate 4 19% 16% 72% 260% N/A N/A
Average commission rate 5 $0.0656 $0.0662 - - - -
Net assets, end of period $59,316 $18,582 $14,367 $216 $203,359 $21,277

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* Each Fund commenced operations on October 2, 1995.
1 Net investment income is after waiver of fees by the Investment Adviser and
reimbursement of certain expenses by the Administrator (see Note 2 to the
financial statements). If the Investment Adviser had not waived fees and the
Administrator had not reimbursed expenses for the periods ended December 31,
1996 and December 31, 1995, respectively, net investment income (loss) per share
would have been $(2.77) and $(1.95) for the Balanced Fund, $(38.93) and $0.08
for the Short-Intermediate Government Fund, and $(0.17) and $(0.24) for the Cash
Reserve Fund. 2 Total return represents aggregate total return for the period
indicated and is not annualized. 3 If the Investment Adviser had not waived fees
and the Administrator had not reimbursed expenses for the periods ended December
31, 1996 and December 31, 1995, respectively, the ratio of operating expenses to
average net assets would have been 29.44% and 150.92% for the Balanced Fund,
406.39% and 2.55% for the Short-Intermediate Government Fund, and 22.67% and
109.23% for the Cash Reserve Fund. 4 Annualized for the period ended December
31, 1995. 5 Represents the average commission rate paid on equity security
transactions on which commissions are charged. 32 # 32 See notes
to financial statements. 33 Notes to Financial Statements December 31,
1996 33 1. Significant Accounting Policies Transamerica Investors, Inc.
(the "Company") was organized as a Maryland corporation on February 22, 1995.
The Company is registered 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
series has two classes of shares, Investor Shares and Adviser Shares. The
Company commenced investment operations on October 2, 1995. For information of
investment objectives and strategies, please refer to the Fund's prospectus. 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 --- Equity securities listed on a principal exchange
(U.S. or foreign), NASDAQ and over-the-counter securities are valued at the last
sale price, or, if no sale occurs, at the mean between the closing bid and
closing asked prices. Debt securities with a maturity of 61 days or more are
valued on the basis of valuations obtained from a commercial pricing service or
dealer-supplied quotations. Debt securities with a maturity of 60 days or less,
and all investments in the Cash Reserve Fund, are valued at amortized cost,
which approximates market value. Futures contracts are valued at the last sale
price on the market where the contract is principally traded. Securities for
which market quotations are not readily available are valued at the fair value
as determined in good faith pursuant to procedures established by the Company's
Board of Directors.

(B) Repurchase Agreements --- Each Fund may enter into repurchase agreements
with Federal Reserve System member banks or U.S. securities dealers. A
repurchase agreement occurs when, at the time the Fund purchases an
interest-bearing debt obligation, the seller agrees to repurchase the debt
obligation on a specified date in the future at an agreed-upon price. If the
seller is unable to make timely repurchase, the Fund's expected proceeds could
be delayed, or the Fund could suffer a loss in principal or current interest, or
incur costs in liquidating the collateral.

(C) Futures Contracts --- The Index Fund uses S&P 500 Index futures as part of
its strategy to track the return of the S&P 500 Index. Upon entering into a
futures contract, the Fund is required to deposit with the broker an amount of
cash or cash equivalents equal to certain percentage of the contract amount.
This is known as the initial margin. Subsequent payments ("variation margin")
are made or received by the Fund each day, depending on the daily fluctuations
of the value of the contract. The daily changes in the contract are recorded as
unrealized gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed.

The use of futures contracts involves several risks. The change in value of
futures contracts primarily corresponds with the value of their underlying
instruments, which may not correlate with the change in value of the hedged
investments. In addition, the Fund may not be able to enter into a closing
transaction because of an illiquid secondary market.

(D) Securities Transactions, Investment Income and Expenses --- Securities
transactions are recorded on the trade date. Gains and losses on sales of
investments are determined on the identified cost basis for both financial
statement and Federal income tax purposes. Interest income and operating
expenses are recorded daily on an accrual basis. Dividend income is recorded on
the ex-dividend 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 between 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. Income dividends and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of income and gains on various investment securities held by the
Funds, timing differences and differing characterization of distributions made
by the Funds.

(F) Federal Income Taxes --- Each Fund intends to qualify as a regulated
investment company by complying with the requirements of the Internal Revenue
Code applicable to regulated investment companies and by distributing to
shareholders substantially all of its taxable income. Therefore, no Federal
income or excise tax provision is required. For Federal income tax purposes,
capital loss carryforwards of $14,741, and $26,024 are available, to the extent
provided by regulations, to offset future realized gains of the Bond Fund, and
the Balanced Fund, respectively. These losses expire in 2003. The Balanced Fund
also has a capital loss carryforward of $11,380, which expires in 2004. During
the year ended December 31, 1996, the Equity Fund, the Balanced Fund and the
Short-Intermediate Government Fund elected to defer net capital losses of
$22,150, $120,282, and $1,090, respectively.

(G) Use of Estimates --- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosures of contingent assets and liabilities at the date of
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.

2. Investment Advisory Fees and Other Transactions with Affiliates
The Company has entered into an Investment Advisory and Administrative Services
Agreement (the "Agreement") with Transamerica Investment Services, Inc. (the
"Adviser"), a wholly owned subsidiary of Transamerica Corporation, on behalf of
each Fund. For its services to the Funds, the Adviser receives a monthly fee,
based on an annual percentage of the average daily net assets of each Fund. The
annual fees for the Funds are as follows:

1st Next In excess of
Fund $1 Billion $1 Billion $2 Billion
Equity Fund 0.85% 0.82% 0.80%
Index Fund 0.30% 0.30% 0.30%
Bond Fund 0.60% 0.57% 0.55%
Balanced Fund 0.75% 0.72% 0.70%
Short-Intermediate Government Fund 0.50% 0.50% 0.50%
Cash Reserve Fund 0.35% 0.35% 0.35%

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. The Administrator receives its fee
directly from the Adviser, and receives no compensation from the Funds.
The 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 the Equity Fund, the Bond Fund, the Balanced
Fund, and the Short-Intermediate Government Fund which together exceed a
specified percentage of the average daily net assets of that Fund until such a
time as the Fund's assets exceed $65 million. The 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 the Cash
Reserve Fund and the Index Fund which together exceed a specified percentage of
the average daily net assets of that Fund until the earlier of April 30, 1997 or
such time as the Fund's assets exceed $65 million. The specified percentages are
as follows:

Investor Adviser
Fund Shares Shares
Equity Fund 1.50% 2.25%
Index Fund 0.25% 1.15%
Bond Fund 1.30% 2.05%
Balanced Fund 1.45% 2.20%
Short-Intermediate Government Fund 0.85% 1.60%
Cash Reserve Fund 0.25% 0.40%

Transamerica Securities Sales Corporation ("TSSC") is the principal
underwriter and distributor of the shares of each of the Funds. TSSC distributes
Investor Shares. TSSC has an agreement with Transamerica Financial Resources,
Inc. ("TFR") to sell Adviser Shares through its registered representatives. TSSC
can also enter into arrangements where Adviser Shares will be sold by other
broker-dealers, subject to the approval of the Board. Both TSSC and TFR are
wholly-owned subsidiaries of Transamerica Insurance Corporation of California,
which in turn is a wholly-owned subsidiary of Transamerica Corporation.
No officer, director, or employee of the 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. For the year ended December 31,
1996, the Funds incurred aggregate fees of $45,923 to all directors who are not
affiliated persons of the Adviser.
As of December 31, 1996, Transamerica Corporation and its affiliates
held the following percentages of outstanding Investor Class Shares:

Fund
Equity Fund 81.34%
Index Fund 85.93%
Bond Fund 96.44%
Balanced Fund 91.24%
Short-Intermediate Government Fund 97.11%
Cash Reserve Fund 85.26%

3. Distribution Plans
The 12b-1 plans of distribution and related distribution contracts require the
Funds to pay distribution and service fees to TSSC as compensation for its
activities, not as reimbursement for specific expenses. For the Investor Shares,
there is an annual 12b-1 distribution fee of 0.25% of the average daily net
assets of the Investor Shares of each Fund, except the Index and Cash Reserve
Funds, which each pay a distribution fee of 0.10% of the average daily net
assets. For the Adviser Shares, there is an annual 12b-1 distribution fee of
0.75% of the average daily net assets of the Adviser Shares of each Fund, except
the Cash Reserve Fund, which has no distribution fee. There is also an annual
12b-1 service fee of 0.25% of the average daily net assets of the Adviser Shares
of each Fund.

4. Security Transactions
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the year ended December 31, 1996 were as follows:

U.S. Proceeds U.S.
Government from Government
Fund Purchases Purchases Sales Sales
Equity Fund $20,337,512 $6,366,045 $ 6,633,279 $6,367,043
Index Fund 8,250,600 72,347 6,516,073 46,988
Bond Fund 1,422,730 538,164 807,724 -
Balanced Fund 4,734,775 - 2,539,495 -
Short-Intermediate
Government Fund - 2,901,962 - 2,478,527

5. Capital Stock Transactions
At December 31, 1996, there were two billion shares of $0.001 par value stock
authorized, consisting of one billion Investor Shares and one billion Adviser
Shares. The tables below summarize the transactions in Fund shares for the
periods indicated.

Transamerica Premier Equity Fund/Authorized Shares - 50,000,000
Year Ended December 31, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 1,396,408 $14,694,383 1,125,709 $11,269,950
Capital stock issued upon
reinvestment of dividends
and distributions 2,199 21,734 _ _
Capital stock redeemed (118,611) (1,292,651) (9) (86)
Net increase 1,279,996 $13,423,466 1,125,700 $11,269,864

Adviser Shares
Capital stock sold 45,506 $489,8055,827 $57,342
Capital stock issued upon
reinvestment of dividends
and distributions 1 6 - -
Capital stock redeemed (2,598) (27,159)- -
Net increase 42,909 $462,652 5,827 $57,342

Transamerica Premier Index Fund/Authorized Shares - 50,000,000
Year Ended December 31, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 206,344 $2,362,558 653,176 $6,602,355
Capital stock issued upon
reinvestment of dividends
and distributions 63,545 781,615 - -
Capital stock redeemed (20,564) (232,889) - -
Net increase 249,325 $2,911,284 653,176 $6,602,355

Adviser Shares
Capital stock sold 7,341 $84,268 20 $ 200
Capital stock issued upon
reinvestment of dividends
and distributions 414 5,362 - -
Capital stock redeemed - - - -
Net increase 7,755 $89,630 20 $ 200

#
PB

Notes to Financial Statements December 31, 1996 (Continued) 34 # 35
# 36 Notes to Financial Statements December 31, 1996 (Continued)
36 # 37 Transamerica Premier Bond Fund/Authorized Shares - 50,000,000
Year Ended December 31, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 85,943 $ 843,001 1,127,986 $11,305,873
Capital stock issued upon
reinvestment of dividends
and distributions 74,981 736,816 10,828 109,606
Capital stock redeemed (27,700) (270,290) (7) (75)
Net increase 133,224 $1,309,527 1,138,807 $11,415,404

Adviser Shares
Capital stock sold 18,228 $ 179,841 921 $ 9,270
Capital stock issued upon
reinvestment of dividends
and distributions 391 3,775 4 47
Capital stock redeemed (8,499) (82,696)- -
Net increase 10,120 $ 100,920 925 $ 9,317

Transamerica Premier Balanced Fund/Authorized Shares - 50,000,000
Year Ended December 31, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 223,285 $2,348,093 1,179,124 $11,885,383
Capital stock issued upon
reinvestment of dividends
and distributions 24,579 260,932 - -
Capital stock redeemed (42,754) (465,759) (5) (49)
Net increase 205,110 $2,143,266 1,179,119 $11,885,334

Adviser Shares
Capital stock sold 22,698 $ 242,657 1,816 $ 18,341
Capital stock issued upon
reinvestment of dividends
and distributions 72 750 - -
Capital stock redeemed (19,469) (209,307) - -
Net increase 3,301 $ 34,100 1,816 $ 18,341

Transamerica Premier Short-Intermediate Government Fund
Authorized Shares - 50,000,000
Year Ended December 31, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 16,234 $161,151330,690 $3,311,850
Capital stock issued upon
reinvestment of dividends
and distributions 23,215 231,037 2,927 29,621
Capital stock redeemed (3,921) (39,025) (4) (49)
Net increase 35,528 $353,163 333,613 $3,341,422

Adviser Shares
Capital stock sold 1,394 $14,039 20 $ 200
Capital stock issued upon
reinvestment of dividends
and distributions 43 291 - 1
Capital stock redeemed - - - -
Net increase 1,437 $14,330 20 $ 201

Transamerica Premier Cash Reserve Fund/Authorized Shares - 500,000,000
Year Ended December 31, 1996 Period Ended December 31, 1995
Investor Shares Shares Amount Shares Amount
Capital stock sold 30,894,164 $30,894,164 27,792,888 $27,792,888
Capital stock issued upon
reinvestment of dividends
and distributions 1,647,402 1,647,402 204,021 204,021
Capital stock redeemed (28,497,422) (28,497,422) (17,083) (17,083)
Net increase 4,044,144 $ 4,044,144 27,979,826 $27,979,826

Adviser Shares
Capital stock sold 417,209 $417,20925,200 $25,200
Capital stock issued upon
reinvestment of dividends
and distributions 6,461 6,461 76 76
Capital stock redeemed (241,588) (241,588) (4,000) (4,000)
Net increase 182,082 $182,082 21,276 $21,276

6. Subsequent Events
Effective January 10, 1997, the sale of the Adviser Class Shares of the
Company was suspended to new shareholders.

Effective February 15, 1997, the sale of Transamerica Premier Short-Intermediate
Government Fund Shares was suspended to new shareholders.

#
38

Notes to Financial Statements December 31, 1996 (Continued) 38 # 39
Report of Ernst & Young llp, Independent Auditors 39 To the
Shareholders and Board of Directors of Transamerica Investors, Inc. 39 We
have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Transamerica Investors, Inc. (comprising
respectively, the Transamerica Premier Equity Fund, Transamerica Premier Index
Fund, Transamerica Premier Bond Fund, Transamerica Premier Balanced Fund,
Transamerica Premier Short-Intermediate Government Fund, and Transamerica
Premier Cash Reserve Fund) (the "Funds") as of December 31, 1996, and the
related statements of operations for the year then ended, and changes in net
assets and financial highlights for the period from October 2, 1995
(commencement of operations) to December 31, 1995 and for the year ended
December 31, 1996. These financial statements and financial highlights are the
responsibility of the Funds' management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of
December 31, 1996, by correspondence with the custodian and brokers. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of each of the respective funds constituting Transamerica Investors,
Inc., as of December 31, 1996, and the results of their operations for the year
then ended, and the changes in their net assets and their financial highlights
for the period from October 2, 1995 (commencement of operations) to December 31,
1995 and for the year ended December 31, 1996, in conformity with generally
accepted accounting principles.

Los Angeles, California
February 3, 1997
39

#
40

Transamerica Premier Funds
Board of Directors and Officers
40

Transamerica Premier
Funds Directors

Nooruddin S. Veerjee
Chairman of the Board

Sidney E. Harris
Charles C. Reed
Gary U. Rolle'
Carl R. Terzian

Transamerica Premier
Funds Officers

Nooruddin S. Veerjee
Chief Executive Officer

Nicki A. Bair
President

E. Joy Heckendorf
Senior Vice President

Susan R. Hughes
Treasurer

Reid A. Evers
Secretary

Donald P. Radisich
Vice President

Christopher W. Shaw
Assistant Vice President

Investment Adviser
Transamerica Investment Services, Inc.
1150 South Olive
Los Angeles, CA 90015

Distributor
Transamerica Securities Sales Corporation
1150 South Olive
Los Angeles, CA 90015

Custodian
State Street Bank and Trust Company
225 Franklin Street
Boston, Massachusetts 02110

Transfer Agent
State Street Bank/Boston Financial Data Services
Two Heritage Drive
North Quincy, Massachusetts 02171

This report is for the information of the shareholders of Transamerica Premier
Funds. Its use in connection with any offering of the Funds' shares is
authorized only if accompanied or preceded by a current Transamerica Premier
Funds prospectus that contains more complete investment information, including
fees, risks and expenses. Please read the prospectus thoroughly before you
invest. Call 1-800-892-7587 for more information.

These Funds are neither insured nor guaranteed by the U.S. government. There can
be no assurance that the Transamerica Premier Cash Reserve Fund will be able to
maintain a stable net asset value of $1.00 per share.

Transamerica Securities Sales Corporation, Distributor
1-800-89-ASK-US
HTTP://funds.transamerica.com

TPF 026-197