1997 Semi-AnnualReport
Contents
1 President's Report
Investment Management Reports and Schedules of Investments 2
Transamerica Premier Equity Fund 4 Transamerica Premier Index Fund 12
Transamerica Premier Bond Fund 14 Transamerica Premier Balanced Fund 16
Transamerica Premier Cash Reserve Fund Financial Statements 18
Statements of Assets and Liabilities 19 Statements of Operations 20
Statements of Changes in Net Assets 22 Financial Highlights 25 Notes to
Financial Statements
President's Report
Dear Fellow Shareholders:
In October 1995, we launched the Transamerica Premier Funds. One of our
goals is to provide individual investors with investment expertise from
some of the best money managers in the industry. We are proud to report
that the Transamerica Premier Funds are continuing to provide excellent
returns.
The Premier Equity Fund leads the Transamerica Premier Funds
group in performance and assets. It ranked second among 734 growth
stock funds.*
The Premier Index Fund took seventh place among 59 funds in the
S&P 500 Index category.* The Premier Balanced Fund ranked number
one among 303 balanced funds.* The Premier Cash Reserve Fund was
ninth among 292 money market funds.*
When the Transamerica Premier Funds were introduced to the
public, we made the commitment to provide exceptional products and
services to meet the needs of our shareholders. To that end, we have
added two new equity funds to our fund family: the Premier Aggressive
Growth and Premier Small Company Funds. Introduced on July 1, both seek
to maximize long-term capital appreciation and growth, but each has its
own structure and investment approach.
Below is the third-quarter Investment Outlook from the Funds'
Investment Adviser, Transamerica Investment Services. I hope you will
find it to be an informative update on the overall trends in the stock
market.
As our exceptional performance makes headlines in major
publications, and Transamerica becomes known for its outstanding mutual
fund products, you may want to review all of the funds offered by
Transamerica Premier Funds. Whether your financial goals call for
capital appreciation, added diversification, a steady income stream, or
instant liquidity, we have a fund that will meet your needs. For more
information, please call 1-800-89-ASK-US (1-800-892-7587).
Thank you for your continued interest in the Transamerica
Premier Funds.
Sincerely,
Nicki Bair
President
*Source: Lipper Analytical Services, Inc., for one-year period ending
June 30, 1997.
Past performance is no guarantee of future results.
Investment Adviser Outlook
Our enthusiasm and optimism regarding the financial markets continues
into the second half of 1997 and beyond. Despite more than six years of
economic expansion, the price indexes show little sign of inflation.
While reported inflation is 21/2% at the consumer level, it is
virtually nonexistent at the wholesale level.
Relative to current rates of inflation, short-term interest
rates remain high, reflecting the Federal Reserve's predilection to a
tighter monetary policy. Despite the Fed's continued fixation about
growth leading to inflation, its concerns are not likely to be
realized.
The stock market has just completed one of its strongest
quarters on record, with overall growth of close to 17% dimming
memories of the 10% correction that lasted from February to April 1997.
Persistently rising corporate profits and the absence of inflation are
supplying very powerful fuel for the equity market. Throughout the
economy, corporate restructuring and investments in technology have
produced substantial advances in earnings and cash flow. Businesses
have been consistently lowering their cost structures and expanding
profit margins, establishing ongoing process engineering as standard
operating procedure for successfully competing in the low-inflation
environment that we expect will continue.
Rising stock market valuations are reflecting these very
positive economic developments. Without evidence of inflationary
threats, and with the prospect of significant interest rate declines
over the next several years, valuation levels should continue to be
high. Companies with unique businesses and strong management are always
attractive investments, and the technology, financial services,
corporate services, and leisure industries are areas of anticipated
growth.
Transamerica Premier Equity Fund
Portfolio Manager, Glen E. Bickerstaff
Fund Performance
The Premier Equity Fund performed extraordinarily well during the first
half of 1997. The Fund's total return for the six-month period ending
June 30, 1997 was 29.96%, in comparison to a 20.61% advance by the S&P
500 for the same period. Since its inception, the Fund has earned an
annualized total return of 33.05%, while the S&P 500 has returned an
annualized 29.55%. For the 12-month period ended June 30, 1997, the
Fund ranked #2 among 734 growth funds in the country, according to
Lipper Analytical Services, Inc.
Portfolio Manager Comments
Rising corporate profits and the almost non-existent inflation in the
United States continue to provide very powerful fuel for the equity
market engine. Throughout the economy, top-line sales growth is being
converted to bottom-line profitability as corporate restructuring and
investments in technology produce substantial advances in productivity.
These essential strategies have allowed businesses to lower cost
structures and expand profit margins, and will become standard
operating procedure for successfully competing in the low-inflation
environment we expect to continue.
Portfolio Asset Mix
As of June 30, 1997, the Fund consisted of:
[CHART GOES HERE]
Common Stocks 93.8%
Cash and Cash Equivalents 6.2%
Total 100.0%
Going Forward
Rising stock market valuations are reflecting the very positive
economic developments already noted. Moderate economic growth with low
inflation offer ideal conditions for continued growth in corporate
profits and sustainable valuation levels. In fact, we see no evidence
of inflationary threats, and believe that valuation levels should
continue to be high, with the prospect of significant interest rate
declines over the next several years.
We will continue to focus our proprietary research efforts on
discovering additional high-quality companies with superior management
and other inherent advantages over their competitors. Companies with
these characteristics offer exceptional opportunities for growth for
investors with a long-term perspective. The Premier Equity Fund has
assets committed to areas positioned for strong future growth including
the technology, financial services, corporate services, leisure and
health care industries.
Thank you for your continued investment in the Transamerica
Premier Equity Fund.
<PAGE>
Comparison Of Change In Value Of A $10,000 Investment In Transamerica
Premier Equity Fund With The S&P
500 Index**
[CHART GOES HERE]
Total Returns Annualized One Year
as of June 30, 1997 Since Inception* Total Return
Premier Equity Fund 33.05% 51.38%
S&P 500 Index 29.55% 34.70%
Premier Equity Fund ($16,472 at 6/30/97)
S&P 500 Index ($15,722 at 6/30/97)
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.
* October 2, 1995.
** Hypothetical illustration of $10,000 invested at inception (October
2, 1995), assuming reinvestment of dividends and capital gains at net
asset value through June 30, 1997. Note: All performance information
represents past performance and is not indicative of future results. If
the Investment Adviser had not waived fees and the Administrator had
not reimbursed expenses, the aggregate total returns of the Funds would
have been lower.
Transamerica Premier Equity Fund
Schedule of Investments - June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Market
Shares Value
<S> <C> <C> <C> <C> <C>
Common Stocks - 93.8%
Banking - 1.5%
Wells Fargo & Company 3,000 $ 808,500
Broadcasting - 1.8%
HSN, Inc. (a) 30,000 937,500
Business Services - 10.9%
CUC International, Inc. (a) 30,000 774,375
Envoy Corporation (a) 75,000 2,493,750
First Data Corporation 30,000 1,318,125
Paychex, Inc. 30,000 1,140,000
5,726,250
Chemicals - 4.5%
BetzDearborn, Inc. 19,000 1,254,000
Market
Shares Value
Minerals Technologies Inc. 30,000 1,125,000
2,379,000
Computers & Business Equipment - 10.7%
Cisco Systems, Inc. (a) 14,000 939,750
Dell Computer Corporation (a) 40,000 4,697,500
5,637,250
Containers & Glass - 2.5%
Crown Cork & Seal Company, Inc. 25,000 1,335,938
Drugs & Health Care - 5.3%
Alternative Living Services, Inc. (a) 75,000 1,682,812
Centocor, Inc. (a) 35,000 1,087,188
2,770,000
Electronics - 7.5%
Applied Materials, Inc. (a) 30,000 2,124,375
Intel Corporation 13,000 1,843,562
3,967,937
Financial Services - 15.3%
Charles Schwab Corporation 50,000 2,034,375
Franklin Resources, Inc. 20,000 1,451,250
Merrill Lynch & Company, Inc. 22,000 1,311,750
MoneyGram Payment Systems, Inc. (a)110,000 1,732,500
T. Rowe Price Associates, Inc. 30,000 1,548,750
8,078,625
Hotels & Restaurants - 7.6%
Host Marriott Corp. (a) 35,000 623,437
Marriott International, Inc. 14,000 859,250
Mirage Resorts, Incorporated (a) 100,000 2,525,000
4,007,687
Industrial Machinery - 3.8%
Briggs & Stratton Corporation 20,000 1,000,000
Illinois Tool Works, Inc. 20,000 998,750
1,998,750
Insurance - 4.1%
20th Century Industries 75,000 1,575,000
American International Group, Inc. 4,000 597,500
2,172,500
Leisure Time - 3.1%
Speedway Motorsports, Inc. (a) 35,000 $761,250
The Walt Disney Company 11,000 882,750
1,644,000
Retail Grocery - 8.6%
Smith's Food & Drug Centers, Inc. 85,000 4,558,125
Software - 6.6%
Broderbund Software, Inc. (a) 25,000 617,188
Market
Shares Value
Microsoft Corporation (a) 17,000 2,148,375
Transaction Systems Architects, Inc. (a) 20,000 690,000
3,455,563
Total Common Stocks
(cost $32,633,245) 49,477,625
Repurchase Agreement - 8.3%
State Street Bank and Trust Company, 4.75%, due 07/01/97,
(collateralized by $3,890,000 par value U.S. Treasury Bonds,
7.875%, due 02/15/21, with a
value of $4,468,003, cost $4,377,000) $4,377,000 4,377,000
Total Investments - 102.1%
(cost $37,010,245)* 53,854,625
Liabilities in Excess of
Other Assets - (2.1)% (1,117,683)
Net Assets - 100.0% $ 52,736,942
</TABLE>
(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
$17,291,892 and $447,512, respectively. Net unrealized appreciation for
tax purposes is $16,844,380. See notes to financial statements
Transamerica Premier Index Fund
Portfolio Manager, Christopher J. Bonavico
Fund Performance
The Premier Index Fund earned a total return of 20.50% for the
six-month period ending June 30, 1997, in comparison to a total return
of 20.61% for the S&P 500 Index. Since the Fund's inception on October
2, 1995, it has earned an annualized total return of 29.02%, relative
to a 29.55% annualized return for the S&P 500. For the one-year period
ended June 30, 1997, the Fund ranked seventh among 59 S&P 500 index
funds as tracked by Lipper Analytical Services, Inc.
While we are proud of our top 10 ranking, we view the Fund's
performance as simply consistent with its long term goal. The Fund is
carefully managed to provide the total return of the S&P 500 Index, and
although it may not match the index precisely, in general, when the S&P
500 is rising, the value of shares in the Fund should also rise.
Conversely, when the market is declining, the value of Fund shares
should also decline. To accomplish this tracking, the Fund invests in
stocks that mirror the S&P 500 Index, as well as in stock index futures
and fixed income investments. These asset classes are managed to best
provide the total return of the S&P 500 over time.
Portfolio Manager Comments
The equity markets have provided handsome returns to investors during
the first six months of 1997. The economic expansion that began more
than six years ago continues to fuel corporate sales and profit growth,
while overall inflation remains subdued. The drive to raise
productivity and reduce costs at many firms has allowed corporate
profits to expand with very little increase in the pricing of products
and services. In particular, companies that provide tools to help raise
corporate productivity, especially technology companies, have benefited
greatly from this trend.
Inflation has remained modest throughout this economic
expansion, in large part due to the productivity revolution. Due to the
benign inflation environment, investors increased their valuations of
common stocks. Stock market returns are also benefiting from continued
high merger and acquisition activity.
Portfolio Asset Mix
As of June 30, 1997, the Fund consisted of:
[CHART GOES HERE]
Common Stocks 71.6%
Cash and Cash Equivalents 28.4
Total 100.0%
Going forward
We expect positive equity returns to continue in the current economic
environment. While the stock market has appreciated significantly this
year, we encourage investors to take a long-term view. While the
earnings performance of individual companies is important to overall
stock valuations, the broader long-term trend of lower 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.
<PAGE>
Comparison Of Change In Value Of A $10,000 Investment In Transamerica
Premier Index Fund With The S&P
500 Index**
[CHART GOES HERE]
Total Returns Annualized One Year
as of June 30, 1997 Since Inception* Total Return
Premier Index Fund 29.02% 34.42%
S&P 500 Index 29.55% 34.70%
Premier Index Fund ($15,611 at 6/30/97)
S&P 500 Index ($15,722 at 6/30/97)
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.
* October 2, 1995.
** Hypothetical illustration of $10,000 invested at inception (October
2, 1995), assuming reinvestment of dividends and capital gains at net
asset value through June 30, 1997. Note: All performance information
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.
<TABLE>
<CAPTION>
Transamerica Premier Index Fund
Schedule of Investments - June 30, 1997 (unaudited)
Market
Shares Value
<S> <C> <C> <C>
Common Stocks - 71.6%
Aerospace & Defense - 1.2%
Boeing Company 1,010 $ 53,593
Computer Sciences Corporation (a) 80 5,770
General Dynamics Corporation 90 6,750
Lockheed Martin Corporation 285 29,515
McDonnell Douglas Corporation 322 22,057
Northrop Grumman Corporation 71 6,235
TRW Inc. 188 10,681
United Technologies Corporation 350 29,050
163,651
Agricultural Machinery - 0.1%
Deere & Company 377 20,688
Air Travel - 0.2%
AMR Corporation (a) 109 10,083
Delta Air Lines, Inc. 73 5,986
Market
Shares Value
Southwest Airlines Company 206 5,330
US Airways Group Inc. (a) 90 3,150
24,549
Aluminum - 0.3%
Alcan Aluminum Ltd. 322 11,169
Aluminum Company of America 254 19,145
Reynolds Metals Company 91 6,484
36,798
Apparel & Textiles - 0.3%
Brown Group, Inc. 26 486
Fruit of the Loom, Inc. (a) 109 3,379
Liz Claiborne, Inc. 106 4,942
Nike, Inc. 410 23,934
Reebok International Ltd. 72 3,366
Russell Corporation 56 1,659
Springs Industries, Inc. 29 1,530
Stride Rite Corporation 71 914
VF Corporation 91 7,712
47,922
Auto Parts - 0.2%
Dana Corporation 145 5,510
Eaton Corporation 111 9,692
Echlin, Inc. 88 3,168
Genuine Parts Company 264 8,943
27,313
Automobiles - 1.1%
Chrysler Corporation 1,082 35,503
Ford Motor Company 1,533 57,871
General Motors Corporation 1,074 59,808
PACCAR Inc. 112 5,201
158,383
Banking - 5.0%
Banc One Corporation 651 31,533
Bank of New York Company, Inc. 574 24,969
BankAmerica Corporation 1,060 68,436
BankBoston Corporation 211 $ 15,205
Bankers Trust New York Corporation 113 9,831
Barnett Banks, Inc. 272 14,280
Citicorp 697 84,032
Comerica, Inc. 170 11,560
CoreStates Financial Corporation 299 16,071
Fifth Third Bancorp 144 11,817
First Bank System, Inc. 209 17,843
First Chicago NBD Corporation 460 27,830
Market
Shares Value
First Union Corporation 408 37,740
Fleet Financial Group, Inc. 380 24,035
J.P. Morgan & Company Incorporated 269 28,077
KeyCorp 339 18,942
MBNA Corporation 478 17,507
Mellon Bank Corporation 382 17,238
National City Corporation 209 10,973
NationsBank Corporation 1,140 73,530
Norwest Corporation 506 28,462
PNC Bank Corporation 489 20,355
Providian Financial Corporation (a) 136 4,369
Republic New York Corporation 81 8,708
SunTrust Banks, Inc. 324 17,840
US Bancorp 217 13,915
Wachovia Corporation 244 14,228
Wells Fargo & Company 139 37,460
706,786
Broadcasting - 0.2%
Comcast Corporation 344 7,353
Viacom, Inc. (a) 528 15,840
23,193
Building Construction - 0.1%
Centex Corporation 41 1,666
Fluor Corporation 120 6,622
Kaufman & Broad Home Corporation 46 808
Pulte Corporation 39 1,348
10,444
Business Services - 0.9%
Automatic Data Processing, Inc. 416 19,552
H&R Block, Inc. 149 4,805
Cognizant Corporation 343 13,891
CUC International, Inc. (a) 541 13,965
Deluxe Corporation 118 4,027
Ecolab, Inc. 93 4,441
First Data Corporation 638 28,032
Humana, Inc. (a) 232 5,365
Interpublic Group Companies, Inc. 112 6,867
Laidlaw, Inc. 421 5,815
R.R. Donnelley & Sons Company 220 8,057
Safety-Kleen Corporation 83 1,401
Service Corporation International 336 11,046
127,264
Chemicals - 2.0%
Air Products and Chemicals, Inc. 160 $ 13,000
Market
Shares Value
B.F. Goodrich Company 76 3,292
Dow Chemical Company 375 32,672
E.I. du Pont de Nemours and Company1,592 100,097
Eastman Chemical Company 115 7,303
FMC Corporation (a) 53 4,210
Great Lakes Chemical Corporation 93 4,871
Hercules, Inc. 158 7,564
Mallinckrodt, Inc. 106 4,028
Monsanto Company 835 35,957
Morton International, Inc. 211 6,370
Nalco Chemical Company 96 3,708
PPG Industries, Inc. 276 16,042
Praxair, Inc. 200 11,200
Rohm & Haas Company 96 8,646
Sigma-Aldrich Corporation 142 4,979
Union Carbide Corporation 197 9,271
W.R. Grace & Company 140 7,717
280,927
Communication Services - 1.4%
Lucent Technologies, Inc. 942 67,883
Northern Telecom Limited 364 33,124
SBC Communications, Inc. 1,318 81,551
Tele-Communications, Inc. (a) 935 13,908
196,466
Computers & Business Equipment - 3.6%
3Com Corporation (a) 236 10,620
Amdahl Corporation (a) 171 1,496
Apple Computer, Inc. 177 2,522
Bay Networks, Inc. (a) 262 6,959
Cabletron Systems, Inc. (a) 206 5,832
Ceridian Corporation (a) 95 4,014
Cisco Systems, Inc. (a) 892 59,876
Compaq Computer Corporation (a) 380 37,715
Data General Corporation (a) 54 1,404
Dell Computer Corporation (a) 300 35,231
Digital Equipment Corporation (a) 219 7,761
EMC Corporation (a) 300 11,700
Hewlett-Packard Company 1,462 81,872
Intergraph Corporation (a) 66 561
International Business 1,630 147,006
Machines Corporation
Pitney Bowes, Inc. 217 15,082
Seagate Technology, Inc. (a) 300 10,556
Sun Microsystems, Inc. (a) 526 19,577
Market
Shares Value
Tandem Computers, Inc. (a) 168 3,402
Tandy Corporation 91 5,096
Unisys Corporation (a) 246 1,876
Xerox Corporation 465 36,677
506,835
Conglomerates - 1.4%
Aeroquip-Vickers Inc. 42 $ 1,985
AlliedSignal, Inc. 405 34,020
Gillette Company 756 71,631
Harcourt General, Inc. 104 4,953
Minnesota Mining & 601 61,302
Manufacturing Company
Tenneco, Inc. 249 11,252
Textron, Inc. 244 16,195
201,338
Construction & Mining Equipment - 0.4%
Case Corporation 102 7,025
Caterpillar, Inc. 283 30,387
Dover Corporation 163 10,024
Foster Wheeler Corporation 57 2,309
Harnischfeger Industries, Inc. 67 2,781
52,526
Construction Materials - 0.2%
Armstrong World Industries, Inc. 53 3,889
Masco Corporation 230 9,602
Owens Corning 73 3,148
Sherwin-Williams Company 244 7,534
24,173
Consumer Products - 0.0%
American Greetings Corporation 107 3,972
Containers & Glass - 0.1%
Ball Corporation 43 1,293
Bemis Company, Inc. 76 3,287
Crown Cork & Seal Company, Inc. 179 9,565
Temple-Inland, Inc. 80 4,320
18,465
Cosmetics & Toiletries - 0.2%
Alberto - Culver Company 80 2,240
Avon Products, Inc. 194 13,689
International Flavors & Fragrances, Inc. 159 8,030
23,959
Depositary Receipt - 3.1%
Standard and Poor's Depositary Receipts** 4,990 440,679
Drugs & Health Care - 7.7%
Market
Shares Value
Abbott Laboratories 1,126 75,160
Allergan, Inc. 92 2,927
Alza Corporation (a) 119 3,451
American Home Products Corporation 896 68,544
Amgen, Inc. (a) 381 22,146
Bausch & Lomb, Inc. 82 3,864
Baxter International Inc. 389 20,325
Becton, Dickinson & Company 184 9,315
Beverly Enterprises, Inc. (a) 141 2,291
Biomet, Inc. 165 3,073
Bristol-Myers Squibb Company 1,446 117,126
Cardinal Health, Inc. 150 8,588
Columbia / HCA Healthcare Corporation 957 $ 37,622
Bard (C.R.), Inc. 82 2,978
Eli Lilly & Company 790 86,357
Guidant Corporation 100 8,500
HEALTHSOUTH Corporation (a) 450 11,222
Johnson & Johnson 1,910 122,956
Manor Care, Inc. 90 2,936
Medtronic, Inc. 333 26,973
Merck & Company, Inc. 1,761 182,263
Pfizer Inc. 913 109,103
Pharmacia & Upjohn, Inc. 722 25,090
Schering-Plough Corporation 1,044 49,982
St. Jude Medical, Inc. (a) 100 3,900
Tenet Healthcare Corporation (a) 400 11,825
United Healthcare Corporation 250 13,000
US Surgical Corporation 82 3,055
Warner-Lambert Company 388 48,209
1,082,781
Electric Utilities - 1.7%
American Electric Power Company 267 11,214
Baltimore Gas & Electric Company 211 5,631
Carolina Power & Light Company 221 7,928
Central & South West Corporation 296 6,290
CINergy Corporation 225 7,833
Consolidated Edison Company of 337 9,920
New York, Inc.
Dominion Resources, Inc. 252 9,229
DTE Energy Company 208 5,746
Duke Energy Corporation 519 24,858
Edison International 643 15,995
Entergy Corporation 326 8,924
FPL Group, Inc. 265 12,207
Market
Shares Value
GPU, Inc. 172 6,171
Houston Industries, Incorporated 376 8,060
Niagara Mohawk Power Corporation (a) 207 1,772
Northern States Power Company 98 5,072
Ohio Edison Company 219 4,777
P P & L Resources, Inc. 228 4,546
PacifiCorp 420 9,240
PECO Energy Company 318 6,678
PG & E Corporation 600 14,550
Public Service Enterprise Group, Inc. 351 8,775
Southern Company 955 20,891
Texas Utilities Company 324 11,158
Unicom Corporation 308 6,853
Union Electric Company 146 5,502
239,820
Electrical Equipment - 3.0%
Boston Scientific Corporation (a) 249 15,298
Cooper Industries, Inc. 155 7,711
Emerson Electric Company 642 35,350
General Electric Company 4,786 $312,885
General Instrument Corporation (a) 150 3,750
General Signal Corporation 68 2,967
Johnson Controls, Inc. 118 4,845
Millipore Corporation 64 2,816
National Service Industries, Inc. 69 3,359
Raychem Corporation 64 4,760
W.W. Grainger, Inc. 73 5,708
Westinghouse Electric Corporation 855 19,772
419,221
Electronics - 2.9%
Advanced Micro Devices, Inc. (a) 188 6,768
AMP, Inc. 312 13,026
Andrew Corporation (a) 126 3,544
Applied Materials, Inc. (a) 257 18,199
DSC Communications Corporation (a) 165 3,671
EG & G, Inc. 69 1,553
Harris Corporation 56 4,704
Honeywell, Inc. 182 13,809
Intel Corporation 1,177 166,913
LSI Logic Corporation (a) 186 5,952
Micron Technology, Inc. 298 11,901
Motorola, Inc. 845 64,220
National Semiconductor Corporation (a) 194 5,941
Perkin-Elmer Corporation 62 4,933
Market
Shares Value
Raytheon Company 346 17,646
Rockwell International Corporation 311 18,349
Scientific-Atlanta, Inc. 110 2,406
Silicon Graphics, Inc. (a) 251 3,765
Tektronix, Inc. 48 2,880
Tellabs, Inc. (a) 254 14,192
Texas Instruments, Inc. 270 22,697
Thomas & Betts Corporation 58 3,049
410,118
Financial Services - 2.2%
American Express Company 694 51,703
Beneficial Corporation 76 5,401
Charles Schwab Corporation 300 12,206
Chase Manhattan Corporation 624 60,567
Countrywide Credit Industries, Inc. 150 4,678
Equifax, Inc. 200 7,438
Federal Home Loan Mortgage Corporation 1,036 35,612
Federal National Mortgage Association 1,564 68,229
Green Tree Financial Corporation 197 7,018
Household International, Inc. 141 16,559
Merrill Lynch & Company, Inc. 504 30,051
Salomon, Inc. 152 8,455
State Street Corporation 200 9,250
317,167
Food & Beverages - 4.5%
Archer-Daniels-Midland Company 788 $ 18,518
Campbell Soup Company 714 35,700
Coca-Cola Company 3,594 242,595
ConAgra, Inc. 353 22,636
CPC International, Inc. 208 19,201
General Mills, Inc. 228 14,848
Heinz (H.J.) Company 530 24,446
Hershey Foods Corporation 222 12,279
Kellogg Company 312 26,715
PepsiCo, Inc. 2,258 84,816
Pioneer Hi-Bred International, Inc. 120 9,600
Quaker Oats Company 192 8,616
Ralston Purina Company 152 12,493
Sara Lee Corporation 694 28,888
Sysco Corporation 263 9,600
Unilever NV and PLC 229 49,922
Whitman Corporation 151 3,822
<PAGE>
Market
Shares Value
Wrigley (Wm) Jr. Company 166 11,122
635,817
Gas & Pipeline Utilities - 0.4%
Coastal Corporation 150 7,978
Columbia Gas System, Inc. 78 5,089
Consolidated Natural Gas Company 134 7,211
Eastern Enterprises 29 1,006
Enron Corporation 361 14,733
ENSERCH Corporation 98 2,181
NICOR, Inc. 72 2,583
Oneok Inc. 39 1,255
Pacific Enterprises 121 4,069
People's Energy Corporation 50 1,872
Sonat, Inc. 123 6,304
The Williams Companies, Inc. 219 9,581
63,862
Gas Exploration And Distribution - 0.2%
Burlington Resources, Inc. 181 7,987
NorAm Energy Corp. 178 2,715
Occidental Petroleum Corporation 456 11,428
Oryx Energy Company (a) 151 3,190
Santa Fe Energy Resources, Inc. (a) 129 1,895
Union Pacific Resources Group, Inc. 309 7,686
34,901
Gold & Mining - 0.4%
Barrick Gold Corporation 506 11,132
Battle Mountain Gold Company 300 1,706
Cyprus Amax Minerals Company 133 3,258
Echo Bay Mines Ltd. 181 1,041
Freeport-McMoRan Copper & Gold, Inc. 289 8,995
Homestake Mining Company 198 2,586
Newmont Mining Corporation 215 8,385
Phelps Dodge Corporation 99 $ 8,434
Placer Dome, Inc. 343 5,617
51,154
Household Appliances & Products - 1.7%
Black & Decker Corporation 123 4,574
Clorox Company 74 9,768
Colgate-Palmolive Company 418 27,274
Corning, Inc. 328 18,245
Maytag Corporation 155 4,049
Newell Company 227 8,995
Procter & Gamble Company 984 138,990
Rubbermaid, Inc. 226 6,724
Market
Shares Value
Snap-On, Inc. 87 3,426
The Stanley Works 128 5,120
Tupperware Corporation 88 3,212
Whirlpool Corporation 106 5,784
236,161
Hotels & Restaurants - 0.6%
Darden Restaurants, Inc. 227 2,057
HFS, Inc. (a) 200 11,600
Hilton Hotels Corporation 343 9,111
Marriott International, Inc. 179 10,986
McDonald's Corporation 995 48,071
Wendy's International, Inc. 170 4,410
86,235
Industrial Machinery - 0.6%
Briggs & Stratton Corporation 41 2,050
Cincinnati Milacron, Inc. 49 1,271
Crane Company 64 2,676
Cummins Engine Company, Inc. 57 4,022
Giddings & Lewis, Inc. 49 1,023
Illinois Tool Works, Inc. 336 16,779
Ingersoll-Rand Company 156 9,633
ITT Industries, Inc. 171 4,403
NACCO Industries Inc. 13 734
Pall Corporation 164 3,813
Parker Hannifin Corporation 106 6,433
Thermo Electron Corporation 200 6,800
Timken Company 90 3,200
Tyco International Ltd. 219 15,234
78,071
Insurance - 3.1%
Aegon N.V. 59 4,139
Aetna Life & Casualty Company 214 21,908
Allstate Corporation 641 46,793
American General Corporation 347 16,581
American International Group, Inc. 679 101,426
Aon Corporation 225 11,644
Chubb Corporation 250 16,719
CIGNA Corporation 109 19,347
General Re Corporation 118 $ 21,476
Hartford Financial Services Group, Inc. 171 14,150
Jefferson-Pilot Corporation 102 7,127
Lincoln National Corporation 149 9,592
Loews Corporation 169 16,921
Marsh & McLennan Companies, Inc. 210 14,989
Market
Shares Value
MBIA, Inc. 65 7,333
MGIC Investment Corporation 200 9,587
Safeco Corporation 180 8,404
St. Paul Companies, Inc. 121 9,226
Torchmark Corporation 103 7,339
Travelers Group, Inc. 905 57,072
UNUM Corporation 208 8,736
USF&G Corporation 161 3,864
434,373
Leisure Time - 0.7%
Brunswick Corporation 137 4,281
Harrah's Entertainment, Inc. (a) 147 2,683
ITT Corporation (a) 171 10,441
King World Productions, Inc. 53 1,855
The Walt Disney Company 971 77,923
97,183
Liquor - 0.4%
Adolph Coors Company 54 1,438
Anheuser-Busch Companies, Inc. 728 30,531
Brown-Forman Corporation 99 4,832
The Seagram Company Ltd. 536 21,574
58,375
Newspapers - 0.4%
Dow Jones & Company, Inc. 139 5,586
Gannett Company, Inc. 201 19,849
Knight-Ridder, Inc. 140 6,869
New York Times Company 138 6,831
Times Mirror Company 156 8,619
Tribune Company 182 8,747
56,501
Non-Ferrous Metals - 0.1%
Asarco, Inc. 61 1,868
Engelhard Corporation 206 4,313
Inco, Limited 269 8,087
14,268
Oil - 5.2%
Amerada Hess Corporation 133 7,390
Amoco Corporation 712 61,899
Ashland, Inc. 91 4,220
Atlantic Richfield Company 460 32,430
Chevron Corporation 935 69,132
Exxon Corporation 3,558 218,817
Kerr-McGee Corporation 74 4,690
Louisiana Land & Exploration Company 48 $ 2,742
Market
Shares Value
Mobil Corporation 1,130 78,959
Pennzoil Company 66 5,065
Phillips Petroleum Company 376 16,450
Royal Dutch Petroleum Company 3,072 167,040
Sun Company, Inc. 108 3,348
Texaco, Inc. 379 41,216
Unocal Corporation 354 13,740
USX-Marathon Group 412 11,896
739,034
Office Furnishings & Supplies - 0.1%
Avery Dennison Corporation 152 6,099
Ikon Office Solutions, Inc. 183 4,564
Moore Corporation Ltd. 143 2,815
13,478
Paper & Forest Products - 0.9%
Boise Cascade Corporation 69 2,437
Champion International Corporation 138 7,625
Georgia-Pacific Corporation 132 11,269
International Paper Company 422 20,493
James River Corporation 122 4,514
Kimberly-Clark Corporation 798 39,700
Louisiana-Pacific Corporation 155 3,274
Mead Corporation 77 4,793
Potlatch Corporation 42 1,901
Stone Container Corporation 143 2,047
Union Camp Corporation 101 5,050
Westvaco Corporation 144 4,527
Weyerhaeuser Company 289 15,028
Willamette Industries, Inc. 79 5,530
128,188
Petroleum Services - 0.6%
Baker Hughes, Inc. 204 7,892
Dresser Industries, Inc. 259 9,648
Halliburton Company 164 12,997
Helmerich & Payne, Inc. 35 2,017
McDermott International, Inc. 78 2,276
Rowan Companies, Inc. (a) 121 3,411
Schlumberger Ltd. 347 43,375
Western Atlas, Inc. (a) 76 5,567
87,183
Photography - 0.3%
Eastman Kodak Company 490 37,607
Polaroid Corporation 65 3,608
41,215
Market
Shares Value
Pollution Control - 0.2%
Browning-Ferris Industries, Inc. 305 10,141
Waste Management, Incorporated 697 22,391
32,532
Publishing - 0.3%
Dun & Bradstreet Corporation 243 $ 6,379
John H. Harland Company 44 1,004
Jostens, Inc. 55 1,471
McGraw-Hill Companies, Inc. 144 8,469
Meredith Corporation 80 2,320
Time Warner, Inc. 555 26,779
46,422
Railroads & Equipment - 0.5%
Burlington Northern Santa Fe 203 18,245
CSX Corporation 302 16,761
Norfolk Southern Corporation 186 18,740
Union Pacific Corporation 295 20,797
74,543
Retail - 2.7%
AutoZone, Inc. (a) 200 4,713
Charming Shoppes, Inc. (a) 148 772
Circuit City Stores - Circuit City Group 140 4,979
Costco Companies, Inc. (a) 280 9,205
CVS Corporation 151 7,739
Dayton Hudson Corporation 309 16,435
Dillard's, Inc. 162 5,609
Federated Department Stores, Inc. (a) 290 10,077
Gap, Inc. 412 16,016
Home Depot, Inc. 683 47,084
J.C. Penny Company, Inc. 320 16,700
Kmart Corporation (a) 650 7,962
Limited, Inc. 391 7,918
Longs Drug Stores, Corporation 58 1,519
Lowe's Companies, Inc. 230 8,539
May Department Stores Company 357 16,868
Mercantile Stores Company, Inc. 53 3,336
Nordstrom, Inc. 116 5,691
Pep Boys-Manny, Moe & Jack 89 3,032
Rite-Aid Corporation 120 5,985
Sears, Roebuck & Co. 559 30,046
SUPERVALU, INC. 97 3,347
TJX Companies, Inc. 206 5,433
Toys "R" Us, Inc. (a) 393 13,755
Wal-Mart Stores, Inc. 3,305 111,750
Market
Shares Value
Walgreen Company 353 18,930
Woolworth Corporation (a) 192 4,608
388,048
Retail Grocery - 0.3%
Albertson's, Inc. 362 13,213
American Stores Company 210 10,369
Fleming Companies, Inc. 53 954
Giant Food, Inc. 85 2,773
Great Atlantic & Pacific Tea Company, Inc. 55 1,495
Kroger Company (a) 354 $ 10,266
Winn-Dixie Stores, Inc. 219 8,158
47,228
Savings & Loan - 0.2%
Golden West Financial Corporation 84 5,880
Great Western Financial Corporation 196 10,535
H.F. Ahmanson & Company 168 7,224
23,639
Software - 2.2%
Adobe Systems, Inc. 100 3,506
Autodesk, Inc. 66 2,529
Computer Associates International, Inc. 520 28,957
Microsoft Corporation (a) 1,702 215,090
Novell, Inc. (a) 527 3,656
Oracle Corporation (a) 936 47,151
Parametric Technology Corporation (a) 200 8,513
Shared Medical Systems Corporation 33 1,782
311,184
Steel - 0.2%
Allegheny Teldyne, Inc. 254 6,858
Armco, Inc. (a) 152 589
Bethlehem Steel Corporation (a) 161 1,680
Inland Steel Industries, Inc. 70 1,829
Nucor Corporation 125 7,063
USX-US Steel Group 119 4,172
Worthington Industries, Inc. 130 2,381
24,572
Telecommunications - 3.7%
AirTouch Communications, Inc. (a) 710 19,436
Alltel Corporation 271 9,062
Ameritech Corporation 794 53,942
AT&T Corporation 2,291 80,328
Bell Atlantic Corporation 627 47,574
BellSouth Corporation 1,424 66,038
Shares or
Principal Market
Amount Value
Frontier Corporation 200 3,988
GTE Corporation 1,388 60,898
MCI Communications Corporation 976 37,362
NYNEX Corporation 616 35,497
Sprint Corporation 648 34,101
U S WEST Communications Group 672 25,326
U.S. West Media Group (a) 675 13,669
WorldCom, Inc. (a) 1,200 38,400
525,621
Tires & Rubber - 0.1%
Cooper Tire & Rubber Company 120 2,640
Goodyear Tire & Rubber Company 218 13,802
16,442
Tobacco - 1.3%
Fortune Brands, Inc. 260 $ 9,701
Gallaher Group Plc (a) 260 4,794
Philip Morris Companies, Inc. 3,588 159,217
UST, Inc. 277 7,687
181,399
Toys & Amusements - 0.1%
Hasbro, Inc. 189 5,363
Mattel, Inc. 396 13,414
18,777
Trucking & Freight Forwarding - 0.1%
Caliber System, Inc. 56 2,086
Federal Express Corporation (a) 162 9,356
Navistar International Corporation (a) 105 1,811
Ryder System, Inc. 114 3,762
17,015
Total Common Stocks
(cost $7,287,580) 10,128,859
Preferred Stock - 0.0%
Aetna Life & Casualty Company 16 1,500
Fresenius National Medical Care, Inc. (a) 140 8
Total Preferred Stock
(cost $1,031) 1,508
Commercial Paper - 20.9%
Associates Corporation of North America**
5.55% 09/19/97 $1,500,000 1,481,265
General Electric Capital Corporation**
5.55% 09/19/97 1,500,000 1,481,265
Total Commercial Paper
(cost $2,963,000) 2,962,530
Shares or
Principal Market
Amount Value
U.S. Government Securities - 1.2%
U.S. Treasury Bills**
(cost $168,165) 4.92% 09/18/97170,000 168,076
Repurchase Agreement - 6.6%
State Street Bank and Trust Company,**
4.75%, due 07/01/97, (collateralized by
$830,000 par value U.S. Treasury Bonds,
7.875%, due 02/15/21, with a value of
$953,327, cost $933,000) $933,000 $933,000
Total Investments - 100.3%
(cost $11,352,775)* 14,193,973
Liabilities In Excess Of
Other Assets - (0.3)% (44,028)
Net Assets - 100.0% $14,149,945
</TABLE>
(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
$2,952,026 and $110,828, respectively. Net unrealized
appreciation for tax purposes is $2,841,198.
**$4,504,285 market value of securities has been pledged as collateral
for initial margin for future
contracts
Schedule Of Futures Contracts
Number Contract Total Unrealized
of Contracts Description Contract Value Gain
9 S&P 500 $4,006,125 $143,575
September 1997 (Long)
See notes to financial statements
<PAGE>
Transamerica Premier Bond Fund
Portfolio Manager, Sharon K. Kilmer
Fund Performance
The Transamerica Premier Bond Fund had a total return of 2.36% for the
six-month period ending June 30, 1997. In comparison, the Lehman
Brothers Government/Corporate Bond Index returned 2.74% during the same
period.
Portfolio Manager Comments
The bond market sold off during the first quarter of 1997, as economic
growth, measured by the Gross Domestic Product, exceeded everyone's
expectations with a 5.9% annualized rate. In March, fearing that
stronger growth would lead to increased inflation, the Federal Reserve
raised short-term interest rates.
By the end of May, it became evident that second quarter
growth had slowed substantially from previous levels. This calmed the
fears of inflation hawks, and allowed the bond market to stage a small
rally. We anticipate that reasonably strong economic growth (in the
3.0% area) will occur in the second half of 1997. Inflation, as
measured by the Consumer Price Index, is running at 2.5% on average
this year, and should continue to decline.
In the past five years, strong economic growth was accompanied
by bond market sell-offs caused by investor fears that increased demand
for goods and services would result in increased prices. Since these
fears have been proven to be unfounded, we are finally beginning to see
a change in the expectation that inflation must follow strong growth.
As we have been predicting for several years, if this change in
expectation continues, interest rates could drop substantially, despite
solid GDP numbers.
Portfolio asset mix
As of June 30, 1997, the Fund consisted of:
[CHAR GOES HERE]
Corporate Bonds 77.0%
U.S. Treasury Securities 15.8%
Cash or Cash Equivalents 6.0%
Other Assets 1.2%
Total 100.0%
Going Forward
The Transamerica Premier Bond Fund will remain fully invested in longer
maturity securities of high-quality companies, or in securities of
companies with improving credit fundamentals. The portfolio should
perform well in a low-inflation, moderate growth economic environment.
Thank you for your continued investment in the Transamerica
Premier Bond Fund.
Comparison Of Change In Value Of A $10,000 Investment In Transamerica
Premier Bond Fund With The Lehman
Brothers Government/Corporate Bond Index**
[CHART GOES HERE]
Total Returns Annualized One Year
as of June 30, 1997 Since Inception* Total Return
Premier Bond Fund 4.80% 7.83%
Lehman Brothers Government/
Corporate Bond Index 5.96% 7.75%
--Premier Bond Fund ($10,854 at 6/30/97)
--Lehman Brothers Government/Corporate Bond Index ($11,066 at 6/30/97)
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 Index does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents.
*October 2, 1995.
**Hypothetical illustration of $10,000 invested at inception (October
2, 1995), assuming reinvestment of dividends and capital gains at net
asset value through June 30, 1997. Note: All performance information
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.
<TABLE>
<CAPTION>
Transamerica Premier Bond Fund
Schedule of Investments - June 30, 1997 (unaudited)
Principal Market
Amount Value
<S> <C> <C>
Corporate Bonds - 77.0%
Aerospace & Defense - 7.3%
Boeing Company 8.625% 11/15/31$400,000 $463,292
Northrop Grumman Corporation
7.000% 03/01/06 500,000 491,410
954,702
Air Travel - 2.7%
AMR Corporation 9.750% 08/15/21300,000 359,952
Automobiles - 3.3%
General Motors Corporation
9.625% 12/01/00 400,000 435,300
Broadcasting - 2.1%
CF Cable TV, Inc. 11.625% 02/15/05240,000 271,200
Principal Market
Amount Value
Drugs & Health Care - 3.2%
American Home Products Corporation
7.900% 02/15/05 400,000 422,472
Electric Utilities - 25.0%
Cleveland Electric Illuminating Company
9.500% 05/15/05 500,000 537,825
Commonwealth Edison Company
7.000% 07/01/05 300,000 296,244
Connecticut Light & Power Company
7.750% 06/01/02 500,000 497,850
Hydro-Quebec
7.375% 02/01/03 400,000 407,304
Long Island Lighting Company
8.200% 03/15/23 500,000 509,150
Pennsylvania Power & Light Company
8.500% 05/01/22 500,000 532,050
Philadelphia Electric Company
8.750% 04/01/22 500,000 527,110
3,307,533
Financial Services - 8.2%
Morgan Stanley, Dean Witter, Discover and Company
8.875% 10/15/01 500,000 538,355
Westinghouse Credit Corporation
8.875% 06/14/14 500,000 541,990
1,080,345
Gas Exploration and Distribution - 9.9%
Burlington Resources, Inc.
9.125% 10/01/21 300,000 349,857
Gulf Canada Resources Limited
8.250% 03/15/17 500,000 512,500
NorAm Energy Corp.
8.900% 12/15/06 400,000 446,220
1,308,577
Industrials - 2.1%
News America Holdings, Inc.
7.750% 12/01/45 $300,000 $280,803
Liquor - 3.0%
Anheuser-Busch Companies, Inc.
7.250% 09/15/15 400,000 392,028
Petroleum Services - 3.6%
Anadarko Petroleum Corporation
5.875% 10/15/03 500,000 471,580
Retail Grocery - 4.1%
Principal Market
Amount Value
Ralphs Grocery Company
11.000% 06/15/05 500,000 545,000
Telecommunications - 2.5%
British Telecommunications Plc
9.625% 02/15/19 300,000 327,540
Total Corporate Bonds
(cost $10,198,668) 10,157,032
U.S. Government Agencies - 11.7%
Government National Mortgage Association
8.000% 08/15/26 787,998 806,216
8.000% 01/15/27 503,850 515,499
8.000% 09/15/26 219,965 225,050
Total U.S. Government Agencies
(cost $1,538,741) 1,546,765
U.S. Government Securities - 4.1%
U.S. Treasury Bonds
(cost $538,164) 7.500% 11/15/16500,000 534,295
Repurchase Agreement - 6.0%
State Street Bank and Trust Company,
4.75%, due 07/01/97, (collateralized by
$700,000 par value U.S. Treasury Bonds,
7.875%, due 02/15/21, with a value of
$804,011, cost $786,000) 786,000 786,000
Total Investments - 98.8%
(cost $13,061,573)* 13,024,092
Other Assets Less Liabilities - 1.2% 157,771
Net Assets - 100.0% $13,181,863
</TABLE>
* 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
$76,040 and $113,521, respectively. Net unrealized depreciation for tax
purposes is $(37,481).
See notes to financial statements
<PAGE>
Transamerica Premier Balanced Fund
Portfolio Managers, Sharon K. Kilmer and Jeffrey S. Van Harte
Fund Performance
We are pleased to report that the Premier Balanced Fund was ranked #1
among 303 balanced funds for the one-year period ended June 30, 1997
based on data from Lipper Analytical Services, Inc. The Fund's total
return for the six-month period ending June 30, 1997 was 22.03%, in
comparison to the 11.45% return on the benchmark index (i.e., 50%
Lehman Brothers Government/Corporate Bond Index, 50% S&P 500 Index).
Since the Fund's inception on October 2, 1995, it has achieved an
annualized return of 23.15% versus the benchmark index return of
17.39%.
The Fund's extraordinary performance was achieved in large
part through its holdings of high-quality growth stocks in the
technology and financial services sectors, as well as its continued
favorable allocation of common stock investments.
Portfolio Managers' Comments
Common stocks continued their remarkable outperformance in the first
half of 1997. The S&P 500 registered a total return of 20.61%, while
the Lehman Brother Government/Corporate Bond Index returned 2.74%.
Common stocks continued to benefit from benign inflation reports and
excellent earnings growth. The equity market also benefited from the
growing realization that U.S. companies are dominating global markets,
further assisting their growth prospects. Bond returns were modest for
the first half of the year, reflecting investor concerns regarding the
strong economy.
Portfolio Asset Mix
As of June 30, 1997, the Fund consisted of:
[CHART GOES HERE]
Common Stocks 72.6%
Bonds 22.7%
Cash and Cash Equivalents 4.7%
Total 100.0%
Going Forward
Several factors contribute to our ongoing enthusiasm about the
financial markets. First and foremost, U.S. companies have become - and
will continue to be - leaders on the global economic front. Second,
compared to the rest of the world, the U.S. has fiscal and political
matters in order. This stable political environment along with an
almost nonexistent budget deficit are very positive factors. Third, the
U.S. has demonstrated that growth is possible without an uptick in
inflation, and the recent strength of the dollar supports this. Fourth,
Americans have continued to save and invest, providing a steady flow of
financial assets. And finally, the increasingly favorable prospects for
a cut in our capital gains tax is positive for the financial markets in
general, and particularly for common stocks.
Recent economic data indicates that the U.S. economy may not
be able to maintain its current momentum. It should continue to grow,
but at a slower rate than we have been experiencing. The Premier
Balanced Fund's asset allocation will continue to emphasize common
stocks. We expect bonds to do well, and growth stocks to do even
better. The asset allocation for common stocks for the remainder of the
year should generally range between 60-70% with the balance in bonds
and cash equivalents.
Thank you for your continued investment in the Transamerica
Premier Balanced Fund.
Comparison Of Change In Value Of A $10,000 Investment In Transamerica
Premier Balanced Fund With 50% Lehman Brothers Government/Corporate
Bond Index And 50% S&P 500 Index** [CHART GOES HERE]
Total Returns Annualized One Year
as of June 30, 1997 Since Inception* Total Return
Premier Balanced Fund 23.15% 34.51%
50% Lehman Brothers Government/
Corporate Bond Index
50% S&P 500 17.39% 20.73%
--Premier Balanced Fund ($14,391 at 6/30/97)
--50% Lehman Brothers Government/Corporate Bond Index
50% S&P 500 Index ($13,227 at 6/30/97)
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. These indexes do not reflect any
commissions or fees which would be incurred by an investor purchasing
the securities represented by each index.
*October 2, 1995.
**Hypothetical illustration of $10,000 invested at inception (October
2, 1995), assuming reinvestment of dividends and capital gains at net
asset value through June 30, 1997. Note: All performance information
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.
<PAGE>
Transamerica Premier Balanced Fund
Schedule of Investments - June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Shares or
Principal Market
Amount Value
<S> <C> <C> <C> <C>
Common Stocks - 72.6%
Banking - 2.0%
Wells Fargo & Company 1,500 $ 404,250
Business Services - 3.6%
First Data Corporation 17,000 746,937
Chemicals - 3.2%
Betzdearborn, Inc. 10,000 660,000
Computers & Business Equipment - 10.3%
Cisco Systems, Inc. (a) 7,000 469,875
Dell Computer Corporation (a) 14,000 1,644,125
2,114,000
Conglomerates - 2.3%
Gillette Company 5,000 473,750
Containers & Glass - 1.3%
Crown Cork & Seal Company, Inc. 5,000 267,188
Electrical Equipment - 2.1%
Millipore Corporation 10,000 440,000
Electronics - 9.0%
Applied Materials, Inc. (a) 13,000 920,563
Intel Corporation 6,500 921,781
1,842,344
Financial Services - 12.9%
Charles Schwab Corporation 15,000 610,313
Franklin Resources, Inc. 15,000 1,088,437
Moneygram Payment Systems, Inc. (a)60,000 945,000
2,643,750
Hotels & Restaurants - 4.2%
Host Marriott Corp. (a) 20,000 356,250
Mirage Resorts, Incorporated (a) 20,000 505,000
861,250
Industrial Machinery - 1.7%
Illinois Tool Works, Inc. 7,000 349,562
Leisure Time - 2.7%
The Walt Disney Company 7,000 561,750
Retail Grocery - 8.8%
Safeway, Inc. (a) 10,000 461,250
Smith's Food & Drug Centers, Inc. 25,000 1,340,625
1,801,875
Shares or
Principal Market
Amount Value
Software - 8.5%
Broderbund Software, Inc. (a) 10,000 246,875
Microsoft Corporation (a) 8,000 1,011,000
Transaction Systems Architects, Inc. (a) 14,000 483,000
1,740,875
Total Common Stocks
(cost $8,817,522) 14,907,531
Corporate Bonds - 14.4%
Broadcasting - 0.5%
Viacom, Inc. 7.750% 06/01/05$100,000 99,243
Drugs & Health Care - 1.6%
American Home Products Corporation
7.900% 02/15/05$300,000 $316,854
Electric Utilities - 4.0%
Commonwealth Edison Company
7.000% 07/01/05300,000 296,244
Pennsylvania Power & Light Company
8.500% 05/01/22500,000 532,050
828,294
Finance & Banking - 2.9%
General Motors Acceptance Corporation
7.375% 05/28/99300,000 305,262
Mellon Bank Corporation
7.000% 03/15/06300,000 296,955
602,217
Gas & Pipeline Utilities - 1.5%
The Williams Companies, Inc.
7.500% 09/15/99300,000 305,196
Gas Exploration And Distribution - 1.1%
Noram Energy Corp.
8.900% 12/15/06200,000 223,110
Petroleum Services - 1.4%
Anadarko Petroleum Corporation
5.875% 10/15/03300,000 282,948
Retail - 1.4%
Dayton Hudson Corporation
6.400% 02/15/03300,000 292,239
Total Corporate Bonds
(cost $2,976,935) 2,950,101
U.S. Government Securities - 8.3%
Shares or
Principal Market
Amount Value
U.S. Treasury Notes
6.375% 08/15/02400,000 399,876
5.875% 11/15/051,370,000 1,310,707
Total U.S. Government Securities
(cost $1,796,952) 1,710,583
Repurchase Agreement - 4.5%
State Street Bank and Trust Company, 4.75%, due 07/01/97
(collateralized by $820,000 par value U.S. Treasury Bonds,
7.875%, due 02/15/21, with a value of
$941,841, cost $923,000) 923,000 923,000
Total Investments - 99.8%
(cost $14,514,409)* 20,491,215
Other Assets Less Liabilities - 0.2% 40,299
Net Assets - 100.0% $20,531,514
</TABLE>
(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
$6,363,990 and $387,184, respectively. Net unrealized appreciation for
tax purposes is $5,976,806.
See notes to financial statements
Transamerica Premier Cash Reserve Fund
Portfolio Manager, Kevin J. Hickam
Fund Performance
The Transamerica Premier Cash Reserve Fund has delivered excellent
results during the first half of 1997. The Fund ranked ninth among 292
money market funds for the 12-month period ending June 30, 1997, as
tracked by Lipper Analytical Services, Inc. The Fund's annualized yield
as of June 30, 1997 was 5.34%, in comparison to IBC's First Tier Index
return of 4.85%. The seven-day current and effective yields were 5.46%
and 5.60%, respectively, as of June 30, 1997.
Portfolio Manager Comments
The first half of 1997 can be characterized by stronger than expected
economic growth, subdued inflation and slightly higher short-term
interest rates. The strength seen in the economy occurred primarily in
the first quarter, as the Gross Domestic Product (GDP) surged 5.9%. Out
of concern that economic growth would lead to inflation, the Federal
Reserve raised the Federal Funds rate by 0.25% to 5.50% on March 25.
This interest rate hike was essentially an insurance policy against
higher inflation in the future. Shortly after mid-year, it appeared
that this insurance was unnecessary. Economic growth slowed markedly in
the second quarter and year-over-year inflation, as measured by the
Consumer Price Index, had declined from 3.3% at December 1996 to 2.2%
through the end of May, 1997.
Portfolio Asset Mix
As of June 30, 1997, the Fund consisted of:
[CHART GOES HERE]
Commercial Paper
(Domestic) 65.4%
Commercial Paper
(Canadian) 12.9%
Short-term
Corporate Notes 19.8%
Cash and
Cash Equivalents 1.9%
Total 100.0%
Going Forward
Looking ahead to the second half of the year, we expect to see moderate
economic growth and continued good news on inflation. The Federal
Reserve will likely leave the Federal Funds rate unchanged in such an
environment, allowing short-term interest rates to remain in a narrow
band for the rest of the year.
Thank you for your continued investment in the Transamerica
Premier Cash Reserve Fund.
Comparison Of Change In Value Of $10,000 Investment In Transamerica
Premier Cash Reserve Fund With The
IBC's Money Fund Reporttm**
[CHART GOES HERE]
Total Returns Annualized One Year
as of June 30, 1997 Since Inception* Total Return
Premier Cash Reserve Fund* 5.40% 5.37%
The IBC's Money Fund Report 5.03% 4.89%
--Premier Cash Reserve Fund ($10,963 at 6/30/97)
--The IBC's Money Fund Reporttm ($10,867 at 6/30/97)
The IBC's Money Fund Report(TM) -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. It does not reflect any commissions or fees which would be
incurred by an investor purchasing the securities it represents.
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.
* October 2, 1995.
**Hypothetical illustration of $10,000 invested at inception (October
2, 1995), assuming reinvestment of dividends and capital gains at net
asset value through June 30, 1997.
Note: All performance information represents past performance and is
not indicative of future results. If the Investment Adviser had not
waived fees and the Administrator had not reimbursed expenses, the
aggregate total returns of the Funds would have been lower.
Transamerica Premier Cash Reserve Fund
Schedule of Investments - June 30, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal Market
Amount Value
<S> <C> <C> <C>
Commercial Paper - Domestic - 65.4%
Banking - 9.5%
Banc One Corporation
5.530% 07/24/97$1,942,000 $1,935,137
J.P. Morgan & Company, Incorporated
5.520% 07/23/971,253,000 1,248,772
5.540% 10/01/97750,000 739,382
3,923,291
Brokerage - 4.8%
Merrill Lynch & Company, Inc.
5.700% 09/12/971,300,000 1,284,973
5.710% 09/15/97725,000 716,260
2,001,233
Commercial Financial Services - 14.3%
Assets Securitization Cooperative Corporation
5.620% 08/19/971,400,000 1,389,290
5.680% 08/19/97600,000 595,361
Principal Market
Amount Value
Associates Corporation of North America
5.620% 08/14/972,000,000 1,986,262
General Electric Capital Corporation
5.580% 08/26/972,000,000 1,982,640
5,953,553
Computers & Business Equipment - 2.1%
International Business Machines Corporation
5.540% 09/18/97900,000 889,058
Consumer Financial Services - 12.3%
Ford Motor Credit Company
5.610% 07/25/972,000,000 1,992,520
Toyota Motor Credit Company
5.520% 07/21/971,100,000 1,096,626
USAA Capital Corporation
5.580% 07/24/97675,000 672,594
5.540% 10/07/971,350,000 1,329,639
5,091,379
Food Processing - 13.3%
Cargill, Inc. 5.590% 08/28/971,600,000 1,585,589
5.500% 09/17/97440,000 434,756
Heinz (H.J.) Company
5.500% 09/15/971,500,000 1,498,578
Hershey Foods Corporation
5.530% 08/04/972,000,000 1,989,554
5,508,477
Leisure Time - 4.3%
The Walt Disney Company
5.300% 09/22/971,800,000 1,778,004
Utilities - 4.8%
Florida Power Corporation
5.500% 07/07/971,500,000 1,498,625
5.550% 08/01/97500,000 497,610
1,996,235
Total Commercial Paper - Domestic
(amortized cost $27,141,230) 27,141,230
Commercial Paper - Foreign - 12.9%
Banking - 6.0%
Canadian Imperial Holding
5.600% 08/15/97$2,000,000 $1,986,000
Toronto Dominion Holdings
5.610% 12/10/97500,000 487,378
2,473,378
Food Processing - 0.7%
Principal Market
Amount Value
Canadian Wheat Board
5.540% 08/14/97300,000 297,968
Government - 6.2%
Government of Canada
6.500% 07/07/971,600,000 1,600,192
Province of British Columbia
5.630% 09/10/971,000,000 988,896
2,589,088
Total Commercial Paper - Foreign
(amortized cost $5,360,434) 5,360,434
Short-Term Corporate Notes - 19.8%
Finance & Banking - 13.3%
John Deere Capital Corporation
5.600% 07/15/971,000,000 997,822
5.550% 10/28/971,050,000 1,030,737
Mellon Financial Corporation
6.500% 12/01/971,800,000 1,804,995
Wachovia Bank
5.640% 08/22/971,700,000 1,699,996
5,533,550
Food & Beverages - 3.9% PepsiCo, Inc.
5.480% 07/07/97500,000 499,543
5.480% 07/03/971,100,000 1,099,665
1,599,208
Technology - 2.6%
IBM Credit Corporation
5.560% 09/02/97400,000 396,108
5.540% 10/22/97700,000 687,844
1,083,952
Total Short-Term Corporate Notes
(amortized cost $8,216,710) 8,216,710
Repurchase Agreement - 0.8%
State Street Bank and Trust Company, 4.75%, due 07/01/97,
(collateralized by $270,000 par value U.S. Treasury Bonds,
7.875%, due 02/15/21, with a value of $310,118, cost $299,000)
299,000 299,000
Total Investments - 98.9%
(amortized cost $41,017,374) 41,017,374
Other Assets Less Liabilities - 1.1% 474,268
Net Assets - 100.0% $41,491,642
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
June 30, 1997 (unaudited)
Transamerica
Transamerica Transamerica Transamerica Transamerica Premier
Premier Premier Premier Premier Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Fund
Assets
Investments, at cost
<S> <C> <C> <C> <C> <C>
$37,010,245 $11,352,775 $13,061,573 $14,514,409 $41,017,374
Investments, at value
$53,854,625 $14,193,973 $13,024,092 $20,491,215 $41,017,374
Cash 419 769 464 214 179
Receivables:
Dividends and interest
10,537 13,592 192,032 80,852 147,003
Fund shares sold
133,530 4,964 731 7,076 383,773
Due from Administrator
2,508 16,015 4,028 3,830 24,781
Prepaid expenses and other assets
1,822 1,649 2,198 2,453 4,860
54,003,441 14,230,962 13,223,545 20,585,640 41,577,970
Liabilities
Payables:
Dividends payable
-- 141 200 299 204
Securities purchased
1,159,080 -- -- -- --
Fund shares redeemed
100 -- -- -- 14,425
Advisory fees payable
34,577 3,452 6,480 12,430 11,663
Directors fees payable
2,983 1,039 1,287 1,585 3,653
Distribution fees payable
19,537 2,288 5,463 8,166 6,626
Variation margin payable
-- 29,925 -- -- --
Other accrued expenses
50,222 44,172 28,252 31,646 49,757
1,266,499 81,017 41,682 54,126 86,328
Total Net Assets
$52,736,942 $14,149,945 $13,181,863 $20,531,514 $41,491,642
Net Assets Consist of:
Paid in capital $36,143,348 $10,690,172 $13,471,771 $14,971,637 $41,491,642
Undistributed net investment (loss)
(311,766) -- -- -- --
Accumulated net realized gain (loss) on
EEinvestments and futures transactions
60,980 475,000 (252,427) (416,929) --
Net unrealized appreciation (depreciation)
of investments and futures contracts
16,844,380 2,984,773 (37,481) 5,976,806 --
Total Net Assets
$52,736,942 $14,149,945 $13,181,863 $20,531,514 $41,491,642
Shares outstanding,
$0.001 par value
3,207,962 993,976 1,348,455 1,459,964 41,491,642
Net asset value per share
$16.44 $14.24 $9.78 $14.06 $1.00
See notes to financial statements
Statements of Operations
Six months ended June 30, 1997 (unaudited)
Transamerica
Transamerica Transamerica Transamerica Transamerica Premier
Premier Premier Premier Premier Cash Reserve
Equity Fund Index Fund Bond Fund Balanced Fund Fund
Investment Income
Interest income
$43,559 $84,797 $487,266$180,710 $1,071,356
Dividend income*
85,738 84,609 -- 22,698 --
129,297 169,406 487,266 203,408 1,071,356
Expenses
Investment adviser fee
164,126 18,379 38,106 66,437 67,687
Transfer agent fees
51,980 40,909 36,602 39,557 46,269
Distribution fees:
Investor class 47,966 6,105 15,804 22,105 19,201
Adviser class
1,636 292 296 154 84
Custodian fees
37,464 51,274 21,213 22,962 37,465
Registration fees
8,170 3,615 3,540 3,701 9,996
Audit fees
6,577 2,845 3,126 3,875 8,128
Legal fees 2,969 2,468 2,666 2,728 3,452
Printing 1,612 688 572 758 1,573
Directors' fees and expenses
6,781 2,115 2,208 3,016 6,715
Insurance and miscellaneous expenses
1,610 693 918 1,082 2,384
Total operating expenses
before waiver and reimbursement
330,891 129,383 125,051 166,375 202,954
Fees waived and expenses reimbursed
(42,261) (113,836) (42,332) (39,650) (154,547)
288,630 15,547 82,719 126,725 48,407
Net Investment Income (Loss)
(159,333) 153,859 404,547 76,683 1,022,949
Net Realized and Unrealized
Gain (Loss) From:
Net realized gain (loss) on investments
and futures transactions
42,257 414,711 (237,686) (259,243) --
Change in net unrealized appreciation
(depreciation) of investments
and futures contracts
10,873,707 1,757,568 137,874 3,816,630 --
Net Realized and Unrealized
Gain (Loss) on Investments
10,915,964 2,172,279 (99,812) 3,557,387 --
Net Increase in Net Assets
From Operations
$10,756,631 $2,326,138 $304,735 $3,634,070 $1,022,949
*Net of foreign withholding taxes of:
$-- $554 $-- $-- $--
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Transamerica Premier Transamerica Premier Transamerica Premier
Equity Fund Index Fund Bond Fund
Period ended Year ended Period ended Year ended Period ended Year ended
June 30, 1997* December 31, 1996June 30, 1997* December 31, 1996June 30, 1997* December
31, 1996
Increase in
Net Assets:
From operations:
Net investment income (loss)
$(159,333) $(152,385) $153,859 $212,430 $404,547 $679,307
Net realized gain (loss) on
investments and futures
transactions 42,257 19,987 414,711 597,132 (237,686) 20,100
Change in net unrealized appreciation
(depreciation) of investments
and futures contracts
10,873,707 6,207,735 1,757,568 950,341 137,874 (541,487)
Net increase in net assets
from operations
10,756,631 6,075,337 2,326,138 1,759,903 304,735 157,920
Dividends and distributions to
shareholders from:
Net investment income:
Investor class
-- (21,868)(152,983) (250,208) (403,211) (738,858)
Adviser class
-- (6) (400) (667) (1,373) (3,840)
Net realized gains:
Investor class
-- -- -- (532,417) -- --
Adviser class
-- -- -- (4,551) -- --
Fund share transactions
10,913,354 13,886,118 1,070,033 (3,000,914) 619,933 1,410,447
Increase in net assets
21,669,985 19,939,581 3,242,788 3,972,974 520,084 825,669
Net Assets:
Beginning of period
31,066,957 11,127,376 10,907,157 6,934,183 12,661,779 11,836,110
End of period1
$52,736,942 $31,066,957 $14,149,945 $10,907,157 $13,181,863 $12,661,779
Transamerica Premier Transamerica Premier Transamerica Premier
Equity Fund Index Fund Bond Fund
Period ended Year ended Period ended Year ended Period ended Year ended
June 30, 1997* December 31, 1996June 30, 1997* December 31, 1996June 30, 1997* December
31, 1996
1Includes undistributed net
investment income (loss) of:
$ (311,766) $(152,433) $-- $(476) $-- $37
*Unaudited
See notes to financial statements
Statements of Changes in Net Assets
Transamerica Premier Transamerica Premier
Balanced Fund Cash Reserve Fund
Period ended Year ended Period ended Year ended
June 30, 1997* December 31, 1996 June 30, 1997* December 31, 1996
Increase in
Net Assets:
From operations:
Net investment income
$76,683 $189,475 $1,022,949 $1,525,057
Net realized gain (loss) on
investments and futures
transactions (259,243) (131,140) -- --
Change in net unrealized appreciation
(depreciation) of investments
3,816,630 2,023,894 -- --
Net increase in net assets
from operations
3,634,070 2,082,229 1,022,949 1,525,057
Dividends and distributions to
shareholders from:
Net investment income:
Investor class (76,295) (261,146) (1,021,019) (1,518,377
Adviser class (21) (751) (1,930) (6,680)
Fund share transactions
873,926 2,177,366 9,247,664 4,226,226
Increase in net assets
4,431,680 3,997,698 9,247,664 4,226,226
Net Assets:
Beginning of period
16,099,834 12,102,136 32,243,978 28,017,752
End of period1 $20,531,514 $16,099,834 $41,491,642 $32,243,978
Transamerica Premier Transamerica Premier
Balanced Fund Cash Reserve Fund
Period ended Year ended Period ended Year ended
June 30, 1997* December 31, 1996 June 30, 1997* December 31, 1996
1Includes undistributed net
investment income (loss) of:
$-- $(367) $-- $ --
</TABLE>
*Unaudited
See notes to financial statements
Financial Highlights
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 Premier Equity Fund Transamerica Premier Index Fund
Period ended Year Period Period ended Year Period
June 30, 1997 ended ended June 30, 1997 Ended ended
(Unaudited) December 31, 1996December 31, 1995* (Unaudited) December 31, 1996
December 31, 1995*
Net Asset Value
Beginning of period
<S> <C> <C> <C> <C> <C> <C>
$12.65 $9.82 $10.00 $11.96 $10.59 $10.00
Investment Operations
Net investment income (loss)1
(0.04) (0.06) 0.02 0.16 0.27 0.06
Net realized and
unrealized gain (loss)
3.83 2.91 (0.20) 2.28 2.06 0.53
Total from investment operations
3.79 2.85 (0.18) 2.44 2.33 0.59
Distributions To
Shareholders From:
Net investment income
-- (0.02) -- (0.16) (0.33) --
Net realized gains
-- - - - - -- (0.63) --
Total distributions
-- (0.02) -- (0.16) (0.96) --
Net asset value
End of period
$ 16.44 $12.65 $ 9.82 $14.24 $11.96 $10.59
Transamerica Premier Equity Fund Transamerica Premier Index Fund
Period ended Year Period Period ended Year Period
June 30, 1997 ended ended June 30, 1997 Ended ended
(Unaudited) December 31, 1996December 31, 1995* (Unaudited) December 31, 1996
December 31, 1995*
Total Return2
29.96% 29.07% (1.80)% 20.50% 22.33% 5.90%
Ratios And
Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver+
1.50% 1.50% 0.25% 0.25% 0.35% 0.25%
Before reimbursement/fee waiver+
1.63% 1.95% 2.39% 1.87% 2.29% 4.12%
Net investment income (loss),
after reimbursement/fee waiver+
(0.82)% (0.66)% 1.51% 2.52% 2.48% 2.70%
Portfolio turnover rate
3.51% 60% 0% 8.13% 94% 4%
Average commission rate3
$0.0619 $0.0660 $0.0678 $0.0679 $0.0363 $0.0418
Net assets end of period
(in thousands)
$52,737 $30,454 $11,070 $14,150 $10,814 $6,934
</TABLE>
+ Annualized
* Each Fund commenced operations on October 2, 1995.
1 Net investment income is after waiver of fees by the Adviser and
reimbursement of certain expenses by the Administrator (Note 2). If the
Adviser had not waived fees and the Administrator had not reimbursed
expenses, net investment income (loss) per share would have been
$(0.04), $(0.10) and $(0.01) for the Equity Fund and $0.06, $0.06 and
$(0.03) for the Index Fund for the periods ended June 30, 1997 and
December 31, 1996 and 1995, respectively. 2 Total return represents
aggregate total return for the period indicated and is not annualized
for periods less than one year. 3 Represents the average commission
rate paid on equity security transactions on which commissions are
charged.
See notes to financial statements
Financial Highlights
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 Premier Bond Fund Transamerica Premier Balanced Fund
Period ended Year Period Period ended Year Period
June 30, 1997 ended ended June 30, 1997 ended ended
(Unaudited) December 31, 1996December 31, 1995* (Unaudited) December 31, 1996 December
31, 1995*
Net Asset Value
Beginning of period
<S> <C> <C> <C> <C> <C> <C>
$9.86 $10.37 $10.00 $11.57 $10.23 $10.00
Investment Operations
Net investment income 1
0.31 0.56 0.16 0.05 0.14 0.06
Net realized and
unrealized gain (loss)
(0.08) (0.46) 0.32 2.49 1.40 0.17
Total from investment operations
0.23 0.10 0.48 2.54 1.54 0.23
Distributions To
Shareholders From:
Net investment income
(0.31) (0.61) (0.11) (0.05) (0.20) - -
Total distributions
(0.31) (0.61) (0.11) (0.05) (0.20) - -
Net asset value
End of period
$9.78 $ 9.86 $10.37 $14.06 $11.57 $10.23
Total Return2
2.36% 1.16% 4.82% 22.03% 15.28% 2.30%
Ratios And
Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver+
1.30% 1.30% 0.25% 1.45% 1.45% 0.25%
Before reimbursement/fee waiver+
1.74% 1.81% 1.93% 1.71% 1.94% 2.12%
Net investment income,
after reimbursement/fee waiver
6.37% 5.66% 6.55% 0.87% 1.34% 3.12%
Transamerica Premier Bond Fund Transamerica Premier Balanced Fund
Period ended Year Period Period ended Year Period
June 30, 1997 ended ended June 30, 1997 ended ended
(Unaudited) December 31, 1996December 31, 1995* (Unaudited) December 31, 1996 December
31, 1995*
Portfolio turnover rate
66.45% 7% 19% 9.92% 19% 16%
Average commission rate3
-- -- -- $0.0649 $0.0656 $0.0662
Net assets end of period
(in thousands)
$13,182 $12,553 $11,827 $20,532 $16,041 $12,084
</TABLE>
+ Annualized
* Each Fund commenced operations on October 2, 1995.
1 Net investment income is after waiver of fees by the Adviser and
reimbursement of certain expenses by the Administrator (Note 2). If the
Adviser had not waived fees and the Administrator had not reimbursed
expenses, net investment income per share would have been $0.29, $0.50
and $0.12 for the Bond Fund and $0.04, $0.09 and $0.02 for the Balanced
Fund, for the periods ended June 30, 1997 and December 31, 1996 and
1995, respectively. 2 Total return represents aggregate total return
for the period indicated and is not annualized for periods less than
one year. 3Represents the average commission rate paid on equity
security transactions on which commissions are charged.
See notes to financial statements
Financial Highlights
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 Premier Cash Reserve Fund
Period ended Year Period
June 30, 1997 ended ended
(Unaudited) December 31, 1996 December 31, 1995*
Net Asset Value
<S> <C> <C> <C>
Beginning of period $1.00 $1.00 $1.00
Investment Operations
Net investment income1 0.03 0.05 0.01
Total from investment operations
0.03 0.05 0.01
Transamerica Premier Cash Reserve Fund
Period ended Year Period
June 30, 1997 ended ended
(Unaudited) December 31, 1996 December 31, 1995*
Distributions To
Shareholders From:
Net investment income (0.03) (0.05) (0.01)
Total distributions (0.03) (0.05) (0.01)
Net asset value
End of period $1.00 $1.00 $1.00
Total Return2 2.65% 5.34% 1.39%
Ratios And
Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver +
0.25% 0.25% 0.25%
Before reimbursement/fee waiver+
0.98% 1.09% 1.37%
Net investment income
after reimbursement/fee waiver+
5.29% 5.21% 5.55%
Net assets end of period
(in thousands) $41,492 $32,041 $27,996
</TABLE>
+ Annualized
*Fund commenced operations on October 2, 1995.
1 Net investment income is after waiver of fees by the Adviser and
reimbursement of certain expenses by the Administrator (Note 2). If the
Adviser had not waived fees and the Administrator had not reimbursed
expenses, net investment income per share would have been $0.02, $0.04
and $0.01 for the Cash Reserve Fund, for the periods ended June 30,
1997 and December 31, 1996 and 1995, respectively. 2 Total return
represents aggregate total return for the period indicated and is not
annualized for periods less than one year.
See notes to financial statements
Notes to Financial Statements (unaudited)
June 30, 1997
1. Significant Accounting Policies
Transamerica Investors, Inc. (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
five 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" and
Transamerica Premier Cash Reserve Fund (the "Cash Reserve Fund"). Prior
to April 30, 1997, each series had two classes of shares, Investor
Class and Adviser Class. Each share of each class represented an
identical legal interest in the same investments of a Fund, except that
Adviser Class shares had higher distribution fees. Each class had
certain other expenses related solely to that class. On April 30, 1997,
the Adviser Class of each series was terminated by the Board of
Directors.
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) and 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 the 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 a certain
percentage of the contract amount. This is known as the initial margin.
Subsequent payments ("variation margin") are made or received by the
Fund each day, depending on the daily fluctuations of the value of the
contract. The daily changes in the contract are recorded as unrealized
gains or losses. The Fund recognizes a realized gain or loss when the
contract is closed.
The use of futures contracts involves several risks. The change in
value of futures contracts primarily corresponds with the value of
their underlying instruments, which may not correlate with the change
in value of the hedged investments. In addition, the Fund may not be
able to enter into a closing transaction because of an illiquid
secondary market.
(D) Securities Transactions, Investment Income And Expenses -
Securities transactions are recorded as of the trade date. 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. Expenses
not directly chargeable to a specific Fund are allocated primarily on
the basis of relative average daily net assets.
(E) Dividends And Distributions - Dividends from net investment income
on shares of the Cash Reserve Fund are declared daily and paid monthly.
Dividends from net investment income on shares of the Bond Fund 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 declared and paid quarterly. Each Fund distributes net realized
capital gains, if any, annually. Dividends and distributions paid by
each Fund 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 and the Balanced Fund
elected to defer net capital losses of $22,150, and $120,282,
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 reflect the reported
amounts of assets and liabilities and disclosures of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenue 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 "Investment Adviser"), a wholly owned subsidiary of
Transamerica Corporation, on behalf of each Fund. For its services to
the Funds, the Investment Adviser receives a monthly fee, based on an
annual percentage of the average daily net assets of each Fund.
<TABLE>
<CAPTION>
The annual fee for the Funds are as follows:
1st Next In excess of
$1 Billion $1 Billion $2 Billion
<S> <C> <C> <C>
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%
Cash Reserve Fund 0.35% 0.35% 0.35%
</TABLE>
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 Investment 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 Index
Fund, the Bond Fund, the Balanced Fund, and the Cash Reserve Fund which
together exceed a specified percentage of the average daily net assets
of that Fund. These subsidies may be terminated at any time without
notice. The specified percentages are as follows:
Equity Fund 1.50%
Index Fund 0.25%
Bond Fund 1.30%
Balanced Fund 1.45%
Cash Reserve Fund 0.25%
Transamerica Securities Sales Corporation ("TSSC") is the principal
underwriter and distributor of the shares of each of the Funds. TSSC is
a wholly-owned subsidiary 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. Each director
of the Company who is not an "interested person" (as that term is
defined in the 1940 Act) receives from the Funds a $10,000 annual fee,
$1,000 for each meeting of the Company's Board attended, and $500 for
each Board committee meeting attended, and is reimbursed for expenses
incurred in connection with such attendance. For the period ended June
30, 1997, the Funds accrued aggregate fees of $20,835 to all directors
who are not affiliated persons of the Adviser.
As of June 30, 1997, Transamerica Corporation and its affiliates held
the following percentages of outstanding shares:
Equity Fund 37.25%
Index Fund 52.31%
Bond Fund 82.44%
Balanced Fund 56.20%
Cash Reserve Fund 63.40%
3. Distribution Plans
The 12b-1 plans of distribution and related distribution contracts
require the Funds to pay distribution fees to TSSC as compensation for
its activities, not as reimbursement for specific expenses. There is an
annual 12b-1 distribution fee of 0.25% of the average daily net assets,
except the Index and Cash Reserve Funds, which each pay a distribution
fee of 0.10% of the average daily net assets. Prior to termination, the
Adviser Class incurred annual 12b-1 distribution and service fees of
0.75% and 0.25%, respectively of the average daily net assets, except
the Cash Reserve Fund, which had no distribution fee.
4. Security Transactions
The aggregate cost of purchases and proceeds from sales of securities,
excluding short-term investments, for the period ended June 30, 1997
were as follows:
<TABLE>
<CAPTION>
U.S. Proceeds U.S.
Government from Government
Fund Purchases Purchases Sales Sales
<S> <C> <C>
Equity Fund $9,830,173 -- $1,328,576 --
Index Fund $1,036,450 -- $939,375 --
Bond Fund $8,767,691 $2,074,563 $8,138,027 $4,223,083
Balanced Fund $2,231,738 -- $1,718,781 --
</TABLE>
5. Capital Stock Transactions
At June 30, 1997, there were two billion shares of $0.001 par value
stock authorized. The tables below summarize the transactions in Fund
shares for the periods indicated. As discussed in Note 1, the Adviser
Class was terminated on April 30, 1997.
<PAGE>
<TABLE>
<CAPTION>
Transamerica Premier Equity Fund/Authorized Shares -
57,142,858 Period ended June 30, 1997Year
ended December 31, 1996
Investor Class Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Capital stock sold 874,653 $12,618,544 1,396,408 $14,694,383
Capital stock issued upon reinvestment
of dividends and distributions
-- -- 2,199 21,734
Capital stock redeemed
(74,054)(1,076,701) (118,611) (1,292,651)
Net increase
800,600 $11,541,843 1,279,996 $13,423,466
Adviser Class
Capital stock sold 6,522 $ 86,947 45,506 $ 489,805
Capital stock issued upon reinvestment
of dividends and distributions
-- -- 1 6
Capital stock redeemed
(55,259) (715,436) (2,598) (27,159)
Net increase (48,737) $ (628,489) 42,909 $462,652
Transamerica Premier Index Fund/Authorized Shares - 57,142,857
Period ended June 30, 1997 Year ended December 31,
1996
Investor Class Shares Amount Shares Amount
Capital stock sold 109,591 $ 1,425,768 206,344 $ 2,362,558
Capital stock issued upon reinvestment
of dividends and distributions
11,585 152,923 63,455 781,615
Capital stock redeemed
(31,366)(413,482) (20,564) (232,889)
Net increase 89,809 $ 1,165,209 249,235 $2,911,284
Adviser Class
Capital stock sold 2,719 $ 34,789 7,341 $84,268
Capital stock issued upon reinvestment
of dividends and distributions
18 225 414 5,362
Capital stock redeemed
(10,514)(130,190) -- --
Net increase (7,776) $ (95,176) 7,755 $ 89,630
<PAGE>
Transamerica Premier Bond Fund/Authorized Shares - 57,142,857
Period ended June 30, 1997 Year ended December 31,
1996
Investor Class Shares Amount Shares Amount
Capital stock sold 55,898 $ 543,845 85,943 $ 843,001
Capital stock issued upon reinvestment
of dividends and distributions
41,477 402,053 74,981 736,816
Capital stock redeemed
(22,617)(220,251) (27,700) (270,290)
Net increase 74,758 $ 725,648 133,224 $ 1,309,527
Adviser Class
Capital stock sold 4,562 $ 44,667 18,228 $ 179,841
Capital stock issued upon reinvestment
of dividends and distributions
117 1,138 391 3,775
Capital stock redeemed
(15,725)(151,521) (8,499) (82,696)
Net increase (11,046) $ (105,715)10,120 $ 100,920
Transamerica Premier Balanced Fund/Authorized Shares - 57,142,857
Period ended June 30, 1997 Year ended December 31,
1996
Investor Class Shares Amount Shares Amount
Capital stock sold 110,723 $E1,391,368 223,285 $2,348,093
Capital stock issued upon reinvestment
of dividends and distributions
5,968 75,781 24,579 260,932
Capital stock redeemed
(42,622)(532,791) (42,754) (465,759)
Net increase 74,068 $ 934,358 205,110 $ 2,143,266
Adviser Class
Capital stock sold 1,562 $ 19,115 22,698 $ 242,657
Capital stock issued upon reinvestment
of dividends and distributions
1 17 72 750
Capital stock redeemed
(6,682) (79,564) (19,469) (209,307)
Net increase (5,118) $ (60,432) 3,301 $ 34,100
<PAGE>
Transamerica Premier Cash Reserve Fund/Authorized Shares
- 507,142,857 Period ended June 30, 1997Year
ended December 31, 1996
Investor Class Shares Amount Shares Amount
Capital stock sold 15,350,829 $15,349,834 30,894,164 $30,894,164
Capital stock issued upon reinvestment
of dividends and distributions
1,017,985 1,017,985 1,647,402 1,647,402
Capital stock redeemed
(6,917,691) (6,916,796) (28,497,422) (28,497,422)
Net increase 9,451,023 $9,451,023 4,044,144 $4,044,144
Adviser Class
Capital stock sold 21,197 $21,197 417,209 $ 417,209
Capital stock issued upon reinvestment
of dividends and distributions
1,638 1,638 6,461 6,461
Capital stock redeemed
(226,194) (226,194) (241,588) (241,588)
Net increase (203,359) $(203,359) 182,082 $182,082
</TABLE>
6. Transamerica Premier Short-Intermediate Government Fund
On April 30, 1997, the Board of Directors of the Company elected to
terminate the Transamerica Premier Short-Intermediate Government Fund.
Transamerica Premier Funds
Board of Directors and Officers
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
H. Michael Kim
Vice President
Donald P. Radisich
Vice President
Christopher W. Shaw
Assistant Vice President
Investment Adviser
Transamerica Investment Services, Inc.
1150 South Olive Street
Los Angeles, CA 90015
Distributor
Transamerica Securities Sales Corporation
1150 South Olive Street
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 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.
(C)1997 Transamerica Securities Sales Corporation, Distributor
Transamerica Securities Sales Corporation, Distributor
1-800-89-ASK-US (1-800-892-7587)
http://funds.transamerica.com
e-mail: [email protected]
TPF 122-797
Transamerica Premier Funds
<PAGE>
