TRANSAMERICA PREMIER FUNDS 1998
Semi-Annual Report
<PAGE>
Table of Contents
President's Report 1
Investment Adviser Outlook 2
Transamerica Premier Aggressive Growth Fund 4
Transamerica Premier Small Company Fund 6
Transamerica Premier Equity Fund 8
Transamerica Premier Value Fund 10
Transamerica Premier Index Fund 12
Transamerica Premier Balanced Fund 19
Transamerica Premier Bond Fund 22
Transamerica Premier Cash Reserve Fund 24
Financial Statements
Statements of Assets and Liabilities 26
Statements of Operations 27
Statements of Changes in Net Assets28
Financial Highlights 30
Notes to Financial Statements 36
<PAGE>
Dear Fellow Shareholders
In just a few weeks, the Transamerica Premier Funds will mark its third year of
operations. The Funds were first offered in October 1995, with the intention of
bringing the money management expertise of Transamerica to the general public.
The Premier Funds continue to offer an array of fund selections, many with top
rankings and phenomenal performance.
The spotlight, as in the past, continues to shine on the performance and
rankings of the Premier Funds. The newcomers to the fund family, the Premier
Aggressive Growth and Premier Small Company Funds performed exceptionally well
for the year ended June 30, 1998. The Premier Aggressive Growth Fund was ranked
#1 among 231 funds in the Lipper Capital Appreciation category, returning an
extraordinary 75.50% for the one-year period ended June 30, 1998. For the same
time frame, the Small Company Fund performed even better with a return of
76.11%, and was ranked #1 among 526 funds in the Lipper Small Cap category! As
you review this semi-annual report, you will find that many of the other Premier
Funds followed suit, performing better than their corresponding market
benchmarks and many of their competitors.
We continually aim to provide a variety of funds for all investment needs. The
Premier Value and Premier High Yield Bond Funds, both introduced in the last six
months, have increased our number of funds to nine, since October 1995.
If you would like more information on these Funds, please call 1-800-892-7587.
We realize that despite the outstanding performance and the introduction of new
funds, all is naught if we did not strive to provide the highest level of
customer service. To that end, we asked you to provide us with feedback
regarding your experiences with the Premier Funds. Overall, the results were
generally positive (see table). We appreciate your time spent on completing the
survey and providing us with your comments. We have a better understanding of
areas in which improvements can be made.
By far, the most utilized service is PremierQuote, our 24-hour automated
telephone system. If you would like more information on how to check your
account balance, or to purchase, exchange or redeem shares, give us a call at
1-800-892-7587. We'll send you information on this new system. The daily net
asset values for all of the Premier Funds are also available through
PremierQuote.
The remainder of the year should prove to be as exciting as the first half of
1998. Watch for announcements regarding the launch of our new web site. Among
the added features will be the ability to access your account and transactions
on-line. Thank you very much for your continued investment in the Premier Funds.
We appreciate being a part of your financial portfolio.
Sincerely,
Nicki Bair
President
Survey Findings
Approximately 78% of the respondents have called our shareholder services unit
at least once in the last year.
86% were satisfied with the overall level of service they received.
98% were satisfied with the courteousness of the shareholder representative.
94% were satisfied with the representative's ability to answer and address
questions in a timely manner.
Based on the level of service received during the last transaction, 97% would
recommend the Premier Funds to a friend or business associate.
Approximately 90% reported that the investment kit provided enough information
for deciding whether or not to invest in the Funds.
Total Surveys: 982
For a complete summary of the survey results, please call 1-800-892-7587.
Past performance is no guarantee of future results. The investment return and
principal value of an investment will fluctuate so that an investor's shares,
when redeemed, may be worth more or less than their original cost.
[ page 1 transamerica premier funds 1998 Semi-annual report]
Portfolio Management
Transamerica Premier Funds
Portfolio Realignment
<PAGE>
TRANSAMERICA INVESTMENT ADVISER OUTLOOK
Growth in the second quarter of 1998 slowed markedly from the first quarter's
blazing 5.4% gain, to an annual rate of less than 1% for the year ended June 30,
1998. Consumer and housing sectors were strong in the second quarter, but
inventory accumulation and the balance of trade were weak. In particular, the
trade balance with Asian nations deteriorated dramatically.
Job growth, rising incomes, and increased financial wealth have kept
consumer confidence at historically high levels. In the second quarter, new jobs
were created at the rate of 278,000 jobs per month, the second highest pace in
three years.
Asia
With the largest economy in Asia and the second largest in the world, Japan's
economic problems began long before they did in the rest of the region. In the
mid-1980s Japan held down the Yen and boosted its export markets; it also
created a surplus of liquidity that eventually inflated real estate and stock
prices.
Despite the fall in the Yen, Japan is not experiencing a currency crisis, and
has sufficient foreign currency reserves to pay off its foreign debts. The
country has begun the process of dealing with its banking crisis, but since its
bad loan situation is four to five times larger, and Japanese authorities have
not acted quickly or decisively, it will take longer to resolve than did a
similar crisis in the U.S. in the mid-1980s. The country's ability to make the
fiscal and structural changes its economy desperately needs will be further
slowed due to the demands of forming a new government.
Other Asian nations are involved in a deepening economic contraction complicated
by political and social unrest. Reform of each countries' banking system depends
on a revaluation of highly overvalued assets. Export growth will be extremely
hard for these export-dependent countries, since up to 40-50% of their exports
have historically been within the region.
China's growth has faltered during a time that high growth is needed to absorb
more than five million workers expected to lose their jobs as Chinese companies
privatize and restructure. China has been affected by the region's round of
devaluations and by slowing growth from Asian customers who account for 40% of
the country's exports. If China attempts to keep its exports attractively priced
by devaluing its currency, it could spark a new round of devaluations by its
neighbors.
Inflation
Worldwide bumper crops and the collapse of Asian markets have placed a lid on
most agricultural commodity prices at the same time that reduced demand by the
Asian economies has made crude oil prices plummet to their lowest levels in
twelve years. In manufactured goods, there is excess worldwide capacity for
everything from steel to semiconductors.
The only inflationary pressures are in the labor markets. Service sector wages
have been growing at 4.8%, versus just 2.5% in the manufacturing sector, far
outpacing productivity gains. So far, intense competitive pressures in services
such as banks and retailing have not allowed wage costs to be passed through in
the form of higher prices.
Overall inflation should remain under 2% for the rest of the year.
Interest Rates
Although the Federal Reserve moved to a tightening bias earlier this year, moves
to raise short-term rates have been placed on hold by the crisis in Asia and
inflation numbers which show little indication of moving higher. The Fed remains
concerned that higher U.S. interest rates would intensify Asian problems, and
that current signs of contraction in the manufacturing sector may indicate that
the U.S. economy is poised for a slowdown. It is doubtful, however, that the
Fed's bias will change to ease until economic indicators point more convincingly
to an overall slowdown, and short-term interest rates are expected to remain at
current levels.
Long-term interest rates are expected to move lower over the balance of the
year, responding to the very attractive real returns available. With a federal
budget surplus of nearly $100 billion likely in the current fiscal year, the
U.S. Treasury will be paying off its notes and bonds. This reduced supply
coupled with high real rates suggests that long-term bonds are significantly
undervalued.
Stock Market
U.S. corporations have been facing a profit squeeze due to an inability to raise
prices while facing rising labor costs. Foreign competition, helped by a strong
dollar and the Asian crisis, has eroded corporate pricing power at the same time
it has restricted revenue growth. The long economic expansion has pushed
employment to high levels and made qualified labor expensive and hard to find.
Fortunately, productivity gains are still rising, helping to ameliorate some of
the pressure on profit margins. Companies continue to push new technology and
reorganize to gain optimal efficiency.
With corporate profits expected to rise only about 6% this year and next, stock
prices may mark time waiting for earnings to catch up. Despite the weaker profit
outlook, stock prices are at their all-time highs. Equities have returned over
20% so far this year, and valuations have expanded to near record levels. The
bull market reflects the continuing excellent outlook for the economy to expand,
the strong flow of funds into the market from increased equity allocations by
domestic and foreign investors, low inflation, and declining interest rates.
We continue to maintain our long-term positions in well-managed, rapidly growing
companies in the technology, financial, business services, and health care
sectors.
transamerica premier funds 1998 Semi-annual report page 2
page 3 transamerica premier funds 1998 Semi-annual report
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TRANSAMERICA PREMIER AGRESSIVE GROWTH FUND
Portfolio Manager: Philip W. Treick
Fund Performance
The Transamerica Premier Aggressive Growth Fund performed extraordinarily well
during its first year of operation. For the 12-month period ended June 30, 1998,
the Fund ranked first among 231 capital appreciation funds in the country,
according to Lipper Analytical Services, Inc.
The Fund's total return for the six-month period ended June 30, 1998 was 44.09%,
in comparison to a 17.71% advance by the S&P 500 for the same period. Since its
inception on June 30, 1998, the Fund has earned a total return of 75.50%, while
the S&P 500 has returned 30.16%.
Portfolio Manager Comments
Equity markets were strong during the first half of 1998. The Fund, which is
built one company at a time, focuses on companies that will benefit from major
long-term changes in the economy. In particular, we like industry leaders with
strong management that are responsive to shareholder concerns. In selecting
companies with healthy cash flow and good earnings-growth potential we estimate
how much it would cost to buy the firm, and compare that with the cash flow
generated from the company's operations on an annual basis.
Some of the Fund's largest holdings include the leading personal computer
company --- Dell Computer, the computer animation company --- Pixar, and the
internet merchant --- Amazon.com. The Fund is also heavily invested in the
business services, leisure and entertainment industries.
Portfolio Asset Mix
[insert of 2-D pie-chart; graphically delineating "Common stocks 87.5%", "Cash
and Cash Equivalents 8.8%", "Other 3.7%"]
Going Forward
The weakness in Asian markets will no doubt continue to have a negative effect
on overall corporate profitability, although expectations for certain individual
companies are very positive. This type of environment fosters a "stock pickers"
market, with investment selection particularly crucial to achieving equity
performance. Since our investment style is well suited to perform in this type
of investment climate, we will continue to search for and strengthen our
holdings in world class companies that meet our criteria.
Thank you for your continued investment in the Transamerica Premier Aggressive
Growth Fund.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN TRANSAMERICA
PREMIER AGGRESSIVE GROWTH FUND WITH THE S&P 500 INDEX**
[insert of chart outlining data from 06/30/97 through 06/98]
[insert of table]:
Total Returns
As of June 30, 1998 Since Inception* One Year
Premier Aggressive Growth Fund 75.50% 75.50%
S&P 500 Index 30.16% 30.16%
Premier Aggressive Growth Fund Fund ($17,550 at 6/30/98) S&P 500 Index ($13,016
at 6/30/98) [end table]
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.
* June 30, 1997.
** Hypothetical illustration of $10,000 invested at inception (June 30, 1997),
assuming reinvestment of dividends and capital gains at net asset value through
June 30, 1998. 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
return of the Fund would have been lower.
transamerica premier funds 1998 Semi-annual report page 4
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TRANSAMERICA PREMIER AGGRESSIVE GROWTH FUND Schedule of Investments --- June 30,
1998 (Unaudited)
Market
Shares Value
Shares or
Principal Market
Amount Value
COMMON STOCKS -- 87.5%
Business Services -- 4.1%
Envoy Corporation (a) 50,000 $ 2,368,750
Chemicals -- 7.6%
Eco Soil Systems, Inc. (a) 140,000 1,470,000
Minerals Technologies, Inc. 25,000 1,271,875
Monsanto Company 30,000 1,676,250
4,418,125
Commercial Services -- 11.3%
Pharmaceutical Marketing Services, Inc. 149,500 2,130,375
Quintiles Transnational Corporation (a) 30,000 1,475,625
Sodexho Marriott Services, Inc. 100,000 2,900,000
6,506,000
Computers & Business Equipment -- 10.4%
Cisco Systems, Inc. (a) 15,000 1,380,937
Dell Computer Corporation (a) 50,000 4,640,625
6,021,562
Containers & Packaging -- 1.6%
Sealed Air Corporation (a) 25,000 918,750
Drugs & Health Care -- 2.1%
Alternative Living Services, Inc. (a) 45,000 1,215,000
Electronics -- 6.4%
Applied Materials, Inc. (a) 50,000 1,475,000
Intel Corporation 30,000 2,223,750
3,698,750
Financial Services -- 1.9%
Franklin Resources, Inc. 20,000 1,080,000
Hotels & Restaurants -- 2.8%
Mirage Resorts, Inc. (a) 75,000 1,598,438
Insurance -- 2.8%
20th Century Industries 30,000 860,625
General Re Corporation 3,000 760,500
1,621,125
Leisure & Entertainment -- 8.5%
Pixar, Inc. (a) 50,000 $ 3,018,750
Speedway Motorsports, Inc. (a) 75,000 1,917,188
4,935,938
Real Estate Operations -- 1.3%
CCA Prison Realty Trust 25,000 765,625
Retail -- 12.7%
Amazon.com, Inc. (a) 40,000 3,990,000
Fred Meyer, Inc. (a) 40,000 1,700,000
Hollywood Entertainment Corporation 120,000 1,627,500
7,317,500
Software -- 11.4%
i2 Technologies, Inc. (a) 50,000 1,756,250
Microsoft Corporation (a) 12,500 1,354,687
ProBusiness Services, Inc. 75,000 3,506,250
6,617,187
Transportation -- 2.6%
Kansas City Southern Industries, Inc. 30,000 1,488,750
Total Common Stocks
(cost $39,445,960) 50,571,500
U.S. GOVERNMENT AGENCY SECURITY -- 8.8%
Federal Farm Credit Bank
(cost $5,101,000) 5.000% 07/01/98 $5,101,000 5,101,000
Total Investments -- 96.3%
(cost $44,546,960)* 55,672,500
Other Assets Less Liabilities -- 3.7% 2,149,020
Net Assets -- 100.0% $57,821,520
(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 $12,132,585 and $1,007,045,
respectively. Net unrealized appreciation for tax purposes is $11,125,540.
See notes to financial statements
page 5 transamerica premier funds 1998 Semi-annual report
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TRANSAMERICA PREMIER SMALL COMPANY FUND
Portfolio Manager: Philip W. Treick
Fund Performance
The Transamerica Premier Small Company Fund earned the top ranking in its first
year of operation. For the 12-month period ended June 30, 1998, the Fund ranked
first among 526 small cap funds in the country, according to Lipper Analytical
Services, Inc.
The Fund's total return for the six-month period ended June 30, 1998 was 41.00%,
in comparison to a 17.71% advance by the Russell 2000 Index for the same period.
Since its inception on June 30, 1997, the Fund has earned a total return of
76.11%, while the Russell 2000 has returned 16.50%.
Portfolio Manager Comments
The Fund focuses on industries or businesses that are changing, looking for
companies that are equipped to adapt well, and benefit from these changes. At
the same time, scale is important, and the Fund seeks out companies which face
little competition and are positioned to dominate within their market niche. The
Fund's performance has been driven by investments in companies on the verge of
achieving this competitive advantage. Our portfolio is not heavily weighted with
companies which create technology, but in companies which benefit from it,
including internet merchant Amazon.com, a payroll services company, ProBusiness
Services, and Envoy Corp., which supplies information services to the
pharmaceutical and health care industries.
Portfolio Asset Mix
Going Forward
Small company valuations are particularly sensitive to movements in interest
rates, making them generally more volatile than larger companies. However, some
small companies are poised to grow even in periods of lower inflation and slow
economic growth like we expect during the rest of 1998. We believe the Fund is
well positioned for this type of environment and are actively searching for more
companies that meet our criteria.
Thank you for your continued investment in the Transamerica Premier Small
Company Fund.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN TRANSAMERICA
PREMIER SMALL COMPANY FUND WITH THE RUSSELL 2000 INDEX**
Total Returns
As of June 30, 1998 Since Inception* One Year
Premier Small Company Fund 76.11% 76.11%
Russell 2000 Index 16.50% 16.50%
Premier Small Company Fund ($17,611 at 6/30/98)
Russell 2000 Index ($11,650 at 6/30/98)
The Russell 2000 Index measures the performance of the 2,000 smallest companies
(approximately 7%) in the Russell 3000 Index (an index composed of the 3000
largest U.S. companies by market capitalization, representing approximately 98%
of the U.S. equity market).
* June 30, 1997
** Hypothetical illustration of $10,000 invested at inception (June 30, 1997),
assuming reinvestment of dividends and capital gains at net asset value through
June 30, 1998. 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
return of the Fund would have been lower.
transamerica premier funds 1998 Semi-annual report page 6
<PAGE>
TRANSAMERICA PREMIER SMALL COMPANY FUND Schedule of Investments --- June 30,
1998 (Unaudited)
Market
Shares Value
Shares or
Principal Market
Amount Value
COMMON STOCKS -- 73.8%
Business Services -- 4.5%
Envoy Corporation (a) 35,000 $1,658,125
Chemicals -- 7.0%
Eco Soil Systems, Inc. (a) 125,000 1,312,500
Minerals Technologies, Inc. 25,000 1,271,875
2,584,375
Commercial Services -- 2.0%
Quintiles Transnational Corporation (a) 15,000 737,812
Drugs & Health Care -- 5.6%
Alternative Living Services, Inc. (a) 31,000 837,000
ChiRex, Inc. (a) 70,000 1,229,375
2,066,375
Electronics -- 3.3%
Level One Communications, Inc. (a) 52,000 1,222,000
Financial Services -- 3.5%
Metris Companies Inc. 20,000 1,275,000
Insurance -- 2.0%
20th Century Industries 25,000 717,188
Leisure & Entertainment -- 9.3%
Pixar, Inc. (a) 40,000 2,415,000
Speedway Motorsports, Inc. (a) 40,000 1,022,500
3,437,500
Oil -- 0.9%
Newpark Resources, Inc. (a) 30,000 333,750
Real Estate Operations -- 2.1%
Cca Prison Realty Trust 25,000 765,625
Retail -- 16.3%
Amazon.com, Inc. (a) 40,000 3,990,000
Fred Meyer, Inc. (a) 15,000 637,500
Hollywood Entertainment Corporation (a) 100,000 1,356,250
5,983,750
Software -- 11.6%
i2 Technologies, Inc. (a) 40,000 $ 1,405,000
ProBusiness Services, Inc. 35,000 1,636,250
Transaction Systems Architects, Inc. (a) 32,000 1,232,000
4,273,250
Technology -- 5.7%
Cymer, Inc. (a) 60,000 967,500
Exodus Communications, Inc. (a) 25,000 1,118,750
2,086,250
Total Common Stocks
(cost $20,494,432) 27,141,000
U.S. GOVERNMENT AGENCY SECURITY -- 16.4%
Federal Farm Credit Bank
(cost $6,052,000) 5.000% 07/01/98 $6,052,000 6,052,000
TOTAL INVESTMENTS -- 90.2%
(cost $26,546,432)* 33,193,000
Other Assets Less Liabilities -- 9.8% 3,599,265
Net Assets -- 100.0% $ 36,792,265
(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 $7,507,671 and $861,103,
respectively. Net unrealized appreciation for tax purposes is $6,646,568.
See notes to financial statements
page 7 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER EQUITY FUND
Portfolio Manager: Jeffrey S. Van Harte
Fund Performance
The Premier Equity Fund performed extraordinarily well during the first half of
1998. The Fund generated a total return of 23.48% for the six-month period ended
June 30, 1998, in comparison to a 17.71% advance by the S&P 500 for the same
period. Since its inception in October 1995, the Fund has earned an annualized
total return of 35.59%, while the S&P 500 has returned 29.77%. For the 12-month
period ended June 30, 1998, the Fund ranked in the top 5% among growth funds
monitored by Lipper Analytical Services, Inc.
Portfolio Manager Comments
Although strong corporate profits and almost non-existent inflation in the
United States continued to provide a very positive environment for the equity
markets during the first half of 1998, the market narrowed considerably, with
particular focus on multi-national growth stocks. As a result of our attention
to premier companies, the Fund owned many top performers in this category.
The Fund has had significant assets committed to leading companies in the
technology and financial services sectors, and more recently has invested in
firms handling data and claims processing information for the pharmaceutical and
health care sectors. The aging of the baby-boom generation is creating strong
demand for financial and investment services that make it possible to build
wealth through savings and investments. The same demographics are also fueling
the need for more streamlined drug and health care delivery systems.
The Fund is invested in companies that have superior growth prospects, strong
management, and leading market share positions. The companies that comprise our
portfolio have unique and enduring advantages over their competitors that should
lead to increased returns for shareholders over the long term. Our portfolio
includes the leading personal computer company Dell Computer, the computer
animation company Pixar, and Envoy Corp., which supplies information services to
the pharmaceutical and health care industries.
Portfolio Asset Mix
Going Forward
There is still uncertainty about the extent of the impact of the Asian crisis on
corporate earnings in the United States. As inflation recedes further from the
investment landscape, lower interest rates should bolster stock market
valuations. We will stay away from companies with exposure to the Asian economy,
and continue to invest in very high quality companies. Individual stock
selection will remain a critical component of Fund performance for the remainder
of 1998.
Thank you for your continued investment in the Transamerica Premier Equity Fund.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN TRANSAMERICA
PREMIER EQUITY FUND WITH THE S&P 500 INDEX**
Total Returns Annualized
As of June 30, 1998 Since Inception* One Year
Premier Equity Fund 35.59% 40.15%
S&P 500 Index 29.77% 30.16%
Premier Equity Fund ($23,085 at 6/30/98)
S&P 500 Index ($20,465 at 6/30/98)
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, 1998. 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
return of the Fund would have been lower.
transamerica premier funds 1998 Semi-annual report page 8
<PAGE>
TRANSAMERICA PREMIER EQUITY FUND
Schedule of Investments --- June 30, 1998 (Unaudited)
Market
Shares Value
Shares or
Principal Market
Amount Value
Common Stocks -- 96.0%
Agricultural Biotechnology -- 3.6%
Pioneer Hi-Bred International, Inc. 260,000 $ 10,757,500
Business Services -- 9.4%
Cognizant Corporation 160,000 10,080,000
Envoy Corporation (a) 250,000 11,843,750
First Data Corporation 200,000 6,662,500
28,586,250
Chemicals -- 5.7%
Minerals Technologies, Inc. 175,000 8,903,125
Monsanto Company 150,000 8,381,250
17,284,375
Commercial Services -- 4.1%
Sodexho Marriott Services, Inc. 429,000 12,441,000
Computers & Business Equipment -- 11.2%
Cisco Systems, Inc. (a) 125,000 11,507,812
Dell Computer Corporation (a) 240,000 22,275,000
33,782,812
Conglomerates -- 1.9%
Gillette Company 100,000 5,668,750
Containers & Packaging -- 1.2%
Sealed Air Corporation (a) 100,000 3,675,000
Drugs & Health Care -- 3.8%
Alternative Living Services, Inc. (a) 170,000 4,590,000
Centocor, Inc. (a) 190,000 6,887,500
11,477,500
Electronics -- 6.9%
Applied Materials, Inc. (a) 250,000 7,375,000
Intel Corporation 150,000 11,118,750
Level One Communications, Inc. (a) 96,000 2,256,000
20,749,750
Financial Services -- 11.5%
Charles Schwab Corporation 250,000 8,125,000
Franklin Resources, Inc. 170,000 9,180,000
Merrill Lynch & Company, Inc. 70,000 6,457,500
T. Rowe Price Associates, Inc. 290,000 10,893,125
34,655,625
Hotels & Restaurants -- 8.1%
Marriott International, Inc. 160,000 5,180,000
McDonald's Corporation 150,000 10,350,000
Mirage Resorts, Inc. (a) 425,000 9,057,813
24,587,813
Human Resources -- 3.2%
Robert Half International, Inc. (a) 175,000 $ 9,778,125
Industrial Machinery -- 1.1%
Illinois Tool Works, Inc. 50,000 3,334,375
Insurance -- 2.4%
20th Century Industries 256,000 7,344,000
Leisure & Entertainemnt -- 7.3%
Pixar, Inc. (a) 300,000 18,112,500
Speedway Motorsports, Inc. (a) 155,000 3,962,188
22,074,688
Retail -- 3.5%
Fred Meyer, Inc. (a) 250,000 10,625,000
Software -- 7.8%
i2 Technologies, Inc. (a) 250,000 8,781,250
Ims Health, Inc. 15,000 892,500
Microsoft Corporation (a) 120,000 13,005,000
Transaction Systems Architects, Inc. (a) 20,000 770,000
23,448,750
Transportation -- 3.3%
Kansas City Southern Industries, Inc. 200,000 9,925,000
Total Common Stocks
(cost $226,004,188) 290,196,313
Preferred Stock -- 0.7%
Sealed Air Corporation
(cost $2,809,847) 50,000 2,100,000
Repurchase Agreement -- 1.8%
State Street Bank and Trust Company, 4.75%, due 07/01/98, (collateralized by
$4,755,000 par value U.S. Treasury Bond, 7.25%, due 05/15/16, with a
value of
$5,586,383, cost $5,476,000) $5,476,000 5,476,000
Total Investments -- 98.5%
(cost $234,290,035)* 297,772,313
Other Assets Less Liabilities -- 1.5% 4,674,374
Net Assets -- 100.0% $302,446,687
(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 $68,060,945 and $4,578,667,
respectively. Net unrealized appreciation for tax purposes is $63,482,278.
See notes to financial statements
page 9 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER VALUE FUND
Portfolio Manager: Christopher J. Bonavico
Fund Performance
The Transamerica Premier Value Fund was launched on March 31, 1998. During its
first months of operation, the Fund has concentrated on building a portfolio of
companies currently selling below their potential earning power which are on
track toward realizing that power. The Fund also looks for companies with sound
underlying businesses that are simply out of favor.
Portfolio Manager Comments
Today's market has become very narrow in its leadership. Advancing stocks have
risen to record valuations leaving little margin for error in their underlying
businesses. The Fund seeks to invest in companies that are taking decisive steps
toward creating value for shareholders. Although our strategy sometimes leads us
toward companies which are not current stock market favorites, we aim to invest
in good businesses --- not cheap stocks. Sodexho Marriott, the under-followed
spin-off from Marriott Hotels Corporation, is currently the Fund's largest
holding. The firm is the dominant supplier of facilities management services to
businesses, hospitals, and schools. Sodexho should benefit strongly from the
trend to outsource such services to the low-cost experts. Another holding,
McDonald's, has been out of favor with investors recently. Its management is
taking prompt action to better deliver value to consumers and to expand its
global franchise. Nike is another example. Nike underperformed for a two-year
period, as investors worried that the company had lost its ability to grow
further. We believe management is taking the proper steps to position the
company, both here and overseas, to grow new product categories, enhance brand
strength, and add operating excellence.
Portfolio Asset Mix
Going Forward
We have a positive long-term outlook for the equity markets. Increased savings
from the maturing American workforce will continue to seek the best available
investment returns which likely will lead to lower interest rates and support
stock prices. Companies showing increasing profits should perform well in this
environment and will be the focus of the Fund.
We will continue to focus our research on companies which operate sound
businesses and have the management expertise to assume future leadership. By
investing with proven managers who have a vision for creating value, we believe
that the Fund is well positioned for long-term gains.
Thank you for your continued investment in the Transamerica Premier Value Fund.
comparison of change in value of a $10,000 investment in transamerica
premier value fund with the s&p 500 index**
Total Returns
As of June 30, 1998 Since Inception* One Year
Premier Value Fund (2.90%) N/A
S&P 500 Index 3.30% 30.16%
Premier Value Fund ($9,710 at 6/30/98)
S&P 500 Index ($10,330 at 6/30/98)
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.
* March 31, 1998
** Hypothetical illustration of $10,000 invested at inception (March 31, 1998),
assuming reinvestment of dividends and capital gains at net asset value through
June 30, 1998. 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
return of the Fund would have been lower.
transamerica premier funds 1998 Semi-annual report page 10
<PAGE>
TRANSAMERICA PREMIER VALUE FUND
Schedule of Investments --- June 30, 1998 (Unaudited)
Market
Shares Value
Shares or
Principal Market
Amount Value
Common Stocks -- 86.8%
Apparel & Textiles -- 1.4%
Nike, Inc. 2,500 $ 121,719
Auto Repair Centers -- 3.1%
Midas, Inc. 14,000 281,750
Business Services -- 6.8%
Cognizant Corporation 5,500 346,500
First Data Corporation 8,000 266,500
613,000
Chemicals -- 8.9%
Minerals Technologies, Inc. 8,000 407,000
Morton International, Inc. 9,000 225,000
Solutia, Inc. 6,000 172,125
804,125
Commercial Services -- 7.2%
Pharmaceutical Marketing Services, Inc. 5,000 71,250
Sodexho Marriott Services, Inc. 20,000 580,000
651,250
Drugs & Health Care -- 1.9%
ChiRex, Inc. 10,000 175,625
Electric Utilities -- 7.1%
Ipalco Enterprises, Inc. 6,000 266,625
Niagara Mohawk Power Corporation (a) 25,000 373,437
640,062
Electrical Equipment -- 2.6%
Raychem Corporation 8,000 236,500
Electronics -- 6.4%
Applied Materials, Inc. (a) 7,000 206,500
Intel Corporation 5,000 370,625
577,125
Financial Services -- 3.5%
Metris Companies Inc. 5,000 318,750
Food & Beverages -- 2.2%
Vlasic Foods International, Inc. (a) 10,000 201,250
Hotels & Restaurants -- 6.9%
McDonald's Corporation 5,000 345,000
Mirage Resorts Incorporated (a) 13,000 277,062
622,062
Industrial Machinery -- 2.0%
Cuno, Inc. (a) 8,500 183,813
Insurance -- 8.7%
20th Century Industries 10,000 286,875
Alleghany Corporation 800 186,600
Chicago Title Corporation 2,400 110,850
General Re Corporation 800 202,800
787,125
Office Furnishings & Supplies -- 2.4%
Standard Register Company 6,000 $ 212,250
Publishing -- 3.6%
Dun & Bradstreet Corporation 9,000 325,125
Real Estate -- 2.7%
Cca Prison Realty Trust 8,000 245,000
Retail -- 5.3%
Fred Meyer, Inc. (a) 8,000 340,000
Hollywood Entertainment Corporation 10,000 135,625
475,625
Transportation -- 4.1%
Kansas City Southern Industries, Inc. 7,500 372,188
Total Common Stocks
(cost $7,810,148) 7,844,344
Preferred Stocks -- 9.6%
Containers & Glass -- 2.5%
Crown Cork & Seal Company, Inc. 5,000 223,750
Containers & Packaging -- 2.3%
Sealed Air Corporation 5,000 210,000
Industrial -- 2.2%
Corning Delaware LP 3,500 197,750
Transportation -- 2.6%
Union Pacific Capital Trust 5,000 232,500
Total Preferred Stocks
(cost $1,064,802) 864,000
Repurchase Agreement -- 7.4%
State Street Bank and Trust Company
4.75%, due 07/01/98, (collateralized
by $585,000 par value U.S. Treasury Bond,
7.25%, due 05/15/16, with a value of
$687,284, cost $671,000), $671,000 671,000
Total Investments -- 103.8%
(cost $9,545,950)* 9,379,344
Liabilities In Excess Of Other Assets -- (3.8)% (343,817)
Net Assets -- 100.0% $ 9,035,527
(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 $433,255 and $599,861,
respectively. Net unrealized depreciation for tax purposes is $(166,606).
See notes to financial statements
page 11 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER INDEX FUND
Portfolio Manager: Lisa L. Hansen
Fund Performance
The Transamerica Premier Index Fund earned a total return of 17.70% for the
six-month period ended June 30, 1998, in comparison to a total return of 17.71%
for the S&P 500 Index. Since its inception in October 1995, the Fund has earned
an annualized total return of 29.39%, relative to a 29.77% total return for the
S&P 500. For the one-year period ended June 30, 1998, the Fund was ranked fifth
among the 77 S&P 500 Index funds tracked by Lipper Analytical Services, Inc.
This performance is consistent with the Fund's long-term goal of tracking
overall stock market returns, as measured by the S&P 500 Index.
Portfolio Manager Comments
The equity markets provided excellent returns to investors during the first half
of 1998. To achieve its goal, the Fund invests in a basket of stocks that mirror
the S&P 500 Index, as well as in fixed-income investments and stock index
futures designed to duplicate the total return of the S&P 500 over time.
Investment in the Fund is an efficient and effective strategy for investors who
want to be sure they are invested in leading companies in the US economy.
While the Fund may not match the S&P 500 precisely, in general, when the S&P 500
is rising, the value of shares in the Fund should also rise. Conversely, when
the Index is declining, the value of Fund shares should also decline. Our
diligent attention to constant readjustments in the composition of the S&P 500,
especially during the current highly charged merger and acquisition environment,
has proven particularly advantageous.
Since the companies in the S&P 500 Index are the leaders in American business,
their competitive advantages should allow them to continue to earn returns in
excess of their rivals here and overseas. While the economic turmoil in Asia
will likely have a moderate impact on overall business activity, leading
American companies should continue to represent attractive investment
opportunities.
Portfolio Asset Mix
Going Forward
We expect continued positive returns for high-quality equity investments for the
rest of 1998. While the earnings performance of individual companies is
important to stock valuations, the long-term trend of low global inflation and
interest rates continues to support higher overall equity market values.
Thank you for your continued investment in the Transamerica Premier Index Fund.
comparison of change in value of a $10,000 investment in transamerica
premier index fund with the s&p 500 index**
Total Returns Annualized
As of June 30, 1998 Since Inception* One Year
Premier Index Fund 29.39% 30.04%
S&P 500 Index 29.77% 30.16%
Premier Index Fund ($20,300 at 6/30/98)
S&P 500 Index ($20,465 at 6/30/98)
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, 1998.
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 return of
the Fund would have been lower.
transamerica premier funds 1998 Semi-annual report page 12
<PAGE>
TRANSAMERICA PREMIER INDEX FUND
Schedule of Investments --- June 30, 1998 (Unaudited)
Market
Shares Value
Market
Shares Value
Common Stocks -- 72.3%
Advertising -- 0.1%
Omnicom Group, Inc. 380 $ 18,953
Aerospace & Defense -- 1.0%
Boeing Company 2,418 107,752
Computer Sciences Corporation 314 20,096
General Dynamics Corporation 306 14,229
Lockheed Martin Corporation 477 50,502
Northrop Grumman Corporation 129 13,303
Raytheon Company, Class B 581 34,352
Trw, Inc. 313 17,098
United Technologies Corporation 585 54,112
311,444
Agricultural Biotechnology -- 0.1%
Pioneer Hi-Bred International, Inc. 606 25,073
Agricultural Machinery -- 0.1%
Deere & Company 631 33,364
Agricultural Operations -- 0.0%
Agribrands International Inc. (a) 25 756
Air Travel -- 0.3%
Amr Corporation (a) 400 33,300
Delta Air Lines, Inc. 146 18,870
Southwest Airlines Company 526 15,583
US Airways Group, Inc. (a) 168 13,314
81,067
Aluminum -- 0.2%
Alcan Aluminum Ltd. 548 15,139
Aluminum Company of America 427 28,155
Reynolds Metals Company 164 9,174
52,468
Apparel & Textiles -- 0.2%
Fruit of the Loom, Inc. (a) 185 6,140
Liz Claiborne, Inc. 176 9,196
Nike, Inc. 697 33,935
Reebok International Ltd. (a) 128 3,544
Russell Corporation 92 2,777
Springs Industries, Inc. 49 2,260
VF Corporation 310 15,965
73,817
Auto Parts -- 0.2%
Dana Corporation 248 13,268
Eaton Corporation 188 14,617
Echlin, Inc. 150 7,359
Genuine Parts Company 444 15,346
50,590
Automobiles -- 1.2%
Chrysler Corporation 1,768 99,671
Ford Motor Company 2,718 160,362
General Motors Corporation 1,800 120,263
Paccar Inc. 189 9,875
390,171
Banking -- 5.5%
Banc One Corporation 1,345 75,068
Bank of New York Company, Inc. 959 58,199
BankAmerica Corporation 1,766 152,649
BankBoston Corporation 714 39,716
Bankers Trust New York Corporation 190 $ 22,052
BB&T Corporation 290 19,611
Citicorp 1,158 172,832
Comerica, Inc. 412 27,295
Fifth Third Bancorp 559 35,217
First Chicago NBD Corporation 771 68,330
First Union Corporation 2,204 128,383
Fleet Financial Group, Inc. 640 53,440
Huntington Bancshares, Inc. 330 11,055
J.P. Morgan & Company, Inc. 452 52,941
Keycorp 1,122 39,971
Mbna Corporation 1,216 40,128
Mellon Bank Corporation 639 44,490
Mercantile Bancorporation, Inc. 300 15,113
National City Corporation 728 51,688
Nationsbank Corporation 2,425 185,513
Northern Trust Corporation 275 20,969
Norwest Corporation 1,756 65,631
PNC Bank Corporation 810 43,588
Providian Financial Corporation 229 17,991
Republic New York Corporation 272 17,119
Summit Bancorp 440 20,900
SunTrust Banks, Inc. 544 44,234
Synovus Financial Corporation 510 12,113
US Bancorp 1,848 79,464
Wachovia Corporation 485 40,983
Wells Fargo & Company 228 84,132
1,740,815
Broadcasting -- 0.3%
Clear Channel Communications, Inc. (a) 200 21,825
Comcast Corporation 693 28,131
Viacom, Inc. (a) 879 51,202
101,158
Building Construction -- 0.1%
Centex Corporation 140 5,285
Fluor Corporation 204 10,404
Kaufman & Broad Home Corporation 85 2,699
Pulte Corporation 120 3,585
21,973
Business Services -- 0.8%
Automatic Data Processing, Inc. 708 51,596
Cognizant Corporation 509 32,067
Deluxe Corporation 200 7,162
Ecolab, Inc. 316 9,796
First Data Corporation 1,085 36,144
H & R Block, Inc. 253 10,658
HBO & Company 960 33,840
Humana, Inc. (a) 395 12,318
Interpublic Group Companies, Inc. 291 17,660
Laidlaw, Inc. (a) 734 8,946
R.R. Donnelley & Sons Company 366 16,745
Service Corporation International 574 24,610
261,542
Chemicals -- 1.6%
Air Products And Chemicals, Inc. 538 21,520
B.F. Goodrich Company 129 6,402
Dow Chemical Company 607 58,689
E.I. du Pont de Nemours and Company 2,717 202,756
See notes to financial statements
page 13 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER INDEX FUND (CONTINUED) Schedule of Investments --- June 30,
1998 (Unaudited)
Market
Shares Value
Market
Shares Value
Eastman Chemical Company 193 $ 12,014
Fmc Corporation (a) 90 6,137
Great Lakes Chemical Corporation 153 6,034
Hercules, Inc. 258 10,610
Mallinckrodt, Inc. 179 5,314
Monsanto Company 1,424 79,566
Morton International, Inc. 351 8,775
Nalco Chemical Company 162 5,690
Octel Corporation (a) 38 755
Ppg Industries, Inc. 455 31,652
Praxair, Inc. 357 16,712
Rohm & Haas Company 158 16,422
Sigma-Aldrich Corporation 242 8,500
Union Carbide Corporation 322 17,187
W.R. Grace & Company (a) 212 3,617
518,352
Commercial Services -- 0.0%
Sodexho Marriott Services, Inc. 76 2,204
Communication Services -- 1.9%
Lucent Technologies, Inc. 3,160 262,872
MediaOne Group, Inc. 1,279 56,196
Northern Telecom Limited 1,246 70,711
Sbc Communications, Inc. 4,452 178,080
Tele-Communications, Inc. (a) 1,015 39,014
606,873
Computers & Business Equipment -- 3.9%
3Com Corporation (a) 567 17,400
Apple Computer, Inc. (a) 302 8,664
Bay Networks, Inc. (a) 460 14,835
Cabletron Systems, Inc. (a) 361 4,850
Ceridian Corporation (a) 175 10,281
Cisco Systems, Inc. (a) 2,329 214,414
Compaq Computer Corporation 3,621 102,734
Data General Corporation (a) 95 1,419
Dell Computer Corporation (a) 1,868 173,374
Emc Corporation (a) 1,090 48,846
Gateway 2000, Inc. (a) 300 15,188
Hewlett-Packard Company 2,474 148,130
International Business Machines Corporation 2,619 300,694
Pitney Bowes, Inc. 724 34,843
Seagate Technology, Inc. (a) 544 12,954
Sun Microsystems, Inc. (a) 893 38,790
Tandy Corporation 290 15,388
Unisys Corporation (a) 420 11,865
Xerox Corporation 787 79,978
1,254,647
Conglomerates -- 1.4%
Aeroquip-Vickers Inc. 69 4,028
AlliedSignal, Inc. 1,374 60,971
Cbs Corporation 1,488 47,244
Cendant Corporation (a) 1,805 37,679
Gillette Company 2,622 148,635
Harcourt General, Inc. 175 10,413
Minnesota Mining & Manufacturing Company 1,016 83,503
Tenneco, Inc. 420 15,986
Textron, Inc. 409 29,320
437,779
Construction & Mining Equipment -- 0.3%
Case Corporation 176 $ 8,492
Caterpillar, Inc. 942 49,808
Dover Corporation 550 18,838
Foster Wheeler Corporation 98 2,101
Harnischfeger Industries, Inc. 116 3,284
82,523
Construction Materials -- 0.2%
Armstrong World Industries, Inc. 94 6,333
Masco Corporation 391 23,656
Owens Corning 127 5,183
Sherwin-Williams Company 416 13,780
48,952
Consumer Products -- 0.0%
American Greetings Corporation 182 9,271
Containers & Glass -- 0.1%
Ball Corporation 73 2,934
Bemis Company, Inc. 129 5,273
Crown Cork & Seal Company, Inc. 307 14,583
Owens-Illinois, Inc. (a) 350 15,663
Temple-Inland, Inc. 135 7,272
45,725
Containers & Packaging -- 0.0%
Sealed Air Corporation (a) 213 7,828
Cosmetics & Toiletries -- 0.1%
Alberto-Culver Company 136 3,944
Avon Products, Inc. 325 25,188
International Flavors & Fragances, Inc. 267 11,597
40,729
Drugs & Health Care -- 7.8%
Abbott Laboratories 3,794 155,080
Allergan Specialty Therapeutics, Inc. (a) 7 72
Allergan, Inc. 157 7,281
Alza Corporation 203 8,780
American Home Products Corporation 3,074 159,080
Amgen, Inc. 645 42,167
Bausch & Lomb, Inc. 138 6,917
Baxter International Inc. 666 35,839
Becton, Dickinson & Company 305 23,676
Biomet, Inc. 276 9,125
Bristol-Myers Squibb Company 2,442 280,677
C.R. Bard, Inc. 139 5,291
Cardinal Health, Inc. 258 24,188
Columbia / Hca Healthcare Corporation 1,622 47,240
Crescenco Pharmaceuticals Corporation (a) 10 127
Eli Lilly & Company 2,686 177,444
Guidant Corporation 348 24,817
Healthsouth Corporation (a) 792 21,137
Johnson & Johnson 3,236 238,655
Manor Care, Inc. 153 5,880
Medtronic, Inc. 1,140 72,675
Merck & Company, Inc. 2,963 396,301
Pfizer, Inc. 3,112 338,236
Pharmacia & Upjohn, Inc. 1,228 56,642
Schering-Plough Corporation 1,773 162,451
St. Jude Medical, Inc. (a) 191 7,031
Tenet Healthcare Corporation (a) 700 21,875
See notes to financial statements
transamerica premier funds 1998 Semi-annual report page 14
<PAGE>
Market
Shares Value
Market
Shares Value
United Healthcare Corporation 436 $ 27,686
US Surgical Corporation 155 7,072
Warner-Lambert Company 1,974 136,945
2,500,387
Electric Utilities -- 1.6%
Ameren Corporation 333 13,237
American Electric Power Company 455 20,646
Baltimore Gas & Electric Company 358 11,120
Carolina Power & Light Company 371 16,092
Central & South West Corporation 508 13,653
Cinergy Corporation 383 13,405
Consolidated Edison Company of New York, Inc. 572 26,348
Dominion Resources, Inc. 436 17,767
Dte Energy Company 352 14,212
Duke Energy Corporation 875 51,844
Edison International 1,052 31,100
Entergy Corporation 563 16,186
FirstEnergy Corporation 371 11,408
Fpl Group, Inc. 447 28,161
Gpu, Inc. 291 11,003
Houston Industries, Inc. 844 26,059
Niagara Mohawk Power Corporation (a) 351 5,243
Northern States Power Company 334 9,560
P P & L Resources, Inc. 392 8,894
Pacificorp 714 16,154
Peco Energy Company 539 15,732
PG & E Corporation 1,007 31,783
Public Service Enterprise Group, Inc. 582 20,043
Southern Company 1,634 45,240
Texas Utilities Company 585 24,351
Unicom Corporation 523 18,338
517,579
Electrical Equipment -- 2.8%
Boston Scientific Corporation (a) 442 31,658
Cooper Industries, Inc. 273 14,998
Emerson Electric Company 1,085 65,506
General Electric Company 8,052 732,732
General Signal Corporation 118 4,248
Johnson Controls, Inc. 201 11,495
Millipore Corporation 108 2,943
National Service Industries, Inc. 114 5,800
Raychem Corporation 214 6,326
W.W. Grainger, Inc. 248 12,354
888,060
Electronics -- 2.0%
Advanced Micro Devices, Inc. (a) 327 5,579
Amp, Inc. 531 18,253
Andrew Corporation (a) 216 3,902
Applied Materials, Inc. (a) 874 25,783
Dsc Communications Corporation (a) 282 8,460
EG & G, Inc. 114 3,420
Harris Corporation 192 8,580
Honeywell, Inc. 309 25,821
Intel Corporation 3,986 295,462
Kla Tencor Corporation (a) 200 5,538
Lsi Logic Corporation (a) 327 7,541
Micron Technology, Inc. (a) 507 12,580
Motorola, Inc. 1,437 $ 75,532
National Semiconductor Corporation (a) 334 4,405
Perkin-Elmer Corporation 106 6,592
Rockwell International Corporation 524 25,185
Scientific-Atlanta, Inc. 188 4,771
Silicon Graphics, Inc. (a) 428 5,190
Tektronix, Inc. 121 4,280
Tellabs, Inc. (a) 434 31,084
Texas Instruments, Inc. 920 53,648
Thomas & Betts Corporation 112 5,516
637,122
Financial Services -- 3.6%
American Express Company 1,165 132,810
Associates First Capital Corporation 787 60,501
Beneficial Corporation 129 19,761
Capital One Financial Corporation 150 18,637
Charles Schwab Corporation 711 23,108
Chase Manhattan Corporation 2,108 159,153
Countrywide Credit Industries, Inc. 254 12,891
Equifax, Inc. 351 12,745
Federal Home Loan Mortgage Corporation 1,728 81,324
Federal National Mortgage Association 2,621 159,225
Franklin Resources, Inc. 600 32,400
Green Tree Financial Corporation 332 14,213
Household International, Inc. 741 36,865
Lehman Brothers Holdings Inc. 250 19,391
Merrill Lynch & Company, Inc. 834 76,938
Morgan Stanley Dean Witter & Co. 1,971 180,100
Slm Holding Corporation 400 19,624
State Street Corporation 422 29,329
SunAmerica, Inc. 450 25,846
The Bear Stearns Companies, Inc. 300 17,081
Washington Mutual, Inc. 637 27,670
1,159,612
Food & Beverages -- 4.0%
Archer-Daniels-Midland Company 1,384 26,815
Bestfoods 702 40,760
Campbell Soup Company 1,177 62,528
Coca-Cola Company 6,063 518,386
ConAgra, Inc. 1,180 37,391
General Mills, Inc. 389 26,598
H.J. Heinz Company 896 50,288
Hershey Foods Corporation 375 25,875
Kellogg Company 1,038 38,990
PepsiCo, Inc. 3,784 155,854
Quaker Oats Company 328 18,020
Ralston-Ralston Purina Group 258 30,138
Sara Lee Corporation 1,172 65,559
Sysco Corporation 874 22,396
Unilever NV and Plc 1,552 122,510
Vlasic Foods International, Inc. (a) 117 2,355
Wm. Wrigley Jr. Company 282 27,636
1,272,099
Gas & Pipeline Utilities -- 0.4%
Coastal Corporation 255 17,802
Columbia Gas System, Inc. 200 11,096
Consolidated Natural Gas Company 228 13,424
See notes to financial statements
page 15 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER INDEX FUND (CONTINUED) Schedule of Investments --- June 30,
1998 (Unaudited)
Market
Shares Value
Market
Shares Value
Eastern Enterprises 49 $ 2,101
Enron Corporation 666 36,006
Nicor, Inc. 121 4,855
Oneok, Inc. 67 2,672
People's Energy Corporation 84 3,244
Sonat, Inc. 209 8,073
The Williams Companies, Inc. 1,004 33,885
133,158
Gas Exploration -- 0.1%
Anadarko Petroleum Corporation 140 9,406
Apache Corporation 220 6,930
16,336
Gas Exploration And Distribution -- 0.2%
Burlington Resources, Inc. 430 18,516
Occidental Petroleum Corporation 785 21,195
Oryx Energy Company (a) 255 5,642
Union Pacific Resources Group, Inc. 561 9,853
55,206
Gold & Mining -- 0.2%
Barrick Gold Corporation 877 16,828
Battle Mountain Gold Company 529 3,142
Cyprus Amax Minerals Company 225 2,981
Freeport-McMoRan Copper & Gold, Inc. 489 7,427
Homestake Mining Company 345 3,579
Newmont Mining Corporation 370 8,741
Phelps Dodge Corporation 161 9,206
Placer Dome, Inc. 581 6,827
58,731
Hotels & Restaurants -- 0.6%
Darden Restaurants, Inc. 379 6,017
Hilton Hotels Corporation 591 16,843
Marriott International, Inc. 610 19,749
Mcdonald's Corporation 1,681 115,989
Mirage Resorts, Inc. (a) 400 8,525
Tricon Global Restaurants, Inc. (a) 378 11,978
Wendy's International, Inc. 301 7,073
186,174
Household Appliances & Products -- 1.6%
Black & Decker Corporation 217 13,237
Clorox Company 250 23,844
Colgate-Palmolive Company 712 62,656
Corning, Inc. 556 19,321
Maytag Corporation 252 12,443
Newell Company 386 19,228
Procter & Gamble Company 3,316 301,963
Rubbermaid, Inc. 376 12,478
Snap-On, Inc. 148 5,365
The Stanley Works 217 9,019
Tupperware Corporation 149 4,190
Whirlpool Corporation 180 12,375
496,119
Industrial Machinery -- 0.6%
Briggs & Stratton Corporation 66 2,471
Cincinnati Milacron, Inc. 88 2,140
Crane Company 109 5,293
Cummins Engine Company, Inc. 95 4,869
Illinois Tool Works, Inc. 584 $ 38,946
Ingersoll-Rand Company 396 17,449
Itt Industries, Inc. 289 10,801
Nacco Industries Inc. 21 2,714
Pall Corporation 289 5,924
Parker Hannifin Corporation 270 10,294
Thermo Electron Corporation (a) 350 11,966
Timken Company 152 4,683
Tyco International Ltd. 924 58,212
175,762
Insurance -- 3.2%
Aetna Life & Casualty Company 364 27,710
Allstate Corporation 1,080 98,887
American General Corporation 588 41,858
American International Group, Inc. 1,719 250,974
Aon Corporation 391 27,468
Chubb Corporation 425 34,159
Cigna Corporation 549 37,881
Cincinnati Financial Corporation 390 14,966
Conseco, Inc. 183 8,555
General Re Corporation 199 50,446
Hartford Financial Services Group, Inc. 288 32,940
Jefferson-Pilot Corporation 258 14,948
Lincoln National Corporation 251 22,935
Loews Corporation 283 24,656
Marsh & McLennan Companies, Inc. 564 34,087
Mbia, Inc. 216 16,173
Mgic Investment Corporation 318 18,146
Progressive Corporation Ohio 175 24,675
Safeco Corporation 306 13,904
St. Paul Companies, Inc. 562 23,639
Torchmark Corporation 346 15,830
Travelers Group, Inc. 2,756 167,083
Unum Corporation 347 19,259
1,021,179
Investment Companies -- 4.4%
Standard And Poor's Depositary Receipts 12,355 1,399,976
Leisure Time -- 0.6%
Brunswick Corporation 236 5,841
Harrah's Entertainment, Inc. (a) 249 5,789
King World Productions, Inc. 180 4,590
The Walt Disney Company 1,643 172,618
188,838
Liquor -- 0.3%
Adolph Coors Company 92 3,128
Anheuser-Busch Companies, Inc. 1,222 57,663
Brown-Forman Corporation 168 10,794
The Seagram Company Ltd. 906 37,089
108,674
Mobile Homes -- 0.0%
Fleetwood Enterprises, Inc. 35 1,400
Newspapers -- 0.4%
Dow Jones & Company, Inc. 234 13,045
Gannett Company, Inc. 684 48,607
Knight-Ridder, Inc. 231 12,719
New York Times Company 234 18,545
See notes to financial statements
transamerica premier funds 1998 Semi-annual report page 16
<PAGE>
Market
Shares Value
Market
Shares Value
Times Mirror Company 251 $ 15,782
Tribune Company 305 20,988
129,686
Non-Ferrous Metals -- 0.0%
Asarco, Inc. 104 2,314
Engelhard Corporation 350 7,087
Inco, Limited 435 5,927
15,328
Office Furnishings & Supplies -- 0.1%
Avery Dennison Corporation 256 13,760
Ikon Office Solutions, Inc. 315 4,587
Moore Corporation Ltd. 231 3,061
21,408
Oil -- 4.3%
Amerada Hess Corporation 226 12,275
Amoco Corporation 2,410 100,316
Ashland, Inc. 164 8,466
Atlantic Richfield Company 781 61,016
Chevron Corporation 1,586 131,737
Exxon Corporation 6,031 430,086
Kerr-McGee Corporation 121 7,003
Mobil Corporation 1,914 146,660
Pennzoil Company 113 5,721
Phillips Petroleum Company 638 30,744
Royal Dutch Petroleum Company 5,207 285,408
Sempra Energy 607 16,838
Sun Company, Inc. 181 7,025
Texaco, Inc. 1,316 78,549
Unocal Corporation 602 21,521
Usx-Marathon Group 698 23,950
1,367,315
Paper & Forest Products -- 0.6%
Boise Cascade Corporation 118 3,864
Champion International Corporation 233 11,461
Fort James Corporation 208 9,256
Georgia-Pacific Corporation 223 13,143
International Paper Company 722 31,046
Kimberly-Clark Corporation 1,355 62,161
Louisiana-Pacific Corporation 264 4,818
Mead Corporation 258 8,192
Potlatch Corporation 71 2,982
Stone Container Corporation 242 3,781
Union Camp Corporation 170 8,436
Westvaco Corporation 246 6,950
Weyerhaeuser Company 487 22,493
Willamette Industries, Inc. 268 8,576
197,159
Petroleum Services -- 0.5%
Baker Hughes, Inc. 368 12,719
Dresser Industries, Inc. 434 19,123
Halliburton Company 578 25,757
Helmerich & Payne, Inc. 120 2,670
McDermott International, Inc. 133 4,580
Rowan Companies, Inc. (a) 206 4,004
Schlumberger Ltd. 1,186 81,019
Western Atlas, Inc. 130 11,034
160,906
Photography -- 0.2%
Eastman Kodak Company 818 $ 59,765
Polaroid Corporation 109 3,876
63,641
Pollution Control -- 0.2%
Browning-Ferris Industries, Inc. 517 17,966
Laidlaw Environmental Services, Inc. (a) 394 1,428
Waste Management, Inc. 1,148 40,180
59,574
Publishing -- 0.4%
Dun & Bradstreet Corporation 414 14,956
Jostens, Inc. 93 2,220
Mcgraw-Hill Companies, Inc. 244 19,901
Meredith Corporation 133 6,243
Time Warner, Inc. 1,111 94,921
138,241
Railroads & Equipment -- 0.3%
Burlington Northern Santa Fe 356 34,955
Csx Corporation 519 23,614
Union Pacific Corporation 541 23,872
82,441
Retail -- 3.4%
Abercrombie & Fitch Company (a) 568 24,992
AutoZone, Inc. (a) 351 11,210
Circuit City Stores-Circuit City Group 237 11,109
Consolidated Stores Corporation (a) 250 9,063
Costco Companies, Inc. (a) 490 30,901
Cvs Corporation 634 24,686
Dayton Hudson Corporation 1,050 50,925
Dillard's, Inc. 275 11,395
Federated Department Stores, Inc. (a) 497 26,745
Gap, Inc. 1,027 63,289
Home Depot, Inc. 1,749 145,276
J.C. Penney Company, Inc. 566 40,929
Kmart Corporation (a) 1,133 21,810
Longs Drug Stores Corporation 97 2,801
Lowe's Companies, Inc. 804 32,612
May Department Stores Company 593 38,841
Mercantile Stores Company, Inc. 90 7,104
Nordstrom, Inc. 195 15,064
Pep Boys-Manny, Moe & Jack 149 2,822
Rite-Aid Corporation 484 18,180
Sears, Roebuck & Company 949 57,948
Supervalu, Inc. 157 6,967
Tjx Companies, Inc. 720 17,370
Toys "R" Us, Inc. (a) 678 15,975
Venator Group, Inc. 325 6,216
Wal-Mart Stores, Inc. 5,562 337,892
Walgreen Company 1,196 49,410
1,081,532
Retail Grocery -- 0.3%
Albertson's, Inc. 612 31,709
American Stores Company 712 17,221
Great Atlantic & Pacific Tea Company, Inc. 93 3,075
Kroger Company (a) 607 26,025
Winn-Dixie Stores, Inc. 367 18,786
96,816
See notes to financial statements
page 17 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER INDEX FUND (CONTINUED) Schedule of Investments --- June 30,
1998 (Unaudited)
Market
Shares Value
Shares or
Principal Market
Amount Value
Savings & Loan -- 0.1%
Golden West Financial Corporation 142 $ 15,096
H.F. Ahmanson & Company 268 19,028
34,124
Software -- 2.6%
Adobe Systems, Inc. 171 7,257
Ascend Communications, Inc. 450 22,303
Autodesk, Inc. 114 4,403
Computer Associates International, Inc. 1,323 73,509
Microsoft Corporation (a) 5,790 627,491
Novell, Inc. (a) 872 11,118
Oracle Corporation (a) 2,379 58,434
Parametric Technology Corporation (a) 654 17,740
Shared Medical Systems Corporation 58 4,260
826,515
Steel -- 0.1%
Allegheny Teldyne, Inc. 429 9,813
Armco, Inc. (a) 259 1,651
Bethlehem Steel Corporation (a) 273 3,395
Inland Steel Industries, Inc. 118 3,327
Nucor Corporation 213 9,798
Usx-Us Steel Group 205 6,765
Worthington Industries, Inc. 226 3,404
38,153
Telecommunication Equipment -- 0.0%
General Instrument Corporation (a) 286 7,776
Telecommunications -- 4.0%
AirTouch Communications, Inc. (a) 1,361 79,533
Alltel Corporation 656 30,504
Ameritech Corporation 2,680 120,265
AT&T Corporation 3,909 223,302
Bell Atlantic Corporation 3,818 174,196
BellSouth Corporation 2,412 161,905
Frontier Corporation 363 11,434
Gte Corporation 2,338 130,051
Mci Communications Corporation 1,660 96,488
Nextel Communications, Inc. (a) 600 14,925
Sprint Corporation 1,077 75,929
US West, Inc. 1,184 55,645
WorldCom, Inc. 2,089 101,186
1,275,363
Tires & Rubber -- 0.1%
Cooper Tire & Rubber Company 198 4,083
Goodyear Tire & Rubber Company 374 24,100
28,183
Tobacco -- 0.8%
Fortune Brands, Inc. 431 16,566
Philip Morris Companies, Inc. 6,007 236,526
UST, Inc. 460 12,420
265,512
Toys & Amusements -- 0.1%
Hasbro, Inc. 317 12,462
Mattel, Inc. 686 29,026
41,488
Transportation/Rail -- 0.1%
Norfolk Southern Corporation 933 27,815
Trucking & Freight Forwarding -- 0.1%
Fdx Corporation (a) 351 $ 22,025
Navistar International Corporation (a) 178 5,140
Ryder System, Inc. 190 5,997
33,162
Total Common Stocks
(cost $15,803,445) 23,026,624
Preferred Stock -- 0.0%
Sealed Air Corporation
(cost $4,039) 100 4,200
Commercial Paper -- 20.9% Brokerage -- 4.6% Merrill Lynch & Co., Inc.
5.520% 09/17/98 $1,500,000 $ 1,482,060
Commercial Financial Services -- 4.7%
General Electric Capital Corporation
5.500% 09/17/98 1,500,000 1,482,125
Oil -- 11.6%
Chevron Corporation
5.490% 09/10/98 3,750,000 3,709,397
Total Commercial Paper
(amortized cost $6,673,582) 6,673,582
U.S. Government Securities -- 1.1%
United States Treasury Bills*
(amortized cost $351,131)
5.030% 09/17/98 355,000 351,131 Repurchase Agreement -- 6.6%
State Street Bank & Trust Company,
4.75%, due 07/01/98, (collateralized
by $1,825,000 par value U.S. Treasury Bond,
7.25%, due 05/15/16, with a value of
$2,144,090, cost $2,097,000) 2,097,000 2,097,000
Total Investments -- 100.9%
(cost $24,929,197)** 32,152,537
Liabilities In Excess Of Other Assets -- (0.9)% (289,166)
Net Assets -- 100.0% $31,863,371
(a) Non-income producing security
* $351,131 market value of securities has been pledged as collateral for initial
margin for futures contracts.
** 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 $7,497,181 and $273,841,
respectively. Net unrealized appreciation for tax purposes is $7,223,340.
SCHEDULE OF FUTURES CONTRACTS
Number Contract Total Unrealized
of Contracts Description Contract Value Gain
31 S&P 500 $8,858,250 $ 271,563
September 1998 (Long)
See notes to financial statements
transamerica premier funds 1998 Semi-annual report page 18
<PAGE>
TRANSAMERICA PREMIER BALANCED FUND
Portfolio Manager: Gary U. Rolle'
Fund Performance
The Transamerica Premier Balanced Fund returned an impressive 16.05% for the
six-month period ended June 30, 1998, in comparison to the benchmark index (50%
S&P 500 Index/50% Lehman Brothers Government/Corporate Bond Index) return of
10.86% for the same period. For the one-year period ended June 30, 1998, the
Fund ranked second among the 373 balanced funds tracked by Lipper Analytical
Services, Inc. Since the Fund's inception in October 1995, it has achieved an
annualized return of 25.16% relative to the benchmark index return of 18.53%.
Portfolio Manager's Comments
The performance of the Fund continues to be driven by its stock holdings,
although we have recently increased our bond position to take advantage of the
favorable interest rate outlook.
We expect premier companies to continue to outperform. Therefore, we will
continue to focus on industries we find attractive, selecting companies with the
best management, business models, and com-petitive advantage. The technology,
financial services, health services, leisure, and consumer areas have all been
strong performers, which is reflected in our portfolio holdings.
Our long-term bond strategy has led us to focus on non-cyclical type companies
with strong upside credit momentum. These include the utilities, financial
services, broadcasting, and other industries which are less tied to the world
wide economy in terms of GDP growth. Two particularly attractive holdings in our
portfolio are Cleveland Electric and Niagara Mohawk. Both have recently
undergone radical restructuring and appear to be good candidates for ratings
upgrades.
Portfolio Asset Mix
Going Forward
As worldwide economic growth continues to be slowed by the economic crisis in
Asia, downward pressure on prices should intensify due to excess supplies of
consumer, industrial, and commodity goods. Slower unit volume growth and
declining prices will negatively impact the profitability of many companies.
However, our equity investment strategy will continue to take advantage of
growth opportunities available only to the best managed companies.
The bond market should do well throughout 1998, given slower economic growth and
very low inflation. Our bond selection strategy will focus on a spectrum of
stable credits as well as selected candidates for credit upgrades for their
capital gains as well as income potential.
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**
Total Returns Annualized
As of June 30, 1998 Since Inception* One Year
Premier Balanced Fund 25.16% 28.75%
50% Lehman Brothers Government/
Corporate Bond Index
50% S&P 500 Index 18.53% 20.64%
Premier Balanced Fund ($18,528 at 6/30/98)
50% Lehman Brothers Government/Corporate Bond Index 50% S&P 500 Index ($15,955
at 6/30/98)
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, 1998.
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 return of
the Fund would have been lower.
page 19 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER BALANCED FUND
Schedule of Investments --- June 30, 1998 (Unaudited)
Market
Shares Value
Principal Market
Amount Value
COMMON STOCKS -- 57.8%
Agricultural Biotechnology -- 2.1%
Pioneer Hi-Bred International, Inc. 22,500 $ 930,938
Business Services -- 3.0%
Cognizant Corporation 10,000 630,000
First Data Corporation 20,000 666,250
1,296,250
Chemicals -- 3.7%
Minerals Technologies, Inc. 15,000 763,125
Monsanto Company 15,000 838,125
1,601,250
Commercial Services -- 3.5%
Pharmaceutical Marketing Services, Inc. 4,000 57,000
Sodexho Marriott Services, Inc. 50,000 1,450,000
1,507,000
Computers & Business Equipment -- 9.7%
Cisco Systems, Inc. (a) 10,500 966,656
Dell Computer Corporation (a) 35,000 3,248,438
4,215,094
Conglomerates -- 2.1%
Gillette Company 16,000 907,000
Containers & Packaging -- 1.3%
Sealed Air Corporation (a) 15,000 551,250
Electronics -- 6.2%
Applied Materials, Inc. (a) 26,000 767,000
Intel Corporation 13,000 963,625
Level One Communications, Inc. (a) 40,000 940,000
2,670,625
Financial Services -- 5.3%
Charles Schwab Corporation 20,500 666,250
Franklin Resources, Inc. 30,000 1,620,000
2,286,250
Hotels & Restaurants -- 1.2%
Mirage Resorts, Inc. (a) 25,000 532,813
Leisure Time -- 4.5%
Pixar, Inc. (a) 20,000 1,207,500
The Walt Disney Company 7,000 735,437
1,942,937
Retail -- 5.2%
Fred Meyer, Inc. (a) 52,500 2,231,250
Retail Grocery -- 1.9%
Safeway, Inc. (a) 20,000 813,750
Software -- 5.2%
Microsoft Corporation (a) 16,000 1,734,000
Transaction Systems Architects, Inc. (a) 14,000 539,000
2,273,000
Transportation -- 2.9%
Kansas City Southern Industries, Inc. 25,000 1,240,625
Total Common Stocks
(cost $13,434,230) 25,000,032
Preferred Stock -- 0.8%
Sealed Air Corporation
(cost $459,066) 8,000 336,000
Corporate Bonds -- 29.6%
Advertising -- 1.3%
Valassis Communications, Inc.
9.550% 12/01/03 $ 500,000 $ 561,135
Broadcasting -- 2.6%
Time Warner, Inc.
9.125% 01/15/13 500,00 608,525
Viacom, Inc.
7.750% 06/01/05 500,000 532,725
1,141,250
Electric Utilities -- 6.7%
Cleveland Electric Illuminating Company
7.880% 11/01/17 500,000 545,755
Commonwealth Edison Company
7.000% 07/01/05 300,000 312,639
Niagara Mohawk Power Corporation
7.625% 10/01/05 1,000,000 1,004,240
Pennsylvania Power & Light Company
8.500% 05/01/22 500,000 546,750
Western Massachusetts Electric Company
6.875% 01/01/00 500,000 497,460
2,906,844
Finance & Banking -- 4.4%
General Motors Acceptance Corporation
7.375% 05/28/99 300,000 303,837
Key Bank, N.A.
7.125% 08/15/06 500,000 525,430
Mellon Bank Corporation
7.000% 03/15/06 300,000 312,900
Sears Roebuck Acceptance Corporation
7.260% 04/21/03 500,000 523,140
The Money Store, Inc.
8.375% 04/15/04 200,000 220,512
1,885,819
Financial Services -- 2.4%
Chase Manhattan Corporation
7.125% 03/01/05 500,000 522,125 Merrill Lynch & Company, Inc.
6.640% 09/19/02 500,000 510,940
1,033,065
Gas & Pipeline Utilities -- 1.9%
KN Energy, Inc.
6.650% 03/01/05 500,000 501,395
The Williams Companies, Inc.
7.500% 09/15/99 300,000 304,773
806,168
See notes to financial statements
transamerica premier funds 1998 Semi-annual report page 20
<PAGE>
Principal Market
Amount Value
Principal Market
Amount Value
Gas Exploration And Distribution -- 2.1%
Gulf Canada Resources Ltd.
8.250% 03/15/17 $ 390,000 $ 420,159
Occidental Petroleum Corporation
6.500% 04/01/05 500,000 499,995
920,154
Hotels & Restaurants -- 0.7%
Mirage Resorts, Inc.
6.750% 02/01/08 300,000 293,784
Industrial -- 2.4%
Stater Brothers Holdings, Inc.
9.000% 07/01/04 1,000,000 1,020,000
Retail -- 1.4%
Dayton Hudson Corporation
6.400% 02/15/03 300,000 300,918
Shoppers Food Warehouse Corporation
9.750% 06/15/04 275,000 304,562
605,480
Telecommunications -- 1.1%
MCI Communications Corporation
6.125% 04/15/12 500,000 498,140
Transportation -- 2.6%
Norfolk Southern Corporation
9.000% 03/01/21 500,000 636,830
Union Pacific Corporation
6.400% 02/01/06 500,000 495,720
1,132,550
Total Corporate Bonds
(cost $12,633,045) 12,804,389
U.S. Government Securities -- 7.2%
U.S. Treasury Bonds
6.375% 08/15/27 $1,200,000 $ 1,317,744
U.S. Treasury Notes
6.375% 08/15/02 400,000 412,248
5.875% 11/15/05 1,370,000 1,396,112
Total U.S. Government Securities
(cost $3,041,483) 3,126,104
Repurchase Agreement -- 6.2%
State Street Bank and Trust Company, 4.75%, due 07/01/98, (collateralized by
$2,320,000 par value U.S. Treasury Bond, 7.25%, due 05/15/16, with a
value of
$2,725,638, Cost $2,667,000) 2,667,000 2,667,000
Total Investments -- 101.6%
(cost $32,234,824)* 43,933,525
Liabilities In Excess Of Other Assets -- (1.6)% (703,795)
Net Assets -- 100.0% $ 43,229,730
(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 $12,134,199 and $435,498,
respectively. Net unrealized appreciation for tax purposes is $11,698,701.
See notes to financial statements
page 21 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER BOND FUND
Portfolio Manager: Susan A. Silbert
Fund Performance
The Transamerica Premier Bond Fund earned a total return of 4.40% for the
six-month period ended June 30, 1998. In comparison, the Lehman Brothers
Government/ Corporate Index returned 4.17% for the same period. Since its
inception in October, 1995, the Fund has realized an annualized return of 7.43%,
while the Index returned 7.87%.
Portfolio Manager Comments
During the first half of 1998 bond investors wrestled with fears that the strong
domestic economy would spark inflation and higher yields. Countering this
downward bias to bond prices were the periodic "flights to quality" by overseas
investors seeking refuge from the turmoil in Japan and other Asian countries. As
a result, the 30-year Treasury bond, which began the year at a 5.93% yield,
traded in a narrow range until early May. As the Asian crisis deepened and
prospects for an early resolution dimmed, both domestic and foreign bond buyers
bid Treasury prices higher and yields fell to 5.63% by the end of the second
quarter.
One of the factors that fueled the Fund's outperformance was our ability to
leverage our excellent credit research capabilities in choosing securities with
the potential to significantly outperform the market. One such top performer was
Ralph's, a West Coast supermarket operator which was rated less than investment
grade by national rating agencies. The Fund benefited when Ralph's was acquired
by Fred Meyer late last year, and this year the company tendered for the bonds
we held at a significant premium to our cost. In another case, we anticipated
that U.S. West would have to refinance existing debt to reorganize into separate
phone and cable companies. The Fund benefited when U.S. West also tendered for
bonds we held at a significant premium to our cost.
The Fund continues to maintain a significant position in the electric utility
industry, since we believe that ongoing deregulation will create opportunities
for selected companies to grow revenues and improve margins.
Portfolio Asset Mix
Going Forward
Looking towards the second half of 1998, weakness in U.S. export markets and
somewhat slower domestic demand are expected to keep inflation at low levels.
The U.S. should continue to serve as a safe haven for foreign capital because of
our stability and relatively attractive interest rates. In this scenario,
long-term bond yields continue to offer attractive real returns in excess of
inflation, and interest rates are expected to move lower over the balance of the
year.
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**
Total Returns Annualized
As of June 30, 1998 Since Inception* One Year
Premier Bond Fund 7.43% 12.17%
Lehman Brothers Government/
Corporate Bond Index 7.87% 11.28%
Premier Bond Fund ($12,176 at 6/30/98)
Lehman Brothers Government/
Corporate Bond Index ($12,313 at 6/30/98)
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, 1998.
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 return of
the Fund would have been lower.
transamerica premier funds 1998 Semi-annual report page 22
<PAGE>
TRANSAMERICA PREMIER BOND FUND
Schedule of Investments --- June 30, 1998 (Unaudited)
Principal Market
Amount Value
Shares or
Principal Market
Amount Value
Corporate Bonds -- 76.7%
Aerospace & Defense -- 6.7%
Boeing Company
8.625% 11/15/31 $400,000$ 511,512
Northrop Grumman Corporation**
7.000% 03/01/06 500,000 517,130
1,028,642
Air Travel -- 2.6%
Amr Corporation
9.750% 08/15/21 300,000 394,929
Automobiles -- 2.8%
General Motors Corporation
9.625% 12/01/00 400,000 431,896
Broadcasting -- 7.8%
CF Cable TV, Inc.
11.625% 02/15/05 240,000 270,218
Time Warner, Inc.
6.875% 06/15/18 400,000 401,560
Viacom, Inc.
7.750% 06/01/05 500,000 532,725
1,204,503
Electric Utilities -- 19.2%
Cleveland Electric Illuminating Company
9.500% 05/15/05 500,000 552,275
Commonwealth Edison Company
7.000% 07/01/05 300,000 312,639
Connecticut Light & Power Company
7.875% 06/01/01 500,000 511,800
Niagara Mohawk Power Corporation
7.750% 10/01/08 500,000 512,255
Pennsylvania Power & Light Company
8.500% 05/01/22 500,000 546,750
Philadelphia Electric Company
8.750% 04/01/22 500,000 529,475
2,965,194
Financial Services -- 3.5%
Morgan Stanley Dean Witter & Co.
8.875% 10/15/01 500,000 540,705
Gas Exploration And Distribution -- 9.2%
Burlington Resources, Inc.
9.125% 10/01/21 300,000 385,221 Gulf Canada Resources Ltd.
8.250% 03/15/17 500,000 538,665
Occidental Petroleum Corporation**
6.500% 04/01/05 500,000 499,995
1,423,881
Hotels & Restaurants -- 2.5%
Mirage Resorts, Inc.
6.750% 02/01/08 400,000 391,712 Multi Media -- 2.1% News
America Holdings, Inc.
7.750% 12/01/45 300,000 321,963
Retail -- 10.2%
Fred Meyer, Inc.
7.450% 03/01/08 500,000 503,340
K-Mart Corporation
8.125% 12/01/06 $ 500,000 $ 518,750
Shoppers Food Warehouse Corporation
9.750% 06/15/04 500,000 553,750
1,575,840
Telecommunications -- 2.8%
Bellsouth Capital Funding Corporation
7.120% 07/15/97 100,000 108,292
British Telecommunications Plc
9.625% 02/15/19 300,000 319,797
428,089
Transportation -- 7.3%
Norfolk Southern Corporation
9.000% 03/01/21 500,000 636,830
Union Pacific Corporation
6.400% 02/01/06 500,000 495,720
1,132,550
Total Corporate Bonds
(cost $11,548,236) 11,839,904
U.S. Government Agency Security -- 6.6%
Federal National Mortgage Association TBA
(cost $1,009,844)
7.000% 01/01/99 1,000,000 1,013,438
U.S. Government Securities -- 11.9%
U.S. Treasury Bonds
7.500% 11/15/16 750,000 900,352
6.125% 11/15/27 250,000 267,890
U.S. Treasury Notes
6.250% 06/30/02 650,000 666,354
Total U.S. Government Securities
(cost $1,731,314) 1,834,596
Preferred Stock -- 0.6%
Cendant Corporation
(cost $125,000) 2,500 93,594
Repurchase Agreement -- 9.7%
State Street Bank and Trust Company,
4.75%, due 07/01/98, (collateralized
by $1,300,000 par value U.S. Treasury Bond,
7.25%, due 05/15/16, with a value of
$1,527,297, cost $1,496,000) $1,496,000 1,496,000
Total Investments -- 105.5%
(cost $15,910,394)* 16,277,532
Liabilities In Excess Of Other Assets -- (5.5)% (845,099)
Net Assets -- 100.0% $15,432,433
* 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 $451,203 and $84,065,
respectively. Net unrealized appreciation for tax purposes is $367,138.
** Securities have been segregated as collateral for TBA security.
See notes to financial statements
page 23 transamerica premier funds 1998 Semi-annual report
<PAGE>
TRANSAMERICA PREMIER CASH RESERVE FUND
Portfolio Manager: Kevin J. Hickam
Fund Performance
The Transamerica Premier Cash Reserve Fund delivered excellent results during
the first half of 1998. The Fund ranked seventh among 298 money market funds for
the 12-month period ended June 30, 1998, as tracked by Lipper Analytical
Services, Inc.
The Fund's annualized yield (12-month return) as of June 30, 1998 was 5.53% in
comparison to the IBC Money Fund Report return of 5.08%. The seven-day current
and effective yields were 5.37% and 5.52%, respectively, as of June 30, 1998.
The Fund's annualized return since inception in October 1995 is 5.45%.
Portfolio Manager Comments
The economic strength of the first quarter raised concerns that inflation could
begin to head higher. Although they did not actually raise interest rates, the
Federal Reserve moved to a "tightening bias" in their monetary policy
deliberations (indicating that the next change in interest rates would be
higher). However, the impact of the Asian crisis spread during the second
quarter. With the U.S. economy beginning to slow, the Federal Reserve policy
remained on hold. With no movement from the Fed, interest rates remained nearly
unchanged for the first six months of 1998. The 30-day commercial paper rates
moved from 5.45% in January to 5.50% at the end of June.
The Fund will continue to focus on securities offering relative value in order
to provide our shareholders with safety, liquidity, and attractive yields.
Portfolio Asset Mix
Going Forward
The faltering economies in Asia and other parts of the developing world should
continue to impact the U.S. economy in the second half of the year. Declining
economic growth in these countries should manifest itself in lower demand for
U.S. exports and declining commodity prices. If economic growth moderates as
expected and inflation pressures remain constant, the Federal Reserve Board is
likely to leave interest rates unchanged.
Thank you for your continued investment in the Transamerica Premier Cash Reserve
Fund.
comparison of change in value of a $10,000 investment in transamerica premier
cash reserve fund with the ibc's money fund report**
Total Returns Annualized
As of June 30, 1998 Since Inception* One Year
Premier Cash Reserve Fund 5.45% 5.53%
The IBC's Money Fund Report(a) 5.00% 5.08%
Premier Cash Reserve Fund ($11,570 at 6/30/98) The IBC's Money Fund Report(a)
($11,435 at 6/30/98)
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. 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 certain other operating expenses for the Fund.
Otherwise, the current and effective yields would have been 4.91% and 5.03%,
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, 1998.
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 return of
the Fund would have been lower.
transamerica premier funds 1998 Semi-annual report page 24
<PAGE>
TRANSAMERICA PREMIER CASH FUND
Schedule of Investments --- June 30, 1998 (Unaudited)
Principal Amortized
Amount Cost
Principal Amortized
Amount Cost
Commercial Paper -- Domestic -- 88.8%
Agricultural Machinery -- 2.0%
Deere & Company
5.470% 09/03/98 $1,300,000 $ 1,287,358
Brokerage -- 5.1%
Merrill Lynch & Company, Inc.
5.410% 07/01/98 150,000 150,000
5.480% 08/05/98 2,050,000 2,039,078
5.520% 10/30/98 300,000 294,434
5.500% 01/14/99 875,000 848,665
3,332,177
Chemicals -- 4.9%
E. I. du Pont de Nemours and Company
5.480% 07/15/98 3,200,000 3,193,180
Commercial Financial Services -- 15.0%
Asset Securitization Cooperative Corporation
5.500% 08/06/98 725,000 721,013
5.510% 08/21/98 2,500,000 2,480,485
Associates Corporation of North America
5.490% 09/25/98 200,000 197,377
5.450% 10/01/98 3,200,000 3,155,431
General Electric Capital Corporation
5.410% 07/22/98 2,200,000 2,193,057
5.490% 11/24/98 220,000 215,102
5.490% 02/24/99 950,000 915,519
9,877,984
Consumer Financial Services -- 9.3%
Ford Motor Credit Company
5.510% 08/13/98 200,000 198,684
5.450% 11/24/98 425,000 415,606
5.450% 12/03/98 2,800,000 2,734,297
Motorola Credit Corporation
5.510% 09/11/98 1,300,000 1,285,674
USAA Capital Corporation
5.450% 07/24/98 1,500,000 1,494,777
6,129,038
Drugs & Health Care -- 5.0%
Abbott Laboratories
5.490% 07/08/98 3,300,000 3,296,477
Electric Utilities -- 5.0%
Duke Energy Corporation
5.480% 07/10/98 700,000 699,041
5.470% 07/24/98 2,600,000 2,590,914
3,289,955
Electrical Equipment -- 4.9%
Emerson Electric Company
5.500% 07/21/98 1,300,000 1,296,028
5.450% 10/30/98 2,000,000 1,963,364
3,259,392
Electronics -- 1.5%
Motorola, Inc.
5.530% 08/11/98 1,000,000 993,702
Finance & Banking -- 3.1%
John Deere Finance Ltd.
5.490% 10/15/98 700,000 688,685
5.450% 10/27/98 1,150,000 1,129,457
5.450% 11/24/98 250,000 244,474
2,062,616
Financial Services -- 9.6%
Caterpillar Financial Services
5.460% 11/02/98 3,100,000 3,041,699
Chevron Corporation
5.490% 08/18/98 $2,000,000 $ 1,985,360
5.490% 09/09/98 1,300,000 1,286,123
6,313,182
Food & Beverages -- 5.1%
Coca Cola Company
5.470% 08/05/98 1,900,000 1,889,896
5.480% 08/20/98 1,500,000 1,488,583
3,378,479
Insurance -- 4.9%
General Re Corporation
5.500% 08/25/98 2,900,000 2,875,632
5.480% 08/27/98 345,000 342,007
3,217,639
Technology -- 5.0%
IBM Credit Corporation
5.430% 08/27/98 1,000,000 991,403
5.420% 09/03/98 875,000 866,569
5.470% 10/14/98 1,100,000 1,082,450
5.470% 10/22/98 350,000 343,991
3,284,413
Telecommunications -- 3.3% BellSouth Telecommunications, Inc.
5.480% 07/23/98 1,700,000 1,694,307
5.490% 08/11/98 450,000 447,186
2,141,493
Utilities -- 5.0%
Consolidated Natural Gas Company
5.500% 07/10/98 3,300,000 3,295,463
Total Commercial Paper -- Domestic
(amortized cost $58,352,549) 58,352,548
Commercial Paper -- Foreign -- 4.7%
Toronto Dominion Holdings
5.420% 07/07/98 300,000 299,729
5.360% 08/18/98 2,800,000 2,779,989
Total Commercial Paper -- Foreign
(amortized cost $3,079,718) 3,079,718
Collateralized Loan Obligations -- 3.3%
Triangle Funding Limited
(amortized cost $2,200,000)
5.656% 07/15/98 2,200,000 2,200,000
U.S. Government Agency Security -- 3.0%
Federal National Mortgage Association
(amortized cost $1,999,849)
5.750% 12/10/98 2,000,000 $ 1,999,849
REPURCHASE AGREEMENT -- 0.8%
State Street Bank and Trust Company,
4.75%, due 07/01/98, (collateralized
by $485,000 par value U.S. Treasury Bond,
7.25%, due 05/15/16, with a value of
$569,799, cost $555,000) 555,000 555,000
Total Investments -- 100.6%
(amortized cost $66,187,115) 66,187,115
Liabilities in Excess of Other Assets-- (0.6)% (415,696)
Net Assets -- 100.0% $ 65,771,419
See notes to financial statements
page 25 transamerica premier funds 1998 Semi-annual report
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF ASSETS AND LIABILITIES
June 30, 1998 (Unaudited)
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Transamerica Transamerica
Premier Premier Premier Premier Premier Premier Premier Premier
Aggressive Small Company Equity Value Index Balanced Bond Cash Reserve
Growth Fund Fund Fund Fund Fund Fund Fund Fund
Assets
<S> <C> <C> <C> <C>
Investments, at cost $ 44,546,960 $ 26,546,432 $ 234,290,035 $
9,545,950 $ 24,929,197 $ 32,234,824 $ 15,910,394 $ 66,187,115
Investments, at value $ 55,672,500 $ 33,193,000 $ 297,772,313 $
9,379,344 $ 32,152,537 $ 43,933,525 $ 16,277,532 $ 66,187,115
Cash 972 1,120 524 237 581 915
663 676
Receivables:
Dividends and interest 11,743 10,625 102,873 8,421
25,958 267,262 204,210 32,700
Securities sold --- 2,778,316 6,017,544 ---
6,308 --- --- ---
Fund shares sold 3,466,362 1,492,291 1,612,584
2,687 81,388 134,251 694 562,876
Due from Administrator 826 3,237 --- 4,902
20,604 --- 1,408 25,044
Other receivables --- 12,206 4,790 --- 500
367 --- ---
Unamortized deferred registration fees --- --- --- 12,894
- --- --- --- ---
Prepaid expenses and other assets 626 719 9,224 ---
2,717 3,710 2,703 6,491
59,153,029 37,491,514 305,519,852 9,408,485
32,290,593 44,340,030 16,487,210 66,814,902
Liabilities
Payables:
Dividends payable --- --- --- --- ---
- --- 722 286,285
Securities purchased 1,101,755 --- 2,516,386
234,522 254,677 1,030,250 1,015,653 ---
Fund shares redeemed 154,669 642,917 136,522 100,803
39,368 --- --- 670,323
Advisory fees payable 31,670 20,196 200,075 5,475
7,714 26,014 7,604 19,280
Directors fees payable 525 397 6,493 268
928 1,117 458 1,754
Distribution fees payable 9,315 5,940 58,845 1,825
- --- 8,671 3,168 ---
Deferred registration fees --- --- --- 17,175
- --- --- --- ---
Variation margin payable --- --- --- ---
65,875 --- --- ---
Other accrued expenses 33,575 29,799 154,844 12,890 58,660
44,248 27,172 65,841
1,331,509 699,249 3,073,165 372,958
427,222 1,110,300 1,054,777 1,043,483
Total Net Assets $ 57,821,520 $ 36,792,265 $ 302,446,687 $ 9,035,527
$ 31,863,371 $ 43,229,730 $ 15,432,433 $ 65,771,419
Net Assets Consist Of:
Paid in capital $ 46,925,956 $ 29,998,638 $ 238,547,903 $ 9,258,018
$ 23,466,306 $ 30,725,267 $ 14,970,254 $ 65,771,419
Undistributed net investment
income (loss) (105,838) (73,604) (903,307) 11,656
177,589 130,164 47 ---
Accumulated net realized
gain (loss) on investments
and futures transactions (124,138) 220,663 1,319,813
(67,541) 724,573 675,598 94,994 ---
Net unrealized appreciation
(depreciation) of investments and
futures contracts 11,125,540 6,646,568 63,482,278
(166,606) 7,494,903 11,698,701 367,138 ---
Total Net Assets $ 57,821,520 $ 36,792,265 $ 302,446,687 $ 9,035,527
$ 31,863,371 $ 43,229,730 $ 15,432,433 $ 65,771,419
Shares outstanding 3,294,083 2,139,306 13,229,735
930,063 1,811,596 2,403,277 1,495,387 65,771,419
Net Asset Value Per Share $ 17.55 $ 17.20 $ 22.86 $ 9.71 $ 17.59 $
17.99 $ 10.32 $ 1.00
</TABLE>
See notes to financial statements
transamerica premier funds 1998 Semi-annual report page 26
<PAGE>
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
Six months ended June 30, 1998 (Unaudited)
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Transamerica Transamerica
Premier Premier Premier Premier Premier Premier Premier Premier
Aggressive Small Company Equity Value Index Balanced Bond Cash Reserve
Growth Fund Fund Fund Fund** Fund Fund Fund Fund
Investment Income
<S> <C> <C> <C> <C> <C> <C>
Interest income $ 66,265 $ 47,489 $ 317,293 $ 15,118 $ 190,191 $
449,539 $ 545,107 $ 1,677,010
Dividend income* 30,728 25,674 344,865 21,060 158,950
36,545 1,980 ---
Total Income 96,993 73,163 662,158 36,178 349,141
486,084 547,087 1,677,010
Expenses
Investment adviser fee 123,305 89,105 917,784 15,326 42,329
135,318 44,107 104,623
Transfer agent fees 38,934 29,586 197,169 4,118 35,638
38,917 20,341 64,786
Distribution fees 36,266 26,207 269,937 5,109 14,110
45,106 18,378 29,895
Custodian fees 13,459 13,462 89,196 7,061 52,036
21,138 13,772 27,839
Registration fees 23,769 19,875 33,487 1,782 7,264
11,760 6,720 15,007
Audit fees 1,421 423 18,842 427 4,921
3,085 1,298 3,970
Legal fees 936 844 5,808 245 1,638
2,037 1,286 4,061
Printing 1,266 913 9,321 184 887 958
214 1,981
Directors' fees and expenses 1,428 1,092 17,198 268
1,700 2,073 901 2,965
Amortization of deferred registration fees --- --- --- 4,281
- --- --- --- ---
Other expenses 1,782 1,816 6,726 300 1,480
1,502 919 3,110
Total expenses before waiver
and reimbursement 242,566 183,323 1,565,468 39,101
162,003 261,894 107,936 258,237
Reimbursed and waived expenses (39,735) (36,561) --- (14,579)
(126,659) --- (12,370) (183,497)
Net Expenses 202,831 146,762 1,565,468 24,522 35,344
261,894 95,566 74,740
Net Investment Income (Loss) (105,838) (73,599) (903,310)
11,656 313,797 224,190 451,521 1,602,270
Net Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on
investments and futures contracts (100,990) 407,656 1,319,813
(67,541) 742,440 816,554 314,439 ---
Change in net unrealized
appreciation (depreciation)
of investments and futures contracts 9,843,077 6,295,177
39,417,179 (166,606) 3,366,520 3,856,324 (127,787)
- ---
Net Realized and Unrealized
Gain (Loss) on Investments 9,742,087 6,702,833 40,736,992
(234,147) 4,108,960 4,672,878 186,652 ---
Net Increase (Decrease)
in Net Assets Resulting
From Operations $ 9,636,249 $ 6,629,234 $ 39,833,682 $
(222,491) $ 4,422,757 $ 4,897,068 $ 638,173 $ 1,602,270
*Net of foreign withholding taxes $ --- $ --- $ --- $ --- $
1,013 $ --- $ --- $ ---
**Fund commenced operations on March 31, 1998.
See notes to financial statements
page 27 transamerica premier funds 1998 Semi-annual report
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
Transamerica
Transamerica Premier Transamerica Premier Transamerica Premier Premier
Aggressive Growth Fund* Small Company Fund* Equity Fund Value Fund**
Period Ended Period Ended Period Ended Period Ended
June 30, 1998 Period Ended June 30, 1998 Period Ended June 30, 1998 Period
Ended June 30, 1998
(Unaudited) December 31, 1997(Unaudited) December 31, 1997(Unaudited) December
31, 1997 (Unaudited)
Increase in Net Assets
Operations:
Net investment income (loss) $ (105,838) $ (29,665) $ (73,599) $
(19,581) $ (903,310) $ (453,467) $ 11,656
Net realized gain (loss) on
investments and futures transactions (100,990) (5,049)
407,656 651,499 1,319,813 1,028,129 (67,541)
Net change in unrealized appreciation
(depreciation) of investments 9,843,077 1,282,463
6,295,177 351,391 39,417,179 18,094,426 (166,606)
Net increase (decrease) in net assets
resulting from operations 9,636,249 1,247,749
6,629,234 983,309 39,833,682 18,669,088 (222,491)
Dividends/Distributions
to Shareholders
Net investment income:
Investor class --- --- --- ---
- --- --- ---
Adviser class --- --- --- ---
- --- --- ---
Net realized gains:
Investor class (620) --- (830,079)
- --- (262,085) (762,199) ---
Adviser class --- --- --- ---
- --- --- ---
Net decrease in net assets resulting
from distributions (620) --- (830,079)
- --- (262,085) (762,199) ---
Fund Share Transactions 35,405,538 11,531,604 19,870,989
10,137,812 151,308,036 62,593,208 9,258,018
Net increase in net assets 45,041,167 12,779,353 25,670,144
11,121,121 190,879,633 80,500,097 9,034,527
Net Assets
Beginning of period 12,780,353 1,000 11,122,121
1,000 111,567,054 31,066,957 ---
End of period (1) $ 57,821,520 $ 12,780,353 $ 36,792,265 $
11,122,121 $ 302,446,687 $ 111,567,054 $ 9,035,527
(1) Includes undistributed net
investment income (loss) of: $ (105,838) $ --- $
(73,604) $ --- $ (903,307) $ --- $ 11,656
* Fund commenced operations on June 30, 1997.
** Fund commenced operations on March 31, 1998.
See notes to financial statements
transamerica premier funds 1998 Semi-annual report page 28
<PAGE>
Transamerica Premier Transamerica Premier Transamerica Premier Transamerica Premier
Index Fund Balanced Fund Bond Fund Cash Reserve Fund
Period Ended Period Ended Period Ended Period Ended
June 30, 1998 Year Ended June 30, 1998 Year Ended June 30, 1998 Year Ended
June 30, 1998 Year Ended
(Unaudited) December 31, 1997(Unaudited) December 31, 1997 (Unaudited) December
31, 1997 (Unaudited) December 31, 1997
Increase in Net Assets
Operations:
Net investment income (loss) $ 313,797 $ 400,539 $ 224,190 $ 176,260 $
451,521 $ 827,786 $ 1,602,270 $ 2,260,400
Net realized gain (loss) on
investments and futures transactions 742,440 1,010,570 816,554
16,730 314,439 (204,704) --- ---
Net change in unrealized appreciation
(depreciation) of investments 3,366,520 2,901,178 3,856,324
5,682,201 (127,787) 670,280 --- ---
Net increase in net assets resulting
from operations 4,422,757 4,312,287 4,897,068
5,875,191 638,173 1,293,362 1,602,270 2,260,400
Dividends/Distributions
to Shareholders
Net investment income:
Investor class (137,606) (398,741) (94,800) (175,465)
(452,244) (825,680) (1,602,270) (2,258,470)
Adviser class --- (400) --- (21) ---
(1,373) --- (1,930)
Net realized gains:
Investor class (979,088) (109,162) --- ---
- --- --- --- ---
Adviser class --- --- --- --- ---
- --- --- ---
Net decrease in net assets resulting
from distribution (1,116,694) (508,303) (94,800) (175,486)
(452,244) (827,053) (1,602,270) (2,260,400)
Fund Share Transactions 4,565,186 9,280,981 11,628,491
4,999,432 1,010,351 1,108,065 14,525,251 19,002,190
Net increase in net assets 7,871,249 13,084,965 16,430,759
10,699,137 1,196,280 1,574,374 14,525,251 19,002,190
Net Assets
Beginning of period 23,992,122 10,907,157 26,798,971
16,099,834 14,236,153 12,661,779 51,246,168 32,243,978
End of period (1) $ 31,863,371 $ 23,992,122 $ 43,229,730 $ 26,798,971
$ 15,432,433 $ 14,236,153 $ 65,771,419 $ 51,246,168
(1) Includes undistributed net
investment income of: $ 177,589 $ 1,398 $ 130,164 $ 774 $ 47
$ 770 $ --- $ ---
See notes to financial statements
page 29 transamerica premier funds 1998 Semi-annual report
<PAGE>
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Aggressive Growth Fund Transamerica Premier Small Company Fund
Period Ended Period Ended
June 30, 1998 Period Ended June 30, 1998 Period Ended
(Unaudited) December 31, 1997* (Unaudited) December 31, 1997*
Net Asset Value
Beginning of period $ 12.18 $ 10.00 $ 12.49 $ 10.00
Operations:
Net investment loss 1 (0.03) (0.03) (0.03) (0.02)
Net realized and unrealized gain on investments 5.40 2.21 5.15
2.51
Total from investment operations 5.37 2.18 5.12 2.49
Dividends/Distributions to Shareholders:
Net investment income --- --- --- ---
Net realized gains on investments --- --- (0.41) ---
Total dividends/distributions --- --- (0.41) ---
Net Asset Value
End of period $ 17.55 $ 12.18 $ 17.20 $ 12.49
Total Return2 44.09% 21.80% 41.00% 24.90%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 1.40% 1.40% 1.40% 1.40%
Before reimbursement/fee waiver 1.67% 2.08% 1.75% 2.12%
Net investment (loss), after reimbursement/fee waiver (0.73)% (0.59)% (0.70)%
(0.43)%
Portfolio turnover rate 3% 17% 24% 74%
Net assets, end of period (in thousands) $ 57,822 $ 12,780 $ 36,792 $ 11,122
</TABLE>
Annualized
* Funds commenced operations on June 30, 1997.
1 Net investment loss 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 loss per
share would have been $(0.04) and $(0.06) and $(0.05) and $(0.06), for the
Aggressive Growth Fund and the Small Company Fund, respectively, for the periods
ended June 30, 1998 and December 31, 1997.
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
transamerica premier funds 1998 Semi-annual report page 30
<PAGE>
<TABLE>
<CAPTION>
Transamerica Premier
Transamerica Premier Equity Fund Value Fund
Period Ended Period Ended
June 30, 1998 Year Ended Year Ended Period Ended June 30, 1998**
(Unaudited) December 31, 1997December 31, 1996 December 31, 1995* (Unaudited)
Net Asset Value
<S> <C> <C> <C> <C> <C>
Beginning of period $ 18.53 $ 12.65 $ 9.82 $ 10.00 $ 10.00
Operations:
Net investment income (loss)1 (0.07) (0.04) (0.06) 0.02
0.01
Net realized and unrealized gain (loss) 4.42 6.05 2.91 (0.20)
(0.30)
Total from investment operations 4.35 6.01 2.85 (0.18)
(0.29)
Dividends/Distributions To Shareholders:
Net investment income --- --- (0.02) --- ---
Net realized gains (0.02) (0.13) --- --- ---
Total dividends/distributions (0.02) (0.13) (0.02) ---
- ---
Net Asset Value
End of period $ 22.86 $ 18.53 $ 12.65 $ 9.82 $ 9.71
Total Return2 23.48% 47.51% 29.07% (1.80)% (2.90)%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 1.45% 1.49% 1.50% 0.25%
1.20%
Before reimbursement/fee waiver 1.45% 1.51% 1.95% 2.39%
1.91%
Net investment income (loss),
after reimbursement/fee waiver (0.84)% (0.71)% (0.66)% 1.51%
0.57%
Portfolio turnover rate 12% 13% 60% --- 7%
Net assets, end of period (in thousands) $ 302,447 $ 111,567 $ 30,454 $ 11,070 $
9,036
Annualized
* Fund commenced operations on October 2, 1995.
** Fund commenced operations on March 31, 1998.
1 Net investment income (loss) 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 $(0.07), $(0.04), $(0.10) and
$(0.01), for the Equity Fund for the periods ended June 30, 1998 and December
31, 1997, 1996 and 1995, respectively and $0.00 for the Value Fund for the
period ended June 30, 1998
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
page 31 transamerica premier funds 1998 Semi-annual report
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Index Fund
Period Ended
June 30, 1998 Year Ended Year Ended Period Ended
(Unaudited) December 31, 1997December 31, 1996 December 31, 1995*
Net Asset Value
Beginning of period $ 15.49 $ 11.96 $ 10.59 $ 10.00
Operations:
Net investment income 1 0.18 0.32 0.27 0.06
Net realized and unrealized gain (loss) 2.56 3.60 2.06 0.53
Total from investment operations 2.74 3.92 2.33 0.59
Dividends/Distributions to Shareholders:
Net investment income (0.08) (0.32) (0.33) ---
Net realized gains (0.56) (0.07) (0.63) ---
Total dividends/distributions (0.64) (0.39) (0.96) ---
Net Asset Value
End of period $ 17.59 $ 15.49 $ 11.96 $ 10.59
Total Return2 17.70% 33.14% 22.33% 5.90%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 0.25% 0.25% 0.35% 0.25%
Before reimbursement/fee waiver 1.15% 1.57% 2.29% 4.12%
Net investment income (loss), after reimbursement/fee waiver 2.22% 2.31% 2.48%
2.70%
Portfolio turnover rate 16% 11% 94% 4%
Net assets, end of period (in thousands) $ 31,863 $ 23,992 $ 10,814 $ 6,934
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 $0.11 $0.14, $0.06 and ($0.03) for the Index Fund for
the periods ended June 30, 1998 and December 31, 1997, 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
transamerica premier funds 1998 Semi-annual report page 32
<PAGE>
Transamerica Premier Balanced Fund
Period Ended
June 30, 1998 Year Ended Year Ended Period Ended
(Unaudited) December 31, 1997December 31, 1996 December 31, 1995*
Net Asset Value
Beginning of period $ 15.54 $ 11.57 $ 10.23 $ 10.00
Operations:
Net investment income1 0.10 0.11 0.14 0.06
Net realized and unrealized gain (loss) 2.39 3.97 1.40 0.17
Total from investment operations 2.49 4.08 1.54 0.23
Dividends/Distributions to Shareholders:
Net investment income (0.04) (0.11) (0.20) ---
Net realized gains --- --- --- ---
Total dividends/distributions (0.04) (0.11) (0.20) ---
Net Asset Value
End of period $ 17.99 $ 15.54 $ 11.57 $ 10.23
Total Return2 16.05% 35.38% 15.28% 2.30%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 1.45% 1.45% 1.45% 0.25%
Before reimbursement/fee waiver 1.45% 1.62% 1.94% 2.12%
Net investment income (loss), after reimbursement/fee waiver 1.24% 0.83% 1.34%
3.12%
Portfolio turnover rate 19% 23% 19% 16%
Net assets, end of period (in thousands) $ 43,230 $ 26,799 $ 16,041 $ 12,084
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 $0.10, $0.09, $0.09 and $0.02 for the Balanced Fund
for the periods ended June 30, 1998 and December 31, 1997, 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
page 33 transamerica premier funds 1998 Semi-annual report
<PAGE>
FINANCIAL HIGHLIGHTS (CONTINUED)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Bond Fund
Period Ended
June 30, 1998 Year Ended Year Ended Period Ended
(Unaudited) December 31, 1997December 31, 1996 December 31, 1995*
Net Asset Value
Beginning of period $ 10.19 $ 9.86 $ 10.37 $ 10.00
Operations:
Net investment income1 0.31 0.62 0.56 0.16
Net realized and unrealized gain (loss) 0.13 0.33 (0.46) 0.32
Total from investment operations 0.44 0.95 0.10 0.48
Dividends/Distributions to Shareholders:
Net investment income (0.31) (0.62) (0.61) (0.11)
Net realized gains --- --- --- ---
Total dividends/distributions (0.31) (0.62) (0.61) (0.11)
Net Asset Value
End of period $ 10.32 $ 10.19 $ 9.86 $ 10.37
Total Return2 4.40% 9.99% 1.16% 4.82%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 1.30% 1.30% 1.30% 0.25%
Before reimbursement/fee waiver 1.47% 1.64% 1.81% 1.93%
Net investment income (loss), after reimbursement/fee waiver 6.14% 6.25% 5.66%
6.55%
Portfolio turnover rate 84% 99% 7% 19%
Net assets, end of period (in thousands) $ 15,432 $ 14,236 $ 12,553 $ 11,827
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 $0.30, $0.58, $0.50 and $0.12 for the Bond Fund for
the periods ended June 30, 1998 and December 31, 1997, 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
transamerica premier funds 1998 Semi-annual report page 34
<PAGE>
Transamerica Premier Cash Reserve Fund
Period Ended
June 30, 1998 Year Ended Year Ended Period Ended
(Unaudited) December 31, 1997December 31, 1996 December 31, 1995*
Net Asset Value
Beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
Operations:
Net investment income1 0.03 0.05 0.05 0.01
Net realized and unrealized gain --- --- --- ---
Total from investment operations 0.03 0.05 0.05 0.01
Dividends/Distributions to Shareholders:
Net investment income (0.03) (0.05) (0.05) (0.01)
Net realized gains --- --- --- ---
Total dividends/distributions (0.03) (0.05) (0.05) (0.01)
Net Asset Value
End of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
Total Return2 2.70% 5.48% 5.34% 1.39%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 0.25% 0.25% 0.25% 0.25%
Before reimbursement/fee waiver 0.86% 0.95% 1.09% 1.37%
Net investment income (loss), after reimbursement/fee waiver 5.36% 5.35% 5.21%
5.55%
Portfolio turnover rate --- --- --- ---
Net assets, end of period (in thousands) $ 65,771 $ 51,246 $ 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, $0.05, $0.04 and $0.01 for the Cash Reserve
Fund for the periods ended June 30, 1998 and December 31, 1997, 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
page 35 transamerica premier funds 1998 Semi-annual report
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
June 30, 1998
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, management investment
company. The Company is composed of eight Funds: Transamerica Premier Aggressive
Growth Fund (the "Aggressive Growth Fund") which is non-diversified,
Transamerica Premier Small Company Fund (the "Small Company Fund"), Transamerica
Premier Equity Fund (the "Equity Fund"), Transamerica Premier Value Fund (the
"Value Fund"), Transamerica Premier Index Fund (the "Index Fund"), Transamerica
Premier Balanced Fund (the "Balanced Fund"), Transamerica Premier Bond Fund (the
"Bond Fund"), and Transamerica Premier Cash Reserve Fund (the "Cash Reserve
Fund") (collectively referred to as the "Funds"). For information on investment
objectives and strategies, please refer to the Funds' prospectus.
Prior to April 30, 1997, each Fund 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), 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 corresponds primarily 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 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 Value Fund, the Index Fund,
the Balanced Fund, the Growth Fund and the Small Company Fund are declared and
paid annually. Each Fund generally 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 their taxable
income. Therefore, no
transamerica premier funds 1998 Semi-annual report page 36
<PAGE>
Federal income or excise tax provision is required. For Federal income tax
purposes, the Bond Fund has capital loss carryforwards of $14,741 expiring in
2003 and $204,704 expiring in 2005. For Federal income tax purposes, the
Balanced Fund has capital loss carryforwards of $26,024 expiring in 2003,
$11,380 expiring in 2004, and $103,552 expiring in 2005.
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. The annual fee for the Funds are as follows:
First Next In Excess of
Fund $1 Billion $1 Billion $2 Billion
Aggressive Growth Fund 0.85% 0.82% 0.80%
Small Company Fund 0.85% 0.82% 0.80%
Equity Fund 0.85% 0.82% 0.80%
Value Fund 0.75% 0.72% 0.70%
Index Fund 0.30% 0.30% 0.30%
Balanced Fund 0.75% 0.72% 0.70%
Bond Fund 0.60% 0.57% 0.55%
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 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) which together exceed a specified percentage of the
average daily net assets of that Fund. These waivers and subsidies may be
terminated at any time without notice. The specified percentages are as follows:
Fund-Investor Shares
Aggressive Growth Fund 1.40%
Small Company Fund 1.40%
Equity Fund 1.50%
Value Fund 1.20%
Index Fund 0.25%
Balanced Fund 1.45%
Bond Fund 1.30%
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 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 six months ended June 30,
1998, the Funds expensed aggregate fees of $27,625 to all directors who are not
affiliated persons of the Adviser.
Certain directors and officers of the Company are also directors and officers of
the Adviser and other affiliated Transamerica entities.
page 37 transamerica premier funds 1998 Semi-annual report
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
June 30, 1998 (continued)
As of June 30, 1998, Transamerica Corporation and its affiliates held the
following percentages of outstanding shares:
Fund
Aggressive Growth Fund 19.79%
Small Company Fund 29.33%
Equity Fund 17.72%
Value Fund 53.17%
Index Fund 73.56%
Balanced Fund 54.58%
Bond Fund 89.52%
Cash Reserve Fund 57.56%
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. For the Investor Shares, there is an
annual 12b-1 distribution fee of 0.25% of the average daily net assets, except
for the Index Fund and the Cash Reserve Fund, which pay a distribution fee of
0.10% of the average daily net assets. On November 1, 1997, TSSC agreed to waive
the distribution fees for the Cash Reserve Fund.
4. SECURITY TRANSACTIONS
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the six months ended June 30, 1998 were as follows:
<TABLE>
<CAPTION>
U.S. Proceeds U.S.
Government from Government
Purchases Purchases Sales Sales
<S> <C> <C> <C> <C>
Aggressive Growth Fund $ 30,047,299 $ --- $ 759,676 $ ---
Small Company Fund 16,083,297 --- 4,522,217 ---
Equity Fund 172,087,347 --- 24,366,120 ---
Value Fund 9,348,291 --- 405,800 ---
Index Fund 3,761,858 --- 3,335,861 ---
Balanced Fund 17,410,477 --- 6,433,046 ---
Bond Fund 10,743,199 3,033,906 8,886,248 $ 3,041,913
5. CAPITAL STOCK TRANSACTIONS
At June 30, 1998, there were two billion shares of $0.001 par value
stock authorized. The tables below summarize the transactions in each of the
Funds capital stock for the periods indicated for the Investor Class of each
Fund.
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund Authorized Shares --- 60,000,000
Six Months Ended Period Ended
June 30, 1998 December 31, 1997*
Shares Amount Shares Amount
Capital stock sold 3,137,043 $ 49,309,357 1,182,281 $
13,130,142
Capital stock issued
upon reinvestment
of dividends
and distributions 33 574 --- ---
Capital stock redeemed (892,233) (13,904,393) (133,141)
(1,598,538)
Net increase 2,244,843 $ 35,405,538 1,049,140 $ 11,531,604
TRANSAMERICA PREMIER
SMALL Company fund Authorized Shares --- 60,000,000
Six Months Ended Period Ended
June 30, 1998 December 31, 1997*
Shares Amount Shares Amount
Capital stock sold 2,012,504 $ 31,699,730 1,477,867 $
17,273,937
Capital stock issued
upon reinvestment
of dividends and
distributions 43,130 737,948 --- ---
Capital stock redeemed (806,700) (12,566,689) (587,595)
(7,136,125)
Net increase 1,248,934 $ 19,870,989 890,272 $ 10,137,812
*Fund commenced operations on June 30, 1997.
TRANSAMERICA PREMIER EQUITY FUND Authorized Shares --- 100,000,000
Six Months Ended Year Ended
June 30, 1998 December 31, 1997
Shares Amount Shares Amount
Capital stock sold 9,791,285 $ 206,163,599 4,549,326 $
80,027,236
Capital stock issued
upon reinvestment
of dividends
and distributions 11,230 254,056 39,406 729,460
Capital stock redeemed (2,593,741) (55,109,619) (975,133)
(17,534,999)
Net increase 7,208,774 $ 151,308,036 3,613,599 $ 63,221,697
transamerica premier funds 1998 Semi-annual report page 38
<PAGE>
TRANSAMERICA PREMIER VALUE FUND Authorized Shares --- 50,000,000
Period Ended
June 30, 1998**
Shares Amount
Capital stock sold 1,011,251 $ 10,052,799
Capital stock issued
upon reinvestment of
dividends and distributions --- ---
Capital stock redeemed (81,188) (794,781)
Net increase 930,063 $ 9,258,018
** Fund commenced operations on March 31, 1998.
TRANSAMERICA PREMIER INDEX FUND Authorized Shares - 60,000,000
Six Months Ended Year Ended
June 30, 1998 December 31, 1997
Shares Amount Shares Amount
Capital stock sold 290,898 $ 4,992,117 695,991 $ 10,118,205
Capital stock issued
upon reinvestment
of dividends
and distributions 62,199 1,098,599 35,103 506,892
Capital stock redeemed (90,232) (1,525,530) (86,530) (1,248,940)
Net increase 262,865 4,565,186 644,564 $ 9,376,157
TRANSAMERICA PREMIER BALANCED FUND Authorized Shares --- 60,000,000
Six Months Ended Year Ended
June 30, 1998 December 31, 1997
Shares Amount Shares Amount
Capital stock sold 943,582 $ 16,200,359 455,997 $ 6,756,401
Capital stock issued
upon reinvestment
of dividends
and distributions 5,211 90,831 12,231 174,166
Capital stock redeemed (270,377) (4,662,699) (129,262)
(1,870,703)
Net increase 678,416 $ 11,628,491 338,966 $ 5,059,864
TRANSAMERICA PREMIER BOND FUND Authorized Shares - 60,000,000
Six Months Ended Year Ended
June 30, 1998 December 31, 1997
Shares Amount Shares Amount
Capital stock sold 134,009 $ 1,374,167 132,704 $ 1,318,618
Capital stock issued
upon reinvestment
of dividends
and distributions 43,713 447,805 83,092 820,341
Capital stock redeemed (79,149) (811,621) (92,679) (925,179)
Net increase 98,573 $ 1,010,351 123,117 $ 1,213,780
TRANSAMERICA PREMIER
CASH RESERVE FUND Authorized Shares --- 510,000,000
Six Months Ended Year Ended
June 30, 1998 December 31, 1997
Shares Amount Shares Amount
Capital stock sold 45,548,460 $ 45,548,460 43,510,804 $
43,510,804
Capital stock issued
upon reinvestment
of dividends
and distributions 1,298,096 1,298,096 2,249,117
2,249,117
Capital stock redeemed (32,321,305) (32,321,305) (26,554,372)
(26,554,372)
Net increase 14,525,251 4,525,251 19,205,549 $ 19,205,549
</TABLE>
6. SUBSEQUENT EVENTS Effective June 30, 1998, the Transamerica Premier High
Yield Bond Fund commenced operations. The High Yield Bond Fund offers
Institutional and Investor Classes of shares. Effective June 30, 1998, each Fund
(other than the Transamerica Premier High Yield Bond Fund) offered A Class and M
Class shares, available through brokers.
page 39 transamerica premier funds 1998 Semi-annual report
<PAGE>
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)1998 Transamerica Securities Sales Corporation, Distributor
transamerica premier funds 1998 Semi-annual report page 40
Transamerica Securities Sales Corporation, Distributor
1-800-89-ASK-US (1-800-892-7587)
http://funds.transamerica.com
e-mail: [email protected]
TPF 287-798
<PAGE>
