Transamerica Premier Funds
1999 Semi-Annual Report
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 20
Transamerica Premier High Yield Bond Fund 23
Transamerica Premier Bond Fund 26
Transamerica Premier Cash Reserve Fund 28
Financial Statements
Statements of Assets and Liabilities 31
Statements of Operations 32
Statements of Changes in Net Assets 33
Financial Highlights 36
Notes to Financial Statements 46
Dear Fellow Shareholders
The New Millennium is almost here! With the excitement of a new century ahead of
us, I cannot help but reflect on the many changes and technological advances
that have occurred in the financial services industry over the last 100 years.
When it comes to the investment management business, one of the most significant
developments has been the growing popularity of mutual funds. Assets in mutual
funds have skyrocketed since the first mutual fund was established in 1924: o
From 1924 to 1945, mutual fund assets reached $1 billion, with 73 funds offered.
o By 1951, these numbers grew to $3.1 billion and 103 funds. o 1980 marked the
beginning of the longest bull market as mutual fund assets increased to $100
billion!
Contributing to this phenomenal growth was the rise of individual retirement
accounts in the 1980s. Assets hit record levels as mutual funds became
"household items," and the percentage of households investing in mutual funds
increased to 78%. By the end of 1998, assets surpassed $5 trillion and the total
number of mutual funds available to investors exceeded 7,000!
As a Transamerica Premier Funds shareholder, you are one of the many people who
have already taken advantage of the important benefits that mutual funds offer.
We are proud of the role that our funds play in helping you achieve your
investment goals -- whether it be retirement, a college education, or perhaps
the purchase of a new home. As always, we remain committed to providing you with
the professional investment management you need to keep your financial plan on
track.
Quality Professional Management
Beginning on page 4, this report details the performance of each Transamerica
Premier Fund. It showcases the investment management expertise of Transamerica
Investment Services (TIS), the investment adviser for the Premier Funds and a
company that has successfully managed institutional money for decades (For more
information from the Investment Adviser, please refer to the Investment Outlook
on page 2). Highlighted below are some of the impressive results that the
Premier Funds have achieved in recent years: o The Premier Equity, Index and
Balanced Funds hold the highly acclaimed five-star rating from Morningstar.1 o
The Premier Aggressive Growth and Small Company Funds are ranked in the top 10%
of 264 funds in the capital appreciation category and of 698 funds in the small
cap category, respectively, for the one-year period ended June 30, 1999,
according to Lipper Analytical Services, Inc.
In the pages that follow, the portfolio managers for each Fund have provided
some valuable insights into the Funds they manage, including some of the key
holdings in each portfolio. We have also included a complete list of the
holdings for each Fund, plus the percentages held within each sector.
Preparing for the New Millennium
In February, an announcement was made about the acquisition of Transamerica
Corporation by AEGON N.V., one of the world's leading international insurance
groups based in the Netherlands. A special Transamerica Premier Funds
shareholder meeting was held on June 16, 1999 to obtain approvals necessitated
by this acquisition. (The results are reported on page 52.) The acquisition was
completed on July 21, 1999. Joining forces with AEGON, the new Transamerica will
be better positioned to offer the range of financial products and services
necessary to meet your unique needs and goals.
On page 52, we provide additional information regarding the actions we have
taken with respect to the Year 2000 issue. As a courtesy to you, in December
1999, we plan to send a special Account Statement with your most current account
balance(s).
Our shareholder services department is committed to providing the highest level
of customer service. Information about the Premier Funds, or questions regarding
your account is available by calling 800-892-7587. If you would like to receive
a complimentary Shareholder Services Reference Guide, just give us a call. If
you prefer to reach us via e-mail, our address is:
[email protected].
Thank you for choosing to invest in the Transamerica Premier Funds.
Sincerely,
Nicki Bair
President
1 Morningstar proprietary ratings reflect historical risk-adjusted performance
and are subject to change each month, 5 stars is the highest rating,
representing the top 10% of funds in its broad asset class, 4 stars is the next
highest rating, representing the next 22.5% of funds in its broad asset class, 3
stars is the next highest rating, representing the next 35% of funds in its
broad asset class. Morningstar ratings are calculated from a fund's 3-year
average annual returns in excess of 90-day Treasury bill returns with
appropriate fee adjustments, and a risk factor that reflects funds performance
below 90-day Treasure bill returns. Past performance is no guarantee of future
results. Ratings are for the investor share class only, other classes may vary.
These are 3-year ratings as of 6/30/99 among 3,043 domestic equity funds.
Transamerica Investment Adviser Outlook
Forecasters have been sure that an economic slowdown was lurking just around the
corner for many quarters. And even if there was no slowdown, they predicted,
inflation would certainly rise. But as we've turned each new quarterly corner,
we've seen continued growth with low inflation. We believe that while GDP growth
may slow to the 3% range over the next two quarters, a weaker pace isn't likely
without more stringent tightening by the Federal Reserve or a substantial stock
market correction.
Consumer
Consumer spending is likely to continue, although not at the pace of recent
quarters. Although job growth and income gains remain strong, two important
sources of recent stimulus are now absent. The first is the annual boost to
consumers' cash flow from tax refunds in the first half of the year. The second
is the cash flow benefit derived from mortgage refinancings, which have declined
with this year's increase in interest rates.
Business
One of the strongest areas of the economy has been capital spending, which has
grown at an annual rate of well over 15% in the first half of the year. Spending
on communications equipment has skyrocketed, approaching the trillion-dollar
mark on an annual basis worldwide, as companies race to install more bandwidth
to increase the speed of voice and data transfers. The build-out of the
"information superhighway" over wireless, fiber optic, cable, and even copper
wire media is as significant as the construction of the nation-wide vehicle
highway system after World War II. Companies racing to install Y2K-compliant
systems have also boosted capital spending.
International
As the 1997 Asian economic collapse recedes into history, foreign economies are
recovering slowly. Canada, where growth has been slightly less strong than the
U.S., is the one exception. Growth rates are just beginning to accelerate in
Europe, where the economies of England, France, and Italy are gaining momentum.
However, indications of expansion in the largest economy, Germany, have been
elusive. It is unlikely that the Euro currency will find much support on its
own, since Euro currency governments have been preparing the world for a
lessening in fiscal discipline by tolerating wider deficit targets relative to
GDP.
China watchers are on alert due to the increasing potential for devaluation
caused by the slowdown of the Chinese domestic economy. Japan's economy has
apparently bottomed, and although real recovery may be underway, the extent is
difficult to assess due to government priming. Korea's economy, which turned the
corner early this year with a strong and ongoing rebound in industrial
production, has been a model for recoveries in the region.
The largest South American economies are suffering recession. Argentina is
likely to devalue its currency, and although the Brazilian economy may be on an
upswing, political tensions between the national government and local states
will no doubt slow its recovery. Despite Mexico's economy having been helped by
higher oil prices creating much needed foreign reserves, the country's banking
system remains in disarray, with domestic banks undercapitalized and unable to
lend.
Inflation
Despite strong growth, rising oil prices, and regional labor shortages,
inflation has recently been 2% or lower annually. The question is whether or not
there has been a secular change resulting in a "New Era Economy" characterized
by continued growth with low inflation. Although this has been our experience
over the past few quarters, it may have been caused by specific cyclical
factors: the strong dollar, deflation in emerging market commodities, and low
demand from sluggish foreign economies. If cyclical factors are solely
responsible, then better growth prospects overseas could mean a worsening
domestic inflation picture.
However, there is indeed a strong argument that we are moving towards longer
expansion cycles with very low inflation. The underlying factors contributing to
the low rate of inflation in the U.S. have not changed. Companies continue to
make improved productivity a top priority, reorganizing almost continually to
take advantage of new technologies. The new technologies themselves have pushed
the growth in productivity to levels that are quite remarkable at this stage of
an economic expansion cycle.
The move to e-commerce on the Internet has spawned new players, different ways
of competing, and changing cost structures. New technology has also spurred the
expansion of new production facilities, dropping capacity utilization rates to
cyclical lows. The high rate of corporate mergers and reorganizations has
resulted in a continuing high rate of employee layoffs that may help to explain
the restraint in wage rates. Low inflation itself has become a restraining
factor, since companies unable to pass on higher labor and material costs must
become more productive.
The globalization of business, now moving at a rapid pace over the Internet, has
helped to restrain inflation as well. The Internet enables international buyers
and sellers to circumvent the traditional, slower trading models of multiple
agents and lengthy communication times. Price spreads are narrowing as the
worldwide bidding process brings many prices down to marginal costs.
Furthermore, items with high labor content have received the most global
diversification. Wage-push inflation in one geographic region is met almost
immediately as the comparative advantage is transferred to another geographic
region along with the attendant transfer of revenues and wealth. Because the
leaders of the major labor unions in the G7 industrialized countries (U.S.,
Canada, Great Britain, France, Germany, Italy, and Japan) have a vested interest
in keeping production at home, there is likely to be continued significant
restraint on the international wage front. While inflation could temporarily
inch slightly higher, an overall rate in excess of 2% is unlikely this year.
Interest Rates
The ongoing vigilance of the Federal Reserve has also contributed to our
positive inflation outlook. In recent years, the Fed's job has become more
difficult due to the wealth effect created by high home prices and the soaring
stock market. In past cycles, rising interest rates had the potential to cause
recessions by slowing business growth, causing layoffs, and reducing retail
sales. Now, however, the impact of job losses on spending may be cushioned by
the enormous buildup in net worth. Over the past three years, household net
worth has soared by $9.4 trillion, accounting for 25% of the growth in GDP. This
raises the concern that more interest rate increases will be required to have a
material impact on the economy.
The potential for stimulus from tax cuts attractive to both Congress and the
Administration as the result of a budget surplus going into an election year may
also cushion the restrictive impact of higher interest rates. The Fed is not
likely to stop with a single interest rate move unless the economy slows or the
stock market sells off. The most likely action would be an additional 25 basis
point increase in the late summer or early fall. Concerns over possible
Y2K-related liquidity problems probably preclude Fed tightening any later in the
fourth quarter.
Long-term Treasury rates have moved a full percentage point higher this year.
This reflects bond buyers' concerns over strong growth and the potential for
another round of Fed tightening moves. These concerns aren't likely to be
allayed until economic growth actually slows noticeably.
At over 4%, real returns on long-term Treasury bonds are more than double the
rate of inflation. Nonetheless, a significant bond market rally is on hold with
long rates likely to remain in the range of 53/4% to 61/2% until it's clear that
the Fed's tighter policy moves have run their course.
Stock Market
Equity prices have risen to new highs as the Standard & Poor's 500 Stock Index
has gained over 12%. Relatively low interest rates and an improving profit
outlook for cyclical companies as well as continuing growth prospects among
high-tech companies have fueled investor enthusiasm. Profits for S&P 500
companies are expected to be up strongly in 1999: 10% for the full year, and
running at an annual rate of over 14% in the second half.
We remain positive in our long-term outlook for the equity market. Innovations
in computing, communications, and business practices should continue to create
productivity gains allowing corporate profits to continue to expand. Long-term
returns on capital should reach new, high levels rewarding investments in
innovation and technology made by well-managed companies with sound business
plans. At the same time, financial asset flows into the market from individuals
including aging Baby Boomers and from retirement plans have pushed valuation
levels to historic highs, a very real near-term concern.
Investment-grade bond returns pale in comparison to the high, double-digit
potential returns from equities. In this low inflation environment real estate
investments are also relatively unattractive.
The high equity valuations have a bubble aspect to them, due in part to the
rapid pace of innovation that makes these investments so attractive. While many
innovations will prove to be successful and profitable, many more will fail. It
can be difficult for investors to identify the successful ones and, once chosen,
to evaluate the unique long-term value of each one. The risk is that such
periods of rapid change can give rise to financial speculation. Some market
participants may become less discriminating about the long-term prospects of a
business and more motivated by the prospect for short-term gain. In other words,
greed is overcoming fear, leading to excessive valuation of some market sectors.
We believe that investment selection based on fundamental research is of
paramount importance in this environment. Despite our continued positive
long-term outlook for the equity market, we believe that overly generous
valuation levels may restrain near-term stock returns.
Transamerica Premier Aggressive Growth Fund
Portfolio Manager: Christopher J. Bonavico, Co-Manager: Daniel J. Prislin
Fund Performance
The Transamerica Premier Aggressive Growth Fund continues to perform well. For
the twelve month period ended June 30, 1999, the Fund (Investor Class) ranked in
the top 10% among 264 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, 1999 was 17.35%
in comparison to a 12.39% advance by the S&P 500 for the same period. Since its
inception on June 30, 1997, the Fund has earned an average annual total return
of 62.20%, while the S&P 500 has returned 26.41%.
Portfolio Manager Comments
We are pleased with the performance of the Premier Aggressive Growth Fund.
Knight/Trimark Group, Inc., the largest NASDAQ market maker, is now the Fund's
largest holding. The company provides an excellent example of stocks we seek to
own in the Fund. Benefiting from structural changes in the financial services
sector driven by the Internet, the company has effectively deployed technology,
allowing the company to become the dominant leader in a rapidly growing, highly
profitable industry. Amazon.com, also held in this portfolio, likewise has
invested in technology to gain huge advantages in the commercial market place.
The company is successfully expanding its product lines from books and music to
other broad line items, becoming a market leader in Internet-based
merchandising.
Portfolio Asset Mix
[pie chart goes here]
Going Forward
In today's business environment, economies of scale are becoming an increasingly
important advantage that allows companies to increase market share to surpass
their competitors in profitability. Both technology and the size of a company
can be used to effectively create economies of scale. Generally, the larger a
company, the more pricing power it can wield by adhering to the equation of
lower per unit costs combined with higher volume of sales. Many of the stocks in
this portfolio are well positioned for growth because of their effective use of
economies of scale.
We will continue to search for excellent companies that demonstrate sustainable
competitive advantages. Experience has shown us that at any one point in time,
only a few of these companies exist. Our goal is to continue in the effort to
identify these companies. Candidates that meet our rigorous selection criteria
will become substantial investments for the Fund.
For the period January 1, 1999 through August 6, 1999, Philip W. Treick was the
primary portfolio manager for this Fund. Christopher J. Bonavico, former
co-manager, then became the primary portfolio manager and Daniel J. Prislin
became the new co-manager.
Thank you for your continued interest in the Transamerica Premier Aggressive
Growth Fund.
[CHART]
comparison of change in value of a $10,000 investment in transamerica Premier
aggressive growth fund with the s&p 500 index**>< Total Returns Average Annual
As of June 30, 1999 Since Inception* One Year Investor Class 62.20% 49.91% Class
A 57.73% 41.88% Class M 60.90% 48.02% S&P 500 Index 26.41% 22.77%
Investor Class ($26,310 at 6/30/99) Class A ($24,878 at 6/30/99) Class M
($25,888 at 6/30/99) S&P 500 Index ($15,979 at 6/30/99)
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.
* Investor Class -- June 30, 1997. Class A and Class M -- June 30,
1998; average annual returns are based on the July 1, 1997 commencement date for
the Investor Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Schedule of Investments -- June 30, 1999 (Unaudited)
Market
Shares Value
COMMON STOCKS -- 97.7%
Aerospace & Defense -- 4.4%
Gulfstream Aerospace Corporationa 150,000 $10,134,375
Broadcasting -- 2.8%
Clear Channel Communications, Inc.a 95,500 6,583,531
Business Services -- 3.2%
First Data Corporation 153,500 7,511,906
Chemicals -- 2.8%
Monsanto Company 168,000 6,625,500
Commercial Services -- 6.9%
Quintiles Transnational Corporationa 381,927 16,040,934
Communication Services -- 8.6%
Covad Communications Group, Inc.a 144,000 7,677,000
Qwest Communications International, Inc.a 210,000 6,943,125
Redback Networks, Inc.a 44,000 5,524,750
20,144,875
Computers & Business Equipment -- 10.6%
Cisco Systems, Inc.a 97,000 6,250,437
Dell Computer Corporationa 287,500 10,637,500
EMC Corporationa 144,000 7,920,000
24,807,937
Diversified Operations -- 4.0%
Berkshire Hathaway, Inc., Class Ba 4,175 9,352,000
Drugs & Health Care-- 4.8%
Alterra Healthcare Corporationa 820,500 11,281,875
Electronics -- 7.9%
Applied Materials, Inc.a 131,500 9,714,563
Intel Corporation 144,500 8,597,750
18,312,313
Financial Services -- 8.9%
Knight/Trimark Group, Inc.a 346,000 20,868,125
Leisure & Entertainment -- 8.4%
Pixar, Inc.a 168,000 7,245,000
Speedway Motorsports, Inc.a 313,000 12,304,813
19,549,813
Retail -- 8.8%
Amazon.com, Inc.a 164,500 20,583,062
Software -- 12.8%
i2 Technologies, Inc.a 259,500 11,158,500
Microsoft Corporationa 105,500 9,514,781
ProBusiness Services, Inc.a 256,500 9,201,938
29,875,219
Transportation -- 2.8%
Kansas City Southern Industries, Inc. 100,500 $ 6,413,156
Total Common Stocks
(cost $155,515,683) 228,084,621
REPURCHASE AGREEMENT -- 2.1% State Street Bank and Trust Company, 4.00%, due
07/01/99, (collateralized by $4,550,000 par value U.S. Treasury Bond, 7.250%,
due 05/15/16, with a
value of $4,997,179, cost $4,895,000) $4,895,000 4,895,000
Total Investments-- 99.8%
(cost $160,410,683)* 232,979,621
Other Assets Less Liabilities-- 0.2% 448,370
Net Assets-- 100.0% $233,427,991
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 $80,229,926 and $7,660,988, respectively. Net
unrealized appreciation for tax purposes is $72,568,938.
See notes to financial statements
Premier Small Company Fund
Portfolio Manager: Christopher J. Bonavico, Co-Manager: Timothy S. Gaumer
Fund Performance
The Transamerica Premier Small Company Fund performed strongly during the first
half of 1999. For the one year period ended June 30, 1999, the Fund (Investor
Class) ranked fifth among 698 capital appreciation funds in the country,
according to Lipper Analytical Services.
The Fund's total return for the six-month period ended June 30, 1999 was 21.28%
in comparison to a 9.28% advance by the Russell 2000 Index for the same period.
Since its inception on June 30, 1997, the Fund has earned an average annual
total return of 65.25%, while the Russell 2000 Index has returned 8.74%.
Portfolio Manager Comments
We are very pleased with the performance of the Fund for the first half of 1999.
Many of the stocks in the Fund have performed extremely well, including some of
our Internet-related holdings. Despite superior performance, we continue to
monitor them extremely closely because of ongoing speculation associated with
Internet stocks in general. Some of our top performing stocks for the first half
include server hosting and data management solution provider Exodus
Communications, Inc., VeriSign, Inc., an online communications verification
service, and ChiRex, Inc., a fine chemical manufacturer with strong research,
development and manufacturing capabilities. Alterra Healthcare Corporation, a
stock in which we have a big investment, has come under pressure in recent
months. We continue to hold it, and purchased more of the stock when it declined
because we are confident of its long-term outlook.
Portfolio Asset Mix
[pie chart goes here]
Going Forward
The Transamerica Premier Small Company Fund will likely expand its holdings by
making additional new investments in the coming months. In selecting new stocks,
our emphasis will be on companies that are financing their growth through strong
internal cash flows. Our investment strategy will remain the same: to seek out
leading companies that are growing in their dominance over important niche
markets. We will also seek out management teams who have demonstrated an ability
to deliver value to their shareholders.
For the period January 1, 1999 through August 6, 1999, Philip W. Treick was the
primary portfolio manager for this Fund. Christopher J. Bonavico, former
co-manager, then became the primary portfolio manager and Timothy S. Gaumer
became the new co-manager.
Thank you for your continued investment in the Transamerica Premier Small
Company Fund.
[CHART]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
TRANSAMERICA PREMIER SMALL COMPANY FUND WITH THE RUSSELL 2000 INDEX** Total
Returns Average Annual As of June 30, 1999 Since Inception* One Year
Investor Class 65.25% 55.06%
Class A 60.71% 46.81%
Class M 63.92% 53.10%
Russell 2000 Index 8.74% 1.50%Investor Class ($27,308 at 6/30/99) Class A
($25,829 at 6/30/99) Class M ($26,868 at 6/30/99) Russell 2000 Index ($11,825 at
6/30/99) 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). The Russell 2000 Index does not reflect any
commissions or fees which would be incurred by an investor purchasing the
securities it represents.
* Investor Class -- June 30, 1997. Class A and Class M -- June 30,
1998; average annual returns are based on the July 1, 1997 commencement date for
the Investor Class. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Transamerica Premier Small Company Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Shares or Market
Principal Amount Value
COMMON STOCKS -- 96.3%
Auto Repair Centers -- 3.9%
Midas, Inc. 308,000 $ 8,739,500
Biological Products-- 4.5%
Millipore Corporation 247,000 10,018,938
Business Services -- 5.3%
Nielsen Media Research, Inc. 401,500 11,743,875
Chemicals-- 6.8%
Eco Soil Systems, Inc.a 932,000 5,009,500
Minerals Technologies, Inc. 182,200 10,169,037
15,178,537
Commercial Services -- 4.5%
Quintiles Transnational Corporationa 239,613 10,063,746
Communication Services -- 2.1%
Redback Networks, Inc.a 38,000 4,771,375
Drugs & Health Care -- 11.3%
Alterra Healthcare Corporationa 575,000 7,906,250
ChiRex, Inc.a 395,500 12,705,437
KeraVision, Inc.a 270,000 4,657,500
25,269,187
Electronics -- 4.6%
Level One Communications, Inc.a 208,000 10,179,000
Food & Beverages-- 2.3%
Dreyer's Grand Ice Cream, Inc. 340,000 5,142,500
Leisure & Entertainment -- 8.5%
Pixar, Inc.a 74,000 3,191,250
Speedway Motorsports, Inc.a 284,500 11,184,406
Vail Resorts, Inc.a 270,000 4,725,000
19,100,656
Retail -- 4.5%
Amazon.com, Inc.a 62,000 7,757,750
Hollywood Entertainment Corporationa 113,000 2,210,563
9,968,313
Software -- 18.7%
Banyan Systems, Inc.a 58,000 634,375
HNC Software, Inc.a 400,000 12,325,000
i2 Technologies, Inc.a 198,000 8,514,000
ProBusiness Services, Inc.a 303,000 10,870,125
Transaction Systems Architects, Inc.a 242,500 9,457,500
41,801,000
Technology -- 15.0%
Cymer, Inc.a 402,500 $ 10,062,500
Exodus Communications, Inc.a 100,000 11,993,750
VeriSign, Inc. a 133,000 11,471,250
33,527,500
Transportation -- 4.3%
C.H. Robinson Worldwide, Inc. 263,000 9,665,250
Total Common Stocks
(cost $150,424,154) 215,169,377
U.S. GOVERNMENT AGENCY SECURITY -- 7.5%
Student Loan Marketing Corporation
(cost $16,667,963) 4.400% 07/01/99$16,670,000 16,667,963
Total Investments -- 103.8%
(cost $167,092,117)* 231,837,340
Liabilities in Excess of Other Assets -- (3.8)% (8,467,889)
Net Assets-- 100.0% $223,369,451
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 $73,354,451 and $8,609,228,
respectively. Net appreciation for tax purposes is $64,745,223.
See notes to financial statements
Transamerica Premier Equity Fund
Portfolio Manager: Jeffrey S. Van Harte, Co-Manager: Gary U. Rolle
Fund Performance
The Premier Equity Fund performed extremely well in the first quarter,
surpassing the performance of the broad market substantially. In the second
quarter, the Fund met with challenges as volume in the equities market shifted
towards industrial and cyclical stocks, and away from many growth -oriented
issues held by the Fund. The Fund (Investor Class) generated a total return of
12.99% for the six-month period ended June 30, 1999, compared to a 12.39%
advance by the S&P for the same period. Since its inception in October 1995, the
Fund has earned an average annual return of 31.96% while the S&P 500 has
returned 27.86%.
Portfolio Manager Comments
The Premier Equity Fund invests largely in growth stocks that possess superior
capacity for significant long-term appreciation. We continue to hold these
positions and remain committed to our investment strategy, despite the market's
current focus on other sectors. A large portion of our portfolio is invested in
technology, which is undergoing a huge innovation cycle that is going to run for
years to come. As long-term investors, we will continue to hold the stocks that
comprise this well-chosen portfolio, with the conviction that they have a great
deal of solid performance yet to offer. Our outlook for the Fund remains
extremely positive, and we believe the merits of its holdings will be reflected
well in forthcoming quarters. Strong performers in the portfolio that have
demonstrated superior growth in recent months are data storage provider EMC
Corporation, the Gap, Inc., which we believe is becoming the Wal-Mart of the
retail apparel industry, and Knight/Trimark Group, Inc., the leading market
maker for online trading companies.
Portfolio Asset Mix
[Pie Chart]
Going Forward
The U.S. economy still appears to be extremely strong, although the rise in
interest rates does create a degree of concern going forward. However, we
certainly do not expect inflation to re-ignite in the near term. To the
contrary, we believe that the technological innovation our economy is now
benefiting from is deflationary for most industries, driving prices lower for
consumers. Companies such as those we have purchased for this portfolio are
extremely well positioned to benefit from this economic shift. The innovative
use of technology and the ability to take advantage of economies of scale
provide many of the companies held in this portfolio with tremendous advantages
over their competitors.
Thank you for your continued investment in the Transamerica Premier Equity Fund.
[CHART]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
TRANSAMERICA PREMIER EQUITY FUND WITH THE S&P 500 INDEX**
Total Returns Average Annual
As of June 30, 1999 Since Inception* One Year
Investor Class 31.96% 22.48% Class A 29.83% 15.97% Class M 31.00% 20.78% S&P 500
Index 27.86% 22.77% Investor Class ($28,276 at 6/30/99) Class A ($26,604 at
6/30/99) Class M ($27,515 at 6/30/99) S&P 500 Index ($25,124 at 6/30/99)
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.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30,
1998; average annual returns are based on the October 2, 1995 commencement date
for the Investor Class. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Transamerica Premier Equity Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Market
Shares Value
Shares or Market
Principal Amount Value
COMMON STOCKS -- 99.7%
Broadcasting -- 3.7%
Clear Channel Communications, Inc.a 200,000 $13,787,500
Business Services -- 4.6%
First Data Corporation 350,000 17,128,125
Chemicals -- 5.2%
Minerals Technologies, Inc. 175,000 9,767,187
Monsanto Company 240,000 9,465,000
19,232,187
Commercial Services -- 4.6%
Quintiles Transnational Corporationa 175,000 7,350,000
Sodexho Marriott Services, Inc. 500,000 9,593,750
16,943,750
Communication Services -- 3.2%
Qwest Communications International, Inc.a 360,000 11,902,500
Computers & Business Equipment -- 15.5%
Cisco Systems, Inc.a 300,000 19,331,250
Dell Computer Corporationa 600,000 22,200,000
EMC Corporationa 290,000 15,950,000
57,481,250
Diversified Operations -- 3.0%
Berkshire Hathaway, Inc., Class Ba 5,000 11,200,000
Drugs & Health Care -- 5.4%
Merck & Company, Inc. 150,000 11,100,000
Pfizer, Inc. 80,000 8,780,000
19,880,000
Electronics -- 8.4%
Applied Materials, Inc.a 250,000 18,468,750
Intel Corporation 210,000 12,495,000
30,963,750
Financial Services -- 13.7%
Charles Schwab Corporation 350,000 38,456,250
Knight/Trimark Group, Inc.a 200,000 12,062,500
50,518,750
Hotels & Restaurants -- 3.6%
McDonald's Corporation 320,000 13,220,000
Human Resources -- 2.1%
Robert Half International, Inc.a 300,000 7,800,000
Leisure & Entertainment -- 2.3%
Pixar, Inc.a 200,000 8,625,000
Retail-- 3.1%
Gap, Inc. 225,000 11,334,375
Retail Grocery -- 7.7%
Kroger Companya 600,000 $ 16,762,500
Safeway, Inc.a 240,000 11,880,000
28,642,500
Software -- 8.8%
IMS Health, Inc. 350,000 10,937,500
Microsoft Corporationa 240,000 21,645,000
32,582,500
Technology -- 0.9%
VeriSign, Inc.a 40,000 3,450,000
Transportation-- 3.9%
Kansas City Southern Industries, Inc. 225,000 14,357,813
Total Common Stocks
(cost $239,346,825) 369,050,000
REPURCHASE AGREEMENT -- 0.5% State Street Bank and Trust Company, 4.00%, due
07/01/99, (collateralized by $1,855,000 par value U.S. Treasury Bond, 7.250%,
due 05/15/16, with a
value of $2,037,311, cost $1,997,000) $1,997,000 1,997,000
Total Investments-- 100.2%
(cost $241,343,825)* 371,047,000
Liabilities in Excess of Other Assets-- (0.2)% (763,280)
Net Assets-- 100.0% $370,283,720
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 $139,697,267 and $9,994,092,
respectively. Net unrealized appreciation for tax purposes is $129,703,175.
See notes to financial statements
Transamerica Premier Value Fund
Portfolio Manager: Christopher J. Bonavico, Co-Manager: Jeffrey S. Van Harte
Fund Performance
The Transamerica Premier Value Fund (Investor Class) was launched on March 31,
1998. The Fund's investment strategy is to own under-followed or currently
out-of-favor names of fundamentally strong companies that our research indicates
are undergoing significant positive change. For the six-month period ended June
30, 1999, the Fund generated a 4.06% total return, compared to 12.39% for the
S&P 500 Index.
Portfolio Manager Comments
We are pleased with the holdings of the Premier Value Fund. In seeking out
undervalued companies that possess a sustainable competitive advantage, our
present research has led us to select a group of investment opportunities. Our
focus is on the business and the quality of management because we believe that
this focus will lead us to the highest returns on our investments.
Several stocks in the Fund have performed especially well over recent months.
Among the top performers, we take special note of Kroger Company, Level One
Communications, Inc., and Sealed Air Corporation. Kroger Company, recently
merged with Fred Meyer, Inc. creating a dominant retailer in the grocery
industry. We determined that the assets of each company could deliver strong
shareholder returns for many years. Level One Communications, Inc. manufactures
circuitry that allows data communications over existing voice telephone
networks. Intel Corporation recently acquired Level One Communications, Inc.
because of the unique and important role its products continue to play in the
Internet's development. Sealed Air Corporation is the Premier specialty
packaging company in the world. The creators of bubble wrap, Sealed Air
Corporation also owns patents on hundreds of other packaging products that have
special applications in a wide variety of growth industries, from food to
technology.
Portfolio Asset Mix
[Pie Chart]
Going Forward
We will continue to ask two important questions for investments in the Premier
Value Fund. First, how big can a company be? And second, can the company earn
strong returns while growing, or will its returns be competed away?
To find these special situations and unlock value for the shareholder, our focus
will be on finding excellent companies versus cheap stocks. Our research leads
us to companies that have a competitive edge over their peers and are run by top
notch management teams who maintain that edge. Through rigorous research, we
will endeavor to find companies with superior growth and returns prospects. And
when we find these rare opportunities -- invest for the long term. Thank you for
your continued investment in the Transamerica Premier Value Fund.
[Chart]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
TRANSAMERICA PREMIER VALUE FUND WITH THE S&P 500 INDEX**
Total Returns Average Annual
As of June 30, 1999 Since Inception* One Year
Investor Class 8.32% 13.80% Class A 3.61% 7.68% Class M 7.15% 12.37% S&P 500
Index 20.96% 22.77% Investor Class ($11,050 at 6/30/99) Class A ($10,453 at
6/30/99) Class M ($10,901 at 6/30/99) S&P 500 Index ($12,683 at 6/30/99)
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.
* Investor Class -- March 31, 1998. Class A and Class M -- June 30,
1998; average annual returns are based on the April 1, 1998 commencement date
for the Investor Class. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Transamerica Premier Value Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Market
Shares Value
Market
Shares Value
COMMON STOCKS -- 99.0%
Aerospace & Defense -- 3.0%
Gulfstream Aerospace Corporationa 4,000 $ 270,250
Auto Repair Centers-- 5.2%
Midas, Inc. 16,500 468,188
Business Services -- 6.1%
First Data Corporation 11,400 557,887
Chemicals-- 8.4%
Minerals Technologies, Inc. 9,000 502,312
Monsanto Company 6,600 260,288
762,600
Commercial Services -- 4.3%
Sodexho Marriott Services, Inc. 20,500 393,344
Computers & Business Equipment-- 4.5%
EMC Corporationa 7,500 412,500
Containers & Packaging -- 2.5%
Sealed Air Corporationa 3,500 227,063
Diversified Operations-- 7.0%
Berkshire Hathaway, Inc., Class Ba 285 638,400
Drugs & Health Care -- 5.6%
Alterra Healthcare Corporationa 20,000 275,000
Bristol-Myers Squibb Company 3,300 232,444
507,444
Electric Utilities -- 6.4%
Niagara Mohawk Power Corporationa 36,000 578,250
Electronics-- 17.1%
Applied Materials, Inc.a 10,000 738,750
Intel Corporation 8,000 476,000
Level One Communications, Inc.a 7,000 342,562
1,557,312
Financial Services -- 3.1%
Knight/Trimark Group, Inc.a 4,700 283,469
Human Resources-- 2.6%
Robert Half International, Inc.a 9,000 234,000
Leisure & Entertainment -- 2.0%
Speedway Motorsports, Inc.a 4,500 176,906
Retail Grocery-- 7.3%
Kroger Companya 20,000 558,750
Safeway, Inc.a 2,200 108,900
667,650
Software -- 3.2%
Transaction Systems Architects, Inc.a 7,500 $ 292,500
Technology-- 3.7%
Cymer, Inc.a 13,500 337,500
Transportation-- 7.0%
Kansas City Southern Industries, Inc. 10,000 638,125
Total Common Stocks
(cost $7,430,133) 9,003,388
PREFERRED STOCK -- 1.7%
Containers & Packaging
Sealed Air Corporation
(cost $154,185) 2,500 156,250
Total Investments-- 100.7%
(cost $7,584,318)* 9,159,638
Liabilities in Excess of Other Assets -- (0.7)% (64,566)
Net Assets -- 100.0% $9,095,072
a Non-income producing security
Aggregate cost for Federal tax purposes. Aggregate gross unrealized appreciation
for all securities in which there is an excess of value over tax cost and
aggregate gross unrealized depreciation for all securities in which there is an
excess of tax cost over value were $1,983,186 and $407,866, respectively. Net
unrealized appreciation for tax purposes is $1,575,320.
See notes to financial statements
Transamerica Premier Index Fund
Portfolio Manager: Lisa L. Hansen, Co-Manager: Christopher J. Bonavico
Fund Performance
The Transamerica Premier Index Fund (Investor Class) earned a total return of
12.08% for the six-month period ended June 30, 1999, in comparison to a total
return of 12.39% for the S&P 500 Index. Since its inception in October 1995, the
Fund has earned an average annual total return of 27.46%, relative to a 27.86%
return for the S&P 500. 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 broad equity markets responded extremely well to the Federal Open Market
Committee's June announcement that interest rates would be increased by one
quarter of one percent. Despite a market correction upon the initial suggestion
that rates might be increased, as investors digested the announcement, they
continued to buy stocks, partly in anticipation of good earnings for this
quarter. We have seen predominantly good earnings thus far, with significantly
fewer disappointing pre-announcements this quarter than in the past quarter.
Slow but steady recovery in the economies of Europe and in many parts of Asia
point towards greater stability in these countries. Economic difficulties
continue in Latin America, however, with Argentina in particular posing
concerns. China and Taiwan, key trading and manufacturing centers, are also
respectively contemplating currency and sovereignty issues that could disrupt
these economies. With respect to commodities prices, while oil prices have risen
in the past six months, many other commodity prices continue to remain low,
dampening the likelihood of a spike in inflation.
Portfolio Asset Mix [Pie Chart]
Going Forward
The U.S. equities markets are demonstrating great resiliency, and second quarter
earnings are anticipated to be very good for most U.S. corporations. Across the
S&P 500, companies are turning in another quarter of record earnings. The trend
of above par productivity and profitability for major U.S. companies currently
remains intact. The Transamerica Premier Index Fund will continue to closely
mirror the performance of the S&P 500 Index, which is comprised of 500 of the
United States' most established, well capitalized companies. Thank you for your
continued interest in the Transamerica Premier Index Fund.
[CHART]
COMPARISON of change in value of a $10,000 investment in transamerica Premier
index fund with the s&p 500 index**
Total Returns Average Annual
As of June 30, 1999 Since Inception* One Year
Investor Class 27.46% 22.31%
Class A 25.34% 15.53% Class M 26.54% 20.55% S&P 500 Index 27.86% 22.77% Investor
Class ($24,830 at 6/30/99) Class A ($23,314 at 6/30/99) Class M ($24,161 at
6/30/99) S&P 500 Index ($25,124 at 6/30/99)
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.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30,
1998; average annual returns are based on the October 2, 1995 commencement date
for the Investor Class. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Transamerica Premier Index Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Market
Shares Value
Market
Shares Value
COMMON STOCKS -- 83.6%
Advertising -- 0.1%
Omnicom Group, Inc. 532 $ 42,560
Aerospace & Defense-- 1.1%
Boeing Company 3,292 145,465
Computer Sciences Corporation 516 35,701
General Dynamics Corporation 420 28,770
Lockheed Martin Corporation 1,296 48,276
Northrop Grumman Corporation 225 14,920
Raytheon Company, Class B 1,096 77,131
TRW, Inc. 427 23,432
United Technologies Corporation 1,585 113,625
487,320
Agricultural Biotechnology -- 0.1%
Pioneer Hi-Bred International, Inc. 815 31,734
Agricultural Machinery-- 0.1%
Deere & Company 840 33,285
Air Travel -- 0.2%
AMR Corporationa 552 37,674
Delta Air Lines, Inc. 456 26,277
Southwest Airlines Company 1,074 33,428
US Airways Group, Inc.a 283 12,328
109,707
Aluminum -- 0.2%
Alcan Aluminum Ltd. 738 23,570
Alcoa, Inc. 1,158 71,651
Reynolds Metals Company 221 13,039
108,260
Apparel & Textiles -- 0.2%
Fruit Of The Loom, Inc.a 242 2,360
Liz Claiborne, Inc. 233 8,504
Nike, Inc. 944 59,767
Reebok International Ltd.a 185 3,446
Russell Corporation 130 2,535
Springs Industries, Inc. 68 2,966
VF Corporation 424 18,126
97,704
Auto Parts -- 0.2%
Dana Corporation 520 23,953
Delphi Automotive Systems Corporation 1,848 34,303
Eaton Corporation 245 22,540
Genuine Parts Company 596 20,860
101,656
Automobiles -- 0.8%
Ford Motor Company 3,937 222,195
General Motors Corporation 2,130 140,580
PACCAR, Inc. 265 14,144
376,919
Banking -- 4.3%
AmSouth Bancorporation 585 $ 13,565
Banc One Corporation 3,807 226,754
Bank of New York Company, Inc. 2,472 90,691
BankAmerica Corporation 5,631 412,823
BankBoston Corporation 961 49,131
BB&T Corporation 958 35,147
Comerica, Inc. 545 32,393
Fifth Third Bancorp 866 57,643
First Union Corporation 3,224 151,528
Fleet Financial Group, Inc. 1,774 78,721
Huntington Bancshares, Inc. 686 24,010
J.P. Morgan & Company, Inc. 604 84,862
KeyCorp 1,502 48,252
MBNA Corporation 2,470 75,644
Mellon Bank Corporation 1,734 63,074
Mercantile Bancorporation, Inc. 510 29,134
National City Corporation 1,013 66,351
Northern Trust Corporation 370 35,890
PNC Bank Corporation 981 56,530
Providian Financial Corporation 457 42,730
Republic New York Corporation 367 25,025
SouthTrust Corporation 525 20,147
Summit Bancorp 592 24,753
SunTrust Banks, Inc. 1,028 71,382
Synovus Financial Corporation 866 17,212
US Bancorp 2,357 80,138
Wachovia Corporation 656 56,129
1,969,659
Biological Products -- 0.1%
Millipore Corporation 146 5,922
PE Corporation-PE Biosystems Group 243 19,901
25,823
Broadcasting -- 0.6%
Clear Channel Communications, Inc.a 1,025 70,661
Comcast Corporation 2,218 85,254
Comcast Corporation, Class A 186 6,661
Viacom, Inc.a 2,366 104,104
266,680
Building Construction -- 0.1%
Centex Corporation 197 7,400
Fluor Corporation 243 9,841
Kaufman & Broad Home Corporation 161 4,005
Pulte Corporation 136 3,137
24,383
Business Services -- 1.1%
Automatic Data Processing, Inc. 1,948 85,712
Deluxe Corporation 276 10,747
Ecolab, Inc. 430 18,759
Electronic Data Systems Corporation 1,618 91,518
First Data Corporation 1,465 71,693
H & R Block, Inc. 348 $ 17,400
Humana, Inc.a 547 7,077
Interpublic Group Companies, Inc. 454 39,328
Laidlaw, Inc. 1,019 7,515
Paychex, Inc. 799 25,468
R.R. Donnelley & Sons Company 480 17,790
Service Corporation International 900 17,325
Solectron Corporationa 800 53,350
The Dun & Bradstreet Corporation 566 20,057
483,739
Chemicals -- 1.5%
Air Products and Chemicals, Inc. 747 30,067
B.F. Goodrich Company 241 10,242
Dow Chemical Company 719 91,223
E.I. du Pont de Nemours and Company 3,686 251,800
Eastman Chemical Company 269 13,921
FMC Corporationa 106 7,241
Great Lakes Chemical Corporation 189 8,706
Hercules, Inc. 334 13,130
Mallinckrodt, Inc. 236 8,585
Monsanto Company 2,036 80,295
Nalco Chemical Company 219 11,361
PPG Industries, Inc. 607 35,851
Praxair, Inc. 490 23,979
Rohm & Haas Company 685 29,382
Sigma-Aldrich Corporation 337 11,605
Union Carbide Corporation 436 21,255
Vulcan Materials Company 330 15,939
W.R. Grace & Companya 243 4,465
669,047
Communication Services -- 3.4%
America Online, Inc. 3,310 365,755
Lucent Technologies, Inc. 9,659 651,345
MediaOne Group, Inc.a 1,972 146,668
SBC Communications, Inc. 6,406 371,548
1,535,316
Computers & Business Equipment-- 6.5%
3Com Corporationa 1,163 31,037
Apple Computer, Inc.a 516 23,897
Cabletron Systems, Inc.a 494 6,422
Ceridian Corporationa 464 15,167
Cisco Systems, Inc.a 10,276 662,160
Compaq Computer Corporation 5,533 131,063
Data General Corporationa 133 1,937
Dell Computer Corporationa 8,286 306,582
EMC Corporationa 3,264 179,520
Gateway 2000, Inc.a 510 30,090
Hewlett-Packard Company 3,367 338,383
International Business Machines Corporation 6,072 784,806
Network Appliance, Inc.a 235 13,131
Pitney Bowes, Inc. 952 61,166
Seagate Technology, Inc.a 753 $ 19,296
Sun Microsystems, Inc.a 2,432 167,504
Tandy Corporation 646 31,573
Unisys Corporationa 831 32,357
Xerox Corporation 2,144 126,630
2,962,721
Conglomerates -- 1.3%
AlliedSignal, Inc. 1,849 116,487
CBS Corporation 2,301 99,950
Cendant Corporationa 2,590 53,095
Gillette Company 3,591 147,231
Harcourt General, Inc. 232 11,963
Minnesota Mining & Manufacturing Company 1,358 118,061
Tenneco, Inc. 572 13,656
Textron, Inc. 542 44,613
605,056
Construction & Mining Equipment-- 0.2%
Case Corporation 233 11,213
Caterpillar, Inc. 1,166 69,960
Dover Corporation 740 25,900
Foster Wheeler Corporation 136 1,921
108,994
Construction Materials -- 0.1%
Armstrong World Industries, Inc. 132 7,631
Masco Corporation 1,067 30,810
Owens Corning 165 5,672
Sherwin-Williams Company 568 15,762
59,875
Consumer Products -- 0.0%
American Greetings Corporation 239 7,200
Containers & Glass-- 0.1%
Ball Corporation 92 3,887
Bemis Company, Inc. 167 6,638
Crown Cork & Seal Company, Inc. 421 11,999
Owens-Illinois, Inc.a 483 15,788
Temple-Inland, Inc. 192 13,104
51,416
Containers & Packaging -- 0.0%
Sealed Air Corporationa 289 18,749
Cosmetics & Toiletries-- 0.2%
Alberto-Culver Company 193 5,138
Avon Products, Inc. 878 48,729
International Flavors & Fragrances, Inc. 362 16,064
69,931
Drugs & Health Care -- 8.6%
Abbott Laboratories 4,935 224,542
Allergan, Inc. 214 23,754
Alza Corporationa 325 16,534
American Home Products Corporation 4,291 246,732
Amgen, Inc.a 1,746 $ 106,288
Bausch & Lomb, Inc. 195 14,917
Baxter International, Inc. 913 55,351
Becton, Dickinson & Company 819 24,570
Biomet, Inc. 371 14,747
Bristol-Myers Squibb Company 6,594 464,465
C.R. Bard, Inc. 176 8,415
Cardinal Health, Inc. 875 56,109
Columbia/HCA Healthcare Corporation 2,173 49,571
Eli Lilly & Company 3,577 256,203
Guidant Corporation 962 49,483
HCR Manor Care, Inc.a 355 8,587
HEALTHSOUTH Corporationa 1,382 20,644
Johnson & Johnson 4,395 430,710
LifePoint Hospitals, Inc.a 114 1,532
McKesson Corporation 884 28,398
Medtronic, Inc. 1,865 145,237
Merck & Company, Inc. 7,748 573,352
Pfizer, Inc. 4,233 464,572
Pharmacia & Upjohn, Inc. 1,665 94,593
Schering-Plough Corporation 4,819 255,407
St. Jude Medical, Inc.a 267 9,512
Tenet Healthcare Corporationa 966 17,931
Triad Hospitals, Inc.a 114 1,539
United Healthcare Corporation 607 38,013
Warner-Lambert Company 2,677 185,717
Watson Pharmaceuticals, Inc.a 315 11,045
Wellpoint Health Networks, Inc.a 219 18,588
3,917,058
Electric Utilities -- 1.7%
AES Corporationa 552 32,085
Ameren Corporation 447 17,154
American Electric Power Company 626 23,514
Carolina Power & Light Company 504 21,577
Central & South West Corporation 698 16,316
CINergy Corporation 516 16,512
CMS Energy Corporation 330 13,819
Consolidated Edison Company of New York, Inc. 781 35,340
Constellation Energy Group 491 14,546
Dominion Resources, Inc. 607 26,291
DTE Energy Company 485 19,400
Duke Energy Corporation 1,179 64,108
Edison International 1,141 30,522
Entergy Corporation 772 24,125
FirstEnergy Corporation 768 23,808
Florida Progress Corporation 315 13,013
FPL Group, Inc. 599 32,720
GPU, Inc. 405 17,086
New Century Energies, Inc. 395 15,331
Niagara Mohawk Power Corporationa 603 9,686
Northern States Power Company 467 11,296
P P & L Resources, Inc. 491 15,100
Pacificorp 961 $ 17,658
PECO Energy Company 729 30,527
PG & E Corporation 1,245 40,462
Public Service Enterprise Group, Inc. 791 32,332
Reliant Energy, Inc. 921 25,443
Southern Company 2,242 59,413
Texas Utilities Company 917 37,826
Unicom Corporation 713 27,495
764,505
Electrical Equipment -- 3.1%
Boston Scientific Corporationa 1,226 53,867
Cooper Industries, Inc. 368 19,136
Emerson Electric Company 1,465 92,112
General Electric Company 10,659 1,204,467
Johnson Controls, Inc. 277 19,200
National Service Industries, Inc. 135 4,860
Raychem Corporation 257 9,509
W.W. Grainger, Inc. 324 17,435
1,420,586
Electronics -- 3.1%
Advanced Micro Devices, Inc.a 460 8,309
Andrew Corporationa 292 5,530
Applied Materials, Inc.a 1,197 88,428
EG & G, Inc. 152 5,415
Harris Corporation 268 10,502
Honeywell, Inc. 423 49,015
Intel Corporation 10,860 646,170
KLA Tencor Corporationa 276 17,905
LSI Logic Corporationa 441 20,341
Micron Technology, Inc.a 805 32,452
Motorola, Inc. 1,950 184,762
National Semiconductor Corporationa 546 13,821
Rockwell International Corporation 620 37,665
Scientific-Atlanta, Inc. 245 8,820
Silicon Graphics, Inc.a 599 9,809
Tektronix, Inc. 159 4,800
Tellabs, Inc.a 1,210 81,751
Texas Instruments, Inc. 1,262 182,990
Thomas & Betts Corporation 169 7,985
1,416,470
Financial Services -- 5.6%
American Express Company 1,471 191,414
Associates First Capital Corporation 2,348 104,046
Capital One Financial Corporation 621 34,582
Charles Schwab Corporation 1,304 143,277
Chase Manhattan Corporation 2,750 238,219
Citigroup, Inc. 11,085 526,537
Countrywide Credit Industries, Inc. 349 14,920
Equifax, Inc. 484 17,273
Federal Home Loan Mortgage Corporation 2,209 128,122
Federal National Mortgage Association 3,374 230,697
Firstar Corporation 2,250 $ 63,000
Franklin Resources, Inc. 809 32,865
Household International, Inc. 1,554 73,621
Lehman Brothers Holdings, Inc. 380 23,655
Merrill Lynch & Company, Inc. 1,138 90,969
Morgan Stanley Dean Witter & Co. 1,880 192,700
Paine Webber Group, Inc. 465 21,739
Regions Financial Corporation 690 26,522
SLM Holding Corporation 552 25,288
State Street Corporation 555 47,383
The Bear Stearns Companies, Inc. 414 19,354
Union Planters Corporation 414 18,501
Washington Mutual, Inc. 1,933 68,380
Wells Fargo Company 5,265 225,079
2,558,143
Food & Beverages -- 3.1%
Archer-Daniels-Midland Company 1,966 30,350
Bestfoods 949 46,975
Campbell Soup Company 1,461 67,754
Coca Cola Enterprises, Inc. 1,342 39,924
Coca-Cola Company 8,018 501,125
ConAgra, Inc. 1,598 42,547
General Mills, Inc. 522 41,956
H.J. Heinz Company 1,200 60,150
Hershey Foods Corporation 508 30,162
Kellogg Company 1,380 45,540
Nabisco Group Holdings Corporation 1,065 20,834
PepsiCo, Inc. 4,775 184,733
Quaker Oats Company 442 29,338
Ralston-Ralston Purina Group 1,040 31,655
Sara Lee Corporation 2,972 67,427
Sysco Corporation 1,159 34,553
Unilever NV and PLC 1,877 130,921
Wm. Wrigley Jr. Company 377 33,930
1,439,874
Gas & Pipeline Utilities -- 0.5%
Coastal Corporation 700 28,000
Columbia Gas System, Inc. 275 17,239
Consolidated Natural Gas Company 304 18,468
Eastern Enterprises 68 2,703
Enron Corporation 1,146 93,685
NICOR, Inc. 159 6,052
ONEOK, Inc. 86 2,731
People's Energy Corporation 122 4,598
Sonat, Inc. 362 11,991
The Williams Companies, Inc. 1,365 58,098
243,565
Gas Exploration and Distribution -- 0.2%
Anadarko Petroleum Corporation 415 $ 15,277
Apache Corporation 360 14,040
Burlington Resources, Inc. 582 25,171
Occidental Petroleum Corporation 1,089 23,005
Union Pacific Resources Group, Inc. 770 12,561
90,054
Gold & Mining -- 0.2%
Barrick Gold Corporation 1,200 23,250
Battle Mountain Gold Company 719 1,752
Cyprus Amax Minerals Company 301 4,571
Freeport-McMoRan Copper & Gold, Inc. 533 9,561
Homestake Mining Company 766 6,272
Newmont Mining Corporation 522 10,375
Phelps Dodge Corporation 189 11,706
Placer Dome, Inc. 1,100 12,994
80,481
Hotels & Restaurants -- 0.6%
Darden Restaurants, Inc. 493 10,753
Hilton Hotels Corporation 819 11,619
Marriott International, Inc. 819 30,610
McDonald's Corporation 4,540 187,559
Mirage Resorts, Inc.a 652 10,921
Tricon Global Restaurants, Inc.a 511 27,658
Wendy's International, Inc. 415 11,750
290,870
Household Appliances & Products-- 1.5%
Black & Decker Corporation 293 18,496
Clorox Company 380 40,589
Colgate-Palmolive Company 959 94,701
Corning, Inc. 830 58,204
Maytag Corporation 295 20,558
Newell Rubbermaid, Inc. 920 42,780
Procter & Gamble Company 4,318 385,381
Snap-On, Inc. 205 7,418
The Stanley Works 293 9,431
Tupperware Corporation 206 5,253
Whirlpool Corporation 237 17,538
700,349
Industrial Machinery -- 0.9%
Briggs & Stratton Corporation 85 4,909
Crane Company 220 6,916
Cummins Engine Company, Inc. 133 7,598
Illinois Tool Works, Inc. 793 65,026
Ingersoll-Rand Company 548 35,414
ITT Industries, Inc. 295 11,247
Milacron, Inc. 126 2,331
NACCO Industries, Inc. 21 1,544
Pall Corporation 403 $ 8,942
Parker Hannifin Corporation 365 16,699
Thermo Electron Corporationa 502 10,071
Timken Company 209 4,075
Tyco International Ltd. 2,588 245,213
419,985
Insurance -- 2.8%
Aetna Life & Casualty Company 497 44,450
AFLAC, Inc. 900 43,088
Allstate Corporation 2,674 95,930
American General Corporation 797 60,074
American International Group, Inc. 4,021 470,708
Aon Corporation 814 33,578
Chubb Corporation 577 40,102
CIGNA Corporation 739 65,771
Cincinnati Financial Corporation 542 20,359
Conseco, Inc. 1,025 31,198
Hartford Financial Services Group, Inc. 785 45,775
Jefferson-Pilot Corporation 353 23,364
Lincoln National Corporation 692 36,200
Loews Corporation 378 29,909
Marsh & McLennan Companies, Inc. 792 59,796
MBIA, Inc. 311 20,137
MGIC Investment Corporation 413 20,082
Progressive Corporation Ohio 232 33,640
Provident Companies, Inc. 414 16,560
Safeco Corporation 420 18,533
St. Paul Companies, Inc. 771 24,527
Torchmark Corporation 460 15,698
UNUM Corporation 461 25,240
1,274,719
Investment Companies -- 3.5%
Standard and Poor's Depository Receipts 11,775 1,613,175
Leisure & Entertainment-- 0.7%
Brunswick Corporation 331 9,227
Carnival Corporation 1,900 92,150
Harrah's Entertainment, Inc.a 418 9,196
King World Productions, Inc.a 237 8,251
The Walt Disney Company 6,696 206,320
325,144
Liquor -- 0.4%
Adolph Coors Company 130 6,435
Anheuser-Busch Companies, Inc. 1,556 110,379
Brown-Forman Corporation 225 14,667
The Seagram Company Ltd. 1,370 69,014
200,495
Manufacturing -- 0.1%
Danaher Corporation 414 24,064
Mobile Homes-- 0.0%
Fleetwood Enterprises, Inc. 112 2,961
MultiMedia -- 0.6%
Time Warner, Inc. 3,994 $ 293,559
Newspapers-- 0.4%
Dow Jones & Company, Inc. 310 16,449
Gannett Company, Inc. 931 66,450
Knight-Ridder, Inc. 258 14,174
New York Times Company 639 23,523
Times Mirror Company 260 15,405
Tribune Company 419 36,506
172,507
Non-Ferrous Metals -- 0.0%
Asarco, Inc. 122 2,295
Engelhard Corporation 483 10,928
Inco Ltd. 487 8,766
21,989
Office Furnishings & Supplies-- 0.1%
Avery Dennison Corporation 351 21,192
Ikon Office Solutions, Inc. 490 7,350
28,542
Oil -- 4.1%
Amerada Hess Corporation 302 17,969
Ashland, Inc. 221 8,868
Atlantic Richfield Company 1,066 89,078
Chevron Corporation 2,156 205,224
Exxon Corporation 7,909 609,982
Kerr-McGee Corporation 288 14,454
Mobil Corporation 2,579 255,321
Phillips Petroleum Company 866 43,571
Royal Dutch Petroleum Company 7,050 424,762
Sempra Energy 815 18,439
Sunoco, Inc. 257 7,758
Texaco, Inc. 1,772 110,750
Unocal Corporation 811 32,136
USX-Marathon Group 964 31,390
1,869,702
Paper & Forest Products-- 0.8%
Boise Cascade Corporation 175 7,503
Champion International Corporation 309 14,793
Fort James Corporation 715 27,081
Georgia-Pacific Corporation 598 28,330
International Paper Company 1,325 66,912
Kimberly-Clark Corporation 1,830 104,310
Louisiana-Pacific Corporation 359 8,526
Mead Corporation 353 14,738
Potlatch Corporation 90 3,954
Westvaco Corporation 341 9,889
Weyerhaeuser Company 658 45,238
Willamette Industries, Inc. 363 16,721
347,995
Petroleum Services -- 0.5%
Baker Hughes, Inc. 1,057 $ 35,409
Halliburton Company 1,392 62,988
Helmerich & Payne, Inc. 158 3,762
McDermott International, Inc. 190 5,368
Rowan Companies, Inc.a 282 5,199
Schlumberger Ltd. 1,761 112,154
224,880
Photography -- 0.2%
Eastman Kodak Company 1,103 74,728
Polaroid Corporation 147 4,061
78,789
Plastics -- 0.0%
Sonoco Products Company 51 1,527
Pollution Control-- 0.3%
Browning-Ferris Industries, Inc. 565 24,295
Waste Management, Inc. 1,869 100,475
124,770
Publishing -- 0.1%
Jostens, Inc. 115 2,422
McGraw-Hill Companies, Inc. 678 36,570
Meredith Corporation 171 5,921
44,913
Railroads & Equipment -- 0.3%
Burlington Northern Santa Fe 1,467 45,477
CSX Corporation 709 32,127
Union Pacific Corporation 750 43,734
121,338
Retail -- 4.6%
AutoZone, Inc.a 484 14,581
Best Buy Company, Inc.a 675 45,563
Circuit City Stores-Circuit City Group 332 30,876
Consolidated Stores Corporationa 345 9,315
Costco Companies, Inc.a 680 54,442
CVS Corporation 1,268 64,351
Dayton Hudson Corporation 1,430 92,950
Dillard's, Inc. 370 12,996
Dollar General Corporation 736 21,344
Federated Department Stores, Inc.a 687 36,368
Gap, Inc. 2,828 142,435
Home Depot, Inc. 4,771 307,431
J.C. Penney Company, Inc. 775 37,636
Kmart Corporationa 1,551 25,495
Kohl's Corporationa 533 41,141
Limited, Inc. 373 16,925
Longs Drug Stores Corporation 135 4,666
Lowe's Companies, Inc. 1,205 68,308
May Department Stores Company 1,174 47,987
Nordstrom, Inc. 523 17,521
Office Depot, Inc.a 1,220 $ 26,916
Pep Boys-Manny, Moe & Jack 176 3,806
Rite-Aid Corporation 838 20,636
Sears, Roebuck & Company 1,291 57,530
Staples, Inc.a 1,449 44,828
SUPERVALU, Inc. 409 10,506
TJX Companies, Inc. 986 32,846
Toys " " Us, Inc.a 906 18,743
Wal-Mart Stores, Inc. 14,660 707,345
Walgreen Company 3,266 95,939
2,111,426
Retail Grocery -- 0.5%
Albertson's, Inc. 1,413 72,868
Great Atlantic & Pacific Tea Company, Inc. 131 4,429
Kroger Companya 2,736 76,437
Safeway, Inc.a 1,518 75,141
Winn-Dixie Stores, Inc. 500 18,469
247,344
Savings & Loan -- 0.0%
Golden West Financial Corporation 199 19,502
Software-- 4.2%
Adobe Systems, Inc. 228 18,732
Autodesk, Inc. 192 5,676
BMC Software, Inc.a 671 36,234
Computer Associates International, Inc. 1,798 98,890
Compuware Corporationa 1,200 38,175
IMS Health, Inc. 1,041 32,531
Microsoft Corporationa 16,224 1,463,202
Novell, Inc.a 1,176 31,164
Oracle Corporationa 4,822 179,017
Parametric Technology Corporationa 882 12,238
PeopleSoft, Inc. 752 12,972
Shared Medical Systems Corporation 77 5,024
1,933,855
Steel -- 0.1%
Allegheny Teldyne, Inc. 600 13,575
Bethlehem Steel Corporationa 422 3,244
Nucor Corporation 289 13,710
USX-US Steel Group 281 7,587
Worthington Industries, Inc. 302 4,964
43,080
Telecommunications -- 6.0%
Alltel Corporation 884 63,206
Ameritech Corporation 3,630 266,805
AT&T Corporation 10,933 610,198
Bell Atlantic Corporation 5,051 330,209
BellSouth Corporation 6,363 298,266
CenturyTel, Inc. 435 17,291
Frontier Corporation 515 30,385
GTE Corporation 3,174 $ 240,430
MCI WorldCom, Inc.a 5,963 513,191
Nextel Communications, Inc.a 940 47,176
Sprint Corporation (Fon Group) 2,914 153,896
Sprint Corporation (PCS Group)a 1,399 79,918
US West, Inc. 1,620 95,175
2,746,146
Telecommunications Equipment -- 0.4%
General Instrument Corporationa 538 22,865
Nortel Networks Corporation 2,092 181,612
204,477
Tires & Rubber -- 0.1%
Cooper Tire & Rubber Company 239 5,646
Goodyear Tire & Rubber Company 507 29,818
35,464
Tobacco -- 0.8%
Fortune Brands, Inc. 583 24,122
Philip Morris Companies, Inc. 7,922 318,365
UST, Inc. 612 17,901
360,388
Toys & Amusements -- 0.1%
Hasbro, Inc. 646 18,048
Mattel, Inc. 1,353 35,770
53,818
Transportation -- 0.1%
Kansas City Southern Industries, Inc. 357 22,781
Norfolk Southern Corporation 1,256 37,837
60,618
Trucking & Freight Forwarding-- 0.2%
FDX Corporationa 968 52,514
Navistar International Corporationa 235 11,750
Ryder System, Inc. 247 6,422
70,686
Total Common Stocks
(cost $25,403,699) 38,247,547
COMMERCIAL PAPER-- DOMESTIC-- 14.0%
Agricultural Machinery -- 3.2%
Deere & Company
5.010% 09/17/99 $1,500,000 1,483,717
Chemicals -- 2.2%
E. I. du Pont de Nemours and Company
4.980% 09/17/99 1,000,000 989,210
Commercial Financial Services -- 4.3%
General Electric Capital Corporation
5.010% 09/17/99 $ 500,000 $ 494,573
IBM Credit Corporation
5.010% 09/17/99 1,500,000 1,483,717
1,978,290
Consumer Financial Services -- 2.1%
Ford Motor Credit Company
5.040% 09/17/99 1,000,000 989,080
Food & Beverages -- 2.2%
Coca Cola Company
5.000% 09/17/99 1,000,000 989,167
Total Commercial Paper -- Domestic
(cost $6,429,464) 6,429,464
U.S. GOVERNMENT SECURITIES -- 1.0%
United States Treasury Bills
4.520% 09/16/99 400,000 396,133
4.560% 09/16/99 50,000 49,512
Total U.S. Government Securities
(cost $445,645)* 445,645
REPURCHASE AGREEMENT -- 1.6% State Street Bank & Trust Company, 4.00%, due
07/01/99, (collateralized by $675,000 par value U.S. Treasury Bond, 7.250%, due
05/15/16, with a value of $741,340, cost $722,000) 722,000 722,000 Total
Investments -- 100.2% (cost $33,000,808)** 45,844,656 Liabilities in Excess of
Other Assets -- (0.2)% (72,532) Net Assets -- 100.0% $45,772,124
a Non-income producing security
* $445,645 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 $13,278,571 and $434,723, respectively. Net unrealized appreciation
for tax purposes is $12,843,848.
Schedule of futures contracts
Number of Contract Total Unrealized
Contracts Description Contract Value Gain
22 S&P 500 $7,599,350 $291,324
September 1999
(Long)
See notes to financial statements
Transamerica Premier Balanced Fund
Portfolio Managers: Gary U. Rolle, Co-Manager: Stephen J. Ahearn
Fund Performance
The Transamerica Premier Balanced Fund (Investor Class) returned 3.69% for the
six-month period ended June 30, 1999. In comparison, the benchmark indexes, the
S&P 500 Index and the Lehman Brothers Government/Corporate Bond Index returned
12.39% and -2.28%, respectively. Since the Fund's inception on October 2, 1995,
it has achieved an average annual total return of 22.51% relative to a total
return of 27.86% for the S&P 500 Index and 6.46% for the Lehman Brothers
Government/Corporate Bond Index.
Portfolio Manager Comments
In the last six months, as interest rates rose and bond prices fell, we
increased the bond holdings in this portfolio to 37%. We have added more
cyclical and energy names, and are selectively buying foreign bonds. In the new
issues market, we are seeking out quality new issues for long-term holds. Three
bond issues we purchased for the Fund this year that have performed extremely
well are Triton Energy Ltd., Offshore Logistics, Inc., and Korea Development
Bank.
Portfolio Asset Mix [Pie Chart]
Going Forward
As in the past, rather than guessing on the direction of interest rates, we
continue to select bonds that are currently out of favor, but which our research
indicates are undergoing positive change. We seek out bonds which currently
provide high cash returns while also possessing the strong likelihood of
appreciation in their valuations through credit upgrades.
The interest rate environment is still quite positive for common stocks. We
believe inflation will continue to be benign, and that productivity will
continue at record levels. We also expect earnings in the second half to be
stronger than in the first half, even if interest rates go slightly higher. In
light of these considerations, we believe the outlook for the Fund is quite
positive. Thank you for your continued investment in the Transamerica Premier
Balanced Fund.
[CHART] COMPARISON of change in value of a $10,000 investment in transamerica
Premier balanced fund with lehman brothers government/corporate bond index and
s&p 500 index**
Total Returns Average Annual
As of June 30, 1999 Since Inception* One Year
Investor Class 22.51% 15.53% Class A 20.53% 9.29% Class M 21.66% 14.00% S&P 500
Index 27.86% 22.77% Lehman Brothers Government/
Corporate Bond Index 6.46% 2.69%
Investor Class ($21,405 at 6/30/99) Class A ($20,133 at 6/30/99) Class M
($20,853 at 6/30/99) S&P 500 Index ($25,124 at 6/30/99) Lehman Brothers
Government/Corporate Bond Index
($12,644 at 6/30/99)
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.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30,
1998; average annual returns are based on the October 2, 1995 commencement date
for the Investor Class. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Transamerica Premier Balanced Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Market
Shares Value
Shares or Market
Principal Amount Value
COMMON STOCKS -- 58.6%
Chemicals -- 2.7%
Minerals Technologies, Inc. 30,000 $ 1,674,375
Commercial Services-- 2.3%
Quintiles Transnational Corporationa 34,000 1,428,000
Communication Services -- 3.8%
Lucent Technologies, Inc. 20,000 1,348,750
Qwest Communications International, Inc.a 30,000 991,875
2,340,625
Computers & Business Equipment -- 10.3%
Cisco Systems, Inc.a 31,500 2,029,781
Dell Computer Corporationa 90,000 3,330,000
Hewlett-Packard Company 10,000 1,005,000
6,364,781
Drugs & Health Care -- 4.0%
Merck & Company, Inc. 20,000 1,480,000
Pfizer, Inc. 9,000 987,750
2,467,750
Electronics -- 8.2%
Applied Materials, Inc.a 26,000 1,920,750
Intel Corporation 20,000 1,190,000
Level One Communications, Inc.a 40,000 1,957,500
5,068,250
Financial Services -- 9.1%
Charles Schwab Corporation 20,750 2,279,906
Merrill Lynch & Company, Inc. 20,000 1,598,750
State Street Corporation 20,000 1,707,500
5,586,156
Hotels & Restaurants -- 1.8%
Marriott International, Inc. 30,500 1,139,938
Human Resources-- 1.7%
Robert Half International, Inc.a 40,000 1,040,000
Industrial Machinery -- 0.7%
Illinois Tool Works, Inc. 5,000 410,000
Insurance-- 2.8%
American International Group, Inc. 15,000 1,755,937
Publishing -- 2.2%
McGraw-Hill Companies, Inc. 25,000 1,348,438
Retail Grocery -- 3.2%
Kroger Companya 70,000 1,955,625
Software -- 5.8%
Microsoft Corporationa 32,000 2,886,000
Open Text Corporationa 22,500 675,000
3,561,000
Total Common Stocks
(cost $20,527,476) 36,140,875
PREFERRED STOCK -- 1.4%
Financial Services
Centaur Funding Corporationb
(cost $890,976) 800 $ 877,600
CORPORATE BONDS-- 31.9%
Advertising -- 1.6%
Valassis Communications, Inc.
9.550% 12/01/03 $ 500,000 547,195
6.625% 01/15/09 500,000 465,215
1,012,410
Beverages -- 1.5%
Pepsi Bottling Group, Inc.b
7.000% 03/01/29 1,000,000 939,140
Broadcasting -- 0.8%
Viacom, Inc.
7.750% 06/01/05 500,000 512,120 Drugs & Health Care -- 0.6% Alternate
Living Services, Inc.
5.250% 12/15/02 500,000 388,750
Electric Utilities -- 5.4%
Cleveland Electric Illuminating Company
7.430% 11/01/09 500,000 496,140
7.880% 11/01/17 500,000 509,335
Commonwealth Edison Company
7.000% 07/01/05 300,000 300,072
Niagara Mohawk Power Corporation
7.625% 10/01/05 1,000,000 1,006,230
Pennsylvania Power & Light Company
8.500% 05/01/22 500,000 509,455
Western Massachusetts Electric Company
6.875% 01/01/00 500,000 499,875
3,321,107
Finance & Banking -- 4.1% Key Bank, N.A.
7.125% 08/15/06 500,000 503,230
Korea Development Bank
7.125% 04/22/04 1,000,000 965,260
Mellon Bank Corporation
7.000% 03/15/06 300,000 301,383
Sears Roebuck Acceptance Corporation
7.260% 04/21/03 500,000 510,500
The Money Store, Inc.
8.375% 04/15/04 200,000 212,826
2,493,199
Financial Services -- 1.7%
Chase Manhattan Corporation
7.125% 03/01/05 $ 500,000 $ 510,610
Merrill Lynch & Company, Inc.
6.640% 09/19/02 500,000 503,410
1,014,020
Gas & Pipeline Utilities -- 1.3%
KN Energy, Inc.
6.650% 03/01/05 500,000 484,635
The Williams Companies, Inc.
7.500% 09/15/99 300,000 301,089
785,724
Gas Exploration and Distribution -- 1.4%
Gulf Canada Resources Ltd.
8.250% 03/15/17 390,000 358,188 Triton Energy Ltd.
9.250% 04/15/05 500,000 488,190
846,378
Hotels & Restaurants -- 0.5%
Mirage Resorts, Inc.
6.750% 02/01/08 300,000 278,649 Leisure & Entertainment -- 1.7% Premier
Parks, Inc.
9.750% 01/15/07 975,000 1,038,375
MultiMedia -- 0.9%
Time Warner, Inc.
9.125% 01/15/13 500,000 566,030 Paper & Forest Products -- 1.5%
Abitibi-Consolidated, Inc.
6.950% 04/01/08 1,000,000 946,150
Retail -- 2.7%
Dayton Hudson Corporation
6.400% 02/15/03 300,000 298,605
Saks, Inc.
8.250% 11/15/08 1,000,000 1,051,340
Shoppers Food Warehouse Corporation
9.750% 06/15/04 275,000 297,687
1,647,632
Retail Grocery -- 1.5%
Stater Brothers Holdings, Inc.
9.000% 07/01/04 1,000,000 930,000
Telecommunications -- 1.6%
MCI Communications Corporationc
6.125% 04/15/02 500,000 496,680
Nextlink Communications, Inc.
10.750% 06/01/09 500,000 510,000
1,006,680
Transportation -- 3.1%
Norfolk Southern Corporation
9.000% 03/01/21 $ 500,000 $ 582,435
Offshore Logistics, Inc.
6.000% 12/15/03 1,000,000 850,000
Union Pacific Corporation
6.400% 02/01/06 500,000 483,015
1,915,450
Total Corporate Bonds
(cost $20,168,429) 19,641,814
U.S. GOVERNMENT SECURITIES -- 5.6%
U.S. Treasury Bond
6.375% 08/15/27 1,200,000 1,229,628
U.S. Treasury Notes
6.375% 08/15/02 400,000 408,064
5.875% 11/15/05 370,000 370,000
5.625% 05/15/08 1,500,000 1,469,295
Total U.S. Government Securities
(cost $3,523,514) 3,476,987
REPURCHASE AGREEMENT-- 1.9%
State Street Bank and Trust Company, 4.00%, due 07/01/99, (collateralized by
$1,105,000 par value U.S. Treasury Bond, 7.250%, due 05/15/16, with a value of
$1,213,601, cost $1,187,000) 1,187,000 1,187,000 Total Investments-- 99.4% (cost
$46,297,395)* 61,324,276 Other Assets Less Liabilities-- 0.6% 350,810 Net
Assets-- 100.0% $61,675,086
a Non-income producing security
b Pursuant to Rule 144A under the Act of 1933, these securities may be resold in
transactions exempt from registrations, normally to qualified institutional
buyers. At June 30, 1999, these securities aggregated $1,816,740 or 2.95% of the
net assets of the Fund. c Variable rate 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 $16,306,527 and $1,279,646, respectively. Net unrealized appreciation
for tax purposes is $15,026,881.
See notes to financial statements
Transamerica Premier Balanced Fund (concluded)
Schedule of Investments -- June 30, 1999 (Unaudited)
Principal Market
Amount Value
Principal Market
Amount Value
See notes to financial statements
Transamerica Premier High Yield Bond Fund
Portfolio Manager: Heather E. Creeden, Co-Manager: Stephen J. Ahearn
Fund Performance
The Transamerica Premier High Yield Bond Fund (Investor Class) earned a total
return of 5.74% for the six-month period ended June 30, 1999. In comparison, the
Fund's benchmark, the Merrill Lynch High Yield Master Index returned 1.76% for
the same period.
Portfolio Manager Comments
For the first half of 1999, the high yield bond market outperformed every other
sector of the fixed income markets. The Transamerica High Yield Bond Fund
performed well during this period, due to its stronger correlation with the
stock market than the bond market. When interest rates increased by a quarter of
one percent in June, the impact of this increase was not felt strongly by the
Fund. Corporate high yield bonds, such as those which comprise this portfolio,
are less sensitive to interest rate changes than are other classes of bonds.
Instead, their ability to perform hinges more upon the credit conditions
presented by each individual bond issue.
Our thorough analysis of the bonds under consideration for purchase benefited
shareholders once again, by providing the Fund with quality high yield issues
which performed to our expectations. The criteria we look for when selecting
high yield bonds for the portfolio include companies with: strong experienced
management teams; high quality, valuable asset bases; niche franchises; specific
and viable plans for operating improvements; and improving financial ratios,
such as strong cash flows, interest coverage and the ability to pay down debt.
Portfolio Asset Mix [Pie Chart]
Going Forward
Our outlook going forward remains fairly positive for the high yield bond
market. The U.S. economy continues to demonstrate strength, and we believe
interest rates will remain at moderate levels. For the 12 months since the
launch of the Fund (Investor Class), it generated a 6.35% return, substantially
outpacing competing funds. We will continue to focus on superior returns, by
concentrating on strong fundamental research and credit analysis for each bond
issue that we consider for investment within the portfolio.
Thank you for your continued investment in the Transamerica Premier High Yield
Bond Fund.
[CHART] COMPARISON of change in value of a $10,000 investment in transamerica
Premier high yield bond fund with the merrill lynch high yield master index**
Total Returns Average Annual
As of June 30, 1999 Since Inception* One Year
Investor Class 13.13% 6.35%
Institutional Class 13.35% 6.09%
Merrill Lynch High Yield Master Index 12.29% 0.94%
Investor Class ($29,749 at 6/30/99)
Institutional Class ($30,266 at 6/30/99)
Merrill Lynch High Yield Master Index ($27,840 at 6/30/99)
The Merrill Lynch High Yield Master Index provides a broad-based
measure of the performance of the non-investment grade U.S. domestic bond
market. The Merrill Lynch High Yield Master Index does not reflect any
commissions or fees which would be incurred by an investor purchasing the
securities it represents.
* Effective 7/1/98, the Transamerica High Yield Bond Fund (separate
account) exchanged all of its assets for shares in the Transamerica Premier High
Yield Bond Fund (Fund). The inception date of the Fund is considered to be
9/1/90, the separate account's inception date. The performance prior to 6/30/98
is the separate account's performance recalculated to reflect the actual fees
and expenses of the Fund. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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 High Yield Bond Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Principal Market
Amount Value
CORPORATE BONDS -- 88.8%
Advertising -- 9.4%
Lamar Advertising Company
8.625% 09/15/07 $2,500,000 $2,537,500
Outdoor Systems, Inc.
9.375% 10/15/06 250,000 266,250
R H Donnelley Corporation
9.125% 06/01/08 1,000,000 1,000,000
Valassis Communications, Inc.
9.550% 12/01/03 3,205,000 3,507,520
7,311,270
Air Travel -- 1.6%
GPA Holland BV
9.750% 12/10/01 250,000 251,250
9.640% 02/06/07 1,000,000 1,000,000
1,251,250
Broadcasting -- 10.7%
American Telecasting, Inc.a,c
14.500% 06/15/04 1,075,790 1,075,790
Australis Media Ltd.a,c
0.000% 05/15/03 8,930 89
Big City Radio, Inc.a,c
0.000% 03/15/05 1,000,000 707,500
CF Cable TV, Inc.
11.625% 02/15/05 1,260,000 1,365,714
9.125% 07/15/07 1,500,000 1,568,460
Chancellor Media Corporation
9.375% 10/01/04 1,000,000 1,020,000
Citadel Broadcasting Company
9.250% 11/15/08 500,000 536,250
Sinclair Broadcast Group, Inc.
8.750% 12/15/07 1,000,000 980,000
Young Broadcasting, Inc.
10.125% 02/15/05 1,000,000 1,027,500
8,281,303
Drugs & Health Care -- 5.0%
Alternate Living Services, Inc.
5.250% 12/15/02 650,000 505,375
Express Scripts, Inc.b
9.625% 06/15/09 1,000,000 1,010,000
Integrated Health Services, Inc.
9.250% 01/15/08 1,000,000 717,500
MedPartners, Inc.d
8.210% 06/15/01 1,246,938 1,209,530
7.375% 10/01/06 500,000 436,250
3,878,655
Finance & Banking -- 1.3%
ONO Finance PLCb
13.000% 05/01/09 1,000,000 1,030,000
Food & Beverages -- 2.7%
Beatrice Foods, Inc.
1.000% 11/19/26 $ 494,000 $ 74,100
CFP Holdings, Inc.
11.625% 01/15/04 1,500,000 1,245,000
Purina Mills, Inc.
9.000% 03/15/10 1,000,000 770,000
2,089,100
Hotels & Restaurants -- 1.3%
John Q. Hammons Hotels, Inc.
8.875% 02/15/04 600,000 556,500
Trump Atlantic City Associates
11.250% 05/01/06 500,000 447,500
1,004,000
Industrial -- 3.1%
Bucyrus International, Inc.
9.750% 09/15/07 500,000 455,000 Cambridge Industries, Inc.
10.250% 07/15/07 1,500,000 1,200,000
Scotts Companyb
8.625% 01/15/09 750,000 738,750
2,393,750
Leisure & Entertainment -- 7.3%
Aztar Corporation
13.750% 10/01/04 500,000 540,000
Boyd Gaming Corporation
9.250% 10/01/03 1,270,000 1,289,050
Premier Parks, Inc.
9.750% 01/15/07 3,600,000 3,834,000
5,663,050
MultiMedia -- 0.6% Ackerley Group, Inc.
9.000% 01/15/09 500,000 492,500
Newspapers -- 0.6%
Garden State Newspapers, Inc.b
8.625% 07/01/11 500,000 470,000 Oil & Gas Exploration -- 3.8% Gulf
Canada Resources Ltd.
9.250% 01/15/04 1,000,000 1,009,950
Petroleos Mexicanos
8.850% 09/15/07 500,000 450,000
9.375%b 12/02/08 500,000 508,750
Pride Pete Services, Inc.
9.375% 05/01/07 1,000,000 990,000
2,958,700
Retail -- 11.1%
Fred Meyer, Inc.
7.450% 03/01/08 3,000,000 3,026,550
Jitney-Jungle Stores of America, Inc.
12.000% 03/01/06 1,500,000 1,230,000
Shoppers Food Warehouse Corporation
9.750% 06/15/04 $4,000,000 $4,330,000
8,586,550
Retail Grocery -- 9.1%
Pathmark Stores, Inc.
9.625% 05/01/03 2,750,000 2,805,000
Stater Brothers Holdings, Inc.
11.000% 03/01/01 3,715,000 3,789,300
9.000% 07/01/04 500,000 465,000
7,059,300
Steel -- 0.5%
Hylsa SA de CVb
9.250% 09/15/07 500,000 387,500
Telecommunications -- 9.5%
Bresnan Communications Groupb
8.000% 02/01/09 500,000 501,250
Facilicom International, Inc.
10.500% 01/15/08 500,000 390,000
Intermedia Communications, Inc.a,c
0.000% 05/15/06 2,000,000 1,640,000
International CableTel, Inc.a,c
0.000% 04/15/05 1,000,000 945,000
MCI WorldCom, Inc.
8.875% 01/15/06 37,000 39,391
NEXTLINK Communications, Inc.
9.000% 03/15/08 2,000,000 1,870,000
Rogers Cantel Mobile Communications, Inc.
9.375% 06/01/08 613,000 634,455
WinStar Communications, Inc.a,c
14.500% 10/15/05 1,000,000 1,380,000
7,400,096
Telecommunications Equipment -- 4.4%
L-3 Communications Holdings, Inc.
10.375% 05/01/07 2,500,000 2,643,750
Paging Network, Inc.
10.125% 08/01/07 1,000,000 730,000
3,373,750
Telecommunications Services -- 4.5%
Metromedia Fiber Network, Inc.
10.000% 11/15/08 400,000 411,000
Metronet Communications Corporationa,c
0.000% 11/01/07 2,000,000 1,560,000
0.000% 06/15/08 2,000,000 1,480,000
3,451,000
Transportation -- 2.3% MTL, Inc.
10.000% 06/15/06 1,000,000 970,000
Offshore Logistics, Inc.
6.000% 12/15/03 950,000 807,500
1,777,500
Total Corporate Bonds
(cost $71,006,309) $68,859,274
COMMON STOCKS -- 2.4%
Auto Parts -- 0.3%
Harvard Industries, Inc. 27,466 195,695
Newspapers-- 0.3%
Affiliated Newspapers Investments, Inc.b 2,000 240,000
Retail Grocery -- 1.2%
Kroger Companya 34,444 962,279
Telecommunications -- 0.6%
Nextel Communications, Inc.a 9,678 485,714
Total Common Stocks
(cost $1,423,876) 1,883,688
PREFERRED STOCKS -- 4.9%
Broadcasting -- 0.8%
CSC Holdings, Inc. 5,789 655,564
Financial Services-- 1.4%
Sinclair Capital 10,000 1,057,500
Telecommunications Services -- 2.7%
Global Crossing Ltd. 20,000 2,100,000
Total Preferred Stocks
(cost $3,684,195) 3,813,064
WARRANT -- 0.0%
Stroh Brewery Companya
(cost $2,516) 2,516 2,516
REPURCHASE AGREEMENT -- 2.0%
State Street Bank and Trust Company,
4.00%, due 07/01/99, (collateralized
by $1,450,000 par value U.S. Treasury
Bond, 7.250%, due 05/15/16, with a
value of $1,592,507, cost $1,559,000) $1,559,000 1,559,000
Total Investments-- 98.1%
(cost $77,675,896)* 76,117,542
Other Assets Less Liabilities-- 1.9% 1,458,315
Net Assets-- 100.0% $77,575,857
a Non-income producing security
b Pursuant to Rule 144A under the Act of 1933, these securities may be resold in
transactions exempt from registrations, normally to qualified institutional
buyers. At June 30, 1999, these securities aggregated $4,886,250 or 6.29% of the
net assets of the Fund. c Step Bond -- coupon rate increases in increments to
maturity. Rate disclosed is as of June 30, 1999. Maturity disclosed is the final
maturity date. d Variable rate security * Aggregate cost for Federal tax
purposes. Aggregate gross unrealized appreciation for all securities in which
there is an excess of value over tax cost and aggregate gross unrealized
depreciation for all securities in which there is an excess of tax cost over
value were $2,179,043 and $3,737,397, respectively. Net unrealized depreciation
for tax purposes is $1,558,354.
><See notes to financial statements
Transamerica Premier Bond Fund
Portfolio Manager: Matthew W. Kuhns, Co-Manager: Heidi Y. Hu
Fund Performance
The Transamerica Premier Bond Fund (Investor Class) earned a total return of
- -2.50% for the six-month period ended June 30, 1999. In comparison, the Fund's
benchmark, the Lehman Brothers Government/Corporate Index returned -2.28% for
the same period. Since the Fund's inception in October 1995, the Fund had an
average annual total return of 6.04% while the Index returned 6.46%.
Portfolio Manager Comments
The first half of 1999 has been a difficult period for fixed income investors.
As interest rates have risen markedly, treasury prices have dropped
significantly. The U.S. economy has continued to grow rapidly, exceeding most
economists' expectations, raising fears in investor's minds that the strong
growth in the economy would lead to a pick up in inflation. The difficult
conditions encountered by the bond market in 1999 also adversely affected the
performance of the Premier Bond Fund. The fund's longer duration, which is to
say, its sensitivity to interest rates, had a negative impact on the fund's
return during the first half of 1999. The fund did enjoy good relative
performance from its corporate bond positions, which helped to offset the
negative impact on performance due to duration. Sectors that benefited the
Premier Bond Fund's performance were, again, the supermarket and electric
utility sectors, as well as some of the more cyclical sectors, such as retailing
and airlines.
Portfolio Asset Mix [Pie Chart]
Going Forward
We expect economic growth to slow somewhat from its current rapid pace as higher
interest rates start to act as a drag on the economy, particularly in some of
the more interest rate sensitive sectors, such as housing. As growth slows,
fears of a pick up in inflation should recede, and interest rates should start
to decline again going into the end of the year. The Fund will continue to rely
on vigorous and thorough credit analysis to find undervalued quality bonds in
companies that meet out stringent selection criteria. Thank you for your
continued interest in the Transamerica Premier Bond Fund.
[CHART] 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 Average Annual
As of June 30, 1999 Since Inception* One Year
Investor Class 6.04% 2.33%
Class A 4.50% -2.63%
Class M 5.34% 1.05%
Lehman Brothers Government/
Corporate Bond Index 6.46% 2.69%
Investor Class ($12,459 at 6/30/99) Class A ($11,792 at 6/30/99) Class M
($12,153 at 6/30/99) Lehman Brothers Government/Corporate Bond Index ($12,644 at
6/30/99)
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.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30,
1998; average annual returns are based on the October 2, 1995 commencement date
for the Investor Class. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Transamerica Premier Bond Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Principal Market
Amount Value
CORPORATE BONDS -- 64.1% Advertising -- 3.3% Valassis Communications, Inc.
9.550% 12/01/03 $500,000 $547,195
Aerospace & Defense -- 2.8%
Boeing Company
8.625% 11/15/31 400,000 460,080
Air Travel -- 2.1%
AMR Corporation
9.750% 08/15/21 300,000 359,037 Automobiles -- 2.5% General Motors
Corporation
9.625% 12/01/00 400,000 418,520
Broadcasting -- 4.2%
CF Cable TV, Inc.
11.625% 02/15/05 240,000 260,136
Continental Cablevision, Inc.
9.000% 09/01/08 400,000 449,424
709,560
Chemicals -- 2.4%
Rohm & Haas Companya
7.850% 07/15/29 400,000 399,708
Electric Utilities -- 12.8%
Arizona Public Service Company
5.875% 02/15/04 500,000 485,345
Cleveland Electric Illuminating Company
9.500% 05/15/05 500,000 533,230
Commonwealth Edison Company
7.000% 07/01/05 300,000 300,072
Niagara Mohawk Power Corporation
7.625% 10/01/05 500,000 503,115
7.750% 05/15/06 300,000 311,313
2,133,075
Finance & Banking -- 2.9%
Korea Development Bank
7.125% 04/22/04 500,000 482,630 Hotels & Restaurants -- 2.2% Mirage
Resorts, Inc.
6.750% 08/01/07 400,000 372,720 Oil & Gas Exploration and Distribution
- -- 11.8% Chevron Corporationa
7.627% 01/01/15 500,000 511,250
CMS Energy Corporation
8.000% 07/01/01 500,000 498,150
El Paso Energy Corporation
6.750% 05/15/09 500,000 480,250
YPF Sociedad Anonima SA
8.000% 02/15/04 500,000 487,005
1,976,655
Retail -- 11.3%
Fred Meyer, Inc.
7.450% 03/01/08 $ 500,000 $ 504,425
Kmart Corporation
8.125% 12/01/06 500,000 525,000
Shoppers Food Warehouse Corporation
9.750% 06/15/04 800,000 866,000
1,895,425
Retail Grocery -- 4.7%
American Stores Company
7.900% 05/01/17 300,000 320,676
Stater Brothers Holdings, Inc.
9.000% 07/01/04 500,000 465,000
785,676
Telecommunications -- 1.1% WorldCom, Inc.
6.950% 08/15/28 200,000 189,590
Total Corporate Bonds
(cost $10,991,806) 10,729,871
FOREIGN & U.S. GOVERNMENT SECURITIES -- 32.3%
Foreign Government Issue -- 2.8%
Republic of Chile
6.875% 04/28/09 500,000 463,295
U.S. Government Issues -- 29.5%
U.S. Treasury Bonds
7.500% 11/15/16 250,000 281,758
U.S. Treasury Notes
7.250% 05/15/04 1,700,000 1,805,179
4.750% 11/15/08 1,500,000 1,377,420
5.500% 05/15/09 1,500,000 1,465,305
4,929,662
Total Foreign & U.S. Government Securities
(cost $5,612,847) 5,392,957
REPURCHASE AGREEMENT -- 5.9% State Street Bank and Trust Company, 4.00%, due
07/01/99, (collateralized by $920,000 par value U.S. Treasury Bond, 7.250%, due
05/15/16, with a value of $1,010,419, cost $990,000) 990,000 990,000 Total
Investments -- 102.3% (cost $17,594,653)* 17,112,828 Liabilities in Excess of
Other Assets -- (2.3)% (379,478) Net Assets -- 100.0% $16,733,350
a Pursuant to Rule 144A under the Act of 1933, these securities may be resold in
transactions exempt from registrations, normally to qualified institutional
buyers. At June 30, 1999, these securities aggregated $910,958 or 5.44% of the
net assets of the Fund. 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 $50,726 and $532,551
respectively. Net unrealized depreciation for tax purposes is $481,825.
See notes to financial statements
Transamerica Premier Cash Reserve Fund
Portfolio Manager: Rex A. Olson, Co-Manager: Peter O. Lopez
Fund Performance
The Transamerica Premier Cash Reserve Fund delivered excellent results in the
last year. The Fund (Investor Class) ranked sixth among 317 money market funds
for the one year period ended June 30, 1999, as tracked by Lipper Analytical
Services, Inc.
The Fund's six-month return as of June 30, 1999 was 2.36% in comparison to the
IBC Money Fund Report return of 2.15%. The seven-day current and effective
yields were 4.79% and 4.90% for the Investor Class, respectively, as of June 30,
1999.
Portfolio Manager Comments
The Transamerica Premier Cash Reserve Fund's objective is to provide liquidity,
preservation of principal and maximize current income. The Fund has demonstrated
superior performance since its inception in October of 1995, consistently
placing in the top 10 of all domestic money market funds. During the second
quarter of 1999, the U.S. economy continued to display solid strength. Consumer
spending remained robust supported by a strong labor market and steady growth in
personal income. The remarkable strength of domestic demand in the U.S. economy
and the low unemployment rate raised concerns that the U.S. economy may be
overheating, and that inflationary pressure is building. This caused the Federal
Reserve to take a more aggressive stance.
On May 18th, the Fed adopted a tightening bias, citing `the potential for a
build-up of inflation imbalances.' At the June 30th FOMC meeting, the Fed
followed up with a 25 basis point rate hike in the federal funds target rate to
5%. By actively monitoring economic activity, and anticipating the actions taken
by the Federal Reserve, we were able to achieve excellent results for our
shareholders.
Portfolio Asset Mix [Pie Chart]
Going Forward
The pre-emptive strike by the Fed at the June 30th FOMC meeting should help slow
the economy to a sustainable pace. A modest slowing in economic growth and
continued good news on the inflation front should keep the Fed on hold during
the third quarter. However, further tightening by the Fed cannot be completely
ruled out. Interest rate volatility is likely to remain high over the near term
as investors closely watch upcoming economic releases and weigh the prospects
for a further rate increase before year end.
Thank you for your continued investment in the Transamerica Premier Cash Reserve
Fund.
[CHART] 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 Average Annual
As of June 30, 1999 Since Inception* One Year
Investor Class 5.36% 5.10%
Class A 4.99% 4.74%
Class M 4.73% 4.48%
The IBC's Money Fund Report(TM) 4.89% 4.61% Investor Class ($12,160 at 6/30/99)
Class A ($12,001 at 6/30/99) Class M ($11,889 at 6/30/99) The IBC's Money Fund
Report(TM) ($11,961 at 6/30/99) The IBC's Money Fund Report(TM) -- All Taxable,
First Tier is a composite of taxable money market funds that meet the SEC's
definition of first tier securities contained in Rule 2a-7 under the Investment
Company Act of 1940. It does not reflect any commissions or fees which would be
incurred by an investor purchasing the securities it represents.
An investment in this Fund is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency. Although, the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
The Investment Adviser agreed to waive its Adviser Fee and the
Administrator agreed to assume certain other operating expenses for the Fund.
Otherwise, the current and effective yields would have been 4.79% and 4.90% for
the Investor Class, 4.41% and 4.50% for Class A, and 4.16% and 4.24% for Class
M, respectively.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30,
1998; average annual returns are based on the October 2, 1995 commencement date
for the Investor Class.. ** Hypothetical illustration of $10,000 invested at
inception, assuming reinvestment of dividends and capital gains at net asset
value through June 30, 1999.
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. Performance shown for Class A and Class M prior
to June 30, 1998 is based on the Investor Class of this Fund, but is
recalculated using the current maximum sales charge and distribution fees
(12b-1) for each class.
Transamerica Premier Cash Reserve Fund
Schedule of Investments -- June 30, 1999 (Unaudited)
Principal Amortized
Amount Cost
COMMERCIAL PAPER -- DOMESTIC -- 95.5% Agricultural Machinery -- 5.4% Deere &
Company
4.940% 07/16/99 $ 900,000 $ 898,148
4.810% 07/30/99 450,000 448,256
4.790% 08/11/99 900,000 895,090
4.780% 09/17/99 1,400,000 1,385,500
4.800% 09/17/99 550,000 544,280
4.810% 09/17/99 200,000 197,916
4.840% 10/20/99 300,000 295,523
4,664,713
Banking -- 5.4%
J.P. Morgan & Company, Inc.
4.850% 08/20/99 1,980,000 1,966,663
4.800% 09/15/99 300,000 296,960
4.800% 10/15/99 2,450,000 2,415,373
4,678,996
Commercial Financial Services -- 17.0%
Assets Securitization Cooperative Corporation
4.840% 07/29/99 250,000 249,059
4.900% 07/29/99 1,800,000 1,793,140
4.920% 08/02/99 1,350,000 1,344,096
4.810% 08/04/99 200,000 199,091
5.095%a 09/13/99 1,000,000 999,477
Associates Corporation of North America
4.800% 08/03/99 200,000 199,120
4.960% 08/09/99 4,100,000 4,077,969
4.780% 10/01/99 100,000 98,779
General Electric Capital Corporation
4.830% 07/30/99 100,000 99,611
4.810% 08/13/99 500,000 497,127
4.810% 09/02/99 100,000 99,158
4.810% 09/03/99 400,000 396,580
4.810% 09/07/99 1,700,000 1,684,555
4.880% 10/07/99 1,300,000 1,282,730
5.010% 10/25/99 450,000 442,735
IBM Credit Corporation
4.820% 07/28/99 150,000 149,458
4.830% 07/28/99 800,000 797,102
4.800% 08/11/99 386,000 383,890
14,793,677
Computers & Business Equipment -- 0.7%
IBM Corporation
4.930% 07/01/99 600,000 600,000
Conglomerate -- 2.8%
Minnesota Mining & Manufacturing Company
4.800% 07/19/99 1,300,000 1,296,880
4.800% 07/22/99 1,100,000 1,096,920
2,393,800
Consumer Financial Services -- 15.4%
Ford Motor Credit Company
5.100% 07/02/99 $ 250,000 $ 249,965
4.760% 07/08/99 3,200,000 3,197,038
4.840% 07/09/99 595,000 594,360
4.930% 07/19/99 200,000 199,507
4.780% 10/07/99 400,000 394,795
Motorola Credit Corporation
4.780% 07/08/99 700,000 699,349
4.980% 07/30/99 1,375,000 1,369,484
Toyota Motor Credit Corporation
4.820% 07/01/99 1,075,000 1,075,000
4.850% 07/01/99 1,000,000 1,000,000
4.990% 07/21/99 300,000 299,168
USAA Capital Corporation
4.800% 07/07/99 200,000 199,840
4.790% 07/23/99 1,200,000 1,196,488
4.980% 07/26/99 1,900,000 1,893,429
Xerox Credit Corporation
4.780% 07/13/99 1,000,000 998,407
13,366,830
Electrical Equipment -- 4.4%
Emerson Electric Company
5.050% 07/06/99 3,000,000 2,997,896
5.050% 07/09/99 800,000 799,102
3,796,998
Electronics -- 0.3%
Motorola, Inc.
4.810% 07/01/99 300,000 300,000
Finance & Banking -- 1.0%
AI Credit Corporation
4.780% 08/12/99 850,000 845,260
Financial Services -- 10.9%
Caterpillar Financial Services
4.840% 07/26/99 1,490,000 1,484,992
4.780% 08/04/99 675,000 671,953
4.980% 08/30/99 154,000 152,722
4.930% 09/02/99 1,900,000 1,883,607
Export Development Corporation
4.880% 07/22/99 600,000 598,292
Merrill Lynch & Company, Inc.
4.790% 07/16/99 189,000 188,623
4.780% 07/19/99 3,500,000 3,491,635
4.780% 07/30/99 800,000 796,919
5.300% 03/14/00 250,000 240,541
9,509,284
Food & Beverages -- 10.1%
Anheuser-Busch Companies, Inc.
5.180% 07/02/99 $2,050,000 $ 2,049,705
Campbell Soup Company
4.780% 09/30/99 585,000 577,932
Coca Cola Company
4.850% 07/02/99 300,000 299,959
5.000% 07/19/99 1,400,000 1,396,500
4.780% 07/22/99 1,100,000 1,096,933
4.780% 07/30/99 700,000 697,305
4.820% 09/10/99 200,000 198,099
H.J. Heinz Company
4.830% 07/23/99 500,000 498,524
Hershey Foods Corporation
4.850% 09/03/99 2,000,000 1,982,755
8,797,712
Insurance -- 0.5% AIG Funding, Inc.
4.790% 07/30/99 450,000 448,264 Leisure & Entertainment -- 5.3% The
Walt Disney Company
4.860% 10/07/99 150,000 148,015
4.740% 10/27/99 1,500,000 1,476,695
4.790% 11/09/99 1,500,000 1,473,855
4.790% 11/19/99 1,500,000 1,471,859
4,570,424
Oil -- 3.2%
Chevron Corporation
4.940% 07/06/99 1,000,000 999,314
5.010% 07/16/99 850,000 848,226
5.030% 07/22/99 950,000 947,212
2,794,752
Retail Grocery -- 5.2% Albertson's, Inc.
4.850% 07/06/99 1,800,000 1,798,787
4.910% 07/08/99 2,750,000 2,747,375
4,546,162
Telecommunications -- 7.3%
AT&T Corporation
4.790% 08/03/99 3,000,000 2,986,828
4.790% 08/16/99 1,400,000 1,391,431
BellSouth Telecommunications, Inc.
4.930% 08/03/99 2,000,000 1,990,961
6,369,220
Transportation Services -- 0.6%
United Parcel Service of America, Inc.
4.880% 11/08/99 500,000 491,189
Total Commercial Paper -- Domestic
(amortized cost $82,967,281) 82,967,281
COMMERCIAL PAPER-- FOREIGN-- 10.6%
Banking -- 3.2%
Toronto Dominion Holdings
4.780% 07/15/99 $2,800,000 $ 2,794,795
Financial Services-- 7.4%
Canadian Imperial Holdings, Inc.
4.910% 08/25/99 2,500,000 2,499,332
Canadian Wheat Board
4.790% 09/27/99 1,000,000 988,291
4.780% 10/08/99 1,330,000 1,312,517
4.740% 10/26/99 1,600,000 1,575,352
Total Commercial Paper -- Foreign
(amortized cost $9,170,287) 9,170,287
Total Investments -- 106.1%
(amortized cost $92,137,568) 92,137,568
Liabilities in Excess of Other Assets -- (6.1)% (5,269,788)
Net Assets -- 100.0% $86,867,780
a Variable rate security
See notes to financial statements
Transamerica Premier Cash Reserve Fund (concluded)
Schedule of Investments -- June 30, 1999 (Unaudited)
Principal Amortized
Amount Cost
Principal Amortized
Amount Cost
See notes to financial statements
<TABLE>
<CAPTION>
Statements of Assets and liabilities
June 30, 1999 (Unaudited)
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Transamerica Transamerica Transamerica
Premier Premier Premier Premier Premier Premier Premier Premier Premier
Aggressive Small Company Equity Value Index Balanced High Yield Bond Cash
Reserve
Growth Fund Fund Fund Fund Fund Fund Bond Fund Fund Fund
Assets
<S> <C> <C> <C> <C> <C>
Investments, at cost $160,410,683 $167,092,117 $241,343,825 $7,584,318 $33,000,808
$46,297,395 $77,675,896 $17,594,653 $92,137,568
Investments, at value $232,979,621 $231,837,340 $371,047,000 $9,159,638 $45,844,656
$61,324,276 $76,117,542 $17,112,828 $92,137,568
Cash 507 819 334 37,161 950 793 440 480 --
Receivables:
Dividends and interest 3,614 57,232 47,722 2,518 36,335 472,968 1,556,715 218,154
15,022
Variation margin -- -- -- -- 137,500 -- -- -- --
Securities sold -- 97,997 -- -- 198,618 -- -- 369,576 --
Fund shares sold 1,232,071 5,323,837 289,797 2,633 51,220 132,513 1,825 3,991
419,840
Reimbursement from administrator 8,922 8,713 12,277 11,539 36,463 8,582 8,145 9,076
44,584
Prepaid expenses and other assets 3,536 4,765 10,038 176 2,523 4,331 2,251 2,845 14,680
$234,228,271 $237,330,703 $371,407,168 $9,213,665 $46,308,265
$61,943,463 $77,686,918 $17,716,950 $92,631,694
Liabilities
Payables:
Securities purchased -- 13,544,826 -- 34,093 95,538 -- -- 899,708 --
Fund shares redeemed 420,761 98,906 541,469 25 316,920 120,493 3,191 -- 3,684,562
Advisory fees 151,727 130,897 245,887 5,367 10,739 37,478 34,890 8,177 26,945
Directors fees 1,979 1,541 2,951 85 320 544 1,413 160 734
Distribution fees 44,685 38,534 72,338 1,797 3,709 12,518 405 3,422 260
Payable to adviser 17,152 17,152 17,152 34,327 17,152 17,152 12,374 17,152 17,152
Disbursement in excess of demand
deposit cash -- -- -- -- -- -- -- -- 1,926,330
Other accrued expenses 163,976 129,396 243,651 42,899 91,763 80,192 58,788 54,981 107,931
800,280 13,961,252 1,123,448 118,593 536,141 268,377 111,061 983,600
5,763,914
Total Net Assets $233,427,991 $223,369,451 $370,283,720 $9,095,072 $45,772,124 $61,675,086
$77,575,857 $16,733,350 $86,867,780
Net Assets Consist Of:
Paid in capital $160,273,909 $142,710,004 $249,629,788 $8,178,138 $30,936,965 $43,699,094
$79,669,478 $17,048,107 $86,867,780
Undistributed net investment
income (loss) (1,333,435) (1,008,427) (1,866,761) (40,682)319,472 565,312 59 72
- --
Accumulated net realized gain (loss) on
investments and futures transactions 1,918,579 16,922,651 (7,182,482) (617,704)
1,380,515 2,383,799 (535,326) 166,996 --
Net unrealized appreciation
(depreciation) of investments
and futures contracts 72,568,938 64,745,223 129,703,175 1,575,320 13,135,172
15,026,881 (1,558,354) (481,825) --
Total Net Assets $233,427,991 $223,369,451 $370,283,720 $9,095,072 $45,772,124 $61,675,086
$77,575,857 $16,733,350 $86,867,780
Investor Class
Net Assets $232,835,745 $222,916,631 $370,110,009 $9,030,570 $45,140,281 $61,423,819
$ 1,988,253 $16,576,440 $86,060,817
Shares Outstanding 8,848,764 8,356,825 13,219,960 819,381 2,161,677 3,078,736
203,923 1,679,471 86,060,817
Net Asset Value Per Share $ 26.31 $ 26.67 $ 28.00 $ 11.02 $ 20.88 $
19.95 $ 9.75 $ 9.87 $ 1.00
Institutional Class
Net Assets -- -- -- -- -- -- $75,587,604 -- --
Shares Outstanding -- -- -- -- -- -- 7,791,163 -- --
Net Asset Value Per Share -- -- -- -- -- -- $ 9.70 -- --
Class A
Net Assets $ 523,973 $ 422,975 $ 146,187 $ 49,663 $ 564,998 $
224,548 -- $ 149,279 $ 798,985
Shares Outstanding 19,935 15,871 5,225 4,510 27,112 11,266 -- 15,124 798,985
Net Asset Value Per Share $ 26.28 $ 26.65 $ 27.98 $ 11.01 $ 20.84 $
19.93 -- $ 9.87 $ 1.00
Class M
Net Assets $ 68,273 $ 29,845 $ 27,524 $ 14,839 $ 66,845 $
26,719 -- $ 7,631 $ 7,978
Shares Outstanding 2,602 1,122 987 1,348 3,207 1,341 -- 772 7,978
Net Asset Value Per Share $ 26.24 $ 26.60 $ 27.89 $ 11.01 $ 20.84 $
19.92 -- $ 9.88 $ 1.00
See notes to financial statements
Statements of Operations
Six months ended June 30, 1999 (Unaudited)
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Transamerica Transamerica Transamerica
Premier Premier Premier Premier Premier Premier Premier Premier Premier
Aggressive Small Company Equity Value Index Balanced High Yield Bond Cash
Reserve
Growth Fund Fund Fund Fund Fund Fund Bond Fund Fund Fund
Investment Income
Interest income $ 89,769 $ 116,061 $ 124,858 $ 63 $ 132,876 $
864,265 $3,468,145 $ 595,227 $2,154,111
Dividend income 31,680 120,708 270,860 12,599 237,490* 114,876 175,667 -- --
Total Income 121,449 236,769 395,718 12,662 370,366 979,141 3,643,812 595,227 2,154,111
Expenses
Investment adviser fee 883,364 764,296 1,455,656 33,321 60,453 253,060 207,084 51,746 152,208
Transfer agent fees:
Investor class 168,039 94,444 167,440 12,590 49,868 46,295 17,784 21,088 82,048
Institutional class -- -- -- -- -- -- 10,682 -- --
Class A 9,252 9,237 10,072 9,152 9,370 9,247 -- 9,153 9,416
Class M 9,268 9,234 9,241 9,108 9,107 9,139 -- 9,131 9,147
Distribution fees:
Investor class 259,338 224,503 427,993 11,055 19,967 84,158 2,438 21,428 --
Class A 586 372 170 57 575 247 -- 178 1,247
Class M 135 56 47 24 125 46 -- 14 18
Custodian fees 49,390 50,938 68,338 17,565 64,758 32,621 26,642 21,316 35,082
Registration fees 51,920 73,636 63,366 18,454 19,010 24,014 8,597 16,396 32,039
Audit fees 17,060 17,745 22,802 705 1,458 3,335 6,000 1,247 5,507
Legal fees 2,387 1,873 3,729 93 442 698 801 173 936
Printing 17,026 13,252 30,617 221 3,570 5,663 3,334 1,411 7,565
Directors' fees and expenses 5,527 4,859 8,551 141 960 1,728 2,111 477 2,047
Amortization of deferred
registration fees 8,507 8,507 8,507 12,743 8,507 8,507 6,136 8,507 8,507
Other expenses 10,314 9,348 23,745 772 2,945 3,433 1,753 1,561 4,542
Total expenses before waiver
and reimbursement 1,492,113 1,282,300 2,300,274 126,001 251,115 482,191 293,362
163,826 350,309
Reimbursed expenses and waived fees (37,229)(37,104) (37,795) (72,657) (200,221) (36,854) (46,188) (51,650)
(240,373)
Net Expenses 1,454,884 1,245,196 2,262,479 53,344 50,894 445,337 247,174 112,176
109,936
Net Investment Income (Loss) (1,333,435) (1,008,427) (1,866,761) (40,682) 319,472 533,804
3,396,638 483,051 2,044,175
Net Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on
investments and futures contracts 5,467,084 17,263,776 (6,984,528) 245,621 668,526
2,366,585 92,096 50,214 --
Change in net unrealized appreciation
(depreciation) of investments and
futures contracts 25,096,320 18,329,342 47,636,438 142,034 3,697,168 (688,986)
577,867 (960,299) --
Net Realized and Unrealized
Gain (Loss) on Investments 30,563,404 35,593,118 40,651,910 387,655 4,365,694
1,677,599 669,963 (910,085) --
Net Increase (Decrease)
in Net Assets Resulting
From Operations $29,229,969 $34,584,691 $38,785,149 $346,973$4,685,166 $2,211,403
$4,066,601 $(427,034) $2,044,175
Net of foreign withholding taxes, the amount that was withheld in the Index Fund
was $3,578.
See notes to financial statements
Statements of Changes in Net Assets
Transamerica Premier Transamerica Premier Transamerica Premier
Aggressive Growth Fund Small Company Fund Equity Fund
Period Ended Year Ended Period Ended Year Ended Period Ended
Year Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999
December 31,
(Unaudited) 1998 (Unaudited) 1998 (Unaudited) 1998
Increase in Net Assets
Operations:
Net investment loss $ (1,333,435) $ (546,023) $ (1,008,427)
$ (318,045) $ (1,866,761) $ (2,298,315)
Net realized gain (loss) on investments and futures transactions 5,467,084 (3,525,357)
17,263,776 (154,132) (6,984,528) (197,954)
Net change in unrealized appreciation of investments 25,096,320 46,190,155 18,329,342
46,064,490 47,636,438 58,001,638
Net increase in net assets resulting from operations 29,229,969 42,118,775 34,584,691
45,592,313 38,785,149 55,505,369
Dividends/Distributions to Shareholders Net investment income:
Investor class -- -- -- -- -- --
Institutional class -- -- -- -- -- --
Class A -- -- -- -- -- --
Class M -- -- -- -- -- --
Net realized gains:
Investor class -- (620) -- (830,079) -- (262,088)
Institutional class -- -- -- -- -- --
Class A -- -- -- -- -- --
Class M -- -- -- -- -- --
Net decrease in net assets resulting from distributions -- (620) -- (830,079)
- -- (262,088)
Fund Share Transactions 26,702,334 122,597,180 (20,605,650) 153,506,055
41,177,750 123,510,486
Net increase in net assets 55,932,303 164,715,335 13,979,041 198,268,289
79,962,899 178,753,767
Net Assets
Beginning of period 177,495,688 12,780,353 209,390,410 11,122,121
290,320,821 111,567,054
End of period1 $233,427,991 $177,495,688 $223,369,451 $209,390,410
$370,283,720 $290,320,821
1 Includes undistributed net investment loss of: $ (1,333,435) $ --
$ (1,008,427) $ -- $ (1,866,761) $ --
See notes to financial statements
Statements of Changes in Net Assets (continued)
Transamerica Premier Transamerica Premier Transamerica Premier
Value Fund Index Fund Balanced Fund
Period Ended Period Ended Period Ended Year Ended Period Ended
Year Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999
December 31,
(Unaudited) 1998* (Unaudited) 1998 (Unaudited) 1998
Increase (decrease) in Net Assets
Operations:
Net investment income (loss) $ (40,682) $ (2,633) $ 319,472 $
682,007 $ 533,804 $ 667,534
Net realized gain (loss) on investments and futures transactions 245,621 (863,325)
668,526 1,256,928 2,366,585 2,033,279
Net change in unrealized appreciation (depreciation) of investments 142,034 1,433,286
3,697,168 5,309,621 (688,986) 7,873,490
Net increase in net assets resulting from operations 346,973 567,328 4,685,166 7,248,556
2,211,403 10,574,303
Dividends/Distributions to Shareholders Net investment income:
Investor class -- (24,596) -- (689,572) -- (636,780)
Institutional class -- -- -- -- -- --
Class A -- (3) -- (18) -- (11)
Class M -- (1) -- (16) -- (9)
Net realized gains:
Investor class -- -- -- (1,499,922) -- (1,875,029)
Institutional class -- -- -- -- -- --
Class A -- -- -- (19) -- (40)
Class M -- -- -- (18) -- (40)
Net decrease in net assets resulting from distributions -- (24,600) -- (2,189,565)
- -- (2,511,909)
Fund Share Transactions (365,732) 8,571,103 4,741,968 7,293,877
(2,458,757) 27,061,075
Net increase (decrease) in net assets (18,759) 9,113,831 9,427,134 12,352,868
(247,354) 35,123,469
Net Assets
Beginning of period 9,113,831 -- 36,344,990 23,992,122 61,922,440
26,798,971
End of period1 $9,095,072 $9,113,831 $45,772,124 $36,344,990 $61,675,086
$61,922,440
1 Includes undistributed net investment income (loss) of: $ (40,682) $ --
$ 319,472 $ -- $ 565,312 $ 31,508
* Inception -- March 31, 1998; fund commenced operations on April 1, 1998.
See notes to financial statements
Statements of Changes in Net Assets (concluded)
Transamerica Premier Transamerica Premier Transamerica Premier
High Yield Bond Fund Bond Fund Cash Reserve Fund
Period Ended Period Ended Period Ended Year Ended Period Ended
Year Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999
December 31,
(Unaudited) 1998* (Unaudited) 1998 (Unaudited) 1998
Increase (decrease) in Net Assets
Operations:
Net investment income $ 3,396,638 $ 3,115,406 $ 483,051 $
931,780 $ 2,044,175 $ 3,534,640
Net realized gain (loss) on investments and futures transactions 92,096 (565,418)
50,214 523,889 -- --
Net change in unrealized appreciation (depreciation) of investments 577,867 (2,136,221)
(960,299) (16,451) -- --
Net increase (decrease) in net assets resulting from operations 4,066,601 413,767
(427,034) 1,439,218 2,044,175 3,534,640
Dividends/Distributions to Shareholders Net investment income:
Investor class (88,533) (36,503) (480,243) (931,741) (2,028,733)
(3,534,586)
Institutional class (3,320,548) (3,069,899) -- -- -- --
Class A -- -- (3,356) (33) (15,317) (28)
Class M -- -- (142) (33) (125) (26)
Net realized gains:
Investor class -- (1,245) -- (187,616) -- --
Institutional class -- (63,702) -- -- -- --
Class A -- -- -- (14) -- --
Class M -- -- -- (13) -- --
Net decrease in net assets resulting from distributions (3,409,081) (3,171,349)
(483,741) (1,119,450) (2,044,175) (3,534,640)
Fund Share Transactions 4,101,556 75,574,363 301,608 2,786,596 10,598,881
25,022,731
Net increase (decrease) in net assets 4,759,076 72,816,781 (609,167)
3,106,364 10,598,881 25,022,731
Net Assets
Beginning of period 72,816,781 -- 17,342,517 14,236,153 76,268,899
51,246,168
End of period1 $77,575,857 $72,816,781 $16,733,350 $17,342,517 $86,867,780
$76,268,899
1 Includes undistributed net investment income of: $ 59 $ 12,502 $
72 $ 762 $ -- $ --
Inception -- June 30, 1998; fund commenced operations on July 1, 1998.
See notes to financial statements
Financial Highlights
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Aggressive Growth Fund Transamerica Premier Small Company Fund
Investor Class Investor Class
Period Ended Year Ended Period Ended Period Ended Year Ended
Period Ended
June 30, 1999 December 31, December 31, June 30, 1999 December 31,
December 31,
(Unaudited) 1998 1997* (Unaudited) 1998 1997*
Net Asset Value
Beginning of period $ 22.42 $ 12.18 $ 10.00 $ 21.99 $
12.49 $ 10.00
Operations:
Net investment loss1 (0.15)a (0.04) (0.03) (0.13)a (0.02) (0.02)
Net realized and unrealized gain on investments 4.04 10.28 2.21 4.81 9.93
2.51
Total from investment operations 3.89 10.24 2.18 4.68 9.91 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 $ 26.31 $ 22.42 $ 12.18 $ 26.67 $
21.99 $ 12.49
Total Return2 17.35% 84.07% 21.80% 21.28% 80.27% 24.90%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 1.40%+ 1.40% 1.40%+ 1.38%+ 1.40% 1.40%+
Before reimbursement/fee waiver 1.40%+ 1.60% 2.08%+ 1.38%+ 1.59% 2.12%+
Net investment loss, after reimbursement/fee waiver (1.28%)+ (0.92%) (0.59%)+ (1.12%)+ (0.67%)
(0.43%)+
Portfolio turnover rate 25% 32% 17% 25% 26% 74%
Net assets, end of period (in thousands) $232,836 $177,493 $12,780 $222,917 $209,388 $11,122
+ Annualized
* Inception (Investor Class) -- June 30, 1997; funds commenced operations on
July 1, 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 $(0.15), $(0.05) and $(0.06) for the
Aggressive Growth Fund and $(0.13), $(0.03) and $(0.06) for the Small Company
Fund for the periods ended June 30, 1999 and December 31, 1998 and 1997,
respectively. 2 Total return represents aggregate total return for the period
indicated and is not annualized, for periods less than one year. a Per share net
investment income has been determined on the basis of the average number of
shares outstanding during the period.
See notes to financial statements
Transamerica Premier Equity Fund Transamerica Premier Value Fund
Investor Class Investor Class
Period Ended Year Ended Year Ended Year Ended Period Ended Period
Ended Period Ended
June 30, 1999 December 31, December 31, December 31, December 31, June 30,
1999 December 31,
(Unaudited) 1998 1997 1996 1995* (Unaudited) 1998**
Net Asset Value
Beginning of period $ 24.78 $ 18.53 $ 12.65 $ 9.82 $
10.00 $10.59 $10.00
Operations:
Net investment income (loss)1 (0.15)a (0.15) (0.04) (0.06) 0.02 (0.05)a --
Net realized and unrealized gain (loss) on investments 3.37 6.42 6.05 2.91 (0.20)
0.48 0.62
Total from investment operations 3.22 6.27 6.01 2.85 (0.18) 0.43 0.62
Dividends/Distributions to Shareholders:
Net investment income -- -- -- (0.02) -- -- (0.03)
Net realized gains on investments -- (0.02) (0.13) -- -- -- --
Total dividends/distributions -- (0.02) (0.13) (0.02) -- -- (0.03)
Net Asset Value
End of period $ 28.00 $ 24.78 $ 18.53 $ 12.65 $ 9.82
$11.02 $10.59
Total Return2 12.99% 33.85% 47.51% 29.07% (1.80%) 4.06% 6.19%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 1.32%+ 1.42% 1.49% 1.50% 0.25%+ 1.20%+ 1.20%+
Before reimbursement/fee waiver 1.32%+ 1.42% 1.51% 1.95% 2.39%+ 2.01%+ 2.21%+
Net investment income (loss), after reimbursement/fee waiver (1.09%)+ (0.96%) (0.71%) (0.66%) 1.51%+
(0.91%)+ (0.04%)+
Portfolio turnover rate 14% 59% 13% 60% -- 41% 72%
Net assets, end of period (in thousands) $370,110 $290,318 $111,567 $30,454 $11,070 $9,031 $9,111
+ Annualized
* Inception (Investor Class) -- October 2, 1995.
** Inception (Investor Class) -- March 31, 1998; fund commenced operations on April 1, 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 loss per share
would have been $(0.15), $(0.15), $(0.04), ($0.10) and $(0.01), for the Equity
Fund for the periods ended June 30, 1999 and December 31, 1998, 1997, 1996 and
1995, respectively, and $(0.09) and $(0.08) for the Value Fund for the periods
ended June 30, 1999 and December 31, 1998, respectively.
2 Total return represents aggregate total return for the period
indicated and is not annualized, for periods less than one year.
a Per share net investment income has been determined on the basis of
the average number of shares outstanding during the period.
See notes to financial statements
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
Investor Class
Period Ended Year Ended Year Ended Year Ended Period
Ended
June 30, 1999 December 31, December 31, December 31, December
31,
(Unaudited) 1998 1997 1996 1995*
Net Asset Value
Beginning of period $ 18.63 $ 15.49 $ 11.96 $
10.59 $10.00
Operations:
Net investment income1 0.15a 0.37 0.32 0.27 0.06
Net realized and unrealized gain on investments 2.10 3.98 3.60 2.06
0.53
Total from investment operations 2.25 4.35 3.92 2.33 0.59
Dividends/Distributions to Shareholders:
Net investment income -- (0.37) (0.32) (0.33) --
Net realized gains on investments -- (0.84) (0.07) (0.63) --
Total dividends/distributions -- (1.21) (0.39) (0.96) --
Net Asset Value
End of period $ 20.88 $ 18.63 $ 15.49 $ 11.96
$10.59
Total Return2 12.08% 28.45% 33.14% 22.33% 5.90%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 0.25%+ 0.25% 0.25% 0.35% 0.25%+
Before reimbursement/fee waiver 1.08%+ 1.14% 1.57% 2.29% 4.12%+
Net investment income, after reimbursement/fee waiver 1.59%+ 2.26% 2.31%
2.48% 2.70%+
Portfolio turnover rate 10% 32% 11% 94% 4%
Net assets, end of period (in thousands) $45,140 $36,342 $23,992 $10,814 $6,934
+ Annualized
* Inception (Investor Class) -- October 2, 1995.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment income
(loss) per share would have been $0.08, $0.22, $0.14, $0.06 and $(0.03) for the
Index Fund for the periods ended June 30, 1999 and December 31, 1998, 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. a Per
share net investment income has been determined on the basis of the average
number of shares outstanding during the period.
See notes to financial statements
Transamerica Premier Balanced Fund
Investor Class
Period Ended Year Ended Year Ended Year Ended Period
Ended
June 30, 1999 December 31, December 31, December 31, December
31,
(Unaudited) 1998 1997 1996 1995*
Net Asset Value
Beginning of period $ 19.24 $ 15.54 $ 11.57 $
10.23 $ 10.00
Operations:
Net investment income1 0.16a 0.23 0.11 0.14 0.06
Net realized and unrealized gain on investments 0.55 4.31 3.97 1.40
0.17
Total from investment operations 0.71 4.54 4.08 1.54 0.23
Dividends/Distributions to Shareholders:
Net investment income -- (0.22) (0.11) (0.20) --
Net realized gains on investments -- (0.62) -- -- --
Total dividends/distributions -- (0.84) (0.11) (0.20) --
Net Asset Value
End of period $ 19.95 $ 19.24 $ 15.54 $ 11.57 $
10.23
Total Return2 3.69% 29.30% 35.38% 15.28% 2.30%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 1.32%+ 1.43% 1.45% 1.45% 0.25%+
Before reimbursement/fee waiver 1.32%+ 1.43% 1.62% 1.94% 2.12%+
Net investment income, after reimbursement/fee waiver 1.58%+ 1.60% 0.83%
1.34% 3.12%+
Portfolio turnover rate 42% 32% 23% 19% 16%
Net assets, end of period (in thousands) $61,424 $61,920 $26,799 $16,041 $12,084
+ Annualized
* Inception (Investor Class) -- 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 $0.16, $0.23, $0.09, $0.09 and $0.02 for the Balanced
Fund for the periods ended June 30, 1999 and December 31, 1998, 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. a Per
share net investment income has been determined on the basis of the average
number of shares outstanding during the period.
See notes to financial statements
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
High Yield Bond Fund Transamerica Premier Bond Fund
Investor Class Investor Class
Period Ended Period Ended Period Ended Year Ended Year Ended Year Ended
Period Ended
June 30, 1999 December 31, June 30, 1999 December 31, December 31, December
31, December 31,
(Unaudited) 1998* (Unaudited) 1998 1997 1996 1995**
Net Asset Value
Beginning of period $ 9.63 $ 10.00 $ 10.41 $ 10.19 $
9.86 $ 10.37 $ 10.00
Operations:
Net investment income1 0.33 0.73 0.28 0.61 0.62 0.56 0.16
Net realized and unrealized gain (loss) on investments 0.22 (0.68) (0.54) 0.33 0.33
(0.46) 0.32
Total from investment operations 0.55 0.05 (0.26) 0.94 0.95 0.10 0.48
Dividends/Distributions to Shareholders:
Net investment income (0.43) (0.41) (0.28) (0.61) (0.62) (0.61) (0.11)
Net realized gains on investments -- (0.01) -- (0.11) -- -- --
Total dividends/distributions (0.43) (0.42) (0.28) (0.72) (0.62) (0.61) (0.11)
Net Asset Value
End of period $ 9.75 $ 9.63 $ 9.87 $ 10.41 $ 10.19 $
9.86 $ 10.37
Total Return2 5.74% 0.58% (2.50%) 9.58% 9.99% 1.16% 4.82%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 0.90%+ 0.90%+ 1.30%+ 1.30% 1.30% 1.30% 0.25%+
Before reimbursement/fee waiver 4.08%+ 6.50%+ 1.47%+ 1.47% 1.64% 1.81% 1.93%+
Net investment income, after reimbursement/fee waiver 8.96%+ 23.97%+ 5.60%+ 5.94% 6.25%
5.66% 6.55%+
Portfolio turnover rate 20% 22% 112% 165% 99% 7% 19%
Net assets, end of period (in thousands) $1,988 $1,402 $16,576 $17,340 $14,236 $12,553 $11,827
+ Annualized
* Inception (Investor Class) -- June 30, 1998; fund commenced operations on July 1, 1998.
** Inception (Investor Class) -- 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 $0.21 and $0.56 for the High Yield
Bond Fund for the periods ended June 30, 1999 and December 31, 1998,
respectively, and $0.27, $0.59, $0.58, $0.50 and $0.12 for the Bond Fund for the
periods ended June 30, 1999 and December 31, 1998, 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
Transamerica Premier Cash Reserve Fund High Yield Bond Fund
Investor Class Institutional Class
Period Ended Year Ended Year Ended Year Ended Period Ended Period
Ended Period Ended
June 30, 1999 December 31, December 31, December 31, December 31, June 30,
1999 December 31,
(Unaudited) 1998 1997 1996 1995* (Unaudited) 1998**
Net Asset Value
Beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $
1.00 $ 9.61 $ 10.00
Operations:
Net investment income1 0.02 0.05 0.05 0.05 0.01 0.44 0.42
Net realized and unrealized gain (loss) on investments -- -- -- -- --
0.09 (0.38)
Total from investment operations 0.02 0.05 0.05 0.05 0.01 0.53 0.04
Dividends/Distributions to Shareholders:
Net investment income (0.02) (0.05) (0.05) (0.05) (0.01) (0.44) (0.42)
Net realized gains on investments -- -- -- -- -- -- (0.01)
Total dividends/distributions (0.02) (0.05) (0.05) (0.05) (0.01) (0.44) (0.43)
Net Asset Value
End of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $
9.70 $ 9.61
Total Return2 2.36% 5.45% 5.48% 5.34% 1.39% 5.56% 0.51%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver 0.25%+ 0.25% 0.25% 0.25% 0.25%+ 0.65%+ 0.65%+
Before reimbursement/fee waiver 0.72%+ 0.73% 0.95% 1.09% 1.37%+ 0.69%+ 0.80%+
Net investment income, after reimbursement/fee waiver 4.70%+ 5.29% 5.35% 5.21% 5.55%+
9.02%+ 8.81%+
Portfolio turnover rate -- -- -- -- -- 20% 22%
Net assets, end of period (in thousands) $86,061 $76,267 $51,246 $32,041 $27,996 $75,588 $71,415
+ Annualized
* Inception (Investor Class) -- October 2, 1995.
** Inception (Institutional Class) -- June 30, 1998; fund commenced
operations on July 1, 1998.
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, $0.05, $0.04 and $0.01 for the Cash Reserve Fund for the
periods ended June 30, 1999 and December 31, 1998, 1997, 1996 and 1995,
respectively, and $0.44 and $0.41 for the High Yield Bond Fund for the periods
ended June 30, 1999 and December 31, 1998, 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
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 Transamerica Premier Transamerica Premier Transamerica Premier
Aggressive Growth Fund Small Company Fund Equity Fund Value Fund
Class A Class A Class A Class A
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
Period Ended Period Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
June 30, 1999 December 31,
(Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998*
Net Asset Value
Beginning of period $22.41 $17.55 $21.99 $17.20 $24.79 $22.86 $10.59 $ 9.71
Operations:
Net investment loss1 (0.17)a (0.11) (0.14)a (0.08) (0.19)a (0.16) (0.05)a (0.02)
Net realized and unrealized gain on investments 4.04 4.97 4.80 4.87 3.38 2.09 0.47
0.92
Total from investment operations 3.87 4.86 4.66 4.79 3.19 1.93 0.42 0.90
Dividends/Distributions to Shareholders:
Net investment income -- -- -- -- -- -- -- (0.02)
Net realized gains on investments -- -- -- -- -- -- -- --
Total dividends/distributions -- -- -- -- -- -- -- (0.02)
Net Asset Value
End of period $26.28 $22.41 $26.65 $21.99 $27.98 $24.79 $11.01 $10.59
Total Return2 17.27% 27.69% 21.19% 27.85% 12.87% 8.44% 3.97% 9.31%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver+ 1.50% 1.50% 1.50% 1.50% 1.60% 1.60% 1.30% 1.30%
Before reimbursement/fee waiver+ 12.66% 2091.85% 18.99% 2146.03% 41.25% 2133.52% 114.07% 2553.76%
Net investment loss, after reimbursement/fee waiver+ (1.42%) (1.07%) (1.23%) (0.79%) (1.36%) (1.26%) (1.03%)
(0.42%)
Portfolio turnover rate 25% 32% 25% 26% 14% 59% 41% 72%
Net assets, end of period (in thousands) $ 524 $ 1 $ 423 $ 1 $
146 $ 1 $ 50 $ 1
+ Annualized
* Inception (Class A) -- June 30, 1998; funds commenced operations on July 1,
1998. 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 $(1.55) and $(221.25) for the
Aggressive Growth Fund, $(2.19) and $(212.68) for the Small Company Fund,
$(5.59) and $(269.96) for the Equity Fund, and $(6.03) and $(116.09) for the
Value Fund for the periods ended June 30, 1999 and December 31, 1998,
respectively. 2 Total return represents aggregate total return for the period
indicated and is not annualized, for periods less than one year. a Per share net
investment income has been determined on the basis of the average number of
shares outstanding during the period.
See notes to financial statements
Transamerica Premier Transamerica Premier Transamerica Premier Transamerica Premier
Index Fund Balanced Fund Bond Fund Cash Reserve Fund
Class A Class A Class A Class A
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
Period Ended Period Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
June 30, 1999 December 31,
(Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998*
Net Asset Value
Beginning of period $18.62 $17.59 $19.25 $17.99 $10.40 $10.32 $1.00 $1.00
Operations:
Net investment income1 0.14a 0.19 0.16a 0.18 0.28a 0.29 0.02a 0.02
Net realized and unrealized gain (loss) on investments 2.08 1.39 0.52 1.87 (0.53) 0.19 --
- --
Total from investment operations 2.22 1.58 0.68 2.05 (0.25) 0.48 0.02 0.02
Dividends/Distributions to Shareholders:
Net investment income -- (0.27) -- (0.17) (0.28) (0.29) (0.02) (0.02)
Net realized gains on investments -- (0.28) -- (0.62) -- (0.11) -- --
Total dividends/distributions -- (0.55) -- (0.79) (0.28) (0.40) (0.02) (0.02)
Net Asset Value
End of period $20.84 $18.62 $19.93 $19.25 $ 9.87 $10.40 $1.00 $1.00
Total Return2 11.92% 8.94% 3.53% 11.41% (2.46%) 4.80% 2.18% 2.50%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver+ 0.50% 0.50% 1.55% 1.55% 1.40% 1.40% 0.60% 0.60%
Before reimbursement/fee waiver+ 12.63% 2141.94% 27.75% 2068.27% 34.84% 2353.12% 6.35% 2413.01%
Net investment income, after reimbursement/fee waiver+ 1.45% 2.04% 1.57% 1.73% 5.63% 5.66%
4.32% 4.85%
Portfolio turnover rate 10% 32% 42% 32% 112% 165% -- --
Net assets, end of period (in thousands) $ 565 $ 1 $ 225 $ 1 $
149 $ 1 $ 799 $ 1
+ Annualized
* Inception (Class A) -- June 30, 1998; funds commenced operations on July 1,
1998. 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 loss per share would have been $(1.05) and $(203.55) for the Index
Fund, $(2.43) and $(214.50) for the Balanced Fund, $(1.53) and $(120.85) for the
Bond Fund, and $(0.01) and $(12.31) for the Cash Reserve Fund for the periods
ended June 30, 1999 and December 31, 1998, respectively. 2 Total return
represents aggregate total return for the period indicated and is not
annualized, for periods less than one year. a Per share net investment income
has been determined on the basis of the average number of shares outstanding
during the period.
See notes to financial statements
Financial Highlights (concluded)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Transamerica Premier Transamerica Premier Transamerica Premier
Aggressive Growth Fund Small Company Fund Equity Fund Value Fund
Class M Class M Class M Class M
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
Period Ended Period Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
June 30, 1999 December 31,
(Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998*
Net Asset Value
Beginning of period $22.39 $17.55 $21.96 $17.20 $24.73 $22.86 $10.59 $ 9.71
Operations:
Net investment loss1 (0.20)a (0.18) (0.17)a (0.14) (0.22)a (0.25) (0.07)a (0.05)
Net realized and unrealized gain on investments 4.05 5.02 4.81 4.90 3.38 2.12 0.49
0.94
Total from investment operations 3.85 4.84 4.64 4.76 3.16 1.87 0.42 0.89
Dividends/Distributions to Shareholders:
Net investment income -- -- -- -- -- -- -- (0.01)
Net realized gains on investment -- -- -- -- -- -- -- --
Total dividends/distributions -- -- -- -- -- -- -- (0.01)
Net Asset Value
End of period $26.24 $22.39 $26.60 $21.96 $27.89 $24.73 $11.01 $10.59
Total Return2 17.20% 27.58% 21.13% 27.67% 12.78% 8.18% 3.97% 9.17%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver+ 1.75% 1.75% 1.75% 1.75% 1.85% 1.85% 1.55% 1.55%
Before reimbursement/fee waiver+ 83.85% 1559.17% 200.73% 1554.70% 240.64% 1618.88% 450.91% 1654.81%
Net investment loss, after reimbursement/fee waiver+ (1.65%) (1.32%) (1.50%) (1.05%) (1.63%) (1.49%) (1.33%)
(0.74%)
Portfolio turnover rate 25% 32% 25% 26% 14% 59% 41% 72%
Net assets, end of period (in thousands) $ 68 $ 1 $ 30 $ 1 $
28 $ 1 $ 15 $ 1
+ Annualized
* Inception (Class M) -- June 30, 1998; funds commenced operations on July 1,
1998. 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 $(10.27) and $(207.97) for the
Aggressive Growth Fund, $(23.29) and $(203.30) for the Small Company Fund,
$(32.66) and $(269.54) for the Equity Fund, and $(23.88) and $(115.93) for the
Value Fund for the periods ended June 30, 1999 and December 31, 1998,
respectively. 2 Total return represents aggregate total return for the period
indicated and is not annualized, for periods less than one year. a Per share net
investment income has been determined on the basis of the average number of
shares outstanding during the period.
See notes to financial statements
Transamerica Premier Transamerica Premier Transamerica Premier Transamerica Premier
Index Fund Balanced Fund Bond Fund Cash Reserve Fund
Class M Class M Class M Class M
Period Ended Period Ended Period Ended Period Ended Period Ended Period Ended
Period Ended Period Ended
June 30, 1999 December 31, June 30, 1999 December 31, June 30, 1999 December 31,
June 30, 1999 December 31,
(Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998* (Unaudited) 1998*
Net Asset Value
Beginning of period $18.64 $17.59 $19.24 $17.99 $10.42 $10.32 $1.00 $1.00
Operations:
Net investment income1 0.12a 0.16 0.13a 0.14 0.27a 0.28 0.02 0.02
Net realized and unrealized gain (loss) on investments 2.08 1.41 0.55 1.87 (0.54) 0.21 --
- --
Total from investment operations 2.20 1.57 0.68 2.01 (0.27) 0.49 0.02 0.02
Dividends/Distributions to Shareholders:
Net investment income -- (0.24) -- (0.14) (0.27) (0.28) (0.02) (0.02)
Net realized gains on investments -- (0.28) -- (0.62) -- (0.11) -- --
Total dividends/distributions -- (0.52) -- (0.76) (0.27) (0.39) (0.02) (0.02)
Net Asset Value
End of period $20.84 $18.64 $19.92 $19.24 $ 9.88 $10.42 $1.00 $1.00
Total Return2 11.80% 8.92% 3.53% 11.22% (2.67%) 4.87% 2.09% 2.35%
Ratios and Supplemental Data:
Expenses to average net assets:
After reimbursement/fee waiver+ 0.75% 0.75% 1.80% 1.80% 1.65% 1.65% 0.85% 0.85%
Before reimbursement/fee waiver+ 89.85% 2385.32% 240.59% 2322.86% 796.71% 2292.61% 602.83% 2402.67%
Net investment income, after reimbursement/fee waiver+ 1.18% 1.77% 1.30% 1.48% 5.46% 5.42%
4.10% 4.61%
Portfolio turnover rate 10% 32% 42% 32% 112% 165% -- --
Net assets, end of period (in thousands) $ 67 $ 1 $ 27 $ 1 $
8 $ 1 $ 8 $ 1
</TABLE>
+ Annualized
* Inception (Class M) -- June 30, 1998; funds commenced operations on July 1,
1998. 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 loss per share would have been $(8.66) and $(212.42) for the Index
Fund, $(23.48) and $(215.60) for the Balanced Fund, $(39.68) and $(118.62) for
the Bond Fund, and $(3.02) and $(12.07) for the Cash Reserve Fund for the
periods ended June 30, 1999 and December 31, 1998, respectively. 2 Total return
represents aggregate total return for the period indicated and is not
annualized, for periods less than one year. a Per share net investment income
has been determined on the basis of the average number of shares outstanding
during the period.
Notes to Financial Statements
June 30, 1999 (Unaudited)
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 nine 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 High Yield
Bond Fund ( the "High Yield 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.
On July 1, 1998, all of the Premier Funds with the exception of the High Yield
Bond Fund commenced operations of two additional classes, Class A and Class M.
The High Yield Fund commenced operations on July 1, 1998 for both the Investor
and the Institutional Class shares. Each share of each class of a Fund
represents an identical legal interest in the investment of the Fund. The
Investor, Institutional, Class A and Class M shares differ with respect to
distribution and certain other class-specific expenses and waivers.
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/class are allocated primarily on the basis of relative average daily net
assets.
(E) Dividends and Distributions
Dividends from net investment income on shares of the Cash Reserve Fund are
declared daily and paid monthly. Dividends from net investment income on shares
of the Bond Fund and High Yield 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 Aggressive Growth Fund and
the Small Company Fund are declared and paid annually. Each Fund distributes net
realized capital gains, if any, annually. Dividends and distributions paid by
each Fund are recorded on the ex-dividend date, except for the Cash Reserve
Fund, which records dividends daily. Income dividends and capital gains
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 and timing differences. Dividends from net
investment income are determined on a class level. Capital gains distributions
are determined on a Fund level.
(F) Federal Income Taxes
Each Fund intends to qualify as a regulated investment company by complying with
the requirements of the Internal Revenue Code applicable to regulated investment
companies and by distributing to shareholders substantially all of its taxable
income. Therefore, no Federal income or excise tax provision is required to be
paid by each Fund. As of December 31, 1998 for Federal income tax purposes, the
Aggressive Growth Fund, the Small Company Fund, the Equity Fund and the Value
Fund have capital loss carryforwards of $3,548,505, $161,704, $197,954,
$853,589, respectively, expiring in 2006.
(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 fees 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%
High Yield Fund 0.55% 0.52% 0.50%
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 Investment Adviser has agreed to waive its fee, and the Administrator has
agreed to assume any other operating expenses (other than certain extraordinary
or non-recurring expenses) 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:
Investor Institutional
Fund Class Class Class A Class M
Aggressive Growth Fund 1.40% -- 1.50% 1.75%
Small Company Fund 1.40% -- 1.50% 1.75%
Equity Fund 1.50% -- 1.60% 1.85%
Value Fund 1.20% -- 1.30% 1.55%
Index Fund 0.25% -- 0.50% 0.75%
Balanced Fund 1.45% -- 1.55% 1.80%
High Yield Fund 0.90% 0.65% -- --
Bond Fund 1.30% -- 1.40% 1.65%
Cash Reserve Fund 0.25% -- 0.60% 0.85%
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.
No officer, director, or employee of the Investment Adviser, the Administrator
or any of their respective affiliates receives any compensation from the Funds
for acting as a director or officer of the Company. Each director of the Company
who is not an "interested person" (as that term is defined in the 1940 Act)
receives from the Funds a $10,000 annual fee, $1,000 for each meeting of the
Company's Board attended, and $500 for each Board committee meeting attended,
and is reimbursed for expenses incurred in connection with such attendance. For
the period ended June 30, 1999, the Funds expensed aggregate fees of $26,401 to
all directors who are not affiliated persons of the Investment Adviser.
Certain directors and officers of the fund are also directors and officers of
the Adviser and other affiliated Transamerica entities.
As of June 30, 1999, Transamerica Corporation and its affiliates held the
following percentages of outstanding shares:
Fund
Aggressive Growth Fund 8.42%
Small Company Fund 8.18%
Equity Fund 17.49%
Value Fund 60.80%
Index Fund 61.54%
Balanced Fund 43.15%
High Yield Fund 97.00%
Bond Fund 84.85%
Cash Reserve Fund 36.40%
3. Distribution Plans
The 12b-1 plans of distribution and related distribution contracts require the
Funds to pay distribution fees to TSSC as compensation for its activities, not
as reimbursement for specific expenses. 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 indefinitely for the Cash Reserve Fund. The fee waivers
may be terminated at any time without notice. For the Institutional Shares,
there is no annual 12b-1 distribution fees. For the Class A and Class M shares,
there is an annual 12b-1 distribution fee of 0.35% and 0.60%, respectively.
<TABLE>
<CAPTION>
4. Securities Transactions
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the period ended June 30, 1999 were as follows:
U.S. U.S.
Government ProceedsGovernment
Purchases Purchases from Sales Sales
<S> <C> <C> <C> <C>
Aggressive Growth Fund $76,392,586 $ -- $50,706,667 $ --
Small Company Fund 44,509,455 -- 48,367,634 --
Equity Fund 91,280,799 -- 47,813,646 --
Value Fund 3,701,793 -- 4,105,904 --
Index Fund 5,421,773 -- 3,661,656 --
High Yield Fund 21,580,980 -- 14,876,830 --
Balanced Fund 27,230,079 969,531 24,608,735 2,039,531
Bond Fund 14,402,363 5,054,746 15,877,364 2,160,094
5. Capital Stock Transactions
At June 30, 1999, there were two billion shares of $0.001 par value stock
authorized. The tables below summarize the transactions in Fund shares for the
periods and class indicated.
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund Authorized Shares -- 60,000,000
Period Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 6,838,487 $ 166,968,247 12,567,050 $220,057,887
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 37 649
Capital stock redeemed (5,905,803) (140,778,148) (5,700,247) (97,462,828)
Net increase 932,684 $ 26,190,099 6,866,840 $122,595,708
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 20,575 $470,530125 $ 2,285
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (704) (17,613)(61) (1,255)
Net increase 19,871 $452,917 64 $ 1,030
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 2,554 $59,772 174 $ 2,661
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (18) (454) (108) (2,219)
Net increase 2,536 $59,318 66 $ 442
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
SMALL COMPANY fund Authorized Shares -- 60,000,000
Period Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 7,169,886 $ 167,704,481 14,176,467 $249,749,475
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 43,140 738,126
Capital stock redeemed (8,334,302) (188,681,173) (5,588,738) (96,982,795)
Net increase (decrease) (1,164,416) $ (20,976,692) 8,630,869 $153,504,806
TRANSAMERICA PREMIER
SMALL COMPANY fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 23,229 $ 525,628 113 $1,935
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (7,423) (178,625) (48) (948)
Net increase 15,806 $ 347,003 65 $ 987
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
SMALL COMPANY fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 1,055 $24,039 185 $ 2,605
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed -- -- (118) (2,343)
Net increase 1,055 $24,039 67 $ 262
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
EQUITY fund Authorized Shares -- 100,000,000
Period Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 4,532,436 $123,258,928 13,980,385 $ 298,503,722
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 11,728 265,226
Capital stock redeemed (3,029,933) (82,246,306) (8,295,617) (175,260,229)
Net increase 1,502,503 $ 41,012,622 5,696,496 $ 123,508,719
TRANSAMERICA PREMIER
EQUITY fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 5,212 $140,23591 $1,991
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (39) (1,069) (39) (913)
Net increase 5,173 $139,166 52 $1,078
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
EQUITY fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 942 $26,117 142 $ 2,800
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (6) (155) (91) (2,111)
Net increase 936 $25,962 51 $ 689
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
VALUE fund Authorized Shares -- 50,000,000
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998**
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 61,961 $ 667,717 1,144,521 $11,326,374
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 2,282 23,819
Capital stock redeemed (102,558) (1,094,221) (286,825) (2,781,038)
Net increase (decrease) (40,597) $ (426,504) 859,978 $ 8,569,155
**Inception -- March 31, 1998.
TRANSAMERICA PREMIER
VALUE fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 4,395 $47,404 119 $1,150
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- 3
Capital stock redeemed (4) (43)
Net increase 4,391 $47,361 119 $1,153
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
VALUE fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 1,229 $13,411 303 $ 2,640
Capital stock issued
reinvestment of
dividends and
distributions -- -- -- 1
Capital stock redeemed -- -- (184) (1,846)
Net increase 1,229 $13,411 119 $ 795
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
INDEX fund Authorized Shares -- 60,000,000
Period Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 470,494 $ 9,303,047 650,076 $11,205,373
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 118,635 2,151,698
Capital stock redeemed (259,434) (5,143,227) (366,825) (6,065,538)
Net increase 211,060 $ 4,159,820 401,886 $ 7,291,533
TRANSAMERICA PREMIER
INDEX fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 41,279 $ 810,032 106 $1,828
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 2 34
Capital stock redeemed (14,238) (289,193) (37) (684)
Net increase 27,041 $ 520,839 71 $1,178
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
INDEX fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 3,158 $61,680 81 $1,410
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 1 33
Capital stock redeemed (18) (371) (15) (277)
Net increase 3,140 $61,309 67 $1,166
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
BALANCED fund Authorized Shares -- 60,000,000
Period Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 1,112,758 $ 22,273,360 1,996,396 $ 35,766,272
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 126,519 2,408,985
Capital stock redeemed (1,252,613) (24,980,863) (629,185) (11,116,532)
Net increase (decrease) (139,855) $ (2,707,503) 1,493,730 $ 27,058,725
TRANSAMERICA PREMIER
BALANCED fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 15,289 $305,199105 $1,915
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 3 48
Capital stock redeemed (4,090) (82,525)(41) (798)
Net increase 11,199 $222,674 67 $1,165
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
BALANCED fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 1,324 $27,072 77 $1,384
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 2 47
Capital stock redeemed (49) (1,000) (13) (246)
Net increase 1,275 $26,072 66 $1,185
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
HIGH YIELD fund Authorized Shares -- 50,000,000
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 236,144 $ 2,327,398 209,068 $2,123,135
Capital stock issued
upon reinvestment
of dividends and
distributions 7,889 77,272 3,661 35,236
Capital stock redeemed (185,607) (1,823,944) (67,232) (862,188)
Net increase 58,426 $ 580,726 145,497 $1,296,183
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
HIGH YIELD fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Institutional Class Shares Shares Amount Shares Amount
Capital stock sold 20,428 $ 200,285 7,104,572 $71,144,583
Capital stock issued
upon reinvestment
of dividends and
distributions 340,676 3,320,545 325,487 3,133,597
Capital stock redeemed -- -- -- --
Net increase 361,104 $3,520,830 7,430,059 $74,278,180
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
BOND fund Authorized Shares -- 60,000,000
Period Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 198,657 $ 2,045,319 376,335 $ 3,888,749
Capital stock issued
upon reinvestment
of dividends and
distributions 46,861 475,348 107,537 1,108,252
Capital stock redeemed (232,331) (2,380,837) (214,402) (2,212,826)
Net increase 13,187 $ 139,830 269,470 $ 2,784,175
TRANSAMERICA PREMIER
BOND fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 15,932 $164,082129 $1,330
Capital stock issued
upon reinvestment
of dividends and
distributions 333 3,353 4 44
Capital stock redeemed (1,261) (12,411)(13) (140)
Net increase 15,004 $155,024 120 $1,234
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
BOND fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 643 $6,614 139 $1,436
Capital stock issued
upon reinvestment
of dividends and
distributions 14 140 4 44
Capital stock redeemed -- -- (28) (293)
Net increase 657 $6,754 115 $1,187
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
CASH RESERVE fund Authorized Shares -- 510,000,000
Period Ended Year Ended
June 30, 1999 (Unaudited) December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 121,676,307 $ 121,676,307 123,020,893 $ 123,020,893
Capital stock issued
upon reinvestment
of dividends and
distributions 1,964,014 1,964,014 3,475,945 3,475,945
Capital stock redeemed (113,846,073) (113,846,073) (101,476,437) (101,476,437)
Net increase 9,794,248 $ 9,794,248 25,020,401 $ 25,020,401
TRANSAMERICA PREMIER
CASH RESERVE fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 1,687,585 $1,687,585 1,315 $1,315
Capital stock issued
upon reinvestment
of dividends and
distributions 15,470 15,470 27 27
Capital stock redeemed (905,224) (905,224) (188) (188)
Net increase 797,831 $ 797,831 1,154 $1,154
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
CASH RESERVE fund
Period Ended Period Ended
June 30, 1999 (Unaudited) December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 6,676 $6,676 1,210 $1,210
Capital stock issued
upon reinvestment
of dividends and
distributions 126 126 26 26
Capital stock redeemed -- -- (60) (60)
Net increase 6,802 $6,802 1,176 $1,176
*Inception -- June 30, 1998
</TABLE>
Notes to Financial Statements (continued)
Special Meeting of Shareholders
On June 16, 1999, the Funds held a special meeting of its shareholders for the
purpose of approving new investment advisory agreements. This meeting was
prompted by the acquisition of Transamerica Corporation, the parent company of
the Funds' investment adviser, Transamerica Investment Services, Inc., by AEGON,
N.V., a Dutch insurance company. This acquisition occurred on July 21, 1999, at
which time the new investment advisory agreements became effective.
The following is a proposal that was presented to the shareholders and the
results of the votes: Transamerica Premier High Yield Bond Fund 7,841,837
shares, representing 99.01% of total shares, voted in favor; 1,840 shares,
representing 0.02% of total shares, voted against; and 1,076 shares,
representing 0.01% of total shares, abstained from voting for the proposal.
Transamerica Premier Aggressive Growth Fund
5,103,068 shares, representing 57.90% of total shares, voted in favor; 67,250
shares, representing 0.76% of total shares, voted against; and 138,867 shares,
representing 1.58% of total shares, abstained from voting for the proposal.
Transamerica Premier Small Company Fund
4,407,695 shares, representing 60.37% of total shares, voted in favor; 55,053
shares, representing 0.75% of total shares, voted against; and 95,180 shares,
representing 1.30% of total shares, abstained from voting for the proposal.
Transamerica Premier Value Fund
739,111 shares, representing 87.42% of total shares, voted in favor; 2,314
shares, representing 0.27% of total shares, voted against; and 948 shares,
representing 0.11% of total shares, abstained from voting for the proposal.
Transamerica Premier Index Fund
1,726,470 shares, representing 81.71% of total shares, voted in favor; 6,523
shares, representing 0.31% of total shares, voted against; and 10,454 shares,
representing 0.49% of total shares, abstained from voting for the proposal.
Transamerica Premier Bond Fund
1,542,244 shares, representing 92.37% of total shares, voted in favor; 279
shares, representing 0.02% of total shares, voted against; and 211 shares,
representing 0.01% of total shares, abstained from voting for the proposal.
Transamerica Premier Cash Reserve Fund
46,677,010 shares, representing 51.47% of total shares, voted in favor; 502,154
shares, representing 0.55% of total shares, voted against; and 396,483 shares,
representing 0.44% of total shares, abstained from voting for the proposal.
Transamerica Premier Equity Fund
6,909,717 shares, representing 51.95% of total shares, voted in favor; 104,235
shares, representing 0.78% of total shares, voted against; and 141,954 shares,
representing 1.07% of total shares, abstained from voting for the proposal.
Transamerica Premier Balanced Fund
1,807,677 shares, representing 52.46% of total shares, voted in favor; 15,540
shares, representing 0.45% of total shares, voted against; and 22,492 shares,
representing 0.65% of total shares, abstained from voting for the proposal.
Year 2000 Issue
Many computer software systems in use today cannot distinguish the year 2000
from the year 1900 because dates are encoded using the standard six-place format
that allows entry of only the last two digits of the year. This is commonly
known as the "Year 2000 Problem." This issue could adversely impact the Funds if
the computer systems used by the Funds' Administrator, Custodian, Transfer Agent
and Investment Adviser (including service providers' systems) do not accurately
process date information after January 1, 2000. The Administrator and Investment
Adviser are addressing this issue by testing the computer systems they use to
ensure that those systems will operate properly after January 1, 2000.
The Administrator and Investment Adviser are also seeking assurances from the
Custodian, Transfer Agent and other service providers they use that their
computer systems will be adapted to address the Year 2000 Problem in time to
prevent adverse consequences after January 1, 2000. This issue could also
adversely impact the value of the securities that the Funds invest in if the
issuing companies' systems do not operate properly after January 1, 2000.
For the period ended June 30, 1999, the Fund incurred no significant Year 2000
related expenses and it does not expect to incur significant Year 2000 expenses
in the future.
The above is subject to the Year 2000 Readiness Disclosure Act. This act may
limit your legal rights in the event of a dispute.
Transamerica Premier Funds
Directors
Nooruddin S. Veerjee
Chairman of the Board
Sidney E. Harris
Charles C. Reed
Carl R. Terzian
Transamerica Premier Funds
Officers
Nooruddin S. Veerjee
Chief Executive Officer
Nicki A. Bair
President
Sandy C. Brown
Senior Vice President
E. Joy Heckendorf
Senior Vice President
Susan R. Hughes
Treasurer
Reid A. Evers
Secretary
Donald P. Radisich
Vice President
Christopher W. Shaw
Assistant Vice President
Investment Adviser
Transamerica Investment Services, Inc.
1150 South Olive Street
Los Angeles, California 90015
Distributor
Transamerica Securities Sales Corporation
1150 South Olive Street
Los Angeles, California 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)1999 Transamerica Securities Sales Corporation, Distributor
Transamerica Securities Sales Corporation, Distributor
1-800-89-ASK-US (1-800-892-7587)
http://transamericafunds.com
e-mail: [email protected]
TPF 511-899Transamerica Premier Funds
<PAGE>
