Transamerica Premier Funds
Transamerica Premier Funds
1999 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
Independent Auditor's Report 52
Dear Fellow Shareholder
As the new millennium begins, we are living in a time of remarkable innovation
and opportunity. Technology and the Internet are affecting our work and personal
lives in ways we could not have imagined just a few years ago. At Transamerica,
we have been successful in seeking investment opportunities in changes
originating in new businesses and impacting traditional ones. And we have been
successful in combining new ideas with traditional discipline to bring value and
returns to our shareholders.
Consistent Past Performance
Transamerica Premier Funds was launched in October 1995, and soon earned a
reputation as one of the nation's leading mutual fund families. Although we will
only celebrate our fifth year in 2000 -- by any standard, our organization is
highly seasoned. Since 1967, our Investment Adviser has been in the business,
maximizing their experience by working together as a team. They share a broad
range of information -- including research, data, ideas and insights -- in
carefully weighing potential investments. Their rigorous efforts continue
throughout the entire period that we hold an investment, providing an
exceptionally solid research foundation for our Funds. Over the past five years,
Transamerica Premier Funds has expanded to offer a variety of funds for all
investment needs, many of which enjoy high rankings and exceptional performance.
Some of the impressive results we have achieved include:
o The Premier Equity, Index, Balanced and Bond Funds hold the highly acclaimed
four and five-star ratings from Morningstar.1 o The Premier Small Company and
Cash Reserve Funds are ranked in the top 10% for their respective categories by
Lipper Analytical Services, Inc. (Among 762 small cap and 340 money market funds
for the year-ended December 31, 1999.) Rankings are for the Investor Class only.
Other classes may vary. o For each year since inception, the Premier Equity,
Small Company and Aggressive Growth Funds have outperformed their respective
benchmarks.
Although past performance is no guarantee of future results, we know that
investors will be considerably more confident about choosing an investment
company that achieves and maintains the kind of steadfast performance reported
by the Premier Funds. We are particularly proud that our Funds regularly perform
better than their corresponding market benchmarks and many of their competitors.
A Commitment to Service
I hope that by now you have had the opportunity to take advantage of our
enhanced website, www.transamerica.com. As of November, it was updated to
service full transactions, including buying, selling and exchanging shares. You
can also access your account history and current account balance at your
convenience -- 24 hours a day, 7 days a week. We have received positive feedback
about the website, in particular, the features that provide our daily share
prices and performance, quarterly fund holdings, and monthly Morningstar
ratings. Those of you without access to the Internet can use our automated phone
system (1-800-892-7587, option 2) to effect transactions, and access
round-the-clock services, including detailed information about your account.
Your Investment Future As a Transamerica Premier Funds shareholder, you have
already taken advantage of the important benefits that mutual funds have to
offer. We are proud of the role that our Funds play in helping you achieve
investment goals, whatever they are. As always, we remain committed to providing
you with the professional investment management you need to keep your financial
plan on track.
Thank you for your continued interest in the Transamerica Premier Funds. We wish
you a healthy and prosperous New Year!
Sincerely,
Gary U. Rolle'
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 12/31/99 among 3,469 domestic equity funds and
1,617 taxable bond funds.
Transamerica Investment Adviser Outlook
Summary
Economic growth accelerated in the fourth quarter of 1999 from the brisk pace of
1999's third quarter. Despite a dramatic rise in interest rates, the equity
markets rallied strongly over the fourth quarter, with the strong showing of the
S&P 500 of 14.5% overwhelmed by NASDAQ's gain of 48.2%. With consumer pockets
flush with equity market gains and overseas economies gaining strength, the U.S.
economy is moving through the first quarter of 2000 with a full head of steam.
The end of February will mark 107 months of expansion, the longest in U.S.
history.
This economic strength will continue throughout the quarter, with inflation
picking up slightly. The Federal Reserve is increasingly concerned about
above-trend growth and will continue to tighten monetary policy in the first
quarter. The Fed is expected to raise the federal funds rate by 50 basis points
during the quarter. The 30-year bond yield will trade in a wide range as
investors wrestle with the prospects for a diminished supply of Treasury bonds
versus the possibility of higher inflation. Treasury rates across most of the
yield curve will probably trend higher until economic growth tapers off to a
more moderate pace by the end of the first quarter.
Consumer
Consumer spending continues to exhibit impressive growth following on the
exuberant Christmas shopping season of 1999 which was the best in many years.
Consumers have kept their wallets open as the strong economy and job market,
along with the large gains in the equity markets, have instilled tremendous
confidence.The Conference Board's survey of consumer confidence shows the
highest reading since the survey began over 32 years ago -- and consumers who
are content with their current situation and upbeat about the future are more
likely to spend. The latest government report on retail sales certainly supports
this thesis -- which shows the consumer on a shopping binge!
Rising interest rates have started to have an impact on the more interest
sensitive sectors of the economy such as housing, but the stimulative effect of
the robust equity markets seems to be offsetting the drag from higher interest
rates. The result is that the upturn in interest rates that has occurred over
the last year will take longer to slow the economy than in previous cycles. The
strength in consumer spending is expected to taper off somewhat to more moderate
growth towards the end of the first quarter due to the impact of higher rates on
housing demand and the equity markets.
Capital Spending
Government spending has been muted in recent years, shrinking as a proportion of
total capital spending. However, spending this year is expected to increase both
because this is an election year and because the federal budget is in surplus.
The Administration's just released budget proposes a 5% increase in total
outlays. Other fiscal initiatives are likely to creep up in size as well, albeit
off of a low base. New spending programs in health care, education, and research
and development have already been proposed by the present Administration.
Defense spending has also traditionally increased during election years.
Finally, the troubled farming sector is increasingly likely to receive billions
in spending boosts as well.
Private sector spending is expected to continue at a brisk pace as well. The
National Science Foundation estimates that private sector research and
development spending will increase nearly 11% to $187 billion in 2000. Business
spending on equipment and software, which may have slowed in the weeks preceding
Y2K, is likely to resume. Although highly stimulative, this spending will
produce long-term gains in productivity, partially mitigating the potentially
inflationary impact.
Inflation
Despite the very strong growth at this late stage of the economic cycle,
inflation remains remarkably subdued. The U.S. economy ended the year with a
bang, posting GDP growth well in excess of 5% for the second consecutive
quarter. Core CPI, meanwhile, ended the year at a 1.9% year-over-year growth
rate, which is the lowest level seen since the mid-1960s.
Going forward, core inflation is likely to pick up somewhat, as some of the
beneficial effects on inflation from the Asian crisis of 1998 reverse with the
current global economic upswing. One result of the global expansion is that
worldwide demand for raw materials has driven up commodity prices significantly.
So far, competition has forced manufacturers to absorb the increase in input
costs. But, a recent Dun & Bradstreet survey of 3,000 U.S. business executives
suggests that pricing power is increasing, which may portend the ability of
manufacturers to pass more of these costs through in the form of higher prices.
Another result of the improvement in the overseas economies is that prices of
imports into the U.S. have risen dramatically, reducing the pressure on domestic
producers to keep prices down.
One other piece of the inflation puzzle -- wage growth -- continues to be an
area of concern. As Fed Chairman Alan Greenspan noted in recent speeches, the
strong growth in the economy continues to reduce the "pool of available
workers," which will likely add pressure to the upward trend in wages. If the
economy does slow to a more moderate growth rate of 2-3%, this will lower demand
for new workers closer to the growth rate of the labor force.
Interest Rates
U.S. Treasury bonds in 1999 turned in their worst price performance since 1994,
as interest rates rose markedly during the year. One major reason for this poor
performance was the impressive recovery in the economies of Asia and Europe.
This led to the unwinding of the "flight-to-quality" into Treasury bonds that
took place during 1998 (whereby investors all over the world bought U.S.
Treasuries, seeking a safe haven from the market turmoil brought on by the Asian
economic crisis). The recovery in overseas economies and markets meant that a
safe haven was no longer necessary, and investors sold their U.S. Treasuries,
driving prices down and yields up.
In addition, the U.S. economy has continued to surprise on the upside, with GDP
growth in 1999 exceeding most economists' forecasts. This strong growth, coupled
with tight labor markets, has increased bond investors' concerns that higher
inflation was imminent. During 1999 the Fed also added to the selling pressure
by raising the federal funds rate 75 basis points, reversing the cuts instituted
in 1998 in response to the Asian economic crisis. Early in February the Fed
raised rates another 25 basis points, bringing the federal funds target rate to
5.75%. Going forward, it is highly likely that the Fed will hike rates once or
twice more during the first half of the year, since the economy is still too
strong to be sustainable without generating inflationary pressures. However,
this tightening bias has been partially offset by the Treasury's announcement of
its intention to pay off higher coupon, longer maturity debt in order to reduce
the debt cost to the Federal government.
The bond market will continue to be very volatile during the first quarter.
Continued economic strength and Fed tightening will keep upward pressure on
rates, and the 10-year Treasury yield is likely to move higher until the economy
starts to show some signs of slowing during the second quarter of the year.
International
With the exception of Japan, all major global economies saw a continuation of
brisk growth through the fourth quarter of 1999. With inflation risks rising and
financial risks declining, central banks across North America, the U.K., and
Europe either raised rates or held a bias to do so. As in the U.S., this trend
is expected to remain in place through the first quarter of 2000. Latin
America's recovery, while spotty, did accelerate during the fourth quarter as
well. Finally, Japan's economic growth remained tepid, with weak consumer demand
even in the face of 0% real interest rates.
Growth in the European economy is being positively affected by several factors.
The persistent weakness in the Euro currency, falling by more than 5.8% against
the dollar during the fourth quarter, has not been met with intervention by the
European Central Bank. The Euro's weakness should have the intended stimulative
impact on the Euro region's exports, increasing their competitiveness in
international markets. Europe has also seen some early but significant steps
towards more substantive economic reform, which should also be stimulative over
the longer term.
Asia continued its impressive recovery through the fourth quarter, with Korea,
Thailand, Malaysia, Indonesia, and the Philippines all experiencing accelerating
growth. Foreign exchange reserves continue to grow, decreasing the risk of a
currency crisis. A China devaluation no longer poses a great risk to the
financial markets, given the Asian region's increasing economic strength.
However, in conjunction with China's entry into the World Trade Organization,
China will take an incremental approach towards loosening currency controls. The
most significant exception to the economic strength in the Asian region remains
Japan, which continues to see weakness in consumer demand. However, if the yen
can either maintain or weaken from present levels, Japan will see stronger
economic growth in the year 2000.
Latin America was a more mixed picture, but the region did see a pick up in
growth over the fourth quarter. Ecuador, which defaulted on its Brady bonds
earlier in the year, continued to struggle. On the other hand, Mexico, as the
biggest beneficiary of both NAFTA and the brisk growth in the U.S., continued to
outperform growth and inflation expectations.
Stock Market
Despite higher interest rates and already stretched valuations in many sectors,
most stock market indices hit new highs during the fourth quarter. The surge in
money supply (as measured by M3) of $157 billion during December of 1999 to
address possible Y2K liquidity problems was a major factor behind this rally.
Rate increases and other Fed actions to reverse this liquidity surge could cause
volatility in the equity markets during the first quarter. Against a background
of rising rates, new highs on the market will be difficult to achieve.
The speculative frenzy in Internet related stocks during the fourth quarter is
also a cause for concern. The "get rich quick" mentality has become very
pervasive amongst retail investors, as demonstrated by the focus on the stock
market by the popular media, and by the high levels of margin debt outstanding.
Margin debt over the last twelve months is up $88 billion, an all time high both
in absolute terms and relative to personal income. Returns on these leveraged
investments may have driven consumer demand to unsustainable levels and also
become a cause for concern by the Federal Reserve. Opportunities continue to
exist for investments in well managed companies involved in cutting-edge
technology, companies with sustainable competitive advantages, and companies for
which valuations have lagged. The international markets present interesting
opportunities as well, since valuations are not as rich on a historical basis,
and there appear to be no major roadblocks to continued economic growth over the
next quarter.
Transamerica Premier Aggressive Growth Fund
Portfolio Manager: Christopher J. Bonavico, Co-Manager: Daniel J. Prislin
Fund Performance
The Transamerica Premier Aggressive Growth Fund (Investor Class) performed very
well during 1999. The Fund generated a total return of 54.25% for the 12-month
period ended December 31, 1999, in comparison to a 21.04% advance by the S&P 500
for the same period. Since its inception in June 1997, the Fund has earned an
average annual total return of 64.13%, while the S&P 500 has returned 24.25%.
Portfolio Manager Comments
The Fund's strategy of investing in leading management teams in growth
businesses was amply rewarded in 1999. The Fund concentrates its holdings in a
portfolio to 20 to 30 leading companies identified through our research. We
believe this focus on top performing businesses has been well rewarded and we
will continue to buy and hold only our select list of companies.
Although the majority of our stocks were very strong contributors to the Fund's
performance, the largest percentage gainers were in the communications sector.
The communications equipment and services sectors were particularly strong as
the elimination of regulatory barriers is allowing new business models to
flourish. Businesses today are using communications methods to reach more
customers, and at the same time lower their costs. Our research identified
companies that are rapidly becoming new communications standards such as
QUALCOMM in wireless circuits, VeriSign in Internet security services, and Qwest
as a next generation communications services provider.
The Fund also is invested in high-returning, non-technology businesses in
healthcare and financial services. We see significant investment returns for the
leaders in these fields. Our holdings in these fields include Charles Schwab,
Knight Trimark, and Warner Lambert Co.
Portfolio Asset Mix
Going Forward
We believe our investment style is well suited to perform in a time of
remarkable innovation and opportunity for wealth creation. Opportunities are
available not only for those businesses that create technology, but for those
that use it to better serve their customers and earn high returns. This paradigm
presents attractive prospective returns for smart management teams.
We are convinced that great management is the rarest of all assets. We seek
management teams that understand how to evolve their businesses to stay ahead of
their competition. We buy and hold stock in these rare companies when we
identify them to take advantage of the long-term value creation they offer.
Thank you for your continued investment in the Transamerica Premier Aggressive
Growth Fund.
Comparison of change in value of a $10,000 investment in transamerica premier
aggressive growth fund with the s&p 500 index**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 64.13% 54.25%
Class A 60.48% 46.00%
Class M 62.96% 52.25%
S&P 500 Index 24.25% 21.04%
Investor Class ($34,583 at 12/31/99) Class A ($32,690 at 12/31/99) Class M
($33,971 at 12/31/99) S&P 500 Index ($17,209 at 12/31/99)
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 December
31, 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 aggressive growth Fund
Schedule of Investments-- December 31, 1999
Market
Shares Value
COMMON STOCKS-- 99.7%
Broadcasting-- 2.8%
Clear Channel Communications, Inc.a 73,500 $ 6,559,875
Communication Services-- 10.2%
Qwest Communications International, Inc.a 300,000 12,900,000
VeriSign, Inc.a 60,000 11,456,250
24,356,250
Computers & Business Equipment-- 15.0%
Cisco Systems, Inc.a 50,000 5,356,250
Dell Computer Corporationa 287,500 14,662,500
EMC Corporationa 144,000 15,732,000
35,750,750
Drugs & Health Care-- 3.3%
KeraVision, Inc.a 373,000 2,284,625
Warner-Lambert Company 67,000 5,489,812
7,774,437
Electronics-- 17.2%
Applied Materials, Inc.a 150,000 19,003,125
Intel Corporation 169,500 13,951,969
QLogic Corporationa 50,000 7,993,750
40,948,844
Financial Services-- 8.2%
Charles Schwab Corporation 250,000 9,593,750
Knight/Trimark Group, Inc.a 215,000 9,890,000
19,483,750
Leisure & Entertainment-- 2.5%
Speedway Motorsports, Inc.a 215,000 5,979,688
Retail-- 4.3%
Amazon.com, Inc.a 60,000 4,567,500
Williams-Sonoma, Inc.a 121,300 5,579,800
10,147,300
Retail Grocery-- 1.8%
Kroger Companya 227,000 4,284,625
Software-- 17.0%
i2 Technologies, Inc.a 111,300 21,703,500
IMS Health, Inc. 240,000 6,525,000
Microsoft Corporationa 105,500 12,317,125
40,545,625
Telecommunications Equipment-- 14.2%
QUALCOMM, Inc. 116,000 20,430,500
RF Micro Devices, Inc.a 110,000 7,528,125
Vodafone AirTouch PLC ADRb 120,000 5,940,000
33,898,625
Trucking & Freight Forwarding-- 3.2%
United Parcel Service, Inc. 110,000 $ 7,590,000
Total Common Stocks
(cost $135,354,674) 237,319,769
Total Investments-- 99.7%
(cost $135,354,674)* 237,319,769
Other Assets Less Liabilities-- 0.3% 772,306
Net Assets-- 100.0% $238,092,075
a Non-income producing security
b ADR -- American Depositary Receipts
* Aggregate cost for Federal tax purposes is $135,416,300. 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 $108,362,808 and
$6,459,339, respectively. Net unrealized appreciation for tax purposes is
$101,903,469.
*See notes to financial statements
Transamerica Premier small company fund
Portfolio Manager: Christopher J. Bonavico, Co-Manager: Timothy S. Gaumer
Fund Performance
The Transamerica Premier Small Company Fund (Investor Class) had
an outstanding 1999. The Fund generated a total return of 93.99% for the
12-month period ended December 31, 1999, in comparison to a 21.26% advance by
the Russell 2000 Index for the same period. Since its inception in June 1997,
the Fund has earned an average annual total return of 80.17%, while the Russell
2000 has returned 11.48%.
For the 12-month period ended December 31, 1999, the Fund ranked in the top 10%
among the 762 small cap funds in the country, according to Lipper Analytical
Services, Inc.
Portfolio Manager Comments
We live in a time of remarkable innovation. New markets are emerging creating
many opportunities for small business entrepreneurs. The Fund has invested in
small companies that are leading change in several industries including
telecommunications, health sciences, and business services.
Stock selection is critical since rapid innovation creates not only opportunity,
but a shifting competitive landscape. We carefully analyze a management's
ability to capitalize on change before investing. The Fund concentrates its
holdings in those companies we believe can sustain their leadership in a rapidly
changing world.
Exodus Communications, for example, was early to recognize the need for
network-centric computing. We identified the opportunity, invested early and the
holding has appreciated over 35 times in value for the Fund. VeriSign, which
provides security for electronic transactions, has appreciated about 20 times
for the Fund. This company created a better method to secure electronic
transactions. Its solution proliferated rapidly becoming the industry standard,
and thus enjoys a tremendous barrier to competition.
Portfolio Asset Mix
Going Forward
We have a positive outlook for continued small company opportunities. In
particular, we favor small companies that have the skills to emerge as leaders
in their fields and grow into large, profitable enterprises. As strong as our
outlook is for the holdings in our current portfolio, we are always looking for
new ideas. We will continue to seek out growth opportunities in companies that
have the rarest asset of all -- great management focused on creating sustainable
shareholder wealth.
Thank you for your continued investment in the Transamerica Premier Small
Company Fund.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
TRANSAMERICA PREMIER SMALL COMPANY FUND WITH THE RUSSELL 2000 INDEX**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 80.17% 93.99%
Class A 76.13% 83.47%
Class M 78.84% 91.37%
Russell 2000 Index 11.48% 21.26%
Investor Class ($43,680 at 12/31/99) Class A ($41,267 at 12/31/99) Class M
($42,877 at 12/31/99) Russell 2000 Index ($13,121 at 12/31/99)
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 December 31, 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-- December 31, 1999
Market
Shares Value
Shares or Market
Principal Amount Value
COMMON STOCKS-- 94.5%
Auto Repair Centers-- 1.9%
Midas, Inc. 308,000 $ 6,737,500
Biological Products-- 3.6%
Millipore Corporation 325,000 12,553,125
Business Services-- 6.0%
NetRatings, Inc.a 202,000 9,721,250
ProBusiness Services, Inc.a 304,900 10,976,400
20,697,650
Chemicals-- 2.1%
Minerals Technologies, Inc. 182,200 7,299,388
Communication Services-- 18.5%
Redback Networks, Inc.a 76,000 13,490,000
VeriSign, Inc.a 266,000 50,789,375
64,279,375
Drugs & Health Care-- 5.5%
Alterra Healthcare Corporationa 144,000 1,197,000
ChiRex, Inc.a 370,000 5,411,250
Diametrics Medical, Inc.a 750,000 6,421,875
KeraVision, Inc.a 500,000 3,062,500
NovaMed Eyecare, Inc.a 428,000 2,889,000
18,981,625
Electronics-- 5.1%
Intel Corporation 50,000 4,115,625
QLogic Corporationa 85,000 13,589,375
17,705,000
Food & Beverages-- 2.0%
Dreyer's Grand Ice Cream, Inc. 400,000 6,800,000
Leisure & Entertainment-- 4.5%
Speedway Motorsports, Inc.a 324,500 9,025,156
Vail Resorts, Inc.a 370,000 6,636,875
15,662,031
Retail-- 4.0%
Amazon.com, Inc.a 124,000 9,439,500
Cheap Tickets, Inc.a 325,000 4,448,437
13,887,937
Software-- 23.3%
HNC Software, Inc.a 400,000 42,300,000
i2 Technologies, Inc.a 198,000 38,610,000
80,910,000
Technology-- 11.6%
Aspen Technology, Inc.a 142,000 3,754,125
Cymer, Inc.a 402,500 18,515,000
Exodus Communications, Inc.a 200,000 17,762,500
40,031,625
Telecommunications Equipment-- 3.4%
RF Micro Devices, Inc.a 175,000 $ 11,976,563
Transportation-- 3.0%
C.H. Robinson Worldwide, Inc. 263,000 10,454,250
Total Common Stocks
(cost $151,195,726) 327,976,069
REPURCHASE AGREEMENT-- 4.9%
State Street Bank and Trust Company,
2.50%, due 01/03/00, (collateralized
by $14,010,000 par value U.S. Treasury
Bond, 8.875%, due 08/15/17, with a
value of $17,424,938, cost $17,080,000) $17,080,000 17,080,000
Total Investments-- 99.4%
(cost $168,275,726)* 345,056,069
Other Assets Less Liabilities-- 0.6% 1,936,654
Net Assets-- 100.0% $346,992,723
a Non-income producing security
* Aggregate cost for Federal tax purposes is $168,548,367. 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 $191,166,497 and
$14,658,795, respectively. Net unrealized appreciation for tax purposes is
$176,507,702.
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's total return of 33.26% for 1999 marked the fourth
straight year that the Fund has outperformed the S&P 500. For 1999, the S&P 500
returned 21.04%. Since its inception, in October 1995, the Fund has earned an
average annual total return of 32.74%, while the S&P 500 has returned 26.37%.
Portfolio Manager Comments
Our recent research has driven us toward the world of wireless communications.
We believe that the demand for wireless data services is in its infant stages.
Consistent with our long-term investment approach, we look for the emerging
leaders.
Two new additions to our wireless investments were QUALCOMM and RF Micro
Devices. QUALCOMM is the leader in CDMA (Code Division Multiple Access) wireless
technology, a technology standard we believe will prevail as the dominant
wireless technology. RF Micro Devices is the leading provider of integrated
circuits that enable rapid wireless data applications.
Portfolio Asset Mix
Going Forward
We continue to hold a long-term bullish outlook on the stock market because of
the rapid technological innovation driving the economy. We believe that this
innovation will continue to keep productivity high and inflation and interest
rates low. We are interested in owning the dominant "creators" and "deployers"
of technology. Companies that have learned to create or deploy technology to
their benefit often garner tremendous competitive advantage. They are
"masterpieces," and we believe that investments in masterpieces are the key to
long-term wealth accumulation and superior investment performance.
Thank you for your continued investment in the Transamerica Premier Equity Fund.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
TRANSAMERICA PREMIER EQUITY FUND WITH THE S&P 500 INDEX**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 32.74% 33.26%
Class A 30.80% 25.91%
Class M 31.81% 31.31%
S&P 500 Index 26.37% 21.04%
Investor Class ($33,347 at 12/31/99) Class A ($31,322 at 12/31/99) Class M
($32,360 at 12/31/99) S&P 500 Index ($27,056 at 12/31/99)
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 December 31, 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-- December 31, 1999
Market
Shares Value
Principal Market
Amount Value
COMMON STOCKS-- 98.6%
Broadcasting-- 5.0%
Clear Channel Communications, Inc.a 180,000 $ 16,065,000
Business Services-- 5.3%
First Data Corporation 350,000 17,259,375
Commercial Services-- 3.2%
Sodexho Marriott Services, Inc. 790,000 10,270,000
Communication Services-- 9.3%
Qwest Communications International, Inc.a 350,000 15,050,000
VeriSign, Inc.a 80,000 15,275,000
30,325,000
Computers & Business Equipment-- 21.1%
Cisco Systems, Inc.a 190,000 20,353,750
Dell Computer Corporationa 390,000 19,890,000
EMC Corporationa 260,000 28,405,000
68,648,750
Drugs & Health Care-- 0.2%
KeraVision, Inc.a 130,000 796,250
Electronics-- 14.7%
Agilent Technologies, Inc.a 100,000 7,731,250
Applied Materials, Inc.a 185,000 23,437,187
Intel Corporation 200,000 16,462,500
47,630,937
Financial Services-- 7.1%
Charles Schwab Corporation 600,000 23,025,000
Hotels & Restaurants-- 3.4%
McDonald's Corporation 275,000 11,085,938
Retail-- 3.5%
Gap, Inc. 250,000 11,500,000
Retail Grocery-- 3.5%
Kroger Companya 600,000 11,325,000
Software-- 7.1%
IMS Health, Inc. 350,000 9,515,625
Microsoft Corporationa 115,000 13,426,250
22,941,875
Telecommunications Equipment-- 12.0%
QUALCOMM, Inc. 140,000 24,657,500
RF Micro Devices, Inc.a 100,000 6,843,750
Vodafone AirTouch PLC ADRb 150,000 7,425,000
38,926,250
Trucking & Freight Forwarding-- 3.2%
United Parcel Service, Inc. 150,000 10,350,000
Total Common Stocks
(cost $162,412,302) 320,149,375
REPURCHASE AGREEMENT-- 1.2%
State Street Bank and Trust Company 2.50%,
due 01/03/00, (collateralized by
$3,160,000 par value U.S. Treasury Bond,
8.875%, due 08/15/17, with a
value of $3,930,250, cost $3,852,000) $3,852,000 $3,852,000
Total Investments-- 99.8%
(cost $166,264,302)* 324,001,375
Other Assets Less Liabilities-- 0.2% 651,492
Net Assets-- 100.0% $324,652,867
a Non-income producing security
b ADR -- American Depositary Receipts
* 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 $167,794,005 and $10,056,932,
respectively. Net unrealized appreciation for tax purposes is $157,737,073.
See notes to financial statements
Transamerica Premier value Fund
Portfolio Manager: Daniel J. Prislin, Co-Manager: Jeffrey S. Van Harte
Fund Performance
The Transamerica Premier Value Fund (Investor Class) earned a total return of
7.37% for the 12-month period ended December 31, 1999. The fund's performance is
in line with peer averages such as the Morningstar Large Cap Value category,
which posted a total return of 6.4% in 1999. The fund trailed the 20.4% return
of the S&P 500 largely as a result of less concentration in technology sectors.
Since its inception in March 1998, the Fund has earned an average annual total
return of 7.77% relative to a 19.46% return for the S&P 500.
Portfolio Manager Comments
During 1999, favorable economic conditions helped drive another year of strong
performance in the equity markets. Inflation was subdued, interest rates
remained low by historical standards, and corporate earnings growth was strong.
The strength in the stock market, however, was driven by relatively few stocks,
largely concentrated in technology sectors.
The fund's orientation is toward more established businesses with visible cash
flows. With respect to technology, we will continue to opportunistically make
investments in some established technology leaders, but will more readily make
investments in the beneficiaries and deployers of technological innovation. In
evaluating all potential investments, we do not see "growth" and "value" as
mutually exclusive terms. In fact growth companies are often perceived as value
investments in the initial stages of our research.
We continue to discover many high quality businesses, across a variety of
industries, trading at substantial discounts to our determination of intrinsic
value. Some notable examples in 1999 include American Power Conversion, the
leader in power protection equipment, and Gap, the leading specialty apparel
retailer. Our underlying aim is to invest in high quality businesses at
reasonable prices, not to buy cheap stocks based on predetermined valuation
metrics.
Portfolio Asset Mix
Going forward
We maintain our positive long-term outlook for equity markets, given improving
global productivity, the benign inflation environment, and the far reaching
positive impacts from technological innovation. Given our investment philosophy
and horizon, we are quite comfortable continuing to invest in businesses with
strong cash flows and sustainable competitive advantages. This is especially
true if a company is unappreciated in the current market, as we are confident
the value in such investments will ultimately be recognized in the market. Thank
you for your continued investment in the Transamerica Premier Value Fund.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN
TRANSAMERICA PREMIER VALUE FUND WITH THE S&P 500 INDEX**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 7.77% 7.37%
Class A 4.35% 1.55%
Class M 6.77% 5.92%
S&P 500 Index 19.46% 21.04%
Investor Class ($11,401 at 12/31/99) Class A ($10,776 at 12/31/99) Class M
($11,218 at 12/31/99) S&P 500 Index ($13,660 at 12/31/99)
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 December 31, 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-- December 31, 1999
Market
Shares Value
Market
Shares Value
COMMON STOCKS-- 98.2%
Business Services-- 6.0%
First Data Corporation 11,400 $ 562,162
Chemicals-- 5.5%
Minerals Technologies, Inc. 7,000 280,437
Monsanto Company 6,600 235,125
515,562
Colleges & Universities-- 3.8%
Apollo Group, Inc., Class Aa 18,000 361,125
Commercial Services-- 2.6%
Sodexho Marriott Services, Inc. 19,000 247,000
Computers & Business Equipment-- 4.4%
EMC Corporationa 3,800 415,150
Containers & Packaging-- 1.9%
Sealed Air Corporationa 3,500 181,344
Drugs & Health Care-- 4.1%
Bristol-Myers Squibb Company 4,500 288,844
KeraVision, Inc.a 16,500 101,062
389,906
Electric Utilities-- 2.7%
Niagara Mohawk Power Corporationa 18,000 250,875
Electrical Equipment-- 6.1%
American Power Conversion Corporationa 21,600 569,700
Electronics-- 17.9%
Agilent Technologies, Inc.a 6,800 525,725
Applied Materials, Inc.a 4,800 608,100
Intel Corporation 6,700 551,494
1,685,319
Financial Services-- 2.3%
Knight/Trimark Group, Inc.a 4,700 216,200
Hotels & Restaurants-- 2.6%
McDonald's Corporation 6,000 241,875
Human Resources-- 2.7%
Robert Half International, Inc.a 9,000 257,063
Leisure & Entertainment-- 4.7%
Speedway Motorsports, Inc.a 16,000 445,000
Retail-- 6.6%
Gap, Inc. 8,800 404,800
Hollywood Entertainment Corporationa 15,000 217,500
622,300
Retail Grocery-- 10.4%
Kroger Companya 25,700 485,088
Safeway, Inc.a 13,800 490,762
975,850
Software-- 3.5%
IMS Health, Inc. 12,000 326,250
Technology-- 3.2%
Cymer, Inc.a 6,500 $ 299,000
Telecommunications-- 3.8%
US West, Inc. 5,000 360,000
Trucking & Freight Forwarding-- 3.4%
United Parcel Service, Inc. 4,700 324,300
Total Common Stocks
(cost $7,838,039) 9,245,981
PREFERRED STOCK-- 1.3%
Containers & Packaging-- 1.3%
Sealed Air Corporation
(cost $154,185) 2,500 126,250
Total Investments-- 99.5%
(cost $7,992,224)* 9,372,231
Other Assets Less Liabilities-- 0.5% 42,803
Net Assets-- 100.0% $9,415,034
a Non-income producing security
o Aggregate cost for Federal tax purposes is $8,004,532. 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
$2,158,449 and $790,750, respectively. Net unrealized appreciation for
tax purposes is $1,367,699.
See notes to financial statements
Transamerica Premier index Fund
Portfolio Manager: Lisa L. Hansen, Co-Manager: Thomas J. Ray
Fund Performance
The Transamerica Premier Index Fund (Investor Class) earned a total return of
20.65% for the 12-month period ended December 31, 1999, in comparison to a total
return of 21.04% for the S&P 500 Index for the same period. Since its inception
in October 1995, the Fund has earned an average annual return of 26.01%,
relative to a 26.37% 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
Overall, equity markets provided excellent returns to investors during 1999,
with many top tier companies posting positive results. The returns for the S&P
500 Index reflected this growth based on its composition of industry-leading
companies across most sectors of the economy. To achieve its goal, the Fund
invests in a package of stocks that mirrors the S&P 500 Index. It also holds
fixed-income investments and stock index futures. The combined Fund holdings are
designed to duplicate the total return of the S&P 500 Index over time.
Investment in the Fund is an efficient and effective strategy for investors who
want to be sure they are invested in leading companies in the US economy. While
the Fund may not match the S&P 500 Index precisely, in general, when the Index
is rising, the value of shares in the Fund should also rise. On the other hand,
when the Index is declining, the value of Fund shares should also decline.
Our diligent attention to readjustments in the composition of the S&P 500,
especially during the current highly charged merger and acquisition environment,
has proven particularly important. The companies in the S&P 500 Index are
industry leaders, and their competitive advantages should allow them to continue
to earn returns that consistently exceed those of their domestic and
international rivals.
Portfolio Asset Mix
Going Forward
We continue to expect positive returns for high-quality equity investments in
2000. While higher interest rates may slow economic growth, inflation should
remain moderate. The companies in the S&P 500 are well positioned to outperform
in this changing environment and should do well in the year ahead.
Thank you for your continued investment in the Transamerica Premier Index Fund.
Comparison of change in value of a $10,000 investment in transamerica premier
index fund with the s&p 500 index**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 26.01% 20.65%
Class A 24.12% 13.99%
Class M 25.11% 18.74%
S&P 500 Index 26.37% 21.04%
Investor Class ($26,728 at 12/31/99) Class A ($25,061 at 12/31/99) Class M
($25,920 at 12/31/99) S&P 500 Index ($27,056 at 12/31/99)
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 December 31, 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-- December 31, 1999
Market
Shares Value
Market
Shares Value
COMMON STOCKS-- 81.1%
Advertising-- 0.1%
Omnicom Group, Inc. 532 $ 53,200
Aerospace & Defense-- 0.8%
Boeing Company 3,292 136,824
Computer Sciences Corporationa 516 48,826
General Dynamics Corporation 650 34,288
Lockheed Martin Corporation 1,296 28,350
Northrop Grumman Corporation 225 12,164
Raytheon Company, Class B 1,096 29,113
Teledyne Technologies, Inc.a 85 802
TRW, Inc. 427 22,177
United Technologies Corporation 1,585 103,025
415,569
Agricultural Machinery-- 0.1%
Deere & Company 840 36,435
Air Travel-- 0.2%
AMR Corporationa 552 36,984
Delta Air Lines, Inc. 456 22,714
Southwest Airlines Company 1,611 26,078
US Airways Group, Inc.a 283 9,074
94,850
Aluminum-- 0.3%
Alcan Aluminum Ltd. 738 30,397
Alcoa, Inc. 1,158 96,114
Reynolds Metals Company 221 16,934
143,445
Apparel & Textiles-- 0.1%
Liz Claiborne, Inc. 233 8,767
Nike, Inc. 944 46,787
Reebok International Ltd.a 185 1,515
Russell Corporation 130 2,177
Springs Industries, Inc. 68 2,716
VF Corporation 424 12,720
74,682
Auto Parts-- 0.2%
Dana Corporation 520 15,568
Delphi Automotive Systems Corporation 1,848 29,106
Eaton Corporation 245 17,793
Genuine Parts Company 596 14,788
77,255
Automobiles-- 0.7%
Ford Motor Company 3,937 210,384
General Motors Corporation 2,130 154,824
PACCAR, Inc. 265 11,743
376,951
Banking-- 2.9%
AmSouth Bancorporation 1,310 $ 25,299
Banc One Corporation 3,807 122,062
Bank of New York Company, Inc. 2,472 98,880
BankAmerica Corporation 5,631 282,606
BB&T Corporation 958 26,225
Comerica, Inc. 545 25,445
Fifth Third Bancorp 956 70,146
First Union Corporation 3,224 105,787
FleetBoston Financial Corporation 2,912 101,374
Huntington Bancshares, Inc. 754 18,002
J.P. Morgan & Company, Inc. 604 76,481
KeyCorp 1,502 33,232
MBNA Corporation 2,470 67,307
National City Corporation 2,026 47,991
Northern Trust Corporation 740 39,220
Old Kent Financial Corporation 390 13,796
PNC Bank Corporation 981 43,655
Providian Financial Corporation 457 41,616
SouthTrust Corporation 525 19,852
Summit Bancorp 592 18,130
SunTrust Banks, Inc. 1,028 70,739
Synovus Financial Corporation 866 17,212
US Bancorp 2,357 56,126
Wachovia Corporation 656 44,608
1,465,791
Biological Products-- 0.1%
Millipore Corporation 146 5,639
PE Corporation-PE Biosystems Group 405 51,051
56,690
Broadcasting-- 0.7%
Clear Channel Communications, Inc.a 1,152 102,816
Comcast Corporation 2,460 124,384
Viacom, Inc.a 2,366 142,995
370,195
Building Construction-- 0.0%
Centex Corporation 197 4,863
Fluor Corporation 243 11,148
Kaufman & Broad Home Corporation 161 3,894
Pulte Corporation 136 3,060
22,965
Business Services-- 1.0%
Automatic Data Processing, Inc. 1,948 104,948
Deluxe Corporation 276 7,573
Ecolab, Inc. 430 16,824
Electronic Data Systems Corporation 1,618 108,305
First Data Corporation 1,465 72,243
H & R Block, Inc. 348 15,225
Humana, Inc.a 547 4,478
Interpublic Group Companies, Inc. 908 52,380
Paychex, Inc. 799 $ 31,960
R.R. Donnelley & Sons Company 480 11,910
Service Corporation International 900 6,244
Solectron Corporationa 800 76,100
The Dun & Bradstreet Corporation 566 16,697
524,887
Chemicals-- 1.2%
Air Products and Chemicals, Inc. 747 25,071
B.F. Goodrich Company 326 8,965
Dow Chemical Company 719 96,076
E.I. du Pont de Nemours and Company 3,333 219,561
Eastman Chemical Company 269 12,828
FMC Corporationa 106 6,075
Great Lakes Chemical Corporation 189 7,217
Hercules, Inc. 334 9,310
Mallinckrodt, Inc. 236 7,508
Monsanto Company 2,036 72,533
PPG Industries, Inc. 607 37,976
Praxair, Inc. 490 24,653
Rohm & Haas Company 685 27,871
Sigma-Aldrich Corporation 337 10,131
Union Carbide Corporation 436 29,103
Vulcan Materials Company 330 13,179
W.R. Grace & Companya 243 3,372
611,429
Communication Services-- 4.9%
America Online, Inc.a 7,194 542,697
Global Crossing Ltd.a 2,533 126,650
Lucent Technologies, Inc. 10,168 760,694
MediaOne Group, Inc.a 1,972 151,474
SBC Communications, Inc. 11,183 545,171
Yahoo!, Inc.a 855 369,948
2,496,634
Computers & Business Equipment-- 8.1%
3Com Corporationa 1,163 54,661
Apple Computer, Inc.a 516 53,051
Cabletron Systems, Inc.a 494 12,844
Ceridian Corporationa 464 10,005
Cisco Systems, Inc.a 11,318 1,212,441
Citrix Systems, Inc.a 295 36,285
Compaq Computer Corporation 5,533 149,737
Dell Computer Corporationa 8,802 448,902
EMC Corporationa 3,533 385,980
Gateway 2000, Inc.a 1,020 73,504
Hewlett-Packard Company 3,367 383,628
International Business Machines Corporation 5,863 633,204
Lexmark International Group, Inc., Class Aa 420 38,010
Network Appliance, Inc.a 470 39,039
Pitney Bowes, Inc. 952 45,993
Seagate Technology, Inc.a 753 35,062
Sun Microsystems, Inc.a 5,186 401,591
Tandy Corporation 646 $ 31,775
Unisys Corporationa 916 29,255
Xerox Corporation 2,144 48,642
4,123,609
Conglomerates-- 1.1%
CBS Corporationa 2,492 159,332
Cendant Corporationa 2,362 62,741
Gillette Company 3,591 147,904
Harcourt General, Inc. 232 9,338
Minnesota Mining & Manufacturing Company 1,358 132,914
Textron, Inc. 542 41,565
553,794
Construction & Mining Equipment-- 0.2%
Caterpillar, Inc. 1,166 54,875
Dover Corporation 740 33,577
Foster Wheeler Corporation 136 1,207
89,659
Construction Materials-- 0.1%
Armstrong World Industries, Inc. 132 4,406
Huttig Building Products, Inc.a 49 241
Masco Corporation 1,467 37,225
Owens Corning 165 3,187
Sherwin-Williams Company 568 11,928
56,987
Consumer Products-- 0.0%
American Greetings Corporation 239 5,646
Water Pik Technologies, Inc.a 30 287
5,933
Containers & Glass-- 0.1%
Ball Corporation 92 3,623
Bemis Company, Inc. 167 5,824
Crown Cork & Seal Company, Inc. 421 9,420
Owens-Illinois, Inc.a 483 12,105
Pactiv Corporationa 572 6,077
Temple-Inland, Inc. 192 12,660
49,709
Containers & Packaging-- 0.0%
Sealed Air Corporationa 289 14,974
Cosmetics & Toiletries-- 0.1%
Alberto-Culver Company 193 4,982
Avon Products, Inc. 878 28,974
International Flavors & Fragrances, Inc. 362 13,665
47,621
Drugs & Health Care-- 7.2%
Abbott Laboratories 4,935 179,202
Allergan, Inc. 428 21,293
Alza Corporationa 325 11,253
American Home Products Corporation 4,291 169,226
Amgen, Inc.a 3,492 $ 209,738
Bausch & Lomb, Inc. 195 13,345
Baxter International, Inc. 913 57,348
Becton, Dickinson & Company 819 21,908
Biomet, Inc. 371 14,840
Bristol-Myers Squibb Company 6,594 423,252
C.R. Bard, Inc. 176 9,328
Cardinal Health, Inc. 875 41,891
Columbia/HCA Healthcare Corporation 2,173 63,696
Eli Lilly & Company 3,577 237,871
Guidant Corporation 962 45,214
HEALTHSOUTH Corporationa 1,382 7,428
Johnson & Johnson 4,395 409,284
Manor Care, Inc.a 355 5,680
McKesson Corporation 884 19,945
Medtronic, Inc. 3,730 135,912
Merck & Company, Inc. 7,748 519,600
PerkinElmer, Inc.a 152 6,337
Pfizer, Inc. 12,967 420,617
Pharmacia & Upjohn, Inc. 1,665 74,925
Quintiles Transnational Corporationa 375 7,008
Schering-Plough Corporation 4,819 203,302
St. Jude Medical, Inc.a 267 8,194
Tenet Healthcare Corporationa 966 22,701
United Healthcare Corporation 607 32,247
Warner-Lambert Company 2,867 234,915
Watson Pharmaceuticals, Inc.a 315 11,281
Wellpoint Health Networks, Inc.a 219 14,440
3,653,221
Electric Utilities-- 1.3%
AES Corporationa 552 41,262
Ameren Corporation 447 14,639
American Electric Power Company 626 20,110
Carolina Power & Light Company 504 15,341
Central & South West Corporation 698 13,960
CINergy Corporation 516 12,449
CMS Energy Corporation 330 10,292
Consolidated Edison Company of
New York, Inc. 781 26,944
Constellation Energy Group 491 14,239
Dominion Resources, Inc. 607 23,825
DTE Energy Company 485 15,217
Duke Energy Corporation 1,179 59,097
Edison International 1,141 29,880
Entergy Corporation 772 19,879
FirstEnergy Corporation 768 17,424
Florida Progress Corporation 315 13,328
FPL Group, Inc. 599 25,645
GPU, Inc. 405 12,125
New Century Energies, Inc. 395 11,998
Niagara Mohawk Power Corporationa 603 8,404
Northern States Power Company 467 9,107
P P & L Resources, Inc. 491 11,233
PECO Energy Company 1,018 $ 35,375
PG & E Corporation 1,245 25,522
Pinnacle West Capital Corporation 280 8,558
Public Service Enterprise Group, Inc. 791 27,537
Reliant Energy, Inc. 921 21,068
Southern Company 2,242 52,687
Texas Utilities Company 917 32,611
Unicom Corporation 713 23,885
653,641
Electrical Equipment-- 3.7%
Boston Scientific Corporationa 1,226 26,819
Cooper Industries, Inc. 368 14,881
Emerson Electric Company 1,465 84,054
General Electric Company 10,840 1,677,490
Johnson Controls, Inc. 277 15,754
Molex, Inc. 513 29,081
National Service Industries, Inc. 135 3,983
W.W. Grainger, Inc. 324 15,491
1,867,553
Electronics-- 4.4%
Adaptec, Inc.a 333 16,608
Advanced Micro Devices, Inc.a 460 13,311
Analog Devices, Inc.a 555 51,615
Andrew Corporationa 292 5,530
Applied Materials, Inc.a 1,323 167,608
Honeywell International, Inc. 2,642 152,410
Intel Corporation 10,992 904,779
KLA Tencor Corporationa 276 30,739
LSI Logic Corporationa 441 29,768
Micron Technology, Inc.a 805 62,589
Motorola, Inc. 1,950 287,137
National Semiconductor Corporationa 546 23,376
Rockwell International Corporation 620 29,683
Scientific-Atlanta, Inc. 245 13,628
Silicon Graphics, Inc.a 599 5,878
Tektronix, Inc. 159 6,181
Tellabs, Inc. a 1,210 77,667
Teradyne, Inc.a 570 37,620
Texas Instruments, Inc. 2,695 261,078
Thomas & Betts Corporation 169 5,387
Xilinx, Inc.a 1,040 47,287
2,229,879
Financial Services-- 5.2%
American Express Company 1,471 244,554
Associates First Capital Corporation 2,348 64,423
Capital One Financial Corporation 621 29,924
Charles Schwab Corporation 2,608 100,082
Chase Manhattan Corporation 2,750 213,641
Citigroup, Inc. 11,085 615,910
Countrywide Credit Industries, Inc. 349 8,812
Equifax, Inc. 484 11,404
Federal Home Loan Mortgage Corporation 2,209 $ 103,961
Federal National Mortgage Association 3,374 210,664
Firstar Corporation 3,316 70,051
Franklin Resources, Inc. 809 25,939
Household International, Inc. 1,554 57,887
Lehman Brothers Holdings, Inc. 380 32,181
Mellon Financial Corporation 1,734 59,064
Merrill Lynch & Company, Inc. 1,138 95,023
Morgan Stanley Dean Witter & Co. 1,880 268,370
Paine Webber Group, Inc. 465 18,048
Regions Financial Corporation 690 17,336
SLM Holding Corporation 552 23,322
State Street Corporation 555 40,550
T. Rowe Price Associates, Inc. 400 14,775
The Bear Stearns Companies, Inc. 434 18,554
Union Planters Corporation 414 16,327
Washington Mutual, Inc. 1,933 50,258
Wells Fargo Company 5,511 222,851
2,633,911
Food & Beverages-- 2.5%
Archer-Daniels-Midland Company 2,064 25,155
Bestfoods 949 49,882
Campbell Soup Company 1,461 56,522
Coca-Cola Company 8,018 467,049
Coca-Cola Enterprises, Inc. 1,342 27,008
ConAgra, Inc. 1,598 36,055
General Mills, Inc. 1,044 37,323
H.J. Heinz Company 1,200 47,775
Hershey Foods Corporation 508 24,130
Kellogg Company 1,380 42,521
Nabisco Group Holdings Corporation 1,065 11,316
PepsiCo, Inc. 4,775 168,319
Quaker Oats Company 442 29,006
Ralston-Ralston Purina Group 1,040 28,990
Sara Lee Corporation 2,972 65,570
Sysco Corporation 1,159 45,853
Unilever NV and PLC 1,877 102,179
Wm. Wrigley Jr. Company 377 31,267
1,295,920
Gas & Pipeline Utilities-- 0.5%
Coastal Corporation 700 24,806
Columbia Gas System, Inc. 275 17,394
Consolidated Natural Gas Company 304 19,741
Eastern Enterprises 68 3,906
El Paso Energy Corporation 742 28,799
Enron Corporation 2,292 101,707
NICOR, Inc. 159 5,167
ONEOK, Inc. 86 2,161
People's Energy Corporation 122 4,087
The Williams Companies, Inc. 1,365 41,718
249,486
Gas Exploration and Distribution-- 0.2%
Anadarko Petroleum Corporation 415 $ 14,162
Apache Corporation 360 13,297
Burlington Resources, Inc. 726 24,003
Occidental Petroleum Corporation 1,089 23,550
Union Pacific Resources Group, Inc. 770 9,818
84,830
Gold & Mining-- 0.2%
Barrick Gold Corporation 1,200 21,225
Freeport-McMoRan Copper & Gold, Inc. 533 11,260
Homestake Mining Company 766 5,984
Newmont Mining Corporation 522 12,789
Phelps Dodge Corporation 225 15,103
Placer Dome, Inc. 1,100 11,825
78,186
Hotels & Restaurants-- 0.5%
Darden Restaurants, Inc. 493 8,935
Hilton Hotels Corporation 1,219 11,733
Marriott International, Inc. 819 25,850
McDonald's Corporation 4,540 183,019
Mirage Resorts, Inc.a 652 9,984
Tricon Global Restaurants, Inc.a 511 19,737
Wendy's International, Inc. 415 8,559
267,817
Household Appliances & Products-- 1.6%
Black & Decker Corporation 293 15,309
Clorox Company 760 38,285
Colgate-Palmolive Company 1,918 124,670
Corning, Inc. 830 107,018
Maytag Corporation 295 14,160
Newell Rubbermaid, Inc. 920 26,680
Procter & Gamble Company 4,318 473,091
Snap-On, Inc. 205 5,445
The Stanley Works 293 8,827
Tupperware Corporation 206 3,489
Whirlpool Corporation 237 15,420
832,394
Industrial Machinery-- 0.8%
Briggs & Stratton Corporation 85 4,558
Crane Company 220 4,372
Cummins Engine Company, Inc. 133 6,426
Illinois Tool Works, Inc. 999 67,495
Ingersoll-Rand Company 548 30,174
ITT Industries, Inc. 295 9,864
Milacron, Inc. 126 1,937
NACCO Industries, Inc. 21 1,167
Pall Corporation 403 8,690
Parker Hannifin Corporation 365 18,729
Thermo Electron Corporationa 502 7,530
Timken Company 209 4,271
Tyco International Ltd. 5,803 225,592
390,805
Insurance-- 2.4%
Aetna Life & Casualty Company 497 $ 27,739
AFLAC, Inc. 900 42,469
Allstate Corporation 2,674 64,176
American General Corporation 797 60,472
American International Group, Inc. 5,026 543,436
Aon Corporation 814 32,560
Chubb Corporation 577 32,492
CIGNA Corporation 739 59,536
Cincinnati Financial Corporation 542 16,904
Conseco, Inc. 1,025 18,322
Hartford Financial Services Group, Inc. 785 37,189
Jefferson-Pilot Corporation 353 24,092
Lincoln National Corporation 692 27,680
Loews Corporation 378 22,940
Marsh & McLennan Companies, Inc. 792 75,784
MBIA, Inc. 311 16,425
MGIC Investment Corporation 413 24,857
Progressive Corporation Ohio 232 16,965
Safeco Corporation 420 10,448
St. Paul Companies, Inc. 771 25,973
Torchmark Corporation 460 13,369
UNUM Corporation 763 24,464
1,218,292
Investment Companies-- 1.3%
Standard and Poor's Depository Receipts 4,518 663,581
Leisure & Entertainment-- 0.6%
Brunswick Corporation 331 7,365
Carnival Corporation 1,900 90,843
Harrah's Entertainment, Inc.a 418 11,051
The Walt Disney Company 6,696 195,858
305,117
Liquor-- 0.4%
Adolph Coors Company 130 6,825
Anheuser-Busch Companies, Inc. 1,556 110,282
Brown-Forman Corporation 225 12,881
The Seagram Company Ltd. 1,370 61,564
191,552
Manufacturing-- 0.1%
Danaher Corporation 414 19,976
Leggett & Platt, Inc. 640 13,720
33,696
Mobile Homes-- 0.0%
Fleetwood Enterprises, Inc. 112 2,310
MultiMedia-- 0.6%
Time Warner, Inc. 4,330 313,654
Newspapers-- 0.4%
Dow Jones & Company, Inc. 310 21,080
Gannett Company, Inc. 931 75,935
Knight-Ridder, Inc. 258 15,351
New York Times Company 639 $31,391
Times Mirror Company 260 17,420
Tribune Company 838 46,142
207,319
Non-Ferrous Metals-- 0.0%
Engelhard Corporation 483 9,117
Inco Ltd. 487 11,444
20,561
Office Furnishings & Supplies-- 0.1%
Avery Dennison Corporation 351 25,579
Ikon Office Solutions, Inc. 490 3,338
28,917
Oil-- 3.8%
Amerada Hess Corporation 302 17,139
Ashland, Inc. 221 7,279
Atlantic Richfield Company 1,066 92,209
Chevron Corporation 2,156 186,763
Conoco, Inc., Class B 2,060 51,242
Exxon Mobil Corporation 11,513 927,516
Kerr-McGee Corporation 288 17,856
Phillips Petroleum Company 866 40,702
Royal Dutch Petroleum Company 7,050 426,084
Sempra Energy 815 14,161
Sunoco, Inc. 257 6,040
Texaco, Inc. 1,772 96,242
Tosco Corporation 500 13,594
Unocal Corporation 811 27,219
USX-Marathon Group 964 23,799
1,947,845
Paper & Forest Products-- 0.7%
Boise Cascade Corporation 175 7,088
Champion International Corporation 309 19,139
Fort James Corporation 715 19,573
Georgia-Pacific Corporation 598 30,348
International Paper Company 1,325 74,780
Kimberly-Clark Corporation 1,830 119,407
Louisiana-Pacific Corporation 359 5,116
Mead Corporation 353 15,333
Potlatch Corporation 90 4,016
Westvaco Corporation 341 11,125
Weyerhaeuser Company 768 55,152
Willamette Industries, Inc. 363 16,857
377,934
Petroleum Services-- 0.4%
Baker Hughes, Inc. 1,057 22,263
Halliburton Company 1,392 56,028
McDermott International, Inc. 190 1,722
Rowan Companies, Inc.a 282 6,116
Schlumberger Ltd. 1,761 99,056
Transocean Sedco Forex, Inc. 700 23,579
208,764
Photography-- 0.1%
Eastman Kodak Company 1,103 $ 73,074
Polaroid Corporation 147 2,765
75,839
Pollution Control-- 0.1%
Allied Waste Industries, Inc.a 595 5,243
Waste Management, Inc. 1,869 32,129
37,372
Publishing-- 0.1%
Jostens, Inc. 115 2,796
McGraw-Hill Companies, Inc. 678 41,782
Meredith Corporation 171 7,128
51,706
Railroads & Equipment-- 0.2%
Burlington Northern Santa Fe 1,467 35,574
CSX Corporation 709 22,245
Union Pacific Corporation 750 32,719
90,538
Retail-- 4.9%
AutoZone, Inc.a 484 15,639
Bed Bath & Beyond, Inc.a 442 15,360
Best Buy Company, Inc.a 675 33,877
Circuit City Stores-Circuit City Group 664 29,922
Consolidated Stores Corporationa 345 5,606
Costco Companies, Inc.a 680 62,050
CVS Corporation 1,268 50,641
Dayton Hudson Corporation 1,430 105,016
Dillard's, Inc. 370 7,469
Dollar General Corporation 736 16,744
Federated Department Stores, Inc.a 687 34,736
Gap, Inc. 2,827 130,042
Home Depot, Inc. 7,506 514,630
J.C. Penney Company, Inc. 775 15,452
Kmart Corporationa 1,551 15,607
Kohl's Corporationa 533 38,476
Limited, Inc. 699 30,275
Longs Drug Stores Corporation 135 3,485
Lowe's Companies, Inc. 1,205 71,999
May Department Stores Company 1,174 37,861
Nordstrom, Inc. 523 13,696
Office Depot, Inc.a 1,220 13,344
Pep Boys-Manny, Moe & Jack 176 1,606
Rite-Aid Corporation 838 9,375
Sears, Roebuck & Company 1,291 39,295
Staples, Inc.a 1,449 30,067
SUPERVALU, Inc. 409 8,180
TJX Companies, Inc. 986 20,151
Toys " " Us, Inc.a 906 12,967
Wal-Mart Stores, Inc. 14,660 1,013,372
Walgreen Company 3,266 95,530
2,492,470
Retail Grocery-- 0.3%
Albertson's, Inc. 1,413 $ 45,569
Great Atlantic & Pacific Tea Company, Inc. 131 3,652
Kroger Companya 2,736 51,642
Safeway, Inc.a 1,518 53,984
Winn-Dixie Stores, Inc. 500 11,969
166,816
Savings & Loan-- 0.0%
Golden West Financial Corporation 597 20,000
Software-- 5.8%
Adobe Systems, Inc. 456 30,666
Autodesk, Inc. 192 6,480
BMC Software, Inc.a 671 53,638
Computer Associates International, Inc. 1,798 125,748
Compuware Corporationa 1,200 44,700
IMS Health, Inc. 1,041 28,302
Microsoft Corporationa 17,351 2,025,729
Novell, Inc.a 1,176 46,967
Oracle Corporationa 5,015 561,993
Parametric Technology Corporationa 882 23,869
PeopleSoft, Inc. 752 16,027
Shared Medical Systems Corporation 77 3,922
2,968,041
Steel-- 0.1%
Allegheny Technologies, Inc. 300 6,731
Bethlehem Steel Corporationa 422 3,534
Nucor Corporation 289 15,841
USX-US Steel Group 281 9,273
Worthington Industries, Inc. 302 5,002
40,381
Telecommunications-- 5.0%
Alltel Corporation 1,000 82,688
AT&T Corporation 10,376 526,582
Bell Atlantic Corporation 5,051 310,952
BellSouth Corporation 6,363 297,868
CenturyTel, Inc. 435 20,608
GTE Corporation 3,174 223,965
MCI WorldCom, Inc.a 9,450 501,441
Nextel Communications, Inc.a 1,185 122,203
Sprint Corporation (Fon Group) 2,914 196,149
Sprint Corporation (PCS Group)a 1,543 158,157
US West, Inc. 1,620 116,640
2,557,253
Telecommunications Equipment-- 1.9%
ADC Telecommunications, Inc.a 430 31,202
Comverse Technology, Inc.a 230 33,292
General Instrument Corporationa 538 45,730
Nortel Networks Corporation 4,649 469,549
QUALCOMM, Inc. 2,296 404,383
984,156
Tires & Rubber-- 0.0%
Cooper Tire & Rubber Company 239 $3,719
Goodyear Tire & Rubber Company 507 14,291
18,010
Tobacco-- 0.4%
Fortune Brands, Inc. 583 19,276
Philip Morris Companies, Inc. 7,922 183,691
UST, Inc. 612 15,415
218,382
Toys & Amusements-- 0.1%
Hasbro, Inc. 646 12,315
Mattel, Inc. 1,353 17,758
30,073
Transportation-- 0.1%
Kansas City Southern Industries, Inc. 357 26,641
Norfolk Southern Corporation 1,256 25,748
52,389
Trucking & Freight Forwarding-- 0.1%
FDX Corporationa 968 39,628
Navistar International Corporationa 235 11,133
Ryder System, Inc. 247 6,036
56,797
Total Common Stocks
(cost $25,893,193) 41,380,672
COMMERCIAL PAPER-- DOMESTIC-- 15.3%
Commercial Financial Services-- 3.4%
General Electric Capital Corporation
5.810% 03/16/00 $900,000 889,106
IBM Credit Corporation
5.720% 03/16/00 850,000 839,871
1,728,977
Consumer Financial Services-- 0.2%
Ford Motor Credit Company
6.250% 01/11/00 100,000 99,826
Financial Services-- 11.7%
Caterpillar Financial Services
6.500% 01/25/00 1,000,000 995,667
Corporate Asset Funding Corporation
6.500% 01/18/00 2,000,000 1,993,861
6.350% 01/24/00 1,000,000 995,943
Merrill Lynch & Company, Inc.
6.370% 01/19/00 1,000,000 996,815
6.270% 01/24/00 1,000,000 995,994
5,978,280
Total Commercial Paper-- Domestic
(cost $7,807,083) 7,807,083
U.S. GOVERNMENT SECURITY-- 1.9%
U.S. Treasury Bill
(cost $989,198)* 5.185% 03/16/00 $1,000,000 $ 989,198
REPURCHASE AGREEMENT-- 1.4%
State Street Bank & Trust Company,
2.50%, due 01/03/00, (collateralized by
$635,000 par value U.S. Treasury Note,
7.875%, due 02/15/21, with
a value of $729,456, cost $712,000) 712,000 712,000
Total Investments-- 99.7%
(cost $35,401,474)** 50,888,953
Other Assets Less Liabilities-- 0.3% 172,552
Net Assets-- 100.0% $51,061,505
a Non-income producing security
* $989,198 market value of securities has been pledged as collateral
for initial margin for futures contracts. ** Aggregate cost for Federal tax
purposes is $35,441,832. 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 $16,806,801 and $1,359,680, respectively. Net
unrealized appreciation for tax purposes is $15,447,121.
See notes to financial statements
Schedule of futures contracts
Number of Contract Total Unrealized
Contracts Description Contract Value Gain
28 S&P 500 $10,389,400 $400,225
March 2000
(Long)
Transamerica Premier balanced Fund
Portfolio Manager: Gary U. Rolle, Co-Managers: Jeffrey S. Van Harte, Heidi Y. Hu
Fund Performance
The Transamerica Premier Balanced Fund (Investor Class) returned 14.81% for the
12-month period ended December 31, 1999. In comparison, the benchmark indexes,
the S&P 500 Index and the Lehman Brothers Government/Corporate Bond Index
returned 21.04% and -2.15%, respectively. Since the Fund's inception in October
1995, it has achieved an average annual return of 22.50%.
Portfolio Manager Comments
Mirroring the market in general, the performance of the Fund in 1999 continued
to be driven by its stock holdings, with the most significant gains coming in
the fourth quarter. Some particularly attractive holdings in our portfolio
include QUALCOMM, Applied Materials, Cisco, Schwab, Intel, JDS Uniphase, the
leader in optical components for the broadband communications market, and AES, a
rapidly growing worldwide utility.
In contrast, fixed income returns were at their lowest point since 1994.
Corporate bonds outperformed US Treasuries by a significant margin, however, and
the Fund benefited from its concentration in the bonds of premier companies
expected to outperform. In addition, the Fund was able to take advantage of a
mid-year yield pick up, and a capital appreciation pick up in the latter part of
the year. Some credit selections that worked out particularly well included
Centaur Funding and PEMEX.
Portfolio Asset Mix
Going Forward
We expect that the economy will continue to grow and that inflation will remain
relatively low. Although the Federal Reserve will no doubt raise interest rates
during the first quarter, it should continue with the incremental approach it
has taken in the past to quash inflation. We think fixed income rates have moved
closer to a peak than a cyclical bottom, and expect solidly positive returns
from our fixed holdings this year. We believe the Fund is poised to deliver
impressive returns in 2000. The equity portion of our portfolio continues to
hold companies with bright futures, while our fixed income component is
positioned to cushion volatility with high yields.
Thank you for your continued investment in the Transamerica Premier Balanced
Fund.
comparison of change in value of a $10,000 investment in transamerica premier
balanced fund with lehman brothers government/corporate bond index and s&p 500
index**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 22.50% 14.81%
Class A 20.71% 8.47%
Class M 21.67% 13.18%
S&P 500 Index 26.37% 21.04%
Lehman Brothers Government/
Corporate Bond Index 5.70% -2.15%
Investor Class ($23,700 at 12/31/99) Class A ($22,262 at 12/31/99) Class M
($23,025 at 12/31/99) S&P 500 Index ($27,056 at 12/31/99)
Lehman Brothers Government/Corporate Bond Index ($12,661 at 12/31/99)
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 December 31, 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-- December 31, 1999
Shares or Market
Principal Amount Value
COMMON STOCKS-- 67.2%
Air Travel-- 0.2%
Southwest Airlines Company 10,000 $161,875
Chemicals-- 1.8%
Minerals Technologies, Inc. 30,000 1,201,875
Communication Services-- 4.3%
Lucent Technologies, Inc. 20,000 1,496,250
Qwest Communications International, Inc.a 30,000 1,290,000
2,786,250
Computers & Business Equipment-- 9.9%
Cisco Systems, Inc.a 31,500 3,374,437
Dell Computer Corporationa 33,000 1,683,000
Hewlett-Packard Company 12,000 1,367,250
6,424,687
Drugs & Health Care-- 2.6%
Merck & Company, Inc. 25,000 1,676,563
Electric Utilities-- 2.1%
AES Corporationa 10,000 747,500
Calpine Corporationa 10,000 640,000
1,387,500
Electrical Equipment-- 0.6%
American Power Conversion Corporationa 15,000 395,625
Electronics-- 12.7%
Agilent Technologies, Inc.a 6,500 502,531
Applied Materials, Inc.a 26,000 3,293,875
Intel Corporation 54,400 4,477,800
8,274,206
Financial Services-- 6.8%
Charles Schwab Corporation 33,000 1,266,375
Merrill Lynch & Company, Inc. 20,000 1,670,000
State Street Corporation 20,000 1,461,250
4,397,625
Hotels & Restaurants-- 1.5%
Marriott International, Inc. 30,500 962,656
Insurance-- 3.1%
American International Group, Inc. 18,750 2,027,344
Petroleum Services-- 1.0%
Schlumberger Ltd. 10,000 562,500
Transocean Sedco Forex, Inc. 1,936 65,219
627,719
Publishing-- 2.4%
McGraw-Hill Companies, Inc. 25,000 1,540,625
Retail-- 2.5%
Williams-Sonoma, Inc.a 35,000 1,610,000
Retail Grocery-- 1.4%
Kroger Companya 50,000 943,750
Software-- 4.0%
Microsoft Corporationa 22,000 $2,568,500
Telecommunications-- 2.5%
JDS Uniphase Corporationa 10,000 1,613,125
Telecommunications Equipment-- 5.0%
General Motors Corporation, Class Ha 10,000 960,000
QUALCOMM, Inc. 10,000 1,761,250
Vodafone AirTouch PLC ADRd 10,000 495,000
3,216,250
Trucking & Freight Forwarding-- 2.8%
United Parcel Service, Inc. 26,000 1,794,000
Total Common Stocks
(cost $24,174,377) 43,610,175
PREFERRED STOCK-- 1.2%
Financial Services-- 1.2%
Centaur Funding Corporationb
(cost $890,976) 800 810,160
CORPORATE BONDS-- 25.4%
Advertising-- 0.7%
Valassis Communications, Inc.
6.625% 01/15/09 $500,000 452,150
Beverages-- 1.4%
Pepsi Bottling Group, Inc.
7.000% 03/01/29 1,000,000 904,720
Broadcasting-- 0.8%
Viacom, Inc.
7.750% 06/01/05 500,000 503,265
Drugs & Health Care-- 0.5%
Alternate Living Services, Inc.
5.250% 12/15/02 500,000 301,250
Electric Utilities-- 3.9%
Cleveland Electric Illuminating Company
7.430% 11/01/09 500,000 474,615
7.880% 11/01/17 500,000 474,200
Commonwealth Edison Company
7.000% 07/01/05 300,000 294,780
Niagara Mohawk Power Corporation
7.625% 10/01/05 756,098 754,094
Western Massachusetts Electric Company
6.875% 01/01/00 500,000 500,000
2,497,689
Finance & Banking-- 3.8%
Key Bank, N.A.
7.125% 08/15/06 $ 500,000 $ 487,900
Korea Development Bank
7.125% 04/22/04 1,000,000 974,660
Mellon Bank Corporation
7.000% 03/15/06 300,000 294,237
Sears Roebuck Acceptance Corporation
7.260% 04/21/03 500,000 493,240
The Money Store, Inc.
8.375% 04/15/04 200,000 207,634
2,457,671
Financial Services-- 2.3%
Chase Manhattan Corporation
7.125% 03/01/05 500,000 494,085
Merrill Lynch & Company, Inc.
6.640% 09/19/02 500,000 494,710
PEMEX Finance Ltd.
9.690% 08/15/09 500,000 515,650
1,504,445
Gas Exploration and Distribution-- 1.3%
Gulf Canada Resources Ltd.
8.250% 03/15/17 390,000 346,254
Triton Energy Ltd.
9.250% 04/15/05 500,000 506,250
852,504
Hotels & Restaurants-- 0.4%
Mirage Resorts, Inc.
6.750% 02/01/08 300,000 263,559
Industrial-- 0.5%
Spinnaker Industries, Inc.
10.750% 10/15/06 500,000 350,000
Leisure & Entertainment-- 1.5%
Premier Parks, Inc.
9.750% 01/15/07 975,000 996,938
MultiMedia-- 0.8%
Time Warner, Inc.
9.125% 01/15/13 500,000 547,580
Paper & Forest Products-- 1.4%
Abitibi-Consolidated, Inc.
6.950% 04/01/08 1,000,000 912,680
Retail-- 2.4%
Dayton Hudson Corporation
6.400% 02/15/03 300,000 293,556
Saks, Inc.
8.250% 11/15/08 1,000,000 972,900
Shoppers Food Warehouse Corporation
9.750% 06/15/04 275,000 294,937
1,561,393
Telecommunications-- 0.8%
MCI Communications Corporationc
6.125% 04/15/02 $ 500,000 $ 491,890
Transportation-- 2.9%
Norfolk Southern Corporation
9.000% 03/01/21 500,000 550,795
Offshore Logistics, Inc.
6.000% 12/15/03 1,000,000 840,000
Union Pacific Corporation
6.400% 02/01/06 500,000 470,230
1,861,025
Total Corporate Bonds
(cost $17,396,526) 16,458,759
U.S. GOVERNMENT SECURITIES-- 5.1%
U.S. Treasury Bond
6.375% 08/15/27 1,200,000 1,152,564
U.S. Treasury Notes
6.375% 08/15/02 400,000 400,876
5.875% 11/15/05 370,000 359,189
5.625% 05/15/08 1,500,000 1,410,930
Total U.S. Government Securities
(cost $3,523,514) 3,323,559
REPURCHASE AGREEMENT-- 0.7%
State Street Bank and Trust Company,
2.50%, due 01/03/00, (collateralized
by $375,000 par value U.S. Treasury
Bond, 8.875%, due 08/15/17, with
a value of $466,406, cost $456,000) 456,000 456,000
Total Investments-- 99.6%
(cost $46,441,393)* 64,658,653
Other Assets Less Liabilities-- 0.4% 268,532
Net Assets-- 100.0% $64,927,185
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 December 31, 1999, these securities aggregated $810,160 or 1.25% of
the net assets of the Fund.
c Variable rate security
d ADR-- American Depositary Receipts.
* 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 $20,506,494 and $2,289,234,
respectively. Net unrealized appreciation for tax purposes is $18,217,260.
See notes to financial statements
Transamerica Premier HIGH YIELD BOND Fund
Portfolio Manager: Matthew W. Kuhns, Co-Managers: Thomas J. Ray, Edward S. Han
Fund Performance
The Transamerica Premier High Yield Bond Fund (Investor Class) earned a total
return of 5.43% for the 12-month period ended December 31, 1999. In comparison,
the Fund's benchmark, the Merrill Lynch High Yield Master Index returned 1.57%
for the same period.
Portfolio Manager Comments
In comparison to other sectors of the fixed income market, the high yield bond
market had an exceptionally good year in 1999. A rebound in investor confidence
in financial market prospects, as well as dramatic strengthening in the global
economy was responsible for the strong performance. In particular, European
economies became more vigorous, and Asia's economies showed impressive
resilience in 1999. At the same time, the US economy continued to trend upwards,
with GDP growth exceeding most economists' forecasts. These factors caused
investor demand for high yield bonds to increase.
The Fund outperformed the market by being overweighted in industries that
performed especially well, including telecommunications (which was the best
performing sector in the high yield market), energy and supermarkets. In
particular, Stater Brothers Holdings, a southern California regional supermarket
operator, provided a generous return.
Portfolio Asset Mix
Going Forward
We expect economic growth to slow to a more moderate pace in 2000, as the backup
of interest rates that occurred in 1999 starts to ripple through the economy. We
believe the Fund is well positioned for the coming year due to over weighting in
sectors that should continue to outperform the overall high yield market. The
telecommunications sector, in particular, is poised to perform particularly
well. We will continue to select high yield bonds from companies with strong
experienced management teams and high quality, valuable asset bases.
Thank you for your continued investment in the Transamerica Premier High Yield
Bond Fund.
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 December 31, 1999 Since Inception* One Year
Investor Class 12.35% 5.43%
Institutional Class 12.59% 5.50%
Merrill Lynch High Yield Master Index 11.57% 1.57%
Investor Class ($29,663 at 12/31/99)
Institutional Class ($30,248 at 12/31/99)
Merrill Lynch High Yield Master Index ($27,789 at 12/31/99)
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 December 31, 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-- December 31, 1999
Principal Market
Amount Value
Principal Market
Amount Value
CORPORATE BONDS-- 82.2%
Advertising-- 4.7%
Lamar Advertising Company
8.625% 09/15/07 $2,500,000 $2,475,000
Outdoor Systems, Inc.
9.375% 10/15/06 250,000 256,875
R H Donnelley Corporation
9.125% 06/01/08 1,000,000 980,000
3,711,875
Air Travel-- 1.6%
GPA Holland BV
9.750% 12/10/01 250,000 248,750
9.640% 02/06/07 1,000,000 980,000
1,228,750
Broadcasting -- 8.1%
Australis Media Ltd.a,c
0.000% 05/15/03 8,930 1
CF Cable TV, Inc.
11.625% 02/15/05 1,260,000 1,338,435
9.125% 07/15/07 1,500,000 1,567,050
Chancellor Media Corporation
9.375% 10/01/04 1,000,000 1,032,500
Citadel Broadcasting Company
9.250% 11/15/08 500,000 500,000
Sinclair Broadcast Group, Inc.
8.750% 12/15/07 1,000,000 925,000
Young Broadcasting, Inc.
10.125% 02/15/05 1,000,000 1,017,500
6,380,486
Drugs & Health Care-- 3.1%
Alternate Living Services, Inc.
5.250% 12/15/02 650,000 391,625
Express Scripts, Inc.
9.625% 06/15/09 1,000,000 1,015,000
MedPartners, Inc.d
9.680% 06/15/01 649,078 616,624
7.375% 10/01/06 500,000 423,750
2,446,999
Finance & Banking-- 1.3%
Ono Finance PLC
13.000% 05/01/09 1,000,000 1,030,000
Food & Beverages-- 1.7%
Beatrice Foods, Inc.
1.000% 11/19/26 494,000 74,100
CFP Holdings, Inc.
11.625% 01/15/04 1,500,000 1,248,750
1,322,850
Hotels & Restaurants-- 0.7%
John Q. Hammons Hotels, Inc.
8.875% 02/15/04 600,000 546,000
Industrial-- 2.9%
Cambridge Industries, Inc.
10.250% 07/15/07 $1,500,000 $ 525,000
Scotts Companyb
8.625% 01/15/09 750,000 735,000
Spinnaker Industries, Inc.
10.750% 10/15/06 1,500,000 1,050,000
2,310,000
Leisure & Entertainment-- 6.3%
Boyd Gaming Corporation
9.250% 10/01/03 1,270,000 1,285,875
Premier Parks, Inc.
9.750% 01/15/07 3,600,000 3,681,000
4,966,875
MultiMedia -- 0.6% Ackerley Group, Inc.
9.000% 01/15/09 500,000 485,000
Newspapers-- 0.6%
Garden State Newspapers, Inc.
8.625% 07/01/11 500,000 457,500
Oil & Gas Exploration-- 3.8%
Gulf Canada Resources Ltd.
9.250% 01/15/04 1,000,000 987,790
Petroleos Mexicanos
8.850% 09/15/07 500,000 478,750
9.375% 12/02/08 500,000 511,875
Pride Pete Services, Inc.
9.375% 05/01/07 1,000,000 997,500
2,975,915
Retail-- 9.7%
Fred Meyer, Inc.
7.450% 03/01/08 3,000,000 2,921,400
Jitney-Jungle Stores of America, Inc.e
12.000% 03/01/06 2,000,000 420,000
Shoppers Food Warehouse Corporation
9.750% 06/15/04 4,000,000 4,290,000
7,631,400
Retail Grocery-- 7.7%
Pathmark Stores, Inc.
9.625% 05/01/03 2,750,000 2,035,000
Stater Brothers Holdings, Inc.
10.750% 08/15/06 4,000,000 4,040,000
6,075,000
Software -- 1.7%
Earthwatch, Inc.a,c
0.000% 07/15/07 2,000,000 1,380,000
Steel-- 0.6%
Hylsa SA de CVb
9.250% 09/15/07 500,000 445,000
Technology-- 3.5%
Exodus Communications, Inc.b
4.750% 07/15/08 $2,000,000 $ 2,760,000
Telecommunications-- 11.0%
Bresnan Communications Group
8.000% 02/01/09 500,000 499,375
EchoStar Communications Corporationb
4.875% 01/01/07 1,000,000 1,235,000
Intermedia Communications, Inc.a,c
0.000% 05/15/06 2,000,000 1,750,000
International CableTel, Inc.a,c
0.000% 04/15/05 1,000,000 1,000,000
MCI WorldCom, Inc.
8.875% 01/15/06 37,000 38,834
NEXTLINK Communications, Inc.
9.000% 03/15/08 2,000,000 1,895,000
Rogers Cantel Mobile Communications, Inc.
9.375% 06/01/08 613,000 637,520
WinStar Communications, Inc.a,c
14.500% 10/15/05 1,000,000 1,580,000
8,635,729
Telecommunications Equipment-- 3.9%
L-3 Communications Holdings, Inc.
10.375% 05/01/07 2,500,000 2,593,750
World Access, Inc.
13.250% 01/15/08 500,000 455,000
3,048,750
Telecommunications Services-- 6.6%
Metromedia Fiber Network, Inc.
10.000% 11/15/08 400,000 409,000
10.000% 12/15/09 1,500,000 1,533,750
Metronet Communications Corporationa,c
0.000% 11/01/07 2,000,000 1,691,300
0.000% 06/15/08 2,000,000 1,579,040
5,213,090
Transportation -- 2.1% MTL, Inc.
10.000% 06/15/06 1,000,000 870,000
Offshore Logistics, Inc.
6.000% 12/15/03 950,000 798,000
1,668,000
Total Corporate Bonds
(cost $68,652,956) 64,719,219
COMMON STOCKS-- 2.7%
Auto Parts-- 0.3%
Harvard Industries, Inc.a 27,466 $ 209,428
Finance & Banking-- 0.0%
Ono Finance PLCa 1,000 11,400
Newspapers-- 0.3%
Affiliated Newspapers Investments, Inc.b 2,000 250,000
Retail Grocery-- 0.8%
Kroger Companya 34,444 650,130
Telecommunications-- 1.3%
Nextel Communications, Inc.a 9,678 998,041
Telecommunications Equipment-- 0.0%
World Access, Inc.a 1,571 30,243
Total Common Stocks
(cost $1,453,734) 2,149,242
PREFERRED STOCKS-- 4.6%
Broadcasting-- 0.9%
CSC Holdings, Inc. 6,113 672,477
Financial Services-- 1.2%
Sinclair Capital 10,000 970,000
Telecommunications Services-- 2.5%
Global Crossing Ltd. 20,000 2,010,000
Total Preferred Stocks
(cost $3,684,029) 3,652,477
REPURCHASE AGREEMENT-- 8.7%
State Street Bank and Trust Company
2.50%, due 01/03/00, (collateralized
by $5,625,000 par value U.S. Treasury
Bond, 8.875%, due 08/15/17, with a
value of $6,996,094, cost $6,853,000) $6,853,000 6,853,000
Total Investments-- 98.2%
(cost $80,643,719)* 77,373,938
Other Assets Less Liabilities-- 1.8% 1,394,802
Net Assets-- 100.0% $78,768,740
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 December 31, 1999, these securities aggregated $5,425,000 or 6.89% of
the net assets of the Fund.
c Step Bond-- coupon rate increases in increments to maturity.
Rate disclosed is as of December 31, 1999.
Maturity disclosed is the final maturity date.
d Variable rate security.
e Security in default
* 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 $3,529,231 and $6,799,012,
respectively. Net unrealized depreciation for tax purposes is $3,269,781.
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) had a total return of -0.22%
for the 12-month period ended December 31, 1999. In comparison, the Fund's
benchmark, the Lehman Brothers Government/Corporate Bond Index, returned -2.15%
for the same period. Since its inception in October 1995, the Fund has earned an
average annual total return of 5.88%, while the benchmark index returned 5.70%.
Portfolio Manager Comments
Although the Fund had a very good year in comparison to the performance of its
benchmark and versus other bond fund managers, in general, 1999 was a tough year
for fixed income investors. Interest rates rose markedly during the year, with
Treasuries turning in the worst performance since 1994. The impressive rebound
in the economies and financial markets in Asia and Europe was a key contributing
factor. As these economies recovered, the need for the "safe haven" of US
Treasuries diminished, and investors sold the US Treasuries they had bought
during the "Asian contagion" market panic in Fall 1998. The fact that the US
economy has continued to surprise on the upside also contributed to the
difficult fixed income market. US GDP growth exceeding most economists'
forecasts for 1999 combined with exceptionally tight US labor markets have
rekindled fears of stepped up inflation picking, adding to the selling pressures
on Treasuries.
The Fund's outperformance can be credited to continued overweighting in
corporate bond sectors that performed especially well in 1999, including the
supermarket, electrical utility, energy, and telecommunications sectors. For
example, Stater Brothers Holdings, a southern California regional supermarket
operator, tendered for the bonds we held last year at a significant premium to
our cost. Niagara Mohawk Power, a New York-based electrical utility whose bonds
continued to outperform the overall market, also had a positive effect on the
Fund's performance.
Portfolio Asset Mix
Going Forward
For 2000, we expect economic growth to moderate and low inflation to continue.
The back up of interest rates seen in 1999 should start to slow consumer
spending, as the impact of higher rates starts to ripple through the economy.
Long-term interest rates are likely to decline towards the end of the year, as
signs of slower economic growth emerge, reducing investors concerns about
inflation. We believe that the utility and telecommunications sectors will
continue to perform well, and will continue to rely on vigorous and thorough
credit analysis to find undervalued quality bonds in companies that meet our
stringent selection criteria.
Thank you for your continued investment in the Transamerica Premier Bond Fund.
comparison of change in value of a $10,000 investment in transamerica premier
bond fund with the lehman brothers government/corporate bond index**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 5.88% -0.22%
Class A 4.51% -4.96%
Class M 5.22% -1.56%
Lehman Brothers Government/
Corporate Bond Index 5.70% -2.15%
Investor Class ($12,752 at 12/31/99) Class A ($12,063 at 12/31/99) Class M
($12,416 at 12/31/99)
Lehman Brothers Government/Corporate Bond Index ($12,661 at 12/31/99)
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 December 31, 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-- December 31, 1999
Principal Market
Amount Value
CORPORATE BONDS-- 59.4%
Aerospace & Defense-- 7.0%
Boeing Company
8.625% 11/15/31 $400,000 $ 435,332
Lockheed Martin Corporation
8.500% 12/01/29 750,000 752,625
1,187,957
Air Travel -- 2.0%
AMR Corporation
9.750% 08/15/21 300,000 339,072
Auto Parts-- 2.8%
Lear Corporationa
7.960% 05/15/05 500,000 479,600
Automobiles-- 2.4%
General Motors Corporation
9.625% 12/01/00 400,000 410,256
Broadcasting-- 7.1%
CF Cable TV, Inc.
11.625% 02/15/05 240,000 254,940
Continental Cablevision, Inc.
9.000% 09/01/08 400,000 435,188
Jones Intercable, Inc.
8.875% 04/01/07 500,000 511,520
1,201,648
Consumer Financial Services-- 2.9%
Ford Motor Credit Company
7.375% 10/28/09 500,000 493,625
Electric Utilities-- 14.3%
Alliant Energy Resources, Inc.
7.375% 11/09/09 500,000 490,195
Arizona Public Service Company
5.875% 02/15/04 500,000 474,740
Calpine Capital Trust
5.750% 11/01/04 2,000 131,000
CILCORP, Inc.
8.700% 10/15/09 500,000 518,396
Cleveland Electric Illuminating Company
9.500% 05/15/05 500,000 520,640
Niagara Mohawk Power Corporation
7.750% 05/15/06 300,000 301,581
2,436,552
Oil & Gas Exploration and Distribution-- 2.9%
YPF Sociedad Anonima SA
8.000% 02/15/04 500,000 495,060
Retail-- 8.0%
Kmart Corporation
8.125% 12/01/06 500,000 495,625
Shoppers Food Warehouse Corporation
9.750% 06/15/04 800,000 858,000
1,353,625
Retail Grocery-- 5.9%
Stater Brothers Holdings, Inc.
10.750% 08/15/06 $ 500,000 $505,000
SUPERVALU, Inc.a
7.625% 09/15/04 500,000 495,865
1,000,865
Telecommunications Services-- 4.1%
Metromedia Fiber Network, Inc.
10.000% 12/15/09 500,000 511,250
WorldCom, Inc.
6.950% 08/15/28 200,000 181,592
692,842
Total Corporate Bonds
(cost $10,362,861) 10,091,102
U.S. GOVERNMENT AGENCY SECURITIES-- 8.5%
Federal National Mortgage Association
5.625% 05/14/04 500,000 477,810
6.625% 09/15/09 1,000,000 971,250
Total U.S. Government Agency Securities
(cost $1,459,453) 1,449,060
U.S. GOVERNMENT SECURITIES-- 22.9%
U.S. Treasury Bonds
7.500% 11/15/16 250,000 267,460
U.S. Treasury Notes
6.000% 08/15/09 3,750,000 3,632,813
Total U.S. Government Securities
(cost $4,005,986) 3,900,273
REPURCHASE AGREEMENT-- 7.7%
State Street Bank and Trust
Company 2.50%, due 01/03/00,
(collateralized by $1,080,000 par
value U.S. Treasury Bond, 8.875%,
due 08/15/17, with a value of
$1,343,250, cost $1,315,000) 1,315,000 1,315,000
Total Investments-- 98.5%
(cost $17,143,300)* 16,755,435
Other Assets Less Liabilities-- 1.5% 260,379
Net Assets-- 100.0% $17,015,814
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 December 31, 1999, these securities aggregated $975,465 or 5.73% of
the net assets of the Fund.
* Aggregate cost for Federal tax purposes is $17,144,558. 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 $74,734 and $463,857,
respectively. Net unrealized depreciation for tax purposes is $389,123.
See notes to financial statements
Transamerica Premier cash reserve Fund
Portfolio Manager: Edward S. Han, Co-Manager: Heidi Y. Hu
Fund Performance
The Transamerica Premier Cash Reserve Fund (Investor Class) continued to deliver
outperformance in 1999. The Fund ranked in the top 5% among 340 money market
funds for the 12-month period ended December 31, 1999, as tracked by Lipper
Analytical Services, Inc.
The Fund's 12-month return as of December 31, 1999 was 5.05% in comparison to
the IBC Money Fund Report return of 4.57%. The seven-day current and effective
yields were 5.63% and 5.79% respectively, as of December 31, 1999. The Fund's
average annual return since inception in October 1995 is 5.35%
Portfolio Manager Comments
The Fund's objective is to provide liquidity, preservation of capital, and
maxamize current income. Despite a challenging interest rate environment caused
by a strong U.S. economy, the Fund continued to perform well relative to its
peer group. Strong consumer demand, tight labor markets, record highs in the
U.S. equity markets, and the global economic upswing raised bond market concerns
that the domestic economy was overheating and higher inflation would be
imminent. The Federal Reserve remained watchful of inflationary pressures and
raised the federal funds target rate three times in 1999, effectively undoing
the three easings made between September and November of 1998. To this end, we
actively managed the Fund's maturity in anticipation of the actions taken by the
Federal Reserve, and were able to generate consistent outperformance for our
investors.
Portfolio Asset Mix
Going Forward
The continued strength of the U.S. economy is likely to merit further interest
rate tightening by the Federal Reserve in the first half of 2000. We expect
vigilant Federal Reserve action coupled with the rate increases of 1999 to slow
consumer spending and result in more moderate economic growth in 2000. We will
continue to invest in high quality companies and to manage the Fund to maximize
safety, liquidity and yield.
Thank you for your continued investment in the Transamerica Premier Cash Reserve
Fund.
comparison of change in value of a $10,000 investment in transamerica premier
cash reserve fund with the ibc's money fund report**
Total Returns Average Annual
As of December 31, 1999 Since Inception* One Year
Investor Class 5.35% 5.05%
Class A 4.98% 4.68%
Class M 4.72% 4.46%
The IBC's Money Fund Report(TM) 4.88% 4.57%
Investor Class ($12,479 at 12/31/99) Class A ($12,295 at 12/31/99) Class M
($12,165 at 12/31/99)
The IBC's Money Fund Report(TM)($12,244 at 12/31/99)
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 seven-day current and effective yields were 5.63% and 5.79% for the
Investor Class, 5.25% and 5.39% for Class A, and 5.03% and 5.16% for Class M,
respectively, as of December 31, 1999.
* 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 December 31, 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-- December 31, 1999
Principal Amortized
Amount Cost
COMMERCIAL PAPER -- DOMESTIC -- 66.9% Agricultural Machinery -- 3.0% Deere &
Company
6.220% 01/05/00 $2,050,000 $2,048,583
6.340% 01/05/00 1,000,000 999,296
6.340% 01/07/00 2,000,000 1,997,886
5,045,765
Banking -- 4.8%
Bank of New York
5.750% 02/03/00 5,500,000 5,471,011
BankAmerica Corporation
6.380% 01/25/00 2,000,000 1,991,493
J.P. Morgan & Company, Inc.
5.390% 01/18/00 200,000 199,491
5.420% 01/20/00 290,000 289,170
7,951,165
Business Services-- 0.9%
R.R. Donnelley & Sons Company
5.830% 01/24/00 1,500,000 1,494,413
Chemicals-- 2.6%
E. I. du Pont de Nemours and Company
5.400% 01/18/00 170,000 169,566
5.800% 01/21/00 4,200,000 4,186,467
4,356,033
Commercial Financial Services-- 11.6%
Assets Securitization Cooperative Corporation
5.800% 01/19/00 2,300,000 2,293,330
6.000% 01/19/00 1,000,000 997,000
5.920% 01/25/00 930,000 926,330
5.623%a 03/13/00 1,000,000 999,476
Associates Corporation of North America
5.700% 01/10/00 1,000,000 998,575
5.710% 01/10/00 1,000,000 998,572
6.100% 02/08/00 1,000,000 993,561
6.100% 02/09/00 1,000,000 993,392
General Electric Capital Corporation
5.600% 01/18/00 250,000 249,339
5.750% 01/18/00 500,000 498,642
5.430% 01/24/00 700,000 697,572
5.850% 01/24/00 1,200,000 1,195,515
5.530% 01/31/00 915,000 910,783
5.650% 02/15/00 500,000 496,469
5.500% 02/17/00 1,000,000 992,820
6.170% 02/17/00 415,000 411,657
5.800% 05/01/00 414,000 405,929
IBM Credit Corporation
6.500% 01/10/00 2,000,000 1,996,750
6.500% 01/12/00 1,300,000 1,297,418
John Deere Finance Ltd.
5.730% 01/12/00 1,000,000 998,249
19,351,379
Computers & Business Equipment-- 1.7%
IBM Corporation
5.570% 01/19/00 $ 750,000 $ 747,911
Pitney Bowes, Inc.
6.400% 01/06/00 2,000,000 1,998,222
2,746,133
Conglomerate-- 0.5%
Minnesota Mining & Manufacturing Company
4.500% 01/18/00 850,000 848,194
Consumer Financial Services-- 9.4%
Ford Motor Credit Company
5.810% 01/03/00 500,000 499,839
6.320% 01/04/00 300,000 299,842
5.770% 01/06/00 4,600,000 4,596,313
5.370% 01/20/00 1,000,000 997,166
Toyota Motor Credit Corporation
5.960% 01/10/00 1,000,000 998,510
6.200% 01/13/00 2,000,000 1,995,867
6.220% 01/28/00 200,000 199,067
USAA Capital Corporation
4.500% 01/11/00 900,000 898,875
5.720% 01/18/00 2,000,000 1,994,598
5.800% 01/19/00 1,600,000 1,595,360
5.680% 02/16/00 1,500,000 1,489,113
15,564,550
Consumer Products -- 3.1%
The Procter & Gamble Company
5.700% 01/18/00 2,100,000 2,094,347
5.550% 02/29/00 3,000,000 2,972,713
5,067,060
Drugs & Health Care-- 0.7%
Merck & Company, Inc.
5.500% 01/31/00 150,000 149,313
5.290% 02/07/00 1,000,000 994,563
1,143,876
Electric Utilities-- 3.6%
Duke Energy Corporation
5.000% 01/10/00 400,000 399,500
5.610% 01/14/00 2,000,000 1,995,948
5.650% 01/14/00 1,000,000 997,960
5.750% 01/14/00 2,600,000 2,594,601
5,988,009
Electrical Equipment-- 1.3%
Emerson Electric Company
5.300% 01/18/00 1,000,000 997,497
5.310% 01/19/00 1,200,000 1,196,814
2,194,311
Financial Services-- 9.3%
Caterpillar Financial Services
6.270% 01/13/00 $2,100,000 $ 2,095,611
6.500% 01/13/00 700,000 698,483
6.450% 01/25/00 1,300,000 1,294,410
5.550% 03/06/00 507,000 501,920
Corporate Asset Funding Corporation
6.320% 01/25/00 3,000,000 2,987,360
6.000% 01/26/00 750,000 746,875
6.400% 01/28/00 450,000 447,840
5.930% 02/18/00 1,000,000 992,093
Merrill Lynch & Company, Inc.
6.350% 01/24/00 325,000 323,681
6.250% 01/26/00 1,400,000 1,393,924
6.330% 01/31/00 260,000 258,629
5.370% 02/01/00 3,500,000 3,483,815
5.300% 03/14/00 250,000 247,313
15,471,954
Food & Beverages -- 5.2%
Campbell Soup Company
5.780% 01/11/00 2,000,000 1,996,789
Coca Cola Company
6.050% 01/06/00 1,000,000 999,160
6.050% 01/07/00 1,000,000 998,992
5.100% 01/10/00 2,500,000 2,496,812
6.350% 01/21/00 1,500,000 1,494,708
H.J. Heinz Company
5.550% 01/05/00 625,000 624,615
8,611,076
Leisure & Entertainment-- 0.8%
The Walt Disney Company
5.400% 01/28/00 125,000 124,494
5.720% 01/28/00 1,200,000 1,194,852
1,319,346
Newspapers-- 0.8%
Gannett Company, Inc.
5.500% 01/26/00 1,300,000 1,295,035
Oil-- 4.1%
Chevron Corporation
6.350% 01/07/00 1,000,000 998,942
Exxon Capital Corporation
5.000% 01/03/00 3,800,000 3,798,944
6.450% 01/04/00 2,000,000 1,998,925
6,796,811
Retail -- 1.2% Wal-Mart Stores, Inc.
5.250% 01/06/00 2,000,000 1,998,542
Telecommunications-- 2.3%
AT&T Corporation
6.350% 01/12/00 $1,900,000 $ 1,896,314
6.250% 01/27/00 2,000,000 1,990,972
3,887,286
Total Commercial Paper -- Domestic
(amortized cost $111,130,938) 111,130,938
COMMERCIAL PAPER-- FOREIGN-- 5.6%
Food & Beverages-- 3.2%
H.J. Heinz Company of Canada Ltd.
5.500% 01/31/00 5,400,000 5,375,250
Government-- Foreign-- 2.4%
Province of British Columbia
5.350% 01/18/00 4,000,000 3,989,895
Total Commercial Paper -- Foreign
(amortized cost $9,365,145) 9,365,145
U.S. GOVERNMENT AGENCY SECURITIES-- 2.3%
Federal Home Loan Bank
5.000% 01/20/00 700,000 698,153
5.750% 02/14/00 100,000 99,297
5.810% 02/18/00 167,000 165,706
5.700% 02/29/00 200,000 198,132
5.700% 03/01/00 200,000 198,100
5.700% 03/14/00 100,000 98,844
Federal Home Loan Mortgage Corporation
5.680% 02/04/00 115,000 114,383
5.400% 02/17/00 300,000 297,885
Federal National Mortgage Association
5.400% 01/10/00 200,000 199,730
5.000% 01/18/00 371,000 370,124
5.750% 02/10/00 150,000 149,042
5.700% 03/16/00 1,275,000 1,259,859
Total U.S. Government Agency Securities
(amortized cost $3,849,255) 3,849,255
REPURCHASE AGREEMENT-- 0.1%
State Street Bank and Trust Company,
2.50%, due 01/03/00, (collateralized
by $205,000 par value U.S. Treasury
Note, 6.500%, due 05/31/01, with
a value of $206,794, cost $202,000) 202,000 202,000
Total Investments-- 74.9%
(amortized cost $124,547,338) 124,547,338
Other Assets Less Liabilities-- 25.1% 41,676,291
Net Assets-- 100.0% $166,223,629
a Variable rate security
See notes to financial statements
Transamerica premier Cash Reserve Fund (concluded)
<TABLE>
<CAPTION>
Statements of Assets and liabilities
December 31, 1999
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Premier Premier Premier Premier Premier Premier Premier
Aggressive Growth Small Company Equity Value Index Balanced High Yield
Fund Fund Fund Fund Fund Fund Bond Fund
Assets
Investments, at cost
<S> <C> <C> <C> <C> <C> <C>
$135,354,674 $168,275,726 $166,264,302 $7,992,224 $35,401,474 $46,441,393 $80,643,719
Investments, at value
$237,319,769 $345,056,069 $324,001,375 $9,372,231 $50,888,953 $64,658,653 $77,373,938
Cash
- -- 469 568 56,199 448 369 850
Receivables:
Dividends and interest
44,750 76,136 106,143 3,048 36,319 418,317 1,452,742
Variation margin
-- -- -- -- 23,800 -- --
Securities sold
2,415,817 -- -- -- 72,937 -- --
Fund shares sold
1,112,066 3,916,915 1,181,821 9,365 156,611 28,793 8,172
Reimbursement from administrator
10,345 8,069 7,814 10,523 34,407 7,751 17,626
Prepaid expenses and other assets
1,598 2,149 6,034 80 2,063 3,552 1,402
$240,904,345 $349,059,807 $325,303,755 $9,451,446 $51,215,538 $65,117,435 $78,854,730
Liabilities
Payables:
Securities purchased
274,103 1,094,720 -- -- 73,695 -- --
Fund shares redeemed
292,221 583,037 216,326 6,347 14,056 94,329 8,752
Advisory fees
156,637 209,581 214,274 5,756 12,647 39,974 36,536
Director's fees
2,207 2,758 3,250 101 548 697 880
Distribution fees
46,270 61,768 63,204 1,945 4,379 13,387 344
Disbursement in excess of demand
deposit cash
1,924,748 -- -- -- -- -- --
Other accrued expenses
116,084 115,220 153,834 22,263 48,708 41,863 39,478
2,812,270 2,067,084 650,888 36,412 154,033 190,250 85,990
Total Net Assets
$238,092,075 $346,992,723 $324,652,867 $9,415,034 $51,061,505 $64,927,185 $78,768,740
Net Assets Consist Of:
Paid in capital
$114,995,196 $165,135,291 $163,796,103 $8,127,500 $34,941,023 $45,311,204 $84,579,008
Undistributed net investment
income (loss)
- -- -- -- -- -- (143) 51,048
Accumulated net realized gain (loss) on
investments and futures transactions
21,131,784 5,077,089 3,119,691 (92,473) 232,778 1,398,864 (2,591,535)
Net unrealized appreciation
(depreciation) of investments
and futures contracts
101,965,095 176,780,343 157,737,073 1,380,007 15,887,704 18,217,260 (3,269,781)
Total Net Assets
$238,092,075 $346,992,723 $324,652,867 $9,415,034 $51,061,505 $64,927,185 $78,768,740
Investor Class
Net Assets
$236,740,848 $345,340,578 $323,537,788 $9,255,793 $50,373,608 $64,447,618 $1,610,134
Shares Outstanding
7,057,310 8,865,475 10,124,261 814,236 2,355,259 3,144,500 173,323
Net Asset Value, Offering Price
and Redemption Price Per Share
$ 33.55 $ 38.95 $31.96 $11.37 $ 21.39 $20.50 $9.29
Institutional Class
Net Assets
$ -- $ -- $ -- $ -- $ -- $ -- $77,158,606
Shares Outstanding
- -- -- -- -- -- -- 8,345,645
Net Asset Value, Offering Price
and Redemption Price Per Share
$ -- $ -- $ -- $ -- $ -- $ -- $ 9.25
Class A
Net Assets
$777,539 $1,062,283 $ 530,123 $ 87,439 $ 524,030 $338,923 $ --
Shares Outstanding
23,217 27,329 16,630 7,702 24,524 16,556 --
Net Asset Value and
Redemption Price Per Share
$33.49 $ 38.87 $31.88 $11.35 $21.37 $20.47 $ --
Maximum Sales Charge
5.25% 5.25% 5.25% 5.25% 5.25% 5.25% --
Maximum Offering Price Per Share
$ 35.35 $41.02 $ 33.65 $11.98 $22.55 $21.60 $--
Class M
Net Assets
$ 573,688 $ 589,862 $584,956 $71,802 $163,867 $140,644 $ --
Shares Outstanding
17,180 15,225 18,429 6,338 7,663 6,867 --
Net Asset Value and
Redemption Price Per Share
$33.39 $38.74 $31.74 $ 11.33 $ 21.38 $20.48 $--
Maximum Sales Charge
1.00% 1.00% 1.00% 1.00% 1.00% 1.00% --
Maximum Offering Price Per Share
$33.73 $39.13 $32.06 $11.44 $21.60 $20.69 $--
Transamerica Transamerica
Premier Premier
Bond Cash Reserve
Fund Fund
$17,143,300 $124,547,338
$16,755,435 $124,547,338
578 407
279,778 2,541
-- --
-- --
9,056 41,968,205
12,098 41,784
2,662 6,444
$17,059,607 $166,566,719
-- --
5,683 246,236
8,748 35,655
196 1,363
3,668 335
-- --
25,498 59,501
43,793 343,090
$17,015,814 $166,223,629
$17,564,418 $166,223,629
-- --
(160,739) --
(387,865) --
$17,015,814 $166,223,629
$16,833,043 $165,301,355
1,729,762 165,301,355
$ 9.73 $1.00
6 $ -- $ --
-- --
$ -- $ --
$144,831 $819,214
14,892 819,214
$ 9.73 $ 1.00
4.75% --
$10.22 $ 1.00
$37,940 $103,060
3,894 103,060
$ 9.74 $1.00
1.00% --
$ 9.84 $1.00
</TABLE>
See notes to financial statements
<TABLE>
<CAPTION>
Statements of operations
For the year ended December 31, 1999
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Premier Premier Premier Premier Premier Premier Premier
Aggressive Small Company Equity Value Index Balanced High Yield
Growth Fund Fund Fund Fund Fund Fund Bond Fund
Interest income
<S> <C> <C> <C> <C> <C> <C>
$85,178 $230,814 $144,652 $1,817 $365,861 $1,736,205 $ 7,153,328
Dividend income
98,021* 273,330 636,829* 25,025 470,068* 234,760 338,792
Total Income
183,199 504,144 781,481 26,842 835,929 1,970,965 7,492,120
Expenses
Investment adviser fee
1,762,180 1,780,244 2,800,413 67,461 130,632 481,430 422,473
Transfer agent fees:
Investor class
349,417 209,769 333,413 36,748 99,463 86,606 38,033
Institutional class
- -- -- -- -- -- -- 26,861
Class A
22,636 22,522 23,364 22,352 22,572 22,470 --
Class M
22,723 22,846 22,649 22,359 22,400 22,411 --
Distribution fees:
Investor class
516,864 522,336 822,910 22,317 43,061 159,885 4,688
Class A
1,524 1,290 654 164 1,451 690 --
Class M
805 630 635 125 411 234 --
Custodian fees
90,182 96,965 131,497 33,851 121,556 59,673 53,530
Registration fees
72,682 78,352 62,192 16,946 22,240 29,683 7,115
Audit fees
29,603 39,730 39,902 484 5,335 7,616 5,945
Legal fees
1,946 361 656 17 73 37 126
Printing
21,027 25,508 35,796 385 5,324 7,230 6,010
Directors' fees and expenses
11,062 11,722 17,005 383 2,324 3,384 3,506
Amortization of deferred
registration fees
8,504 8,504 8,504 12,740 8,504 8,504 6,136
Other expenses
27,477 39,196 63,275 1,995 7,632 11,840 11,116
Total expenses before waiver
and reimbursement
2,938,632 2,859,975 4,362,865 238,327 492,978 901,693 585,539
Reimbursed expenses and waived fees
(62,282) (62,324) (62,799) (130,271) (382,739) (61,868) (81,565)
Net Expenses
2,876,350 2,797,651 4,300,066 108,056 110,239 839,825 503,974
Net Investment Income (Loss)
(2,693,151) (2,293,507) (3,518,585) (81,214) 725,690 1,131,140 6,988,146
Net Realized and Unrealized
Gain (Loss) on Investments
Net realized gain (loss) on
investments and futures contracts
33,280,403 30,996,817 12,432,764 770,852 1,227,087 4,819,176 (1,881,329)
Change in net unrealized appreciation
(depreciation) of investments and
futures contracts
54,492,477 130,364,462 75,670,336 (53,279) 6,449,700 2,501,393 (1,133,560)
Net Realized and Unrealized
Gain (Loss) on Investments
87,772,880 161,361,279 88,103,100 717,573 7,676,787 7,320,569 (3,014,889)
Net Increase (Decrease)
in Net Assets Resulting
From Operations
$85,079,729 $159,067,772 $84,584,515 $ 636,359 $8,402,477 $8,451,709 $ 3,973,257
Net of foreign withholding taxes, the amounts that were withheld in the
Aggressive Growth, Equity and Index Funds were $1,175, $1,763 and $4,625,
respectively.
</TABLE>
Transamerica Transamerica
Premier Premier
Bond Cash Reserve
Fund Fund
$1,230,314 $5,210,035
-- --
1,230,314 5,210,035
103,599 349,455
41,505 158,277
-- --
22,333 22,136
22,367 21,949
42,824 --
440 2,850
68 157
42,166 71,337
24,816 44,413
1,493 11,663
6 159
2,016 12,258
936 5,253
8,506 8,504
3,490 15,860
316,565 724,271
(91,933) (471,603)
224,632 252,668
1,005,682 4,957,367
(160,323) --
(866,339) --
(1,026,662) --
$ (20,980) $4,957,367
See notes to financial statements
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
Transamerica Premier Transamerica Premier Transamerica Premier
Aggressive Growth Fund Small Company Fund Equity Fund
Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1999 1998 1999 1998
Increase in Net Assets
Operations
<S> <C> <C> <C> <C> <C> <C>
Net investment loss $(2,693,151) $(546,023) $(2,293,507) $(318,045) $(3,518,585) $(2,298,315)
Net realized gain (loss) on investments and futures transactions
33,280,403 (3,525,357) 30,996,817 (154,132) 12,432,764 (197,954)
Net change in unrealized appreciation of investments
54,492,477 46,190,155 130,364,462 46,064,490 75,670,336 58,001,638
Net increase in net assets resulting from operations
85,079,729 42,118,775 159,067,772 45,592,313 84,584,515 55,505,369
Dividends/Distributions to Shareholders Net investment income:
Investor class -- -- -- -- -- --
Institutional class -- -- -- -- -- --
Class A -- -- -- -- -- --
Class M -- -- -- -- -- --
Net realized gains:
Investor class
(6,270,729) (620) (23,185,123) (830,079) (9,085,058) (262,088)
Institutional class -- -- -- -- -- --
Class A (19,628)-- (59,588)-- (14,664)--
Class M (14,494)-- (40,385)-- (15,397)--
Net decrease in net assets resulting from distributions
(6,304,851) (620) (23,285,096) (830,079) (9,115,119) (262,088)
Fund Share Transactions
(18,178,491) 122,597,180 1,819,637 153,506,055 (41,137,350) 123,510,486
Net increase in net assets
60,596,387 164,715,335 137,602,313 198,268,289 34,332,046 178,753,767
Net Assets
Beginning of year 177,495,688 12,780,353 209,390,410 11,122,121 290,320,821 111,567,054
End of year1 $238,092,075 $177,495,688 $346,992,723 $209,390,410 $324,652,867 $290,320,821
1 Includes undistributed net investment income (loss) of:
$ -- $-- $ -- $ -- $ -- $ --
See notes to financial statements page #
transamerica premier funds 1999 annual
reportStatements of Changes in Net Assets (continued)
Transamerica Premier Transamerica Premier Transamerica Premier
Value Fund Index Fund Balanced Fund
Year Ended Period Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998* 1999 1998 1999 1998
Increase in Net Assets
Operations
Net investment income (loss)
(81,214) $ (2,633) $725,690 $682,007 $1,131,140 $ 667,534
Net realized gain (loss) on investments and futures transactions
770,852 (863,325) 1,227,087 1,256,928 4,819,176 2,033,279
Net change in unrealized appreciation of investments
(53,279) 1,433,286 6,449,700 5,309,621 2,501,393 7,873,490
Net increase in net assets resulting from operations
636,359 567,328 8,402,477 7,248,556 8,451,709 10,574,303
Dividends/Distributions to Shareholders Net investment income:
Investor class
-- (24,596) (718,647) (689,572) (1,155,112) (636,780)
Institutional class
-- -- -- -- -- --
Class A
-- (3) (5,730) (18) (5,495) (11)
Class M
-- (1) (1,367) (16) (2,016) (9)
Net realized gains:
Investor class
-- -- (1,684,598) (1,499,922) (3,413,640) (1,875,029)
Institutional class
-- -- -- -- -- --
Class A
-- -- (16,669) (19) (16,893) (40)
Class M
-- -- (4,977) (18) (7,161) (40)
Net decrease in net assets resulting from distributions
-- (24,600) (2,431,988) (2,189,565) (4,600,317) (2,511,909)
Fund Share Transactions
(335,156) 8,571,103 8,746,026 7,293,877 (846,647) 27,061,075
Net increase in net assets
301,203 9,113,831 14,716,515 12,352,868 3,004,745 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
$9,415,034 $9,113,831 $51,061,505 $36,344,990 $64,927,185 $61,922,440
1 Includes undistributed net investment income (loss) of:
$ -- $-- $ -- $ -- $ (143) $ 31,508
* Inception -- March 31, 1998; fund commenced operations on April 1, 1998. See
notes to financial statements transamerica premier funds 1999 annual report
page #
Statements of Changes in Net Assets (concluded)
Transamerica Premier Transamerica Premier Transamerica Premier
High Yield Bond Fund Bond Fund Cash Reserve Fund
Year Ended Period Ended Year Ended Year Ended Year Ended Year Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998* 1999 1998 1999 1998
Increase (decrease) in Net Assets
Operations
Net investment income
$ 6,988,146 $3,115,406 $1,005,682 $ 931,780 $ 4,957,367 $3,534,640
Net realized gain (loss) on investments and futures transactions
(1,881,329) (565,418) (160,323) 523,889 -- --
Net change in unrealized depreciation of investments
(1,133,560) (2,136,221) (866,339) (16,451) -- --
Net increase (decrease) in net assets resulting from operations
3,973,257 413,767 (20,980) 1,439,218 4,957,367 3,534,640
Dividends/Distributions to Shareholders Net investment income:
Investor class
(169,095) (36,503) (998,717) (931,741) (4,918,811) (3,534,586)
Institutional class
(6,866,482) (3,069,899) -- -- -- --
Class A
-- -- (7,776) (33) (37,319) (28)
Class M
-- -- (663) (33) (1,237) (26)
Net realized gains:
Investor class
(60) (1,245) (115,604) (187,616) -- --
Institutional class
(2,883) (63,702) -- -- -- --
Class A
- -- -- (927) (14) -- --
Class M
- -- -- (251) (13) -- --
Net decrease in net assets resulting from distributions
(7,038,520) (3,171,349) (1,123,938) (1,119,450) (4,957,367) (3,534,640)
Fund Share Transactions
9,017,222 75,574,363 818,215 2,786,596 89,954,730 25,022,731
Net increase (decrease) in net assets
5,951,959 72,816,781 (326,703) 3,106,364 89,954,730 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
$78,768,740 $72,816,781 $17,015,814 $17,342,517 $166,223,629 $76,268,899
1 Includes undistributed net investment income (loss) of:
$ 51,048 $12,502 $ -- $ 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
Year Ended Year Ended Period Ended Year Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1997* 1999 1998 1997*
Net Asset Value
Beginning of period
$22.42 $12.18 $10.00 $21.99 $12.49 $10.00
Operations
Net investment loss1
(0.33)a (0.04) (0.03) (0.29)a (0.02) (0.02)
Net realized and unrealized gain on investments
12.37 10.28 2.21 20.29 9.93 2.51
Total from investment operations
12.04 10.24 2.18 20.00 9.91 2.49
Dividends/Distributions to Shareholders
Net investment income
-- -- -- -- -- --
Net realized gains on investments
(0.91) -- -- (3.04) (0.41) --
Total dividends/distributions
(0.91) -- -- (3.04) (0.41) --
Net Asset Value
End of period
$ 33.55 $ 22.42 $12.18 $38.95 $21.99 $12.49
Total Return2
54.25% 84.07% 21.80% 93.99% 80.27% 24.90%
Ratios and Supplemental Data Expenses to average net assets:
After reimbursement/fee waiver
1.39% 1.40% 1.40%Y 1.34% 1.40% 1.40%Y
Before reimbursement/fee waiver
1.39% 1.60% 2.08%Y 1.34% 1.59% 2.12%Y
Net investment loss, after reimbursement/fee waiver
(1.30%) (0.92%) (0.59%)Y (1.09%) (0.67%) (0.43%)Y
Portfolio turnover rate
80% 32% 17% 50% 26% 74%
Net assets, end of period (in thousands)
$236,741 $177,493 $12,780 $345,341 $209,388 $11,122
Y 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 $(0.33), $(0.05) and $(0.06) for the
Aggressive Growth Fund and $(0.29), $(0.03) and $(0.06) for the Small Company
Fund, for the periods ended December 31, 1999, 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 loss
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
Year Ended Year Ended Year Ended Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1997 1996 1995* 1999 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
(0.29)a (0.15) (0.04) (0.06) 0.02 (0.10)a --
Net realized and unrealized gain (loss) on investments
8.40 6.42 6.05 2.91 (0.20) 0.88 0.62
Total from investment operations
8.11 6.27 6.01 2.85 (0.18) 0.78 0.62
Dividends/Distributions to Shareholders
Net investment income
- -- -- -- (0.02) -- -- (0.03)
Net realized gains on investments
(0.93) (0.02) (0.13) -- -- -- --
Total dividends/distributions
(0.93) (0.02) (0.13) (0.02) -- -- (0.03)
Net Asset Value
End of period
$ 31.96 $ 24.78 $ 18.53 $ 12.65 $ 9.82 $11.37 $10.59
Total Return2
33.26% 33.85% 47.51% 29.07% (1.80%) 7.37% 6.19%
Ratios and Supplemental Data Expenses to average net assets:
After reimbursement/fee waiver
1.30% 1.42% 1.49% 1.50% 0.25%Y 1.20% 1.20%Y
Before reimbursement/fee waiver
1.30% 1.42% 1.51% 1.95% 2.39%Y 1.96% 2.21%Y
Net investment income (loss), after reimbursement/fee waiver
(1.07%) (0.96%) (0.71%) (0.66%) 1.51%Y (0.90%) (0.04%)Y
Portfolio turnover rate
42% 59% 13% 60% -- 87% 72%
Net assets, end of period (in thousands)
$323,538 $290,318 $111,567 $30,454 $11,070 $9,256 $9,111
Y Annualized
* Inception (Investor Class) -- October 2, 1995.
** Inception (Investor Class) -- March 31, 1998; fund commenced operations
on April 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 $(0.29), $(0.15), $(0.04), $(0.10) and $(0.01) for the Equity
Fund for the periods ended December 31, 1999, 1998, 1997, 1996 and 1995,
respectively, and $(0.18) and $(0.08) for the Value Fund for the periods ended
December 31, 1999 and 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 loss 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
Year Ended Year Ended Year Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31,
1999 1998 1997 1996 1995*
Net Asset Value
Beginning of period $ 18.63 $15.49 $ 11.96 $10.59 $10.00
Operations
Net investment income1 0.34a 0.37 0.32 0.27 0.06
Net realized and unrealized gain on investments
3.47 3.98 3.60 2.06 0.53
Total from investment operations 3.81 4.35 3.92 2.33 0.59
Dividends/Distributions to Shareholders
Net investment income (0.30) (0.37) (0.32) (0.33) --
Net realized gains on investments (0.75) (0.84) (0.07) (0.63) --
Total dividends/distributions (1.05) (1.21) (0.39) (0.96) --
Net Asset Value
End of period $21.39 $ 18.63 $15.49 $ 11.96 $10.59
Total Return2 20.65% 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%Y
Before reimbursement/fee waiver 0.99% 1.14% 1.57% 2.29% 4.12%Y
Net investment income, after reimbursement/fee waiver
1.67% 2.26% 2.31% 2.48% 2.70%Y
Portfolio turnover rate 22% 32% 11% 94% 4%
Net assets, end of period (in thousands) $50,374 $36,342 $23,992 $10,814 $6,934
Y 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 $0.19, $0.22, $0.14, $0.06 and $(0.03) for the
Index Fund for the periods ended December 31, 1999, 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
Year Ended Year Ended Year Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31,
1999 1998 1997 1996 1995*
Net Asset Value
Beginning of period $ 19.24 $15.54 $ 11.57 $10.23 $10.00
Operations
Net investment income1 0.35a 0.23 0.11 0.14 0.06
Net realized and unrealized gain on investments
2.43 4.31 3.97 1.40 0.17
Total from investment operations 2.78 4.54 4.08 1.54 0.23
Dividends/Distributions to Shareholders
Net investment income (0.37) (0.22) (0.11) (0.20) --
Net realized gains on investments (1.15) (0.62) -- -- --
Total dividends/distributions (1.52) (0.84) (0.11) (0.20) --
Net Asset Value
End of period $ 20.50 $ 19.24 $ 15.54 $ 11.57 $10.23
Total Return2 14.81% 29.30% 35.38% 15.28% 2.30%
Ratios and Supplemental Data Expenses to average net assets:
After reimbursement/fee waiver 1.31% 1.43% 1.45% 1.45% 0.25%Y
Before reimbursement/fee waiver 1.31% 1.43% 1.62% 1.94% 2.12%Y
Net investment income, after reimbursement/fee waiver
1.76% 1.60% 0.83% 1.34% 3.12%Y
Portfolio turnover rate 61% 32% 23% 19% 16%
Net assets, end of period (in thousands) $64,448 $61,920 $26,799 $16,041 $12,084
Y 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 $0.35, $0.23, $0.09, $0.09 and $0.02 for the Balanced
Fund for the periods ended December 31, 1999, 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
Year Ended Period Ended Year Ended Year Ended Year Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998* 1999 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
0.79 0.73 0.58 0.61 0.62 0.56 0.16
Net realized and unrealized gain (loss) on investments
(0.27) (0.68) (0.60) 0.33 0.33 (0.46) 0.32
Total from investment operations
0.52 0.05 (0.02) 0.94 0.95 0.10 0.48
Dividends/Distributions to Shareholders
Net investment income
(0.86) (0.41) (0.59) (0.61) (0.62) (0.61) (0.11)
Net realized gains on investments
- -- (0.01) (0.07) (0.11) -- -- --
Total dividends/distributions
(0.86) (0.42) (0.66) (0.72) (0.62) (0.61) (0.11)
Net Asset Value
End of period
$ 9.29 $ 9.63 $ 9.73 $10.41 $ 10.19 $ 9.86 $ 10.37
Total Return2
5.43% 0.58% (0.22%) 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%Y 1.30% 1.30% 1.30% 1.30% 0.25%Y
Before reimbursement/fee waiver
3.60% 6.50%Y 1.47% 1.47% 1.64% 1.81% 1.93%Y
Net investment income, after reimbursement/fee waiver
8.94% 23.97%Y 5.82% 5.94% 6.25% 5.66% 6.55%Y
Portfolio turnover rate
30% 22% 301% 165% 99% 7% 19%
Net assets, end of period (in thousands)
$1,610 $1,402 $16,833 $17,340 $14,236 $12,553 $11,827
Y 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 $0.55 and $0.56 for the High Yield
Bond Fund for the periods ended December 31, 1999 and 1998, respectively, and
$0.57, $0.59, $0.58, $0.50 and $0.12 for the Bond Fund for the periods ended
December 31, 1999, 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 funds 1999 annual
report page
Transamerica Premier
Transamerica Premier Cash Reserve Fund High Yield Bond Fund
Investor Class Institutional Class
Year Ended Year Ended Year Ended Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998 1997 1996 1995* 1999 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
0.05 0.05 0.05 0.05 0.01 0.88 0.42
Net realized and unrealized loss on investments
- -- -- -- -- -- (0.36) (0.38)
Total from investment operations
0.05 0.05 0.05 0.05 0.01 0.52 0.04
Dividends/Distributions to Shareholders
Net investment income
(0.05) (0.05) (0.05) (0.05) (0.01) (0.88) (0.42)
Net realized gains on investments
- -- -- -- -- -- -- (0.01)
Total dividends/distributions
(0.05) (0.05) (0.05) (0.05) (0.01) (0.88) (0.43)
Net Asset Value
End of period
$1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $9.25 $ 9.61
Total Return2
5.05% 5.45% 5.48% 5.34% 1.39% 5.50% 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%Y 0.65% 0.65%Y
Before reimbursement/fee waiver
0.66% 0.73% 0.95% 1.09% 1.37%Y 0.69% 0.80%Y
Net investment income, after reimbursement/fee waiver
4.97% 5.29% 5.35% 5.21% 5.55%Y 9.10% 8.81%Y
Portfolio turnover rate
- -- -- -- -- -- 30% 22%
Net assets, end of period (in thousands)
$165,301 $76,267 $51,246 $32,041 $27,996 $77,159 $71,415
Y 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 $0.05, $0.05, $0.05, $0.04 and $0.01 for the Cash Reserve Fund
for the periods ended December 31, 1999, 1998, 1997, 1996 and 1995,
respectively, and $0.87 and $0.41 for the High Yield Bond Fund for the periods
ended December 31, 1999 and 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
Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998* 1999 1998* 1999 1998* 1999 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
(0.37)a (0.11) (0.35)a (0.08) (0.37)a (0.16) (0.11)a (0.02)
Net realized and unrealized gain on investments
12.36 4.97 20.27 4.87 8.39 2.09 0.87 0.92
Total from investment operations
11.99 4.86 19.92 4.79 8.02 1.93 0.76 0.90
Dividends/Distributions to Shareholders
Net investment income -- -- -- -- -- -- -- (0.02)
Net realized gains on investments
(0.91) -- (3.04) -- (0.93) -- -- --
Total dividends/distributions
(0.91) -- (3.04) -- (0.93) -- -- (0.02)
Net Asset Value
End of period
$33.49 $22.41 $38.87 $21.99 $31.88 $24.79 $11.35 $10.59
Total Return2
54.09% 27.69% 93.63% 27.85% 32.88% 8.44% 7.18% 9.31%
Ratios and Supplemental Data Expenses to average net assets:
After reimbursement/fee waiver
1.50% 1.50%Y 1.50% 1.50%Y 1.60% 1.60%Y 1.30% 1.30%Y
Before reimbursement/fee waiver
8.63% 2091.85%Y 9.86% 2146.03%Y 18.56% 2133.52%Y 67.64% 2533.76%Y
Net investment (loss), after reimbursement/fee waiver
(1.43%) (1.07%)Y (1.26%) (0.79%)Y (1.33%) (1.26%)Y (0.99%) (0.42%)Y
Portfolio turnover rate
80% 32% 50% 26% 42% 59% 87% 72%
Net assets, end of period (in thousands)
$ 778 $ 1 $ 1,062 $ 1 $ 530 $ 1 $ 87 $1
Y 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 $(2.21) and $(221.25) for the Aggressive Growth Fund,
$(2.65) and $(212.68) for the Small Company Fund, $(5.01) and $(269.96) for the
Equity Fund, and $(7.21) and $(116.09) for the Value Fund for the periods ended
December 31, 1999 and 1998, respectively. 2 Total return represents aggregate
total return for the period indicated and is not annualized, for periods less
than one year. Performance shown does not include effects of any sales charges.
a Per share net investment loss 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
Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998* 1999 1998* 1999 1998* 1999 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
0.30a 0.19 0.33a 0.18 0.55 0.29 0.05 0.02
Net realized and unrealized gain (loss) on investments
3.45 1.39 2.39 1.87 (0.57) 0.19 -- --
Total from investment operations
3.75 1.58 2.72 2.05 (0.02) 0.48 0.05 0.02
Dividends/Distributions to Shareholders
Net investment income
(0.25) (0.27) (0.35) (0.17) (0.58) (0.29) (0.05) (0.02)
Net realized gains on investments
(0.75) (0.28) (1.15) (0.62) (0.07) (0.11) -- --
Total dividends/distributions
(1.00) (0.55) (1.50) (0.79) (0.65) (0.40) (0.05) (0.02)
Net Asset Value
End of period
$21.37 $18.62 $20.47 $19.25 $ 9.73 $10.40 $1.00 $1.00
Total Return2
20.31% 8.94% 14.48% 11.41% (0.22%) 4.80% 4.68% 2.50%
Ratios and Supplemental Data Expenses to average net assets:
After reimbursement/fee waiver
0.50% 0.50%Y 1.55% 1.55%Y 1.40% 1.40%Y 0.60% 0.60%Y
Before reimbursement/fee waiver
8.67% 2141.94%Y 17.18% 2068.27%Y 26.13% 2353.12%Y 4.78% 2413.01%Y
Net investment income, after reimbursement/fee waiver
1.47% 2.04%Y 1.65% 1.73%Y 5.82% 5.66%Y 4.58% 4.85%Y
Portfolio turnover rate
22% 32% 61% 32% 301% 165% -- --
Net assets, end of period (in thousands)
$524 $1 $ 339 $ 1 $ 145 $1 $819 $ 1
Y 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 $(1.36) and $(203.55) for the Index Fund, $(2.79) and
$(214.50) for the Balanced Fund, $(1.77) and $(120.85) for the Bond Fund, and
$0.00 and $(12.31) for the Cash Reserve Fund for the periods ended December 31,
1999 and 1998, respectively.
2 Total return represents aggregate total return for the period indicated and is
not annualized, for periods less than one year. Performance shown does not
include effects of any sales charges. 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 page
transamerica premier funds 1999 annual
report><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
Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998* 1999 1998* 1999 1998* 1999 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
(0.45)a (0.18) (0.46)a (0.14) (0.42)a (0.25) (0.13)a (0.05)
Net realized and unrealized gain on investments
12.36 5.02 20.28 4.90 8.36 2.12 0.87 0.94
Total from investment operations
11.91 4.84 19.82 4.76 7.94 1.87 0.74 0.89
Dividends/Distributions to Shareholders
Net investment income -- -- -- -- -- -- -- (0.01)
Net realized gains on investments
(0.91) -- (3.04) -- (0.93) -- -- --
Total dividends/distributions
(0.91) -- (3.04) -- (0.93) -- -- (0.01)
Net Asset Value
End of period
$33.39 $22.39 $38.74 $21.96 $31.74 $24.73 $11.33 $10.59
Total Return2
53.78% 27.58% 93.30% 27.67% 32.64% 8.18% 6.99% 9.17%
Ratios and Supplemental Data Expenses to average net assets:
After reimbursement/fee waiver
1.75% 1.75%Y 1.75% 1.75%Y 1.85% 1.85%Y 1.55% 1.55%Y
Before reimbursement/fee waiver
25.05% 1559.17%Y 31.68% 1554.70%Y 31.24% 1618.88%Y 151.30% 1654.81%Y
Net investment (loss), after reimbursement/fee waiver
(1.66%) (1.32%)Y (1.50%) (1.05%)Y (1.51%) (1.49%)Y (1.23%) (0.74%)Y
Portfolio turnover rate
80% 32% 50% 26% 42% 59% 87% 72%
Net assets, end of period (in thousands)
$ 574 $ 1 $ 590 $ 1 $ 585 $ 1 $ 72 $ 1
Y 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 $(6.73) and $(207.97) for the Aggressive Growth Fund,
$(9.61) and $(203.30) for the Small Company Fund, $(8.59) and $(269.54) for the
Equity Fund, and $(16.23) and $(115.93) for the Value Fund for the periods ended
December 31, 1999 and 1998, respectively.
2 Total return represents aggregate total return for the period indicated and is
not annualized, for periods less than one year. Performance shown does not
include effects of any sales charges. a Per share net investment loss 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
Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended Period Ended
December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31,
1999 1998* 1999 1998* 1999 1998* 1999 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
0.25a 0.16 0.28a 0.14 0.54 0.28 0.04 0.02
Net realized and unrealized gain (loss) on investments
3.44 1.41 2.41 1.87 (0.60) 0.21 -- --
Total from investment operations
3.69 1.57 2.69 2.01 (0.06) 0.49 0.04 0.02
Dividends/Distributions to Shareholders
Net investment income
(0.20) (0.24) (0.30) (0.14) (0.55) (0.28) (0.04) (0.02)
Net realized gains on investments
(0.75) (0.28) (1.15) (0.62) (0.07) (0.11) __ __
Total dividends/distributions
(0.95) (0.52) (1.45) (0.76) (0.62) (0.39) (0.04) (0.02)
Net Asset Value
End of period
$21.38 $18.64 $20.48 $19.24 $ 9.74 $10.42 $1.00 $1.00
Total Return2
19.94% 8.92% 14.32% 11.22% (0.56%) 4.87% 4.46% 2.35%
Ratios and Supplemental Data Expenses to average net assets:
After reimbursement/fee waiver
0.75% 0.75%Y 1.80% 1.80%Y 1.65% 1.65%Y 0.85% 0.85%Y
Before reimbursement/fee waiver
46.84% 2385.32%Y 81.32% 2322.86%Y 276.41% 2292.61%Y 116.76% 2402.67%Y
Net investment income, after reimbursement/fee waiver
1.25% 1.77%Y 1.41% 1.48%Y 5.61% 5.42%Y 4.66% 4.61%Y
Portfolio turnover rate
22% 32% 61% 32% 301% 165% __ __
Net assets, end of period (in thousands)
$ 164 $ 1 $ 141 $ 1 $ 38 $ 1 $ 103 $ 1
</TABLE>
Y 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 $(9.16) and $(212.42) for the Index Fund, $(15.74) and
$(215.60) for the Balanced Fund, $(25.99) and $(118.62) for the Bond Fund, and
$(1.05) and $(12.07) for the Cash Reserve Fund for the periods ended December
31, 1999 and 1998, respectively. 2 Total return represents aggregate total
return for the period indicated and is not annualized, for periods less than one
year. Performance shown does not include effects of any sales charges. 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
notes to financial statements
December 31, 1999
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"),
which are diversified (collectively referred to as the "Funds"). For information
on investment objectives and strategies, please refer to the Funds' prospectus.
All of the Premier Funds, with the exception of the High Yield Fund, offer three
classes of shares, Investor, Class A and Class M. The High Yield Fund offers two
classes of shares, the Investor and the Institutional Class. 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 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 and capital gain distributions are
determined in accordance with income tax regulations that 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, 1999 for Federal income
tax purposes, the Value Fund has a capital loss carry-forward of $80,165,
expiring in 2006. The High Yield Fund and the Bond Fund have capital loss
carry-forwards of $1,066,147 and $159,481, respectively, expiring in 2007. The
High Yield Fund has elected to defer current year post October losses as though
the losses were incurred on the first day of the next calendar year, the amount
deferred was, $1,525,388. On December 15, 1999, the Aggressive Growth Fund, the
Small Company Fund, the Equity Fund, the Index Fund, the Balanced Fund, the High
Yield Fund and the Bond Fund declared long-term capital gains distributions of
$6,304,851, $14,336,737, $9,115,119, $1,130,713, $3,437,694, $2,646 and $48,858,
respectively.
The following percentages of ordinary dividends received during 1999 qualify for
the 70% corporate dividend received deduction: Small Company Fund 3.30%, Index
Fund 34.57%, Balanced Fund 13.83% and High Yield Fund 1.84%. To determine the
amount of dividends that qualify, corporate shareholders should multiply the
total ordinary dividend received during 1999 by the percentage noted above for
each fund in which they invest.
Net investment income distributions and capital gains distributions are
determined in accordance with income tax regulations that may differ from
generally accepted accounting principles. These differences are due to differing
treatments for items such as deferral of wash sales, net operating losses and
capital loss carry-forwards. Permanent items identified in the period ended
December 31, 1999, have been reclassified among components of net assets as
follows:
Undistributed
Undistributed Net Realized
Net Investment Gains Paid-In
Fund Income and Losses Capital
Aggressive Growth Fund 2,693,151 (2,295,263) (397,888)
Small Company Fund 2,293,507 (2,293,507) --
Equity Fund 3,518,585 -- (3,518,585)
Value Fund 81,214 -- (81,214)
Index Fund -- -- --
Balanced Fund (168) 168 --
High Yield Fund 85,977 (79,841) (6,136)
Bond Fund 712 (416) (296)
Cash Reserve Fund -- -- --
(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"), an indirect, wholly owned subsidiary of AEGON N.V., on
behalf of each Fund. For its services to the Funds, the Investment Adviser
receives a monthly fee, based on an annual percentage of the average daily net
assets of each Fund. The annual fee for the Funds are as follows:
First Next In Excess of
Fund $1 Billion $1 Billion $2 Billion
Aggressive Growth Fund 0.85% 0.82% 0.80%
Small Company Fund 0.85% 0.82% 0.80%
Equity Fund 0.85% 0.82% 0.80%
Value Fund 0.75% 0.72% 0.70%
Index Fund 0.30% 0.30% 0.30%
Balanced Fund 0.75% 0.72% 0.70%
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"), an indirect, wholly owned subsidiary of AEGON N.V. 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 an indirect,
wholly-owned subsidiary of AEGON N.V.
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 year ended December 31, 1999, the Funds expensed aggregate fees of $55,575
to all directors who are not affiliated persons of the Investment Adviser.
Certain directors and officers of the Funds are also directors and officers of
the Investment Adviser and other affiliated Transamerica entities. As of
December 31, 1999, Transamerica Corporation and its affiliates held the
following percentages of outstanding shares:
Fund
Aggressive Growth Fund 10.78%
Small Company Fund 9.00%
Equity Fund 22.81%
Value Fund 60.60%
Index Fund 59.90%
Balanced Fund 44.73%
High Yield Fund 98.01%
Bond Fund 83.23%
Cash Reserve Fund 24.31%
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 fee. 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 year ended December 31, 1999 were as follows:
U.S. U.S.
Government ProceedsGovernment
Fund Purchases Purchases from Sales Sales
<S> <C> <C> <C> <C>
Aggressive Growth Fund $163,084,121 $ -- $185,372,530 $ --
Small Company Fund 103,426,104 -- 120,245,751 --
Equity Fund 134,527,557 -- 187,412,219 --
Value Fund 7,832,774 -- 8,354,209 --
Index Fund 10,384,797 -- 8,112,017 --
High Yield Fund 34,439,465 -- 22,067,306 --
Balanced Fund 38,006,617 969,531 34,843,642 2,039,531
Bond Fund 29,965,102 19,098,077 32,438,445 15,131,923
5. Capital Stock Transactions
At December 31, 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
Year Ended Year Ended
December 31, 1999 December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 10,835,790 $ 271,958,612 12,567,050 $220,057,887
Capital stock issued
upon reinvestment
of dividends and
distributions 209,406 6,135,460 37 649
Capital stock redeemed (11,903,966) (297,271,852) (5,700,247) (97,462,828)
Net increase (decrease) (858,770) $ (19,177,780) 6,866,840 $122,595,708
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 26,724 $ 641,778 125 $ 2,285
Capital stock issued
upon reinvestment
of dividends and
distributions 671 19,627 -- --
Capital stock redeemed (4,242) (109,486) (61) (1,255)
Net increase 23,153 $ 551,919 64 $ 1,030
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 16,674 $434,286174 $ 2,661
Capital stock issued
upon reinvestment
of dividends and
distributions 496 14,491 -- --
Capital stock redeemed (56) (1,407) (108) (2,219)
Net increase 17,114 $447,370 66 $ 442
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
SMALL COMPANY fund Authorized Shares-- 60,000,000
Year Ended Year Ended
December 31, 1999 December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 15,398,720 $ 412,148,183 14,176,467 $249,749,475
Capital stock issued
upon reinvestment
of dividends and
distributions 712,901 22,791,436 43,140 738,126
Capital stock redeemed (16,767,387) (434,285,494) (5,588,738) (96,982,795)
Net increase (decrease) (655,766) $ 654,125 8,630,869 $153,504,806
TRANSAMERICA PREMIER
SMALL COMPANY fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 71,083 $ 2,000,033 113 $1,935
Capital stock issued
upon reinvestment
of dividends and
distributions 1,868 59,585 -- --
Capital stock redeemed (45,687) (1,337,567) (48) (948)
Net increase 27,264 $ 722,051 65 $ 987
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
SMALL COMPANY fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 14,504 $419,880185 $ 2,605
Capital stock issued
upon reinvestment
of dividends and
distributions 1,270 40,376 -- --
Capital stock redeemed (616) (16,795)(118) (2,343)
Net increase 15,158 $443,461 67 $ 262
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
EQUITY fund Authorized Shares-- 100,000,000
Year Ended Year Ended
December 31, 1999 December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 7,761,432 $ 211,183,278 13,980,385 $ 298,503,722
Capital stock issued
upon reinvestment
of dividends and
distributions 320,772 8,952,147 11,728 265,226
Capital stock redeemed (9,675,400) (262,222,835) (8,295,617) (175,260,229)
Net increase (decrease) (1,593,196) $ (42,087,410) 5,696,496 $ 123,508,719
TRANSAMERICA PREMIER
EQUITY fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 16,223 $436,00391 $1,991
Capital stock issued
upon reinvestment
of dividends and
distributions 527 14,662 -- --
Capital stock redeemed (172) (5,302) (39) (913)
Net increase 16,578 $445,363 52 $1,078
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
EQUITY fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 17,873 $490,649142 $ 2,800
Capital stock issued
upon reinvestment
of dividends and
distributions 555 15,395 -- --
Capital stock redeemed (50) (1,347) (91) (2,111)
Net increase 18,378 $504,697 51 $ 689
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
VALUE fund Authorized Shares-- 50,000,000
Year Ended Period Ended
December 31, 1999 December 31, 1998**
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 146,708 $ 1,585,082 1,144,521 $11,326,374
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 2,282 23,819
Capital stock redeemed (192,450) (2,067,820) (286,825) (2,781,038)
Net increase (decrease) (45,742) $ (482,738) 859,978 $ 8,569,155
**Inception -- March 31, 1998.
TRANSAMERICA PREMIER
VALUE fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 7,766 $82,786 119 $1,150
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- 3
Capital stock redeemed (183) (1,974)-- --
Net increase 7,583 $80,812 119 $1,153
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
VALUE fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 6,219 $66,770 303 $ 2,640
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- 1
Capital stock redeemed -- -- (184) (1,846)
Net increase 6,219 $66,770 119 $ 795
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
INDEX fund Authorized Shares-- 60,000,000
Year Ended Year Ended
December 31, 1999 December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 831,496 $ 16,749,659 650,076 $11,205,373
Capital stock issued
upon reinvestment
of dividends and
distributions 112,998 2,370,775 118,635 2,151,698
Capital stock redeemed (539,852) (10,997,701) (366,825) (6,065,538)
Net increase 404,642 $ 8,122,733 401,886 $ 7,291,533
TRANSAMERICA PREMIER
INDEX fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 44,170 $ 870,556 106 $1,828
Capital stock issued
upon reinvestment
of dividends and
distributions 1,071 22,394 2 34
Capital stock redeemed (20,788) (423,599) (37) (684)
Net increase 24,453 $ 469,351 71 $1,178
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
INDEX fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 7,345 $148,69381 $1,410
Capital stock issued
upon reinvestment
of dividends and
distributions 304 6,342 1 33
Capital stock redeemed (53) (1,093) (15) (277)
Net increase 7,596 $153,942 67 $1,166
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
BALANCED fund Authorized Shares-- 60,000,000
Year Ended Year Ended
December 31, 1999 December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 1,854,435 $ 37,149,248 1,996,396 $ 35,766,272
Capital stock issued
upon reinvestment
of dividends and
distributions 226,080 4,496,017 126,519 2,408,985
Capital stock redeemed (2,154,606) (42,957,109) (629,185) (11,116,532)
Net increase (decrease) (74,091) $ (1,311,844) 1,493,730 $ 27,058,725
TRANSAMERICA PREMIER
BALANCED fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 21,360 $ 427,905 105 $1,915
Capital stock issued
upon reinvestment
of dividends and
distributions 1,127 22,384 3 48
Capital stock redeemed (5,998) (121,450) (41) (798)
Net increase 16,489 $ 328,839 67 $1,165
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
BALANCED fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 6,448 $129,41277 $1,384
Capital stock issued
upon reinvestment
of dividends and
distributions 463 9,173 2 47
Capital stock redeemed (110) (2,227) (13) (246)
Net increase 6,801 $136,358 66 $1,185
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
HIGH YIELD Bond fund Authorized Shares-- 50,000,000
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 292,579 $ 2,869,580 209,068 $2,123,135
Capital stock issued
upon reinvestment
of dividends and
distributions 15,279 147,108 3,661 35,236
Capital stock redeemed (280,032) (2,727,807) (67,232) (862,188)
Net increase 27,826 $288,881 145,497 $1,296,183
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
HIGH YIELD Bond fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Institutional Class Shares Shares Amount Shares Amount
Capital stock sold 212,399 $1,999,524 7,104,572 $71,144,583
Capital stock issued
upon reinvestment
of dividends and
distributions 718,257 6,869,383 325,487 3,133,597
Capital stock redeemed (15,070) (140,566) -- --
Net increase 915,586 $8,728,341 7,430,059 $74,278,180
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
BOND fund Authorized Shares-- 60,000,000
Year Ended Year Ended
December 31, 1999 December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 287,583 $ 2,919,829 376,335 $3,888,749
Capital stock issued
upon reinvestment
of dividends and
distributions 110,847 1,103,171 107,537 1,108,252
Capital stock redeemed (334,952) (3,394,603) (214,402) (2,212,826)
Net increase 63,478 $ 628,397 269,470 $ 2,784,175
TRANSAMERICA PREMIER
BOND fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 17,264 $176,961129 $1,330
Capital stock issued
upon reinvestment
of dividends and
distributions 878 8,698 4 44
Capital stock redeemed (3,370) (33,399)(13) (140)
Net increase 14,772 $152,260 120 $1,234
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
Bond fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 3,711 $36,894 139 $1,436
Capital stock issued
upon reinvestment
of dividends and
distributions 93 912 4 44
Capital stock redeemed (25) (248) (28) (293)
Net increase 3,779 $37,558 115 $1,187
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
CASH RESERVE fund Authorized Shares-- 510,000,000
Year Ended Year Ended
December 31, 1999 December 31, 1998
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 468,845,360 $ 468,845,360 123,020,893 $123,020,893
Capital stock issued
upon reinvestment
of dividends and
distributions 4,763,706 4,763,706 3,475,945 3,475,945
Capital stock redeemed (384,574,280) (384,574,280) (101,476,437) (101,476,437)
Net increase 89,034,786 $ 89,034,786 25,020,401 $ 25,020,401
TRANSAMERICA PREMIER
CASH RESERVE fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class A Shares Shares Amount Shares Amount
Capital stock sold 3,001,634 $3,001,634 1,315 $1,315
Capital stock issued
upon reinvestment
of dividends and
distributions 37,476 37,476 27 27
Capital stock redeemed (2,221,050) (2,221,050) (188) (188)
Net increase 818,060 $ 818,060 1,154 $1,154
*Inception -- June 30, 1998.
TRANSAMERICA PREMIER
CASH RESERVE fund
Year Ended Period Ended
December 31, 1999 December 31, 1998*
Class M Shares Shares Amount Shares Amount
Capital stock sold 130,652 $130,652 1,210 $1,210
Capital stock issued
upon reinvestment
of dividends and
distributions 1,244 1,244 26 26
Capital stock redeemed (30,012) (30,012) (60) (60)
Net increase 101,884 $101,884 1,176 $1,176
*Inception -- June 30, 1998.
</TABLE>
notes to financial statements (continued)
December 31, 1999
notes to financial statements (concluded)
December 31, 1999><transamerica premier funds 1999 annual report
To the Shareholders and Board of Directors of Transamerica Investors, Inc.
We have audited the accompanying statements of assets and liabilities, including
the schedules of investments, of Transamerica Investors, Inc. (comprising
respectively, the Transamerica Premier Aggressive Growth Fund, Transamerica
Premier Small Company Fund, Transamerica Premier Equity Fund, Transamerica
Premier Value Fund, Transamerica Premier Index Fund, Transamerica Balanced Fund,
Transamerica Premier High Yield Bond Fund, Transamerica Premier Bond Fund, and
Transamerica Premier Cash Reserve Fund) (the "Funds") as of December 31, 1999,
and the related statements of operations for the fiscal year then ended, changes
in net assets for each of the two fiscal years in the period then ended, and the
financial highlights for each of the five fiscal years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of December 31, 1999, by correspondence with the custodian and brokers.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective funds constituting Transamerica Investors, Inc., as of
December 31, 1999, and the results of their operations for the fiscal year then
ended, the changes in their net assets for each of the two fiscal years in the
period then ended and their financial highlights for each of the five fiscal
years in the period then ended, in conformity with accounting principles
generally accepted in the United States.
Los Angeles, California
January 31, 2000
Premier Funds
Directors
Richard N. Latzer
Chairman of the Board
Sidney E. Harris
Charles C. Reed
Carl R. Terzian
Transamerica Premier Funds
Officers
Gary U. Rolle
President
Reid A. Evers
Secretary
William T. Miller
Treasurer
Donald P. Radisich
Vice President
Christopher W. Shaw
Assistant Vice President
Investment Adviser
Transamerica Investment Services
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)2000 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 562-200
