Transamerica Premier Funds
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 32
Statements of Operations 33
Statements of Changes in Net Assets 34
Financial Highlights 37
Notes to Financial Statements 51
<PAGE>
Dear Fellow Shareholders
The stock market is quite fascinating. In the last six months alone, investors
nervously watched as it moved to new highs, then toyed with a bear market sell
off. We heightened our awareness of the `Old' versus the `New' economy. The
unemployment rate hit a 30-year low, and concerns about higher inflation
prompted the Federal Reserve to raise interest rates in an attempt to slow down
the economy. No doubt, on any given day, investing in the stock market brings
varying levels of excitement.
We understand that your investments are a very serious matter. For this reason,
we do not `play' the market. We diligently pursue and research `premier'
companies with the intention of buying and owning them for the long term.
`Premier' companies have many or all of these features:
o Shareholder-oriented management o Dominance in market share o Cost production
advantages o Leading brands o Self-financed growth o Attractive reinvestment
opportunities
The Transamerica Premier Funds are firmly committed to an investment philosophy
that has provided consistent returns over the long term. Our family of nine
funds offers a range of investment objectives, from capital appreciation and
long-term growth to asset allocation, liquidity and preservation of capital.
The Transamerica Premier Aggressive Growth, Small Company, Equity, Index,
Balanced and Bond Funds were awarded four and five-star ratings by Morningstar
(see chart). Mutual Funds magazine recently listed the Premier Value Fund as one
of the top 100 Funds for the next 12 months.1 The Premier High Yield Bond Fund
recently placed in the top third among 350 high yield bond funds, while the
Premier Value, Balanced, Bond and Cash Reserve Funds ranked in the top 15 of
their respective categories, according to Lipper Analytical Data Services, Inc.2
The success of the Transamerica Premier Funds is driven by our investment
philosophy. Through the focused efforts of our portfolio managers and research
analysts, we provide sound investment management expertise. Although it is
difficult to predict what the market will bring, our shareholders can be assured
that our `premier' company investment philosophy remains unchanged.
This report provides detailed information on all of the Transamerica Premier
Funds such as performance, fund holdings, portfolio allocations and portfolio
manager commentaries. As in the past, the Investment Outlook is also provided on
page 2. If you have any questions regarding your Transamerica Premier Funds
account, please do not hesitate to give us a call at 1-800-892-7587, option 3.
Thank you for your continued interest in the Transamerica Premier Funds.
Sincerely,
Gary U. Rolle
President
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
risk factor that reflects funds performance below 90-day Treasury bill returns.
Past performance is no guarantee of future results. Ratings are for the investor
share class only, other classes may vary. These are 3-year ratings as of 6/30/00
among 3,642 domestic equity funds and 1,684 taxable bond funds.
Morningstar Overall Rating(TM) Premier Fund
*****
Rating for 3 years ending 6/30/00 Aggressive Growth
among 3,642 Domestic Equity Funds Small Company
**** Equity
Rating for 3 years ending 6/30/00 Index
among 3,642 Domestic Equity Funds Balanced
****
Rating for 3 years ending 6/30/00 Bond
among 1,684 Taxable Bond Funds
1 MUTUAL FUNDS magazine, August 2000 issue. Top 100 Funds for the next 12 months
are chosen using MUTUAL FUNDS' performance and risk analysis of all diversified
U.S. stock funds, as well as a forecast of a 4% gain in the Standard & Poor's
500.
2 Among 350 High Yield Bond Funds, 964 Growth and Income Funds, 460 Balanced
Funds, 142 Investment Grade Corporate Bond Funds and 362 Money Market Funds for
the one-year period ending June 30, 2000.
<PAGE>
Transamerica Investment Adviser Outlook Summary
The economy continued to expand over the second quarter, further extending the
longest period of prosperity in U.S. history. During the second quarter
unemployment hit a record low of 3.9% and energy prices spiked upwards, creating
concern that rising prices would contribute to inflationary pressures. As a
result, the Federal Reserve raised the federal funds rate 50 basis points in May
to 6.50%, bringing the total number of rate increases to six since June 30,
1999, when rates were raised from 4.75%.
Towards the end of the second quarter, the pace of growth in the economy slowed
in response to the Federal Reserve's rate increases, raising hopes that the
proverbial "soft landing" would be achievable. Slowing was particularly
prevalent in the consumer sector, which accounts for about two thirds of GDP. In
response, the Federal Reserve left rates unchanged at the June 28 Federal Open
Markets Committee (FOMC) meeting. While the Federal Reserve has retained a
tightening bias as it awaits more information on the economy, we expect that we
are near the end of the tightening cycle, and that the federal funds rate should
peak at no higher than 7.00%.
The Federal Reserve should be able to succeed with a soft landing due to
continued stimulation on two fronts. First, accelerating international strength
should offset slowing in the U.S. consumer sector. Second, the U.S. government
continues to be a source of significant fiscal stimulus through both tax cuts
and new spending initiatives. Given the high rate of growth we have had in
recent quarters, there is plenty of room for the economy to moderate without
experiencing contraction. As a result, the economy should be able to slow to a
more sustainable, less inflationary growth rate.
The biggest risk to this outlook is the financial market's reaction to the
perception that the Fed is almost finished doing its work. The recent rallies in
both the stock and bond markets are likely to have a stimulative effect on the
consumer both through the "wealth effect" of higher stock prices, and through
the impact of lower interest rates.
Consumer
Consumer confidence, though still high by historical standards, is off of its
peak. Much of the strength seen in the consumer sector during the first quarter
was due to one time and seasonal events such as census hiring, tax refunds,
first quarter bonuses, and warm weather. Furthermore, the second quarter was
impacted by higher gasoline prices and a slowing in the labor market. Higher
gasoline prices have the same impact as higher taxes in that it reduces
discretionary income. With gasoline prices having hit over $2 a gallon in many
parts of the Midwest, a recent Gallup Poll found that 36% of Americans say that
higher gasoline prices have caused financial hardship.
The labor markets showed signs of slowing during the second quarter, further
pressuring the consumer. During the fourth quarter of 1999 job growth averaged
258,000 per month, and during the first quarter of 2000 job growth (adjusted for
census workers) averaged 266,000 per month. In contrast, job growth during the
second quarter of 2000 (again adjusting for census workers) averaged 118,000 per
month -- a significant slowdown. Unemployment claims have also recently hit a
12-month high.
The result of these factors is that towards the end of the second quarter the
consumer took a break from the frantic spending pace of the first quarter, as
evidenced by slowing retail sales at department stores and auto dealers. The
Federal Reserve's six rate increases over the past year seem to be having an
impact on the interest rate sensitive housing sector as well. Home mortgage
borrowing rates have risen significantly, with 30-year conventional mortgage
rates currently over 8.00%, compared to about 7.25% last spring. As a result,
housing starts peaked last February at over 1.8 million units (annualized), and
have been trending down since.
Finally, with the recent spate of asset quality problems in the consumer sector
reported by banks and consumer finance companies, lending standards are expected
to rise. As a result, borrowing costs for the consumer should continue to rise.
With consumer credit levels at record highs, job growth slowing, tighter lending
standards and higher rates, the squeeze is on the consumer.
Capital Spending
The government should be a continued source of fiscal stimulus due to continued
surpluses at the local, state, and federal levels. With federal tax receipts up
over 10% year-over-year, the political temptation to cut taxes and initiate new
spending programs is proving irresistible. As a result, Federal outlays
excluding interest is now up almost 6% year-over-year. Additional stimulus in
the form of marriage and estate tax reform and a Medicare drug benefit are also
likely to be enacted. And, as the election season heats up, both parties will
continue to offer ever more generous tax breaks and spending programs to the
populace.
In the private sector higher rates brought about by both the Federal Reserve and
increased financial market selectivity will slow capital expenditures by
increasing the cost of financing new projects. Companies which are experiencing
margin pressures from higher labor and raw materials costs, or are burdened with
overcapacity are the most likely to exercise self-discipline in the face of a
slowing domestic economy. The paper and forest products sector is a noteworthy
example; this sector is expected to experience for the first time a capital
expenditure rate that is less than its depreciation rate. The one sector which
should continue to benefit from capital spending is the technology sector, where
most companies can still expect to see productivity gains from their outlays.
Inflation
One area of concern for the economy is the pick-up in inflation. Although
current inflation rates are still low by historical standards, the trend is
cause for some concern. Core inflation (CPI excluding food and energy) did
pick-up during the second quarter, and is now increasing at a 2.4% rate
year-over-year. If the more volatile food and energy components are included,
inflation is increasing at over 3% year-over-year. Commodity prices,
particularly energy, spiked up significantly during the second quarter. For
example, crude oil began the year at $21 a barrel and rose to about $31 a barrel
by the end of the second quarter.
Compensation growth also continued to be an area of concern as the unemployment
rate hit a record low during the second quarter. The Employment Cost Index,
which is a broad measure of compensation that captures benefits as well as
wages, is now growing at over 4%. Part of the reason for the increase in
compensation costs is that benefits costs are accelerating rapidly. Watson
Wyatt, the employment consultants, reported that health plan price increases of
9.8% were reported for 1999. The difficulty this introduces is that companies
have to absorb these cost increases, which cuts into margins and reduces
earnings, or they have to pass along these costs to consumers in the form of
higher prices, which leads to increased inflation.
Interest Rates
The Federal Reserve is expected to stay on hold through the end of the year as
Federal Reserve Chairman Greenspan continues with his gradualist approach, and
waits to see if the rate increases implemented so far are enough to slow the
economy to a non-inflationary growth rate.
Shorter maturity treasuries are expected to continue to trade in the current
range, with two-year treasuries trading between 6.25% and 6.75%. Longer maturity
treasuries will likely trade in the 5.75% to 6.25% range as the Treasury
Department's buyback program continues to reduce the supply of 10 to 30-year
maturity treasuries. The yield curve is expected to remain inverted, although
the extremes in inversion were probably seen during the second quarter, when
expectations for higher shorter maturity rates reached a peak.
The risk to this outlook is that the economy bounces back during the second half
of 2000, which would result in interest rates higher than that in our forecast.
This would be a repeat of the pattern of the last two years where a slower
second quarter was followed by a stronger third and fourth quarter. We do not
expect this to occur; what is different this time is the pronounced slowdown in
job growth during the second quarter of 2000, which did not occur in 1999 or
1998.
Stock Market
The first half of the year proved to be very volatile, with stocks moving up
during the first quarter, but correcting sharply in the second quarter. The
Federal Reserve's resolve to fight inflationary pressures by raising short-term
interest rates was a major factor behind this volatility. During the third
quarter it will be difficult for equity market indices to make new highs in the
face of the Federal Reserve's continued tightening bias. Nonetheless, we believe
that certain sectors of the market will do much better during the second half,
as proven companies with excellent growth prospects receive more focus.
Profit warnings towards the end of the second quarter became more prevalent,
particularly for companies facing higher raw materials and labor costs. While
producers are demonstrating a greater ability to raise prices, raw materials and
labor costs rose at a faster rate than prices during the second quarter. As a
result, profit growth, while still expected to be higher versus a year earlier,
is expected to decelerate. Mergers and acquisitions, which are generally
positive for equity market valuations, also slowed over the second quarter.
More positively, the health of the market improved by two major measures. First,
the market's correction in the second quarter eliminated many of the excess
valuations in the Internet and technology sectors that were not sustainable.
This correction has had the impact of shutting down the initial public offering
market for lower quality companies. Secondly, margin debt levels have come off
of their highs, which reduces the potential for volatility on the downside.
Margin debt fell by $26.8 billion in April and $11 billion in May. With a
moderation in the speculative environment for stocks, we think that the market
will demonstrate a renewed focus on higher quality companies with real earnings
during the third quarter.
Finally, the environment in Europe continues to be positive for stocks due to
Europe's younger economic cycle, still moderate inflation, and continued
progress on labor and financial market reform. With major business and personal
tax reform in Germany removing a major barrier to corporate mergers, the
momentum in reform should be boosted for years to come. The heated activity in
European mergers and acquisitions over the second quarter of 2000 is symptomatic
of the structural reform that is already taking place.
<PAGE>
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 first half of 2000. The Fund generated a total return of 5.22% for
the 6-month period ended June 30, 2000, in comparison to a -0.42% decline 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 53.81%, while the S&P 500 has returned
19.64%.
We are pleased to announce that the Fund received a five-star rating from
Morningstar on June 30, 2000 for its three year performance.+
Portfolio Manager Comments
The Fund's strategy of investing in leading management teams in growth
industries continues to be rewarded. Although the majority of our stocks were
very strong contributors to the Fund's performance, the largest percentage
gainers were in the semiconductor sector. Electronic circuits are becoming
increasingly important as enablers of better computing and communications
solutions. Our top holdings include Intel in microprocessors, RF Micro Devices
in wireless data circuits, and QLogic in data storage system circuits.
The Fund also is invested in high-returning, non-technology businesses in
healthcare, financial, and consumer services. We see significant investment
returns for the leaders in these fields. Our holdings in these fields include
Charles Schwab, EchoStar Communications, and Pfizer Inc.
Portfolio Asset Mix
Common Stocks 100.0%
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.
Thank you for your continued investment in the Transamerica Premier Aggressive
Growth Fund.
+ 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 risk factor that reflects funds performance
below 90-day Treasury bill returns. Past performance is no guarantee of future
results. Ratings are for the investor share class only, other classes may vary.
These are 3-year ratings as of 6/30/00 among 3,642 domestic equity funds.
Comparison of change in value of a $10,000 investment in Transamerica Premier
Aggressive Growth Fund with the S&P 500 Index**
Total Returns Average Annual
As of June 30, 2000 Since Inception* One Year
Investor Class 53.81% 38.30%
Class A 50.91% 38.15%
Class M 52.79% 37.78%
S&P 500 Index 19.64% 7.24%
--Investor Class ($36,387 at 6/30/00) --Class A ($34,370 at 6/30/00) ---Class M
($35,671 at 6/30/00) ---S&P 500 Index ($17,135 at 6/30/00)
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") consists of
500 widely held, publicly traded common stocks. The S&P 500 Index does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents.
* Investor Class -- June 30, 1997. Class A and Class M -- June 30, 1998; average
annual returns are based on the July 1, 1997 commencement date for the Investor
Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
Transamerica Premier Aggressive Growth Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Market
Value
COMMON STOCKS-- 100.8%
Biotechnology-- 2.8%
<S> <C> <C>
PE Corp.-Celera Genomics Groupa 70,000 $6,545,000
Communication Equipment-- 12.9%
3Com Corporationa 225,000 12,965,625
QUALCOMM, Inc. a 135,000 8,100,000
RF Micro Devices, Inc. a 100,000 8,762,500
29,828,125
Computers & Peripherals-- 11.1%
Dell Computer Corporationa 287,500 14,177,344
EMC Corporationa 150,000 11,540,625
25,717,969
Diversified Financials-- 11.8%
American Express Company 135,000 7,036,875
Charles Schwab Corporation 375,000 12,609,375
Knight Trading Group, Inc. a 255,000 7,602,188
27,248,438
Diversified Telecommunications Services-- 12.4%
Qwest Communications International, Inc. a 150,000 7,453,125
US West, Inc. 170,000 14,577,500
Vodafone AirTouch PLC ADRb 163,000 6,754,312
28,784,937
Electronic Equipment & Instruments-- 0.2%
Palm, Inc. a 13,000 433,875
Food & Drug Retailing-- 3.6%
CVS Corporation 210,000 8,400,000
Hotels, Restaurants & Leisure-- 2.0%
Speedway Motorsports, Inc. a 200,000 4,600,000
Internet Software & Services-- 7.2%
DigitalThink, Inc. a 166,500 5,973,188
VeriSign, Inc. a 60,000 10,590,000
16,563,188
Media-- 1.4%
EchoStar Communications Corp., Class A a 100,000 3,317,990
Pharmaceuticals-- 2.3%
Pfizer, Inc. 110,000 5,280,000
Semiconductor Equipment & Products-- 22.7%
Applied Materials, Inc. a 170,000 15,406,250
Intel Corporation 150,000 20,053,125
Maxim Integrated Products, Inc. a 128,000 8,696,000
QLogic Corporation a 125,000 8,257,812
52,413,187
Software-- 7.8%
i2 Technologies, Inc. a 120,000 12,511,875
Microsoft Corporation a 70,000 5,600,000
18,111,875
Transportation & Logistics-- 2.6%
United Parcel Service, Inc. 100,000 $5,900,000
Total Common Stocks
(cost $150,698,578) 233,144,584
REPURCHASE AGREEMENT-- 0.1%
State Street Bank and Trust Company,
4.25%, due 07/03/00 (collateralized
by $215,000 par value U.S. Treasury
Note, 6.375%, due 06/30/02, with
a value of $275,000, cost $269,000) $269,000 269,000
Total Investments-- 100.9%
(cost $150,967,578)* 233,413,584
Liabilities in Excess of Other Assets-- (0.9)% (2,137,050)
Net Assets-- 100.0% $231,276,534
a Non-income producing security
b ADR -- American Depositary Receipts
</TABLE>
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $84,102,946 and $1,656,940,
respectively. Net unrealized appreciation for tax purposes is $82,446,006.
See notes to financial statements
<PAGE>
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 a strong first
half of 2000. The Fund generated a total return of 7.60% for the six-month
period ended June 30, 2000, in comparison to a 3.05% 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 67.51% while the Russell 2000 has returned
10.69%.
For the three-year period ended June 30, 2000, the Fund is ranked #1 out of 497
small cap funds in the country, according to Lipper Analytical Services, Inc.
The Fund also received a five-star rating by Morningstar for this three-year
period.+
Portfolio Manager Comments
Innovation in new products and services continues to create attractive small
company investment opportunities. 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 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.
Portfolio Asset Mix
Common Stocks 99.4%
Cash and Cash Equivalents 0.6%
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.
+ The Fund ranked 79 among 788 small cap funds for the one-year period ended
June 30, 2000, according to Lipper Analytical Services. 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 risk factor that
reflects funds performance below 90-day Treasury bill returns. Past performance
is no guarantee of future results. Ratings are for the investor share class
only, other classes may vary. These are 3-year ratings as of 6/30/00 among 3,642
domestic equity funds.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN TRANSAMERICA
PREMIER SMALL COMPANY FUND WITH THE RUSSELL 2000 INDEX**
Total Returns Average Annual
As of June 30, 2000 Since Inception* One Year
Investor Class 67.51% 72.11%
Class A 64.27% 71.61%
Class M 66.32% 71.24%
Russell 2000 Index 10.69% 14.48%
--Investor Class ($47,000 at 6/30/00) --Class A ($44,326 at 6/30/00) ---Class M
($46,011 at 6/30/00) ---Russell 2000 Index ($13,565 at 6/30/00)
The Russell 2000 Index measures the performance of the 2,000 smallest companies
(approximately 7%) in the Russell 3000 Index (an index composed of the 3000
largest U.S. companies by market capitalization, representing approximately 98%
of the U.S. equity market). The Russell 2000 Index does not reflect any
commissions or fees which would be incurred by an investor purchasing the
securities it represents.
* Investor Class -- June 30, 1997. Class A and Class M -- June 30, 1998; average
annual returns are based on the July 1, 1997 commencement date for the Investor
Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
<TABLE>
<CAPTION>
Transamerica Premier Small Company Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
COMMON STOCKS-- 99.4%
Auto Components-- 0.0%
<S> <C> <C>
Midas, Inc. 1,700 $ 34,000
Business Services-- 3.2%
NetRatings, Inc. a 450,000 11,531,250
Chemicals-- 2.5%
Minerals Technologies, Inc. 192,200 8,841,200
Communication Equipment-- 4.3%
RF Micro Devices, Inc. a 175,000 15,334,375
Communication Services-- 6.9%
360networks, Inc. a 600,000 9,150,000
Aether Systems, Inc. a 30,000 6,150,000
Exodus Communications, Inc. a 200,000 9,212,500
24,512,500
Computers & Business Equipment-- 0.1%
StorageNetworks, Inc. a 3,200 288,800
Drugs & Health Care-- 1.4%
Diametrics Medical, Inc. a 900,000 5,090,625
Electric Utilities-- 3.1%
Montana Power Company 315,000 11,123,437
Electrical Equipment-- 5.6%
American Power Conversion Corporation a 487,500 19,896,094
Electronic Equipment & Instruments-- 5.9%
Millipore Corporation 100,000 7,537,500
Palm, Inc. a 406,000 13,550,250
21,087,750
Food Products-- 3.8%
Dreyer's Grand Ice Cream, Inc. 647,600 13,599,600
Hotels, Restaurants & Leisure-- 3.4%
Speedway Motorsports, Inc. a 524,500 12,063,500
Industrial Components-- 1.2%
Lydall, Inc. a 400,200 4,252,125
Internet Software & Services-- 12.9%
DigitalThink, Inc. a 394,500 14,152,687
VeriSign, Inc. a 180,000 31,770,000
45,922,687
Media-- 4.9%
Lamar Advertising Company, Class A a 400,000 17,325,000
Semiconductor Equipment & Products-- 8.4%
Cymer, Inc. a 350,900 16,755,475
QLogic Corporation a 200,000 13,212,500
29,967,975
Software-- 14.5%
HNC Software, Inc. a 400,000 24,700,000
i2 Technologies, Inc. a 260,000 27,109,062
51,809,062
Market
Shares Value
Specialty Retail-- 2.5%
Williams-Sonoma, Inc. a 275,000 $ 8,920,313
Telecommunications Equipment-- 6.4%
ONI Systems Corporation a 21,000 2,461,266
Redback Networks, Inc. a 115,000 20,470,000
22,931,266
Transportation & Logistics-- 8.4%
C.H. Robinson Worldwide, Inc. 280,000 13,860,000
Forward Air Corporation a 400,000 1 6,000,000
29,860,000
Total Common Stocks
(cost $210,332,038) 354,391,559
Total Investments-- 99.4%
(cost $210,332,038)* 354,391,559
Other Assets Less Liabilities-- 0.6% 2,140,613
Net Assets-- 100.0% $356,532,172
</TABLE>
a Non-income producing security
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $149,222,466 and $5,162,945,
respectively. Net unrealized appreciation for tax purposes is $144,059,521.
See notes to financial statements
<PAGE>
Transamerica Premier Equity Fund
Portfolio Manager: Jeffrey S. Van Harte, Co-Manager: Gary U. Rolle
Fund Performance
The Premier Equity Fund's (Investor Class) total return for the first half of
2000 compared favorably with the S&P 500 Index, registering a total return of
3.10% versus -0.42% for the S&P 500. Since the Fund's inception in October 1995,
it has returned an average annual gain of 29.71%, compared to 23.20% for the
Index.
Portfolio Manager Comments
The first half of the year proved to be very volatile. Stocks moved up sharply
during the first quarter but corrected sharply in the second quarter. High
valuations in the Internet and technology sectors, along with excessive margin
debt, contributed to the market's correction. Concerns over rising oil prices
and inflation along with the Federal Reserve's resolve to increase short-term
interest rates also added to the market's worries.
Our long-held belief of investing in high-quality, premier companies continued
to pay off as the market's rally in June focused on high-quality growth
companies with proven business models and demonstrable profitability.
Low-quality companies with unproven business models did not come back in the
June rally.
New positions in the Fund in the first half of the year included Northern Trust
and 3Com. We believe Northern Trust is extraordinarily well positioned to serve
the needs of high net worth individuals, the fastest growing segment of
financial services. We also added 3Com given its first half announcement to spin
out to the public its most valuable asset, Palm, Inc. The market for personal
digital assistants (PDA's) is dominated by Palm, and we feel the PDA market is
on the verge of explosive growth.
Portfolio Asset Mix
Common Stocks 99.2%
Cash and Cash Equivalents 0.8%
Going Forward
We think the market's correction in the second quarter eliminated some of the
unhealthy excesses that were not sustainable. We also believe that the Federal
Reserve is near the end of its tightening cycle and that oil prices will
stabilize in the second half of the year. This should allow the market to focus
on the excellent prospects for corporate earnings growth, and we think the stock
market will do well in the second half of the year. We also believe the market
will refocus on proven companies with excellent growth prospects and that our
Fund is well positioned.
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 June 30, 2000 Since Inception* One Year
Investor Class 29.71% 21.59%
Class A 27.96% 21.17%
Class M 28.85% 21.05%
S&P 500 Index 23.20% 7.25%
--Investor Class ($34,380 at 6/30/00) --Class A ($32,237 at 6/30/00) ---Class M
($33,309 at 6/30/00) ---S&P 500 Index ($26,943 at 6/30/00)
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") consists of
500 widely held, publicly traded common stocks. The S&P 500 Index does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30, 1998;
average annual returns are based on the October 2, 1995 commencement date for
the Investor Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
<TABLE>
<CAPTION>
Transamerica Premier Equity Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
COMMON STOCKS-- 99.2%
Banks-- 3.4%
<S> <C> <C>
Northern Trust Corporation 160,000 $10,410,000
Commercial Services & Supplies-- 5.6%
First Data Corporation 350,000 17,368,750
Communication Equipment-- 8.5%
3Com Corporation a 175,000 10,084,375
QUALCOMM, Inc. a 150,000 9,000,000
RF Micro Devices, Inc. a 80,000 7,010,000
26,094,375
Computers & Peripherals-- 16.2%
Dell Computer Corporation a 390,000 19,231,875
EMC Corporation a 400,000 30,775,000
50,006,875
Containers & Packaging-- 1.7%
Sealed Air Corporation a 100,000 5,237,500
Diversified Financials-- 9.8%
Charles Schwab Corporation 900,000 30,262,500
Diversified Telecommunications Services-- 8.0%
Qwest Communications International, Inc. a 350,000 17,390,625
Vodafone AirTouch PLC ADR b 175,000 7,251,562
24,642,187
Electronic Equipment & Instruments-- 2.8%
Agilent Technologies, Inc. a 90,000 6,637,500
Palm, Inc. a 61,000 2,035,875
8,673,375
Food & Drug Retailing-- 8.5%
CVS Corporation 325,000 13,000,000
Kroger Company a 600,000 13,237,500
26,237,500
Internet Software & Services-- 3.0%
DigitalThink, Inc. 39,500 1,417,063
VeriSign, Inc. a 45,000 7,942,500
9,359,563
Media-- 6.1%
Clear Channel Communications, Inc. a 150,000 11,250,000
Lamar Advertising Company, Class A a 175,000 7,579,688
18,829,688
Semiconductor Equipment & Products-- 16.0%
Applied Materials, Inc. a 250,000 22,656,250
Intel Corporation 150,000 20,053,125
Maxim Integrated Products, Inc. a 100,000 6,793,750
49,503,125
Software-- 3.2%
Microsoft Corporation a 125,000 10,000,000
Shares or Market
Principal Amount Value
Specialty Retail-- 2.6%
Gap, Inc. 260,000 $ 8,125,000
Transportation & Logistics-- 3.8%
United Parcel Service, Inc. 200,000 11,800,000
Total Common Stocks
(cost $170,349,712) 306,550,438
REPURCHASE AGREEMENT-- 1.5%
State Street Bank and Trust Company,
4.25%, due 07/03/00 (collateralized
by $4,655,000 par value U.S. Treasury
Note, 6.375%, due 06/30/02, with a
value of $4,655,000, cost $4,559,000) $4,559,000 4,559,000
Total Investments-- 100.7%
(cost $174,908,712)* 311,109,438
Liabilities in Excess of Other Assets-- (0.7)% (2,250,159)
Net Assets-- 100.0% $308,859,279
</TABLE>
a Non-income producing security
b ADR -- American Depositary Receipt
*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 $142,492,170 and $6,291,444,
respectively. Net unrealized appreciation for tax purposes is $136,200,726.
See notes to financial statements
<PAGE>
Transamerica Premier Value Fund
Portfolio Manager: Daniel J. Prislin, Co-Manager: Jeffrey S. Van Harte
Fund Performance
The Transamerica Premier Value Fund's (Investor Class) total return for the
first half of 2000 compared favorably with the S&P 500, registering a total
return of 15.22% vs. -0.42% for the S&P 500.
Portfolio Manager Comments
In the first half of 2000, the equity markets were quite volatile, but ended the
period about where they started. The increased volatility in the stock market
can cause some motion sickness in the short-term, but should not deter us from
our long-term goal of capital appreciation for our shareholders. Our bias toward
businesses with visible cash flows and sustainable competitive advantages has
served us well, as these types of businesses really begin to shine in more
uncertain and volatile markets.
Notable examples of new positions in the Fund in the first half of the year
include Lamar Advertising and 3Com. Lamar is a leader in the billboard
advertising industry, with dominant market share in small to mid size US
markets, and strong cash flow characteristics. 3Com was purchased based on a sum
of the parts valuation. Given 3Coms announced plan to spin out Palm to the
public, we determined that the value of Palm combined with the value of 3Com's
remaining businesses was substantially higher than the 3Com market price.
Portfolio Asset Mix
Common and Preferred Stocks 97.1%
Cash and Cash Equivalents 2.9%
Going Forward
The fairly severe corrections in the Internet and technology sectors experienced
in the first half are healthy for the capital markets in the long term, removing
some of the excesses built into the market recently. In addition, the Federal
Reserve's multiple rate increases appear to be having the intended effect of
slowing down the economy to a more sustainable growth rate. Corporate earnings
growth has been healthy in the first half, and looks to remain so into the
second half of the year. The Fund remains well positioned, made up of leading
companies with identifiable, and growing cash flows driving increased
shareholder value.
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 June 30, 2000 Since Inception* One Year
Investor Class 12.90% 18.87%
Class A 10.10% 18.80%
Class M 12.03% 18.44%
S&P 500 Index 14.64% 7.25%
--Investor Class ($13,135 at 6/30/00) --Class A ($12,418 at 6/30/00) ---Class M
($12,911 at 6/30/00) ---S&P 500 Index ($13,601 at 6/30/00)
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") consists of
500 widely held, publicly traded common stocks. The S&P 500 Index does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents.
* Investor Class -- March 31, 1998. Class A and Class M -- June 30, 1998;
average annual returns are based on the April 1, 1998 commencement date for the
Investor Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
<TABLE>
<CAPTION>
Transamerica Premier Value Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
COMMON STOCKS-- 96.1%
Commercial Services & Supplies-- 14.0%
<S> <C> <C>
Apollo Group, Inc., Class A a 21,300 $ 596,400
First Data Corporation 11,400 565,725
Robert Half International, Inc. a 18,000 513,000
1,675,125
Communication Equipment-- 5.4%
3Com Corporation a 11,300 651,162
Computers & Peripherals-- 3.0%
EMC Corporation a 4,600 353,913
Containers & Packaging-- 1.7%
Sealed Air Corporation a 4,000 209,500
Diversified Financials-- 1.8%
Knight Trading Group, Inc. a 7,300 217,631
Diversified Telecommunications Services-- 5.0%
US West, Inc. 7,000 600,250
Electrical Equipment-- 7.4%
American Power Conversion Corporation a 21,600 881,550
Electronic Equipment & Instruments-- 2.0%
Agilent Technologies, Inc. a 2,800 206,500
Palm, Inc. a 1,040 34,710
241,210
Food & Drug Retailing-- 15.7%
CVS Corporation 16,000 640,000
Kroger Company a 28,000 617,750
Safeway, Inc. a 13,800 622,725
1,880,475
Food Products-- 2.8%
Dreyer's Grand Ice Cream, Inc. 16,000 336,000
Hotels, Restaurants & Leisure-- 7.2%
McDonald's Corporation 13,000 428,187
Speedway Motorsports, Inc. a 19,000 437,000
865,187
Media-- 10.8%
Clear Channel Communications, Inc. a 6,600 495,000
Comcast Corporation, Class A 6,500 252,688
Lamar Advertising Company, Class A a 12,500 541,406
1,289,094
Pharmaceuticals-- 2.9%
Bristol-Myers Squibb Company 6,000 349,500
Semiconductor Equipment & Products-- 8.1%
Applied Materials, Inc. a 4,800 435,000
Intel Corporation 4,000 534,750
969,750
Specialty Retail-- 3.5%
Gap, Inc. 13,500 421,875
Shares or Market
Principal Amount Value
Transportation & Logistics-- 4.8%
Forward Air Corporation a 4,000 $ 160,000
United Parcel Service, Inc. 7,000 413,000
573,000
Total Common Stocks
(cost $9,198,000) 11,515,222
PREFERRED STOCK-- 1.0%
Containers & Packaging-- 1.0%
Sealed Air Corporation
(cost $154,186) 2,500 126,563
REPURCHASE AGREEMENT-- 1.4%
State Street Bank and Trust Company,
4.25%, due 07/03/00 (collateralized
by $170,000 par value U.S. Treasury
Note, 6.375%, due 06/30/02, with
a value of $170,000, cost $164,000) $164,000 164,000
Total Investments-- 98.5%
(cost $9,516,186)* 11,805,785
Other Assets Less Liabilities-- 1.5% 181,797
Net Assets-- 100.0% $11,987,582
</TABLE>
a Non-income producing security
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $2,728,872 and $439,273,
respectively. Net unrealized appreciation for tax purposes is $2,289,599.
See notes to financial statements
<PAGE>
Transamerica Premier Index Fund
Portfolio Manager: Lisa L. Hansen, Co-Manager: Thomas J. Ray
Fund Performance
The Transamerica Premier Index Fund (Investor Class) declined -0.61% for the
six-month period ended June 30, 2000, in comparison to a return of -0.42% 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 22.86% relative to a 23.20% 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
Equity markets have been lackluster in the first half of 2000, due to ongoing
fears of both inflation and of higher interest rates. Despite these worries,
most major corporations have reported positive earnings results. The S&P 500
represents leading companies across a variety of industries. These industry
leaders have the proven ability to consistently perform well in many economic
environments. The Fund invests in a package of stocks, bonds, and index futures
designed to mirror the performance of the S&P 500 over time.
Investment in the Fund is an efficient and effective strategy for investors who
want to be sure they are invested in leading companies in the US economy. While
the Fund may not match the S&P 500 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.
Portfolio Asset Mix
Common Stocks 83.7%
Cash and Cash Equivalents 16.3%
Going Forward
We expect that corporate earnings will continue to grow, however interest rate
increases by the Federal Reserve may slow that rate of growth. In this
environment, the market will focus on leading companies with positive growth
prospects. The companies in the S&P 500 are well positioned to benefit, as the
leading companies in their industries.
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 June 30, 2000 Since Inception* One Year
Investor Class 22.86% 6.99%
Class A 21.17% 6.74%
Class M 22.01% 6.43%
S&P 500 Index 23.20% 7.25%
--Investor Class ($26,565 at 6/30/00) --Class A ($24,886 at 6/30/00) ---Class M
($25,713 at 6/30/00) ---S&P 500 Index ($26,943 at 6/30/00)
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") consists of
500 widely held, publicly traded common stocks. The S&P 500 Index does not
reflect any commissions or fees which would be incurred by an investor
purchasing the securities it represents.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30, 1998;
average annual returns are based on the October 2, 1995 commencement date for
the Investor Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
<TABLE>
<CAPTION>
Transamerica Premier Index Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
COMMON STOCKS-- 83.7%
Aerospace & Defense-- 0.8%
<S> <C> <C>
B.F. Goodrich Company 326 $ 11,104
Boeing Company 2,829 118,288
General Dynamics Corporation 650 33,963
Honeywell International, Inc. 2,642 89,002
Lockheed Martin Corporation 1,296 32,157
Northrop Grumman Corporation 225 14,906
Raytheon Company, Class B 1,096 21,098
United Technologies Corporation 1,585 93,317
413,835
Air Freight & Couriers-- 0.1%
FedEx Corporation a 968 36,784
Airlines-- 0.2%
AMR Corporation 552 14,594
Delta Air Lines, Inc. 456 23,056
Southwest Airlines Company 1,611 30,508
US Airways Group, Inc. a 283 11,037
79,195
Auto Components-- 0.2%
Cooper Tire & Rubber Company 239 2,659
Dana Corporation 520 11,018
Delphi Automotive Systems Corporation 1,848 26,911
Goodyear Tire & Rubber Company 507 10,140
Johnson Controls, Inc. 277 14,214
Snap-On, Inc. 205 5,458
TRW, Inc. 427 18,521
Visteon Corporation a 515 6,250
95,171
Automobiles-- 0.6%
Ford Motor Company 3,937 169,291
General Motors Corporation a 1,542 89,532
Harley-Davidson, Inc. 1,000 38,500
297,323
Banks-- 3.6%
AmSouth Bancorporation 1,310 20,633
Banc One Corporation 3,807 101,124
Bank of New York Company, Inc. 2,472 114,948
BankAmerica Corporation 5,478 235,554
BB&T Corporation 1,173 28,005
Charter One Financial, Inc. 695 15,985
Chase Manhattan Corporation 3,906 179,920
Comerica, Inc. 545 24,457
Fifth Third Bancorp 956 60,467
First Union Corporation 3,224 79,996
Firstar Corporation 3,316 69,843
FleetBoston Financial Corporation 3,084 104,856
Golden West Financial Corporation 597 24,365
Huntington Bancshares, Inc. 754 11,923
J.P. Morgan & Company, Inc. 570 62,771
KeyCorp 1,502 26,473
Market
Shares Value
Mellon Financial Corporation 1,734 $ 63,183
National City Corporation 2,026 34,569
Northern Trust Corporation 740 48,146
Old Kent Financial Corporation 410 10,954
PNC Bank Corporation 981 45,984
Regions Financial Corporation 690 13,714
SouthTrust Corporation 525 11,878
Summit Bancorp 592 14,578
SunTrust Banks, Inc. 1,028 46,967
Synovus Financial Corporation 866 15,263
Union Planters Corporation 414 11,566
US Bancorp 2,357 45,372
Wachovia Corporation 656 35,588
Washington Mutual, Inc. 1,933 55,815
Wells Fargo Company 5,231 202,701
1,817,598
Beverages-- 1.7%
Adolph Coors Company 130 7,865
Anheuser-Busch Companies, Inc. 1,556 116,214
Brown-Forman Corporation 225 12,094
Coca-Cola Company 8,358 480,062
Coca-Cola Enterprises, Inc. 1,342 21,891
PepsiCo, Inc. 4,916 218,455
856,581
Biotechnology-- 0.1%
Biogen, Inc. a 495 31,928
PE Corp.-Celera Genomics Group a 162 15,147
47,075
Building Products-- 0.1%
Armstrong Holdings, Inc. 132 2,021
Crane Company 220 5,349
Masco Corporation 1,467 26,498
Owens Corning 165 1,526
35,394
Chemicals-- 0.8%
Air Products and Chemicals, Inc. 747 23,017
Dow Chemical Company 2,157 65,114
E.I. du Pont de Nemours and Company 3,333 145,819
Eastman Chemical Company 269 12,845
Engelhard Corporation 483 8,241
FMC Corporation a 106 6,148
Great Lakes Chemical Corporation 189 5,954
Hercules, Inc. 334 4,697
International Flavors & Fragrances, Inc. 362 10,928
PPG Industries, Inc. 607 26,898
Praxair, Inc. 490 18,344
Rohm & Haas Company 685 23,632
Sigma-Aldrich Corporation 337 9,857
Union Carbide Corporation 436 21,582
W.R. Grace & Company a 243 2,946
386,022
See notes to financial statements
<PAGE>
Transamerica premier Index Fund (continued)
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
Commercial Services & Supplies-- 1.0%
Allied Waste Industries, Inc. a 595 $ 5,950
Automatic Data Processing, Inc. 2,059 110,285
Avery Dennison Corporation 351 23,561
Cendant Corporation a 2,362 33,068
Convergys Corporation a 505 26,197
Deluxe Corporation 276 6,503
Ecolab, Inc. 430 16,797
Equifax, Inc. 484 12,705
First Data Corporation 1,346 66,795
H & R Block, Inc. 348 11,267
IMS Health, Inc. 775 13,950
Paychex, Inc. 1,198 50,316
Pitney Bowes, Inc. 854 34,160
R.R. Donnelley & Sons Company 480 10,830
Sabre Holdings Corporation 398 11,343
The Dun & Bradstreet Corporation 566 16,202
Waste Management, Inc. 1,869 35,511
485,440
Communication Equipment-- 7.1%
3Com Corporationa 1,063 61,255
ADC Telecommunications, Inc. a 1,135 95,198
Andrew Corporationa 292 9,800
Cabletron Systems, Inc. a 494 12,474
Cisco Systems, Inc. a 22,104 1,404,986
Comverse Technology, Inc. a 490 45,570
Corning, Inc. 862 232,632
General Motors Corporation, Class H 541 47,473
Lucent Technologies, Inc. 10,373 614,600
Motorola, Inc. 6,456 187,628
Nortel Networks Corporation 9,016 615,342
QUALCOMM, Inc. a 2,493 149,580
Scientific-Atlanta, Inc. 490 36,505
Tellabs, Inc. a 1,210 82,809
3,595,852
Computers & Peripherals-- 5.5%
Apple Computer, Inc. a 1,032 54,051
Compaq Computer Corporation 5,533 141,437
Dell Computer Corporation a 8,132 401,009
EMC Corporation a 6,284 483,475
Gateway 2000, Inc. a 1,020 57,885
Hewlett-Packard Company 3,173 396,228
International Business Machines Corporation 5,807 636,230
Lexmark International Group, Inc., Class A a 420 28,245
NCR Corporation a 325 12,655
Network Appliance, Inc. a 940 75,670
Seagate Technology, Inc. a 755 41,525
Sun Microsystems, Inc. a 5,059 460,053
2,788,463
Market
Shares Value
Construction & Engineering-- 0.0%
Fluor Corporation 243 $ 7,685
McDermott International, Inc. 190 1,674
9,359
Construction Materials-- 0.0%
Vulcan Materials Company 330 14,087
Containers & Packaging-- 0.1%
Ball Corporation 92 2,961
Bemis Company, Inc. 167 5,615
Crown Cork & Seal Company, Inc. 421 6,315
Owens-Illinois, Inc. a 483 5,645
Pactiv Corporation a 572 4,505
Sealed Air Corporation a 289 15,137
Temple-Inland, Inc. 192 8,064
48,242
Diversified Financials-- 4.4%
American Express Company 4,413 230,028
Associates First Capital Corporation 2,348 52,390
Capital One Financial Corporation 621 27,712
Charles Schwab Corporation 4,372 147,008
Citigroup, Inc. 10,958 660,219
Countrywide Credit Industries, Inc. 349 10,579
Federal Home Loan Mortgage Corporation 2,209 89,464
Federal National Mortgage Association 3,374 176,081
Franklin Resources, Inc. 809 24,573
Household International, Inc. 1,554 64,588
Lehman Brothers Holdings, Inc. 380 35,934
MBNA Corporation 2,470 66,999
Merrill Lynch & Company, Inc. 1,196 137,540
Morgan Stanley Dean Witter & Co. 3,681 306,443
Paine Webber Group, Inc. 465 21,158
Providian Financial Corporation 457 41,130
SLM Holding Corporation 552 20,666
State Street Corporation 555 58,865
T. Rowe Price Associates, Inc. 400 17,000
The Bear Stearns Companies, Inc. 434 18,065
2,206,442
Diversified Telecommunications Services-- 4.7%
Alltel Corporation 1,077 66,707
AT&T Corporation 10,450 330,481
Bell Atlantic Corporation 5,167 262,548
BellSouth Corporation 6,363 271,223
CenturyTel, Inc. 435 12,506
Global Crossing Ltd. a 2,943 77,438
GTE Corporation 3,257 202,748
SBC Communications, Inc. 11,056 478,172
Sprint Corporation (Fon Group) 2,914 148,614
US West, Inc. 1,620 138,915
WorldCom, Inc. a 9,129 418,793
2,408,145
</TABLE>
See notes to financial statements
<PAGE>
Market
Shares Value
Electric Utilities-- 1.3%
AES Corporation a 1,400 $ 63,875
Ameren Corporation 447 15,086
American Electric Power Company 1,044 30,928
CINergy Corporation 516 13,126
CMS Energy Corporation 330 7,301
Consolidated Edison Company of New York, Inc. 781 23,137
Constellation Energy Group 491 15,988
CP&L, Inc. 504 16,097
Dominion Resources, Inc. 788 33,785
DTE Energy Company 485 14,823
Duke Energy Corporation 1,179 66,466
Edison International 1,141 23,391
Entergy Corporation 772 20,989
FirstEnergy Corporation 768 17,952
Florida Progress Corporation 315 14,766
FPL Group, Inc. 599 29,650
GPU, Inc. 405 10,960
New Century Energies, Inc. 395 11,850
Niagara Mohawk Power Corporation a 603 8,404
Northern States Power Company 467 9,428
PECO Energy Company 607 24,470
PG & E Corporation 1,245 30,658
Pinnacle West Capital Corporation 280 9,485
PPL Corporation 491 10,771
Public Service Enterprise Group, Inc. 791 27,388
Reliant Energy, Inc. 921 27,227
Southern Company 2,242 52,267
TXU Corporation 917 27,052
Unicom Corporation 713 27,584
684,904
Electrical Equipment-- 0.4%
American Power Conversion Corporation a 655 26,732
Cooper Industries, Inc. 368 11,983
Emerson Electric Company 1,465 88,449
Energizer Holdings, Inc. a 346 6,315
Molex, Inc. 641 30,848
National Service Industries, Inc. 135 2,633
Rockwell International Corporation 620 19,530
Thermo Electron Corporation a 502 10,573
Thomas & Betts Corporation 169 3,232
200,295
Electronic Equipment & Instruments-- 1.1%
Agilent Technologies, Inc. a 2,820 207,975
Broadcom Corporation, Class A a 710 155,401
Millipore Corporation 146 11,005
Novellus Systems, Inc. a 420 23,756
PerkinElmer, Inc. 152 10,051
Sanmina Corporation a 500 42,750
Solectron Corporation a 1,850 77,469
Tektronix, Inc. 159 11,766
540,173
Market
Shares Value
Energy Equipment & Services-- 0.6%
Baker Hughes, Inc. 1,057 $ 33,824
Halliburton Company 1,546 72,952
Rowan Companies, Inc. a 282 8,566
Schlumberger Ltd. 1,917 143,056
Transocean Sedco Forex, Inc. 699 37,353
295,751
Food & Drug Retailing-- 0.8%
Albertson's, Inc. 1,413 46,982
CVS Corporation 1,268 50,720
Great Atlantic & Pacific Tea Company, Inc. 131 2,178
Kroger Company a 2,736 60,363
Longs Drug Stores Corporation 135 2,936
Rite-Aid Corporation 838 5,499
Safeway, Inc. a 1,763 79,555
SUPERVALU, Inc. 409 7,797
Sysco Corporation 1,159 48,823
Walgreen Company 3,266 105,125
Winn-Dixie Stores, Inc. 500 7,156
417,134
Food Products-- 1.1%
Archer-Daniels-Midland Company 2,064 20,253
Bestfoods 949 65,718
Campbell Soup Company 1,461 42,552
ConAgra, Inc. 1,598 30,462
General Mills, Inc. 1,044 39,933
H.J. Heinz Company 1,200 52,500
Hershey Foods Corporation 508 24,638
Kellogg Company 1,380 41,055
Nabisco Group Holdings Corporation 1,065 27,623
Quaker Oats Company 442 33,205
Ralston-Ralston Purina Group 1,040 20,735
Sara Lee Corporation 2,972 57,397
Unilever NV and PLC 1,877 80,711
Wm. Wrigley Jr. Company 377 30,231
567,013
Gas Utilities-- 0.2%
Columbia Gas System, Inc. 275 18,047
Eastern Enterprises 68 4,284
El Paso Energy Corporation 742 37,795
NICOR, Inc. 159 5,187
ONEOK, Inc. 86 2,231
People's Energy Corporation 122 3,950
Sempra Energy 666 11,322
82,816
Healthcare Equipment & Supplies-- 1.0%
Allergan, Inc. 428 31,886
Bausch & Lomb, Inc. 195 15,088
Baxter International, Inc. 913 64,195
Becton, Dickinson & Company 819 23,495
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
Transamerica Premier Index Fund (continued)
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
<S> <C> <C>
Biomet, Inc. 371 $ 14,260
Boston Scientific Corporation a 1,226 26,896
C.R. Bard, Inc. 176 8,470
Edwards Lifesciences Corporation a 182 3,367
Guidant Corporation a 962 47,619
Mallinckrodt, Inc. 236 10,251
Medtronic, Inc. 3,906 194,568
PE Corporation-PE Biosystems Group 648 42,687
St. Jude Medical, Inc. a 267 12,249
495,031
Healthcare Providers & Services-- 0.7%
Aetna Life & Casualty Company 497 31,901
Cardinal Health, Inc. 875 64,750
CIGNA Corporation 560 52,360
HCA-The Healthcare Corp. 1,876 56,983
HEALTHSOUTH Corporation a 1,382 9,933
Humana, Inc. a 547 2,667
Manor Care, Inc. a 355 2,485
McKesson Corporation 884 18,509
Quintiles Transnational Corporation a 375 5,297
Tenet Healthcare Corporation 966 26,082
UnitedHealth Group, Inc. 607 52,050
Wellpoint Health Networks, Inc. a 219 15,864
338,881
Hotels, Restaurants & Leisure-- 0.5%
Carnival Corporation 1,900 37,050
Darden Restaurants, Inc. 493 8,011
Harrah's Entertainment, Inc. a 418 8,752
Hilton Hotels Corporation 1,219 11,428
Marriott International, Inc. 819 29,535
McDonald's Corporation 4,540 149,537
Tricon Global Restaurants, Inc. a 511 14,436
Wendy's International, Inc. 415 7,392
266,141
Household Durables-- 0.2%
American Greetings Corporation 239 4,541
Black & Decker Corporation 293 11,519
Centex Corporation 197 4,629
Fortune Brands, Inc. 583 13,445
Kaufman & Broad Home Corporation 161 3,190
Leggett & Platt, Inc. 640 10,560
Maytag Corporation 295 10,878
Newell Rubbermaid, Inc. 920 23,690
Pulte Corporation 136 2,941
Springs Industries, Inc. 68 2,176
The Stanley Works 293 6,959
Tupperware Corporation 206 4,532
Whirlpool Corporation 237 11,050
110,110
Market
Shares Value
Household Products-- 1.0%
Clorox Company 760 $ 34,058
Colgate-Palmolive Company 1,918 114,840
Fort James Corporation 715 16,534
Kimberly-Clark Corporation 1,830 104,996
Procter & Gamble Company 4,392 251,442
521,870
Industrial Conglomerates-- 4.3%
General Electric Company 33,414 1,770,942
ITT Industries, Inc. 295 8,961
Minnesota Mining & Manufacturing Company 1,288 106,260
Textron, Inc. 542 29,437
Tyco International Ltd. 5,433 257,388
2,172,988
Insurance-- 2.3%
AFLAC, Inc. 900 41,344
Allstate Corporation 2,674 59,496
American General Corporation 797 48,617
American International Group, Inc. 5,191 609,942
Aon Corporation 814 25,285
Chubb Corporation 577 35,486
Cincinnati Financial Corporation 542 17,039
Conseco, Inc. 1,025 9,994
Hartford Financial Services Group, Inc. 785 43,911
Jefferson-Pilot Corporation 353 19,922
Lincoln National Corporation 692 24,999
Loews Corporation 378 22,680
Marsh & McLennan Companies, Inc. 869 90,756
MBIA, Inc. 311 14,986
MGIC Investment Corporation 413 18,792
Progressive Corporation Ohio 232 17,168
Safeco Corporation 420 8,348
St. Paul Companies, Inc. 771 26,310
Torchmark Corporation 460 11,356
UNUM Corporation 763 15,308
1,161,739
Internet Software & Services-- 1.1%
America Online, Inc. a 7,194 379,483
Yahoo!, Inc. a 1,636 202,660
582,143
Investment Companies-- 1.9%
Standard and Poor's Depository Receipts 6,755 981,375
IT Consulting & Services-- 0.2%
Ceridian Corporation a 464 11,165
Computer Sciences Corporation a 516 38,539
Electronic Data Systems Corporation 1,500 61,875
Unisys Corporation a 916 13,339
124,918
See notes to financial statements
<PAGE>
Market
Shares Value
Leisure Equipment & Products-- 0.2%
Brunswick Corporation 331 $ 5,482
Eastman Kodak Company 1,103 65,628
Hasbro, Inc. 570 8,586
Mattel, Inc. 1,353 17,843
Polaroid Corporation 147 2,655
100,194
Machinery-- 0.5%
Briggs & Stratton Corporation 85 2,911
Caterpillar, Inc. 1,166 39,498
Cummins Engine Company, Inc. 133 3,624
Danaher Corporation 414 20,467
Deere & Company 840 31,080
Dover Corporation 740 30,016
Eaton Corporation 245 16,415
Illinois Tool Works, Inc. 999 56,943
Ingersoll-Rand Company 548 22,057
Navistar International Corporation a 235 7,300
PACCAR, Inc. 265 10,517
Pall Corporation 403 7,456
Parker Hannifin Corporation 365 12,501
Timken Company 209 3,893
264,678
Media-- 3.2%
Clear Channel Communications, Inc. a 1,152 86,400
Comcast Corporation 2,965 120,083
Dow Jones & Company, Inc. 310 22,708
Gannett Company, Inc. 931 55,685
Harcourt General, Inc. 232 12,615
Interpublic Group Companies, Inc. 908 39,044
Jostens, Inc., Class A 99 2,500
Knight-Ridder, Inc. 258 13,722
McGraw-Hill Companies, Inc. 678 36,612
MediaOne Group, Inc. a 1,972 130,763
Meredith Corporation 171 5,771
New York Times Company 639 25,241
Omnicom Group, Inc. 532 47,381
The Seagram Company Ltd. 1,370 79,460
The Walt Disney Company 6,696 259,889
Time Warner, Inc. 4,021 305,596
Tribune Company 1,053 36,855
Viacom, Inc. a 4,941 336,914
Young & Rubicam, Inc. 220 12,581
1,629,820
Metals & Mining-- 0.4%
Alcan Aluminum Ltd. 738 22,878
Alcoa, Inc. 2,784 80,736
Allegheny Technologies, Inc. 300 5,400
Arch Coal, Inc. 54 415
Barrick Gold Corporation 1,200 21,825
Bethlehem Steel Corporation a 422 1,504
Freeport-McMoRan Copper & Gold, Inc. a 533 4,930
Market
Shares Value
Homestake Mining Company 766 $ 5,266
Inco Ltd. 487 7,488
Newmont Mining Corporation 522 11,288
Nucor Corporation 289 9,591
Phelps Dodge Corporation 225 8,367
Placer Dome, Inc. 1,100 10,519
USX-US Steel Group 281 5,216
Worthington Industries, Inc. 302 3,171
198,594
Multiline Retail-- 2.4%
Consolidated Stores Corporationa 345 4,140
Costco Companies, Inc. a 1,360 44,880
Dillard's, Inc. 370 4,533
Dollar General Corporation 920 17,940
Federated Department Stores, Inc. a 687 23,186
J.C. Penney Company, Inc. 775 14,289
Kmart Corporation a 1,551 10,566
Kohl's Corporation a 1,066 59,296
May Department Stores Company 1,174 28,176
Nordstrom, Inc. 523 12,617
Sears, Roebuck & Company 1,291 42,119
Target Corporation 1,430 82,940
Wal-Mart Stores, Inc. 15,264 879,588
1,224,270
Multi-Utilities-- 0.4%
Enron Corporation 2,429 156,670
The Williams Companies, Inc. 1,489 62,073
218,743
Office Electronics-- 0.1%
Xerox Corporation 2,144 44,488
Oil & Gas-- 4.1%
Amerada Hess Corporation 302 18,649
Anadarko Petroleum Corporation 415 20,465
Apache Corporation 360 21,173
Ashland, Inc. 221 7,749
Burlington Resources, Inc. 726 27,770
Chevron Corporation 2,231 189,217
Coastal Corporation 700 42,612
Conoco, Inc., Class B 2,274 55,855
Exxon Mobil Corporation 12,119 951,341
Kerr-McGee Corporation 308 18,153
Occidental Petroleum Corporation 1,089 22,937
Phillips Petroleum Company 866 43,895
Royal Dutch Petroleum Company 7,290 448,791
Sunoco, Inc. 257 7,565
Texaco, Inc. 1,964 104,583
Tosco Corporation 500 14,156
Union Pacific Resources Group, Inc. 770 16,940
Unocal Corporation 811 26,864
USX-Marathon Group 964 24,160
2,062,875
See notes to financial statements
<PAGE>
Transamerica Premier Index Fund (concluded)
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
Paper & Forest Products-- 0.3%
Boise Cascade Corporation 175 $ 4,528
Georgia-Pacific Corporation 598 15,698
International Paper Company 1,543 46,001
Louisiana-Pacific Corporation 359 3,904
Mead Corporation 353 8,913
Potlatch Corporation 90 2,981
Westvaco Corporation 341 8,461
Weyerhaeuser Company 768 33,024
Willamette Industries, Inc. 363 9,892
133,402
Personal Products-- 0.3%
Alberto-Culver Company 193 5,899
Avon Products, Inc. 878 39,071
Gillette Company 3,591 125,460
170,430
Pharmaceuticals-- 8.2%
Abbott Laboratories 5,289 235,691
Alza Corporationa 325 19,216
American Home Products Corporation 4,441 260,909
Amgen, Inc. a 3,492 245,313
Bristol-Myers Squibb Company 6,790 395,517
Eli Lilly & Company 3,577 357,253
Johnson & Johnson 4,611 469,746
MedImmune, Inc. a 665 49,210
Merck & Company, Inc. 8,064 617,904
Pfizer, Inc. 21,190 1,017,120
Pharmacia Corporation 4,017 207,629
Schering-Plough Corporation 5,003 252,651
Watson Pharmaceuticals, Inc. a 315 16,931
4,145,090
Road & Rail-- 0.3%
Burlington Northern Santa Fe 1,467 33,649
CSX Corporation 709 15,022
Kansas City Southern Industries, Inc. 357 31,661
Norfolk Southern Corporation 1,256 18,683
Ryder System, Inc. 247 4,678
Union Pacific Corporation 750 27,891
131,584
Semiconductor Equipment & Products-- 5.4%
Adaptec, Inc. a 333 7,576
Advanced Micro Devices, Inc. a 460 35,535
Altera Corporation a 660 67,279
Analog Devices, Inc. a 1,172 89,072
Applied Materials, Inc. a 2,403 217,772
Conexant Systems, Inc. a 698 33,940
Intel Corporation 10,723 1,433,531
Market
Shares Value
KLA Tencor Corporation a 552 $ 32,326
Linear Technology Corporation 1,010 64,577
LSI Logic Corporation a 882 47,738
Maxim Integrated Products, Inc. a 925 62,842
Micron Technology, Inc. a 1,610 141,781
National Semiconductor Corporation a 546 30,985
Teradyne, Inc. a 570 41,895
Texas Instruments, Inc. 5,182 355,939
Xilinx, Inc. a 988 81,572
2,744,360
Software-- 5.5%
Adobe Systems, Inc. 387 50,310
Autodesk, Inc. 192 6,660
BMC Software, Inc. a 782 28,531
Citrix Systems, Inc. a 590 11,173
Computer Associates International, Inc. 1,950 99,816
Compuware Corporation a 1,200 12,450
Mercury Interactive Corporation a 270 26,122
Microsoft Corporation a 17,654 1,412,320
Novell, Inc. a 1,176 10,878
Oracle Corporation a 10,029 843,063
Parametric Technology Corporation a 882 9,702
PeopleSoft, Inc. 752 12,596
Sapient Corporation a 195 20,853
Siebel Systems, Inc. a 650 106,315
VERITAS Software Corporation a 1,270 143,530
2,794,319
Specialty Retail-- 1.6%
AutoZone, Inc. a 484 10,648
Bed Bath & Beyond, Inc. a 442 16,023
Best Buy Company, Inc. a 675 42,694
Circuit City Stores-Circuit City Group 664 22,036
Gap, Inc. 2,827 88,344
Home Depot, Inc. 7,851 392,059
Limited, Inc. 1,398 30,232
Lowe's Companies, Inc. 1,285 52,765
Office Depot, Inc. a 1,220 7,625
RadioShack Corporation 646 30,604
Sherwin-Williams Company 568 12,035
Staples, Inc. a 1,449 22,278
Starbucks Corporation a 600 22,912
Tiffany & Company 245 16,538
TJX Companies, Inc. 986 18,487
Toys " " Us, Inc. a 906 13,194
798,474
See notes to financial statements
<PAGE>
Shares or Market
Principal Amount Value
Textile & Apparel-- 0.1%
Liz Claiborne, Inc. 233 $ 8,213
Nike, Inc. 944 37,583
Reebok International Ltd. a 185 2,948
Russell Corporation 130 2,600
VF Corporation 424 10,097
61,441
Tobacco-- 0.4%
Philip Morris Companies, Inc. 7,612 202,194
UST, Inc. 612 8,989
211,183
Trading Companies & Distributors-- 0.0%
Genuine Parts Company 596 11,920
W.W. Grainger, Inc. 324 9,983
21,903
Wireless Telecommunications Services-- 0.6%
Nextel Communications, Inc.a 2,370 145,014
Sprint Corporation (PCS Group)a 2,864 170,408
315,422
Total Common Stocks
(cost $27,471,188) 42,435,560
</TABLE>
COMMERCIAL PAPER -- DOMESTIC -- 13.7% Diversified Financials -- 1.5% Goldman
Sachs Group LP
6.660% 08/23/00$750,000 742,646
Diversified Telecommunications Services-- 2.0%
AT&T Corporation
6.550% 09/05/001,000,000 987,992
Electric Utilities-- 1.9%
Northern States Power Company
6.570% 09/11/001,000,000 986,860
Financial Services-- 8.3%
Ciesco LP
6.530% 07/21/003,000,000 2,989,117
Delaware Funding Corporation
6.600% 09/11/00500,000 493,400
Receivables Capital Corporation
6.580% 07/11/00750,000 748,629
4,231,146
Total Commercial Paper -- Domestic
(cost $6,948,644) 6,948,644
U.S. GOVERNMENT SECURITY-- 2.0%
U.S. Treasury Bill
(cost $988,271)* 5.630% 09/14/00 1,000,000 988,271
Principal Market
Amount Value
REPURCHASE AGREEMENT-- 0.8%
State Street Bank & Trust Company,
4.25%, due 07/03/00 (collateralized
by $440,000 par value U.S. Treasury
Note, 6.375%, due 06/30/02, with
a value of $440,000, cost $430,000) $430,000 $ 430,000
Total Investments-- 100.2%
(cost $35,838,103)** 50,802,475
Liabilities in Excess of Other Assets-- (0.2)% (109,464)
Net Assets-- 100.0% $50,693,011
a Non-income producing security
* $988,271 market value of securities has been pledged as collateral for initial
margin for futures contracts.
** Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $17,019,630 and $2,055,258,
respectively. Net unrealized appreciation for tax purposes is $14,964,372.
See notes to financial statements
Schedule of futures contracts
Number of Contract Total ContractUnrealized
Contracts Description Value Gain
23 S&P 500 $8,441,575 $4,600
September 2000
(Long)
See notes to financial statements
<PAGE>
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 9.56% for the
six-month period ended June 30, 2000. In contrast, the benchmark indices of the
S&P 500 Index and Lehman Brothers Government/Corporate Bond Index returned
-0.42% and 4.18%, respectively. Since the Fund's inception in October 1995, it
has achieved an average annual return of 22.26%.
Portfolio Manager Comments
The Premier Balanced Fund was able to outperform both the S&P 500 Index and the
Lehman Brothers Government/Corporate Bond Index due to the strong performance of
our stock holdings, which were less cyclical and thus more resilient in the face
of aggressive Federal Reserve tightening. Particularly strong performers during
the first half of 2000 included Intel and Applied Materials in the technology
sector, Charles Schwab and State Street in the financial sector, and AES and
Calpine, two independent power producers which are well positioned to take
advantage of deregulation in the electric utility industry.
The Fund's fixed-income returns, while higher than the returns of the S&P 500,
were not major contributors to outperformance. Corporate bonds underperformed
Treasuries as a result of both the Federal Reserve's series of tightenings and a
$30 billion Treasury bond buyback program announced by the U.S. Treasury. As a
result, some of our top performing fixed income holdings included U.S. Treasury
bonds. Other outperformers included Gulf Canada Resources and Triton Energy,
which have benefited from the recent strength in oil prices.
Portfolio Asset Mix
Common and Preferred Stocks 62.9%
Corporate and U.S. Government Securities 33.0%
Cash and Cash Equivalents 4.1%
Going Forward
We expect that the Federal Reserve is nearing the end of its tightening cycle,
and that as a result both the stock market and corporate bonds should deliver
attractive returns during the second half of 2000. The stock portion of our
portfolio continues to hold premier companies which dominate in their sectors,
while the fixed income portion favors corporate bonds over U.S. Treasury bonds
for their higher yields and income, which provides a cushion against market
volatility.
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 June 30, 2000 Since Inception* One Year
Investor Class 22.26% 21.31%
Class A 20.63% 21.00%
Class M 21.45% 20.66%
S&P 500 Index 23.20% 7.25%
Lehman Brothers Government/
Corporate Bond Index 6.00% 4.33%
--Investor Class ($25,966 at 6/30/00) --Class A ($24,361 at 6/30/00) ---Class M
($25,162 at 6/30/00) ---S&P 500 Index ($26,943 at 6/30/00)
????Lehman Brothers Government/Corporate Bond Index
($13,190 at 6/30/00)
The Standard & Poor's 500 Composite Stock Price Index ("S&P 500") consists of
500 widely held, publicly traded common stocks. The Lehman Brothers
Government/Corporate Bond Index is a broad -- based unmanaged index of all
government and corporate bonds that are investment grade with at least one year
to maturity. These indexes do not reflect any commissions or fees which would be
incurred by an investor purchasing the securities represented by each index.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30, 1998;
average annual returns are based on the October 2, 1995 commencement date for
the Investor Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
Transamerica premier Balanced Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
Market
Shares Value
COMMON STOCKS-- 61.8%
Banks-- 4.7%
J.P. Morgan & Company, Inc. 20,000 $2,202,500
Wells Fargo Company 30,000 1,162,500
3,365,000
Biotechnology-- 0.8%
Genentech, Inc. a 3,500 602,000
Communication Equipment-- 2.4%
3Com Corporation a 30,000 1,728,750
Computers & Peripherals-- 3.1%
Dell Computer Corporation a 15,000 739,688
Hewlett-Packard Company 12,000 1,498,500
2,238,188
Containers & Packaging-- 0.4%
Sealed Air Corporation a 5,000 261,875
Diversified Financials-- 6.4%
American Express Company 15,000 781,875
Charles Schwab Corporation 49,500 1,664,437
State Street Corporation 20,000 2,121,250
4,567,562
Diversified Telecommunications Services-- 2.1%
Qwest Communications International, Inc. a 30,000 1,490,625
Electric Utilities-- 8.2%
AES Corporation a 70,000 3,193,750
Calpine Corporation a 40,000 2,630,000
5,823,750
Electrical Equipment-- 2.0%
American Power Conversion Corporation a 35,000 1,428,438
Electronic Equipment & Instruments-- 1.2%
Agilent Technologies, Inc. 11,076 816,855
Energy Equipment & Services-- 0.5%
Schlumberger Ltd. 5,000 373,125
Food & Drug Retailing-- 0.3%
CVS Corporation 5,000 200,000
Hotels, Restaurants & Leisure-- 1.5%
Marriott International, Inc. 30,500 1,099,906
Insurance-- 3.1%
American International Group, Inc. 18,750 2,203,125
Media-- 4.3%
EchoStar Communications Corp., Class A a 20,000 664,330
McGraw-Hill Companies, Inc. 30,000 1,620,000
Time Warner, Inc. 10,000 760,000
3,044,330
Semiconductor Equipment & Products-- 9.4%
Applied Materials, Inc. a 15,000 $ 1,359,375
Intel Corporation 40,000 5,347,500
6,706,875
Software-- 2.5%
Microsoft Corporation a 22,000 1,760,000
Specialty Retail-- 4.0%
Home Depot, Inc. 5,000 249,687
Williams-Sonoma, Inc. a 80,000 2,595,000
2,844,687
Trading Companies & Distributors-- 1.1%
W.W. Grainger, Inc. 25,000 770,313
Transportation & Logistics-- 3.8%
United Parcel Service, Inc. 46,000 2,714,000
Total Common Stocks
(cost $30,815,073) 44,039,404
PREFERRED STOCK-- 1.1%
Financial Services-- 1.1%
Centaur Funding Corporation b
(cost $890,976) 800 795,211
CORPORATE BONDS-- 26.0%
Aerospace & Defense-- 1.4%
Lockheed Martin Corporation
7.950% 12/01/05 $1,000,000 1,005,700
Banks-- 5.9%
Abbey National PLC
7.350% 10/29/49 1,000,000 932,450
Key Bank, N.A.
7.125% 08/15/06 500,000 494,045
Korea Development Bank
7.125% 04/22/04 1,000,000 967,390
Mellon Bank Corporation
7.000% 03/15/06 300,000 290,808
Royal Bank of Scotland Group PLC
9.118% 03/31/49 1,000,000 1,031,970
Washington Mutual, Inc.
8.250% 06/15/05 500,000 506,310
4,222,973
Commercial Services & Supplies-- 0.6%
Valassis Communications, Inc.
6.625% 01/15/09 500,000 466,230
See notes to financial statements
<PAGE>
Transamerica premier Balanced Fund (concluded)
Schedule of Investments-- June 30, 2000 (Unaudited)
Principal Market
Amount Value
Diversified Financials-- 3.9%
GE Global Insurance Holding Corporation
7.000% 02/15/26 $ 200,000 $ 180,890
HSBC Capital Funding LP b
10.176% 12/31/49 1,000,000 1,072,650
Merrill Lynch & Company, Inc.
6.640% 09/19/02 500,000 492,540
PEMEX Finance Ltd. b
9.030% 02/15/11 1,000,000 1,017,470
2,763,550
Diversified Telecommunications Services-- 2.2%
Telefonica de Argentina SA
11.875% 11/01/04 1,000,000 1,050,000
WorldCom, Inc.
6.125% 04/15/12 500,000 488,690
1,538,690
Electric Utilities-- 2.5%
Cleveland Electric Illuminating Company
7.880% 11/01/17 500,000 470,505
CMS Energy Corporation
8.000% 07/01/11 300,000 296,850
Commonwealth Edison Company
7.000% 07/01/05 300,000 288,912
Niagara Mohawk Power Corporation
7.625% 10/01/05 756,098 743,864
1,800,131
Hotels, Restaurants & Leisure-- 1.4%
Premier Parks, Inc.
9.750% 01/15/07 975,000 970,125
Media-- 0.8%
Time Warner, Inc.
9.125% 01/15/13 500,000 547,950
Multiline Retail-- 4.1%
Dayton Hudson Corporation
6.400% 02/15/03 300,000 293,301
Kmart Corporation
7.750% 10/01/12 1,000,000 893,220
Saks, Inc.
8.250% 11/15/08 1,000,000 888,230
Shoppers Food Warehouse Corporation
9.750% 06/15/04 775,000 817,175
2,891,926
Oil & Gas-- 1.2%
Gulf Canada Resources Ltd.
8.250% 03/15/17 390,000 366,967
Triton Energy Ltd.
9.250% 04/15/05 500,000 496,250
863,217
Principal Market
Amount Value
Real Estate-- 1.3%
Simon Property Group, Inc. b
6.750% 11/15/03 $1,000,000 $ 949,460
Road & Rail-- 0.7%
Norfolk Southern Corporation
9.000% 03/01/21 500,000 538,945
Total Corporate Bonds
(cost $19,090,774) 18,558,897
CONVERTIBLE BONDS-- 1.3%
Biotechnology-- 1.3%
ImClone Systems, Inc. b
(cost $1,000,000) 5.500% 03/01/05 1,000,000 887,800
U.S. GOVERNMENT SECURITIES-- 5.7%
U.S. Treasury Notes
5.875% 11/15/042,100,000 2,069,487
6.625% 05/15/07750,000 765,705
6.000% 08/15/09300,000 297,609
6.500% 02/15/10900,000 930,798
Total U.S. Government Securities
(cost $4,061,299) 4,063,599
REPURCHASE AGREEMENT-- 4.3%
State Street Bank and Trust Company,
4.25%, due 07/03/00 (collateralized
by $3,145,000 par value U.S. Treasury
Note, 6.375%, due 06/30/02, with a
value of $3,145,000, cost $3,082,000) 3,082,000 3,082,000
Total Investments-- 100.2%
(cost $58,940,122)* 71,426,911
Liabilities in Excess of Other Assets-- (0.2)% (143,902)
Net Assets-- 100.0% $71,283,009
a Non-income producing security
b Pursuant to Rule 144A under the Act of 1933, these securities may be resold in
transactions exempt from registrations, normally to qualified institutional
buyers. At June 30, 2000, these securities aggregated $4,722,591 or 6.63% of the
net assets of the fund.
* Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $15,286,167 and $2,799,378,
respectively. Net unrealized appreciation for tax purposes is $12,486,789. See
notes to financial statements
See notes to financial statements
<PAGE>
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 1.88% for the six-month period ended June 30, 2000. In comparison, the
Fund's benchmark, the Merrill Lynch High Yield Master Index returned -1.19% for
the same period. For the one-year period ended June 30, 2000, the Fund returned
1.59%, while the Index had a return of -1.37%.
Portfolio Manager Comments
The Transamerica Premier High Yield Fund enjoyed very good performance during
the first half of 2000, outperforming the average high yield manager by over
3.50%. For the one-year period ended June 30, 2000, the Fund placed in the top
third of its category.+ The Fund also significantly outperformed its benchmark,
beating the Merrill Lynch High Yield Master Index by 3.07%. The Fund's holdings
in higher quality, non-cyclical companies, such as telecommunications and
supermarkets, contributed to its outperformance.
Portfolio Asset Mix
Common and Preferred stocks 4.4%
Cash and Cash Equivalents 8.1%
Foreign Government Securities 1.2%
Convertible Bonds 11.1%
Corporate Bonds 75.2%
Going Forward
We expect that economic growth will slow somewhat from the rapid pace of the
first half of the year, as the Federal Reserve's series of rate increases ripple
through the economy. Signs of slower consumer spending are already becoming
apparent, while core inflation remains benign. This environment should be very
constructive for good returns in the fixed-income market. We believe that the
Fund is well positioned and will continue to perform well. We will continue to
select high yield bonds from companies with strong experienced management teams
and high quality, valuable asset bases, that meet our stringent selection
criteria.
Thank you for your continued investment in the Transamerica Premier High Yield
Bond Fund.
+ Source: Lipper Analytical Services, Inc. among 350 High Yield Bond Funds for
the year ended June 30, 2000.
comparison of change in value of a $10,000 investment in transamerica premier
high yield bond fund with the merrill lynch high yield
Master index**
Total Returns Average Annual
As of June 30, 2000 Since Inception* One Year
Investor Class 11.90% 1.59%
Institutional Class 12.13% 1.85%
Merrill Lynch High Yield Master Index 10.82% -1.37%
--Investor Class ($30,218 at 6/30/00)
---Institutional Class ($30,826 at 6/30/00)
---Merrill Lynch High Yield Master Index ($27,460 at 6/30/00)
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 July 1, 1998, 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
September 1, 1990, the separate account's inception date. The performance prior
to June 30, 1998 is the separate account's performance recalculated to reflect
the actual fees and expenses of the Fund.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
Note: All performance information represents past performance and is not
indicative of future results. If the Investment Adviser had not waived fees and
the Administrator had not reimbursed expenses, the aggregate total return of the
Fund would have been lower.
<PAGE>
Transamerica premier High Yield Bond Fund (concluded)
Schedule of Investments-- June 30, 2000 (Unaudited)
Principal Market
Amount Value
CORPORATE BONDS-- 75.2%
Airlines-- 1.4%
GPA Holland BV
9.750% 12/10/01 $ 250,000 $ 248,125
9.640% 02/06/07 1,000,000 970,000
1,218,125
Commercial Services & Supplies-- 1.4%
Outdoor Systems, Inc.
9.375% 10/15/06 250,000 254,167
R H Donnelley Corporation
9.125% 06/01/08 1,000,000 945,000
1,199,167
Communication Equipment-- 3.4%
L-3 Communications Holdings, Inc.
10.375% 05/01/07 2,500,000 2,543,750
World Access, Inc.
13.250% 01/15/08 500,000 437,500
2,981,250
Diversified Financials-- 1.1%
Ono Finance PLC
13.000% 05/01/09 1,000,000 950,000
Diversified Telecommunications Services-- 22.0%
360networks, Inc. b
13.000% 05/01/08 1,600,000 1,608,000
International CableTel, Inc.
12.750% 04/15/05 1,000,000 1,022,500
Metromedia Fiber Network, Inc.
10.000% 11/15/08 400,000 395,000
10.000% 12/15/09 2,500,000 2,475,000
Metronet Communications Corporation a,c
0.000% 11/01/07 2,000,000 1,767,540
0.000% 06/15/08 2,000,000 1,622,240
NEXTLINK Communications, Inc.
9.000% 03/15/08 2,000,000 1,840,000
Rogers Cantel Mobile Communications, Inc.
9.375% 06/01/08 613,000 631,390
Telefonica de Argentina SA
11.875% 11/01/04 2,500,000 2,625,000
Williams Communications Group, Inc.
10.700% 10/01/07 3,000,000 2,985,000
WinStar Communications, Inc. b
12.500% 04/15/08 1,000,000 950,000
0.000%c 04/15/10 1,491,000 685,860
12.750% 04/15/10 509,000 478,460
WorldCom, Inc.
8.875% 01/15/06 37,000 38,364
19,124,354
Principal Market
Amount Value
Energy Equipment & Services-- 5.5%
Gulf Canada Resources Ltd.
9.250% 01/15/04 $ 2,000,000 $ 2,008,380
Offshore Logistics, Inc.
6.000% 12/15/03 950,000 812,250
Petroleos Mexicanos
8.850% 09/15/07 500,000 485,000
9.375% 12/02/08 500,000 515,000
Pride Pete Services, Inc.
9.375% 05/01/07 1,000,000 980,000
4,800,630
Food & Drug Retailing-- 4.0%
Stater Brothers Holdings, Inc.
10.750% 08/15/06 4,000,000 3,520,000
Food Products-- 1.6%
Beatrice Foods, Inc.
1.000% 11/19/26 494,000 74,100
CFP Holdings, Inc.
11.625% 01/15/04 1,500,000 1,323,750
1,397,850
Healthcare Providers & Services-- 4.3%
Alternate Living Services, Inc.
5.250% 12/15/02 650,000 325,813
Express Scripts, Inc.
9.625% 06/15/09 1,000,000 970,000
MedPartners, Inc. d
10.410% 06/15/01 414,774 396,109
Triad Hospitals, Inc., Series B
11.000% 05/15/09 2,000,000 2,047,500
3,739,422
Hotels, Restaurants & Leisure-- 10.5%
Boyd Gaming Corporation
9.250% 10/01/03 1,270,000 1,260,475
John Q. Hammons Hotels, Inc.
8.875% 02/15/04 2,600,000 2,262,000
MGM Grand, Inc.
9.750% 06/01/07 2,000,000 2,030,000
Premier Parks, Inc.
9.750% 01/15/07 3,600,000 3,582,000
9,134,475
Industrial-- 0.4%
Cambridge Industries, Inc.
10.250% 07/15/07 1,500,000 300,000
Media-- 9.7%
Australis Media Ltd.
0.000% 05/15/03 8,930 1
CF Cable TV, Inc.
9.125% 07/15/07 1,500,000 1,577,070
Citadel Broadcasting Company
9.250% 11/15/08 500,000 487,500
See notes to financial statements
<PAGE>
Principle Market
Amount Value
EchoStar Communications Corporation b
4.875% 01/01/07 $1,750,000 $1,673,000
Garden State Newspapers, Inc.
8.625% 07/01/11 500,000 442,500
Lamar Advertising Company
8.625% 09/15/07 2,500,000 2,400,000
Sinclair Broadcast Group, Inc.
8.750% 12/15/07 1,000,000 875,000
Young Broadcasting, Inc.
10.125% 02/15/05 1,000,000 970,000
8,425,071
Metals & Mining-- 0.5%
Hylsa SA de CV b
9.250% 09/15/07 500,000 430,000
Multiline Retail-- 5.4%
Jitney-Jungle Stores of America, Inc. e
12.000% 03/01/06 2,000,000 437,500
Shoppers Food Warehouse Corporation
9.750% 06/15/04 4,000,000 4,217,680
4,655,180
Road & Rail -- 0.8% MTL, Inc.
10.000% 06/15/06 1,000,000 700,000
Semiconductor Equipment & Products-- 1.6%
Vitesse Semiconductor Corporation b
4.000% 03/15/05 1,500,000 1,426,935
Software-- 1.6%
Earthwatch, Inc. a,c
0.000% 07/15/07 2,000,000 1,400,000
Total Corporate Bonds
(cost $71,264,646) 65,402,459
CONVERTIBLE BONDS-- 11.1%
Biotechnology-- 2.0%
ImClone Systems, Inc. b
5.500% 03/01/05 2,000,000 1,775,600
Diversified Telecommunications Services-- 0.8%
Digital Island, Inc.
6.000% 02/15/05 1,000,000 710,000
Semiconductor Equipment & Products-- 6.6%
Conexant Systems, Inc.
4.000% 02/01/07 1,500,000 1,174,215
Cypress Semiconductor Corporation
4.000% 02/01/05 1,000,000 1,150,000
3.750% 07/01/05 1,500,000 1,513,290
Macronix International Company Ltd.b
1.000% 02/01/05 1,500,000 1,901,250
5,738,755
Principle Market
Amount Value
Software -- 1.7%
Rational Software Corporation b
5.000% 02/01/07 $1,000,000 $ 1,463,130
Total Convertible Bonds
(cost $9,643,750) 9,687,485
COMMON STOCKS-- 0.3%
Diversified Financials-- 0.0%
Ono Finance PLCb 1,000 14,500
Media-- 0.3%
Medianews Group, Inc., Class A 2,000 250,000
Total Common Stocks
(cost $74,015) 264,500
PREFERRED STOCKS-- 4.1%
Diversified Telecommunications Services-- 2.2%
Global Crossing Ltd. 20,000 1,930,000
Financial Services-- 1.1%
Sinclair Capital 10,000 950,000
Media-- 0.8%
CSC Holdings, Inc. 6,458 678,116
Total Preferred Stocks
(cost $3,684,029) 3,558,116
Foreign Government Security-- 1.2%
United Mexican States
(cost $995,723) 9.875% 02/01/10 1,000,000 1,045,000
REPURCHASE AGREEMENT-- 6.0%
State Street Bank and Trust Company,
4.25%, due 07/03/00 (collateralized
by $5,250,000 par value U.S. Treasury
Note, 6.500%, due 08/31/01, with a
value of $5,361,563, cost $5,252,000) 5,252,000 5,252,000
Total Investments-- 97.9%
(cost $90,914,163)* 85,209,560
Other Assets Less Liabilities-- 2.1% 1,828,076
Net Assets-- 100.0% $87,037,636
a Non-income producing security
b Pursuant to Rule 144A under the Act of 1933, these securities may be resold in
transactions exempt from registrations, normally to qualified institutional
buyers. At June 30, 2000, these securities aggregated $12,406,735 or 14.25% of
the net assets of the Fund.
c Step Bond -- coupon rate increases in increments to maturity. Rate disclosed
is as of June 30, 2000. 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 $2,108,672 and $7,813,275,
respectively. Net unrealized depreciation for tax purposes is $5,704,603.
See notes to financial statements
<PAGE>
Semi-annual report 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 3.13%
for the six-month period ended June 30, 2000. In comparison, the Fund's
benchmark, the Lehman Brothers Government/Corporate Bond Index, returned 4.18%
for the same period. Since its inception in October 1995, the Fund has earned an
average annual total return of 5.94%, while the benchmark index returned 6.00%.
Portfolio Manager Comments
The Transamerica Premier Bond Fund enjoyed good performance during the first
half of 2000. According to Lipper Analytical Services, the Fund ranked #2 among
142 Investment Grade Corporate Bonds for the year ended June 30, 2000. The
Fund's positions in higher quality corporate bonds in non-cyclical industries
contributed to its outperformance, particularly its holdings in the supermarket,
energy and telecommunications sectors. The underlying interest rate environment
was also constructive, with interest rates dropping across the Treasury curve as
the market started to discount a "soft landing" in the economy.
Portfolio Asset Mix
Corporate and U.S. Government Securities 84.5%
Foreign Government Securities 3.9%
Cash and Cash Equivalents 11.6%
Going Forward
We expect that economic growth will slow somewhat from the rapid pace of the
first half of the year, as the Federal Reserve's series of rate increases ripple
through the economy. Signs of slower consumer spending are already becoming
apparent, while core inflation remains benign. This environment should be very
constructive for good returns in the fixed-income market. We believe that the
Fund is well positioned and will continue to perform well. We 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 June 30, 2000 Since Inception* One Year
Investor Class 5.94% 5.55%
Class A 4.70% 5.45%
Class M 5.31% 5.17%
Lehman Brothers Government/
Corporate Bond Index 6.00% 4.33%
--Investor Class ($13,151 at 6/30/00) --Class A ($12,435 at 6/30/00) ---Class M
($12,781 at 6/30/00)
---Lehman Brothers Government/Corporate Bond Index
($13,190 at 6/30/00)
The Lehman Brothers Government/Corporate Bond Index is a broad-based unmanaged
index of all government and corporate bonds that are investment grade with at
least one year to maturity. The Index does not reflect any commissions or fees
which would be incurred by an investor purchasing the securities it represents.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30, 1998;
average annual returns are based on the October 2, 1995 commencement date for
the Investor Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
Transamerica premier Bond Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
Principal Market
Amount Value
CORPORATE BONDS-- 58.5%
Aerospace & Defense-- 7.3%
Lockheed Martin Corporation
8.500% 12/01/29 $500,000 $ 504,890
Raytheon Company a
8.300% 03/01/10 750,000 763,777
1,268,667
Airlines -- 1.8%
AMR Corporation
9.750% 08/15/21 300,000 308,526
Auto Components-- 2.7%
Lear Corporation, Series B
7.960% 05/15/05 500,000 468,970
Automobiles-- 2.3%
General Motors Corporation
9.625% 12/01/00 400,000 403,928
Consumer Financial Services-- 2.9%
Ford Motor Credit Company
7.875% 06/15/10 500,000 499,910
Diversified Telecommunications Services-- 10.2%
Deutsche Telekom International Finance BV
8.250% 06/15/30 750,000 761,550
Metromedia Fiber Network, Inc.
10.000% 12/15/09 500,000 495,000
Telefonica de Argentina SA
11.875% 11/01/04 500,000 525,000
1,781,550
Electric Utilities -- 5.8% CILCORP, Inc.
8.700% 10/15/09 500,000 505,420
Cleveland Electric Illuminating Company
9.500% 05/15/05 500,000 505,930
1,011,350
Food & Drug Retailing-- 6.8%
Kroger Company
8.050% 02/01/10 750,000 741,360
Stater Brothers Holdings, Inc.
10.750% 08/15/06 500,000 440,000
1,181,360
Media -- 2.9%
Cox Enterprises, Inc. a
8.000% 02/15/07 500,000 499,160
Multiline Retail-- 7.5%
Kmart Corporation
8.125% 12/01/06 500,000 461,205
Shoppers Food Warehouse Corporation
9.750% 06/15/04 800,000 843,536
1,304,741
Principal Market
Amount Value
Multi-Utilities-- 4.4%
Sierra Pacific Resources
8.750% 05/15/05 $ 750,000 $ 759,893
Oil & Gas-- 3.9%
Occidental Petroleum Corporation
6.400% 04/01/03 700,000 676,046
Total Corporate Bonds
(cost $10,455,694) 10,164,101
U.S. Government Securities-- 26.0%
U.S. Treasury Notes
5.875% 11/15/04 250,000 246,368
6.000% 08/15/09 250,000 248,008
6.500% 02/15/10 3,875,000 4,007,602
Total Government Securities
(cost $4,449,925) 4,501,978
Foreign Government Security-- 3.9%
United Mexican States
(cost $652,080) 9.875% 02/01/10 650,000 679,250
REPURCHASE AGREEMENT-- 14.4%
State Street Bank and Trust Company,
4.25%, due 07/03/00 (collateralized
by $2,555,000 par value U.S. Treasury
Note, 6.375%, due 06/30/02, with a
value of $2,555,000, cost $2,504,000) 2,504,000 2,504,000
Total Investments-- 102.8%
(cost $18,061,699)* 17,849,329
Liabilities in Excess of Other Assets-- (2.8)% (485,005)
Net Assets-- 100.0% $17,364,324
a Pursuant to Rule 144A under the Act of 1933, these securities may be resold in
transactions exempt from registrations, normally to qualified institutional
buyers. At June 30, 2000, these securities aggregated $1,262,937 or 7.27% of the
net assets of the fund.
*Aggregate cost for Federal tax purposes. Aggregate gross unrealized
appreciation for all securities in which there is an excess of value over tax
cost and aggregate gross unrealized depreciation for all securities in which
there is an excess of tax cost over value were $129,600 and $341,970,
respectively. Net unrealized depreciation for tax purposes is $212,370.
See notes to financial statements
<PAGE>
Transamerica Premier cash reserve Fund
Portfolio Manager: Edward S. Han, Co-Manager: Heidi Y. Hu
Fund Performance
The Transamerica Premier Cash Reserve Fund's (Investor Class) return for the
six-month period ending June 30, 2000 was 2.96%. In comparison, the IBC Money
Fund Report(TM) had a return of 2.72%. The seven-day current and effective
yields were 6.42% and 6.63% respectively, as of June 30, 2000. The Fund's
average annual return since inception in October 1995 is 5.42%. The Fund ranked
in the top 5% among 362 money market funds for the 12-month period ended June
30, 2000, as tracked by Lipper Analytical Services, Inc.
Portfolio Manager Comments
The Fund's objective is to provide a high level of current income consistent
with liquidity and the preservation of capital. The Fund continued to perform
well relative to its peer group in 2000 despite a challenging interest rate
environment caused by the strength of the U.S. economy. The year 2000 has thus
far seen a continuation of the trends exhibited in 1999, which included healthy
consumer demand, tight labor markets, and rising energy prices. Due to concerns
that inflation risks were rising, the Federal Reserve raised the federal funds
target rate 100 basis points since the beginning of 2000 in an effort to slow
the economy to a more sustainable, non-inflationary pace. Towards the end of the
second quarter, the economy began showing some signs of moderation, suggesting
that the rate increases were beginning to take effect. We actively managed the
Fund's maturity structure in anticipation of the Federal Reserve's actions, and
were thus able to generate consistent outperformance for our investors.
Portfolio Asset Mix
Commercial Paper (Domestic) 96.2%
Commercial Paper (Foreign) 3.4%
Cash and Cash Equivalents 0.4%
Going Forward
We expect the Federal Reserve to remain vigilant for signs of increasing
inflation and to further increase the federal funds rate if the economy shows
signs of reacceleration. As a result, we expect more moderate economic growth in
the second half of 2000. We will continue to invest in high quality companies
and to manage the Fund to provide a high level of income, while preserving
safety and liquidity.
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 June 30, 2000 Since Inception* One Year
Investor Class 5.42% 5.67%
Class A 5.05% 5.30%
Class M 4.79% 5.04%
The IBC's Money Fund Report(TM) 5.03% 5.56%
--Investor Class ($12,849 at 6/30/00) --Class A ($12,637 at 6/30/00) ---Class M
($12,488 at 6/30/00)
---The IBC's Money Fund Report(TM)($12,625 at 6/30/00)
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 6.42% and 6.63% for the Investor
Class, 6.08% and 6.26% for Class A, and 5.83% and 6.00% for Class M,
respectively, as of June 30, 2000.
* Investor Class -- October 2, 1995. Class A and Class M -- June 30, 1998;
average annual returns are based on the October 2, 1995 commencement date for
the Investor Class.
** Hypothetical illustration of $10,000 invested at inception, assuming
reinvestment of dividends and capital gains at net asset value through June 30,
2000.
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.
<PAGE>
Transamerica premier Cash Reserve Fund
Schedule of Investments-- June 30, 2000 (Unaudited)
Principal Amortized
Amount Cost
COMMERCIAL PAPER-- DOMESTIC-- 96.2%
Banks-- 3.4%
BankAmerica Corporation
6.540% 08/17/00 $1,000,000 $ 991,462
6.670% 08/17/00 100,000 99,129
6.600% 08/24/00 1,000,000 990,100
6.480% 10/27/00 1,000,000 978,760
6.680% 10/27/00 2,000,000 1,956,209
5,015,660
Beverages -- 3.4% Anheuser-Busch Companies, Inc.
6.700% 09/13/00 441,000 434,926
Coca Cola Company
6.470% 07/06/00 3,000,000 2,997,304
6.530% 08/08/00 1,100,000 1,092,418
6.670% 08/16/00 500,000 495,739
5,020,387
Chemicals-- 4.3%
E. I. du Pont de Nemours and Company
5.830% 07/07/00 1,600,000 1,598,445
6.600% 07/07/00 1,300,000 1,298,570
6.300% 07/10/00 300,000 299,528
5.850% 07/12/00 2,000,000 1,996,425
5.860% 07/14/00 1,000,000 997,884
6,190,852
Commercial Financial Services-- 15.2%
Assets Securitization Cooperative Corporation
6.600% 07/28/00 600,000 597,030
6.580% 07/31/00 2,500,000 2,486,292
6.450% 08/01/00 1,750,000 1,740,280
6.550% 08/10/00 500,000 496,361
6.570% 08/16/00 1,300,000 1,289,087
6.600% 09/08/00 460,000 454,181
Associates Corporation of North America
6.350% 07/03/00 2,000,000 1,999,294
6.500% 07/10/00 1,300,000 1,297,888
6.560% 07/12/00 800,000 798,396
6.580% 07/12/00 900,000 898,191
6.750% 07/13/00 200,000 199,550
6.560% 07/20/00 1,250,000 1,245,672
General Electric Capital Corporation
6.570% 07/13/00 1,000,000 997,810
6.140% 07/18/00 1,100,000 1,096,811
6.420% 07/18/00 600,000 598,181
6.600% 07/18/00 100,000 99,688
6.620% 08/17/00 1,000,000 991,357
6.560% 08/22/00 1,000,000 990,525
6.620% 08/28/00 100,000 98,933
6.600% 09/01/00 900,000 889,770
6.580% 09/11/00 1,100,000 1,085,524
6.520% 11/28/00 300,000 291,850
Principal Amortized
Amount Cost
IBM Credit Corporation
6.180% 07/07/00 $ 500,000 $ 499,485
John Deere Capital Corporation
6.560% 07/17/00 1,000,000 997,084
22,139,240
Commercial Services & Supplies-- 0.7%
R.R. Donnelley & Sons Company
6.560% 07/18/00 1,000,000 996,902
Communication Equipment-- 3.7%
Motorola, Inc.
6.530% 08/14/00 1,440,000 1,428,507
6.530% 08/21/00 1,000,000 990,749
6.530% 08/23/00 2,000,000 1,980,773
6.560% 09/13/00 1,000,000 986,516
5,386,545
Computers & Peripherals-- 0.2%
IBM Corporation
6.600% 07/14/00 300,000 299,285
Consumer Financial Services-- 9.2%
Ford Motor Credit Company
6.600% 07/03/00 450,000 449,835
6.700% 07/07/00 500,000 499,442
6.770% 07/07/00 1,000,000 998,871
6.800% 07/10/00 625,000 623,938
6.550% 07/19/00 1,700,000 1,694,432
6.560% 07/20/00 745,000 742,421
6.000% 08/21/00 1,000,000 991,500
6.550% 08/23/00 1,000,000 990,357
Motorola Credit Corporation
6.570% 08/25/00 450,000 445,483
6.600% 09/28/00 1,200,000 1,180,420
Toyota Motor Credit Corporation
6.250% 09/08/00 1,000,000 988,021
USAA Capital Corporation
6.600% 07/28/00 900,000 895,545
6.580% 08/15/00 1,800,000 1,785,195
6.580% 08/31/00 400,000 395,540
6.600% 09/06/00 500,000 493,858
6.570% 09/14/00 200,000 197,263
13,372,121
See notes to financial statements
<PAGE>
Transamerica premier Cash Reserve Fund (concluded)
Schedule of Investments-- June 30, 2000 (Unaudited)
Principal Amortized
Amount Cost
Diversified Financials-- 9.4%
Goldman Sachs Group LP
6.520% 07/05/00 $3,000,000 $ 2,997,827
6.600% 08/11/00 1,375,000 1,364,664
6.630% 11/01/00 900,000 879,613
6.620% 11/06/00 1,500,000 1,464,693
Merrill Lynch & Company, Inc.
6.550% 07/31/00 1,500,000 1,491,812
6.570% 07/31/00 500,000 497,263
6.600% 07/31/00 130,000 129,285
6.620% 08/01/00 1,500,000 1,491,449
6.630% 08/01/00 600,000 596,574
6.630% 08/09/00 100,000 99,282
6.660% 08/23/00 400,000 396,078
6.500% 10/02/00 600,000 589,925
6.750% 11/17/00 450,000 438,272
6.710% 01/16/01 1,250,000 1,203,636
13,640,373
Diversified Telecommunications Services-- 8.6%
AT&T Corporation
6.600% 07/26/00 2,000,000 1,990,833
6.600% 07/27/00 3,000,000 2,985,700
6.600% 07/28/00 775,000 771,164
6.570% 09/05/00 1,250,000 1,234,944
BellSouth Telecommunications, Inc.
6.530% 07/10/00 2,000,000 1,996,735
6.540% 08/08/00 615,000 610,754
6.540% 08/18/00 3,000,000 2,973,840
12,563,970
Electric Utilities-- 4.5%
Duke Energy Corporation
6.900% 07/05/00 1,500,000 1,498,850
6.520% 07/11/00 2,000,000 1,996,378
Florida Power Corporation
6.560% 08/02/00 675,000 671,064
6.570% 08/02/00 1,500,000 1,491,240
Northern States Power Company
6.550% 08/21/00 930,000 921,370
6,578,902
Financial Services-- 18.9%
Ciesco LP
6.530% 07/13/00 2,000,000 1,995,647
6.600% 07/13/00 556,000 554,777
6.530% 07/21/00 1,000,000 996,372
6.600% 07/24/00 500,000 497,892
6.560% 08/01/00 1,840,000 1,829,606
Corporate Asset Funding Corporation
6.600% 07/17/00 1,250,000 1,246,333
6.500% 08/02/00 1,750,000 1,739,889
6.550% 08/04/00 1,250,000 1,242,267
6.560% 08/07/00 2,880,000 2,860,583
Principal Amortized
Amount Cost
Delaware Funding Corporation
6.550% 07/17/00 $1,000,000 $ 997,089
6.600% 07/21/00 2,000,000 1,992,667
6.610% 07/24/00 1,000,000 995,777
6.560% 07/25/00 876,000 872,169
6.610% 07/26/00 900,000 895,869
6.650% 07/26/00 653,000 649,984
6.580% 08/28/00 525,000 519,434
Pitney Bowes Credit Corporation
6.750% 07/07/00 430,000 429,516
Receivables Capital Corporation
6.600% 07/17/00 450,000 448,680
6.560% 07/28/00 1,500,000 1,492,620
6.570% 08/03/00 2,251,000 2,237,443
6.580% 08/04/00 640,000 636,023
6.580% 08/09/00 2,000,000 1,985,743
6.610% 09/15/00 350,000 345,116
27,461,496
Food Products-- 1.5%
H.J. Heinz Company
6.580% 07/19/00 700,000 697,697
6.620% 07/20/00 600,000 597,904
6.550% 07/24/00 850,000 846,443
2,142,044
Industrial Conglomerates-- 1.3%
Minnesota Mining & Manufacturing Company
6.500% 07/13/00 400,000 399,133
6.560% 08/22/00 1,000,000 990,524
6.600% 09/13/00 500,000 493,217
1,882,874
Insurance -- 1.4% AIG Funding, Inc.
6.560% 07/25/00 2,000,000 1,991,253
Leisure Equipment & Products-- 4.2%
Eastman Kodak Company
6.380% 07/14/00 947,000 944,818
6.530% 07/24/00 1,450,000 1,443,951
6.540% 08/23/00 3,000,000 2,971,115
6.600% 08/29/00 800,000 791,347
6,151,231
Media -- 1.4%
The Walt Disney Company
6.580% 07/10/00 1,000,000 998,355
6.680% 08/29/00 1,000,000 989,052
1,987,407
See notes to financial statements
<PAGE>
Principal Market
Amount Value
Multiline Retail-- 3.5%
Wal-Mart Stores, Inc.
6.510% 07/11/00 $1,100,000 $ 1,098,011
6.520% 07/13/00 1,000,000 997,827
6.590% 08/01/00 1,000,000 994,325
6.580% 08/30/00 2,000,000 1,978,067
5,068,230
Paper & Forest Products-- 0.7%
Kimberly-Clark Corporation
6.540% 08/04/00 1,000,000 993,823
Pharmaceuticals-- 0.7%
Pfizer, Inc.
6.650% 07/14/00 1,075,000 1,072,419
Total Commercial Paper -- Domestic
(amortized cost $139,955,014) 139,955,014
COMMERCIAL PAPER-- FOREIGN-- 3.4%
Banks-- 2.7%
Canadian Imperial Holdings, Inc.
6.580% 08/14/00 1,000,000 991,958
6.610% 09/13/00 2,000,000 1,972,825
Toronto Dominion Bank
6.540% 08/18/00 1,000,000 991,280
3,956,063
Food Products-- 0.7%
Canadian Wheat Board
6.570% 09/05/00 1,000,000 987,955
Total Commercial Paper -- Foreign
(amortized cost $4,944,018) 4,944,018
REPURCHASE AGREEMENT-- 0.1%
State Street Bank and Trust Company,
4.25%, due 07/03/00 (collateralized
by $130,000 par value U.S. Treasury
Bond, 12.500%, due 08/15/14, with
a value of $190,450, cost $181,000) 181,000 181,000
Total Investments-- 99.7%
(amortized cost $145,080,032) 145,080,032
Other Assets Less Liabilities-- 0.3% 419,883
Net Assets-- 100.0% $145,499,915
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
Statements of Assets and liabilities
June 30, 2000 (Unaudited)
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Premier Premier Premier Premier Premier Premier
Aggressive Small Company Equity Value Index Balanced
Growth Fund Fund Fund Fund Fund Fund
Transamerica Transamerica Transamerica
Premier Premier Premier
High Yield Bond Fund Cash Reserve
Fund Fund Fund
Assets
Investments, at cost
<S><C> <C> <C> <C> <C> <C>
$150,967,578 $210,332,038 $174,908,712 $9,516,186 $35,838,103 $58,940,122
$90,914,163 $18,061,699 $145,080,032
Investments, at value
$233,413,584 $354,391,559 $311,109,438 $11,805,785 $50,802,475 $71,426,911
$85,209,560 $17,849,329 $145,080,032
Cash
662,849 -- 239 381 331 345
267 453 80
Receivables:
Dividends and interest
18,402 67,008 27,261 1,977 34,220 465,615
1,898,090 287,498 21
Variation margin
-- -- -- -- 58,075 --
-- -- --
Securities sold
2,549,540 13,581,143 -- 406,433 12,017 --
-- -- --
Fund shares sold
64,801 1,507,636 27,584 18,630 29,347 160,583
16,039 1,455 567,214
Reimbursement from adviser
5,651 7,586 5,468 12,031 34,145 5,604
6,218 7,363 49,436
Prepaid expenses and other assets
-- -- 2,748 -- 1,684 2,911
-- 2,504 5,600
$236,714,827 $369,554,932 $311,172,738 $12,245,237 $50,972,294 $72,061,969
$87,130,174 $18,148,602 $145,702,383
Liabilities
Payables:
Securities purchased
4,751,400 12,273,643 1,801,683 236,438 206,258 664,330
-- 749,483 --
Fund shares redeemed
52,701 295,692 36,985 -- 6,925 11,640
7,721 -- 103,935
Advisory fees
160,377 241,408 212,862 7,110 12,461 42,464
39,012 8,444 40,760
Directors' fees
1,376 1,649 1,933 67 325 434
1,040 125 1,006
Distribution fees
47,492 71,329 62,871 2,434 4,415 1 4,263
351 3,555 597
Disbursement in excess of demand deposit cash
-- 15,622 -- -- -- --
-- -- --
Other accrued expenses
124,947 123,417 197,125 11,606 48,899 45,829
44,414 22,671 56,170
5,438,293 13,022,760 2,313,459 257,655 279,283 778,960
92,538 784,278 202,468
Total Net Assets
$231,276,534 $356,532,172 $308,859,279 $11,987,582 $50,693,011 $71,283,009
$87,037,636 $17,364,324 $145,499,915
Net Assets Consist Of:
Paid in capital
$96,604,061 $156,344,545 $138,674,951 $9,253,614 $34,881,816 $45,499,928
$95,088,049 $17,922,103 $145,499,915
Undistributed net investment income (loss)
(1,332,404) (2,143,702) (1,745,728) (43,427) 432,922 595,071
1 -- --
Accumulated net realized gain (loss) on investments and futures transactions
53,558,871 58,271,808 35,729,330 487,796 409,301 12,701,221
(2,345,811) (345,409) --
Net unrealized appreciation (depreciation) of investments and futures contracts
82,446,006 144,059,521 136,200,726 2,289,599 14,968,972 12,486,789
(5,704,603) (212,370) --
Total Net Assets
$231,276,534 $356,532,172 $308,859,279 $11,987,582 $50,693,011 $71,283,009
$87,037,636 $17,364,324 $145,499,915
Investor Class
Net Assets
$229,289,960 $354,493,474 $307,270,567 $11,539,563 $49,613,683 $70,558,155
$1,714,423 $17,049,296 $144,054,017
Shares Outstanding
6,498,727 8,459,165 9,326,452 880,627 2,333,259 3,141,741
189,322 1,753,668 144,054,017
Net Asset Value, Offering Price and Redemption Price Per Share
$ 35.28 $ 41.91 $ 32.95 $ 13.10 $ 21.26 $ 22.46
$ 9.06 $ 9.72 $ 1.00
Institutional Class
Net Assets
$ -- $ -- $ -- $ -- $ -- $ --
$85,323,213 $ -- $ --
Shares Outstanding
-- -- -- -- -- --
9,469,756 -- --
Net Asset Value, Offering Price and Redemption Price Per Share
$ -- $ -- $ -- $ -- $ -- $ --
$ 9.01 $ -- $ --
Class A
Net Assets
$1,164,221 $1,241,915 $776,291 $215,593 $667,262 $354,951
$ -- $233,995 $1,290,456
Shares Outstanding
33,076 29,748 23,658 16,480 31,446 15,847
-- 24,080 1,290,456
Net Asset Value and Redemption Price Per Share
$ 35.20 $ 41.75 $ 32.81 $ 13.08 $ 21.22 $ 22.40
$ -- $ 9.72 $ 1.00
Maximum Sales Charge
5.25% 5.25% 5.25% 5.25% 5.25% 5.25%
4.75%
Maximum Offering Price Per Share
$ 37.15 $ 44.06 $ 34.63 $ 13.80 $ 22.40 $ 23.64
$ -- $ 10.20 $ --
Class M
Net Assets
$822,353 $796,783 $812,421 $232,426$412,066 $369,903
$ -- $81,033 $155,442
Shares Outstanding
23,462 19,171 24,870 17,823 19,430 16,528
-- 8,326 155,442
Net Asset Value and Redemption Price Per Share
$ 35.05 $ 41.56 $ 32.67 $ 13.04 $ 21.21 $ 22.38
$ -- $ 9.73 $ 1.00
Maximum Sales Charge
1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
1.00%
Maximum Offering Price Per Share
$ 35.40 $ 41.98 $ 33.00 $ 13.17 $ 21.42 $ 22.61
$ -- $ 9.83 $ --
See notes to financial statements
<PAGE>
Statements of operations
For the six months ended June 30, 2000 (Unaudited)
Transamerica Transamerica Transamerica Transamerica Transamerica Transamerica
Premier Premier Premier Premier Premier Premier
Aggressive Small Company Equity Value Index Balanced
Growth Fund Fund Fund Fund Fund Fund
Transamerica Transamerica Transamerica
Premier Premier Premier
High Yield Bond Cash Reserve
Fund Fund Fund
Investment Income
Interest income
$2,910 $80,217 $80,107 $3,163 $261,691 $886,270
$3,865,787 $648,960 $4,351,008
Dividend income
214,393* 162,583 185,425* 17,367 233,963* 122,961
163,125 -- --
Total Income
217,303 242,800 265,532 20,530 495,654 1,009,231
4,028,912 648,960 4,351,008
Expenses
Investment adviser fee
1,002,846 1,622,439 1,327,187 39,812 73,897 248,858
228,810 50,414 248,682
Transfer agent fees:
Investor class
155,337 137,613 153,959 16,989 50,411 35,662
18,977 20,884 77,035
Institutional class
-- -- -- -- -- --
16,239 -- --
Class A
13,037 13,128 13,089 13,128 13,128 13,128
-- 13,128 13,426
Class M
13,367 13,173 13,180 13,128 13,128 13,128
-- 13,128 13,426
Distribution fees:
Investor class
292,949 475,103 388,777 12,996 24,284 82,372
2,149 20,760 --
Class A
1,560 1,725 1,134 202 831 510
-- 249 2,408
Class M
2,139 2,243 1,829 314 668 519
-- 164 363
Custodian fees
46,492 64,751 59,117 17,684 57,131 28,077
26,160 20,232 44,427
Registration fees
18,266 26,253 34,273 7,463 7,493 10,465
5,179 8,697 23,923
Audit fees
12,406 21,444 14,963 533 2,133 2,934
3,696 724 7,685
Legal fees
449 1,476 1,155 39 170 240
304 63 511
Printing fees and expenses
9,522 18,061 14,450 437 2,210 2,972
3,878 705 6,402
Directors' fees and expenses
4,911 8,123 6,236 205 927 1,273
1,351 319 2,695
Other expenses
3,348 7,674 8,493 242 3,085 1,696
2,755 446 3,623
Total expenses before waiver and reimbursement
1,576,629 2,413,206 2,037,842 123,172 249,496 441,834
309,498 149,913 444,606
Reimbursed expenses and waived fees
(26,922) (26,704) (26,582) (59,215)(186,764) (27,817)
(37,004) (40,484) (264,418)
Net Expenses
1,549,707 2,386,502 2,011,260 63,957 62,732 414,017
272,494 109,429 180,188
Net Investment Income (Loss)
(1,332,404) (2,143,702) (1,745,728) (43,427) 432,922 595,214
3,756,418 539,531 4,170,820
Net Realized and Unrealized Gain (Loss) on Investments Net realized gain (loss)
on investments and futures contracts
32,427,087 53,194,719 32,609,639 580,269 176,523 11,302,357
245,724 (184,670) --
Change in net unrealized appreciation (depreciation) of investments and futures contracts
(19,519,089) (32,720,822) (21,536,347) 909,592 (918,732) (5,730,471)
(2,434,822) 175,495 --
Net Realized and Unrealized Gain (Loss) on Investments
12,907,998 20,473,897 11,073,292 1,489,861 (742,209) 5,571,886
(2,189,098) (9,175) --
Net Increase (Decrease) in Net Assets Resulting From Operations
$11,575,594 $18,330,195 $9,327,564 $1,446,434 $(309,287) $6,167,100
$1,567,320 $530,356 $4,170,820
*Net of foreign withholding taxes, the amounts that were withheld in the
Aggressive Growth, Equity and Index Funds were $1,819, $1,945 and $1,248,
respectively.
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets
Transamerica Premier Transamerica Premier Transamerica Premier
Aggressive Growth Fund Small Company Fund Equity Fund
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
Increase (Decrease) in Net Assets
Operations
Net investment loss
$(1,332,404) $(2,693,151) $(2,143,702) $(2,293,507) $(1,745,728) $(3,518,585)
Net realized gain on investments and futures transactions
32,427,087 33,280,403 53,194,719 30,996,817 32,609,639 12,432,764
Net change in unrealized appreciation (depreciation) of investments (19,519,089) 54,492,477
(32,720,822) 130,364,462 (21,536,347) 75,670,336
Net increase in net assets resulting from operations
11,575,594 85,079,729 18,330,195 159,067,772 9,327,564 84,584,515
Dividends/Distributions to Shareholders Net investment income:
Investor class -- -- -- -- -- --
Institutional class-- -- -- -- -- --
Class A -- -- -- -- -- --
Class M -- -- -- -- -- --
Net realized gains:
Investor class -- (6,270,729) -- (23,185,123) -- (9,085,058)
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) -- (23,285,096) -- (9,115,119)
Fund Share Transactions
(18,391,135) (18,178,491) (8,790,746) 1,819,637 (25,121,152) (41,137,350)
Net increase (decrease) in net assets
(6,815,541) 60,596,387 9,539,449 137,602,313 (15,793,588) 34,332,046
Net Assets
Beginning of period
238,092,075 177,495,688 346,992,723 209,390,410 324,652,867 290,320,821
End of period1
$231,276,534 $238,092,075 $356,532,172 $346,992,723 $308,859,279 $324,652,867
1Includes undistributed net investment income (loss) of:
$(1,332,404) $ -- $(2,143,702) $ -- $(1,745,728) $ --
See notes to financial statements
Transamerica Premier Transamerica Premier Transamerica Premier
Value Fund Index Fund Balanced Fund
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
Increase(Decrease) in Net Assets
Operations
Net investment income (loss)
$(43,427) $(81,214) $432,922 $725,690 $595,214 $1,131,140
Net realized gain on investments and futures transactions
580,269 770,852 176,523 1,227,087 11,302,357 4,819,176
Net change in unrealized appreciation (depreciation) of investments
909,592 (53,279) (918,732) 6,449,700 (5,730,471) 2,501,393
Net increase (decrease) in net assets resulting from operations
1,446,434 636,359 (309,287) 8,402,477 6,167,100 8,451,709
Dividends/Distributions to Shareholders Net investment income:
Investor class -- -- -- (718,647) -- (1,155,112)
Institutional class-- -- -- -- -- --
Class A -- -- -- (5,730) -- (5,495)
Class M -- -- -- (1,367) -- (2,016)
Net realized gains:
Investor class -- -- -- (1,684,598) -- (3,413,640)
Institutional class-- -- -- -- -- --
Class A -- -- -- (16,669) -- (16,893)
Class M -- -- -- (4,977) -- (7,161)
Net decrease in net assets resulting from distributions
-- -- -- (2,431,988) -- (4,600,317)
Fund Share Transactions
1,126,114 (335,156) (59,207) 8,746,026 188,724 (846,647)
Net increase (decrease) in net assets
2,572,548 301,203 (368,494) 14,716,515 6,355,824 3,004,745
Net Assets
Beginning of period
9,415,034 9,113,831 51,061,505 36,344,990 64,927,185 61,922,440
End of period1
$11,987,582 $9,415,034 $50,693,011 $51,061,505 $71,283,009 $64,927,185
1Includes undistributed net investment income (loss) of:
$(43,427) $ -- $432,922 $ -- $595,071 $(143)
See notes to financial statements
<PAGE>
Statements of Changes in Net Assets (concluded)
Transamerica Premier Transamerica Premier Transamerica Premier
High Yield Bond Fund Bond Fund Cash Reserve Fund
Period Ended Year Ended Period Ended Year Ended Period Ended Year Ended
June 30, 2000 December 31, June 30, 2000 December 31, June 30, 2000 December 31,
(Unaudited) 1999 (Unaudited) 1999 (Unaudited) 1999
Increase (Decrease) in Net Assets
Operations
Net investment income
$3,756,418 $6,988,146 $539,531 $1,005,682 $4,170,820 $4,957,367
Net realized gain (loss) on investments and futures transactions
245,724 (1,881,329) (184,670) (160,323) -- --
Net change in unrealized appreciation (depreciation) of investments
(2,434,822) (1,133,560) 175,495 (866,339) -- --
Net increase (decrease) in net assets resulting from operations
1,567,320 3,973,257 530,356 (20,980) 4,170,820 4,957,367
Dividends/Distributions to Shareholders
Net investment income:
Investor class
(75,569) (169,095) (532,902) (998,717) (4,129,347) (4,918,811)
Institutional class
(3,731,896) (6,866,482) -- -- -- --
Class A -- -- (4,814) (7,776) (38,224) (37,319)
Class M -- -- (1,815) (663) (3,249) (1,237)
Net realized gains:
Investor class -- (60) -- (115,604) -- --
Institutional class-- (2,883) -- -- -- --
Class A -- -- -- (927) -- --
Class M -- -- -- (251) -- --
Net decrease in net assets resulting from distributions
(3,807,465) (7,038,520) (539,531) (1,123,938) (4,170,820) (4,957,367)
Fund Share Transactions
10,509,041 9,017,222 357,685 818,215 (20,723,714) 89,954,730
Net increase (decrease) in net assets
8,268,896 5,951,959 348,510 (326,703) (20,723,714) 89,954,730
Net Assets
Beginning of period
78,768,740 72,816,781 17,015,814 17,342,517 166,223,629 76,268,899
End of period1
$87,037,636 $78,768,740 $17,364,324 $17,015,814 $145,499,915 $166,223,629
1Includes undistributed net investment income (loss) of:
$ 1 $51,048 $ -- $ -- $ -- $ --
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 Investor Class
Period Ended Year Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, December 31,
(Unaudited) 1999 1998 1997*
Transamerica Premier Small Company Fund
Investor Class
Period Ended Year Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, December 31,
(Unaudited) 1999 1998 1997*
Net Asset Value
Beginning of period
$ 33.55 $ 22.42 $ 12.18 $ 10.00
$ 38.95 $ 21.99 $ 12.49 $ 10.00
Operations
Net investment loss1
(0.20)a (0.33)a (0.04) (0.03)
(0.24)a (0.29)a (0.02) (0.02)
Net realized and unrealized gain on investments
1.93 12.37 10.28 2.21
3.20 20.29 9.93 2.51
Total from investment operations
1.73 12.04 10.24 2.18
2.96 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
$ 35.28 $ 33.55 $ 22.42 $ 12.18
$ 41.91 $ 38.95 $ 21.99 $ 12.49
Total Return2
5.22% 54.25% 84.07% 21.80%
7.60% 93.99% 80.27% 24.90%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.31%+ 1.39% 1.40% 1.40%+
1.25%+ 1.34% 1.40% 1.40%+
Before reimbursement/fee waiver
1.31%+ 1.39% 1.60% 2.08%+
1.25%+ 1.34% 1.59% 2.12%+
Net investment loss, after reimbursement/fee waiver
(1.13%)+ (1.30%) (0.92%) (0.59%)+
(1.12%)+ (1.09%) (0.67%) (0.43%)+
Portfolio turnover rate
35% 80% 32% 17%
40% 50% 26% 74%
Net assets, end of period (in thousands)
$229,290 $236,741 $177,493 $12,780
$354,493 $345,341 $209,388 $11,122
+ Annualized
* Inception (Investor Class) -- June 30, 1997; funds commenced operations on
July 1, 1997.
1 Net investment loss is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been $(0.20), $(0.33), $(0.05) and $(0.06) for the Aggressive
Growth Fund and $(0.24), $(0.29), $(0.03) and $(0.06) for the Small Company Fund
for the periods ended June 30, 2000 and 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
<PAGE>
financial highlights (continued)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Equity Fund
Investor Class
Period Ended Year Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, December 31, December 31, December 31,
(Unaudited) 1999 1998 1997 1996 1995*
Transamerica Premier Value Fund
Investor Class
Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998**
Net Asset Value
Beginning of period
$ 31.96 $ 24.78 $ 18.53 $ 12.65 $ 9.82 $ 10.00
$ 11.37 $ 10.59 $ 10.00
Operations
Net investment income (loss)1
(0.18)a (0.29)a (0.15) (0.04) (0.06) 0.02
(0.05)a (0.10)a --
Net realized and unrealized gain (loss) on investments
1.17 8.40 6.42 6.05 2.91 (0.20)
1.78 0.88 0.62
Total from investment operations
0.99 8.11 6.27 6.01 2.85 (0.18)
1.73 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
$ 32.95 $ 31.96 $ 24.78 $ 18.53 $ 12.65 $ 9.82
$ 13.10 $ 11.37 $ 10.59
Total Return2
3.10% 33.26% 33.85% 47.51% 29.07% (1.80%) 15.22% 7.37% 6.19%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.29%+ 1.30% 1.42% 1.49% 1.50% 0.25%+
1.20%+ 1.20% 1.20%+
Before reimbursement/fee waiver
1.29%+ 1.30% 1.42% 1.51% 1.95% 2.39%+
1.79%+ 1.96% 2.21%+
Net investment income (loss), after reimbursement/fee waiver
(1.12%)+ (1.07%) (0.96%) (0.71%) (0.66%) 1.51%+
(0.81%)+ (0.90%) (0.04%)+
Portfolio turnover rate
20% 42% 59% 13% 60% --
33% 87% 72%
Net assets, end of period (in thousands)
$307,271 $323,538 $290,318 $111,567$30,454 $11,070 $11,540 $9,256 $9,111
+ Annualized
* Inception (Investor Class) -- October 2, 1995.
** Inception (Investor Class) -- March 31, 1998; fund commenced operations on
April 1, 1998.
1 Net investment 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 $(0.18), $(0.29), $(0.15), $(0.04), $(0.10) and $(0.01),
for the Equity Fund for the periods ended June 30, 2000 and December 31, 1999,
1998, 1997, 1996 and 1995, respectively and $(0.09), $(0.18) and $(0.08) for the
Value Fund for the periods ended June 30, 2000 and December 31, 1999 and 1998.
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
<PAGE>
Transamerica Premier Index Fund
Investor Class
Period Ended Year Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, December 31, December 31, December 31,
(Unaudited) 1999 1998 1997 1996 1995*
Net Asset Value
Beginning of period
$ 21.39 $ 18.63 $ 15.49 $ 11.96 $ 10.59 $ 10.00
Operations
Net investment income1
0.18a 0.34a 0.37 0.32 0.27 0.06
Net realized and unrealized gain (loss) on investments
(0.31) 3.47 3.98 3.60 2.06 0.53
Total from investment operations
(0.13) 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
$ 21.26 $ 21.39 $ 18.63 $ 15.49 $ 11.96 $ 10.59
Total Return2
(0.61%) 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% 0.25% 0.35% 0.25%+
Before reimbursement/fee waiver
0.90%+ 0.99% 1.14% 1.57% 2.29% 4.12%+
Net investment income, after reimbursement/fee waiver
1.76%+ 1.67% 2.26% 2.31% 2.48% 2.70%+
Portfolio turnover rate
10% 22% 32% 11% 94% 4%
Net assets, end of period (in thousands)
$49,614 $50,374 $36,342 $23,992 $10,814 $6,934
+ Annualized
* Inception (Investor Class) -- October 2, 1995.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment income
(loss) per share would have been $0.12, $0.19, $0.22, $0.14, $0.06 and $(0.03)
for the Index Fund for the periods ended June 30, 2000 and 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
<PAGE>
financial highlights (continued)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Balanced Fund
Investor Class
Period Ended Year Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, December 31, December 31, December 31,
(Unaudited) 1999 1998 1997 1996 1995*
Net Asset Value
Beginning of period
$ 20.50 $ 19.24 $ 15.54 $ 11.57 $ 10.23 $ 10.00
Operations
Net investment income1
0.19a 0.35a 0.23 0.11 0.14 0.06
Net realized and unrealized gain on investments
1.77 2.43 4.31 3.97 1.40 0.17
Total from investment operations
1.96 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
$ 22.46 $ 20.50 $ 19.24 $ 15.54 $ 11.57 $ 10.23
Total Return2
9.56% 14.81% 29.30% 35.38% 15.28% 2.30%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.24%+ 1.31% 1.43% 1.45% 1.45% 0.25%+
Before reimbursement/fee waiver
1.24%+ 1.31% 1.43% 1.62% 1.94% 2.12%+
Net investment income, after reimbursement/fee waiver
1.80%+ 1.76% 1.60% 0.83% 1.34% 3.12%+
Portfolio turnover rate
66% 61% 32% 23% 19% 16%
Net assets, end of period (in thousands)
$70,558 $64,448 $61,920 $26,799 $16,041 $12,084
+ Annualized
* Inception (Investor Class) -- October 2, 1995.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment income
per share would have been $0.19, $0.35, $0.23, $0.09,$0.09 and $0.02, for the
Balanced Fund for the periods ended June 30, 2000 and 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
<PAGE>
Transamerica Premier High Yield Bond Fund
Investor Class
Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998*
Transamerica Premier Bond Fund
Investor Class
Period Ended Year Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, December 31, December 31, December 31,
(Unaudited) 1999 1998 1997 1996 1995**
Net Asset Value
Beginning of period
$ 9.29 $ 9.63 $10.00
$ 9.73 $ 10.41 $ 10.19 $ 9.86 $ 10.37 $ 10.00
Operations
Net investment income1
0.40a 0.79 0.73
0.31 0.58 0.61 0.62 0.56 0.16
Net realized and unrealized gain (loss) on investments
(0.23) (0.27) (0.68)
(0.01) (0.60) 0.33 0.33 (0.46) 0.32
Total from investment operations
0.17 0.52 0.05
0.30 (0.02) 0.94 0.95 0.10 0.48
Dividends/Distributions to Shareholders
Net investment income
(0.40) (0.86) (0.41)
(0.31) (0.59) (0.61) (0.62) (0.61) (0.11)
Net realized gains on investments
-- -- (0.01)
-- (0.07) (0.11) -- -- --
Total dividends/distributions
(0.40) (0.86) (0.42)
(0.31) (0.66) (0.72) (0.62) (0.61) (0.11)
Net Asset Value
End of period
$ 9.06 $ 9.29 $ 9.63
$ 9.72 $ 9.73 $ 10.41 $ 10.19 $ 9.86 $ 10.37
Total Return2
1.88% 5.43% 0.58%
3.13% (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% 0.90%+
1.30%+ 1.30% 1.30% 1.30% 1.30% 0.25%+
Before reimbursement/fee waiver
3.58%+ 3.60% 6.50%+
1.45%+ 1.47% 1.47% 1.64% 1.81% 1.93%+
Net investment income, after reimbursement/fee waiver
8.78%+ 8.94% 23.97%+
6.42%+ 5.82% 5.94% 6.25% 5.66% 6.55%+
Portfolio turnover rate
41% 30% 22%
300% 301% 165% 99% 7% 19%
Net assets, end of period (in thousands)
$1,714 $1,610 $1,402
$17,049 $16,833 $17,340 $14,236 $12,553 $11,827
+ Annualized
*Inception (Investor Class) -- June 30, 1998; fund commenced operations on July
1, 1998.
** Inception (Investor Class) -- October 2, 1995.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment income
per share would have been $0.28, $0.55 and $0.56 for the High Yield Bond Fund
for the periods ended June 30, 2000 and December 31, 1999 and 1998,
respectively, and $0.30, $0.57, $0.59, $0.58, $0.50 and $0.12 for the Bond Fund
for the periods ended June 30, 2000 and December 31, 1999, 1998, 1997, 1996 and
1995, respectively.
2Total 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
<PAGE>
financial highlights (continued)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Cash Reserve Fund
Investor Class
Period Ended Year Ended Year Ended Year Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, December 31, December 31, December 31,
(Unaudited) 1999 1998 1997 1996 1995*
Transamerica Premier High Yield Bond Fund
Institutional Class
Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998**
Net Asset Value
Beginning of period
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
$ 9.25 $ 9.61 $ 10.00
Operations
Net investment income1
0.03 0.05 0.05 0.05 0.05 0.01
0.42 0.88 0.42
Net realized and unrealized loss on investments
-- -- -- -- -- --
(0.24) (0.36) (0.38)
Total from investment operations
0.03 0.05 0.05 0.05 0.05 0.01
0.18 0.52 0.04
Dividends/Distributions to Shareholders
Net investment income
(0.03) (0.05) (0.05) (0.05) (0.05) (0.01)
(0.42) (0.88) (0.42)
Net realized gains on investments
-- -- -- -- -- --
-- -- (0.01)
Total dividends/distributions
(0.03) (0.05) (0.05) (0.05) (0.05) (0.01)
(0.42) (0.88) (0.43)
Net Asset Value
End of period
$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
$ 9.01 $ 9.25 $ 9.61
Total Return2
2.96% 5.05% 5.45% 5.48% 5.34% 1.39%
1.91% 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% 0.25%+
0.65%+ 0.65% 0.65%+
Before reimbursement/fee waiver
0.58%+ 0.66% 0.73% 0.95% 1.09% 1.37%+
0.68%+ 0.69% 0.80%+
Net investment income, after reimbursement/fee waiver
5.87%+ 4.97% 5.29% 5.35% 5.21% 5.55%+
9.03%+ 9.10% 8.81%+
Portfolio turnover rate
-- -- -- -- -- --
41% 30% 22%
Net assets, end of period (in thousands)
$144,054 $165,301 $76,267 $51,246 $32,041 $27,996 $85,323 $77,159 $71,415
+ Annualized
* Inception (Investor Class) -- October 2, 1995.
** Inception (Institutional Class) -- June 30, 1998; fund commenced operations
on July 1, 1998.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment income
per share would have been $0.03, $0.05, $0.05, $0.05, $0.04 and $0.01 for the
Cash Reserve Fund for the periods ended June 30, 2000 and December 31, 1999,
1998, 1997, 1996 and 1995, respectively, and $0.41, $0.87 and $0.41 for the High
Yield Bond Fund for the periods ended June 30, 2000 and 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
<PAGE>
Transamerica Premier Aggressive Growth Fund Transamerica Premier Small Company Fund
Class A Class A
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$33.49 $22.41 $17.55 $38.87 $21.99 $17.20
Operations
Net investment loss1
(0.23)a (0.37) a (0.11) (0.29) a (0.35) a (0.08)
Net realized and unrealized gain on investments
1.94 12.36 4.97 3.17 20.27 4.87
Total from investment operations
1.71 11.99 4.86 2.88 19.92 4.79
Dividends/Distributions to Shareholders
Net investment income
-- -- -- -- -- --
Net realized gains on investments
-- (0.91) -- -- (3.04) --
Total dividends/distributions
-- (0.91) -- -- (3.04) --
Net Asset Value
End of period
$35.20 $33.49 $22.41 $41.75 $38.87 $21.99
Total Return 2
5.14% 54.09% 27.69% 7.41% 93.63% 27.85%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.50%+ 1.50% 1.50%+ 1.50%+ 1.50% 1.50%+
Before reimbursement/fee waiver
4.47%+ 8.63% 2091.85%+ 4.18%+ 9.86% 2146.03%+
Net investment (loss), after reimbursement/fee waiver
(1.31%)+ (1.43%) (1.07%)+ (1.37%)+(1.26%) (0.79%)+
Portfolio turnover rate
35% 80% 32% 40% 50% 26%
Net assets, end of period (in thousands)
$1,164 $ 778 $ 1 $1,242 $1,062 $ 1
+ Annualized
* Inception (Class A) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment loss is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been $(0.75), $(2.21) and $(221.25) for the Aggressive Growth
Fund and $(0.85), $(2.65) and $(212.68) for the Small Company Fund, for the
periods ended June 30, 2000 and 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
<PAGE>
financial highlights (continued)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Equity Fund Transamerica Premier Value Fund
Class A Class A
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$31.88 $24.79 $22.86 $11.35 $10.59 $9.71
Operations
Net investment loss1
(0.23)a (0.37) a (0.16) (0.06) a (0.11) a (0.02)
Net realized and unrealized gain on investments
1.16 8.39 2.09 1.79 0.87 0.92
Total from investment operations
0.93 8.02 1.93 1.73 0.76 0.90
Dividends/Distributions to Shareholders
Net investment income
-- -- -- -- -- (0.02)
Net realized gains on investments
-- (0.93) -- -- -- --
Total dividends/distributions
-- (0.93) -- -- -- (0.02)
Net Asset Value
End of period
$32.81 $31.88 $24.79 $13.08 $11.35 $10.59
Total Return2
2.92% 32.88% 8.44% 15.24% 7.18% 9.31%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.60%+ 1.60% 1.60%+ 1.30%+ 1.30% 1.30%+
Before reimbursement/fee waiver
5.68%+ 18.56% 2133.52%+ 26.01%+ 67.64% 2533.76%+
Net investment (loss), after reimbursement/fee waiver
(1.42%)+ (1.33%) (1.26%)+ (0.92%)+(0.99%) (0.42%)+
Portfolio turnover rate
20% 42% 59% 33% 87% 72%
Net assets, end of period (in thousands)
$ 776 $ 530 $ 1 $ 216 $ 87 $ 1
+ Annualized
* Inception (Class A) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment loss is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been, $(0.89), $(5.01) and $(269.96) for the Equity Fund and
$(1.58), $(7.21) and $(116.09) for the Value Fund for the periods ended June 30,
2000 and 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
<PAGE>
Transamerica Premier Index Fund Transamerica Premier Balanced Fund
Class A Class A
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$21.37 $18.62 $17.59 $20.47 $19.25 $17.99
Operations
Net investment income1
0.16a 0.30a 0.19 0.16a 0.33a 0.18
Net realized and unrealized gain (loss) on investments
(0.31) 3.45 1.39 1.77 2.39 1.87
Total from investment operations
(0.15) 3.75 1.58 1.93 2.72 2.05
Dividends/Distributions to Shareholders
Net investment income
-- (0.25) (0.27) -- (0.35) (0.17)
Net realized gains on investments
-- (0.75) (0.28) -- (1.15) (0.62)
Total dividends/distributions
-- (1.00) (0.55) -- (1.50) (0.79)
Net Asset Value
End of period
$21.22 $21.37 $18.62 $22.40 $20.47 $19.25
Total Return2
(0.70%) 20.31% 8.94% 9.43% 14.48% 11.41%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
0.50%+ 0.50% 0.50%+ 1.55%+ 1.55% 1.55%+
Before reimbursement/fee waiver
6.96%+ 8.67% 2141.94%+ 11.04%+ 17.18% 2068.27%+
Net investment income, after reimbursement/fee waiver
1.51%+ 1.47% 2.04%+ 1.51%+ 1.65% 1.73%+
Portfolio turnover rate
10% 22% 32% 66% 61% 32%
Net assets, end of period (in thousands)
$ 667 $ 524 $ 1 $ 355 $ 339 $ 1
+ Annualized
* Inception (Class A) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been $(0.51), $(1.36) and $(203.55) for the Index Fund and
$(0.86), $(2.79) and $(214.50) for the Balanced Fund for the periods ended June
30, 2000 and 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>
financial highlights (continued)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Bond Fund Transamerica Premier Cash Reserve Fund
Class A Class A
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$9.73 $10.40 $10.32 $1.00 $1.00 $1.00
Operations
Net investment income1
0.30 0.55 0.29 0.03 0.05 0.02
Net realized and unrealized gain (loss) on investments
(0.01) (0.57) 0.19 -- -- --
Total from investment operations
0.29 (0.02) 0.48 0.03 0.05 0.02
Dividends/Distributions to Shareholders
Net investment income
(0.30) (0.58) (0.29) (0.03) (0.05) (0.02)
Net realized gains on investments
-- (0.07) (0.11) -- -- --
Total dividends/distributions
(0.30) (0.65) (0.40) (0.03) (0.05) (0.02)
Net Asset Value
End of period
$9.72 $9.73 $10.40 $1.00 $1.00 $1.00
Total Return2
3.08% (0.22%) 4.80% 2.78% 4.68% 2.50%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.40%+ 1.40% 1.40%+ 0.60%+ 0.60% 0.60%+
Before reimbursement/fee waiver
21.36%+ 26.13% 2353.12%+ 2.95%+ 4.78% 2413.01%+
Net investment income, after reimbursement/fee waiver
6.38%+ 5.82% 5.66%+ 5.58%+ 4.58% 4.85%+
Portfolio turnover rate
300% 301% 165% -- -- --
Net assets, end of period (in thousands)
$ 234 $ 145 $ 1 $1,290 $ 819 $ 1
+ Annualized
* Inception (Class A) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment income
(loss) per share would have been $(0.65), $(1.77) and $(120.85) for the Bond
Fund and $0.02, $0.00 and $(12.31) for the Cash Reserve Fund, for the periods
ended June 30, 2000 and 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.
See notes to financial statements
<PAGE>
Transamerica Premier Aggressive Growth Fund Transamerica Premier Small Company Fund
Class M Class M
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$33.39 $22.39 $17.55 $38.74 $21.96 $17.20
Operations
Net investment loss1
(0.27)a (0.45)a (0.18) (0.34)a (0.46)a (0.14)
Net realized and unrealized gain on investments
1.93 12.36 5.02 3.16 20.28 4.90
Total from investment operations
1.66 11.91 4.84 2.82 19.82 4.76
Dividends/Distributions to Shareholders
Net investment income
-- -- -- -- -- --
Net realized gains on investments
-- (0.91) -- -- (3.04) --
Total dividends/distributions
-- (0.91) -- -- (3.04) --
Net Asset Value
End of period
$35.05 $33.39 $22.39 $41.56 $38.74 $21.96
Total Return2
5.00% 53.78% 27.58% 7.31% 93.30% 27.67%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.75%+ 1.75% 1.75%+ 1.75%+ 1.75% 1.75%+
Before reimbursement/fee waiver
5.60%+ 25.05% 1559.17%+ 5.36%+ 31.68% 1554.70%+
Net investment (loss), after reimbursement/fee waiver
(1.56%)+ (1.66%) (1.32%)+ (1.62%)+(1.50%) (1.05%)+
Portfolio turnover rate
35% 80% 32% 40% 50% 26%
Net assets, end of period (in thousands)
$ 822 $ 574 $ 1 $ 797 $ 590 $ 1
+ Annualized
* Inception (Class M) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment loss is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been $(0.95), $(6.73) and $(207.97) for the Aggressive Growth
Fund and $(1.08), $(9.61) and $(203.30) for the Small Company Fund for the
periods ended June 30, 2000 and 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.
aPer 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
<PAGE>
financial highlights (continued)
The following table includes selected data for a share outstanding throughout
each period and other performance information derived from the financial
statements.
Transamerica Premier Equity Fund Transamerica Premier Value Fund
Class M Class M
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$31.74 $24.73 $22.86 $11.33 $10.59 $9.71
Operations
Net investment loss1
(0.27)a (0.42)a (0.25) (0.07)a (0.13)a (0.05)
Net realized and unrealized gain on investments
1.20 8.36 2.12 1.78 0.87 0.94
Total from investment operations
0.93 7.94 1.87 1.71 0.74 0.89
Dividends/Distributions to Shareholders
Net investment income
-- -- -- -- -- (0.01)
Net realized gains on investments
-- (0.93) -- -- -- --
Total dividends/distributions
-- (0.93) -- -- -- (0.01)
Net Asset Value
End of period
$32.67 $31.74 $24.73 $13.04 $11.33 $10.59
Total Return2
2.93% 32.64% 8.18% 15.09% 6.99% 9.17%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.85%+ 1.85% 1.85%+ 1.55%+ 1.55% 1.55%+
Before reimbursement/fee waiver
6.24%+ 31.24% 1618.88%+ 28.83%+ 151.30% 1654.81%+
Net investment (loss), after reimbursement/fee waiver
(1.68%)+ (1.51%) (1.49%)+ (1.18%)+(1.23%) (0.74%)+
Portfolio turnover rate
20% 42% 59% 33% 87% 72%
Net assets, end of period (in thousands)
$ 812 $ 585 $ 1 $ 232 $ 72 $ 1
+ Annualized
* Inception (Class M) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment loss is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been $(0.98), $(8.59) and $(269.54) for the Equity Fund and
$(1.75), $(16.23) and $(115.93) for the Value Fund for the periods ended June
30, 2000 and 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
<PAGE>
Transamerica Premier Index Fund Transamerica Premier Balanced Fund
Class M Class M
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$21.38 $18.64 $17.59 $20.48 $19.24 $17.99
Operations
Net investment income1
0.13a 0.25a 0.16 0.15a 0.28a 0.14
Net realized and unrealized gain (loss) on investments
(0.30) 3.44 1.41 1.75 2.41 1.87
Total from investment operations
(0.17) 3.69 1.57 1.90 2.69 2.01
Dividends/Distributions to Shareholders
Net investment income
-- (0.20) (0.24) -- (0.30) (0.14)
Net realized gains on investments
-- (0.75) (0.28) -- (1.15) (0.62)
Total dividends/distributions
-- (0.95) (0.52) -- (1.45) (0.76)
Net Asset Value
End of period
$21.21 $21.38 $18.64 $22.38 $20.48 $19.24
Total Return2
(0.80%) 19.94% 8.92% 9.28% 14.32% 11.22%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
0.75%+ 0.75% 0.75%+ 1.80%+ 1.80% 1.80%+
Before reimbursement/fee waiver
14.01%+ 46.84% 2385.32%+ 17.97%+ 81.32% 2322.86%+
Net investment income, after reimbursement/fee waiver
1.27%+ 1.25% 1.77%+ 1.35%+ 1.41% 1.48%+
Portfolio turnover rate
10% 22% 32% 66% 61% 32%
Net assets, end of period (in thousands)
$ 412 $ 164 $ 1 $ 370 $ 141 $ 1
+ Annualized
* Inception (Class M) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been $(1.25), $(9.16) and $(212.42) for the Index Fund and
$(1.60), $(15.74) and $(215.60) for the Balanced Fund for the periods ended June
30, 2000 and 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>
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 Bond Fund Transamerica Premier Cash Reserve Fund
Class M Class M
Period Ended Year Ended Period Ended Period Ended Year Ended Period Ended
June 30, 2000 December 31, December 31, June 30, 2000 December 31, December 31,
(Unaudited) 1999 1998* (Unaudited) 1999 1998*
Net Asset Value
Beginning of period
$9.74 $10.42 $10.32 $1.00 $1.00 $1.00
Operations
Net investment income1
0.28 0.54 0.28 0.03 0.04 0.02
Net realized and unrealized gain (loss) on investments
-- (0.60) 0.21 -- -- --
Total from investment operations
0.28 (0.06) 0.49 0.03 0.04 0.02
Dividends/Distributions to Shareholders
Net investment income
(0.29) (0.55) (0.28) (0.03) (0.04) (0.02)
Net realized gains on investments
-- (0.07) (0.11) -- -- --
Total dividends/distributions
(0.29) (0.62) (0.39) (0.03) (0.04) (0.02)
Net Asset Value
End of period
$9.73 $9.74 $10.42 $1.00 $1.00 $1.00
Total Return2
2.94% (0.56%) 4.87% 2.65% 4.46% 2.35%
Ratios and Supplemental Data
Expenses to average net assets:
After reimbursement/fee waiver
1.65%+ 1.65% 1.65%+ 0.85%+ 0.85% 0.85%+
Before reimbursement/fee waiver
53.66%+ 276.41% 2292.61%+ 25.08%+ 116.76% 2402.67%+
Net investment income, after reimbursement/fee waiver
6.14%+ 5.61% 5.42%+ 5.34%+ 4.66% 4.61%+
Portfolio turnover rate
300% 301% 165% -- -- --
Net assets, end of period (in thousands)
$ 81 $ 38 $ 1 $ 155 $ 103 $ 1
</TABLE>
+ Annualized
* Inception (Class M) -- June 30, 1998; funds commenced operations on July 1,
1998.
1 Net investment income is after waiver of fees by the Adviser and reimbursement
of certain expenses by the Administrator (Note 2). If the Adviser had not waived
fees and the Administrator had not reimbursed expenses, net investment loss per
share would have been $(2.08), $(25.99) and $(118.62) for the Bond Fund and
$(0.09), $(1.05) and $(12.07) for the Cash Reserve Fund for the periods ended
June 30, 2000 and 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.
See notes to financial statements
<PAGE>
notes to financial statements
June 30, 2000 (Unaudited)
1. Significant Accounting Policies
Transamerica Investors, Inc. (the "Company") is registered under the Investment
Company Act of 1940 (the "1940 Act") as an open-end, management investment
company. The Company is composed of nine Funds: Transamerica Premier Aggressive
Growth Fund (the "Aggressive Growth Fund") which is non-diversified,
Transamerica Premier Small Company Fund (the "Small Company Fund"), Transamerica
Premier Equity Fund (the "Equity Fund"), Transamerica Premier Value Fund (the
"Value Fund"), Transamerica Premier Index Fund (the "Index Fund"), Transamerica
Premier Balanced Fund (the "Balanced Fund"), Transamerica Premier High Yield
Bond Fund (the "High Yield Fund"), Transamerica Premier Bond Fund (the "Bond
Fund"), and Transamerica Premier Cash Reserve Fund, (the "Cash Reserve Fund"),
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.
notes to financial statements (continued)
June 30, 2000 (Unaudited)
(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 Management, LLC (the
"Adviser") and Transamerica Investment Services, Inc. (the "Sub-Adviser") on
behalf of each Fund. For its services to the Funds, the Adviser receives a
monthly fee, based on an annual percentage of the average daily net assets of
each Fund. The annual fees for the Funds are as follows:
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 Sub-Adviser is an indirect, wholly owned subsidiary of AEGON N.V. and owns
all the capital interests of the Adviser. The Sub-Adviser receives its fee
directly from the Adviser and receives no compensation from the Funds.
The Adviser has agreed to waive its fee and 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:
<TABLE>
<CAPTION>
InvestorInstitutional
Fund Class Class Class A Class M
<S> <C> <C> <C>
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%
</TABLE>
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 Adviser, the Sub-Adviser or any of
their respective affiliates receives any compensation from the Funds for acting
as a director or officer of the Company. Each director of the Company who is not
an "interested person" (as that term is defined in the 1940 Act) receives from
the Funds a $10,000 annual fee, $1,000 for each meeting of the Company's Board
attended, and $500 for each Board committee meeting attended, and is reimbursed
for expenses incurred in connection with such attendance. For the period ended
June 30, 2000, the Funds expensed aggregate fees of $26,040 to all directors who
are not affiliated persons of the Adviser.
Certain directors and officers of the Funds are also directors and officers of
the Adviser and other affiliated Transamerica entities.
As of June 30, 2000, Transamerica Corporation and its affiliates held the
following percentages of outstanding shares:
Fund
Aggressive Growth Fund 11.70%
Small Company Fund 9.41%
Equity Fund 24.37%
Value Fund 54.87%
Index Fund 60.11%
Balanced Fund 43.45%
High Yield Fund 97.94%
Bond Fund 83.82%
Cash Reserve Fund 22.02%
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.
<PAGE>
4. Security Transactions
The aggregate cost of purchases and proceeds from sales of securities, excluding
short-term investments, for the period ended June 30, 2000 were as follows:
<TABLE>
<CAPTION>
U.S. U.S.
Government Proceeds Government
Fund Purchases Purchases from Sales Sales
<S> <C> <C> <C> <C>
Aggressive Growth Fund $82,269,932 $ -- $99,353,114 $ --
Small Company Fund 156,140,629 -- 150,028,907 --
Equity Fund 60,354,920 -- 85,027,150 --
Value Fund 4,296,849 -- 3,517,156 --
Index Fund 5,504,218 -- 4,158,888 --
High Yield Fund 43,467,768 -- 32,099,894 --
Balanced Fund 37,254,550 5,310,367 39,381,816 4,557,288
Bond Fund 21,507,001 24,918,957 20,667,755 25,847,420
</TABLE>
5. Capital Stock Transactions
At June 30, 2000, 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.
<TABLE>
<CAPTION>
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund Authorized Shares-- 60,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
<S> <C> <C> <C> <C>
Capital stock sold 2,584,402 $89,861,677 10,835,790 $271,958,612
Capital stock issued
upon reinvestment
of dividends and
distributions 17 482 209,406 6,135,460
Capital stock redeemed (3,143,002) (108,796,156) (11,903,966) (297,271,852)
Net decrease 558,583 $18,933,997 858,770 $19,177,780
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 31,440 $1,071,826 26,724 $641,778
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 671 19,627
Capital stock redeemed (21,581) (747,513) (4,242) (109,486)
Net increase 9,859 $324,313 23,153 $551,919
TRANSAMERICA PREMIER
AGGRESSIVE Growth fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 10,594 $374,010 16,674 $434,286
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 496 14,491
Capital stock redeemed (4,312) (155,461) (56) (1,407)
Net increase 6,282 $218,549 17,114 $447,370
TRANSAMERICA PREMIER
SMALL COMPANY fund Authorized Shares-- 60,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 8,668,667 $369,793,480 15,398,720 $412,148,183
Capital stock issued
upon reinvestment
of dividends and
distributions 28 884 712,901 22,791,436
Capital stock redeemed (9,075,005) (378,892,118) (16,767,387) (434,285,494)
Net increase (decrease) (406,310) $(9,097,754) (655,766) $654,125
TRANSAMERICA PREMIER
SMALL COMPANY fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 49,061 $2,085,367 71,083 $2,000,033
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 1,868 59,585
Capital stock redeemed (46,642) (1,952,917) (45,687) (1,337,567)
Net increase 2,419 $132,450 27,264 $722,051
TRANSAMERICA PREMIER
SMALL COMPANY fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 9,172 $393,029 14,504 $419,880
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 1,270 40,376
Capital stock redeemed (5,226) (218,471) (616) (16,795)
Net increase 3,946 $174,558 15,158 $443,461
<PAGE>
notes to financial statements (continued)
June 30, 2000 (Unaudited)
TRANSAMERICA PREMIER
EQUITY fund Authorized Shares-- 100,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 2,760,334 $89,456,914 7,761,432 $211,183,278
Capital stock issued
upon reinvestment
of dividends and
distributions 13 517 320,772 8,952,147
Capital stock redeemed (3,558,156) (115,023,743) (9,675,400) (262,222,835)
Net decrease 797,809 $25,566,312 1,593,196 $42,087,410
TRANSAMERICA PREMIER
EQUITY fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 14,935 $483,471 16,223 $436,003
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 527 14,662
Capital stock redeemed (7,907) (239,039) (172) (5,302)
Net increase 7,028 $244,432 16,578 $445,363
TRANSAMERICA PREMIER
EQUITY fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 10,118 $323,908 17,873 $490,649
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 555 15,395
Capital stock redeemed (3,677) (123,180) (50) (1,347)
Net increase 6,441 $200,728 18,378 $504,697
TRANSAMERICA PREMIER
VALUE fund Authorized Shares-- 50,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 167,975 $2,087,526 146,708 $1,585,082
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (101,584) (1,217,784) (192,450) (2,067,820)
Net increase (decrease) 66,391 $ 869,742 (45,742) $(482,738)
TRANSAMERICA PREMIER
VALUE fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 10,101 $128,659 7,766 $82,786
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (1,323) (16,853) (183) (1,974)
Net increase 8,778 $111,806 7,583 $80,812
TRANSAMERICA PREMIER
VALUE fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 14,047 $175,182 6,219 $66,770
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- -- --
Capital stock redeemed (2,562) (30,616) -- --
Net increase 11,485 $144,566 6,219 $66,770
TRANSAMERICA PREMIER
INDEX fund Authorized Shares-- 60,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 868,399 $17,991,440 831,496 $16,749,659
Capital stock issued
upon reinvestment
of dividends and
distributions 412 8,787 112,998 2,370,775
Capital stock redeemed (890,811) (18,467,649) (539,852) (10,997,701)
Net increase (decrease) (22,000) $(467,422) 404,642 $8,122,733
TRANSAMERICA PREMIER
INDEX fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 19,550 $417,367 44,170 $870,556
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 1,071 22,394
Capital stock redeemed (12,628) (256,720) (20,788) (423,599)
Net increase 6,922 $160,647 24,453 $469,351
<PAGE>
TRANSAMERICA PREMIER
INDEX fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 12,970 $272,262 7,345 $148,693
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 304 6,342
Capital stock redeemed (1,203) (24,694) (53) (1,093)
Net increase 11,767 $247,568 7,596 $153,942
TRANSAMERICA PREMIER
BALANCED fund Authorized Shares-- 60,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 1,106,448 $23,712,115 1,854,435 $37,149,248
Capital stock issued
upon reinvestment
of dividends and
distributions (26) (457) 226,080 4,496,017
Capital stock redeemed (1,109,181) (23,727,266) (2,154,606) (42,957,109)
Net decrease 2,759 $15,608 74,091 $1,311,844
TRANSAMERICA PREMIER
BALANCED fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 4,224 $93,245 21,360 $427,905
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 1,127 22,384
Capital stock redeemed (4,933) (100,738) (5,998) (121,450)
Net increase (decrease) (709) $(7,493) 16,489 $328,839
TRANSAMERICA PREMIER
BALANCED fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 10,714 $233,676 6,448 $129,412
Capital stock issued
upon reinvestment
of dividends and
distributions -- -- 463 9,173
Capital stock redeemed (1,053) (21,851) (110) (2,227)
Net increase 9,661 $211,825 6,801 $136,358
TRANSAMERICA PREMIER
HIGH YIELD Bond fund Authorized Shares-- 50,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 84,744 $792,022 292,579 $2,869,580
Capital stock issued
upon reinvestment
of dividends and
distributions 7,770 71,564 15,279 147,108
Capital stock redeemed (76,515) (712,651) (280,032) (2,727,807)
Net increase 15,999 $150,935 27,826 $288,881
TRANSAMERICA PREMIER
HIGH YIELD Bond fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Institutional Class Shares Shares Amount Shares Amount
Capital stock sold 764,591 $7,064,521 212,399 $1,999,524
Capital stock issued
upon reinvestment
of dividends and
distributions 407,723 3,731,894 718,257 6,869,383
Capital stock redeemed (48,203) (438,309) (15,070) (140,566)
Net increase 1,124,111 $10,358,106 915,586 $8,728,341
TRANSAMERICA PREMIER
BOND fund Authorized Shares-- 60,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 153,110 $1,487,414 287,583 $2,919,829
Capital stock issued
upon reinvestment
of dividends and
distributions 54,546 527,028 110,847 1,103,171
Capital stock redeemed (183,750) (1,788,357) (334,952) (3,394,603)
Net increase 23,906 $226,085 63,478 $628,397
TRANSAMERICA PREMIER
BOND fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 12,033 $115,712 17,264 $176,961
Capital stock issued
upon reinvestment
of dividends and
distributions 498 4,812 878 8,698
Capital stock redeemed (3,343) (32,292) (3,370) (33,399)
Net increase 9,188 $88,232 14,772 $152,260
<PAGE>
notes to financial statements (concluded)
June 30, 2000 (Unaudited)
TRANSAMERICA PREMIER
Bond fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 5,743 $55,915 3,711 $36,894
Capital stock issued
upon reinvestment
of dividends and
distributions 188 1,813 93 912
Capital stock redeemed (1,499) (14,360) (25) (248)
Net increase 4,432 $43,368 3,779 $37,558
TRANSAMERICA PREMIER
CASH RESERVE fund Authorized Shares-- 510,000,000
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Investor Class Shares Shares Amount Shares Amount
Capital stock sold 176,438,643 $176,438,643 468,845,360 $468,845,360
Capital stock issued
upon reinvestment
of dividends and
distributions 4,036,296 4,036,296 4,763,706 4,763,706
Capital stock redeemed (201,722,277) (201,722,277) (384,574,280) (384,574,280)
Net increase (decrease) (21,247,338) $(21,247,338) 89,034,786 $89,034,786
TRANSAMERICA PREMIER
CASH RESERVE fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class A Shares Shares Amount Shares Amount
Capital stock sold 4,519,499 $4,519,499 3,001,634 $3,001,634
Capital stock issued
upon reinvestment
of dividends and
distributions 36,057 36,057 37,476 37,476
Capital stock redeemed (4,084,314) (4,084,314) (2,221,050) (2,221,050)
Net increase 471,242 $471,242 818,060 $818,060
TRANSAMERICA PREMIER
CASH RESERVE fund
Period Ended Year Ended
June 30, 2000 (Unaudited) December 31, 1999
Class M Shares Shares Amount Shares Amount
Capital stock sold 1,038,541 $1,038,541 130,652 $130,652
Capital stock issued
upon reinvestment
of dividends and
distributions 2,677 2,677 1,244 1,244
Capital stock redeemed (988,836) (988,836) (30,012) (30,012)
Net increase 52,382 $ 52,382 101,884 $101,884
</TABLE>
<PAGE>
Transamerica 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
Investment Adviser
Transamerica Investment Management, LLC
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 577-800
