Transamerica Asset Allocation-Moderate Growth Portfolio
Summary Prospectus March 1, 2025, as revised April 4, 2025
| Class A (IMLAX) |
Class C (IMLLX) |
Class I (TMGIX) |
Class R (IMGRX) |
Class R3 (TAALX) |
Thank you for
being a valued Transamerica shareholder. This Summary Prospectus will provide you with updated information about your investment in the fund.
Before you invest, you may want to review the fund’s prospectus, which contains more information about the fund and its risks. You can find the fund’s prospectus and other information about the fund, including the fund’s statement of additional information and most recent reports to shareholders, online at https://www.transamerica.com/financial-pro/investments/prospectus. You can also get this information at no cost by calling 866-414-6349
or by sending an e-mail request to orders@mysummaryprospectus.com, or from your financial professional. The fund’s prospectus and
statement of additional information dated March 1, 2025, as supplemented from time to time, and the independent registered public accounting firm’s
report and financial statements in the fund’s annual report to shareholders, dated October
31, 2024, are incorporated by reference into this summary prospectus.
Investment Objective: Seeks capital appreciation with current income as a secondary objective.
Fees and Expenses: This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the fund. You
may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.
You may qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in Transamerica Funds.
More information about these and other discounts is available from your financial professional, in the “Waivers and Reductions of Sales Charges” section on page
337 of the fund’s prospectus, in the Appendix – “Waivers and Discounts Available from
Intermediaries,” and in the fund’s statement of additional information (SAI) under the heading “Purchase of Shares” on page
74.
Shareholder Fees (fees paid directly from your investment)
| Class: |
A |
C |
I |
R |
R3 |
| Maximum sales charge (load)
imposed on purchases (as a
percentage of offering price) |
5.50% |
None |
None |
None |
None |
| Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower) |
None1 |
1.00%2 |
None |
None |
None |
1 Class A shares of the fund purchased in amounts of $1 million or more that are not subject to an initial sales charge may be subject to a 1.00% contingent deferred sales charge if those shares are redeemed within 24 months of their purchase. A deferred sales charge may apply to certain redemptions of Class A shares of the fund
purchased through an exchange from another Transamerica Fund.
2 Purchases of Class C shares of the fund may be subject to a 1.00% contingent deferred sales
charge if those shares are redeemed within 12 months of their purchase. A deferred sales charge may apply to certain redemptions of Class C shares of the fund purchased through an exchange from another Transamerica Fund.
Annual Fund Operating
Expenses (expenses that you pay each year as a percentage of the value of your investment)
| Class: |
A |
C |
I |
R |
R3 |
| Management fees |
0.10% |
0.10% |
0.10% |
0.10% |
0.10% |
| Distribution and service
(12b-1) fees |
0.25% |
1.00% |
None |
0.50% |
0.25% |
| Other expenses |
0.13%1 |
0.19%1 |
0.14% |
0.11%1 |
0.19% |
| Acquired fund fees and
expenses2 |
0.65% |
0.65% |
0.65% |
0.65% |
0.65% |
| Total annual fund
operating expenses |
1.13% |
1.94% |
0.89% |
1.36% |
1.19% |
| Fee waiver and/or
expense reimbursement3 |
0.00% |
0.00% |
0.10%4 |
0.00% |
0.19% |
| Total annual fund operating expenses after fee waiver and/or expense reimbursement |
1.13% |
1.94% |
0.79% |
1.36% |
1.00% |
1
Other expenses have been restated to reflect a change in transfer agency fees effective March 1, 2025.
2
Acquired fund fees and expenses reflect the fund’s pro rata share of the fees and expenses incurred
by investing in other investment companies. Acquired fund fees and expenses are not included
in the calculation of the ratios of expenses to average net assets shown in the Financial Highlights section of the fund’s prospectus.
3
Contractual arrangements have been made with the fund’s investment manager,
Transamerica Asset Management, Inc. (“TAM”), through March 1, 2026 to waive fees
and/or reimburse fund expenses to the extent that total annual fund operating expenses exceed 0.52% for Class A shares, 1.32% for Class C shares, 0.29% for Class I shares, 0.76% for Class R shares and 0.35% for Class R3 shares, excluding, as
applicable, acquired fund fees and expenses, interest (including borrowing costs and overdraft charges), taxes, brokerage commissions, dividend and interest expenses on securities sold short, extraordinary expenses and other
expenses not incurred in the ordinary course of the fund’s business. These arrangements cannot be terminated prior to March 1, 2026 without the
Board of Trustees’ consent. TAM is permitted to recapture amounts waived and/or reimbursed to a class during any of the 36 months from the date on which TAM waived fees and/or reimbursed expenses for the class if the class’ total
annual fund operating expenses have fallen to a level below the limits described above. In no case will TAM recapture any amount that would result, on any particular business day of the fund, in the class’ total annual
operating expenses exceeding the applicable limits described above or any other lower limit then in effect.
4
TAM has contractually agreed to reimburse 0.095% of the transfer agency fees on Class I shares through March 1, 2026. This arrangement is not subject to recapture.
Example: This Example is intended to help you compare the cost of investing in the fund with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the fund for the time
periods indicated and then redeem all shares at the end of those periods (unless otherwise indicated). The Example also assumes that your investment has a 5% return each year and that the
fund’s operating expenses remain the same. The Example reflects applicable waivers and/or reimbursements for the duration of such arrangement(s). Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
If the shares are redeemed at the end of each period:
| |
1 year |
3 years |
5 years |
10 years |
| Class A |
$659 |
$889 |
$1,138 |
$1,849 |
| Class C |
$297 |
$609 |
$1,047 |
$2,264 |
| Class I |
$81 |
$274 |
$483 |
$1,087 |
| Class R |
$138 |
$431 |
$745 |
$1,635 |
| Class R3 |
$102 |
$359 |
$636 |
$1,426 |
If the shares are not redeemed:
| |
1 year |
3 years |
5 years |
10 years |
| Class A |
$659 |
$889 |
$1,138 |
$1,849 |
| Class C |
$197 |
$609 |
$1,047 |
$2,264 |
| Class I |
$81 |
$274 |
$483 |
$1,087 |
| Class R |
$138 |
$431 |
$745 |
$1,635 |
| Class R3 |
$102 |
$359 |
$636 |
$1,426 |
Portfolio Turnover: The fund pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when fund shares are held
in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the fund’s performance.
During the most recent fiscal year, the portfolio turnover rate
for the fund was 18% of the average value of its portfolio.
Principal Investment Strategies: The fund is a fund of funds that seeks to achieve its investment objective by investing its assets
primarily in a broad mix of Transamerica Funds (“underlying funds”). The fund’s sub-adviser, Goldman Sachs Asset
Management, L.P. (the “sub-adviser”), follows an investment process that involves longer-term portfolio positioning through strategic asset
allocation and dynamic asset allocation to pursue shorter-term
opportunities based on the sub-adviser’s views of current market
conditions.
•
Under normal circumstances, investments in underlying funds are expected to achieve a mix over time of
approximately 70% of net assets in equities, which may include both stocks and
commodity-related securities, and approximately 30% of net assets in fixed-income
securities, which may include bonds, convertible securities, cash, cash equivalents, and other money market instruments. These percentages may vary.
•
The underlying funds may invest in a variety of U.S. and foreign equity and fixed-income (including high-yield) securities and alternative investments. The
underlying funds may also invest in real estate investment trusts (“REITs”) and
derivatives.
The
sub-adviser develops and implements a strategic asset allocation for the fund. The sub-adviser seeks to budget the fund’s long term investment risk exposure across various risk factors to
establish a diversified strategic asset allocation. An important component of the sub-adviser’s process is allocating risk across
asset classes and strategies to increase diversification and, potentially,
reduce volatility.
The sub-adviser may dynamically adjust the fund’s asset allocation
as part of its investment process in response to certain changes in the markets, the economic cycle and the macroeconomic environment. This
dynamic asset allocation may change the fund’s portfolio positioning based on the sub-adviser’s short- to medium-term market views on dislocations and attractive investment opportunities.
These views may impact the relative weights across asset classes, and the allocation to geographies, sectors and industries, as well as the fund’s duration and sensitivity to inflation.
Allocation of assets among the underlying funds is based on
factors such as diversification, general market views and outlooks, volatility in the equity markets, historical performance, current valuations, and other global
economic factors.
The fund may invest directly in U.S. government securities and/or short-term commercial
paper.
The fund’s investment manager, among other things, oversees and
monitors the sub-adviser and is solely responsible for selecting the underlying funds among which the sub-adviser may allocate the fund’s
assets. After the underlying funds have been selected, the sub-adviser determines which underlying funds it wishes to utilize to allocate the fund’s assets. The sub-adviser is not required to
utilize all of the underlying funds selected by the manager in seeking to
fulfill the fund’s target asset allocation.
The sub-adviser may invest up to 10% of the fund’s net assets in index-based underlying exchange-traded funds (“underlying ETFs”)
that the sub-adviser selects as part of the sub-adviser’s dynamic asset allocation to gain exposure to asset classes, regions, countries,
strategies or sectors that are a part of the sub-adviser’s asset allocation for the fund, but not otherwise accessible through available underlying funds.
The fund may, but is not required to, invest directly in futures contracts
as part of the sub-adviser’s dynamic asset allocation. The use of futures would generally be limited to exchange-traded developed market equity index and U.S. Treasury futures. The fund may also
have exposure to derivatives instruments, such as options, futures or forward contracts and swaps through its investments in the underlying funds and underlying ETFs.
It is not possible to predict the extent to which the fund will
be invested in a particular underlying fund at any time. The fund may be a
significant shareholder in certain underlying funds.
Each underlying fund
and underlying ETF has its own investment objective, principal investment strategies and investment risks. The sub-adviser for each underlying fund and adviser or sub-adviser for
each underlying ETF decides which securities to purchase and sell for that underlying fund or underlying ETF. The fund’s ability to achieve its investment objective depends largely
on the performance of the underlying funds and underlying ETFs.
The “Underlying Funds” section of the prospectus lists the underlying Transamerica Funds currently available for investment by the fund,
provides a summary of their respective investment objectives and principal investment strategies, and identifies certain risks of those funds.
The manager may change the underlying Transamerica Funds, and
the sub-adviser may change the fund’s asset allocation, at any time without notice to shareholders and without shareholder approval.
Principal Risks:
Risk is inherent in all investing. Many factors and risks affect the fund's
performance, including those described below. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate
significantly day to day and over time. You may lose part or all of your investment in the fund or your investment may not perform as well as
other similar investments. The fund, through its investments in underlying funds, is subject to the risks of the underlying funds. The following is a summary description of principal risks (in
alphabetical order after certain key risks) of investing in the fund (either directly or through its investments in underlying funds). Each risk described below may not apply to each underlying fund
and an underlying fund may be subject to additional or different risks than those described below. The relative significance of the key risks below may change over time and you should review each
risk factor carefully. An investment in the fund is not a bank deposit and
is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. You may lose money if you invest in this
fund.
Market – The market prices of the fund’s securities or other assets may go up or down, sometimes
rapidly or unpredictably, due to factors such as economic events, inflation, changes in interest rates, governmental actions or interventions, actions taken by the U.S. Federal Reserve or foreign
central banks, market disruptions caused by tariffs, trade disputes, labor strikes, supply chain disruptions or other factors, political developments, civil unrest, acts of terrorism, armed conflicts, economic
sanctions, countermeasures in response to sanctions, cybersecurity events, investor
sentiment, the global and domestic effects of widespread or local health, weather or
climate events, and other factors that may or may not be related to the issuer of the security or other asset. If the market prices of the fund’s securities and assets fall, the value of your investment in the
fund could go down.
Economies and financial markets throughout the world are increasingly interconnected.
Events or circumstances in one or more countries or regions could be highly disruptive to, and have profound impacts on, global economies or markets. As a result, whether or not the fund invests in
securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the fund’s investments may go down.
The long-term
consequences to the U.S. economy of the continued expansion of U.S. government debt and deficits are not known. Also, raising the ceiling on U.S. government debt and periodic legislation to fund the government
have become increasingly politicized. Any failure to do either could lead to a default on
U.S. government obligations, with unpredictable consequences for the fund’s investments, and generally for economies and markets in the U.S. and elsewhere.
Asset Allocation – The fund’s investment performance is
significantly impacted by the fund’s asset allocation and reallocation from time to
time. The value of your investment may decrease if the sub-adviser’s judgment about the attractiveness, value or market trends affecting a particular asset class, investment style, technique or strategy,
underlying fund or other issuer is incorrect.
Underlying Funds – Because the fund invests its assets in various underlying funds, its ability to achieve its
investment objective depends largely on the performance of the underlying funds in which it
invests. Investing in underlying funds subjects the fund to the risks of investing in the underlying securities or assets held by those underlying funds. Each of the underlying funds in which the fund may invest has its
own investment risks, and those risks can affect the value of the underlying funds' shares and therefore the value of the fund's investments. There can be no assurance that the investment objective
of any underlying fund will be achieved. To the extent that the fund invests more of its
assets in one underlying fund than in another, the fund will have greater exposure to the
risks of that underlying fund. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying funds in which it invests. The “List and Description of Certain Underlying
Funds” section of the fund's prospectus identifies certain risks of each underlying fund.
Equity Securities – Equity securities generally have greater
risk of loss than debt securities. Stock markets are volatile and the value of equity
securities may go up or down, sometimes rapidly and unpredictably. The market price of an equity security may fluctuate based on overall market conditions, such as real or perceived adverse economic or political
conditions or trends, tariffs and trade disruptions, wars, social unrest, inflation, substantial economic downturn or recession, changes in interest rates, or adverse investor sentiment. The market
price of an equity security also may fluctuate based on real or perceived factors affecting a
particular industry or industries or the company itself. If the market prices of the equity
securities owned by the fund fall, the value of your investment in the fund will decline. The fund may lose its entire investment in the equity securities of an issuer. A change in financial condition or other event
affecting a single issuer may adversely impact securities markets as a whole.
Fixed-Income Securities – Risks of fixed-income securities
include credit risk, interest rate risk, counterparty risk, prepayment risk, extension
risk, valuation risk, and liquidity risk. The value of fixed-income securities may go up or down, sometimes rapidly and unpredictably, due to general market conditions, such as real or perceived adverse economic or
political conditions, tariffs and trade disruptions, wars, social unrest, inflation, changes in interest rates, lack of liquidity in the bond markets or adverse investor sentiment. In addition, the value of a
fixed-income security may decline if the issuer or other obligor of the security fails to pay
principal and/or interest, otherwise defaults or has its credit rating
downgraded or is
perceived to be less creditworthy, or the credit quality or value of any underlying assets declines. If the value of fixed-income securities owned by the fund falls, the value of your
investment will go down. The fund may lose its entire investment in the
fixed-income securities of an issuer.
Management – The value of your investment may go down if the investment manager’s or sub-adviser's
judgments and decisions are incorrect or otherwise do not produce the desired results, or
if the investment strategy does not work as intended. You may also suffer losses if there
are imperfections, errors or limitations in the quantitative, analytic or other tools, resources, information and data used, investment techniques applied, or the analyses employed or relied on, by the investment
manager or sub-adviser, if such tools, resources, information or data are used incorrectly or otherwise do not work as intended, or if
the investment manager’s or sub-adviser's investment style is out of favor or otherwise fails to produce the desired results. Any of these things could cause the fund to lose value or its results to
lag relevant benchmarks or other funds with similar objectives.
Active Trading – The fund may engage in active trading of
its portfolio. Active trading will increase transaction costs and could detract from
performance. Active trading may be more pronounced during periods of market volatility and may generate greater amounts of short-term capital gains.
Asset Class Variation – The underlying funds or ETFs invest principally in the securities constituting their asset
class (i.e., equity or fixed-income) or underlying index components. However, an underlying
fund or ETF may vary the percentage of its assets in these securities (subject to any applicable regulatory requirements). Depending upon the percentage of securities in a particular asset class held by the underlying funds or
ETFs at any given time, and the percentage of the fund's assets invested in various underlying funds or ETFs, the fund's actual exposure to the securities in a particular asset class may vary
substantially from its target allocation for that asset class, and this in turn may adversely affect the fund's performance.
Commodities and Commodity-Related Securities –
Commodities and commodity-related businesses or industries are subject to changes and
volatility in commodity prices generally, regulatory, economic and political developments, weather events and natural disasters, tariffs and trade disruptions, and market disruptions. Commodities and commodity-linked
investments may be less liquid than other investments. Commodity-linked investments also
are subject to the credit risk associated with the issuer, and their value may decline
substantially if the issuer’s creditworthiness deteriorates.
Convertible Securities – Convertible securities are subject
to risks associated with both fixed-income and equity securities. For example, if market
interest rates rise, the value of a convertible security typically falls. In addition, a convertible security is subject to the risk that the issuer will not be able to pay interest or dividends when due, and the market value
of the security may change based on the issuer’s actual or perceived creditworthiness. Since the convertible security derives a portion of its value from the underlying common stock, the security is
also subject to the same types of market and issuer-specific risks that apply to the underlying common stock. Convertible securities generally offer lower interest or dividend yields than
non-convertible securities of similar quality.
Counterparty – The fund could lose money if the counterparties
to derivatives, repurchase agreements and/or other financial contracts entered into for the
fund do not fulfill their contractual obligations. In addition, the fund may incur costs and may be hindered or delayed in enforcing its rights against a counterparty. These risks may be greater to the
extent the fund has more contractual exposure to a counterparty.
Credit – If an issuer or other obligor (such as a party
providing insurance or other credit enhancement) of a security held by the fund or a
counterparty to a financial contract with the fund is unable or unwilling to meet its financial obligations, or is downgraded or perceived to be less creditworthy (whether by market participants, ratings agencies, pricing
services or otherwise), or if the value of any underlying assets declines, the value of your
investment will typically decline. A decline may be rapid and/or significant, particularly
in certain market environments. In addition, the fund may incur costs and may be hindered or delayed in enforcing its rights against an issuer, obligor or counterparty.
Currency – The value of a fund’s investments in
securities denominated in foreign currencies increases or decreases as the rates of
exchange between those currencies and the U.S. dollar change. U.S. dollar-denominated securities of foreign issuers may also be affected by currency risk. Currency exchange rates can be volatile and may fluctuate
significantly over short periods of time. Currency conversion costs and currency fluctuations could reduce or eliminate investment gains or add to investment losses. A fund may be unable or may choose not to
hedge its foreign currency exposure or any hedge may not be effective.
Cybersecurity – Cybersecurity incidents, both intentional
and unintentional, may allow an unauthorized party to gain access to fund assets, fund or
shareholder data (including private shareholder information), or proprietary information, cause the fund or its service providers (including, but not limited to, the fund’s investment manager, any
sub-adviser(s), transfer agent, distributor, custodian, fund accounting agent and financial intermediaries) to suffer data breaches, data corruption or loss of operational functionality, or prevent fund investors
from purchasing, redeeming or exchanging shares, receiving distributions or receiving timely
information regarding the fund or their investment in the fund. Cybersecurity incidents may
result in financial losses to the fund and its shareholders, and substantial costs may be incurred in order to prevent or mitigate any future cybersecurity incidents.
Derivatives – The use of derivatives involves a variety of
risks, which may be different from, or greater than, the risks associated with investing in
traditional securities, such as stocks and bonds. Risks of derivatives include leverage risk, liquidity risk, interest rate risk, valuation risk, market risk, counterparty risk and credit risk. Use of derivatives can
increase fund losses, increase costs, reduce opportunities for gains, increase fund volatility, and not produce the result intended. Certain derivatives have the potential for unlimited loss, regardless of
the size of the initial investment. Even a small investment in derivatives can have a disproportionate impact on the fund. Derivatives may be difficult or impossible to sell, unwind or value, and the
counterparty (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may default on its obligations to the fund. In certain cases, the fund may incur costs
and may be hindered or delayed in enforcing its rights against or closing out derivatives instruments
with a counterparty,
which may result in additional losses. Derivatives are also generally subject to the risks applicable to the assets, rates, indices or other indicators underlying the derivative, including
market risk, credit risk, liquidity risk, management risk and valuation risk. Also, suitable derivative transactions may not be available in all
circumstances or at reasonable prices. The value of a derivative may fluctuate more or less than, or otherwise not correlate well with, the underlying assets, rates, indices or other indicators to which
it relates. Using derivatives also subjects the fund to certain operational and legal risks. The fund may segregate cash or other liquid assets to cover the funding of its obligations under derivatives
contracts or make margin payments when it takes positions in derivatives involving obligations to third parties. Rule 18f-4 under the 1940 Act provides a comprehensive regulatory framework for the
use of derivatives by funds and imposes requirements and restrictions on funds using derivatives. Rule 18f-4 could have an adverse impact on the fund’s performance and its ability to
implement its investment strategies and may increase costs related to the fund’s use of derivatives. The rule may affect the availability,
liquidity or performance of derivatives, and may not effectively limit the
risk of loss from derivatives.
Emerging Markets – Investments in securities of issuers located or doing business in emerging markets are subject
to heightened foreign investments risks and may experience rapid and extreme changes in
value. Emerging market countries tend to have less developed and less stable economic, political and legal systems and regulatory and accounting standards, may have policies that restrict investment by foreigners or
that prevent foreign investors such as the fund from withdrawing their money at will, and are
more likely to experience nationalization, expropriation and confiscatory taxation.
Emerging market securities may have low trading volumes and may be or become illiquid. In addition, there may be significant obstacles to obtaining information necessary for investigations into or litigation against
issuers located in or operating in emerging market countries, and shareholders may have limited legal remedies.
Extension – When interest rates rise, payments of
fixed-income securities, including asset- and mortgage-backed securities, may occur more
slowly than anticipated, causing their market prices to decline.
Floating Rate Loans – Floating rate loans are often made to
borrowers whose financial condition is troubled or highly leveraged. These loans frequently
are rated below investment grade and are therefore subject to “High-Yield Debt Securities” risk. There is no public market for floating rate loans and the loans may trade infrequently and be subject to wide
bid/ask spreads. Many floating rate loans are subject to restrictions on resale. Floating rate loans held by the fund may be “covenant lite” loans that contain fewer or less restrictive constraints
on the borrower or other borrower-friendly characteristics and offer fewer protections for lenders. Floating rate loans may have trade settlement periods in excess of seven days, which may result in the fund not
receiving proceeds from the sale of a loan for an extended period. As a result, the fund may be subject to greater “Liquidity” risk than a fund that does not invest in floating rate loans
and the fund may be constrained in its ability
to meet its obligations (including obligations to redeeming shareholders).
The lack of an active trading market may also make it more difficult to value floating rate loans. Rising interest rates can lead to increased default rates as payment obligations increase.
Focused Investing – To the extent the fund invests a
significant portion of its assets in a limited number of countries, regions, sectors,
industries or market segments, in a limited number of issuers, or in issuers in related businesses or that are subject to related operating risks, the fund will be more susceptible to negative events affecting those countries,
regions, sectors, industries, segments or issuers, and the value of its shares may be more volatile than if it invested more widely.
Foreign Investments – Investing in securities of foreign issuers or issuers with significant exposure to foreign
markets involves additional risks. Foreign markets can be less liquid, less regulated, less
transparent and more volatile than U.S. markets. The value of the fund’s foreign investments may decline, sometimes rapidly or unpredictably, because of factors affecting the particular issuer as well as foreign markets and issuers
generally, such as unfavorable government actions, including nationalization, expropriation or confiscatory taxation, reduction of government or central bank support, tariffs and trade disruptions,
sanctions, political or financial instability, social unrest or other adverse economic or political developments. Foreign investments may also be subject to different accounting practices and different
regulatory, legal, auditing, financial reporting and recordkeeping standards and practices,
and may be more difficult to value than investments in U.S. issuers. Certain foreign
clearance and settlement procedures may result in an inability to execute transactions or delays in settlement.
Growth Stocks
– Returns on growth stocks may not move in tandem with returns on other categories of
stocks or the market as a whole. Growth stocks typically are particularly sensitive to
market movements and may involve larger price swings because their market prices tend to
reflect future expectations. When it appears those expectations may not be met, the prices of growth stocks typically fall. Growth stocks may also be more volatile because they often do not pay dividends.
The values of growth stocks tend to go down when interest rates rise because the rise in
interest rates reduces the current value of future cash flows. Growth stocks as a group may be out of favor and underperform the overall equity market for a long period of time, for example, while the market favors
“value” stocks.
High-Yield Debt Securities – High-yield debt securities, commonly referred to as “junk” bonds, are securities
that are rated below “investment grade” or are of comparable quality. Changes
in interest rates, the market’s perception of the issuers, the creditworthiness of
the issuers and negative perceptions of the junk bond market generally may significantly affect the value of these bonds. Junk bonds are considered speculative, tend to be volatile, typically have a higher risk of default,
tend to be less liquid and more difficult to value than higher grade securities, and may result in losses for the fund.
Inflation – The value of assets or income from investment may be worth less in the future as inflation decreases the
value of money. As inflation increases, the real value of the fund’s assets can
decline as can the value of the fund’s distributions.
Interest
Rate –The value of fixed-income securities generally goes down when interest rates
rise. A rise in rates tends to have a greater impact on the prices of longer term or duration securities. Changes in interest rates also may affect the liquidity of the fund’s investments. A variety of
factors can impact interest rates, including central bank monetary policies and inflation rates. A general rise in interest rates may cause investors to sell fixed-income securities on a large scale, which could
adversely affect the price and liquidity of fixed-income securities generally and could also result in increased redemptions from the fund. Increased redemptions could cause the fund to sell securities at
inopportune times or depressed prices and result in further losses. Recently, inflation and interest rates have been volatile and may increase in the future. Interest rate increases in the future may cause
the value of fixed-income securities to decrease and, conversely, interest rate reductions may cause the value of fixed-income securities to increase.
Large Shareholder – A significant portion of the fund’s shares may be owned by one or more investment vehicles or institutional investors. Transactions by these
large shareholders may be disruptive to the management of the fund. For example, the fund
may experience large redemptions and could be required to sell securities at a time when it may not otherwise desire to do so. Such transactions may increase the fund’s brokerage and/or other transaction costs. These
transactions may also accelerate the realization of taxable capital gains to shareholders. In addition, sizeable redemptions could cause the fund’s total expenses to increase.
Leveraging – To the extent that the fund borrows or uses
derivatives or other investments, such as ETFs, that have embedded leverage, your
investment may be subject to heightened volatility, risk of loss and costs. Other risks also will be compounded because leverage generally magnifies the effect of a change in the value of an asset and creates a risk of loss
of value on a larger pool of assets than the fund would otherwise have. Use of leverage may
result in the loss of a substantial amount, and possibly all, of the fund’s assets.
The fund also may have to sell assets at inopportune times to satisfy its obligations.
Liquidity – The fund may make investments that are illiquid
or that become illiquid after purchase. Illiquid investments can be difficult to value, may
trade at a discount from comparable, more liquid investments, and may be subject to wide fluctuations in value. Liquidity risk may be magnified in rising interest rate or volatile environments. If the fund is
forced to sell an illiquid investment to meet redemption requests or other cash needs, the fund may be forced to sell at a substantial loss or may not be able to sell at all. Liquidity of particular
investments, or even entire asset classes, including U.S. Treasury securities, can deteriorate rapidly, particularly during times of market turmoil, and those investments may be difficult or impossible for
the fund to sell. This may prevent the fund from limiting losses.
Loans – Loans are subject to the credit risk of nonpayment
of principal or interest. Economic downturns or increases in interest rates may cause an
increase in defaults, interest rate risk and liquidity risk. Loans may or may not be collateralized at the time of acquisition, and any collateral may be relatively illiquid or lose all or substantially all of its value subsequent
to investment. The fund's investments in loans are also subject to prepayment or call risk.
Prepayment or Call – Many issuers have a right to prepay
their fixed-income securities. If this happens, the fund will not benefit from the rise in
the market price of the securities that normally accompanies a decline in interest rates and may be forced to reinvest the prepayment proceeds in securities with lower yields.
Real Estate Securities – Investments in the real estate
industry are subject to risks associated with direct investment in real estate. These risks
include declines in the value of real estate, adverse general and local economic conditions, increased competition, overbuilding and changes in laws and regulations affecting real estate, operating expenses, property
taxes and interest rates. If the fund’s real estate-related investments are concentrated in one geographic area or one property type, the fund will also be subject to the risks associated with that one area or
property type. The value of the fund’s real estate-related securities will not necessarily track the value of the underlying investments of the issuers of such securities.
REITs – Investing in real estate investment trusts
(“REITs”) involves unique risks. When the fund invests in REITs, it is subject
to risks generally associated with investing in real estate. A REIT’s performance
depends on the types and locations of the properties it owns, how well it manages those properties and cash flow. REITs may have limited financial resources, may trade less frequently and in limited volume, may engage in
dilutive offerings, and may be subject to more abrupt or erratic price movements than the
overall securities markets. In addition to its own expenses, the fund will indirectly bear
its proportionate share of any management and other expenses paid by REITs in which it invests. U.S. REITs are subject to a number of highly technical tax-related rules and requirements; and a U.S. REIT’s
failure to qualify for the favorable U.S. federal income tax treatment generally available to U.S. REITs could result in corporate-level taxation, significantly reducing the return on an investment to the
fund.
Structure Conflicts – Transamerica Asset Management, Inc. (“TAM”), the fund’s investment manager,
has established an investment program whereby a substantial portion of the fund’s assets are invested in underlying Transamerica funds. TAM does not consider unaffiliated funds as underlying
investment options for these assets, even if unaffiliated funds have better investment
performance or lower total expenses.
Underlying Exchange-Traded Funds – To the extent the fund invests its assets in underlying ETFs, its ability to achieve its investment objective will depend in part on the performance of the underlying ETFs in which it invests.
Investing in underlying ETFs subjects the fund to the risks of investing in the underlying securities or assets held by those ETFs. Each of the underlying ETFs in which the fund may invest has its own
investment risks, and those risks can affect the value of the underlying ETFs’ shares and therefore the value of the fund's investments. There can be no assurance that the investment objective
of any underlying ETF will be achieved. To the extent that the fund invests more of its
assets in one underlying ETF than in another, the fund will have greater exposure to the
risks of that underlying ETF. In addition, the fund will bear a pro rata portion of the operating expenses of the underlying ETFs in which it invests.
U.S. Government Securities – U.S. government securities are subject to market risk, interest rate risk and credit risk.
Securities backed by the Treasury or the full faith and credit of the U.S.
government are
guaranteed only as to the timely payment of interest and principal when held to maturity. Accordingly, the current market values for these securities will fluctuate with changes in interest
rates and the financial condition or credit rating of the U.S. government. Notwithstanding that these securities are backed by the full faith and credit of the U.S. government, circumstances could
arise that would prevent the payment of interest or principal. Securities issued by U.S. government-sponsored entities and federal agencies and instrumentalities that are not backed by the full faith and
credit of the U.S. government are neither issued nor guaranteed by the U.S. government.
Valuation – Certain investments may be more difficult to
value than other types of investments. The sales price the fund could receive for any
particular portfolio investment may differ from the fund's valuation of the investment, particularly for securities that trade in thin or volatile markets, that are priced based upon valuations provided by third party
pricing services, or that are valued using a fair value methodology. These differences may
increase significantly and affect fund investments more broadly during periods of market
volatility. Investors who purchase or redeem fund shares on days when the fund is holding fair-valued securities may receive fewer or more shares or lower or higher redemption proceeds than they would have
received if the fund had not fair-valued securities or had used a different valuation
methodology. The fund’s ability to value its investments may also be impacted by
technological issues and/or errors by pricing services or other third party service providers. Fair value pricing involves subjective judgment, which may prove to be incorrect.
Value Investing – The prices of securities the sub-adviser
believes are undervalued may not appreciate as anticipated or may go down. The value
approach to investing involves the risk that stocks may remain undervalued, undervaluation may become more severe, or perceived undervaluation may actually represent intrinsic value. Value stocks as a group may
be out of favor and underperform the overall equity market for a long period of time, for example, while the market favors “growth” stocks.
Performance: The bar chart and the table below provide some indication of the risks of investing in
the fund. The bar chart shows how the fund’s performance has varied from year to year. The table shows how the fund’s average annual total returns for different
periods compare to the returns of a broad measure of market performance, as well as comparison to one or more secondary indices.
The bar chart does not reflect the impact of sales
charges, which, if reflected, would lower the returns.
The table includes deduction of applicable sales charges.
Absent any applicable fee waivers and/or expense limitations, performance would be lower.
As with all mutual funds, past
performance (before and after taxes) is not a prediction of future results.
Updated performance information is available on our website at
www.transamerica.com/investments-fund-center or by calling 1-888-233-4339.
Prior to August 28, 2020, the fund had a portfolio construction manager and used different investment strategies. The performance set
forth prior to that date is attributable to the previous portfolio construction manager.
Annual Total Returns (calendar years ended December 31) - Class A
| |
Quarter Ended |
Return |
| Best Quarter: |
6/30/2020 |
18.73% |
| Worst Quarter: |
3/31/2020 |
-17.65% |
Average Annual Total Returns (periods ended December 31, 2024)
| |
1 Year |
5 Years |
10 Years |
Since
Inception |
Inception Date |
| Class A |
|
|
|
|
3/1/2002 |
| Return before taxes |
6.92% |
5.88% |
5.88% |
|
|
| Return after taxes on
distributions |
5.11% |
4.50% |
4.05% |
|
|
| Return after taxes on
distributions and sale
of fund shares |
4.92% |
4.35% |
4.21% |
|
|
| Class C (Return before
taxes only) |
11.22% |
6.23% |
5.67% |
|
11/11/2002 |
| Class I (Return before
taxes only) |
13.52% |
7.46% |
6.81% |
|
11/30/2009 |
| Class R (Return before
taxes only) |
13.06% |
6.82% |
6.22% |
|
6/15/2006 |
| Class R3 (Return before
taxes only) |
13.22% |
N/A |
N/A |
6.03% |
3/1/2022 |
| MSCI World Index
(reflects no deduction
for fees, expenses or
taxes, except foreign
withholding taxes) |
18.67% |
11.17% |
9.95% |
|
|
| Transamerica Asset Allocation – Moderate Growth Portfolio Blended Benchmark1 |
13.23% |
7.87% |
7.98% |
|
|
1 The fund’s secondary benchmark, the Transamerica Asset Allocation – Moderate
Growth Portfolio Blended Benchmark, consists of 30% Bloomberg US Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) and 70% MSCI
World Index (reflects no deduction for fees, expenses or taxes, except foreign
withholding taxes).
The total return information for Class C and Class I shares of the fund
reflects the impact of certain payments by Transamerica to the class in
2022.
The after-tax returns are calculated using the historic highest individual
federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns may depend on the investor’s individual tax situation and
may differ from those shown. After-tax returns may not be relevant if the investment is made through a tax-exempt or tax-deferred account, such as a 401(k) plan.
After-tax returns are presented for only one class, and returns for other classes are presented before taxes only and will vary.
Management:
| Investment Manager: Transamerica Asset Management, Inc. Sub-Adviser: Goldman Sachs Asset Management,
L.P. Portfolio Managers: | ||
| Neill Nuttall1 |
Portfolio Manager |
since August 2020 |
| Alexandra Wilson-Elizondo |
Portfolio Manager |
since January 2022 |
| Siwen Wu |
Portfolio Manager |
since March 2024 |
1 Effective July 1, 2025, Mr. Nuttall will no longer serve as
a Portfolio Manager of the fund.
Purchase and Sale of Fund Shares: You may purchase, exchange or redeem shares of the fund on any day the New York Stock Exchange is
open for business, online or through our website at www.transamerica.com, by mail to Transamerica Fund Services, Inc., P.O. Box 219945, Kansas City, MO 64121-9945, by telephone at
1-888-233-4339, by overnight mail to Transamerica Fund Services, Inc., 801 Pennsylvania Avenue, Suite 219945, Kansas City, MO 64105-1307 or through a financial intermediary. The minimum
initial purchase for Class A and C shares is $1,000; the minimum subsequent investment is $50. The minimum initial purchase for payroll deduction and automatic investment plan is $500; the
minimum subsequent investment is $50 per monthly fund account investment. The minimum investment for Class I shares is $1,000,000. There is no minimum investment for eligible plans investing in
Class R or Class R3 shares.
Class R
shares are intended for purchase by participants in certain retirement plans such as 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans, defined-benefit
plans and non-qualified deferred compensation plans (eligible retirement plans), and under the following conditions: Class R shares are available only when a plan’s recordkeeper or
financial service firm serving as an intermediary has an agreement with Transamerica Funds, and in such eligible retirement plans where Class R shares are held on the books of the funds through
omnibus or Network Level 3 accounts (either at the plan level or at the level of the financial service firm serving as an intermediary).
Class R3 shares are intended for purchase by participants in certain
retirement plans such as 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase plans, defined-benefit
plans and non-qualified deferred compensation plans (eligible plans) and IRAs, and under the following conditions: Class R3 shares are available only when a plan’s recordkeeper or
financial service firm serving as an intermediary has an agreement with Transamerica Funds. Class R3 shares are available when rolling assets into an IRA, under certain conditions.
Tax Information: Fund distributions may be taxable as ordinary income, qualified dividend income, or capital gains, except when your
investment is in an IRA, 401(k) or other tax-advantaged investment plan. In that case, you may be taxed when you take a distribution from such plan, depending on the type of plan, the circumstances of your
distribution and other factors.
Payments to Broker-Dealers and Other Financial Intermediaries: If you purchase the fund through a broker-dealer or other financial intermediary, the
fund and/or its affiliates may pay the intermediary for the sale of fund shares and related services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the fund over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
In an effort to reduce paper mailings and conserve natural resources, we encourage you to visit our website, www.transamerica.com, to set up an account and enroll in eDelivery.
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