Transamerica Long Credit
Summary Prospectus March 1, 2025, as revised April 4, 2025
| Class A (TLCDX) |
Class C (TLCFX) |
Class I (TLCJX) |
Class R6 (TLCKX) |
|
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 www.transamerica.com. 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 to provide total return through a combination of current income and capital appreciation.
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 |
R6 |
| Maximum sales charge (load) imposed
on purchases (as a percentage of
offering price) |
4.75% |
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 |
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 |
R6 |
| Management fees |
0.45% |
0.45% |
0.45% |
0.45% |
| Distribution and service (12b-1) fees |
0.25% |
1.00% |
None |
None |
| Other expenses1
|
0.08% |
0.05% |
0.20% |
0.06% |
| Class: |
A |
C |
I |
R6 |
| Recaptured expense2 |
0.00% |
0.00% |
0.05% |
0.00% |
| All other expenses |
0.08% |
0.05% |
0.15% |
0.06% |
| Total annual fund operating expenses |
0.78% |
1.50% |
0.65% |
0.51% |
1
Other expenses are based on estimates for the current fiscal year.
2
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 1.01% for Class A shares, 1.78% for Class C shares, 0.65% for Class I shares and 0.58% for Class R6 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.
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 |
$551 |
$712 |
$888 |
$1,395 |
| Class C |
$253 |
$474 |
$818 |
$1,791 |
| Class I |
$66 |
$208 |
$362 |
$810 |
| Class R6 |
$52 |
$164 |
$285 |
$640 |
If the shares are not redeemed:
| |
1 year |
3 years |
5 years |
10 years |
| Class A |
$551 |
$712 |
$888 |
$1,395 |
| Class C |
$153 |
$474 |
$818 |
$1,791 |
| Class I |
$66 |
$208 |
$362 |
$810 |
| Class R6 |
$52 |
$164 |
$285 |
$640 |
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 48% of the average value of its portfolio.
Principal Investment Strategies: The fund’s sub-adviser, Aegon USA Investment Management, LLC (the “sub-adviser”), seeks to
achieve the fund’s objective by investing, under normal circumstances, primarily in investment grade debt securities, which may include:
investment grade corporate securities, U.S. government obligations, mortgage-backed securities guaranteed by U.S. government agencies and instrumentalities, and private residential mortgage-backed
securities. Under normal circumstances, the fund invests at least 80% of its net assets (plus the amount of borrowings, if any, for investment purposes) in fixed-income securities. The
fund’s portfolio weighted average duration will normally be more than 10 years. Duration is a measure used to determine the sensitivity of a security’s price to changes in interest rates. The
longer a security’s duration, the more sensitive it will be to changes
in interest rates.
Under normal circumstances, the fund’s portfolio will have a dollar-weighted average credit rating of investment grade. Investment grade debt
securities carry a rating of at least BBB from Standard & Poor’s or Fitch or Baa from Moody’s or are of comparable quality as determined by the sub-adviser. The fund may invest in securities of any
maturity.
The fund may also invest in U.S. Treasury and agency securities, municipal
bonds, asset-backed securities (including collateralized loan obligations (“CLOs”), collateralized bond obligations (“CBOs”)
and collateralized debt obligations (“CDOs”)), commercial mortgage-backed securities (“CMBS”), high quality short-term debt obligations
and repurchase agreements. The fund’s investments may include debt securities of foreign issuers, including emerging market debt securities. The fund may invest in securities that are
denominated in U.S. dollars and in foreign currencies. The fund
may invest up to 15% of its net assets in emerging market debt
securities. The sub-adviser considers emerging markets countries as countries that major international financial institutions, such as the
World Bank, generally consider to be less economically mature than developed nations. The fund may invest up to 10% of its net assets in high-yield debt securities (commonly referred to as
“junk bonds”). Junk bonds are high-risk debt securities rated below investment grade (that is, securities rated below BBB by Standard & Poor’s or Fitch or below Baa by Moody’s or, if unrated,
determined to be of comparable quality by the sub-adviser).
The
sub-adviser uses a combination of a global “top-down” analysis of the macroeconomic and interest rate environment and proprietary “bottom-up” research of corporate, government and agency
debt, and other debt instruments. In the sub-adviser’s “top-down” approach, the sub-adviser analyzes various fundamental, technical,
sentiment and valuation factors that affect the movements of markets and securities prices worldwide. In its proprietary “bottom-up”
research, the sub-adviser considers various fundamental and other factors, such as creditworthiness, capital structure, covenants, cash
flows and, as applicable, collateral. The sub-adviser uses this
combined “top-down” and “bottom-up” approach to determine asset class, sector, security, yield curve, and duration positions for the
fund. The sub-adviser’s research analysts also generally integrate environmental, social and governance (“ESG”) matters within their
analytical process for investment grade corporate debt securities (including emerging markets), foreign government bonds and notes
(including emerging markets), private residential mortgage-backed securities, certain asset-backed securities (including CLOs, CBOs and CDOs), CMBS, certain cash equivalents (including corporate
commercial paper) and privately issued debt securities issued pursuant to Rule 144A or Regulation S alongside traditional credit metrics as a risk management tool and as a method to identify
financially material ESG factors and arrive at an independent,
comprehensive view of the investment. The sub-adviser’s research analysts typically do not consider ESG factors when analyzing other
investments, including, but not limited to, investments in U.S. government obligations, mortgage-backed securities guaranteed by U.S. government agencies and instrumentalities, U.S. Treasury and
agency securities, municipal bonds, asset-backed commercial paper, repurchase agreements, cash, certain cash equivalent securities and money market instruments. Consideration of ESG matters is
subjective and not determinative in the sub-adviser’s investment process. The sub-adviser may conclude that other attributes of an investment outweigh ESG considerations when making
investment decisions. The sub-adviser’s research analysts do not take ESG factors into consideration with respect to every investment in the fund.
The fund may purchase securities on a when-issued, delayed delivery, to be announced or
forward commitment basis.
The fund may invest
in privately issued securities, including those that are normally purchased pursuant to Rule 144A or Regulation S promulgated under the Securities Act of 1933, as amended.
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 following is a summary description of principal risks (in alphabetical order after certain key risks) of investing in the fund. 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.
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.
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.
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.
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.
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.
Mortgage-Related and Asset-Backed Securities – The value of mortgage-related and asset-backed securities will be influenced by factors affecting the housing
market and the assets underlying such securities. As a result, during periods of declining asset values, difficult or frozen credit markets, swings in interest rates, or deteriorating economic conditions,
mortgage-related and asset-backed securities may decline in value, face valuation difficulties, become more volatile and/or become illiquid, which could negatively impact the fund. Mortgage-backed securities
represent direct or indirect participations in, or are collateralized by and payable from, mortgage loans secured by real property. Asset-backed securities represent participations in, or are secured by
and payable from, assets such as installment sales or loan contracts, leases, credit card receivables and other categories of receivables. The value of mortgage-backed and asset-backed securities may be
affected by changes in credit quality or value of the mortgage loans or other assets that support the securities. Mortgage-backed and asset-backed securities are subject to prepayment or call and
extension risks. Some of these securities may receive little or no collateral protection from the underlying assets.
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.
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.
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.
Municipal Securities – The municipal bond market can be susceptible to unusual volatility, particularly for lower-rated and unrated securities. Liquidity can be
reduced unpredictably in response to overall economic conditions or credit tightening.
Municipal issuers may be adversely affected by rising health care costs, increasing
unfunded pension liabilities, and by the phasing out of federal programs providing financial support. The value of municipal securities can also be adversely affected by changes in the financial condition of one or more
individual municipal issuers or insurers of municipal issuers, regulatory and political developments, tax law changes or other legislative actions, and by uncertainties and public perceptions concerning
these and other factors. To the extent the fund invests significantly in a single state or in
securities the payments on which are dependent upon a single project or source of revenue,
or that relate to a sector or industry, the fund will be more susceptible to associated risks and developments. Municipal issuers may be more susceptible to downgrades or defaults during recessions or similar
periods of economic stress. A number of municipal issuers have defaulted on obligations,
commenced insolvency proceedings, or suffered credit downgrading. Financial difficulties of municipal issuers may continue or worsen.
Investment in municipal securities of issuers in Guam, Puerto Rico, the U.S. Virgin
Islands, or other U.S. territories, may have more risks than tax-exempt securities issued by other issuers due to the political, social and/or economic conditions in the particular territory.
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.
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.
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.
Distressed or Defaulted Securities – Investments in defaulted securities and obligations of distressed issuers, including securities that are, or may be, involved in reorganizations or other financial restructurings, either out of court
or in bankruptcy, involve substantial risks in addition to the risks of investing in high-yield debt securities. These securities are considered speculative with respect to the issuers’ continuing
ability to make principal and interest payments. The fund may incur costs to protect its investment, and the fund could lose its entire investment. Distressed securities and any securities received in an
exchange for such securities may be subject to restrictions on resale.
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.
Inflation-Protected Securities –
Inflation-protected debt securities may react differently from other types of debt
securities and tend to react to changes in “real” interest rates, which represent
nominal (stated) interest rates reduced by the expected impact of inflation. In general,
the price of an inflation-protected debt security can fall when real interest rates rise, and can rise when real interest rates fall. Interest payments on inflation-protected debt securities can be unpredictable and will vary
as the principal and/or interest is adjusted for inflation.
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.
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.
Privately Placed and Other Restricted Securities – Restricted
securities, which include private placements of private and public companies, are subject
to legal or contractual restrictions on their resale. Restricted securities may be difficult to sell at the time and price a fund prefers. Restricted securities may be difficult to value properly and may involve greater
risks than securities that are not subject to restrictions on resale, both of which may result in substantial losses. An insufficient number of eligible buyers interested in purchasing restricted securities held
by a fund could adversely affect the marketability of such securities and a fund might be
unable to dispose of such securities promptly or at reasonable prices, adversely affecting
a fund’s overall liquidity and performance. Restricted securities may not be listed on an exchange and may have no active trading market. A fund may incur additional
expense when disposing of restricted securities. Restricted securities may involve a high degree of business and financial risk and may result in substantial
losses to the fund.
Repurchase Agreements – In a repurchase agreement, the fund purchases securities from a broker-dealer or a bank, called the counterparty, upon the agreement of the counterparty to repurchase the securities from the fund at a
later date, and at a specified price. The securities purchased serve as the fund's collateral for the obligation of the counterparty to repurchase the securities. If the counterparty does not repurchase
the securities, the fund is entitled to sell the securities, but the fund may not be able to sell them for the price at which they were purchased, thus causing a loss. If the counterparty becomes
insolvent, there is some risk that the fund will not have a right to the securities, or the immediate right to sell the securities.
Sovereign Debt – Sovereign debt instruments are subject to
the risk that the governmental entity may delay or fail to pay interest or repay principal
on its sovereign debt. If a governmental entity defaults, it may ask for more time in which to pay or for further loans, or the debt may be restructured. There may be no established legal process for collecting
sovereign debt that a government does not pay, nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.
Sustainability and/or Environmental, Social and Governance (“ESG”) Considerations – The sub-adviser considers sustainability and/or ESG factors that it deems relevant, along with other factors and analysis, when
sub-advising the fund. This usage of sustainability and/or ESG factors or criteria is sometimes referred to as “ESG integration.” The sub-adviser may consider sustainability and/or ESG factors on a
meaningful portion of the fund’s investments. The sub-adviser may give little or no weight to sustainability and/or ESG factors for certain investments, and not every sustainability and/or ESG factor may be
identified or evaluated for every investment. Consideration of sustainability and/or ESG factors is not determinative in the sub-adviser’s investment process, and the sub-adviser may conclude that other
attributes of an investment outweigh sustainability and/or ESG considerations when making
investment decisions. Applying sustainability and/or ESG factors as part of the
fund’s security selection process may impact the sub-adviser’s investment decisions and may affect the fund’s exposure to risks associated with certain issuers, asset classes, industries and sectors. Sustainability
and ESG factors are not uniformly defined and applying such factors involves subjective
assessments. Sustainability and ESG ratings and assessments of issuers can vary across
investment advisers (including sub-advisers) and third party data providers and may change over time. Sustainability and ESG factors can be difficult to apply consistently across issuers, regions, countries, industries
and sectors. The application of these factors could negatively impact the fund’s performance. Sustainability and ESG information from issuers and from third party data providers may be incomplete, delayed,
inaccurate or unavailable, which could lead to an incorrect assessment of a company’s
sustainability or ESG characteristics. Regulation of sustainability and ESG investing in
the U.S. and abroad is evolving. Regulatory changes with respect to ESG integration could impact the sub-adviser’s ability to consider sustainability and/or ESG criteria as part of its investment process.
To
Be Announced (TBA) Transactions – Although the securities that are delivered in TBA
transactions must meet certain standards, there is a risk that the actual securities received by the fund may be less favorable than what was anticipated when entering into the transaction. TBA
transactions also involve the risk that a counterparty will fail to deliver the security, exposing the fund to further losses.
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.
Warrants and Rights – Warrants and rights may be
considered more speculative than certain other types of investments because they do not
entitle a holder to the dividends or voting rights for the securities that may be purchased, and they do not represent any rights in the assets of the issuing company. If the price of the stock to which the
warrant or right relates does not rise above the exercise price or the warrant or right otherwise is not exercised before the expiration date, it generally expires without any value and the fund will lose
any amount it paid for the warrant or right.
Yield – The amount of income received by the fund will go
up or down depending on day-to-day variations in short-term interest rates, and the
fund’s expenses could absorb all or a significant portion of the fund’s income. If interest rates increase, the fund’s yield may not increase proportionately.
Performance: The bar chart and the table below provide some indication of the risks of investing in
the fund. The bar chart shows the fund’s performance for the past calendar 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.
Annual Total Returns (calendar year ended December 31) - Class A
| |
Quarter Ended |
Return |
| Best Quarter: |
9/30/2024 |
7.14% |
| Worst Quarter: |
12/31/2024 |
-6.11% |
Average Annual Total Returns (periods ended December 31, 2024)
| |
1 Year |
Since
Inception |
Inception Date |
| Class A |
|
|
4/1/2023 |
| Return before taxes |
-7.07% |
-2.15% |
|
| Return after taxes on distributions |
-8.95% |
-4.05% |
|
| Return after taxes on distributions and sale
of fund shares |
-4.18%1 |
-2.42% |
|
| Class I (Return before taxes only) |
-2.38% |
0.80% |
4/1/2023 |
| Bloomberg US Universal Bond Index2
(reflects no deduction for fees, expenses or
taxes) |
2.04% |
2.96% |
4/1/2023 |
| Bloomberg U.S. Long Credit Index (reflects no deduction for fees, expenses or taxes) |
-2.01% |
1.66% |
4/1/2023 |
1 In certain cases, returns after taxes on distributions and/or returns after taxes on
distributions and sale of fund shares are higher than returns before taxes for the period shown because they reflect certain tax benefits.
2 The Bloomberg US Universal Bond Index became the fund’s primary benchmark on June 3,
2024. Prior to June 3, 2024, the fund’s primary benchmark was the
Bloomberg U.S. Long Credit Index, and that index is now a secondary index for the fund. The new primary benchmark represents a broad measure of market performance and was added to comply with new regulatory requirements.
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: Aegon USA Investment Management, LLC Portfolio Managers: | ||
| Bradley D. Doyle, CFA* |
Portfolio Manager |
since March 2023 |
| Norbert King |
Portfolio Manager |
since December 2023 |
| Sivakumar N. Rajan |
Portfolio Manager |
since March 2023 |
* Effective July 1, 2025, Mr. Doyle 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.
Class R6 shares are intended for purchase by certain
Transamerica-sponsored asset allocation funds, as well as participants in certain eligible accounts such as 401(k) plans, 457 plans, employer-sponsored
403(b) plans, profit sharing and money purchase plans, defined-benefit plans, non-qualified deferred compensation plans, IRAs and participants in certain health savings plans and health savings
accounts under Section 223 of the Internal Revenue Code (eligible plans). For applicable plans, Class R6 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 plans where Class R6 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).
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 plans 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 R6 shares.
The fund does not currently offer Class C
and Class R6 shares.
Tax
Information: Fund distributions may be taxable as ordinary 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.
MSPA0325LC-A