Transamerica Multi-Managed Balanced
Summary Prospectus March 1, 2025, as revised April 4, 2025
| Class
A (IBALX) |
Class
C (IBLLX) |
Class
I (TBLIX) |
|
Class R6
(TAMMX) |
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 to provide a high total investment return through investments in a broadly diversified portfolio of stocks, bonds and money
market instruments.
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) |
5.50% |
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 before September 1, 2024 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. Class A shares of the fund purchased on or after
September 1, 2024 in amounts of $250,000 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 18 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 |
0.59% |
0.59% |
0.59% |
0.59% |
| Distribution and service (12b-1)
fees |
0.25% |
1.00% |
None |
None |
| Other expenses |
0.13%1 |
0.13%1 |
0.15% |
0.06% |
| Total annual fund operating expenses |
0.97% |
1.72% |
0.74% |
0.65% |
1
Other expenses have been restated to reflect a change in transfer agency fees effective March 1, 2025.
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. 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 |
$644 |
$842 |
$1,057 |
$1,674 |
| Class C |
$275 |
$542 |
$933 |
$2,030 |
| Class I |
$76 |
$237 |
$411 |
$918 |
| Class R6 |
$66 |
$208 |
$362 |
$810 |
If the shares are not redeemed:
| |
1 year |
3 years |
5 years |
10 years |
| Class A |
$644 |
$842 |
$1,057 |
$1,674 |
| Class C |
$175 |
$542 |
$933 |
$2,030 |
| Class I |
$76 |
$237 |
$411 |
$918 |
| Class R6 |
$66 |
$208 |
$362 |
$810 |
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 41% of the average value of its portfolio.
Principal Investment Strategies: Under normal circumstances, the fund invests approximately 60% of its net assets in equity securities
and approximately 40% of its net assets in fixed-income securities (investing at least 25% of its net assets in fixed-income senior securities being those securities that rank above another security
in the event of the company’s bankruptcy or liquidation). The fund has two sub-advisers. J.P. Morgan Investment Management Inc. (the “equity sub-adviser”) manages the equity component
of the fund and Aegon USA Investment Management, LLC (the
“fixed-income sub-adviser”) manages the fixed-income component of the fund. The fund's investment manager, Transamerica Asset Management,
Inc., monitors the allocation of the fund's assets between the equity sub-adviser and the fixed-income sub-adviser and rebalances the allocation periodically to maintain these approximate
allocations.
Each sub-adviser varies the
percentage of assets invested in any one type of security in accordance with its interpretation of economic and market conditions, fiscal and monetary policy, and underlying securities
values.
Equity component – The equity sub-adviser seeks to achieve the
fund's objective by investing, under normal circumstances, at least 80% of the equity component’s net assets in equity securities of
large- and medium-capitalization U.S. companies. The fund may
invest in foreign companies. The equity sub-adviser will normally keep the equity component as fully invested in equity securities as
practicable. Industry by industry, the fund's weightings are generally similar to those of the S&P 500® Index. The equity sub-adviser normally does not look to overweight or underweight
industries. Holdings by industry sector will normally approximate those of the S&P 500® Index. The equity sub-adviser may, but is not required to, use index futures to equitize
cash in order to gain general equity market exposure.
As part of its investment process, the equity sub-adviser seeks to assess the impact of environmental, social and governance (“ESG”) factors on many issuers in the universe in which the fund invests. The
equity sub-adviser’s assessment is based on an analysis of what it views as key opportunities and risks across industries to seek to identify financially material issues with respect to the
fund’s investments in securities and ascertain key issues that merit engagement with issuers. These assessments may not be conclusive and
securities of issuers may be purchased and retained by the fund for reasons other than material ESG factors while the fund may divest or not invest in securities of issuers that may be positively impacted by such
factors.
Fixed-income component – Under normal circumstances, the fixed-income component of the fund is invested primarily in investment
grade debt securities, which may include: investment grade corporate debt securities, U.S. government obligations, mortgage-backed securities guaranteed by U.S. government agencies and
instrumentalities, and
private residential mortgage-backed securities. 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 fixed-income sub-adviser. The fixed-income component’s portfolio weighted average duration will typically range from 3 to 10 years.
The fixed-income sub-adviser may also invest the fund's assets
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, dollar rolls and repurchase agreements. The fixed-income sub-adviser’s
investments for the fund may include debt securities of foreign issuers, including emerging market debt securities. The fixed-income sub-adviser
may invest the fund's assets in securities that are denominated in U.S. dollars and in foreign currencies.
The fund may invest up to 10% of the fixed-income
component’s net assets in emerging market debt securities and up to 10% of the fixed-income component’s net assets in high-yield debt securities
(commonly referred to as “junk bonds”), but may invest no more than 15% of the fixed-income component’s net assets in emerging
market debt securities and high-yield debt securities combined.
The fixed-income sub-adviser considers emerging market countries as countries that major international financial institutions, such as the
World Bank, generally consider to be less economically mature than developed nations. 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 fund’s
sub-adviser).
In managing the fund’s fixed-income component, the
fixed-income 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 and government debt, and other debt instruments. In the fixed-income sub-adviser’s
“top-down” approach, the fixed-income sub-adviser analyzes various fundamental, technical, sentiment and valuation factors that affect the
movement of markets and securities prices worldwide. In its proprietary “bottom-up” research, the fixed-income sub-adviser considers various fundamental and other factors, such as creditworthiness,
capital structure, covenants, cash flows and, as applicable, collateral. The fixed-income sub-adviser uses this combined “top-down” and “bottom-up” approach to determine sector, security, yield curve positioning, and duration positions for the fixed-income
component of the fund. The fixed-income sub-adviser’s research analysts also generally integrate ESG matters within their analytical process for investment grade debt securities, investment grade
corporate debt securities, private residential mortgage-backed securities, certain asset-backed securities (including CLOs, CBOs and CDOs), CMBS, certain cash equivalents (including corporate
commercial paper), foreign issuers (including emerging markets debt securities) denominated in U.S. dollars or foreign currency 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 fixed-income 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, dollars rolls, repurchase agreements, derivatives, asset-backed commercial paper, cash, certain cash equivalent securities and money market instruments.
Consideration of ESG matters is subjective and not determinative in the fixed-income sub-adviser’s investment process. The fixed-income sub-adviser may conclude that other attributes of an
investment outweigh ESG considerations when making investment decisions. The fixed-income sub-adviser’s research analysts do not take ESG factors into consideration with respect to every investment in the
fund.
The fund may, but is not required to, engage
in certain investment strategies involving derivatives, such as options, futures, forward currency contracts and swaps, including, but not limited to, interest
rate, total return and credit default swaps. These investment strategies may be employed as a hedging technique, as a means of altering investment
characteristics of the fund (such as shortening or lengthening duration), in an attempt to enhance returns or for other purposes.
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.
Asset Class Allocation – The fund’s investment
performance is significantly impacted by the fund’s asset class allocation and
reallocation from time to time. The value of your investment may decrease if the Investment
Manager's judgment about the attractiveness, value or market trends affecting a particular asset class is incorrect. The fund’s balance between equity and debt securities limits its potential for
capital appreciation relative to an all-stock fund and contributes to greater volatility relative to an all-bond 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.
Large Capitalization Companies – The fund’s investments
in larger, more established companies may underperform other segments of the market because
they may be less responsive to competitive challenges and opportunities and unable to attain high growth rates during periods of economic expansion.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
Currency Hedging – The fund may hedge its currency risk using currency futures, forwards or options. However, hedging
strategies and/or these instruments may not always work as intended, and a fund may be
worse off than if it had not used a hedging strategy or instrument. Certain countries may also impose restrictions on the exchange or export of currency or adverse currency exchange rates and may be characterized by a
lack of available currency hedging instruments.
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.
Dollar Rolls – The use of dollar rolls is a speculative technique involving leverage, and can have an economic effect
similar to borrowing money. Dollar roll transactions involve the risk that the market value
of the securities the fund is required to purchase may decline below the agreed upon repurchase price of those securities. If the broker/dealer to whom the fund sells securities becomes insolvent, the fund’s ability to
purchase or repurchase securities may be restricted.
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.
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.
Hedging
– The fund may buy and sell futures contracts, put and call options, forward contracts and other instruments as a hedge. The fund’s hedging strategies may not work as intended, and the fund may be in a less
favorable position than if it had not used a hedging instrument.
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-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.
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.
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.
Medium Capitalization Companies – The fund will be exposed to additional risks as a result of its investments in the securities of medium capitalization companies. Investing in medium capitalization companies involves
greater risk than is customarily associated with more established companies. The prices of securities of medium capitalization companies generally are more volatile and are more likely to be adversely
affected by changes
in earnings results and investor expectations or poor economic or market
conditions. Securities of medium capitalization companies may underperform larger capitalization companies, may be harder to sell at times and at prices the portfolio managers believe appropriate and may offer
greater potential for losses.
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.
Preferred Stock – Preferred stocks may pay fixed or adjustable rates of return. Preferred stocks are subject to
issuer-specific and market risks applicable generally to equity securities, but also risks
associated with fixed-income securities, such as interest rate risk. A company’s preferred stocks generally pay dividends only after the company makes required payments to creditors, including holders of its bonds and other debt.
As a result, the market prices of preferred stocks are typically more sensitive to changes in the issuer's creditworthiness than are the prices of debt securities. The market value of preferred stocks
generally decreases when interest rates rise.
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.
SOFR – Public and private sector actors have worked to establish alternative reference rates, like the
Secured Overnight Financing Rate (“SOFR”), to be used in place of the London
Interbank Offered Rate (“LIBOR”), the publication of which has ceased. Certain
floating or variable rate obligations or investments of the fund may reference SOFR. SOFR is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are collateralized by U.S.
Treasury securities. SOFR differs fundamentally from LIBOR. LIBOR was intended to be an unsecured rate that represented interbank funding costs for different short-term maturities or tenors. SOFR is a
transaction-based rate, and it has been more volatile than other benchmark or market rates
during certain periods. SOFR has a limited history. There is no assurance that SOFR, or
rates derived from SOFR, will perform in the same or similar way as LIBOR would have performed at any time, and there is no assurance that SOFR-based rates will be a suitable substitute for LIBOR. The
future performance of SOFR, and SOFR-based reference rates, is not known based on SOFR’s history or otherwise. Levels of SOFR in the future may bear little or no relation to historical levels
of SOFR, LIBOR or other rates.
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.
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.
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 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.
Annual Total Returns (calendar years ended December 31) - Class A
| |
Quarter Ended |
Return |
| Best Quarter: |
6/30/2020 |
14.69% |
| Worst Quarter: |
6/30/2022 |
-11.91% |
Average Annual Total Returns (periods ended December 31, 2024)
| |
1 Year |
5 Years |
10 Years |
Since
Inception |
Inception Date |
| Class A |
|
|
|
|
12/2/1994 |
| Return before taxes |
8.20% |
7.59% |
7.45% |
|
|
| Return after taxes on
distributions |
5.98% |
6.15% |
6.21% |
|
|
| Return after taxes on
distributions and sale
of fund shares |
5.90% |
5.71% |
5.71% |
|
|
| Class C (Return before
taxes only) |
12.62% |
7.99% |
7.25% |
|
11/11/2002 |
| Class I (Return before
taxes only) |
14.71% |
9.06% |
8.31% |
|
11/30/2009 |
| Class R6 (Return before
taxes only) |
14.82% |
9.15% |
N/A |
8.53% |
5/29/2015 |
| S&P 500® Index
(reflects no deduction
for fees, expenses or
taxes) |
25.02% |
14.53% |
13.10% |
|
|
| Bloomberg US Aggregate Bond Index (reflects no deduction for fees, expenses or taxes) |
1.25% |
-0.33% |
1.35% |
|
|
The total return information for 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: Aegon USA Investment Management,
LLC Portfolio Managers: | ||
| Daniel Belton, CFA |
Portfolio Manager |
since March 2025 |
| Bradley D. Doyle, CFA* |
Portfolio Manager |
since October 2015 |
| Tyler A. Knight, CFA |
Portfolio Manager |
since October 2015 |
| Brian W. Westhoff, CFA |
Portfolio Manager |
since May 2014 |
| Sivakumar N. Rajan |
Portfolio Manager |
since May 2017 |
| Sub-Adviser: J.P. Morgan Investment Management Inc.
Portfolio Managers: | ||
| Tim Snyder, CFA |
Portfolio Manager |
since May 2013 |
| Raffaele Zingone, CFA |
Portfolio Manager |
since March 2011 |
* 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.
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.
MSPA0325MMB-A