Transamerica Balanced II
Summary Prospectus March 1, 2025, as revised April 4, 2025
| Class R4 (TBLFX) |
Class R (TBLRX) |
Class I3 (TBLTX) |
|
|
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.
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.
Shareholder Fees (fees paid directly from your investment)
| Class: |
R |
R4 |
I3 |
| Maximum sales charge (load) imposed on
purchases (as a percentage of offering price) |
None |
None |
None |
| Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower) |
None |
None |
None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your
investment)
| Class: |
R |
R4 |
I3 |
| Management fees |
0.48% |
0.48% |
0.48% |
| Distribution and service (12b-1) fees |
0.50% |
0.25% |
None |
| Other expenses |
0.13% |
0.14%1 |
0.14% |
| Total annual fund operating expenses |
1.11% |
0.87% |
0.62% |
| Fee waiver and/or expense reimbursement2 |
0.01% |
0.12% |
0.00% |
| Total annual fund operating expenses after fee waiver and/or expense reimbursement |
1.10% |
0.75% |
0.62% |
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 1.10% for Class R shares, 0.75% for Class R4 shares and 0.63% for Class I3 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. 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:
| |
1 year |
3 years |
5 years |
10 years |
| Class R |
$112 |
$352 |
$611 |
$1,351 |
| Class R4 |
$77 |
$266 |
$470 |
$1,061 |
| Class I3 |
$63 |
$199 |
$346 |
$774 |
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 38% 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).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. 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. 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.
●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 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 (“CLO”s), collateralized bond obligations (“CBO”s) and collateralized debt obligations (“CDO”s)), commercial
mortgage-backed securities (“CMBS”), high quality short-term debt obligations 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.
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 corporate debt securities, private
residential mortgage-backed securities, certain asset-backed securities (including CLOs, CBOs and CDOs), certain cash equivalents (including corporate commercial paper), foreign issuers
(including emerging markets debt securities) denominated in U.S. dollars and in foreign currencies 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, U.S. Treasury and agency securities, municipal bonds, 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's portfolio (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 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.
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.
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.
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.
Small and Medium Capitalization Companies – The fund will be exposed to additional risks as a result of its investments in the securities of small or medium capitalization companies. Small or medium capitalization companies
may be more at risk than large capitalization companies because, among other things, they
may have limited product lines, operating history, market or financial resources, or because they may depend on a limited management group. Securities of small and medium capitalization companies may be more volatile than and
may underperform large capitalization companies, may be harder to sell at times and at
prices the portfolio managers believe appropriate and may offer greater potential for
losses.
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 fund acquired the
assets and assumed the liabilities of two Transamerica Partners funds, including Transamerica Partners Balanced (the “predecessor
fund”), on September 15, 2017, and the predecessor fund was the accounting and performance survivor of the
reorganizations. This means that the predecessor fund's financial and performance history became the financial and performance history of the fund. In the reorganization of the predecessor fund,
former shareholders of the predecessor fund received Class R shares of the fund. The performance of Class R shares includes the performance of the predecessor fund prior to the reorganizations, and has not been restated to reflect the annual operating expenses of Class R
shares.
Absent any applicable fee waivers and/or
expense limitations, performance would have been 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 R
| |
Quarter Ended |
Return |
| Best Quarter: |
6/30/2020 |
14.67% |
| Worst Quarter: |
6/30/2022 |
-11.92% |
Average Annual Total Returns (periods ended December 31, 2024)
| |
1 Year |
5 Years |
10 Years |
Since
Inception |
Inception Date |
| Class R |
|
|
|
|
7/5/1994 |
| Return before taxes |
14.41% |
8.64% |
7.98% |
|
|
| Return after taxes on
distributions |
10.49% |
6.69% |
6.77% |
|
|
| Return after taxes on
distributions and sale
of fund shares |
10.66% |
6.50% |
6.25% |
|
|
| Class I3 (Return before
taxes only) |
14.94% |
9.16% |
N/A |
9.24% |
9/15/2017 |
| 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 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 November 20161 |
| Tyler A. Knight, CFA |
Portfolio Manager |
since November 20161 |
| Brian W. Westhoff, CFA |
Portfolio Manager |
since November 20162 |
| Sivakumar N. Rajan |
Portfolio Manager |
since May 2017 |
| Sub-Adviser: J.P. Morgan Investment Management Inc. Portfolio Managers: | ||
| Tim Snyder, CFA |
Portfolio Manager |
since September 20163 |
| Raffaele Zingone, CFA |
Portfolio Manager |
since September 20164
|
* Effective July 1, 2025, Mr. Doyle will no longer serve as a
Portfolio Manager of the fund.
1 Portfolio Manager of the predecessor fund since October 2015
2 Portfolio Manager of the predecessor fund since May 2014
3 Portfolio Manager of the predecessor fund since May 2013
4 Portfolio Manager of the predecessor fund since July 2010
Purchase and Sale of Fund Shares: Shares of the fund are available
to individual and institutional investors through certain retirement plans. These plans include, but are not limited to, 401(k), 403(b) and 457
Plans, Money Purchase Plans, Profit Sharing Plans, Simplified Employee Pension Plans, Keogh Plans, defined benefit plans, nonqualified deferred compensation plans and IRAs. Shares may be
purchased by these investors through a plan administrator, recordkeeper or authorized financial intermediary. If you are a participant in a plan, you should obtain the plan’s conditions for
participation from your plan administrator. Shares of the fund are also available to other investors, including endowment funds and
foundations, any state, county or city, or its instrumentality, department, authority or agency, and accounts registered to insurance companies,
trust companies and bank trust departments. Such investors may purchase shares in the fund through the transfer agent directly. You may purchase shares of the fund on any day the New
York Stock Exchange is open for business. Requests to purchase shares for the fund should be mailed to Transamerica Fund Services, Inc., P.O. Box 219945, Kansas City, MO 64121-9945.
Participants in retirement plans administered by Transamerica Retirement Solutions should contact Transamerica Retirement Solutions at 1-800-755-5801 for additional information. If you would like
to purchase shares in a fund by a wire transfer, please call 1-888-233-4339 for wire transfer instructions. You buy and redeem shares at the fund’s next-determined net asset value (“NAV”) after receipt of your request in good order. There is no minimum
investment for eligible retirement plans investing in Class R shares. The minimum initial investment for Class R4 shares is $5,000. There is no
minimum for subsequent investments in Class R or R4 shares. A retirement plan may, however, impose minimum investment requirements. Plan participants or IRA holders should consult their plan
administrator, recordkeeper or authorized financial intermediary.
Redemption requests may be made by mail and, in certain circumstances,
telephone. The proceeds of the redemption will be sent by mail or, if authorized on the Account Application, wire transfer.
Requests to redeem
shares of the fund should be mailed to Transamerica Fund Services, Inc., P.O. Box 219945, Kansas City, MO 64121-9945. You may redeem shares by telephone if you authorized
telephone redemptions on your Account Application. The fund reserves the right to refuse a telephone redemption request if it is believed it is advisable to do so. The telephone redemption
option may be suspended or terminated at any time without advance
notice.
Class R shares of the fund are available only to the shareholders of
Transamerica Partners Balanced at the time of the reorganization into the fund. Class I3 shares of the fund are only available to shareholders of Transamerica Partners Balanced Portfolio at the time of
the reorganization into the fund. Class R4 shares of the fund are not currently available for purchase.
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.
MSPARR40325BII-A