Transamerica Funds Offers New Tactical Income Fund
Seeks income, reduced volatility through tactical allocation
DENVER – October 31, 2011 – Building on the success of its best-of-breed strategy and its asset allocation product suite, Transamerica Asset Management Group announced the launch of Transamerica Tactical Income (the “Fund”). The Fund will be sub-advised by AEGON USA Investment Management (“AUIM”) and will be available to retail and institutional investors through class A, C and I shares.
“One thing we consistently hear from advisors and their clients is the need for income, especially in today’s low-yield market environment,” said Dave Paulsen, Chief Executive Officer of Transamerica Capital, Inc. “More and more, advisors and their clients say income is a primary consideration in their investment portfolios, to maintain their lifestyle during retirement, pay for college for children and grandchildren, or simply to manage volatility in a diversified portfolio.”
To help meet this need for income, advisors and their clients have increased their exposure to riskier fare such as high yield bonds or more volatile dividend-paying equities such as global real estate or preferred stocks. “We wanted to find a better option for advisors and their clients,” said Paulsen, “and we felt that a diversified asset allocation portfolio, with a global perspective and an income focus, could provide high current income while helping reduce overall portfolio volatility.”
AUIM will employ their global tactical allocation strategy for the Fund, with an emphasis on high current income. AUIM’s asset allocation strategy utilizes a proprietary econometric model that evaluates certain economic indicators to assess when investment opportunities are optimal, increasing allocation to higher-risk assets when opportunities are greater, while increasing allocation to lower-risk asset classes when markets are volatile.
The portfolio manager will implement this strategy by using a series of exchange-traded funds (ETFs), sponsored by well-known investment managers and representing broad asset classes that either offer high current income potential or a diversified, non-correlated source of returns. ETFs can be an efficient, cost-effective way to move in and out of asset classes to quickly implement tactical investment decisions. The asset classes represented include:
- U.S. government bonds
- U.S. corporate bonds
- Treasury Inflation Protected Securities (TIPS)
- High yield bonds
- Non-US debt, including emerging market debt
- Dividend-Paying Stocks
- Preferred Stocks
- Master Limited Partnerships
- Real Estate Investment Trusts (REITs)
- International Real Estate
- International Equities
The Fund continues Transamerica Asset Management Group’s strategy to bring best-of-breed institutional managers to the retail investing public. AUIM is an experienced, credit‐focused institutional fixed income manager with global resources and the ability to leverage expertise across a geographically diverse organization. The firm manages over $114 billion (as of June 30, 2011) across the fixed income spectrum, including cash, investment grade and distressed corporate debt, securitized debt, leveraged loans, emerging markets and private equity.
Jeff Whitehead, CFA will lead the portfolio management team responsible for the fund’s strategy. Jeff and AUIM managed over $1.7 billion in asset allocation strategies as of June 30, 2011.
Transamerica Capital, Inc. will lead the sales and distribution efforts within the financial institution, wirehouse and independent financial planner channels. Investors interested in learning more about Transamerica Tactical Allocation should call the Transamerica customer care group at 888-233-4339. Financial professionals interested in learning more should call the Transamerica sales desk at 800-851-7555.
Please consider the fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus and/or summary prospectus contains this and other information about the fund and should be read carefully before you invest or send money. To obtain a prospectus and for other information on Transamerica Funds, contact your financial professional or Transamerica Investments at 888-233-4339 or visit our web site: transamericainvestments.com.
Tactical asset allocation is a portfolio strategy that attempts to take advantage of market highs and lows. The selection of a Tactical Asset Allocation portfolio will not guarantee a profit nor protect against a loss. ETFs generally present the same risks as an investment in a conventional fund that has the same investment objectives, strategies and policies. The market price of an ETF’s shares may be above or below the shares’ net asset value; and an active trading market for an ETF’s shares may not develop or be maintained.
About Transamerica Asset Management Group
Transamerica Asset Management Group consists of Transamerica Funds, Transamerica Partners Funds, Transamerica Series Trust, Transamerica Income Shares, Inc., and Transamerica Asset Management, Inc. Transamerica Asset Management, Inc., a registered investment advisor, is an AEGON company. As of June 30, 2011, Transamerica Asset Management, Inc. had approximately $51.2 billion in assets under management.
About Transamerica Capital, Inc.
Transamerica Capital, Inc. is the underwriting and wholesaling broker-dealer for mutual funds advised by Transamerica Asset Management, Inc. Transamerica Capital, Inc., an AEGON company, works with financial professionals at wirehouse, regional, independent, and bank firms to provide a variety of investment solutions.
About AEGON N.V.
AEGON N.V., based in The Hague, The Netherlands, is an international life insurance, pension and investment company with businesses in over 20 markets in the Americas, Europe and Asia. AEGON companies employ approximately 26,500 people and have over 40 million customers across the globe. For more information about AEGON, visit www.aegon.com.
About AEGON USA Investment Management, LLC
AEGON USA Investment Management, LLC is an institutional fixed income manager with global resources and the ability to leverage expertise across the geographically diverse organization. AEGON USA Investment Management, LLC, an AEGON company, is an SEC registered investment advisor with over 500 employees and manages over $115 billion for investors, as of September 30, 2011.
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For more information, please contact:
Mike Mathies
Vice President, Marketing
720-482-1511
mmathies@transamerica.com
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