Transamerica Funds
Prospectus October 31, 2012
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Fund
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Class A
Ticker
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Class C
Ticker
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Class I
Ticker
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Transamerica Tactical Allocation
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TTAAX
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TTACX
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TTAIX
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Transamerica Tactical Rotation
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ATTRX
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CTTRX
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ITTOX
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Neither the U.S. Securities and Exchange Commission nor any state securities commission has approved or disapproved these securities or passed upon the adequacy or accuracy of this
prospectus. Any representation to the contrary is a criminal offense.
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Not insured by FDIC or any federal government agency.
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May lose value.
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Not a deposit of or guaranteed by any bank, bank
affiliate, or credit union.
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MPCA1012TA-TR
TABLE OF CONTENTS
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T
RANSAMERICA
T
ACTICAL
A
LLOCATION
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Investment Objective:
Seeks to maximize long term total return.
Fees and Expenses:
This table describes
the fees and expenses that you may pay if you buy and hold shares of the fund. 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 and in the Waivers and/or Reductions of Charges section on page 26 of the funds prospectus and in the funds statement of additional information (SAI)
under the heading Purchase of Shares.
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Shareholder Fees (fees paid directly from
your investment)
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Class of
Shares
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A
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C
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I
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Maximum
sales charge (load) imposed on purchases
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(as a
percentage of offering price)
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5.50%
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None
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None
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Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)
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None
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1.00%
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None
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of
the value of your investment)
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Class of Shares
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A
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C
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I
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Management fees
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0.55%
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0.55%
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0.55%
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Distribution and service (12b-1) fees
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0.30%
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1.00%
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None
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Other expenses
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0.22%
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0.22%
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0.26%
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Acquired fund fees and expenses
a
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0.31%
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0.31%
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0.31%
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Total annual fund operating expenses
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1.38%
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2.08%
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1.12%
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a
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Other expenses and acquired fund fees and expenses are based on estimates for the current fiscal year.
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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 funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your
costs would be:
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If the shares are redeemed at the end of each period:
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Share Class
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1 year
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3 years
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A
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$683
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$963
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C
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$311
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$652
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I
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$114
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$356
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If the shares are not redeemed:
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Share Class
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1 year
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3 years
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A
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$683
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$963
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C
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$211
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$652
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I
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$114
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$356
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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 funds performance.
Principal Investment Strategies:
The
funds sub-adviser, AEGON USA Investment Management, LLC (the sub-adviser) seeks to achieve the funds objective by investing its assets primarily in a combination of underlying exchange traded funds (ETFs).
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Under normal circumstances, the sub-adviser expects to allocate substantially all of the funds assets among underlying index-based ETFs to
achieve targeted exposure to global equities, commodities and derivative securities, as well as U.S. and international fixed income securities. The funds allocation of its assets will generally vary as follows: 16% to 70% in global equities,
including emerging markets; 0% to 8% in inflation-protected securities; 0% to 15% in commodities; 14% to 70%
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in fixed income securities; and 0% to 5% in derivative securities. The fixed income exposure may include U.S. and non-U.S. corporate bonds and U.S. Treasuries of any maturity, sovereign debt of
developed and emerging market countries, and inflation-protected bonds.
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The fund utilizes a tactical asset allocation strategy, which makes short-term adjustments to the funds asset mix utilizing the
sub-advisers research on various risk and return factors, in an effort to better trade off risk and return as market and economic conditions change. The approach seeks to generate improved returns per unit of volatility, as compared to those
from fixed weight or rules-based models. Further, the sub-adviser believes that a greater focus on short-term dynamics can improve the distribution of returns through lower volatility and reduction of economic tail risk (the risk posed
by events that are relatively rare but can have a substantial impact on a fund). The funds asset allocation exposures are expected to be implemented and adjusted through transactions in ETFs.
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The sub-adviser actively and tactically allocates the funds assets among various asset classes in an effort to take advantage of
changing economic conditions that the sub-adviser believes favor one asset class over another. Based on the analysis of various economic indicators, the sub-adviser will increase the allocation to the asset classes that the sub-adviser believes have
a higher probability of contributing to the outperformance of the funds benchmark. Tactical strategies tend to have higher turnover than index funds or strategic funds that adhere to a long term allocation.
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The sub-adviser may periodically adjust the funds allocations to favor investments in those underlying ETFs that are expected to provide the most
favorable outlook for achieving the funds investment objective.
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Each underlying ETF has its own investment objective,
principal investment strategies and investment risks.
The fund may be a significant shareholder in certain underlying ETFs. The sub-adviser
may change the funds asset allocation and underlying ETFs at any time without shareholder approval and without notice to investors.
Under adverse or unstable market, economic or political conditions, the fund may take temporary defensive positions directly, or through ETFs, in cash
and short-term debt securities without limit. During periods of defensive investing, it will be more difficult for the fund to achieve its objective.
Principal Risks:
Risk is inherent in all investing. Many factors affect the funds
performance. There is no assurance the fund will meet its investment objective. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly. 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) of investing in the fund.
You may lose money if you invest in this
fund.
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Active Trading
The fund is
actively managed and may purchase and sell securities without regard to the length of time held. Active trading may have a negative impact on performance by increasing transaction costs and may generate greater amounts of net short-term capital
gains, which, for shareholders holding shares in taxable accounts, would be subject to tax at ordinary income tax rates upon distribution.
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Asset Allocation
The
sub-adviser allocates the funds assets among various underlying funds. These allocations may be unsuccessful in maximizing the funds return and/or avoiding investment losses, and may cause the fund to underperform other funds with a
similar strategy.
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Cash Management and Defensive Investing
Money market instruments or short-term debt securities held by the fund for cash management or defensive investing purposes can fluctuate in value. Like other fixed income securities, they are subject to
risk, including market, interest rate and credit risk. If the fund holds cash uninvested, the fund will be subject to the credit risk of the depository institution holding the cash, it will not earn income on the cash and the funds yield will
go down. To the extent that the funds assets are used for cash management or defensive investing purposes, it will be more difficult for the fund to achieve its objective.
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Commodities
To the extent the
fund invests in commodities or instruments whose performance is linked to the price of an underlying commodity or commodity index, the fund will be subject to the risks of investing in commodities, including regulatory, economic and political
developments, weather events and natural disasters and market disruptions. The funds investment exposure to the commodities markets may subject the fund to greater volatility than investments in more traditional securities, such as stocks and
bonds. Commodities and commodity-linked investments may be less liquid than other investments. Commodity-linked investments are subject to the credit risks associated with the issuer, and their values may decline substantially if the issuers
creditworthiness deteriorates.
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Credit
If an issuer or
guarantor of a security held by the fund or a counterparty to a financial contract with the fund defaults or is downgraded, or is perceived to be less creditworthy, or if the credit quality or value of any underlying assets
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declines, the value of your investment will decline. Junk bonds have a higher risk of default or are already in default and are considered speculative. Subordinated securities are more likely to
suffer a credit loss than non-subordinated securities of the same issuer and will be disproportionately affected by a default, downgrade or perceived decline in creditworthiness.
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Currency
The value of the
funds securities denominated in foreign currencies fluctuates as the rates of exchange between those currencies and the U.S. dollar change. Currency exchange rates can be volatile and are affected by, among other factors, the general economics
of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation.
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Derivatives
Using derivatives
exposes the fund to additional risks and can increase fund losses and reduce opportunities for gains when market prices, interest rates or the derivative instruments themselves behave in a way not anticipated by the fund. Using derivatives also can
have a leveraging effect and increase fund volatility. The fund may also have to sell assets at inopportune times to satisfy its obligations. Derivatives may be difficult to sell, unwind or value, and the counterparty may default on its obligations
to the fund. The funds investments in derivative instruments may involve a small investment relative to the amount of investment exposure assumed and may result in losses exceeding the amounts invested in those instruments. Recent legislation
calls for new regulation of the derivatives markets. The extent and impact of the regulation are not yet fully known and may not be for some time. New regulation of derivatives may make them more costly, may limit their availability, or may
otherwise adversely affect their value or performance.
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Emerging Markets
Investments in
the securities of issuers located in or principally doing business in emerging markets are subject to foreign securities risks. These risks are greater for investments in emerging markets. Emerging market countries tend to have economic, political
and legal systems that are less fully developed and are less stable than those of more advanced countries. Low trading volumes may result in a lack of liquidity and in extreme price volatility.
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Equity Securities
Equity
securities represent an ownership interest in an issuer, rank junior in a companys capital structure and consequently may entail greater risk of loss than debt securities. Equity securities include common and preferred stocks. Stock markets
are volatile. The price of equity securities fluctuates based on changes in a companys financial condition and overall market and economic conditions. If the market prices of the equity securities owned by the fund fall, the value of your
investment in the fund will decline.
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Expenses
Your actual costs of
investing in the fund may be higher than the expenses shown in this prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if overall net assets decrease. Net assets are more likely to decrease and fund
expense ratios are more likely to increase when markets are volatile.
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Extension
If interest rates
rise, repayments of fixed income securities may occur more slowly than anticipated by the market. This may drive the prices of these securities down because their interest rates are lower than the current interest rate and they remain outstanding
longer.
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Foreign Securities
Investing in
foreign securities is generally riskier than investing in U.S. securities. Foreign securities are subject to a number of additional risks, including nationalization or expropriation of assets, imposition of currency controls or restrictions,
confiscatory taxation, political or financial instability and other adverse economic or political developments. Lack of information and less market regulation and accounting standards also may affect the value of these securities.
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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. Real interest rates
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. Also, the inflation index utilized by a particular inflation-protected security may not accurately reflect
the true rate of inflation, in which case the market value of the security could be adversely affected.
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Interest Rate
Interest rates
may go up, causing the value of the funds investments to decline. Debt securities have varying levels of sensitivity to changes in interest rates. A rise in rates tends to have a greater impact on the prices of longer term or duration
securities.
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Manager
The sub-adviser to the
fund actively manages the funds investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the sub-adviser in this process may not produce the desired results. This could cause the fund to lose value
or its results to lag relevant benchmarks or other funds with similar objectives.
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Market
The market prices of the
funds securities may go down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes in interest rates or
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currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. Market
prices of securities also may go down due to events or conditions that affect particular sectors, industries or issuers. When market prices fall, the value of your investment will go down. The fund may experience a substantial or complete loss on
any individual security. The financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities. In response to the financial crisis, the U.S. and other governments and the Federal Reserve and certain
foreign central banks have taken steps to support financial markets. The withdrawal of this support could negatively affect the value and liquidity of certain securities. In addition, legislation recently enacted in the U.S. is changing many aspects
of financial regulation. The impact of the legislation on the markets, and the practical implications for market participants, may not be fully known for some time.
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Portfolio Selection
The value
of your investment may decrease if the sub-advisers judgment about the quality, relative yield, value or market trends affecting a particular security or issuer, industry, sector, region or market segment, or about the economy or interest
rates is incorrect.
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Prepayment or Call
Many issuers
have a right to prepay their securities. If interest rates fall, an issuer may exercise this right. If this happens, the fund will be forced to reinvest prepayment proceeds at a time when yields on securities available in the market are lower than
the yield on the prepaid security. The fund also may lose any premium it paid on the security.
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Tactical Asset Allocation
Tactical asset allocation is an investment strategy that actively adjusts a funds asset allocation. The funds tactical asset management discipline may not work as intended.
The fund may not achieve its objective and may not perform as well as other funds using other asset management styles, including those based on fundamental analysis (a method of evaluating a security that entails attempting to measure its intrinsic
value by examining related economic, financial and other factors) or strategic asset allocation (a strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation). The sub-advisers
evaluations and assumptions in selecting underlying funds or individual securities may be incorrect in view of actual market conditions, and may result in owning securities that underperform other securities.
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Underlying Exchange Traded Funds
Because the fund invests its assets in various underlying ETFs, its ability to achieve its investment objective depends largely on the performance of the underlying ETFs in which it
invests. Each of the underlying ETFs in which the fund may invest has its own investment risks, and those risks can affect the value of the underlying ETFs shares and therefore the value of the funds investments. There can be no
assurance that the investment objective of any underlying ETF will be achieved. To the extent that the fund invests more of its assets in one underlying ETF than in another, the fund will have greater exposure to the risks of that underlying ETF. In
addition, the fund will bear a pro rata portion of the operating expenses of the underlying ETFs in which it invests.
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Equity-based ETFs are subject to risks similar to those of stocks; fixed income-based ETFs are subject to risks similar to those of fixed-income securities. An investment in an ETF generally presents the
same primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up and down, and the fund could lose money
investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to the following risks that do not apply to conventional funds: (i) the market price of an ETFs shares may be above or below the
shares net asset value; (ii) an active trading market for an ETFs shares may not develop or be maintained; or (iii) trading of an ETFs shares may be halted if the listing exchanges officials deem such action
appropriate, the shares are delisted from the exchange or the activation of market-wide circuit breakers (which are tied to large decreases in stock prices) halts stock trading generally.
Performance:
No performance is shown for
the fund. Performance information will appear in a future version of this prospectus once the fund has a full calendar year of performance information to report to investors.
Management:
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Investment Adviser:
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Sub-Adviser:
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Transamerica Asset Management, Inc.
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AEGON USA Investment Management, LLC
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Portfolio Managers:
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Sridip Mukhopadhyaya, CFA, Portfolio Manager since 2012
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David Halfpap, CFA, Portfolio Manager since 2012
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Frank Rybinski, CFA, Portfolio Manager since 2012
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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.transamericafunds.com, by mail to Transamerica
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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., 330 W. 9th Street, Kansas City, MO 64105
or through a financial intermediary. The minimum initial purchase for Class A and C shares is $1,000; the minimum subsequent investment is $50. The minimum initial purchase for payroll deduction and automatic investment plan is $500; the
minimum subsequent investment is $50 per monthly fund account investment. The minimum investment for Class I shares is $1,000,000.
Tax Information:
Fund distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other
tax-advantaged investment plan.
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
intermediarys website for more information.
5
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T
RANSAMERICA
T
ACTICAL
R
OTATION
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Investment Objective:
Seeks capital appreciation.
Fees and
Expenses:
This table describes the fees and expenses that you may pay if you buy and hold shares of the fund. 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 and in the Waivers and/or Reductions of Charges section on page 26 of
the funds prospectus and in the funds statement of additional information (SAI) under the heading Purchase of Shares.
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Shareholder Fees (fees paid directly from
your investment)
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Class of
Shares
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A
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C
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I
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Maximum
sales charge (load) imposed on purchases
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(as a
percentage of offering price)
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5.50%
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None
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None
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Maximum deferred sales charge (load) (as a percentage of purchase price or redemption proceeds, whichever is lower)
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None
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1.00%
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None
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Annual Fund Operating Expenses (expenses that you pay each year as a percentage of
the value of your investment)
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Class of
Shares
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A
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C
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I
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Management fees
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0.55%
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0.55%
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0.55%
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Distribution and service (12b-1) fees
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0.30%
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1.00%
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None
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Other expenses
a
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0.22%
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0.22%
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0.26%
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Acquired fund fees and expenses
a
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0.30%
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0.30%
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0.30%
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Total annual fund operating expenses
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1.37%
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2.07%
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1.11%
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a
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Other expenses and acquired fund fees and expenses are based on estimates for the current fiscal year.
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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 funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your
costs would be:
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If the shares are redeemed at the end of each period:
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Share Class
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1 year
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3 years
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A
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$682
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$960
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C
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$310
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$649
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I
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$113
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$353
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If the shares are not redeemed:
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Share Class
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1 year
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3 years
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A
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$682
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$960
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C
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$210
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$649
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I
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$113
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$353
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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 funds performance.
Principal Investment Strategies:
The
funds sub-adviser, AEGON USA Investment Management, LLC (the sub-adviser) seeks to achieve the funds objective by investing its assets primarily in a combination of underlying exchange traded funds (ETFs).
|
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Under normal circumstances, the sub-adviser expects to allocate substantially all of the funds assets among underlying index-based ETFs to
achieve targeted exposure to global equities and short-term fixed income securities. The funds allocation of assets will generally vary as follows: 20% to 100% in global equities, including emerging and frontier markets; and 0% to 80% in short
duration fixed income securities, inflation-protected securities and/or cash.
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6
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The fund utilizes a tactical asset allocation strategy, which makes short-term adjustments to the funds asset mix utilizing the
sub-advisers research on various risk and return factors, in an effort to better trade off risk and return as market and economic conditions change. The approach seeks to generate improved returns per unit of volatility, as compared to those
from fixed weight or rules-based models. Further, the sub-adviser believes that a greater focus on short-term dynamics can improve the distribution of returns through lower volatility and reduction of economic tail risk (the risk posed
by events that are relatively rare but can have a substantial impact on a fund).
|
The sub-adviser actively
and tactically rotates the funds assets among various asset classes in an effort to take advantage of changing economic conditions that the sub-adviser believes favor one asset class over another. Based on the analysis of various economic
indicators, the sub-adviser will increase the allocation to the asset classes that the sub-adviser believes have a higher probability of contributing to the outperformance of the funds benchmark. Tactical strategies tend to have higher
turnover than index funds or strategic funds that adhere to a long term allocation.
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The sub-adviser may periodically adjust the funds allocations to favor investments in those underlying ETFs that are expected to provide the most
favorable outlook for achieving the funds investment objective.
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Each underlying ETF has its own investment objective,
principal investment strategies and investment risks.
The fund may be a significant shareholder in certain underlying ETFs. The sub-adviser
may change the funds asset allocation and underlying ETFs at any time without shareholder approval and without notice to investors.
Under adverse or unstable market, economic or political conditions, the fund may take temporary defensive positions directly, or through ETFs, in cash
and short-term debt securities without limit. During periods of defensive investing, it will be more difficult for the fund to achieve its objective.
Principal Risks:
Risk is inherent in all investing. Many factors affect the funds
performance. There is no assurance the fund will meet its investment objective. The value of your investment in the fund, as well as the amount of return you receive on your investment, may fluctuate significantly. 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) of investing in the fund.
You may lose money if you invest in this
fund.
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Active Trading
The fund is
actively managed and may purchase and sell securities without regard to the length of time held. Active trading may have a negative impact on performance by increasing transaction costs and may generate greater amounts of net short-term capital
gains, which, for shareholders holding shares in taxable accounts, would be subject to tax at ordinary income tax rates upon distribution.
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Asset Allocation
The
sub-adviser allocates the funds assets among various underlying funds. These allocations may be unsuccessful in maximizing the funds return and/or avoiding investment losses, and may cause the fund to underperform other funds with a
similar strategy.
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Cash Management and Defensive Investing
Money market instruments or short-term debt securities held by the fund for cash management or defensive investing purposes can fluctuate in value. Like other fixed income securities, they are subject to
risk, including market, interest rate and credit risk. If the fund holds cash uninvested, the fund will be subject to the credit risk of the depository institution holding the cash, it will not earn income on the cash and the funds yield will
go down. To the extent that the funds assets are used for cash management or defensive investing purposes, it will be more difficult for the fund to achieve its objective.
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Credit
If an issuer or
guarantor of a security held by the fund or a counterparty to a financial contract with the fund defaults or is downgraded, or is perceived to be less creditworthy, or if the credit quality or value of any underlying assets declines, the value of
your investment will decline. Junk bonds have a higher risk of default or are already in default and are considered speculative. Subordinated securities are more likely to suffer a credit loss than non-subordinated securities of the same issuer and
will be disproportionately affected by a default, downgrade or perceived decline in creditworthiness.
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Currency
The value of the
funds securities denominated in foreign currencies fluctuates as the rates of exchange between those currencies and the U.S. dollar change. Currency exchange rates can be volatile and are affected by, among other factors, the general economics
of a country, the actions of the U.S. and foreign governments or central banks, the imposition of currency controls, and speculation.
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Emerging Markets
Investments in
the securities of issuers located in or principally doing business in emerging markets are subject to foreign securities risks. These risks are greater for investments in emerging markets. Emerging market countries tend to have economic, political
and legal systems that are less fully developed and are less stable than those of more advanced countries. Low trading volumes may result in a lack of liquidity and in extreme price volatility.
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Equity Securities
Equity
securities represent an ownership interest in an issuer, rank junior in a companys capital structure and consequently may entail greater risk of loss than debt securities. Equity securities include common and preferred stocks. Stock markets
are volatile. The price of equity securities fluctuates based on changes in a companys financial condition and overall market and economic conditions. If the market prices of the equity securities owned by the fund fall, the value of your
investment in the fund will decline.
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Expenses
Your actual costs of
investing in the fund may be higher than the expenses shown in this prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if overall net assets decrease. Net assets are more likely to decrease and fund
expense ratios are more likely to increase when markets are volatile.
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Extension
If interest rates
rise, repayments of fixed income securities may occur more slowly than anticipated by the market. This may drive the prices of these securities down because their interest rates are lower than the current interest rate and they remain outstanding
longer.
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Foreign Securities
Investing in
foreign securities is generally riskier than investing in U.S. securities. Foreign securities are subject to a number of additional risks, including nationalization or expropriation of assets, imposition of currency controls or restrictions,
confiscatory taxation, political or financial instability and other adverse economic or political developments. Lack of information and less market regulation and accounting standards also may affect the value of these securities.
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Frontier Markets
Frontier
market countries generally have smaller economies and even less developed capital markets than emerging markets countries, and, as a result, the risks of investing in emerging market countries are magnified in frontier market countries. The
magnification of risks are the result of: potential for extreme price volatility and illiquidity in frontier markets; government ownership or control of parts of private sector and of certain companies; trade barriers, exchange controls, managed
adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which frontier market countries trade; and the relatively new and unsettled securities laws in many frontier market countries.
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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. Real interest rates
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. Also, the inflation index utilized by a particular inflation-protected security may not accurately reflect
the true rate of inflation, in which case the market value of the security could be adversely affected.
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Interest Rate
Interest rates
may go up, causing the value of the funds investments to decline. Debt securities have varying levels of sensitivity to changes in interest rates. A rise in rates tends to have a greater impact on the prices of longer term or duration
securities.
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Manager
The sub-adviser to the
fund actively manages the funds investments. Consequently, the fund is subject to the risk that the methods and analyses employed by the sub-adviser in this process may not produce the desired results. This could cause the fund to lose value
or its results to lag relevant benchmarks or other funds with similar objectives.
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Market
The market prices of the
funds securities may go down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic or political conditions, inflation, changes in interest rates or currency rates, lack of liquidity
in the markets or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. Market prices of securities also may go down due to events or conditions that affect particular
sectors, industries or issuers. When market prices fall, the value of your investment will go down. The fund may experience a substantial or complete loss on any individual security. The financial crisis that began in 2008 has caused a significant
decline in the value and liquidity of many securities. In response to the financial crisis, the U.S. and other governments and the Federal Reserve and certain foreign central banks have taken steps to support financial markets. The withdrawal of
this support could negatively affect the value and liquidity of certain securities. In addition, legislation recently enacted in the U.S. is changing many aspects of financial regulation. The impact of the legislation on the markets, and the
practical implications for market participants, may not be fully known for some time.
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Portfolio Selection
The value
of your investment may decrease if the sub-advisers judgment about the quality, relative yield, value or market trends affecting a particular security or issuer, industry, sector, region or market segment, or about the economy or interest
rates is incorrect.
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Prepayment or Call
Many issuers
have a right to prepay their securities. If interest rates fall, an issuer may exercise this right. If this happens, the fund will be forced to reinvest prepayment proceeds at a time when yields on securities available in the market are lower than
the yield on the prepaid security. The fund also may lose any premium it paid on the security.
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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. The prices of securities of small and medium
capitalization companies generally are more volatile than those of large capitalization companies and are more likely to be adversely affected than large capitalization companies by changes in earnings results and investor expectations or poor
economic or market conditions. Securities of small and medium capitalization companies 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.
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Tactical Asset Allocation
Tactical asset allocation is an investment strategy that actively adjusts a funds asset allocation. The funds tactical asset management discipline may not work as intended.
The fund may not achieve its objective and may not perform as well as other funds using other asset management styles, including those based on fundamental analysis (a method of evaluating a security that entails attempting to measure its intrinsic
value by examining related economic, financial and other factors) or strategic asset allocation (a strategy that involves periodically rebalancing the portfolio in order to maintain a long-term goal for asset allocation). The sub-advisers
evaluations and assumptions in selecting underlying funds or individual securities may be incorrect in view of actual market conditions, and may result in owning securities that underperform other securities.
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Underlying Exchange Traded Funds
Because the fund invests its assets in various underlying ETFs, its ability to achieve its investment objective depends largely on the performance of the underlying ETFs in which it
invests. Each of the underlying ETFs in which the fund may invest has its own investment risks, and those risks can affect the value of the underlying ETFs shares and therefore the value of the funds investments. There can be no
assurance that the investment objective of any underlying ETF will be achieved. To the extent that the fund invests more of its assets in one underlying ETF than in another, the fund will have greater exposure to the risks of that underlying ETF. In
addition, the fund will bear a pro rata portion of the operating expenses of the underlying ETFs in which it invests.
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Equity-based ETFs are subject to risks similar to those of stocks; fixed income-based ETFs are subject to risks similar to those of fixed-income securities. An investment in an ETF generally presents the
same primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up and down, and the fund could lose money
investing in an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to the following risks that do not apply to conventional funds: (i) the market price of an ETFs shares may be above or below the
shares net asset value; (ii) an active trading market for an ETFs shares may not develop or be maintained; or (iii) trading of an ETFs shares may be halted if the listing exchanges officials deem such action
appropriate, the shares are delisted from the exchange or the activation of market-wide circuit breakers (which are tied to large decreases in stock prices) halts stock trading generally.
Performance:
No performance is shown for
the fund. Performance information will appear in a future version of this prospectus once the fund has a full calendar year of performance information to report to investors.
Management:
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Investment Adviser:
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Sub-Adviser:
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Transamerica Asset Management, Inc.
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AEGON USA Investment Management, LLC
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Portfolio Managers:
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Sridip Mukhopadhyaya, CFA, Portfolio Manager since 2012
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David Halfpap, CFA, Portfolio Manager since 2012
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Frank Rybinski, CFA, Portfolio Manager since 2012
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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.transamericafunds.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., 330 W. 9th Street, Kansas City, MO 64105 or through a financial intermediary. The minimum
9
initial purchase for Class A and C shares is $1,000; the minimum subsequent investment is $50. The minimum initial purchase for payroll deduction and automatic investment plan is $500; the
minimum subsequent investment is $50 per monthly fund account investment. The minimum investment for Class I shares is $1,000,000.
Tax Information:
Fund distributions may be taxable as ordinary income or capital gains, except when your investment is in an IRA, 401(k) or other
tax-advantaged investment plan.
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
intermediarys website for more information.
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M
ORE
ON
THE
F
UNDS
S
TRATEGIES
AND
I
NVESTMENTS
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The following provides additional information regarding each funds strategies and investments described at the
front of the prospectus. Except as otherwise expressly stated for a particular fund in this prospectus or in the statement of additional information or as required by law, there is no limit on the amount of each funds assets that may be
invested in a particular type of security or investment.
Transamerica Tactical Allocation:
The funds sub-adviser, AEGON USA Investment Management, LLC (the sub-adviser) seeks to achieve the funds objective by investing its assets primarily in a
combination of underlying exchange traded funds (ETFs).
Under normal circumstances, the sub-adviser expects to allocate
substantially all of the funds assets among underlying index-based ETFs to achieve targeted exposure to global equities, commodities and derivative securities, as well as U.S. and international fixed income securities. The funds
allocation of its assets will generally vary as follows: 16% to 70% in global equities, including emerging markets; 0% to 8% in inflation-protected securities; 0% to 15% in commodities; 14% to 70% in fixed income securities; and 0% to 5% in
derivative securities. The fixed income exposure may include U.S. and non-U.S. corporate bonds and U.S. Treasuries of any maturity, sovereign debt of developed and emerging markets countries, and inflation-protected bonds.
The fund utilizes a tactical asset allocation strategy, which makes short-term adjustments to the funds asset mix utilizing the sub-advisers
research on various risk and return factors, in an effort to better trade off risk and return as market and economic conditions change. The approach seeks to generate improved returns per unit of volatility, as compared to those from fixed weight or
rules-based models. Further, the sub-adviser believes that a greater focus on short-term dynamics can improve the distribution of returns through lower volatility and reduction of economic tail risk (the risk posed by events that are
relatively rare but can have a substantial impact on a fund). The funds asset allocation exposures are expected to be implemented and adjusted through transactions in ETFs.
The sub-adviser actively and tactically allocates the funds assets among various asset classes in an effort to take advantage of changing economic conditions that the sub-adviser believes favor one
asset class over another. Based on the analysis of various economic indicators, the sub-adviser will increase the allocation to the asset classes that the sub-adviser believes have a higher probability of contributing to the outperformance of the
funds benchmark. Tactical strategies tend to have higher turnover than index funds or strategic funds that adhere to a long term allocation.
The sub-adviser may periodically adjust the funds allocations to favor investments in those underlying ETFs that are expected to provide the most favorable outlook for achieving the funds
investment objective.
Each underlying ETF has its own investment objective, principal investment strategies and investment risks.
The Investment Company Act of 1940 (1940 Act) restricts investments by registered investment companies, such as the fund, in the securities
of other investment companies, including mutual funds and certain ETFs. However, pursuant to exemptive orders issued by the U.S. Securities and Exchange Commission to certain ETFs, the fund is permitted to invest in these ETFs beyond the limitations
set forth in the 1940 Act, subject to certain terms and conditions set forth in the exemptive orders. The fund may be prevented from fully allocating assets to an ETF or mutual fund due to these limitations.
The fund may be a significant shareholder in certain underlying ETFs. The sub-adviser may change the funds asset allocation and underlying ETFs at
any time without shareholder approval and without notice to investors.
The fund may invest its assets directly, or through ETFs, in cash,
cash equivalent securities or short-term debt securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only
in seeking to avoid losses, the fund may be unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be
subject to risk with respect to the depository institution holding the cash.
Transamerica
Tactical Rotation:
The funds sub-adviser, AEGON USA Investment Management, LLC (the sub-adviser) seeks to achieve the funds objective by investing its assets
primarily in a combination of underlying exchange traded funds (ETFs).
Under normal circumstances, the sub-adviser expects to
allocate substantially all of the funds assets among underlying index-based ETFs to achieve targeted exposure to global equities and short-term fixed income securities. The funds allocation of assets will generally vary as follows: 20%
to 100% in global equities, including emerging and frontier markets; and 0% to 80% in short duration fixed income securities, inflation-protected securities and/or cash.
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The fund utilizes a tactical asset allocation strategy, which makes short-term adjustments to the
funds asset mix utilizing the sub-advisers research on various risk and return factors, in an effort to better trade off risk and return as market and economic conditions change. The approach seeks to generate improved returns per unit
of volatility, as compared to those from fixed weight or rules-based models. Further, the sub-adviser believes that a greater focus on short-term dynamics can improve the distribution of returns through lower volatility and reduction of
economic tail risk (the risk posed by events that are relatively rare but can have a substantial impact on a fund).
The
sub-adviser actively and tactically rotates the funds assets among various asset classes in an effort to take advantage of changing economic conditions that the sub-adviser believes favor one asset class over another. Based on the analysis of
various economic indicators, the sub-adviser will increase the allocation to the asset classes that the sub-adviser believes have a higher probability of contributing to the outperformance of the funds benchmark. Tactical strategies tend to
have higher turnover than index funds or strategic funds that adhere to a long term allocation.
The sub-adviser may periodically adjust the
funds allocations to favor investments in those underlying ETFs that are expected to provide the most favorable outlook for achieving the funds investment objective.
Each underlying ETF has its own investment objective, principal investment strategies and investment risks.
The Investment Company Act of 1940 (1940 Act) restricts investments by registered investment companies, such as the fund, in the securities of other investment companies, including mutual
funds and certain ETFs. However, pursuant to exemptive orders issued by the U.S. Securities and Exchange Commission to certain ETFs, the fund is permitted to invest in these ETFs beyond the limitations set forth in the 1940 Act, subject to certain
terms and conditions set forth in the exemptive orders. The fund may be prevented from fully allocating assets to an ETF or mutual fund due to these limitations.
The fund may be a significant shareholder in certain underlying ETFs. The sub-adviser may change the funds asset allocation and underlying ETFs at any time without shareholder approval and without
notice to investors.
The fund may invest its assets directly, or through ETFs, in cash, cash equivalent securities or short-term debt
securities, repurchase agreements and money market instruments. Under adverse or unstable market, economic or political conditions, the fund may do so without limit. Although the fund would do this only in seeking to avoid losses, the fund may be
unable to pursue its investment objective during that time, and it could reduce the benefit from any upswing in the market. To the extent that the fund has any uninvested cash, the fund would also be subject to risk with respect to the depository
institution holding the cash.
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M
ORE
ON
R
ISKS
OF
I
NVESTING
IN
THE
F
UNDS
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The value of your investment in a fund changes with the values of that funds investments. Many factors can affect
those values. The following provides additional information regarding the risks of investing in each fund as described at the front of the prospectus, as well as certain other risks. There is no guarantee that a fund will be able to achieve its
investment objective. It is possible to lose money by investing in a fund.
Active Trading:
Certain funds are actively managed and may purchase and sell securities without regard to the length of time held. Active trading may have a negative impact on performance by increasing
transaction costs and may generate greater amounts of net short-term capital gains, which, for shareholders holding shares in taxable accounts, would be subject to tax at ordinary income tax rates upon distribution.
Asset Allocation:
The sub-adviser
allocates a funds assets among various underlying funds. These allocations may be unsuccessful in maximizing a funds return and/or avoiding investment losses.
Cash Management and Defensive Investing:
Money market instruments or short-term debt
securities held by the fund for cash management or defensive investing purposes can fluctuate in value. Like other fixed income securities, they are subject to risk, including market, interest rate and credit risk. If the fund holds cash uninvested,
the fund will be subject to the credit risk of the depository institution holding the cash, it will not earn income on the cash and the funds yield will go down. To the extent that the funds assets are used for cash management or
defensive investing purposes, it will be more difficult for the fund to achieve its objective.
Commodities:
Because a fund may invest
in commodities or instruments whose performance is linked to the price of an underlying commodity or commodity index, a fund may be subject to the risks of investing in commodities. These types of risks include regulatory, economic and political
developments, weather events and natural disasters, pestilence and market disruptions. A funds investment exposure to the commodities markets may subject the fund to greater volatility than investments in more traditional securities, such as
stocks and bonds. Commodities and commodity-linked investments may be less liquid than other investments. Commodity-linked investments are subject to the credit risks associated with the issuer, and their values may decline substantially if the
issuers creditworthiness deteriorates.
To the extent a fund invests in companies principally engaged in the commodities industries
(including the agriculture, energy, materials and commodity-related industrial sectors) (commodity-related companies), the fund will be subject to the risk factors particular to each such industry. Commodity-related companies can be
significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, commodity prices, tax and other government regulations, and natural phenomena such as drought,
floods and other adverse weather conditions and livestock disease. Cyclical industries can be significantly affected by import controls, worldwide competition, changes in consumer sentiment and spending, and companies engaged in such industries can
be subject to liability for, among other things, environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. In addition, the commodities industries can be significantly affected by the level and
volatility of commodity prices, which have historically been among the most volatile of international prices, often exceeding the volatility of exchange rates and interest rates. Investments in commodity-related companies are also subject to the
risk that the performance of such companies may not correlate with broader equity market returns or with returns on commodity investments to the extent expected by a funds sub-adviser.
Conflicts of Interest:
Transamerica Asset Management, Inc. (TAM or the
Investment Adviser) and its affiliates are engaged in a variety of businesses and have interests other than that of managing the funds. The broad range of activities and interests of TAM and its affiliates gives rise to actual, potential
and perceived conflicts of interest that could affect the funds and their shareholders.
TAM serves as investment adviser to certain funds of
funds that invest in affiliated underlying funds, unaffiliated underlying funds, or a combination of both. TAM will receive more revenue to the extent it selects an affiliated fund rather than an unaffiliated fund for inclusion in a fund of funds.
In addition, TAM may have an incentive to allocate the fund of funds assets to those funds for which the fees paid to TAM or the sub-adviser are higher than the fees paid by other underlying funds or to those funds for which the sub-adviser
serves as adviser.
TAM may have a financial incentive to propose certain changes to the funds. TAM may, from time to time, recommend a change
in sub-adviser or a fund combination. TAM will benefit to the extent that an affiliated sub-adviser replaces an unaffiliated sub-adviser or additional assets are combined into a fund having a higher advisory fee and/or that is sub-advised by an
affiliate of TAM. TAM will also benefit to the extent that it recommends replacing a sub-adviser with a new sub-adviser with a lower sub-advisory fee.
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Credit:
If an obligor (such as the issuer itself or a party offering credit enhancement) for a security held by a fund fails to pay, otherwise defaults, is perceived to be less creditworthy, becomes insolvent or
files for bankruptcy, a securitys credit rating is downgraded, or the credit quality or value of any underlying assets declines, the value of your investment in the fund could decline. A fund may incur expenses to protect the funds
interest in securities experiencing these events. If a fund enters into financial contracts (such as certain derivatives, repurchase agreements, reverse repurchase agreements, and when-issued, delayed delivery and forward commitment transactions),
the fund will be subject to the credit risk presented by the counterparty. Credit risk is broadly gauged by the credit ratings of the securities in which a fund invests. However, ratings are only the opinions of the companies issuing them and are
not guarantees as to quality. Securities rated in the lowest category of investment grade (Baa/BBB or Baa-/BBB-) may possess certain speculative characteristics.
A fund is subject to greater levels of credit risk to the extent it invests in below investment grade debt securities (that is, securities rated below Baa/BBB or unrated securities of comparable quality),
or junk bonds. These securities have a higher risk of issuer default because, among other reasons, issuers of junk bonds often have more debt in relation to total capitalization than issuers of investment grade securities. Junk bonds are
considered speculative, tend to be less liquid and are more difficult to value than higher rated securities and may involve significant risk of exposure to adverse conditions and negative sentiments. These securities may be in default or in danger
of default as to principal and interest. Unrated securities of comparable quality share these risks.
A fund may invest in securities which
are subordinated to more senior securities of the issuer, or which represent interests in pools of such subordinated securities. A fund is more likely to suffer a credit loss on subordinated securities than on non-subordinated securities of the same
issuer. If there is a default, bankruptcy or liquidation of the issuer, most subordinated securities are paid only if sufficient assets remain after payment of the issuers non-subordinated securities. In addition, any recovery of interest or
principal may take more time. As a result, even a perceived decline in creditworthiness of the issuer is likely to have a greater impact on subordinated securities.
Currency:
The value of a funds securities denominated in foreign currencies
fluctuates as the rates of exchange between those currencies and the U.S. dollar change. Currency rates in foreign countries can be volatile and are affected by, among other factors, the general economics of a country, the actions of the U.S. and
foreign governments or central banks, the imposition of currency controls, and speculation. As a result, a funds investments in foreign currency denominated securities may reduce the returns of the fund.
Derivatives:
Derivatives involve special
risks and costs and may result in losses to a fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated
by a fund, especially in abnormal market conditions. Using derivatives can have a leveraging effect, which may increase investment losses and may increase fund volatility. Even a small investment in derivatives can have a disproportionate impact on
a fund. Using derivatives can increase losses and reduce opportunities for gains when market prices, interest rates or currencies, or the derivative instruments themselves, behave in a way not anticipated by a fund, especially in abnormal market
conditions. The other parties to certain derivative contracts present the same types of credit risk as issuers of fixed-income securities. Derivatives also tend to involve greater liquidity risk and they may be difficult to value. A fund may be
unable to terminate or sell its derivative positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. A funds use of derivatives may also increase the amount of taxes
payable by shareholders. Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation are not yet fully known and may not be for some time. New regulation of derivatives may make them more costly,
may limit their availability, or may otherwise adversely affect their value or performance.
Using derivatives, especially for non-hedging
purposes, may involve greater risks to a fund than investing directly in securities, particularly as these instruments may be very complex and may not behave in the manner anticipated by the fund. Risks associated with the use of derivatives are
magnified to the extent that a large portion of the funds assets are committed to derivatives in general or are invested in just one or a few types of derivatives.
When a fund enters into derivative transactions, it may be required to segregate assets, or enter into offsetting positions, in accordance with applicable regulations. Such segregation will not limit the
funds exposure to loss, however, and the fund will have investment risk with respect to both the derivative itself and the assets that have been segregated to cover the funds derivative exposure. If the segregated assets represent a
large portion of the funds portfolio, this may impede portfolio management or the funds ability to meet redemption requests or other current obligations.
Some derivatives may be difficult to value, or may be subject to the risk that changes in the value of the instrument may not correlate well with the underlying asset, rate or index. In addition,
derivatives may be subject to market risk, interest rate risk
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and credit risk. A fund could lose the entire amount of its investment in a derivative and, in some cases, could lose more than the principal amount invested. Also, suitable derivative
instruments may not be available in all circumstances or at reasonable prices. A funds sub-adviser may not make use of derivatives for a variety of reasons.
Risks associated with the use of derivatives are magnified to the extent that a large portion of a funds assets are committed to derivatives in general or are invested in just one or a few types of
derivatives.
Emerging Markets:
Investments in the securities of issuers located in or principally doing business in emerging markets bear foreign securities risks. The risks associated with investing in emerging
markets are greater than investing in developed foreign markets. Emerging market countries typically have economic and political systems that are less fully developed, and that can be expected to be less stable. For example, the economies of such
countries can be subject to rapid and unpredictable rates of inflation or deflation. Emerging market countries may have policies that restrict investment by foreigners or that prevent foreign investors from withdrawing their money at will. Low
trading volumes may result in a lack of liquidity and in extreme price volatility. A fund investing in emerging markets countries may be required to establish special custody or other arrangements before investing. An investment in emerging market
securities should be considered speculative.
Equity Securities:
Equity securities represent an ownership interest in an issuer, rank junior in a companys capital structure and, consequently, may entail greater risk of loss than debt securities. Equity securities
include common and preferred stocks. Stock markets are volatile. The price of equity securities fluctuates based on changes in a companys financial condition and overall market and economic conditions. Because a companys equity
securities rank junior in priority to the interests of bond holders and other creditors, a companys equity securities will usually react more strongly than its bonds and other debt to actual or perceived changes in the companys financial
condition or prospects. If the market prices of the equity securities owned by a fund fall, the value of your investment in the fund will decline.
Expenses:
Your actual costs of investing in a fund may be higher than the expenses shown in
this prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if overall net assets decrease, or if a fee limitation is changed or terminated. Net assets are more likely to decrease and fund expense ratios are
more likely to increase when markets are volatile.
Extension:
If interest rates rise, repayments of fixed income securities may occur more slowly than anticipated by the market. This may drive the prices of these securities down because their interest rates are
lower than the current interest rate and they remain outstanding longer.
Foreign
Securities:
Investments in foreign securities (including those denominated in U.S. dollars) are subject to economic and political developments in the countries and regions where the
issuers operate or are domiciled, or where the securities are traded, such as changes in economic or monetary policies. Values may also be affected by restrictions on receiving the investment proceeds from a foreign country.
Less information may be publicly available about foreign companies than about U.S. companies. Foreign companies are generally not subject to the same
accounting, auditing and financial reporting standards as are U.S. companies. Some securities issued by non-U.S. governments or their subdivisions, agencies and instrumentalities may not be backed by the full faith and credit of such governments.
Even where a security is backed by the full faith and credit of a government, it may be difficult for the fund to pursue its rights against the government. Some non-U.S. governments have defaulted on principal and interest payments. In addition, a
funds investments in foreign securities may be subject to the risk of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of foreign currency, confiscatory taxation,
political or financial instability and adverse diplomatic developments. Dividends or interest on, or proceeds from the sale of, foreign securities may be subject to non-U.S. withholding taxes, and special U.S. tax considerations may apply.
American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), and European Depositary Receipts
(EDRs) are generally subject to the same risks as direct investments in foreign securities.
Frontier Markets:
Frontier market countries generally have smaller economies and less developed capital markets than emerging markets countries, and,
as a result, the risks of investing in emerging market countries are magnified in frontier market countries. The economies of frontier market countries are generally less correlated to global economic cycles than those of their more developed
counterparts and their markets have low trading volumes and the potential for extreme price volatility and illiquidity. This volatility may be further heightened by the actions of a few major investors. These factors make investing in frontier
market countries significantly riskier than in other countries and any one of them could cause the price of the funds shares to decline.
High-Yield Debt Securities:
High-yield
debt securities, commonly referred to as junk bonds, are securities that are rated below investment grade (that is, securities rated below Baa/BBB) or, if unrated, are determined to be below investment grade by the
sub-adviser. High-yield debt securities have a higher risk of issuer default because, among other reasons, issuers of junk
15
bonds often have more debt in relation to total capitalization than issuers of investment grade securities. These securities are considered speculative, tend to be less liquid and are more
difficult to value than higher rated securities and may involve major risk of exposure to adverse conditions and negative sentiments. These securities may be in default or in danger of default as to principal and interest. High-yield debt securities
range from those for which the prospect for repayment of principal and interest is predominantly speculative to those which are currently in default on principal or interest payments or in bankruptcy. A fund with high-yield debt securities may be
more susceptible to credit risk and market risk than a fund that invests only in higher quality debt securities because these lower-rated debt securities are less secure financially and more sensitive to downturns in the economy. High-yield
securities are not generally meant for short-term investing. Unrated securities of comparable quality share these risks.
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. Real interest rates 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. Also, the inflation index utilized by a
particular inflation-protected security may not accurately reflect the true rate of inflation, in which case the market value of the security could be adversely affected.
Interest Rate:
When interest rates rise, the value of fixed income securities generally
falls. A change in interest rates will not have the same impact on all fixed-income securities. Generally, the longer the maturity or duration of a fixed-income security, the greater the impact of a rise in interest rates on the securitys
value. In addition, different interest rate measures (such as short-and long-term interest rates and U.S. and foreign interest rates), or interest rates on different types of securities or securities of different issuers, may not necessarily change
in the same amount or in the same direction. When interest rates go down, the income received by a fund, and the funds yield, may decline.
Certain fixed-income securities pay interest at variable or floating rates. Variable rate securities tend to reset at specified intervals, while floating rate securities may reset whenever there is a
change in a specified index rate. In most cases, these reset provisions reduce the impact of changes in market interest rates on the value of the security. However, some securities do not track the underlying index directly, but reset based on
formulas that may produce a leveraging effect; others may also provide for interest payments that vary inversely with market rates. The market prices of these securities may fluctuate significantly when interest rates change. A funds yield may
decline due to a decrease in market interest rates.
Inflation protected debt securities may react differently from other types of debt
securities and tend to react to changes in real interest rates. Real interest rates 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.
Investments by Asset Allocation Funds:
Transamerica Asset Allocation Conservative Portfolio, Transamerica Asset Allocation Growth Portfolio, Transamerica Asset Allocation Moderate Growth Portfolio, Transamerica Asset Allocation Moderate Portfolio, Transamerica
Multi-Manager Alternative Strategies Portfolio and Transamerica Multi-Manager International Portfolio, each separate series of Transamerica Funds, as well as Transamerica Asset Allocation Conservative VP, Transamerica Asset Allocation
Growth VP, Transamerica Asset Allocation Moderate Growth VP, Transamerica Asset Allocation Moderate VP, Transamerica BlackRock Tactical Allocation VP, Transamerica International Moderate Growth VP, Transamerica Madison Balanced
Allocation VP, Transamerica Madison Conservative Allocation VP, and Transamerica Madison Moderate Growth Allocation VP, each separate series of Transamerica Series Trust, are asset allocation funds (the Asset Allocation Funds) that
invest in underlying series of Transamerica Funds and may own a significant portion of the shares of an underlying fund.
Transactions by the
Asset Allocation Funds may be disruptive to the management of an underlying fund. An underlying fund may experience large redemptions or investments due to transactions in fund shares by the Asset Allocation Funds. While it is impossible to predict
the overall effect of these transactions over time, there could be an adverse impact on an underlying funds performance. In the event of such redemptions or investments, an underlying fund could be required to sell securities or to invest cash
at a time when it may not otherwise desire to do so. Such transactions may increase an underlying funds brokerage and/or other transaction costs. In addition, when the Asset Allocation Funds own a substantial portion of an underlying
funds shares, a large redemption by an Asset Allocation Fund could cause actual expenses to increase, or could result in the underlying funds current expenses being allocated over a smaller asset base, leading to an increase in the
underlying funds expense ratio.
16
Redemptions of underlying fund shares could also accelerate the realization of taxable capital gains in an
underlying fund if sales of securities result in capital gains. The impact of these transactions is likely to be greater when an Asset Allocation Fund purchases, redeems, or owns a substantial portion of an underlying funds shares.
When possible, TAM and/or the sub-adviser will consider how to minimize these potential adverse effects, and may take such actions as it deems
appropriate to address potential adverse effects, including carrying out the transactions over a period of time, although there can be no assurance that such actions will be successful.
Manager:
The investment adviser or sub-adviser to each fund actively manages the
funds investments. Consequently, a fund is subject to the risk that the methods and analyses employed by the investment adviser or sub-adviser in this process may not produce the desired results. This could cause a fund to lose value or its
results to lag relevant benchmarks or other funds with similar objectives.
Market:
The market prices of the
funds securities may go down, sometimes rapidly or unpredictably. If the market prices of the securities owned by the fund fall, the value of your investment in the fund will decline. The value of a security may fall due to general market
conditions, such as real or perceived adverse economic or political conditions, inflation, changes in interest rates or currency rates, lack of liquidity in the markets or adverse investor sentiment. Adverse market conditions may be prolonged and
may not have the same impact on all types of securities. Market prices of securities also may go down due to events or conditions that affect particular sectors or issuers. The fund may experience a substantial or complete loss on any individual
security. The equity and debt capital markets in the U.S. and internationally have experienced unprecedented volatility. The financial crisis that began in 2008 has caused a significant decline in the value and liquidity of many securities; in
particular, the values of some sovereign debt and of securities of issuers that purchase sovereign debt have fallen, credit has become more scarce worldwide and there has been significant uncertainty in the markets. This environment could make
identifying investment risks and opportunities especially difficult for a sub-adviser. These market conditions may continue or get worse. In response to the crisis, the U.S. and other governments and the Federal Reserve and certain foreign central
banks have taken various steps to support financial markets. The withdrawal of this support could negatively affect the value and liquidity of certain securities. In addition, legislation recently enacted in the U.S. calls for changes in many
aspects of financial regulation. The impact of the legislation on the markets, and the practical implications for market participants, may not be fully known for some time.
Changes in market conditions will not have the same impact on all types of securities. The value of a security may also fall due to specific conditions that affect a particular sector of the securities
market or a particular issuer.
Portfolio Selection:
The value of your investment may decrease if the sub-advisers judgment about the quality, relative yield, value or market trends affecting a particular security or issuer, industry, sector, region
or market segment, or about the economy or interest rates is incorrect.
Prepayment or
Call:
Many fixed income securities give the issuer the option to repay or call the security prior to its maturity date. Issuers often exercise this right when interest rates fall.
Accordingly, if a fund holds a fixed income security subject to prepayment or call risk, it may not benefit fully from the increase in value that other fixed income securities generally experience when interest rates fall. Upon prepayment of the
security, a fund would also be forced to reinvest the proceeds at then current yields, which would be lower than the yield of the security that was paid off. This may adversely affect a funds net asset value. In addition, if a fund purchases a
fixed income security at a premium (at a price that exceeds its stated par or principal value), the fund may lose the amount of the premium paid in the event of prepayment.
Small and Medium Capitalization Companies:
Investing in small- and medium-sized companies
involves greater risk than is customarily associated with more established companies. The prices of securities of small and medium capitalization companies generally are more volatile than those of large capitalization companies and are more likely
to be adversely affected than large capitalization companies by changes in earnings results and investor expectations or poor economic or market conditions. Securities of small and medium capitalization companies 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. Smaller capitalization companies often have limited product lines, markets, or financial
resources and their management may lack depth and experience. Such companies usually do not pay significant dividends that could cushion returns in a falling market.
Tactical Asset Allocation:
Tactical asset allocation is an investment strategy that
actively adjusts a funds asset allocation. The funds tactical asset management discipline may not work as intended. The fund may not achieve its objective and may not perform as well as other funds using other asset management styles,
including those based on fundamental analysis (a method of evaluating a security that entails attempting to measure its intrinsic value by examining related economic, financial and other factors) or strategic asset allocation (a strategy that
involves periodically rebalancing the fund in order to maintain a long-term goal for asset allocation). The sub-advisers evaluations and assumptions in selecting underlying funds or individual securities may be incorrect in view of actual
market conditions, and may result in owning securities that under perform other securities.
17
The management process might also result in the fund having exposure to asset classes, countries or regions,
or industries or groups of industries that underperform other management styles. In addition, the funds risk profile with respect to particular asset classes, countries and regions, and industries may change at any time based on the
sub-advisers allocation decisions.
Underlying Exchange Traded Funds:
Because the fund invests its assets in various underlying ETFs, its ability to achieve its investment objective depends largely on the performance of the underlying ETFs in which it invests. Each of the
underlying ETFs in which the fund may invest has its own investment risks, and those risks can affect the value of the underlying ETFs shares and therefore the value of the funds investments. There can be no assurance that the investment
objective of any underlying ETF will be achieved. To the extent that the fund invests more of its assets in one underlying ETF than in another, the fund will have greater exposure to the risks of that underlying ETF. In addition, the fund will bear
a pro rata portion of the operating expenses of the underlying ETFs in which it invests.
An investment in an ETF generally presents the same
primary risks as an investment in a conventional fund (i.e., one that is not exchange-traded) that has the same investment objectives, strategies and policies. The price of an ETF can fluctuate up and down, and the fund could lose money investing in
an ETF if the prices of the securities owned by the ETF go down. In addition, ETFs are subject to the following risks that do not apply to conventional funds: (i) the market price of an ETFs shares may be above or below the shares
net asset value; (ii) an active trading market for an ETFs shares may not develop or be maintained; or (iii) trading of an ETFs shares may be halted if the listing exchanges officials deem such action appropriate, the
shares are delisted from the exchange or the activation of market-wide circuit breakers (which are tied to large decreases in stock prices) halts stock trading generally.
Please note that there are other factors that could adversely affect your investment in a fund and that could prevent the fund from achieving its investment objective. More information about risks appears
in the Statement of Additional Information. Before investing, you should carefully consider the risks that you will assume.
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S
HAREHOLDER
I
NFORMATION
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Investment Adviser
The Board of Trustees is responsible for overseeing the management and business affairs of Transamerica Funds. It oversees the operation of Transamerica Funds by its officers. It also reviews the
management of each funds assets by the investment adviser and sub-advisers. Information about the Trustees and executive officers of Transamerica Funds is contained in the Statement of Additional Information (SAI).
Transamerica Asset Management, Inc. (TAM or the Investment Adviser), located at 570 Carillon Parkway, St. Petersburg, FL 33716,
serves as investment adviser for Transamerica Funds. TAM is responsible for the day-to-day management of Transamerica Multi-Manager Alternative Strategies Portfolio. For each of the other funds, TAM currently hires investment sub-advisers to furnish
investment advice and recommendations and has entered into a sub-advisory agreement with each funds sub-adviser. The Investment Adviser also oversees the sub-advisers and monitors the sub-advisers buying and selling of fund securities
and investment performance. TAM is paid investment advisory fees for its service as investment adviser to each fund. These fees are calculated on the average daily net assets of each fund.
TAM has been a registered investment adviser since 1996. As of December 31, 2011, TAM has approximately $49.12 billion in total assets under management.
TAM is directly owned by Western Reserve Life Assurance Co. of Ohio (77%) and AUSA Holding Company (23%) (AUSA), both of which are
indirect, wholly owned subsidiaries of AEGON NV. AUSA is wholly owned by AEGON USA, LLC (AEGON USA), a financial services holding company whose primary emphasis is on life and health insurance, and annuity and investment products. AEGON
USA is owned by AEGON US Holding Corporation, which is owned by Transamerica Corporation (DE). Transamerica Corporation (DE) is owned by The AEGON Trust, which is owned by AEGON International B.V., which is owned by AEGON NV, a Netherlands
corporation, and a publicly traded international insurance group.
Each fund may rely on an Order from the U.S. Securities and Exchange
Commission (SEC) (Release IC- 23379 dated August 5, 1998) that permits Transamerica Funds and its investment adviser, TAM, subject to certain conditions, and without the approval of shareholders to:
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(1)
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employ a new unaffiliated sub-adviser for a fund pursuant to the terms of a new investment sub-advisory agreement, either as a replacement for an existing sub-adviser
or as an additional sub-adviser;
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(2)
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materially change the terms of any sub-advisory agreement; and
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(3)
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continue the employment of an existing sub-adviser on sub-advisory contract terms where a contract has been assigned because of a change of control of the sub-adviser.
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Pursuant to the Order, each fund has agreed to provide certain information about new sub-advisers and new sub-advisory
agreements to its shareholders.
Advisory Fees Paid for the Fiscal Year Ended October 31, 2011
As of the date of this prospectus, Transamerica Tactical Allocation had not operated for a full fiscal year, so no advisory fee is shown. Advisory fees
are 0.55% of the first $250 million; 0.54% over $250 million up to $500 million; 0.53% over $500 million up to $1.5 billion; 0.52% over $1.5 billion up to $2.5 billion; 0.51% in excess of $2.5 billion.
As of the date of this prospectus, Transamerica Tactical Rotation had not operated for a full fiscal year, so no advisory fee is shown. Advisory fees are
0.55% of the first $250 million; 0.54% over $250 million up to $500 million; 0.53% over $500 million up to $1.5 billion; 0.52% over $1.5 billion up to $2.5 billion; 0.51% in excess of $2.5 billion.
A discussion regarding the Board of Trustees approval of each funds investment advisory agreement will be available in each funds
semi-annual report for the period ended April 30, 2013.
Sub-Adviser(s)
Pursuant to an Investment Sub-advisory Agreement between TAM and the sub-adviser on behalf of the respective fund, the sub-adviser shall make investment
decisions, buy and sell securities for the fund, conduct research that leads to these purchase and sale decisions, and pay broker-dealers a commission for these trades (which can include payments for research and brokerage services).
The sub-adviser receives compensation from TAM.
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Fund
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Sub-Adviser
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Sub-Adviser Address
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Transamerica Tactical Allocation
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AEGON USA Investment
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4333 Edgewood Road NE
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Transamerica Tactical Rotation
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Management, LLC
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Cedar Rapids, IA 52499
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Further Information About The Sub-adviser
AEGON USA Investment Management, LLC, a subsidiary of AEGON N.V., has been a registered investment adviser since December 2001. As of December 31, 2011, AEGON USA Investment Management, LLC has
approximately $112.8 billion in total assets under management.
Portfolio Manager(s)
Each fund is managed by the portfolio manager(s) listed below. The SAI provides additional information about each portfolio managers compensation,
other accounts managed by the portfolio manager, and the portfolio managers ownership in each fund they manage.
Transamerica Tactical
Allocation
Transamerica Tactical Rotation
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Name
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Sub-Adviser
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Positions Over Past
Five Years
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Sridip Mukhopadhyaya, CFA
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AEGON USA Investment Management, LLC
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Portfolio Manager of the fund since 2012; Joined AEGON USA Investment Management, LLC in 2008; Portfolio Manager of Quantitative Strategies; Prior to
2008, various positions held in India and Tanzania ranging from Credit Research to Public Accounting
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David
Halfpap, CFA
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AEGON USA Investment
Management, LLC
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Portfolio
Manager of the fund since 2012; Portfolio Manager with AEGON USA Investment Management, LLC since 1979; Senior Vice President (1995 present); Head of Investment Strategy since 2011; Member of Pension Investment Committee
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Frank Rybinski, CFA
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AEGON USA Investment Management, LLC
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Portfolio Manager of the fund since 2012; Joined AEGON USA Investment Management, LLC in 2008; Portfolio Manager and Credit Strategist; Prior to 2008,
Credit Analyst at UBS Investment Bank
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Disclosure of Portfolio Holdings
A detailed description of eachs policies and procedures with respect to the disclosure of its portfolio holdings is available in the SAI and available on the Transamerica Funds website at
www.transamericafunds.com.
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T
O
C
ONTACT
T
RANSAMERICA
F
UNDS
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Customer Service: 1-888-233-4339
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Internet: www.transamericafunds.com
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Mailing Address:
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Transamerica Fund Services, Inc.
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P.O. Box 219945
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Kansas City, MO 64121-9945
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Overnight Address:
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Transamerica Fund Services, Inc.
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330 W. 9th Street
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Kansas City, MO 64105
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Class A, Class C and Class I shares are offered in this prospectus. Certain information below relates to
Transamerica Funds not offered in this prospectus. Other Transamerica Funds offer additional or different share classes.
The Following
Information Applies to Class A, Class C and Class I Shares
Fill out the New Account Application which is available on our website. Transamerica Funds requires all applications to
include an investment representative or an approved broker-dealer of record. An approved broker-dealer is one that is providing services under a valid dealer sales agreement with the funds distributor.
IRAs and other retirement plan accounts require different applications, which you can request by calling Customer Service or by visiting our website at
www.transamericafunds.com.
Note: To help the U.S. Government fight the funding of terrorism and money laundering activities, the
USA PATRIOT Act requires all financial institutions to obtain, verify, and record information that identifies each person or entity that opens an account. On your application, be sure to include your name, date of birth (if an individual),
residential address and Social Security Number or taxpayer identification number. If there are authorized traders on your account, please provide this information for each trader. If you do not provide this information, your account will not be
established. If Transamerica Funds cannot verify your identity within 30 days from the date your account is established, your account may be closed based on the next calculated net asset value per share (NAV).
Minimum Investment
Class A and Class C Shares:
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Type of Account
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Minimum
Initial
Investment
(per
fund
account)
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Minimum
Subsequent
Investment
(per fund
account)
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Regular Accounts
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$1,000
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$50
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IRA, Roth IRA or
Coverdell ESA
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$1,000
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$50
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Employer-sponsored Retirement Plans (includes 403(b), SEP and SIMPLE IRA plans)
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$1,000
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$50
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Uniform Gift to
Minors (UGMA) or Transfer to Minors (UTMA)
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$1,000
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$50
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Payroll Deduction and Automatic Investment Plans
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$ 500
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$50*
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Class I Shares**:
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Type of Account
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Minimum
Initial
Investment
(per
fund
account)
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Minimum
Subsequent
Investment
(per
fund
account)
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Regular
Accounts
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$1,000,000
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N/A
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IRA, Roth IRA or Coverdell ESA
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$1,000,000
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N/A
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Employer-sponsored Retirement Plans
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Waived
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N/A
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Uniform Gift to Minors (UGMA) or Transfer to Minors (UTMA)
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$1,000,000
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N/A
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Payroll Deduction and Automatic Investment Plans
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$1,000,000
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$50*
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*
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Minimum monthly per fund account investment.
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Note: Transamerica Funds reserves the right to change the amount of these minimums from time to time or to waive them in whole or in part. Omnibus accounts maintained
on behalf of certain 401(k) and other retirement plans are not subject to these account minimum requirements. The minimums may be waived for certain employer-sponsored retirement plans under which the employee limits his or her salary deferral
purchase to one fund account. There are no minimums for wrap accounts for the benefit of clients of certain broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or
Transamerica Capital, Inc. (TCI), and for investments made by a retirement plan described in Section 401(a), 401(k), 401(m), 403(b) or 457 of the Internal Revenue Code.
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**
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Class I shares of the Transamerica Funds listed in this prospectus are currently primarily offered for investment to institutional investors including, but not limited
to, fee-based programs, qualified retirement plans, certain endowment plans and foundations and Directors, Trustees and employees of the funds affiliates. The minimum investment for Class I shares is $1,000,000 per fund account, but will be
waived for certain investors, including fee-based programs, qualified retirement plans, certain endowment plans and foundations, financial intermediaries that submit trades on behalf of underlying investors, shareholders who received Class I shares
in the conversion of Class P shares to Class I shares on February 10, 2012, Directors, Trustees and officers of any Transamerica-sponsored funds, and employees of Transamerica and its affiliates.
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21
By Mail
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Send your completed application and check made payable to Transamerica Fund Services, Inc.
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Through an Authorized Dealer
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The dealer is responsible for opening your account and providing Transamerica Funds with your taxpayer identification number.
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Investors may purchase shares of the funds at the offering price of the shares, which is the net asset value
per share plus any applicable initial sales charge. Please note that purchase requests initiated through an automated service that exceeds $50,000 per day may be rejected and must be submitted by check or via bank wire.
By Check
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Make your check payable and send to Transamerica Fund Services, Inc.
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If you are opening a new account, send your completed application along with your check.
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If you are purchasing shares in an existing account(s), please reference your account number(s) and the Transamerica fund(s) in which you wish to
invest. If you do not specify the fund(s) in which you wish to invest, and your referenced account is invested in one fund, your check will be deposited into such fund.
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Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.
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Transamerica Funds does not accept money orders, travelers checks, starter checks, credit card convenience checks or cash. Cashiers checks
and third-party checks may be accepted, subject to approval by Transamerica Funds.
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By Automatic Investment Plan
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With an Automatic Investment Plan (AIP), a level dollar amount is invested monthly and payment is deducted electronically from your bank
account. Due to your banks requirements, please allow up to 30 days for your AIP to begin. Investments may be made between the 3rd and 28th of each month only, and will occur on the 15th if no selection is made. Call Customer Service for
information on how to establish an AIP or visit our website to obtain an AIP request form.
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By Telephone
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You may request an electronic transfer of funds from your bank account to your Transamerica Funds account. The electronic bank link option must be
established in advance before Automated Clearing House (ACH) purchases will be accepted. Call Customer Service or visit our website at www. transamericafunds.com for information on how to establish an electronic bank link. Due to your
banks requirements, please allow up to 30 days to establish this option.
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Through an Authorized Dealer
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If your dealer has already established your account for you, no additional documentation is needed. Call your dealer to place your order. Transamerica
Funds must receive your payment within three business days after your order is accepted.
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By the Internet
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You may request an electronic transfer of funds from your bank account to your Transamerica Funds account. The electronic bank link option must be
established in advance before ACH purchases will be accepted. Call Customer Service or visit our website at www.transamericafunds.com for information on how to establish an electronic bank link.
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By Payroll Deduction
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You may have money transferred regularly from your payroll to your Transamerica Funds account. Call Customer Service to establish this option.
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By Wire Transfer
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You may request that your bank wire funds to your Transamerica Funds account (note that your bank may charge a fee for such service). You must have an
existing account to make a payment by wire transfer. Ask your bank to send your payment to:
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Bank of
America, NA, Charlotte, NC, ABA#026009593
Credit: Transamerica Funds Acct #3600622064
Ref: Shareholder name, Transamerica fund and account numbers.
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Shares will be purchased at the next determined NAV after receipt of your wire if you have supplied all other required information.
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Other Information
If your check, draft or electronic transfer is returned unpaid by your bank, you will be charged a fee of $20 for each item that has been returned.
Transamerica Funds reserves the right to terminate your electronic draft privileges if the drafts are returned unpaid by your bank.
Transamerica Funds or its agents may reject a request for purchase of shares at any time, in whole or in part, including any purchase under
the exchange privilege and any purchase request that does not include an investment representative or an approved broker-dealer. To the extent authorized by law, Transamerica Funds and each of the funds reserve the right to discontinue offering
shares at any time, to merge or liquidate a class of shares or to cease operations entirely.
Selling shares is also referred to as redeeming shares. You can redeem your shares at any time.
Proceeds from the redemption of your shares will usually be sent within three business days after receipt in good order of your request for redemption
(unless you request to receive payment by wire or another option described below). However, Transamerica Funds has the right to take up to seven days to pay your redemption proceeds, and may postpone payment under certain circumstances, as
authorized by law. In cases where shares have recently been purchased and the purchase money is not yet available, redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.
Shares purchased by wire are immediately available and are not subject to the 15 day holding period.
Please note that redemption requests
greater than $50,000 per day must be submitted in writing. In addition, amounts greater than $50,000 cannot be sent via ACH (check or federal funds wire only). Additionally, requests totaling more than $100,000 must be in writing with an original
signature guarantee for all shareholders.
The electronic bank link option must be established in advance for payments made electronically to
your bank such as ACH or expedited wire redemptions. Call Customer Service to verify this feature is in place on your account or to obtain information on how to establish the electronic bank link.
To request your redemption and receive payment by:
Direct Deposit ACH
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You may request an ACH redemption in writing, by phone or by internet access to your account. Payment should usually be received by your
bank account 2-4 banking days after your request is received in good order. Transamerica Funds does not charge for this payment option. Certain IRAs and qualified retirement plans may not be eligible via the internet.
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Direct Deposit Wire
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You may request an expedited wire redemption in writing or by phone. The electronic bank link must be established in advance. Otherwise, an original
signature guarantee will be required. Wire redemptions have a minimum of $1,000 per wire. Payment should be received by your bank account the next banking day after your request is received in good order. Transamerica Funds charges $10 for this
service. Your bank may charge a fee as well.
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Check to Address of Record
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Written Request
Send a letter
requesting a withdrawal to Transamerica Funds. Specify the fund, account number, and dollar amount or number of shares you wish to redeem. Be sure to include all shareholders signatures and any additional documents, as well as an original
signature guarantee(s) if required. If you are requesting a distribution from an IRA, federal tax withholding of 10% will apply unless you elect otherwise. If you elect to withhold, the minimum tax withholding rate is 10%.
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Telephone or Internet Request
You may request your redemption by phone or internet. Certain IRAs and qualified retirement plans may not be eligible.
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Check to
Another Party/Address
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This request must be in writing, regardless of amount, signed by all account owners with an original signature guarantee.
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Systematic Withdrawal Plan (by Direct Deposit ACH or Check)
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You can establish a Systematic Withdrawal Plan (SWP) either at the time you open your account or at a later date. Call Customer Service for
information on how to establish a SWP, or visit our website to obtain the appropriate form to complete.
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Through an Authorized
Dealer
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You may redeem your shares through an authorized dealer (they may impose a service charge). Contact your Registered Representative or call Customer
Service for assistance.
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Your Request to Sell Your Shares and Receive Payment May Be Subject to:
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The type of account you have and if there is more than one shareholder.
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The dollar amount you are requesting; redemptions over $50,000 must be in writing and those redemptions totaling more than $100,000 require a written
request with an original signature guarantee for all shareholders on the account.
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A written request and original signature guarantee may be required if there have been recent changes made to your account (such as an address change)
or other such circumstances. For your protection, if an address change was made in the last 10 days, Transamerica Funds requires a redemption request in writing, signed by all account owners with an original signature guarantee.
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When redeeming all shares from an account with an active AIP, your AIP will automatically be stopped. Please contact Customer Service if you wish to
re-activate your AIP.
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Each 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.
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Redemption proceeds will be withheld for 15 calendar days from the date of purchase for funds to clear. Certain exceptions may apply.
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Shares will normally be redeemed for cash, although each fund retains the right to redeem its shares in kind. Please see the SAI for more details.
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If you request that a withdrawal check be delivered overnight, a $20 overnight fee will be charged; for Saturday delivery, a $30 overnight fee will be
charged.
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Please see additional information relating to original signature guarantee later in this prospectus.
Involuntary Redemptions
The fund reserves the
right, to the fullest extent permitted by law, to close your account if the account value falls below the funds minimum account balance, including solely due to declines in NAV, or you are deemed to engage in activities that are illegal (such
as late trading) or otherwise believed to be detrimental to the fund (such as market timing).
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You may request an exchange in writing, by phone, or by accessing your account through the internet.
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You can exchange shares in one fund for shares in the same class of another fund offered in this prospectus.
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24
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Class A and C shares minimum exchange to a new fund account is $1,000. This minimum is reduced to $500 per fund account if you elect to establish
an AIP and invest a minimum of $50 per month, per fund account. If you want to exchange between existing fund accounts, the required minimum will be $50 per fund account.
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Class I shares minimum exchange to a new fund account is $1,000,000 per fund account but will be waived for certain investors as outlined within the
Minimum Investment Section.
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An exchange is treated as a redemption of a funds shares, followed by a purchase of the shares of the fund into which you exchanged. Prior to
making exchanges into a fund that you do not own, please read the prospectus for that fund carefully.
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If you exchange all your shares to a new fund, any active systematic plan that you maintain with Transamerica Funds will also carry over to this new
fund unless otherwise instructed.
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In certain circumstances, shares of one class of a fund may also be exchanged directly for shares of another class of the same fund, as described in
the Statement of Additional Information.
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Transamerica Funds reserves the right to modify or terminate the exchange privilege at any time upon 60 days written notice.
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Transamerica Funds reserves the right to deny any exchange request involving transactions between classes of shares. Please review your individual
circumstances with your financial professional.
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The minimum exchange amount may be waived with respect to transactions in omnibus accounts maintained on behalf of certain 401(k) and other retirement
plans.
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Converting Shares
If you hold Class A, C or I2 shares and are eligible to purchase Class I shares as described under the Minimum Investment section, you may be eligible to convert your class A, C or I2 shares to Class
I shares of the same fund, subject to the discretion of Transamerica Fund Services, Inc., to permit or reject such a conversion. Please contact your financial adviser or Customer Service for conversion instructions.
A conversion between share classes of the same fund is a nontaxable event.
If you convert from one class of shares to another, the transaction will be based on the respective NAVs of the two classes on the trade date for the conversion. Consequently, a conversion may provide you
with fewer shares or more shares than you originally owned, depending on that days NAV. At the time of conversion, the total dollar value of your old shares will equal the total dollar value of your new shares. However,
subsequent share price fluctuations may decrease or increase the total dollar value of your new shares compared with that of your old shares.
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C
HOOSING
A
S
HARE
C
LASS
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Individual investors can generally invest in Class A and Class C shares. The amount of your investment and the
amount of time that you plan to hold your shares will determine which class of shares you should choose. You should make this decision carefully because all of your future investments in your account will be in the same share class that you
designate when you open your account. Your financial professional can help you choose the share class that makes the best sense for you.
If
you are investing a large amount and/or plan to hold your shares for a long period, Class A shares may make the most sense for you. If you are investing a lesser amount, you may want to consider Class C shares if you plan to invest for a period
of less than 5 years.
Transamerica Funds may, at any time and in its sole discretion, add, delete, or change the sales charges for any share
class.
Class A Shares Front Load
With Class A shares, you pay an initial sales charge only when you buy shares. (The offering price includes the sales charge.)
There are 12b-1 distribution and service fees of up to 0.30% per year.
If you are investing
$1 million or more in a Transamerica Fund, you can purchase Class A shares without any sales charge. However, if you redeem any of those shares within the first 24 months after buying them, you will pay a 1.00% contingent deferred sales charge
(CDSC), unless they were purchased through a retirement plan described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code, or through a wrap account for the benefit of clients of certain
broker-dealers, financial institutions, or financial planners who have entered into arrangements with Transamerica Funds or TCI. In the event
25
that you exchange Class A shares purchased in an amount of $1 million or more for shares of another fund, you will be charged the CDSC imposed by the fund into which you exchange your
shares. The term of this CDSC will commence on the date that you initially purchase Class A shares of a Transamerica fund in an amount of $1 million or more.
Class C Shares Level Load
With Class C shares, you pay no initial sales charge. You will pay
a 1.00% CDSC if shares are redeemed during the first 12 months. There are 12b-1 distribution and service fees of up to 1.00% per year. Class C shares (formerly Class L shares) purchased prior to March 1, 2004 are subject to the prior CDSC
fee structure which was a 2.00% CDSC if shares are redeemed during the first 12 months, and a 1.00% CDSC if redeemed during the second 12 months. Prior to March 1, 2004, Class C shares were named Class L shares. On June 15, 2004, Class C2
shares were merged into Class C shares; on September 24, 2004, Class M shares were merged into Class C shares.
Investors who invested in
Class C2 shares prior to the merger of Class C2 shares into Class C shares can make additional investments in Class C shares through their Class C2 shares accounts that converted into Class C share accounts without being subject to a CDSC. If you
exchange your shares from such accounts, future purchases of Class C will be subject to the CDSC. For shareholders who also own Class C shares which converted from Class C2 shares, their Class C shares that converted from Class M shares also will
not be subject to a CDSC and will be subject to the same 12b-1 commission structure applicable to their former Class C2 shares.
Currently,
investors who purchase Class C shares of a Transamerica Fund established prior to March 1, 2006 through Merrill Lynch, Pierce, Fenner & Smith Incorporated will not be subject to any CDSC otherwise payable with respect to redemptions of
such Class C shares of the funds. Exchanges of Class C shares into a Transamerica fund established on or after March 1, 2006 through Merrill Lynch, Pierce, Fenner & Smith Incorporated that previously were not subject to a CDSC will
continue to not be subject to such fee. This CDSC waiver may be terminated at any time. New and/or subsequent purchases into Transamerica Funds established on or after March 1, 2006 will be subject to a 1.00% CDSC if shares are redeemed within
12 months of purchase.
The maximum purchase order in Class C shares is $999,999.99.
Contingent Deferred Sales Charge
Your shares may be subject to a CDSC. Dividends and capital gains
are not subject to the sales charge. There is no charge on any increase in the value of your shares. Transamerica Funds will always use the first in, first out method to fulfill your redemption requests. If your shares are worth less than when you
bought them, the charge will be assessed on their current, lower value. In some cases, the sales charge may be waived.
Waivers and/or Reductions of
Charges
Class A Sales Charge Reductions
You can lower the sales charge percentage in the following ways:
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Substantial investments receive lower sales charge rates (see tables below).
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The rights of accumulation allows you, your spouse and children under age 21 to include the value of your existing holdings in any class of
shares of the Transamerica Funds to determine your Class A sales charge. Breakpoints are derived from the daily NAV at the market close, the current combined NAV value at the time of the purchase and the gross amount of the new purchase.
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A Letter of Intent (LOI) allows you, your spouse and children under age 21 to count all share investments, up to a maximum of $1 million,
in a Transamerica fund over the next 13 months, as if you were making them all at once, to qualify for reduced sales charges on your Class A investments. The 13 month period will begin on the date of your first purchase following the execution
of your LOI. The market value of your existing holdings eligible to be aggregated as of the trading day immediately before the start of your LOI period will be credited toward satisfying your LOI. Purchases made at NAV after the establishment of
your LOI (as a result of another waiver or sales charge reduction) shall not count toward meeting the amount stated in your LOI. Transamerica Funds will reserve a portion of your shares to cover any additional sales charge that may apply if your LOI
amount is not met.
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By investing as part of a qualified group. An individual who is a member of a qualified group may purchase Class A shares at the reduced sales
charge applicable to that group as a whole. A qualified group is one which has at least ten members; has been in existence for at least six months; has some purpose in addition to the purchase of mutual fund shares at a discount; has
agreed to include fund sales publications in mailings to members; has arrangements made for access to the
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26
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group which are satisfactory to Transamerica Funds transfer agent; has arrangements satisfactory to Transamerica Funds transfer agent established for verification that the group meets
these requirements; and the groups sole organizational nexus or connection is not that the members are credit card holders of a company, policy holders of an insurance company, customers of a bank or a broker-dealer, clients of an investment
adviser or security holders of a company. Transamerica Funds reserves the right to waive the requirement that the group continue to meet the minimum membership requirement or the requirement that an investor continues to belong to the group in order
to qualify for lower sales charges (but not to waive either of these requirements initially). To establish a group purchase program, both the group itself and each participant must complete an application. Please contact Customer Service
(1-888-233-4339) for further information and assistance. Qualified group accounts are not eligible to be counted under a rights of accumulation or LOI sales charge reduction or waiver with accounts other than accounts in the qualified group.
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By investing in a SIMPLE IRA plan held by Transamerica Fund Services, Inc. with State Street Bank as custodian, you and all plan participants will
receive a reduced sales charge on all plan contributions that exceed quantity discount amounts. SIMPLE IRA plan accounts are not eligible to be counted toward a sales charge reduction or waiver with accounts other than accounts in the SIMPLE IRA
plan.
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Your Class I share investments may count toward a reduction of sales charge paid on Class A shares. You may be able to lower the sales charge
percentage on Class A by requesting rights of accumulation or a letter of intent. If you would like to add one of these features to your Class A share account, please contact Customer Service.
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Class A Share Quantity Discounts
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Amount of Purchase*
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Sales
Charge as %
of Offering
Price
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Sales
Charge as
%
of Amount
Invested
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Under $50,000
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5.50%
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5.82%
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$50,000 to under
$100,000
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4.75%
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4.99%
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$100,000 to under $
250,000
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3.50%
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3.63%
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$250,000 to under $
500,000
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2.75%
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2.83%
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$500,000 to under $
1,000,000
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2.00%
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2.04%
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$1,000,000 and over
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0.00%
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0.00%
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*
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The transfer agent, Transamerica Fund Services, Inc. (TFS), must be notified when a purchase is made that qualifies under any of the above provisions.
Consequently, when a purchaser acquires shares directly from Transamerica Funds, he/she must indicate in his/her purchase order that such purchase qualifies under any of the above provisions, and must provide enough information to substantiate that
claim. When a purchaser acquires shares through a dealer or other financial intermediary, he/she must inform his/her dealer or other financial intermediary of any facts that may qualify a purchase for any of the above provisions, such as, for
example, information about other holdings of Class A shares of the funds that the purchaser has, directly with Transamerica Funds, or through other accounts with dealers or financial intermediaries. To substantiate a claim, it may be necessary
for a purchaser to provide TFS or his/her dealer or other financial intermediary information or records regarding shares of Transamerica Funds held in all accounts (e.g., retirement plan accounts) of the purchaser directly with Transamerica Funds or
with one or several dealers or other financial intermediaries, including to substantiate rights of accumulation accounts held by a spouse and children under age 21.
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Waiver of Class A Initial Sales Charges
Class A shares may be purchased without a sales
charge by:
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Current and former trustees, directors, officers, and employees of Transamerica Funds and its affiliates; employees of Transamerica Funds sub-advisers;
sales representatives and employees of dealers having a sales agreement with Transamerica Funds distributor, TCI; and any family members thereof;
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Any trust, pension, profit-sharing or other benefit plan for any of the foregoing persons;
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Wrap accounts for the benefit of clients of certain broker-dealers, financial institutions, or financial planners who have entered into
arrangements with Transamerica Funds or TCI;
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Employer-sponsored retirement plans described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code with assets of $1 million or
more and whose accounts are held through an Omnibus or Network Level 3 account arrangement;
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Retirement plans described in Section 401(a), 401(k), 401(m), or 457 of the Internal Revenue Code whose accounts are held through an Omnibus or
Network Level 3 account arrangement that purchased Class A shares without a sales charge prior to August 31, 2007;
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Other retirement plans that purchased Class A shares without a sales charge prior to April 28, 2006;
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Other retirement plans whose accounts are held through an arrangement with Morgan Stanley & Co. Incorporated;
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Other retirement plans whose accounts are held through an arrangement with Ascensus (formerly BISYS Retirement);
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27
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Other retirement plans, non-qualified brokerage accounts, and other accounts that are opened through an arrangement with Diversified Investment
Advisors, Transamerica Retirement Services, Clark Consulting or Transamerica Retirement Management;
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Other individual retirement accounts held in the Merrill Lynch Investor Choice Annuity (IRA Series) with Transamerica Advisors Life Insurance Company
and Transamerica Advisors Life Insurance Company of New York; and
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Certain financial intermediaries who have entered into an agreement with TCI to offer shares to self-directed investment brokerage accounts that may or
may not charge a transaction fee to their customers.
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Investments by the retirement plan accounts mentioned above are not
eligible to be counted under a rights of accumulation or letter of intent sales charge reduction or waiver with accounts other than accounts in the retirement plan.
Any person listed above (including retirement plan accounts and retirement plans) who requests a waiver of sales charges must provide adequate information to his/her broker-dealer or other financial
intermediary or the funds distributor to substantiate such request.
As discussed earlier in the prospectus, you can also purchase
Class A shares without an initial sales charge if you are investing $1 million or more in a Transamerica Fund. However, if you redeem any of those shares within the first 24 months after buying them, you will pay a 1.00% CDSC.
Persons eligible to buy Class A shares at NAV may not impose a sales charge when they re-sell those shares.
Waiver of Class A and Class C Contingent Deferred Sales Charges
You will not be assessed a sales charge in the following situations:
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Following the death of the shareholder on redemptions from the deceased persons account only. If this deceased persons account is
re-registered to another name, sales charges would continue to apply to this new account. The transfer agent will require satisfactory proof of death before it determines to waive the CDSC fee.
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Following the total disability of the shareholder (as determined by the Social Security Administration applies only to shares held at the time
the disability is determined). The transfer agent will require satisfactory proof of disability before it determines to waive the CDSC fee.
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On redemptions made under Transamerica Funds systematic withdrawal plan (may not exceed 12% of the account value per fund on the day the
systematic withdrawal plan was established).
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If you redeem your shares and reinvest the proceeds in the same class of any fund within 90 days of redeeming, the sales charge on the first redemption
is waived.
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For clients of broker-dealers that redeem Class C shares for which the selling broker-dealer was not paid an up-front commission by TCI.
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Information on sales charge reductions and/or waivers can also be found (free of charge) on the Transamerica Funds website
at www.transamericafunds.com.
Customer Service
Occasionally, Transamerica Funds experiences high call volume due to unusual market activity or other events that may make it difficult for you to reach
a Customer Service Representative by telephone. If you are unable to reach Transamerica Funds by telephone, please consider visiting our website at www.transamericafunds.com. You may also send instructions by mail, by fax, or by using our automated
phone system at 1-888-233-4339.
Uncashed Checks Issued on Your Account
If any check Transamerica Funds issues is returned by the Post Office as undeliverable, or remains outstanding (uncashed) for six months, we reserve the right to reinvest check proceeds back into your
account at the net asset value next calculated after reinvestment. If applicable, we will also change your account distribution option from cash to reinvest. Interest does not accrue on amounts represented by uncashed checks. In case we are unable
to reinvest check proceeds in the original funds that you held, for example, if a fund has been liquidated or is closed to new investments, we reserve the right to reinvest the proceeds in Transamerica Money Market.
28
Minimum Dividend Check Amounts
To control costs associated with issuing and administering dividend checks, we reserve the right not to issue checks under a specified amount. For accounts with the cash by check dividend distribution
option, if the dividend payment total is less than $10, the distribution will be reinvested into the account and no check will be issued.
Minimum
Account Balance
Due to the proportionately higher cost of maintaining customer fund accounts with balances below the stated minimums for
each class of shares, Transamerica Funds reserves the right to close such accounts or assess an annual fee on such fund accounts to help offset the costs associated with maintaining the account. Transamerica Funds generally provides a 60-day
notification to the address of record prior to assessing a minimum fund account fee, or closing any fund account. The following describes the fees assessed against fund accounts with balances below the stated minimum:
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Account Balance (per fund account)
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Fee
Assessment (per fund account)
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If your balance is below $1,000 per fund
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$25 annual fee assessed, until balance reaches $1,000
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account, including solely due to declines
in
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NAV
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No fees will be charged on:
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accounts opened within the preceding 12 months
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accounts with an active monthly Automatic Investment Plan or payroll deduction ($50 minimum per fund account)
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accounts owned by an individual that, when combined by Social Security Number, have a balance of $5,000 or more
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accounts owned by individuals in the same household (by address) that have a combined balance of $5,000 or more
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accounts for which Transamerica Funds in its discretion has waived the minimum account balance requirements
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UTMA/UGMA accounts (held at Transamerica Funds)
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State Street Custodial Accounts (held at Transamerica Funds)
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Coverdell ESA accounts (held at Transamerica Funds)
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Omnibus and Network Level 3 accounts
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While there is currently no minimum account size for maintaining a Class I share account, the funds reserve the right, without prior notice, to establish a minimum amount required to maintain an account.
Telephone Transactions
Transamerica
Funds and its transfer agent, TFS are not liable for complying with telephone instructions that are deemed by them to be genuine. Transamerica Funds and TFS will employ reasonable procedures to help ensure telephone instructions are genuine. These
procedures may include requiring personal identification, providing written confirmation of transactions, and tape recording conversations. In situations where Transamerica Funds or TFS reasonably believe they were acting on genuine telephone
instructions, you bear the risk of loss. Transamerica Funds reserves the right to modify the telephone redemption privilege at any time.
Retirement
and ESA State Street Account Maintenance Fees
Retirement plan and Coverdell ESA State Street accounts are subject to an annual custodial
fee of $15 per fund account, with a maximum fee of $30 per Social Security Number. For example, an IRA in two fund accounts would normally be subject to a $30 annual custodial fee. An A share account that holds shares converted from a B-share
account shall be considered as part of the original B share account for purposes of this fee. The fee is waived if the total of the retirement plan and ESA account(s) value per Social Security Number is more than $50,000.
Professional Fees
Your financial professional
may charge a fee for his or her services. This fee will be in addition to any fees charged by Transamerica Funds. Your financial professional will answer any questions that you may have regarding such fees.
29
Signature Guarantee
An original signature guarantee assures that a signature is genuine so that you are protected from unauthorized account transactions. Notarization is not an acceptable substitute. Acceptable guarantors
only include participants in the Securities Transfer Agents Medallion Program (STAMP2000). Participants in STAMP2000 may include financial institutions such as banks, savings and loan associations, trust companies, credit unions,
broker-dealers, and member firms of a national securities exchange.
An original signature guarantee is required if any of the following is
applicable:
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You request a redemption or distribution transaction totaling more than $100,000 or, in the case of an IRA with a market value in excess of $100,000,
you request a custodian to custodian transfer.
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You would like a check made payable to anyone other than the shareholder(s) of record.
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You would like a check mailed to an address which has been changed within 10 days of the redemption request.
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You would like a check mailed to an address other than the address of record.
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You would like your redemption proceeds wired to a bank account other than a bank account of record.
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You are adding or removing a shareholder from an account.
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You are changing ownership of an account.
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When establishing an electronic bank link, if the Transamerica Funds account holders name does not appear on the check.
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The funds reserve the right to require an original signature guarantee under other circumstances or to reject or delay a
redemption on certain legal grounds.
An original signature guarantee may be refused if any of the following is applicable:
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|
It does not appear valid or in good form.
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The transaction amount exceeds the surety bond limit of the signature guarantee.
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The guarantee stamp has been reported as stolen, missing or counterfeit.
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Employer Sponsored Accounts
If you participate in an employer sponsored retirement plan and wish to
make an allocation change to your current fund selection, you or your financial professional must notify Transamerica Funds by phone or in writing. Please also remember to inform your employer of the change(s) to your fund allocation. Documentation
for allocations submitted online or in writing from your employer will be used to allocate your contributions. This documentation will supersede all other prior instructions received from you or your financial professional. (Note: If you perform a
partial or complete exchange to a new fund selection, your current fund allocation will remain unchanged for future contributions unless specified otherwise.)
E-Mail Communication
As e-mail communications may not be secure, and because we are unable to take
reasonable precautions to verify your shareholder and transaction information, we cannot respond to account-specific requests received via e-mail. For your protection, we ask that all account specific requests be submitted only via telephone, mail
or through the secure link on our website.
Reinvestment Privilege (Does not apply to Class I shares)
Within a 90-day period after you sell your shares, you have the right to reinvest your money in any fund of the same class. You will not
incur a new sales charge if you use this privilege within the allotted time frame. Any contingent deferred sales charge (CDSC) you paid on your shares will be credited to your account. You may reinvest the proceeds of a Class B share
sale (less the CDSC) in Class A shares without paying the up-front sales charge. To take advantage of the 90-day reinvestment privilege, a written request must accompany your investment check.
Statements and Reports
Transamerica Funds will
send you a confirmation statement after every transaction that affects your account balance or registration, with the exception of systematic transactions or transactions necessary to assess account fees. Systematic transactions and fees will be
shown on your next regularly scheduled quarterly statement. Information regarding these fees is
30
disclosed in this prospectus. Please review the confirmation statement carefully and promptly notify Transamerica Funds of any error. Information about the tax status of the prior years
income dividends and capital gains distributions will be mailed to shareholders early each year.
Please retain your statements. If you
require historical statements, Transamerica Funds may charge $10 per statement year up to a maximum of $50 per Social Security Number. Financial reports for the funds, which include a list of the holdings, will be mailed twice a year to all
shareholders.
e-Delivery
By
enrolling in eDelivery, you are notified via e-mail when shareholder documents are available for viewing on our website such as account statements, financial transaction confirmations, prospectuses, tax forms, and annual and semi-annual reports.
With eDelivery, you can save time by receiving e-mail notifications days before documents might be received through the postal service; reduce clutter by reducing the amount of paper for filing, shredding, or recycling; lower environmental impact by
cutting paper waste and transportation requirements; and enjoy added security by accessing your information electronically through our secure website link.
Once your account is established, visit our website at www.transamericafunds.com. Click on Resources, and select Individual Investor. When you have logged into your account, select the Electronic
Delivery option and follow the simple enrollment steps provided.
Market Timing/Excessive Trading
Some investors try to profit from various short-term or frequent trading strategies known as market timing. Examples of market timing include switching
money into funds when their share prices are expected to rise and taking money out when their share prices are expected to fall, and switching from one fund to another and then back again after a short period of time. As money is shifted in and out,
a fund may incur expenses for buying and selling securities. Excessive purchases, redemptions or exchanges of fund shares may disrupt portfolio management, hurt fund performance and drive fund expenses higher. For example, a fund may be forced to
liquidate investments as a result of short-term trading and incur increased brokerage costs or realize taxable capital gains without attaining any investment advantage. These costs are generally borne by all shareholders, including long-term
investors who do not generate these costs.
Transamerica Funds Board of Trustees has approved policies and procedures that are designed
to discourage market timing or excessive trading, which include limitations on the number of transactions in fund shares, as described in this prospectus. If you intend to engage in such practices, we request that you do not purchase shares of any
of the funds. Each fund reserves the right to reject any request to purchase shares, including purchases in connection with an exchange transaction, which the fund reasonably believes to be in connection with market timing or excessive trading.
While the funds discourage market timing and excessive short-term trading, the funds cannot always recognize or detect such trading,
particularly if it is facilitated by financial intermediaries or done through Omnibus Account arrangements. Transamerica Funds distributor has entered into agreements with intermediaries requiring the intermediaries to provide certain
information to help identify harmful trading activity and to prohibit further purchases or exchanges by a shareholder identified as having engaged in excessive trading. There is no guarantee that the procedures used by financial intermediaries will
be able to curtail frequent, short-term trading activity. For example, shareholders who seek to engage in frequent, short-term trading activity may use a variety of strategies to avoid detection, and the financial intermediaries ability to
deter such activity may be limited by operational and information systems capabilities. Due to the risk that the funds and financial intermediaries may not detect all harmful trading activity, it is possible that shareholders may bear the risks
associated with such activity.
Orders to purchase, redeem or exchange shares forwarded by certain omnibus accounts with Transamerica Funds
will not be considered to be market timing or excessive trading for purposes of Transamerica Funds policies. However, the market timing and excessive trading policies of these omnibus firms or plans may apply to transactions by the underlying
shareholders.
Reallocations in underlying series of Transamerica Funds by an Asset Allocation Fund that invests in other series of
Transamerica in furtherance of a funds objective are not considered to be market timing or excessive trading.
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How Share Price Is Determined
The price at which shares are purchased or redeemed is the NAV that is next calculated following receipt and acceptance of a purchase order in good order or receipt of a redemption order in good order by
the fund, an authorized intermediary, or the mail processing center located in Kansas City, Missouri.
When Share Price Is Determined
The NAV of each fund (or class thereof) is determined on each day the New York Stock Exchange (NYSE) is open for business. The NAV is not
determined on days when the NYSE is closed (generally New Years Day, Martin Luther King Jr. Day, Presidents Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas). Foreign securities may trade in their
primary markets on weekends or other days when a fund does not price its shares (therefore, the value of a funds foreign securities may change on days when shareholders will not be able to buy or sell shares of the funds).
Purchase orders received in good order and accepted, and redemption orders received in good order, before the close of business on the NYSE, usually 4:00
p.m. Eastern Time, receive the NAV determined as of the close of the NYSE that day (plus or minus applicable sales charges). Purchase and redemption requests received after the NYSE is closed receive the NAV determined as of the close of the NYSE
the next day the NYSE is open.
How NAV Is Calculated
The NAV of each fund (or class thereof) is calculated by taking the value of its net assets and dividing by the number of shares of the fund (or class) that are then outstanding.
The Board of Trustees has approved procedures to be used to value the funds securities for the purposes of determining the funds NAV. The
valuation of the securities of the funds is determined in good faith by or under the direction of the Board. The Board has delegated certain valuation functions for the funds to TAM.
In general, securities and other investments (including shares of ETFs) are valued based on market prices at the close of regular trading on the NYSE. Fund securities (including shares of ETFs) listed or
traded on domestic securities exchanges or the NASDAQ/NMS, including dollar-dominated foreign securities or ADRs, are valued at the closing price on the exchange or system where the security is principally traded. With respect to securities traded
on the NASDAQ/NMS, such closing price may be the last reported sale price or the NASDAQ Official Closing Price (NOCP). If there have been no sales for that day on the exchange or system where the security is principally traded, then the
value should be determined with reference to the last sale price, or the NOCP, if applicable, on any other exchange or system. If there have been no sales for that day on any exchange or system, a security is valued at the closing bid quotes on the
exchange or system where the security is principally traded, or at the NOCP, if applicable. Foreign securities traded on U.S. exchanges are generally priced using last sale price regardless of trading activity. Securities traded over-the-counter are
valued at the last bid price. The market price for debt obligations is generally the price supplied by an independent third party pricing service, which may use market prices or quotations or a variety of fair value techniques and methodologies.
Short-term debt obligations that will mature in 60 days or less are valued at amortized cost, unless it is determined that using this method would not reflect an investments fair value. The prices that the fund uses may differ from the amounts
that would be realized if the investments were sold and the differences could be significant, particularly for securities that trade in relatively thin markets and/or markets that experience extreme volatility. Foreign securities generally are
valued based on quotations from the primary market in which they are traded, and are converted from the local currency into U.S. dollars using current exchange rates. Market quotations for securities prices may be obtained from automated pricing
services. Shares of open-end funds (other than ETF shares) are generally valued at the net asset value per share reported by that investment company. ETF shares are valued at the most recent sale price or official closing price on the exchange on
which they are traded.
When a market quotation for a security is not readily available (which may include closing prices deemed to be
unreliable because of the occurrence of a subsequent event), a valuation committee appointed by the Board of Trustees may, in good faith, establish a value for the security in accordance with fair valuation procedures adopted by the Board. The types
of securities for which such fair value pricing may be required include, but are not limited to: foreign securities, where a significant event occurs after the close of the foreign market on which such security principally trades that is likely to
have changed the value of such security, or the closing value is otherwise deemed unreliable; securities of an issuer that has entered into a restructuring; securities whose trading has been halted or suspended; fixed-income securities that have
gone into default and for which there is
32
no current market value quotation; and securities that are restricted as to transfer or resale. The funds use a fair value model developed by an independent third party pricing service to price
foreign equity securities on days when there is a certain percentage change in the value of a domestic equity security index, as such percentage may be determined by TAM from time to time.
Valuing securities in accordance with fair value procedures involves greater reliance on judgment than valuing securities based on readily available market quotations. The valuation committee makes fair
value determinations in good faith in accordance with the funds valuation procedures. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service. There can be no assurance that a fund
could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the fund determines its NAV.
Distribution of Shares
Distribution Plans
The Board of Trustees of Transamerica Funds has adopted a 12b-1 Plan for each class of shares of each fund (except Class I shares). The
Plan provides for payments of distribution and service fees, based on annualized percentages of daily net assets, to TCI, broker-dealers, financial intermediaries and others.
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Distribution of Class A Shares
Under the Plan, the funds pay distribution and service fees of up to 0.30% for Class A shares.
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Distribution of Class C Shares
Under the Plan, the funds pay distribution and service fees of up to 1.00% for Class C shares.
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The Effect of Rule 12b-1 Plans
Because the funds have 12b-1 Plans, even though Class C shares do not carry up-front sales loads, the higher distribution and service fees payable by those shares may, over time, be higher than the total fees paid by owners of Class A shares.
In general, because 12b-1 Plan fees are paid on an ongoing basis, these fees will increase the cost of your investment and may cost more than other types of sales charges. For a complete description of the funds 12b-1 Plans, see the SAI.
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Underwriting Agreement
Transamerica Funds has an Underwriting Agreement with TCI, located at 4600 South Syracuse Street, Suite 1100, Denver, CO 80237. TCI is an affiliate of TAM and Transamerica Funds. Under this agreement, TCI
underwrites and distributes all classes of fund shares and bears the expenses of offering these shares to the public. The funds may pay TCI, or its agent, fees for its services. Of the distribution and service fees it usually receives for
Class A shares, TCI, or its agent, may reallow or pay to brokers or dealers who sold them 0.25% of the average daily net assets of those shares. In the case of Class C shares, TCI, or its agent, reallows or pays to brokers, dealers or
intermediaries its entire fee to those entities who sold them.
Other Distribution or Service Arrangements
TCI, TAM and their affiliates may enter into arrangements with affiliated entities that provide administrative, recordkeeping and other services with
respect to one or more of the funds. Payment for these services is made by TCI, TAM and their affiliates out of past profits and other available sources and may take the form of internal credit, recognition or cash payments. TCI, TAM and their
affiliates may also enter into similar arrangements with unaffiliated entities.
TCI engages in wholesaling activities designed to support,
maintain, and increase the number of financial intermediaries who sell shares of Transamerica Funds. Wholesaling activities include, but are not limited to, recommending and promoting, directly or through intermediaries, Transamerica Funds to
financial intermediaries and providing sales training, retail broker support and other services. Payment for these activities is made by TCI, TAM and their affiliates out of past profits and other available sources, including revenue sharing
payments from others.
TCI (in connection with, or in addition to, wholesaling services), TAM and fund sub-advisers, directly or through TCI,
out of their past profits and other available sources, provide cash payments or non-cash compensation to some, but not all, brokers and other financial intermediaries who have sold shares of the funds, promote the distribution of the funds or render
investor services to fund shareholders. Such payments and compensation are in addition to the sales charges, Rule 12b-1 Plan fees, service fees and other fees that may be paid, directly or indirectly, to such brokers and other financial
intermediaries. These arrangements are sometimes referred to as revenue sharing arrangements. The amount of revenue sharing payments is substantial and may be substantial to any given recipient. The presence of these payments and the
basis on which an intermediary compensates its registered representatives or salespersons may create an incentive for a particular intermediary, registered representative or salesperson to highlight, feature or recommend the funds, at least in part,
based on the level of
33
compensation paid. Revenue sharing arrangements are separately negotiated. Revenue sharing is not an expense of the funds, is not reflected in the fees and expenses sections of this prospectus
and does not change the price paid by investors for the purchase of a funds shares or the amount received by a shareholder as proceeds from the redemption of fund shares.
Such additional cash payments may be made to brokers and other financial intermediaries that provide services to Transamerica Funds and/or shareholders in Transamerica Funds, including (without
limitation) shareholder servicing, marketing support and/or access to meetings and/or events, sales representatives and management representatives of the broker or other financial intermediaries. Cash compensation may also be paid to brokers and
other financial intermediaries for inclusion of a Transamerica fund on a sales list, including a preferred or select sales list, in other sales programs, or as an expense reimbursement or compensation in cases where the broker or other financial
intermediary provides services to fund shareholders. To the extent permitted by applicable law, TCI and other parties may pay or allow other incentives and compensation to brokers and other financial intermediaries. TCI and the other parties making
these payments generally assess the advisability of continuing making these payments periodically.
These cash payments may take a variety of
forms, including (without limitation) reimbursement of ticket charges, additional compensation for sales, on-going fees for shareholder servicing and maintenance of investor accounts, and finders fees that vary depending on the fund or share
class and the dollar amount of shares sold. Revenue sharing payments can be calculated: (i) as a percentage of gross or net sales; (ii) as a percentage of gross or net assets under management; and/or (iii) as a fixed or negotiated
flat fee dollar amount. As of December 31, 2011, TCI may make periodic revenue sharing payments to brokers and other financial intermediaries, such as monthly or quarterly. These periodic payments are equal to a percentage of periodic sales,
ranging from 5 basis points (0.05%) to 45 basis points (0.45%) or equal to a percentage of assets under management ranging from 2.5 basis points (0.025%) to 20 basis points (0.20%). In 2011, TCI paid flat annual fees ranging from $15,000 to
$100,000, which included at times a series of meetings and/or events of other broker-dealers and banks.
As of December 31, 2011, TCI had
such revenue sharing arrangements with at least 15 brokers and other financial intermediaries, of which some of the more significant include: Compass Brokerage, Inc.; Hantz Financial Services, Inc.; US Bancorp Investments, Inc.; Suntrust Investments
Services; CCO Investments Services Corp.; LPL Financial; Raymond James Financial Services; Ameriprise Financial Services, Inc.; Bank of America Merrill Lynch; Citigroup-Morgan Stanley Smith Barney; PNC Investments; Raymond James and
Associates; UBS Financial Services; and Wells Fargo Advisors, LLC. For the calendar year ended December 31, 2011, TCI paid or expects to pay approximately $7,110,000 to various brokers and other financial intermediaries in connection with
revenue sharing arrangements. TCI expects to have revenue sharing arrangements with a number of brokers and other financial intermediaries in 2012, including some or all of the foregoing brokers and financial intermediaries and AXA Advisors, LLC,
among others, on terms similar to those discussed above.
For the same period, TCI received revenue sharing payments totaling $648,039 from
the following financial services firms to participate in functions, events and meetings, among other things: Alliance Bernstein L.P, BlackRock Financial Management, Inc, CBRE Clarion Securities, Jennison Associates LLC, J.P. Morgan Investment,
Neuberger Berman Management Inc., MFS Investment Management, Natixis Global Asset Management, Oppenheimer Funds, Inc., Pacific Investment Management Company LLC, Schroder Investment Management North America, Inc., S.A. Federated Investors, LLC,
Transamerica Investment Management, LLC and Wellington Management Company, LLP.
TAM also serves as investment adviser to certain funds of
funds that are underlying investment options for Transamerica insurance products. TCI and its affiliates receive revenue sharing payments from affiliates of certain underlying unaffiliated funds for the provision of services to investors and
distribution activities.
In addition, while TCI typically pays most of the sales charge applicable to the sale of fund shares to brokers and
other financial intermediaries through which purchases are made, TCI may, on occasion, pay the entire sales charge. (Additional information about payments of sales charges to brokers is available in the section titled Dealer Reallowances
of the SAI.)
From time to time, TCI, its affiliates and/or TAM and/or fund sub-advisers may also pay non-cash compensation to brokers and
other financial intermediaries and their sales representatives in the form of, for example: (i) occasional gifts; (ii) occasional meals, tickets or other entertainment; and/or (iii) sponsorship support of broker marketing events or
activities. For example, such non-cash compensation may include in part, assistance with the costs and expenses associated with travel, lodging, educational meetings, seminars, meetings and conferences, entertainment and meals to the extent
permitted by law.
The non-cash compensation to sales representatives and compensation or reimbursement received by brokers and other
financial intermediaries through sales charges, other fees payable from the funds, and/or revenue sharing arrangements for selling shares of the funds may be more or less than the overall compensation or reimbursement on similar or other products
and may
34
influence your broker or other financial intermediary to present and recommend the funds over other investment options available in the marketplace. In addition, depending on the arrangements in
place at any particular time, your broker or other financial intermediary may have a financial incentive for recommending a particular class of fund shares over other share classes.
Shareholders may obtain more information about these arrangements, including the conflicts of interests that such arrangements may create, from their brokers and other financial intermediaries, and should
so inquire if they would like additional information. A shareholder may ask his/her broker or financial intermediary how he/she will be compensated for investments made in the funds. Revenue sharing payments, as well as payments under the
shareholder services and distribution plan (where applicable), also benefit TAM, TCI and their affiliates to the extent the payments result in more assets being invested in the funds on which fees are being charged.
Although a fund may use financial firms that sell fund shares to effect transactions for the funds portfolio, the fund and its investment adviser
or sub-adviser will not consider the sale of fund shares as a factor when choosing financial firms to effect those transactions.
Class I
shares of the funds may be offered through certain brokers and financial intermediaries (service agents) that have established a shareholder servicing relationship with Transamerica Funds on behalf of their customers. Service agents may
impose additional or different conditions than Transamerica Funds on purchases, redemptions or exchanges of fund shares by their customers. Service agents may also independently establish and charge their customers transaction fees, account fees or
other amounts in connection with purchases, sales and redemptions of fund shares in addition to any fees charged by Transamerica Funds. These additional fees may vary over time and would increase the cost of the customers investment and lower
investment returns. Each service agent is responsible for transmitting to its customers a schedule of any such fees and information regarding any additional or different conditions regarding purchases, redemptions and exchanges. Shareholders who are
customers of service agents should consult their service agents for information regarding these fees and conditions. Among the service agents with whom Transamerica Funds may enter into a shareholder servicing relationship are firms whose business
involves or includes investment consulting, or whose parent or affiliated companies are in the investment consulting business, that may recommend that their clients utilize TAMs investment advisory services or invest in the funds or in other
products sponsored by TAM and its affiliates.
Distributions and Taxes
Taxes on Distributions in General
Each fund will distribute all or substantially all of its net
investment income and net capital gains to its shareholders each year. Each fund generally pays any dividends and other distributions annually, except that Transamerica Tactical Allocation pays quarterly. If necessary, each fund may make
distributions at other times as well.
The following are guidelines for how certain distributions by a fund are generally taxed to
non-corporate shareholders under current federal income tax law:
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Distributions of net capital gain (i.e., the excess of net long-term capital gain over net short-term capital loss) will be taxed as long-term capital
gains, regardless of how long the shareholders have held their shares. For taxable years beginning before January 1, 2013, the maximum federal income tax rate for long-term capital gains is 15% (0% for individuals in the 10% and 15% federal tax
brackets).
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For taxable years beginning before January 1, 2013, distributions reported as paid from a funds qualified dividend income will
be taxable to shareholders as qualified dividend income at a maximum rate of 15% (0% for individuals in the 10% and 15% federal tax brackets). Qualified dividend income generally is income derived from certain dividends from U.S. corporations or
certain foreign corporations that are either incorporated in a U.S. possession or eligible for tax benefits under certain U.S. income tax treaties. In addition, dividends that a fund receives in respect of stock of certain foreign corporations will
be qualified dividend income if that stock is readily tradable on an established U.S. securities market. Note that a shareholder (and the fund in which the shareholder invests) will have to satisfy certain holding period requirements in order to
obtain the benefit of the lower tax rates applicable to qualified dividend income.
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Other distributions generally will be taxed at the ordinary income tax rate applicable to the shareholder.
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The tax rates in the first two bullets above do not apply to corporate shareholders. For taxable years beginning on or after January 1, 2013,
distributions of net capital gains will be taxable to non-corporate shareholders at a maximum rate of 20%, and distributions of a funds dividend income will be taxable to shareholders at ordinary income tax rates.
A fund will not generally have to pay income tax on amounts it distributes to shareholders. Shareholders will generally be taxed on distributions,
whether such distributions are paid in cash or reinvested in additional shares.
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If a fund declares a dividend in October, November, or December, payable to shareholders of record in such
month, and pays it in the following January, shareholders will be taxed on the dividend as if they received it in the year in which it was declared.
The funds will send you a tax report annually summarizing the amount and tax aspects of your distributions. If you buy shares of a fund shortly before it makes a distribution, the distribution generally
will be taxable to you even though it may actually be a return of a portion of your investment. This is known as buying a dividend.
Investors who invest through tax-deferred accounts, such as IRAs, 403(b) accounts, and qualified retirement plans, will ordinarily not be subject to tax
until a distribution is made from the account, at which time such distribution is generally taxed as ordinary income. These accounts are subject to complex tax rules, and tax-deferred account investors should therefore consult their tax advisers
regarding their investments in a tax-deferred account.
Taxes on the Sale or Exchange of Shares
If you sell shares of a fund or exchange them for shares of another fund, you generally will have a capital gain or loss, which will generally be a
long-term capital gain or loss if you held the shares for more than one year; otherwise it will generally be a short-term capital gain or loss. Any loss recognized on shares held for six months or less will be treated as a long-term capital loss to
the extent of any amounts treated as distributions of long-term capital gain that were received with respect to the shares.
Any gain or loss
on the sale or exchange of shares is computed by subtracting your tax basis in the shares from the redemption proceeds in the case of a sale or the value of the shares received in the case of an exchange. Because your tax basis depends on the
original purchase price and on the price at which any dividends may have been reinvested, you should be sure to keep account statements so that you or your tax return preparer will be able to determine whether a sale will result in a taxable gain or
loss.
Withholding Taxes
A fund in
which you invest may be required to apply backup withholding of U.S. federal income tax on all distributions payable to you if you fail to provide the funds with your correct taxpayer identification number or to make required certifications, or if
you have been notified by the IRS that you are subject to backup withholding. The backup withholding rate is currently 28% and is scheduled to increase to 31% in 2013. Backup withholding is not an additional tax, but is a method by which the IRS
ensures that it will collect taxes otherwise due. Any amounts withheld may be credited against your U.S. federal income tax liability. Backup withholding will not be applied to payments that have been subject to the 30% withholding tax applicable to
shareholders that are not U.S. persons.
Dividends and certain other payments (but not distributions of net capital gains or exempt-interest
dividends) to persons who are not citizens or residents of the United States or U.S. entities (Non-U.S. Persons) are generally subject to U.S. tax withholding at the rate of 30%. Each fund intends to withhold U.S. federal income tax at
the rate of 30% on taxable distributions and other payments to Non-U.S. Persons that are subject to withholding, regardless of whether a lower rate may be permitted under an applicable treaty.
Non-Resident Alien Withholding
If you are a
Non-U.S. Person, you must provide a U.S. mailing address to establish an account unless your broker-dealer firm submits your account through the National Securities Clearing Corporation. Your broker-dealer will be required to submit a foreign
certification form. Investors changing a mailing address to a non-U.S. address will be required to have a foreign certification form completed by their broker-dealer and returned to us before future purchases can be accepted. Additionally, those
shareholders will need to provide an appropriate tax form (generally, Form W-8BEN) and documentary evidence and letter of explanation. Unless certain non-U.S. entities that hold fund shares comply with IRS requirements that will generally require
them to report information regarding U.S. persons investing in, or holding accounts with, such entities, a 30% withholding tax may apply to fund distributions (but not distributions of exempt-interest dividends) payable to such entities after
December 31, 2013 and redemptions and certain capital gain dividends payable to such entities after December 31, 2014.
Other Tax
Information
This tax discussion is for general information only. In addition to federal income taxes, you may be subject to state, local
or foreign taxes on payments received from, and investments made in shares of, a Transamerica fund. More information is provided in the SAI of the funds. You should also consult your own tax adviser for information regarding all tax consequences
applicable to your investments in Transamerica Funds.
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Investment Policy Changes
A fund that has a policy of investing, under normal circumstances, at least 80% of its assets (defined as net assets plus the amount of any borrowings for investment purposes) in the particular type of
securities implied by its name will provide its shareholders with at least 60 days prior written notice before making changes to such policy. Such notice will comply with the conditions set forth in any applicable SEC rules then in effect.
Unless expressly designated as fundamental, all policies and procedures of the funds, including their investment objectives, may be changed
at any time by the Board of Trustees without shareholder approval. The investment strategies employed by a fund may also be changed without shareholder approval.
To the extent authorized by law, Transamerica Funds and each of the funds reserve the right to discontinue offering shares at any time, to merge or liquidate a class of shares or to cease operations
entirely.
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Financial Highlights are not included in this prospectus because each fund had not commenced operations prior to the date
of this prospectus.
38
Notice of Privacy Policy
Protecting your privacy is very important to us. We want you to understand what information we collect and how we use it. We collect and use nonpublic personal information in connection with
providing our customers with a broad range of financial products and services as effectively and conveniently as possible. We treat nonpublic personal information in accordance with our Privacy Policy.
What Information We Collect and From Whom We Collect It
We may collect nonpublic personal information about you from the following sources:
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Information we receive from you on applications or other forms, such as your name, address, and account number;
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Information about your transactions with us, our affiliates, or others, such as your account balance and purchase/redemption history; and
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Information we receive from non-affiliated third parties, including consumer reporting agencies.
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What Information We Disclose and To Whom We Disclose It
We do not disclose any nonpublic personal information about current or former customers to anyone without their express consent, except as permitted by law. We may disclose the nonpublic personal
information we collect, as described above, to persons or companies that perform services on our behalf and to other financial institutions with which we have joint marketing agreements. We will require these companies to protect the confidentiality
of your nonpublic personal information and to use it only to perform the services for which we have hired them.
Our Security Procedures
We restrict access to your nonpublic personal information and only allow disclosures to persons and companies as permitted by law to
assist in providing products or services to you. We maintain physical, electronic, and procedural safeguards to protect your nonpublic personal information and to safeguard the disposal of certain consumer information.
If you have any questions about our Privacy Policy, please call 1-888-233-4339 on any business day between 8 a.m. and 7 p.m. Eastern Time.
Note:
This Privacy Policy applies only to customers that have a direct relationship with us or our affiliates. If you own shares of our
funds in the name of a third party such as a bank or broker-dealer, its privacy policy may apply to you instead of ours.
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Both
the investment returns and principal value of mutual funds will fluctuate over time so that shares, when redeemed, may be worth more or less than their original cost.
Transamerica Funds
P.O. Box 9012
Clearwater, FL 33758-9012
Customer Service: 1-888-233-4339
Shareholder inquiries and transaction requests should be mailed to:
Transamerica
Fund Services, Inc.
P.O. Box 219945
Kansas City, MO 64121-9945
ADDITIONAL INFORMATION about these funds is contained in the Statement of Additional Information, dated October 31, 2012, as supplemented from time to time, and in the annual and semi-annual reports
to shareholders. The Statement of Additional Information is incorporated by reference into this prospectus. Other information about these funds has been filed with and is available from the SEC. Information about the funds (including the Statement
of Additional Information) can be reviewed and copied at the SECs Public Reference Room in Washington, DC. Information on the operation of the public reference room may be obtained by calling the SEC at 1-202-551-8090. Copies of this
information may be obtained upon payment of a duplication fee, by electronic request at the following e-mail address, publicinfo@sec.gov, or by writing to the Public Reference Section of the SEC, Washington, DC 20549-1520. Reports and other
information about the funds are also available on the SECs Internet site at http://www.sec.gov.
To obtain a copy of the Statement of Additional Information or the annual and semi-annual reports, without charge, or to request other information or make other inquiries about these funds, call or write
to Transamerica Funds at the phone number or address above or visit Transamerica Funds website at www.transamericafunds.com. In the Transamerica Funds annual report, you will find a discussion of the market conditions and investment
strategies that significantly affected the funds performance during the last fiscal year.
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www.transamericafunds.com
Sales Support: 1-800-851-7555
Distributor:
Transamerica Capital, Inc.
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The Investment Company Act File Number for Transamerica Funds is 811-04556.
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