Transamerica Dynamic Allocation

C000117718 Fund Overview

Transamerica Dynamic Allocation is a US mutual fund managed by Transamerica Funds, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Transamerica Funds
• Category: Money Market
• Assets under management: $14.67M
• SEC CIK: 0000787623
• SEC series ID: S000038168
• Share class ID: C000117718

C000117718 Investment Objective and Strategy

Transamerica Dynamic Allocation describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Transamerica Funds.

Investment objective

The fund seeks the highest total return (that is, a combination of income and long-term capital appreciation) over time consistent with its asset mix.

Principal investment strategy

The fund seeks to achieve its objective by investing primarily in a combination of exchange-traded funds (ETFs) that are based on an index and managed by unaffiliated investment advisers. QS Investors, LLC (the sub-adviser), the funds sub-adviser, is responsible for implementation of the funds overall asset allocation and the Dynamic Risk Management strategy described below. Western Asset Management Company (Western Asset), the funds sub-sub-adviser, is responsible for the funds Event Risk Management strategy described below. The fund seeks to achieve its objective by normally investing in a combination of underlying ETFs representing a broad range of asset classes and investment styles and focuses, combined with multiple layers of risk management strategies. The underlying equity ETFs may include large, mid and small cap ETFs, growth and value-oriented ETFs, international ETFs, and ETFs that are based on equity indexes.

The underlying long-term fixed income ETFs may include ETFs that invest in U.S. and non-U.S. issuers, corporate, mortgage-backed and government securities, investment grade securities, securities rated below investment grade (commonly known as junk bonds) and ETFs that are based on fixed income indexes. The fund generally seeks to maintain a certain target allocation for long-term investments (the Target Allocation). The funds current Target Allocation is 70% in equity and 30% in fixed income securities. However, the sub-adviser may from time to time make tactical increases or decreases to the funds investment in a particular asset class beyond the Target Allocation based on a broad range of market and economic trends and quantitative factors. The sub-adviser may also allow the relative weightings of the funds investments in asset classes to vary from its Target Allocation in response to the markets.

When varying exposures among underlying funds, the sub-adviser will examine relative values and prospects among the underlying ETFs asset classes, as well as the capacity of the underlying funds to absorb additional cash flow. The funds tactical overweights or underweights may range from 60% of its net assets in equity ETFs and 40% of its net assets in long-term fixed income ETFs to 75% of its net assets in equity ETFs and 25% of its net assets in long-term fixed income ETFs as, in the sub-advisers opinion, market conditions warrant. The sub-adviser will employ the Dynamic Risk Management strategy and, in its discretion, may adjust the funds asset mix as often as intra-day and may vary the funds allocation substantially from the Target Allocation. Western Asset will implement the Event Risk Management strategy in an effort to lessen the impact to the fund of steep market declines.

As result, the funds asset mix may be significantly different than the Target Allocation. In addition to these long-term investments, the fund may invest in short-term defensive instruments, including money market funds, Treasury bills and cash, and may enter into derivative transactions involving options, futures and swaps as a part of its risk management strategies. Risk Management The sub-adviser and Western Asset will implement a combination of risk management strategies that will attempt to reduce downside volatility within the fund. These strategies include Dynamic Risk Management and Event Risk Management, as described below. Through both strategies, the fund gives up some of the potential for high total return that could be achieved if the fund were to follow its Target Allocation under positive market conditions.

In exchange, these strategies are intended to result in less significant declines in the funds net asset value (NAV) under negative market conditions. The funds NAV will fluctuate and is not guaranteed. Dynamic Risk Management. The Dynamic Risk Management strategy seeks to reduce the funds market risk exposure and volatility. As frequently as intra-day, the Dynamic Risk Management strategy may increase the funds exposure to short-term defensive instruments in response to certain levels of negative fund performance. At other times, Dynamic Risk Management may decrease the funds exposure to short-term defensive instruments and increase its exposure to equity ETFs and long-term fixed income ETFs in order to return to the funds Target Allocation in response to certain levels of positive fund performance.

The maximum daily allocation to short-term defensive instruments will be 95% of the funds net assets. In response to certain levels of negative fund performance, the sub-adviser may increase the funds exposure to short-term defensive instruments (derisking) based on a formula that takes into account the funds current NAV, macro-economic conditions, and the funds underlying volatility. In order to implement this strategy, the sub-adviser anticipates that it will sell shares of equity and longer-term fixed-income ETFs and other liquid securities or engage in short sale transactions involving index options and index futures contracts. In response to certain levels of positive fund performance, the fund may purchase equity and longer-term fixed-income ETFs or cover short futures positions (when the fund is not managed strictly according to the standard Target Allocation).

The sub-adviser, in its discretion, will determine the levels and timing for Dynamic Risk Management. If the sub-adviser determines that de-risking is no longer appropriate, the fund will reverse this process, sell short-term defensive instruments and purchase equity and longer-term fixed income ETFs in accordance with the funds Target Allocation. Event Risk Management. The Event Risk Management strategy seeks to reduce the impact to the fund of market declines during a short period of time caused by, for example, sudden and substantial movements in the equity markets, interest rates or credit spreads. The fund may invest up to 7% of its net assets at the time of purchase in this strategy (as measured by the aggregate premiums paid on options and initial margin on futures contracts). If the funds holdings in this strategy increase in value to over 7% of its net assets as a result of market movements, the fund will reduce, at least monthly, the amount of its assets invested in this strategy to no more than 7% of its net assets.

The value of the funds assets invested in this strategy may be substantially higher than the value of the premiums paid or initial margin amounts on the instruments used to implement the strategy. If the value of the instruments in the Event Risk Management strategy declines after the fund has engaged in de-risking, the funds NAV could decline even if the broader markets rise in value. Conversely, if the value of the instruments in the Event Risk Management strategy increases after the fund has engaged in de-risking, the funds NAV could increase even if the broader markets fall in value. Western Assets views and outlook regarding potential unexpected market movements will determine the investments and strategies it employs in implementing the Event Risk Management strategy. During normal market conditions, the fund will implement the Event Risk Management strategy through investments in options, futures, swaps or other instruments.

Since the Event Risk Management strategy seeks to primarily benefit from large and unexpected market movements, there may be times when the investment and transaction costs related to hedging will result in losses to the fund. The Event Risk Management strategy will be actively managed in an effort to reduce these costs when possible.

C000117718 Costs and Fees

C000117718 costs about $102 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.02%
• Gross expense ratio: 1.43%
• Portfolio turnover: 25%
• Brokerage commissions: 1.71 bps of average net assets (SEC N-CEN)

C000117718 Cashflows

Over the 12 months to 2019-10, Transamerica Dynamic Allocation had net outflows of $1.21M, from monthly SEC N-PORT filings.

C000117718 Debt Constituents

No individual debt constituents are reported in Transamerica Dynamic Allocation's latest SEC N-PORT filing.

C000117718 Prospectus and SEC Filings

Official Transamerica Dynamic Allocation filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-03-21
• Prospectus (485BPOS) — filed 2018-03-22
• Prospectus (485BPOS) — filed 2017-04-05
• Portfolio holdings (N-PORT) — filed 2019-12-20
• Annual census (N-CEN) — filed 2020-01-10
• Annual census (N-CEN) — filed 2019-01-14

Related Funds

Other Money Market funds tracked on ABC INVEST:

• Emerald Growth Fund (HSPCX)
• Barings Active Short Duration Bond Fund (BXDIX)
• IVA Worldwide Fund (IVWAX)
• Stadion Tactical Growth Fund (ETFDX)
• BBH Partner Fund - Select Short Term Assets (BBSTX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.