N-CSRS 1 d568416dncsrs.htm N-CSRS N-CSRS

As filed with the Securities and Exchange Commission on September 4, 2013.

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-07717

TRANSAMERICA ASSET ALLOCATION VARIABLE FUNDS

570 Carillon Parkway, St. Petersburg, Florida 33716

(Address of Principal Executive Offices)  (Zip Code)

Registrant’s Telephone Number, including Area Code: (727) 299-1800

Dennis P. Gallagher, Esq. P.O. Box 9012, Clearwater, Florida 33758-9771

(Name and Address of Agent for Service)

Date of fiscal year end: December 31

Date of reporting period: January 1, 2013 – June 30, 2013

Item 1: Report(s) to Shareholders. The Semi-Annual Report is attached.

 

TRANSAMERICA PARTNERS VARIABLE FUNDS

 

TRANSAMERICA ASSET

ALLOCATION VARIABLE FUNDS

 

 

Semi-Annual Report

 

 

June 30, 2013

 

LOGO

 

This report is not to be construed as an offering for sale of any contracts participating in the Subaccounts (Series) of the Transamerica Partners Variable Funds or the Transamerica Asset Allocation Variable Funds, or as a solicitation of an offer to buy contracts unless preceded by or accompanied by a current prospectus which contains complete information about charges and expenses.

This report consists of the semi-annual report of the Transamerica Asset Allocation Variable Funds and the semi-annual reports of the Transamerica Partners Portfolios and the Calvert VP SRI Balanced Portfolio, the underlying portfolios in which the Transamerica Partners Variable Funds invest.

 

 

Proxy Voting Policies and Procedures

A description of the proxy voting policies and procedures of the Transamerica Asset Allocation Variable Funds and Transamerica Partners Portfolios is included in the Statement of Additional Information (“SAI”), which is available without charge, upon request: (i) by calling 1-888-233-4339; (ii) on the Subaccounts’ website at www.transamericapartners.com or (iii) on the SEC’s website at www.sec.gov. In addition, the Transamerica Asset Allocation Variable Funds and the Transamerica Partners Portfolios are required to file Form N-PX, with the complete proxy voting record for the twelve months ended June 30, no later than August 31 of each year. Form N-PX for the twelve months ended June 30, 2013, is available without charge, upon request by calling 1-800-851-9777 and on the SEC’s website at http://www.sec.gov.

Quarterly Portfolios

Transamerica Asset Allocation Variable Funds will file their portfolios of investments on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Subaccounts’ Form N-Q is available on the SEC’s website at www.sec.gov. The Subaccounts’ Form N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. For information on the operation of the SEC’s Public Reference Room, call 1-800-SEC-0330. You may also obtain a copy of Form N-Q without charge, upon request, by calling 1-888-233-4339. Form N-Q for the corresponding Transamerica Partners Portfolios is also available without charge on the SEC website, at the SEC’s Public Reference Room, or by calling 1-888-233-4339.

TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY

440 Mamaroneck Avenue

Harrison, New York 10528

 

June 30, 2013

To Contract Holders with Interests in

the Transamerica Partners Variable Funds:

We are pleased to present the most recent semi-annual reports for the Transamerica Partners Portfolios and for the Calvert VP SRI Balanced Portfolio. As required under applicable law, we are sending these semi-annual reports to contract holders of Group Variable Annuity Contracts issued by Transamerica Financial Life Insurance Company with unit interests in one or more of the subaccounts of Transamerica Partners Variable Funds. Each subaccount available within the Transamerica Partners Variable Funds, other than the Calvert Subaccount, invests its assets in a corresponding mutual fund that is a series of Transamerica Partners Portfolios. The Calvert Subaccount invests in the Calvert VP SRI Balanced Portfolio, a series of Calvert Variable Series, Inc.

Please call your retirement plan administrator, Transamerica Retirement Solutions Corporation (formerly, Diversified Retirement Corporation), at (800) 755-5801 if you have any questions regarding these reports.

Dear Fellow Shareholder,

On behalf of Transamerica Asset Allocation Variable Funds, we would like to thank you for your continued support and confidence in our products as we look forward to continuing to serve you and your financial adviser in the future. We value the trust you have placed in us.

This semi-annual report is provided to you with the intent of presenting a comprehensive review of the investments of each of your funds. The Securities and Exchange Commission requires that annual and semi-annual reports be sent to all shareholders, and we believe this report to be an important part of the investment process. In addition to providing a comprehensive review, this report also provides a discussion of accounting policies as well as matters presented to shareholders that may have required their vote.

We believe it is important to understand market conditions over the last six months in order to provide a context for reading this report. As 2013 began, investor concern over the fiscal cliff had held the U.S. markets down despite improving economic conditions. However, on January 2, 2013 the U.S. Congress resolved the fiscal cliff and as a result U.S. markets moved up strongly over the first three months of the year. February and March brought slowing growth in China and increasing economic weakness in Europe, which drove international markets down. However, in April, Japan announced a new monetary easing program which helped international markets recover. U.S. economics continued to improve in May, pushing U.S. equity markets to new highs even as bond yields began creeping up. In June, the Federal Reserve announced plans to gradually reduce purchases of bonds if the economy continued to improve. As a result, forward-looking markets sold both bonds and high-yielding securities, pushing prices down and both yields and interest rates even higher.

For the six months ended June 30, 2013, the Dow Jones Industrial Average returned 15.20%, the Standard & Poor‘s 500® Index returned 12.63%, and the Barclays U.S. Aggregate Bond Index returned (2.44)%. It is always important to maintain a diversified portfolio as investment returns have historically been difficult to predict.

In addition to your active involvement in the investment process, we firmly believe that a financial adviser is a key resource to help you build a complete picture of your current and future financial needs. Financial advisers are familiar with the market’s history, including long-term returns and volatility of various asset classes. With your financial adviser, you can develop an investment program that incorporates factors such as your goals, your investment timeline, and your risk tolerance.

Please contact your financial adviser if you have any questions about the contents of this report, and thanks again for the confidence you have placed in us.

Sincerely,

 

Thomas A. Swank

President & Chief Executive Officer

Transamerica Asset Allocation Variable Funds

Christopher A. Staples

Vice President & Chief Investment Officer-Advisory Services

Transamerica Asset Allocation Variable Funds

 

Understanding Your Funds’ Expenses

 

 

(unaudited)

 

UNIT HOLDER EXPENSES

Transamerica Asset Allocation Variable Funds (each individually, a “Subaccount” and collectively, the “Subaccounts”) is a separate investment account established by Transamerica Financial Life Insurance Company, Inc. (“TFLIC”), and is used as an investment vehicle under certain tax-deferred annuity contracts issued by TFLIC. Each Subaccount invests in underlying subaccounts of Transamerica Partners Variable Funds (“TPVF”), a unit investment trust. As a contractholder of a Subaccount, you will bear the ongoing costs of managing the corresponding subaccount in which your Subaccount invests. You will also bear the cost of operating the Subaccount. The following examples are intended to help you understand your ongoing costs (in dollars and cents) of investing in the Subaccounts and to compare these costs with the ongoing costs of investing in other funds.

The examples are based on an investment of $1,000 invested at January 1, 2013 and held for the entire period until June 30, 2013.

ACTUAL EXPENSES

The information in the table under the heading “Actual Expenses” provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = $8.60), then multiply the result by the number shown under the heading “Expenses paid during Period” to estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The information in the table under the heading “Hypothetical Expenses” provides information about hypothetical account values and hypothetical expenses based on the Subaccount’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Subaccount’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Subaccount versus other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

         

Actual Expenses

    

Hypothetical Expenses(A)

        
Fund Name   Beginning
Account Value		     Ending Account
Value		     Expenses Paid
During Period(B)		     Ending Account
Value		     Expenses Paid
During Period(B)		     Annualized
Expense Ratio(C)		  

Transamerica Asset Allocation Variable - Short Horizon Subaccount

   $   1,000.00      $ 984.00      $ 0.97      $ 1,023.54      $ 0.99        0.20 % 

Transamerica Asset Allocation Variable - Intermediate Horizon Subaccount

     1,000.00          1,036.80          1.00          1,023.54          0.99        0.20   

Transamerica Asset Allocation Variable - Intermediate/Long Horizon Subaccount

     1,000.00        1,060.00        1.01        1,023.54        0.99        0.20   

 

 

(A)  5% return per year before expenses.

 

(B)  Expenses are equal to each Subaccount’s annualized expense ratio (as disclosed in the table), multiplied by the average account value for the period, multiplied by the number of days in the period (179), and divided by the number of days in the year (365 days).

 

(C)  Expense ratios do not include expenses of the investment companies in which the Subaccounts invest.

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    2

Schedules of Investments Composition

 

 

At June 30, 2013

(The following charts summarize the Schedule of Investments of each Subaccount by asset type)

(unaudited)

 

 

Transamerica Asset Allocation Variable -
Short Horizon Subaccount		    % of Net
Assets		  

Fixed Income

      89.0 % 

Domestic Equity

      8.7   

International Equity

      2.1   

Money Market

      0.2   

Other Assets and Liabilities - Net

      (0.0 )(A) 

Total

      100.0 % 
  

 

 

  
Transamerica Asset Allocation Variable -
Intermediate Horizon Subaccount		    % of Net
Assets		  

Fixed Income

      47.3 % 

Domestic Equity

      41.4   

International Equity

      11.1   

Money Market

      0.2   

Other Assets and Liabilities - Net

      (0.0 )(A) 

Total

      100.0 % 
  

 

 

  
Transamerica Asset Allocation Variable -
Intermediate/Long Horizon Subaccount		    % of Net
Assets		  

Domestic Equity

      56.1 % 

Fixed Income

      27.4   

International Equity

      16.4   

Money Market

      0.1   

Other Assets and Liabilities - Net

      (0.0 )(A) 

Total

      100.0 % 
  

 

 

  

 

 

(A) Amount rounds to less than 0.1%

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    3

Transamerica Asset Allocation Variable - Short Horizon Subaccount

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

INVESTMENT COMPANIES - 100.0%

     

Domestic Equity - 8.7%

     

Transamerica Partners Variable Large Growth (A) (B)

     3,718         $     236,596   

Transamerica Partners Variable Large Value (A) (B)

     3,779         235,557   

Transamerica Partners Variable Small Core (A) (B)

     3,462         164,163   

Fixed Income - 89.0%

     

Transamerica Partners Variable Core Bond (A) (B)

     80,053         3,394,572   

Transamerica Partners Variable High Quality Bond (A) (B)

     65,706         1,163,660   

Transamerica Partners Variable High Yield Bond (A) (B)

     27,865         786,217   

Transamerica Partners Variable Inflation-Protected Securities (A) (B)

     42,078         1,135,575   

International Equity - 2.1%

     

Transamerica Partners Variable International Equity (A) (B)

     7,520         154,772   

Money Market - 0.2%

     

Transamerica Partners Variable Money Market (A) (B)

     534         11,255   
    

 

 

  

Total Investment Companies (cost $6,130,907)

  

      7,282,367   
    

 

 

  

Total Investment Securities (cost $6,130,907) (C)

  

      7,282,367   

Other Assets and Liabilities - Net

        (1,130 ) 
    

 

 

  

Net Assets

       $  7,281,237   
    

 

 

  
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  Each Subaccount invests its assets in an affiliated fund of Transamerica Partners Variable Funds.
(C)  Aggregate cost for federal income tax purposes is $6,130,907. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $1,151,460.

VALUATION SUMMARY: (D)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Investment Companies

   $ 7,282,367      $ —      $ —      $ 7,282,367   

Total Investment Securities

   $   7,282,367      $   —      $   —      $   7,282,367   

 

(D) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    4

Transamerica Asset Allocation Variable - Intermediate Horizon Subaccount

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

INVESTMENT COMPANIES - 100.0%

  

   

Domestic Equity - 41.4%

     

Transamerica Partners Variable Large Growth (A) (B)

     46,295         $  2,945,880   

Transamerica Partners Variable Large Value (A) (B)

     47,892         2,985,484   

Transamerica Partners Variable Small Core (A) (B)

     41,387         1,962,479   

Fixed Income - 47.3%

  

   

Transamerica Partners Variable Core Bond (A) (B)

     100,242         4,250,663   

Transamerica Partners Variable High Quality Bond (A) (B)

     82,833         1,466,971   

Transamerica Partners Variable High Yield Bond (A) (B)

     42,460         1,198,007   

Transamerica Partners Variable Inflation-Protected Securities (A) (B)

     77,591         2,093,968   

International Equity - 11.1%

     

Transamerica Partners Variable International Equity (A) (B)

     102,691         2,113,549   

Money Market - 0.2%

     

Transamerica Partners Variable Money Market (A) (B)

     2,212         46,662   
    

 

 

  

Total Investment Companies (cost $15,261,986)

  

      19,063,663   
    

 

 

  

Total Investment Securities (cost $15,261,986) (C)

  

      19,063,663   

Other Assets and Liabilities - Net

        (2,971 ) 
    

 

 

  

Net Assets

       $  19,060,692   
    

 

 

  
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  Each Subaccount invests its assets in an affiliated fund of Transamerica Partners Variable Funds.
(C)  Aggregate cost for federal income tax purposes is $15,261,986. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $3,801,677.

VALUATION SUMMARY: (D)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Investment Companies

   $ 19,063,663      $ —      $ —      $ 19,063,663   

Total Investment Securities

   $   19,063,663      $   —      $   —      $   19,063,663   

 

(D)  Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    5

Transamerica Asset Allocation Variable - Intermediate/Long Horizon Subaccount

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

      Shares      Value  

INVESTMENT COMPANIES - 100.0%

  

   

Domestic Equity - 56.1%

      

Transamerica Partners Variable Large Growth (A) (B)

      93,297       $ 5,936,776   

Transamerica Partners Variable Large Value (A) (B)

      93,737         5,843,417   

Transamerica Partners Variable Small Core (A) (B)

      89,196         4,229,478   

Fixed Income - 27.4%

  

   

Transamerica Partners Variable Core Bond (A) (B)

      91,905         3,897,121   

Transamerica Partners Variable High Quality Bond (A) (B)

      30,342         537,363   

Transamerica Partners Variable High Yield Bond (A) (B)

      38,120         1,075,547   

Transamerica Partners Variable Inflation-Protected Securities (A) (B)

      84,955         2,292,702   

International Equity - 16.4%

      

Transamerica Partners Variable International Equity (A) (B)

      227,060         4,673,285   

Money Market - 0.1%

      

Transamerica Partners Variable Money Market (A) (B)

      2,010         42,394   
     

 

 

  

Total Investment Companies (cost $22,753,261)

  

      28,528,083   
     

 

 

  

Total Investment Securities (cost $22,753,261) (C)

  

      28,528,083   

Other Assets and Liabilities - Net

         (4,416 ) 
     

 

 

  

Net Assets

      $   28,523,667   
     

 

 

  
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  Each Subaccount invests its assets in an affiliated fund of Transamerica Partners Variable Funds.
(C)  Aggregate cost for federal income tax purposes is $22,753,261. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $5,774,822.

VALUATION SUMMARY: (D)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Investment Companies

   $ 28,528,083      $ —      $ —      $ 28,528,083   

Total Investment Securities

   $   28,528,083      $   —      $   —      $   28,528,083   

 

(D)  Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    6

 

STATEMENTS OF ASSETS AND LIABILITIES

At June 30, 2013

(unaudited)

 

     Short
Horizon		     Intermediate
Horizon		     Intermediate/
Long Horizon		  

Assets:

            

Investments in affiliated investment companies, at value

   $ 7,282,367      $ 19,063,663      $ 28,528,083   

Receivables:

            

Units sold

     884        4,599        8,544   

Total assets

     7,283,251        19,068,262        28,536,627   

Liabilities:

            

Accounts payable and accrued liabilities:

            

Units redeemed

     439        —        —   

Investments in affiliated investment companies purchased

     445        4,598        8,543   

Investment advisory fees

     1,130        2,972        4,417   

Total liabilities

     2,014        7,570        12,960   

Net assets

   $ 7,281,237      $ 19,060,692      $ 28,523,667   
       

Net assets consist of:

            

Costs of accumulation units

   $ 2,623,509      $ 7,809,854      $ 16,478,681   

Undistributed (accumulated) net investment income (loss)

     (247,341 )      (689,524 )      (955,573 ) 

Undistributed (accumulated) net realized gain (loss) from investments in affiliated investment companies

     3,753,609        8,138,685        7,225,737   

Net unrealized appreciation (depreciation) on investments in affiliated investment companies

     1,151,460        3,801,677        5,774,822   

Net assets

   $ 7,281,237      $ 19,060,692      $ 28,523,667   

Accumulation units

     363,225        914,445        1,350,427   

Unit value

   $ 20.05      $ 20.84      $ 21.12   
   

 

 

    

 

 

    

 

 

  

Investments in affiliated investment companies, at cost

   $     6,130,907      $     15,261,986      $     22,753,261   

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    7

 

STATEMENTS OF OPERATIONS

For the period ended June 30, 2013

(unaudited)

 

     Short
Horizon		     Intermediate
Horizon		     Intermediate/
Long Horizon		  

Expenses:

            

Investment advisory

   $ 7,829      $ 19,606      $ 28,207   

Net investment income (loss)

     (7,829 )      (19,606 )      (28,207 ) 
       

Net realized and change in unrealized gain (loss) on investments in affiliated investment companies:

            

Net realized gain (loss) from investments in affiliated investment companies

     398,148        483,072        358,922   
      398,148        483,072        358,922   

Net change in unrealized appreciation (depreciation) on investments in affiliated investment companies

     (497,107 )      284,300        1,338,370   

Net realized and change in unrealized gain (loss) on investments in affiliated investment companies

     (98,959 )      767,372        1,697,292   

Net increase (decrease) in net assets resulting from operations

   $     (106,788 )    $     747,766      $     1,669,085   

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    8

 

STATEMENTS OF CHANGES IN NET ASSETS

For the period and year ended:

 

     Short Horizon     Intermediate Horizon     Intermediate/Long Horizon  
     June 30, 2013
(unaudited)		     December 31,
2012		     June 30, 2013
(unaudited)		     December 31,
2012		     June 30, 2013
(unaudited)		     December 31,
2012		  

From operations:

                        

Net investment income (loss)

   $ (7,829 )    $ (17,693 )    $ (19,606 )    $ (43,224 )    $ (28,207 )    $ (57,139 ) 

Net realized gain (loss) on investments in affiliated investment companies

     398,148        532,247        483,072        986,992        358,922        608,260   

Net change in unrealized appreciation (depreciation) on investments in affiliated investment companies

     (497,107 )      114,594        284,300        1,306,365        1,338,370        2,906,322   

Net increase (decrease) in net assets resulting from operations

     (106,788 )      629,148        747,766        2,250,133        1,669,085        3,457,443   

From unit transactions:

                        

Units sold

     801,711        1,581,801        1,311,691        2,061,876        1,505,382        2,412,732   

Units redeemed

         (1,640,235 )          (2,868,608 )          (2,716,932 )          (6,192,904 )          (2,444,650 )          (6,079,030 ) 

Net increase (decrease) in net assets resulting from unit transactions

     (838,524 )      (1,286,807 )      (1,405,241 )      (4,131,028 )      (939,268 )      (3,666,298 ) 

Net increase (decrease) in net assets

     (945,312 )      (657,659 )      (657,475 )      (1,880,895 )      729,817        (208,855 ) 
             

Net assets:

                        

Beginning of period/year

   $ 8,226,549      $ 8,884,208      $ 19,718,167      $ 21,599,062      $ 27,793,850      $ 28,002,705   

End of period/year

   $ 7,281,237      $ 8,226,549      $ 19,060,692      $ 19,718,167      $ 28,523,667      $ 27,793,850   

Undistributed (accumulated) net investment income (loss)

   $ (247,341 )    $ (239,512 )    $ (689,524 )    $ (669,918 )    $ (955,573 )    $ (927,366 ) 

Units outstanding beginning of period/year

     403,808        467,918        980,782        1,189,012        1,394,888        1,582,502   

Units sold

     39,148        80,080        62,868        106,778        72,111        126,303   

Units redeemed

     (79,731 )      (144,190 )      (129,205 )      (315,008 )      (116,572 )      (313,917 ) 

Units outstanding end of period/year

     363,225        403,808        914,445        980,782        1,350,427        1,394,888   

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    9

 

FINANCIAL HIGHLIGHTS

For the period or years ended:

 

For a unit outstanding throughout each period/year   Short Horizon  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Unit value

                        

Beginning of period/year

   $   20.37      $   18.99      $   18.24      $   16.95      $ 14.66      $ 16.28   

Investment operations

                        

Net investment income (loss)(A)

     (0.02 )      (0.04 )      (0.04 )      (0.04 )      (0.03 )      (0.03 ) 

Net realized and unrealized gain (loss) on affiliated investments

     (0.30 )      1.42        0.79        1.33        2.32        (1.59 ) 

Total investment operations

     (0.32 )      1.38        0.75        1.29        2.29        (1.62 ) 

Unit value

                        

End of period/year

   $ 20.05      $ 20.37      $ 18.99      $ 18.24      $ 16.95      $ 14.66   

Total return

     (1.60 )%(B)      7.30 %      4.07 %      7.65 %      15.62 %      (9.95 )% 

Net assets end of period/year (000’s)

   $   7,281      $   8,227      $   8,884      $   9,608      $   10,112      $   9,450   

Ratio and supplemental data

                        

Expenses to average net assets(C)

     0.20 %(D)      0.20 %      0.20 %      0.20 %      0.20 %      0.20 % 

Net investment income (loss) to average net assets

     (0.20 )%(D)      (0.20 )%      (0.20 )%      (0.20 )%      (0.20 )%      (0.20 )% 

Portfolio turnover rate(E)

     32 %(B)      51 %      46 %      36 %      28 %      125 % 

 

 

(A)  Calculated based on average number of shares outstanding.
(B)  Not annualized.
(C)  Ratios exclude expenses incurred by the underlying affiliated investment companies in which the Subaccount invests.
(D)  Annualized.
(E)  Does not include the portfolio activity of the underlying affiliated investment companies.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

For a unit outstanding throughout each period/year   Intermediate Horizon  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Unit value

                        

Beginning of period/year

   $ 20.10      $ 18.17      $ 18.13      $ 16.22      $ 13.46      $ 18.16   

Investment operations

                        

Net investment income (loss)(A)

     (0.02 )      (0.04 )      (0.04 )      (0.03 )      (0.03 )      (0.03 ) 

Net realized and unrealized gain (loss) on affiliated investments

     0.76        1.97        0.08        1.94        2.79        (4.67 ) 

Total investment operations

     0.74        1.93        0.04        1.91        2.76        (4.70 ) 

Unit value

                        

End of period/year

   $ 20.84      $ 20.10      $ 18.17      $ 18.13      $ 16.22      $ 13.46   

Total return

     3.68 %(B)      10.67 %      0.19 %      11.81 %      20.51 %      (25.88 )% 

Net assets end of period/year (000’s)

   $   19,061      $   19,718      $   21,599      $   24,180      $   24,295      $   21,990   

Ratio and supplemental data

                        

Expenses to average net assets(C)

     0.20 %(D)      0.20 %      0.20 %      0.20 %      0.20 %      0.20 % 

Net investment income (loss) to average net assets

     (0.20 )%(D)      (0.20 )%      (0.20 )%      (0.20 )%      (0.20 )%      (0.20 )% 

Portfolio turnover rate(E)

     24 %(B)      37 %      42 %      25 %      34 %      111 % 

 

 

(A)  Calculated based on average number of shares outstanding.
(B)  Not annualized.
(C)  Ratios exclude expenses incurred by the underlying affiliated investment companies in which the Subaccounts invest.
(D)  Annualized.
(E)  Does not include the portfolio activity of the underlying affiliated investment companies.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    10

 

FINANCIAL HIGHLIGHTS (continued)

For the period or years ended:

 

For a unit outstanding throughout each period/year   Intermediate/Long Horizon  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Unit value

                        

Beginning of period/year

   $ 19.93      $ 17.70      $ 17.99      $ 15.78      $ 12.89      $ 19.30   

Investment operations

                        

Net investment income (loss)(A)

     (0.02 )      (0.04 )      (0.04 )      (0.03 )      (0.03 )      (0.03 ) 

Net realized and unrealized gain (loss) on affiliated investments

     1.21        2.27        (0.25 )      2.24        2.92        (6.38 ) 

Total investment operations

     1.19        2.23        (0.29 )      2.21        2.89        (6.41 ) 

Unit value

                        

End of period/year

   $ 21.12      $ 19.93      $ 17.70      $ 17.99      $ 15.78      $ 12.89   

Total return

     6.00 %(B)      12.60 %      (1.66 )%      14.05 %      22.42 %      (33.21 )% 

Net assets end of period/year (000’s)

   $   28,524      $   27,794      $   28,003      $   30,991      $   30,478      $   33,453   

Ratio and supplemental data

                        

Expenses to average net assets(C)

     0.20 %(D)      0.20 %      0.20 %      0.20 %      0.20 %      0.20 % 

Net investment income (loss) to average net assets

     (0.20 )%(D)      (0.20 )%      (0.20 )%      (0.20 )%      (0.20 )%      (0.20 )% 

Portfolio turnover rate(E)

     15 %(B)      30 %      34 %      23 %      54 %      105 % 

 

 

(A)  Calculated based on average number of shares outstanding.
(B)  Not annualized.
(C)  Ratios exclude expenses incurred by the underlying affiliated investment companies in which the Subaccounts invest.
(D)  Annualized.
(E)  Does not include the portfolio activity of the underlying affiliated investment companies.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

The notes to the financial statements are an integral part of this report.

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    11

 

NOTES TO FINANCIAL STATEMENTS

At June 30, 2013

(unaudited)

 

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

 

Transamerica Asset Allocation Variable Funds (the “Separate Account”), is a non-diversified separate account of Transamerica Financial Life Insurance Company (“TFLIC”), and is registered as a management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”). The Separate Account is composed of three different subaccounts that are separate investment funds: Transamerica Asset Allocation Variable—Short Horizon Subaccount (“Short Horizon”), Transamerica Asset Allocation Variable—Intermediate Horizon Subaccount (“Intermediate Horizon”), and Transamerica Asset Allocation Variable—Intermediate/Long Horizon Subaccount (“Intermediate/Long Horizon”), (each, a “Subaccount” and collectively, the “Subaccounts”). Each Subaccount invests all of its investable assets among certain Transamerica Partners Variable Funds (“TPVF”). Certain TPVF subaccounts invest all of their investable assets in the Transamerica Partners Portfolios.

This report should be read in conjunction with the Subaccounts’ current prospectus, which contains additional information about the Subaccounts, including investment objectives and strategies.

In the normal course of business, the Subaccounts enter into contracts that contain a variety of representations that provide general indemnifications. The Subaccounts’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Subaccounts and/or their affiliates that have not yet occurred. However, based on experience, the Subaccounts expect the risk of loss to be remote.

In preparing the Subaccount’s financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), estimates or assumptions (which could differ from actual results) may be used that affect reported amounts and disclosures. The following is a summary of significant accounting policies followed by the Subaccounts.

Operating expenses: The Separate Account accounts separately for the assets, liabilities, and operations of each Subaccount. Each Subaccount will indirectly bear its share of fees and expenses incurred by TPVF. These expenses are not reflected in the expenses in the Statements of Operations and are not included in the ratios to average net assets shown in the Financial Highlights.

Security transactions: Security transactions are recorded on the trade date. Net realized gain (loss) is from investments in units of affiliated investment companies.

NOTE 2. SECURITY VALUATIONS

All investments in securities are recorded at their estimated fair value. The value of each Subaccount’s investment in a corresponding subaccount of TPVF is valued at the unit value per share of each Subaccount determined as of the close of business of the New York Stock Exchange (“NYSE”), normally 4:00 P.M. Eastern time, each day the NYSE is open for business. The Subaccounts utilize various methods to measure the fair value of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three Levels of inputs of the fair value hierarchy are defined as follows:

Level 1—Unadjusted quoted prices in active markets for identical securities.

Level 2—Inputs, other than quoted prices included in Level 1, that are observable, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3—Unobservable inputs, which may include Transamerica Asset Management, Inc.‘s (“TAM”) internal valuation committee’s (the “Valuation Committee”) own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the sub-adviser, issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The Subaccounts’ Board of Trustees has delegated the valuation functions on a day-to-day basis to TAM, subject to board oversight. TAM has formed the Valuation Committee to monitor and implement the fair valuation policies and procedures as approved by the Board of Trustees. These policies and procedures are reviewed at least annually by the Board of Trustees. The Valuation Committee, among other tasks, monitors for when market quotations are not readily available or are unreliable and determines in good faith the fair value of portfolio investments. For instances in which daily market quotes are not readily available, securities may be valued, pursuant to procedures adopted by the Board of Trustees, with reference to other instruments or indices. Depending on the relative significance of valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the security to determine the fair value of the security. An income-based valuation

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    12

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 2. (continued)

 

approach may also be used in which the anticipated future cash flows of the security are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the securities. When the Subaccounts use fair value methods that rely on significant unobservable inputs to determine a security’s value, the Valuation Committee will choose the method that is believed to accurately reflect fair market value. These securities are categorized in Level 3 of the fair value hierarchy. The Valuation Committee reviews fair value measurements on a regular and ad hoc basis and may, as deemed appropriate, update the security valuations as well as the fair valuation guidelines.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, but not limited to, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is generally greatest for instruments categorized in Level 3. Due to the inherent uncertainty of valuation, the Valuation Committee’s determination of values may differ significantly from values that would have been realized had a ready market for investments existed, and the differences could be material. The Valuation Committee employs various methods for calibrating these valuation approaches including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing, and reviews of any market related activity.

The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy that is assigned to the fair value measurement of a security is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.

Fair value measurements: Descriptions of the valuation techniques applied to the Subaccounts’ major categories of assets and liabilities measured at fair value on a recurring basis are as follows:

Investment companies: Investment companies are valued at the net asset value (“NAV”) of the underlying portfolio. These securities are actively traded and no valuation adjustments are applied. Exchange-Traded Funds are stated at the last reported sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded. They are categorized in Level 1 of the fair value hierarchy. Investments in privately held investment funds with significant restrictions on redemptions where the inputs of NAVs are unobservable will be valued based upon the NAVs of such investments and are categorized in Level 3 of the fair value hierarchy.

The hierarchy classification of inputs used to value the Subaccount’s investments at June 30, 2013, is disclosed in the Valuation Summary of each of the Subaccounts’ Schedule of Investments.

NOTE 3. RELATED PARTY TRANSACTIONS

TAM, the Subaccounts’ investment adviser, is directly owned by Western Reserve Life Assurance Co. of Ohio and AUSA Holding Company (“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.

Pursuant to the Investment Advisory Agreement, and subject to further policies as the Board of Trustees may determine, TAM provides general investment advice to each Subaccount. As compensation for providing these services and facilities and for bearing the related expenses, each Subaccount pays TAM a fee, which is accrued daily and payable monthly at an annual rate equal to 0.20% of each Subaccount’s average daily net assets.

TFLIC is the legal holder of the assets in the Subaccounts and will at all times maintain assets in the Subaccounts with a total market value of at least equal to the contract liabilities for the Subaccounts.

Certain Managing Board Members and officers of TFLIC are also trustees, officers, or employees of TAM or its affiliates. No interested Managing Board Member receives compensation from the Separate Account. Similarly, none of the Separate Account’s officers receive compensation from the Subaccounts. The independent board members are also trustees of the Transamerica Partners Portfolios for which they receive fees.

Deferred compensation plan: Under a non-qualified deferred compensation plan effective January 1, 2008, as amended and restated (the “Deferred Compensation Plan”), available to the Trustees, compensation may be deferred that would otherwise be payable by the

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    13

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 3. (continued)

 

Separate Account to an Independent Trustee on a current basis for services rendered as Trustee. Deferred compensation amounts will accumulate based on the value of Class A (or comparable) shares of a series of Transamerica Funds (without imposition of sales charge), as elected by the Trustee.

NOTE 4. INVESTMENT TRANSACTIONS

The cost of affiliated investments purchased and proceeds from affiliated investments sold (excluding short-term securities) for the period ended June 30, 2013 were as follows:

 

Fund   Purchases of
affiliated investments		     Proceeds from
maturities and
sales of
affiliated investments		  

Short Horizon

   $   2,535,803      $   3,382,462   

Intermediate Horizon

     4,817,813        6,243,022   

Intermediate/Long Horizon

     4,315,240        5,282,953   

There were no transactions of U.S. Government securities during the period ended June 30, 2013.

NOTE 5. FEDERAL INCOME TAX MATTERS

The operations of the Separate Account form a part of, and are taxed with, the operations of TFLIC, a wholly-owned subsidiary of Aegon USA. TFLIC does not expect, based upon current tax law, to incur any income tax upon the earnings or realized capital gains attributable to the Separate Account. Based upon this expectation, no charges are currently being deducted from the Separate Account for federal income tax purposes. Management has evaluated the Separate Account’s tax positions taken or expected to be taken for all open tax years 2009-2012, and has concluded that there are no tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

NOTE 6. SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date of issuance of the financial statements, and determined that no other material events or transactions would require recognition or disclosure in the Subaccounts’ financial statements.

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    14

 

TRANSAMERICA ASSET ALLOCATION VARIABLE FUNDS

INVESTMENT ADVISORY AGREEMENTS — CONTRACT RENEWAL

 

At a meeting of the Managing Board of Transamerica Asset Allocation Variable Funds (the “Board”) held on June 12-13, 2013, the Board reviewed and considered the renewal of the investment advisory agreements (each an “Investment Advisory Agreement” and collectively the “Investment Advisory Agreements”) between each of Transamerica Asset Allocation — Intermediate Horizon Subaccount, Transamerica Asset Allocation — Intermediate/Long Horizon Subaccount, and Transamerica Asset Allocation — Short Horizon Subaccount (each a “Fund” and collectively the “Funds”) and Transamerica Asset Management, Inc. (“TAM”).

Following their review and consideration, the Board Members determined that the terms of each Investment Advisory Agreement are reasonable and that the renewal of the Investment Advisory Agreements is in the best interests of the applicable Fund and its shareholders. The Board, including the independent members of the Board (the “Independent Board Members”), unanimously approved the renewal of each Investment Advisory Agreement through June 30, 2014. In reaching their decision, the Board Members requested and received from TAM such information as they deemed reasonably necessary to evaluate the Investment Advisory Agreements. The Board Members also considered information they had previously received from TAM as part of their regular oversight of each Fund, as well as comparative fee, expense, and performance information prepared by TAM based on information provided by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and other fee, expense and profitability information prepared by TAM.

In their deliberations, the Independent Board Members had the opportunity to meet privately without representatives of TAM present and were represented throughout the process by independent legal counsel. In considering the proposed continuation of each Investment Advisory Agreement, the Board Members evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and/or their own business judgment, to be relevant. They based their decisions on the considerations discussed below, among others, although they did not identify any particular consideration or information that was controlling of their decisions, and each Board Member may have attributed different weights to the various factors.

Nature, Extent and Quality of the Services Provided

The Board considered the nature, extent and quality of the services provided by TAM to the applicable Fund in the past and the services anticipated to be provided in the future. The Board also considered the investment approach for each Fund; the experience, capability and integrity of TAM’s senior management; the financial resources of TAM; and the professional qualifications of TAM’s portfolio management team.

Based on these considerations, the Board determined that TAM can provide investment and related services that are appropriate in scope and extent in light of the applicable Fund’s operations, the competitive landscape of the investment company business and investor needs.

Investment Performance

The Board considered the short- and longer-term performance of each Fund in light of its investment objective, policies and strategies, including relative performance against a peer universe of mutual funds, based on Lipper information, for various trailing periods ended December 31, 2012. On the basis of this information and the Board’s assessment of the nature, extent and quality of the services to be provided by TAM, the Board concluded that TAM is capable of generating a level of investment performance that is appropriate in light of the applicable Fund’s investment objectives, policies and strategies and that is competitive with other investment companies.

Management Fees and Total Expense Ratios

The Board considered the management fee and total expense ratio of each Fund, including information comparing the management fee and total expense ratio of each Fund to the management fees and total expense ratios of peer investment companies, based on Lipper information. On the basis of these considerations, together with the other information it considered, the Board determined that the management fees to be received by TAM under the Investment Advisory Agreements are reasonable in light of the services provided.

Cost of Services Provided and Level of Profitability

The Board reviewed information provided by TAM about the cost of providing fund management, administration and other services to each Fund by TAM and its affiliates. The Board considered the profitability of TAM and its affiliates in providing these services for each Fund, as well as the allocation methodology used for calculating profitability.

Based on this information, the Board determined that the profitability of TAM and its affiliates from their relationships with the Funds was not excessive.

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    15

 

TRANSAMERICA ASSET ALLOCATION VARIABLE FUNDS

INVESTMENT ADVISORY AGREEMENTS — CONTRACT RENEWAL (continued)

 

Economies of Scale

The Board considered economies of scale with respect to the management of each Fund, whether the Fund had appropriately benefited from any economies of scale and whether there was the potential for realization of any further economies of scale. The Board also considered the existence of economies of scale with respect to management of the Transamerica mutual funds overall and the extent to which the Funds benefited from these economies of scale. The Board considered each Fund’s management fee schedule and the existence of breakpoints, if any, and also considered the extent to which TAM shared economies of scale with the Funds through investments in maintaining and developing its capabilities and services. The Board Members concluded that each Fund’s fee structure reflected economies of scale to date and noted that they will have the opportunity to periodically reexamine the appropriateness of the management fees payable to TAM and whether each Fund has achieved economies of scale in the future.

Benefits to TAM or its Affiliates from their Relationships with the Funds

The Board considered any other benefits derived by TAM and its affiliates from their relationships with the Funds. The Board noted that TAM does not realize soft dollar benefits from its relationship with the Funds.

Other Considerations

The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel and maintains the financial, compliance and operational resources reasonably necessary to manage each Fund in a professional manner that is consistent with the best interests of each Fund and its shareholders. In this regard, the Board favorably considered the procedures and policies TAM has in place to enforce compliance with applicable laws and regulations. The Board also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Funds.

Conclusion

After consideration of the factors described above, as well as other factors, the Board Members, including the Independent Board Members, concluded that the renewal of each Investment Advisory Agreement is in the best interests of the applicable Fund and its shareholders and voted to approve the renewal of each Investment Advisory Agreement.

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    16

 

TRANSAMERICA ASSET ALLOCATION VARIABLE FUNDS

RESULTS OF SHAREHOLDER PROXY

 

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Subaccounts solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For   Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  30,271,657.957   $  86,814.495   —   —

Alan F. Warrick

   $  30,271,657.957   $  86,814.495   —   —

Sandra N. Bane

   $  30,270,903.979   $  87,568.473   —   —

Leo J. Hill

   $  30,271,657.957   $  86,814.495   —   —

David W. Jennings

   $  30,271,657.957   $  86,814.495   —   —

Russell A. Kimball, Jr.

   $  30,271,657.957   $  86,814.495   —   —

Eugene M. Mannella

   $  30,271,657.957   $  86,814.495   —   —

Norman R. Nielsen

   $  30,271,657.957   $  86,814.495   —   —

Joyce G. Norden

   $  30,271,657.957   $  86,814.495   —   —

Patricia L. Sawyer

   $  30,271,657.957   $  86,814.495   —   —

John W. Waechter

   $  30,271,657.957   $  86,814.495   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  29,807,878.246

   $  23,182.561   $  527,411.645   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  27,666,996.297

   $  514,021.771   $  2,177,454.384   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  29,795,883.602

   $  49,358.033   $  513,230.817   —

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    17

 

TRANSAMERICA ASSET ALLOCATION VARIABLE FUNDS

Transamerica Asset Allocation - Short Horizon Subaccount

RESULTS OF SHAREHOLDER PROXY

 

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Subaccount solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  4,255,977.309

   $  18,006.482   $  45,935.608   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  4,288,282.177

   $  19,510.986   $  12,126.236   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  4,266,360.614

   $  19,510.986   $  34,047.799   —

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    18

 

TRANSAMERICA ASSET ALLOCATION VARIABLE FUNDS

Transamerica Asset Allocation - Intermediate Horizon Subaccount

RESULTS OF SHAREHOLDER PROXY

 

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Subaccount solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  10,018,136.325

   $  2,498.270   $  129,463.823   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  10,015,270.798

   $  5,363.798   $  129,463.823   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  9,995,758.376

   $  24,876.220   $  129,463.823   —

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    19

 

TRANSAMERICA ASSET ALLOCATION VARIABLE FUNDS

Transamerica Asset Allocation - Intermediate/Long Horizon Subaccount

RESULTS OF SHAREHOLDER PROXY

 

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Subaccount solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  15,533,764.612

   $  2,677.808   $  352,012.214   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  13,363,443.322

   $  489,146.987   $  2,035,864.325   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  15,533,764.612

   $  4,970.827   $  349,719.195   —

 

Transamerica Asset Allocation Variable Funds   Semi-Annual Report 2013

Page    20

 

 

 

Transamerica Partners Portfolios

 

 

 

        
     I   
       

(This page intentionally left blank)

Schedules of Investments Composition

 

 

At June 30, 2013

(The following charts summarize the Schedule of Investments of each portfolio by asset type)

(unaudited)

 

Transamerica Partners Money Market Portfolio    % of Net
Assets		  

Commercial Paper

      69.1 % 

Certificates of Deposit

      14.7   

Repurchase Agreements

      10.8   

Corporate Debt Securities

      2.7   

Investment Company

      2.2   

Asset-Backed Security

      0.5   

Other Assets and Liabilities - Net

      (0.0 )(A) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners High Quality Bond Portfolio    % of Net
Assets		  

Corporate Debt Securities

      28.7 % 

Asset-Backed Securities

      26.4   

Mortgage-Backed Securities

      16.4   

U.S. Government Agency Obligations

      12.9   

U.S. Government Obligations

      11.7   

Repurchase Agreement

      2.3   

Securities Lending Collateral

      1.9   

Convertible Bond

      0.8   

Foreign Government Obligations

      0.5   

Other Assets and Liabilities - Net

      (1.6 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Inflation-Protected Securities
Portfolio		    % of Net
Assets		  

U.S. Government Obligations

      95.6 % 

Foreign Government Obligations

      3.6   

Securities Lending Collateral

      3.0   

Purchased Swaptions

      0.5   

Structured Notes Debt

      0.2   

Purchased Options

      0.2   

Mortgage-Backed Security

      0.0 (A) 

Purchased Foreign Exchange Option

      0.0 (A) 

Short-Term Investment Company

      0.0 (A) 

Other Assets and Liabilities - Net(B)

      (3.1 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Core Bond Portfolio    % of Net
Assets		  

U.S. Government Agency Obligations

      43.7 % 

Corporate Debt Securities

      26.9   

Asset-Backed Securities

      14.2   

Mortgage-Backed Securities

      13.1   

U.S. Government Obligations

      11.9   

Securities Lending Collateral

      8.0   

Foreign Government Obligations

      3.4   

Short-Term Investment Company

      2.4   

Preferred Stocks

      0.4   

Preferred Corporate Debt Securities

      0.3   

Municipal Government Obligations

      0.3   

Warrant

      0.0 (A) 

Other Assets and Liabilities - Net(B)

      (24.6 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners High Yield Bond Portfolio    % of Net
Assets		  

Corporate Debt Securities

      85.4 % 

Loan Assignments

      5.6   

Repurchase Agreement

      4.8   

Convertible Preferred Stocks

      1.2   

Structured Notes Debt

      0.5   

Common Stocks

      0.3   

Preferred Stock

      0.3   

Convertible Bonds

      0.3   

Right

      0.1   

Warrants

      0.0 (A) 

Investment Company

      0.0 (A) 

Other Assets and Liabilities - Net

      1.5   

Total

      100.0 % 
  

 

 

  
Transamerica Partners Balanced Portfolio    % of Net
Assets		  

Common Stocks

      59.7 % 

U.S. Government Agency Obligations

      16.8   

Corporate Debt Securities

      9.5   

Asset-Backed Securities

      5.4   

Mortgage-Backed Securities

      5.3   

Securities Lending Collateral

      4.4   

U.S. Government Obligations

      3.7   

Short-Term Investment Company

      3.5   

Foreign Government Obligations

      1.3   

Repurchase Agreement

      0.5   

Preferred Stocks

      0.2   

Short-Term U.S. Government Obligation

      0.1   

Municipal Government Obligations

      0.1   

Preferred Corporate Debt Securities

      0.1   

Warrant

      0.0 (A) 

Other Assets and Liabilities - Net(B)

      (10.6 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Large Value Portfolio    % of Net
Assets		  

Common Stocks

      99.0 % 

Securities Lending Collateral

      3.1   

Repurchase Agreement

      1.0   

Other Assets and Liabilities - Net

      (3.1 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Large Core Portfolio    % of Net
Assets		  

Common Stocks

      97.4 % 

Securities Lending Collateral

      3.1   

Repurchase Agreement

      2.1   

Other Assets and Liabilities - Net

      (2.6 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Large Growth Portfolio    % of Net
Assets		  

Common Stocks

      99.8 % 

Securities Lending Collateral

      3.4   

Repurchase Agreement

      0.2   

Other Assets and Liabilities - Net

      (3.4 ) 

Total

      100.0 % 
  

 

 

  
 

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    1

Schedules of Investments Composition (continued)

 

 

At June 30, 2013

(The following charts summarize the Schedule of Investments of each portfolio by asset type)

(unaudited)

 

Transamerica Partners Mid Value Portfolio    % of Net
Assets		  

Common Stocks

      97.8 % 

Securities Lending Collateral

      7.0   

Repurchase Agreement

      2.2   

Other Assets and Liabilities - Net

      (7.0 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Mid Growth Portfolio    % of Net
Assets		  

Common Stocks

      99.4 % 

Repurchase Agreement

      1.0   

Other Assets and Liabilities - Net

      (0.4 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Small Value Portfolio    % of Net
Assets		  

Common Stocks

      96.6 % 

Securities Lending Collateral

      25.7   

Repurchase Agreement

      2.4   

Other Assets and Liabilities - Net

      (24.7 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Small Core Portfolio    % of Net
Assets		  

Common Stocks

      97.5 % 

Repurchase Agreement

      2.7   

Other Assets and Liabilities - Net

      (0.2 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Small Growth Portfolio    % of Net
Assets		  

Common Stocks

      97.9 % 

Securities Lending Collateral

      25.6   

Repurchase Agreement

      2.2   

Other Assets and Liabilities - Net

      (25.7 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners International Equity Portfolio    % of Net
Assets		  

Common Stocks

      96.2 % 

Securities Lending Collateral

      6.1   

Repurchase Agreement

      2.5   

Other Assets and Liabilities - Net(B)

      (4.8 ) 

Total

      100.0 % 
  

 

 

  

 

 

(A)  Amount rounds to less than 0.1%

 

(B)  The Other Assets and Liabilities - Net category may include, but is not limited to, Reverse Repurchase Agreements, Forward Foreign Currency Contracts, Futures Contracts, Swap Agreements, Written Options and Swaptions, Securities Sold Short, TBA Short Commitments, and Cash Collateral.
 

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    2

Transamerica Partners Money Market Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Principal      Value  

ASSET-BACKED SECURITY - 0.5%

  

   

CCG Receivables Trust

     

Series 2013-1, Class A1

0.37%, 04/14/2014 - 144A

     $  5,205,397         $  5,205,397   
    

 

 

  

Total Asset-Backed Security (cost $5,205,397)

  

      5,205,397   
    

 

 

  

CORPORATE DEBT SECURITIES - 2.7%

  

   

Commercial Banks - 2.1%

     

Royal Bank of Canada,

     

Series GMTN

1.13%, 01/15/2014

     6,100,000         6,127,452   

Westpac Banking Corp.
0.65%, 09/16/2013 - 144A (A)

     13,150,000         13,162,020   

Diversified Financial Services - 0.6%

     

JPMorgan Chase & Co.,

     

Series MTN

1.03%, 09/30/2013 (A)

     5,300,000         5,310,433   
    

 

 

  

Total Corporate Debt Securities (cost $24,599,905)

  

      24,599,905   
    

 

 

  

CERTIFICATES OF DEPOSIT - 14.7%

     

Automobiles - 0.2%

     

Prestige Auto Receivables Trust
0.28%, 04/15/2014 - 144A

     2,045,240         2,045,240   

Commercial Banks - 14.5%

     

Bank of Montreal
0.06%, 07/05/2013

     30,000,000         30,000,000   

Bank of Nova Scotia

     

0.20%, 03/14/2014

     18,000,000         18,000,000   

0.25%, 04/09/2014

     15,000,000         15,000,000   

Barclays Bank PLC
0.58%, 10/02/2013 - 144A (B)

     21,000,000         21,000,000   

Mizuho Bank, Ltd.

     

0.12%, 07/03/2013

     15,000,000         15,000,000   

0.27%, 11/12/2013

     25,000,000         25,000,000   

Westpac Banking Corp.
0.29%, 04/25/2014

     10,000,000         10,000,000   
    

 

 

  

Total Certificates of Deposit (cost $136,045,240)

  

      136,045,240   
    

 

 

  

COMMERCIAL PAPER - 69.1%

     

Automobiles - 0.1%

     

VW Credit, Inc.
0.26%, 07/01/2013 - 144A

     1,000,000         999,985   

Capital Markets - 2.2%

     

Goldman Sachs Co.
Promissory Note
0.47%, 09/05/2013 (B)

     20,000,000         20,000,000   

Chemicals - 0.4%

     

Ecolab, Inc.
0.23%, 07/26/2013 - 144A

     4,000,000         3,999,310   

Commercial Banks - 31.6%

     

Bank of Tokyo-Mitsubishi UFJ, Ltd.
0.37%, 06/20/2014 (A)

     20,000,000         20,000,000   

BNP Paribas Canada
0.13%, 07/02/2013

     30,000,000         29,999,675   

Deutsche Bank Financial LLC
0.34%, 10/30/2013

     25,000,000         24,970,958   

DNB Bank ASA

     

0.25%, 10/01/2013 - 144A

     15,000,000         14,990,208   

0.26%, 09/17/2013 - 144A

     11,500,000         11,493,356   
     Principal      Value  

Commercial Banks (continued)

     

HSBC USA, Inc.
0.21%, 09/18/2013

     $  5,000,000         $  4,997,638   

Kells Funding LLC
0.24%, 12/13/2013

     30,000,000         29,966,600   

Skandinaviska Enskilda Banken AB

     

0.27%, 09/19/2013 - 144A

     15,000,000         14,990,775   

0.29%, 08/26/2013 - 144A

     20,000,000         19,990,736   

Standard Chartered Bank
0.25%, 07/11/2013 - 12/23/2013 - 144A

     22,200,000         22,185,546   

Straight-A Funding LLC
0.08%, 07/03/2013

     23,160,000         23,159,794   

Sumitomo Mitsui Banking Corp.

     

0.22%, 09/09/2013 - 144A

     5,000,000         4,997,800   

0.23%, 07/03/2013 - 144A

     20,000,000         19,999,489   

0.24%, 11/18/2013 - 144A

     10,000,000         9,990,533   

Swedbank AB

     

0.28%, 12/02/2013

     15,000,000         14,981,800   

0.30%, 11/18/2013

     15,000,000         14,982,546   

Westpac Securities NZ, Ltd.
0.24%, 08/19/2013 - 144A

     10,000,000         9,996,600   

Diversified Financial Services - 32.4%

  

   

BNP Paribas Finance, Inc.
0.08%, 07/03/2013

     11,400,000         11,399,899   

CAFCO LLC

     

0.28%, 09/19/2013 - 144A

     20,000,000         19,987,244   

0.29%, 09/26/2013 - 144A

     10,000,000         9,992,831   

Cancara Asset Securitisation LLC
0.19%, 08/05/2013 - 08/19/2013 - 144A

     25,000,000         24,994,379   

CIESCO LLC

     

0.25%, 09/04/2013 - 144A

     10,000,000         9,995,347   

0.27%, 08/16/2013 - 144A

     15,000,000         14,994,600   

ING US Funding LLC

     

0.24%, 09/19/2013

     13,800,000         13,792,613   

0.26%, 08/27/2013

     20,000,000         19,991,478   

0.33%, 09/20/2013

     5,000,000         4,996,196   

Kells Funding LLC
0.24%, 10/23/2013

     10,000,000         9,992,267   

Mont Blanc Capital Corp.

     

0.22%, 08/07/2013 - 144A

     12,026,000         12,023,134   

0.24%, 10/09/2013 - 144A

     15,000,000         14,989,800   

Natixis US Finance Co. LLC
0.11%, 07/01/2013

     42,500,000         42,499,740   

Nieuw Amsterdam Receivables Corp.
0.12%, 07/02/2013 - 144A

     15,000,000         14,999,850   

Rabobank USA Financial Corp.
0.19%, 07/03/2013

     5,000,000         4,999,894   

Regency Markets No. 1 LLC
0.17%, 07/22/2013 - 144A

     35,000,000         34,996,199   

Salisbury Receivables Co. LLC
0.29%, 10/18/2013 - 144A

     10,000,000         9,991,058   

Sheffield Receivables Corp.
0.24%, 07/25/2013 - 144A

     25,000,000         24,995,667   

Electric Utilities - 0.9%

     

American Electric Power Co., Inc.
0.29%, 07/24/2013 - 144A

     4,300,000         4,299,134   

Duke Energy Corp.
0.25%, 08/01/2013 - 144A

     4,300,000         4,299,015   

Independent Power Producers & Energy Traders - 0.5%

  

Southern Power Co.
0.27%, 07/30/2013 - 144A

     4,300,000         4,299,000   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    3

Transamerica Partners Money Market Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Multi-Utilities - 0.5%

     

Dominion Resources, Inc.
0.25%, 07/12/2013 - 144A

     $  4,300,000         $  4,299,612   

Oil, Gas & Consumable Fuels - 0.5%

  

   

Kinder Morgan Energy Partners, LP 0.28%, 07/24/2013 - 144A

     4,300,000         4,299,164   
    

 

 

  

Total Commercial Paper (cost $637,821,470)

  

      637,821,470   
    

 

 

  
     Shares      Value  

INVESTMENT COMPANY - 2.2%

  

   

Commercial Banks - 2.2%

     

Bank of Tokyo-Mitsubishi UFJ, Ltd.

     20,000,000         19,999,783   
    

 

 

  

Total Investment Company (cost $19,999,783)

  

      19,999,783   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENTS - 10.8%

  

   

Barclays Capital PLC
0.12% (C), dated 06/28/2013, to be repurchased at $99,500,000 on 07/01/2013. Collateralized by U.S. Government Obligations,
0.54% - 11.37%, due
11/15/2025 - 05/25/2043, and with a total value of $101,490,000.

     $  99,500,000         $  99,500,000   

State Street Bank & Trust Co.
0.03% (C), dated 06/28/2013, to be repurchased at $192,403 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation, 3.25%, due 05/01/2041, and with a value of $198,205.

     192,403         192,403   
    

 

 

  

Total Repurchase Agreements (cost $99,692,403)

  

      99,692,403   
    

 

 

  
  

Total Investment Securities (cost $923,364,198) (D)

  

      923,364,198   

Other Assets and Liabilities - Net

  

      (143,448 ) 
    

 

 

  

Net Assets

       $  923,220,750   
    

 

 

  
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) Floating or variable rate note. Rate is listed as of June 30, 2013.
(B) Illiquid. Total aggregate market value of illiquid securities is $41,000,000, or 4.44% of the portfolio’s net assets.
(C) Rate shown reflects the yield at June 30, 2013.
(D) Aggregate cost for federal income tax purposes is $923,364,198.

DEFINITIONS:

 

144A    144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2013, these securities aggregated $388,503,029, or 42.08% of the portfolio’s net assets.
GMTN    Global Medium Term Note
MTN    Medium Term Note

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		    

Value at
June 30, 2013

  

ASSETS

                                

Investment Securities

                                

Asset-Backed Security

   $ —      $ 5,205,397      $ —      $ 5,205,397   

Corporate Debt Securities

     —        24,599,905        —        24,599,905   

Certificates of Deposit

     —        136,045,240        —        136,045,240   

Commercial Paper

     —        637,821,470        —        637,821,470   

Investment Company

     —        19,999,783        —        19,999,783   

Repurchase Agreements

     —        99,692,403        —        99,692,403   

Total Investment Securities

   $ —      $ 923,364,198      $ —      $ 923,364,198   

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    4

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 11.7%

  

   

U.S. Treasury Note

     

0.13%, 12/31/2014

     $  17,000,000         $  16,969,451   

0.25%, 02/28/2015 - 08/15/2015

     26,250,000         26,225,130   

0.25%, 05/15/2016 (A)

     2,810,000         2,780,144   

0.75%, 12/31/2017

     3,460,000         3,385,122   
    

 

 

  

Total U.S. Government Obligations
(cost $49,484,989)

   

      49,359,847   
    

 

 

  

U.S. GOVERNMENT AGENCY OBLIGATIONS - 12.9%

  

   

Fannie Mae

     

2.50%, 05/15/2014

     950,000         968,862   

4.00%, 07/25/2033

     2,131         2,150   

5.50%, 12/01/2022

     395,692         429,290   

6.00%, 07/01/2014 - 09/01/2014

     22,535         22,801   

Freddie Mac

     

3.38%, 03/15/2018

     876,375         901,377   

4.50%, 05/01/2023 - 09/01/2026

     5,994,929         6,307,790   

5.50%, 04/01/2017

     140,861         150,474   

FREMF Mortgage Trust

     

Series 2013-K502, Class B

2.84%, 03/25/2045 - 144A (B)

     1,820,000         1,778,848   

Ginnie Mae

     

1.49%, 03/16/2043

     3,907,626         3,883,961   

1.78%, 09/16/2041

     4,000,000         4,030,625   

4.52%, 12/20/2061

     2,638,516         2,903,502   

4.80%, 02/20/2063

     3,766,807         4,169,572   

4.95%, 05/20/2062

     4,532,870         4,992,788   

5.32%, 04/20/2061

     2,349,266         2,612,135   

5.47%, 01/20/2060

     7,254,129         8,115,651   

5.59%, 11/20/2059

     6,829,534         7,491,637   

5.65%, 06/20/2059

     4,603,321         5,059,451   

5.75%, 12/15/2022

     569,348         630,143   
    

 

 

  

Total U.S. Government Agency Obligations
(cost $54,961,734)

   

      54,451,057   
    

 

 

  

FOREIGN GOVERNMENT OBLIGATIONS - 0.5%

  

   

Province of Ontario Canada
2.30%, 05/10/2016 (A)

     1,985,000         2,058,445   
    

 

 

  

Total Foreign Government Obligations
(cost $2,023,384)

   

      2,058,445   
    

 

 

  

MORTGAGE-BACKED SECURITIES - 16.4%

  

   

Bear Stearns Commercial Mortgage Securities

     

Series 2005-PWR8, Class A4

4.67%, 06/11/2041

     2,600,000         2,735,795   

CFCRE Commercial Mortgage Trust

     

Series 2011-C1, Class A2

3.76%, 04/15/2044 - 144A

     3,000,000         3,158,475   

Commercial Mortgage Pass-Through Certificates

     

Series 2006-C8, Class A3

     

5.31%, 12/10/2046

     5,690,000         5,773,142   

Series 2012-9W57, Class A

     

2.37%, 02/10/2029 - 144A

     4,050,000         4,134,576   

Commercial Mortgage Trust

     

Series 2004-GG1, Class A7

5.32%, 06/10/2036 (B)

     3,815,151         3,885,567   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Credit Suisse Mortgage Capital Certificates

     

Series 2007-C5, Class A2

5.59%, 09/15/2040

     $  316,382         $  315,731   

DBUBS Mortgage Trust

     

Series 2011-LC1A, Class A1

     

3.74%, 11/10/2046 - 144A

     4,266,375         4,508,338   

Series 2011-LC3A, Class A2

     

3.64%, 08/10/2044

     1,400,000         1,478,179   

Del Coronado Trust

     

Series 2013-HDC, Class A

0.99%, 03/15/2026 - 144A (B)

     2,050,000         2,044,752   

GS Mortgage Securities Trust

     

Series 2006-GG6, Class A2

     

5.51%, 04/10/2038 (B)

     283,652         289,259   

Series 2006-GG8, Class AAB

     

5.54%, 11/10/2039

     3,074,509         3,124,749   

Series 2007-GG10, Class AAB

     

5.98%, 08/10/2045 (B)

     4,089,258         4,263,048   

JPMBB Commercial Mortgage
Securities Trust

     

Series 2013-C12, Class A1

1.09%, 07/15/2045

     1,730,000         1,716,474   

JPMorgan Chase Commercial Mortgage Securities Corp.

     

Series 2007-C1, Class A3

     

5.79%, 02/15/2051

     7,000,000         7,191,835   

Series 2007-CB18, Class A3

     

5.45%, 06/12/2047

     1,575,801         1,616,462   

JPMorgan Chase Commercial Mortgage Securities Trust

     

Series 2002-C2, Class E

     

5.56%, 12/12/2034 (B)

     1,120,000         1,141,194   

Series 2006-CB14, Class A4

     

5.48%, 12/12/2044 (B)

     4,000,000         4,330,444   

Series 2007-CB20, Class A3

     

5.82%, 02/12/2051

     950,000         977,149   

LB-UBS Commercial Mortgage Trust

     

Series 2005-C7, Class A2

     

5.10%, 11/15/2030

     24,138         24,258   

Series 2006-C4, Class AAB

     

6.04%, 06/15/2032 (B)

     2,516,913         2,600,948   

Series 2007-C2, Class A2

     

5.30%, 02/15/2040

     374,080         374,427   

Merrill Lynch / Countrywide Commercial Mortgage Trust

     

Series 2007-8, Class A2

6.06%, 08/12/2049 (B)

     1,628,520         1,669,407   

Merrill Lynch Mortgage Trust

     

Series 2005-MKB2, Class A2

     

4.81%, 09/12/2042

     15,836         15,826   

Series 2006-C1, Class A2

     

5.83%, 05/12/2039 (B)

     187,851         188,012   

ML-CFC Commercial Mortgage Trust

     

Series 2007-7, Class ASB

5.75%, 06/12/2050 (B)

     1,751,016         1,812,249   

Sequoia Mortgage Trust

     

Series 2012-2, Class A2

3.50%, 04/25/2042 (B)

     589,599         579,045   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    5

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Wachovia Bank Commercial
Mortgage Trust

     

Series 2007-C30, Class A3

     

5.25%, 12/15/2043

     $  1,354,246         $  1,388,638   

Series 2007-C30, Class APB

     

5.29%, 12/15/2043

     3,778,338         3,836,233   

Series 2007-C33, Class A3

     

6.12%, 02/15/2051 (B)

     3,635,773         3,722,024   
    

 

 

  

Total Mortgage-Backed Securities (cost $69,142,731)

  

      68,896,236   
    

 

 

  

ASSET-BACKED SECURITIES -  26.4%

  

   

ARI Fleet Lease Trust

     

Series 2012-B, Class A

0.49%, 01/15/2021 - 144A (B)

     598,783         597,660   

Avis Budget Rental Car Funding
AESOP LLC

     

Series 2010-5A, Class A

3.15%, 03/20/2017 - 144A

     2,000,000         2,085,752   

BMW Vehicle Owner Trust

     

Series 2010-A, Class A4

2.10%, 10/25/2016

     2,519,241         2,522,231   

Capital One Multi-Asset Execution Trust

     

Series 2006-A3, Class A3

5.05%, 12/17/2018

     4,000,000         4,417,976   

Series 2007-A7, Class A7

5.75%, 07/15/2020

     1,000,000         1,164,028   

CarMax Auto Owner Trust

     

Series 2010-2, Class A3

1.41%, 02/16/2015

     436,473         436,990   

CenterPoint Energy Restoration
Bond Co. LLC

     

Series 2009-1, Class A1

1.83%, 02/15/2016

     2,056,569         2,079,734   

Chase Issuance Trust

     

Series 2012-A3, Class A3

0.79%, 06/15/2017

     3,000,000         2,998,899   

Series 2012-A5, Class A5

0.59%, 08/15/2017

     3,875,000         3,857,295   

Citibank Credit Card Issuance Trust

     

Series 2009-A4, Class A4

4.90%, 06/23/2016

     2,100,000         2,188,555   

CLI Funding LLC

     

Series 2013-1A

2.83%, 03/18/2028 - 144A

     1,072,500         1,038,270   

CNH Equipment Trust

     

Series 2010-A, Class B

4.04%, 09/15/2016

     2,175,000         2,183,013   

Series 2010-B, Class A4

1.74%, 01/17/2017

     3,050,889         3,069,118   

Series 2011-B, Class A

4 1.29%, 09/15/2017

     3,495,000         3,512,555   

Series 2012-C, Class B

1.30%, 03/16/2020

     640,000         633,567   

Detroit Edison Securitization Funding LLC
Series 2001-1, Class A6
6.62%, 03/01/2016

     2,750,000         2,906,173   

Discover Card Master Trust
Series 2007-A1, Class A1
5.65%, 03/16/2020

     4,000,000         4,627,472   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

Entergy Texas Restoration Funding LLC
Series 2009-A, Class A1
1.00%, 02/01/2016

     $  900,703         $  910,985   

Ford Credit Auto Owner Trust

     

Series 2010-B, Class A4
1.58%, 09/15/2015

     2,555,690         2,570,041   

Series 2010-B, Class B
2.54%, 02/15/2016

     5,500,000         5,628,062   

Series 2013-A, Class A4
0.78%, 05/15/2018

     2,600,000         2,579,140   

Ford Credit Floorplan Master Owner Trust
Series 2010-5, Class A1
1.50%, 09/15/2015

     2,000,000         2,004,418   

Series 2012-4, Class B
0.94%, 09/15/2016

     555,000         554,919   

GE Capital Credit Card Master Note Trust
Series 2012-1, Class A

     

1.03%, 01/15/2018

     4,400,000         4,418,748   

Series 2012-5, Class B

1.51%, 06/15/2018

     1,850,000         1,845,164   

GE Equipment Transportation LLC

     

Series 2011-1, Class A4

1.33%, 05/20/2019

     1,000,000         1,002,653   

Series 2013-1, Class B

1.23%, 03/24/2021

     2,150,000         2,110,829   

Huntington Auto Trust

     

Series 2011-1A, Class A4

1.31%, 11/15/2016 - 144A

     2,000,000         2,010,500   

Series 2011-1A, Class B

1.84%, 01/17/2017 - 144A

     1,500,000         1,519,907   

Hyundai Auto Receivables Trust

     

Series 2010-B, Class A4

1.63%, 03/15/2017

     2,000,000         2,025,420   

Series 2011-A, Class A4

1.78%, 12/15/2015

     3,000,000         3,034,323   

Series 2012-C, Class C

1.42%, 02/15/2019

     1,010,000         1,002,071   

John Deere Owner Trust
Series 2012-B, Class A4
0.69%, 01/15/2019

     1,440,000         1,428,994   

Macquarie Equipment Funding Trust
Series 2011-A, Class A3
1.91%, 04/20/2017  - 144A

     1,364,673         1,373,909   

MBNA Credit Card Master Note Trust
Series 2004-B1, Class B1
4.45%, 08/15/2016

     1,100,000         1,128,442   

Mercedes-Benz Auto Receivables Trust
Series 2010-1, Class A3
1.42%, 08/15/2014

     56,102         56,123   

MMAF Equipment Finance LLC

     

Series 2009-AA, Class A4

3.51%, 01/15/2030 - 144A

     4,001,428         4,100,428   

Series 2011-AA, Class A3

1.27%, 09/15/2015 - 144A

     1,145,283         1,147,363   

North Carolina State Education Assistance Authority
Series 2011-2, Class A1
0.73%, 10/26/2020 (B)

     673,526         664,622   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    6

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

SMART Trust

     

Series 2012-4US, Class A4A

1.25%, 08/14/2018

     $  1,100,000         $  1,106,875   

Series 2013-2US, Class A3B

0.62%, 01/14/2017 (B)

     2,805,000         2,801,914   

Volkswagen Auto Loan Enhanced Trust

     

Series 2010-1, Class A4

2.14%, 08/22/2016

     706,612         708,752   

Series 2011-1, Class A3

1.22%, 06/22/2015 (A)

     1,602,021         1,606,013   

Series 2013-1, Class A4

0.78%, 07/22/2019

     3,850,000         3,790,648   

Volvo Financial Equipment LLC
Series 2012-1A, Class C
2.38%, 09/16/2019  - 144A

     2,250,000         2,279,804   

World Financial Network Credit Card Master Trust

     

Class A

1.61%, 12/15/2021  - 144A

     5,000,000         4,889,405   

Series 2009-D, Class A

4.66%, 05/15/2017

     1,250,000         1,252,456   

Series 2010-A, Class A

3.96%, 04/15/2019

     4,750,000         5,027,400   

Series 2013-B, Class A

0.91%, 03/16/2020

     560,000         555,757   

World Omni Auto Receivables Trust
Series 2010-A, Class A4
2.21%, 09/15/2013

     1,076,670         1,081,826   

World Omni Automobile Lease Securitization Trust

     

Series 2011-A, Class A3

1.49%, 10/15/2014

     1,603,199         1,605,270   

Series 2012-A, Class B

1.49%, 02/15/2018

     865,000         863,277   
    

 

 

  

Total Asset-Backed Securities (cost $111,412,164)

  

      111,005,746   
    

 

 

  

CORPORATE DEBT SECURITIES - 28.7%

  

   

Aerospace & Defense  - 0.3%

     

Lockheed Martin Corp.
2.13%, 09/15/2016

     1,320,000         1,347,572   

Beverages - 1.0%

     

Bottling Group LLC
6.95%, 03/15/2014

     4,210,000         4,393,594   

Capital Markets - 2.2%

     

Goldman Sachs Group, Inc.
3.63%, 02/07/2016 (A)

     3,005,000         3,136,802   

Morgan Stanley, Series GMTN
0.58%, 01/09/2014 (B)

     6,100,000         6,083,689   

Chemicals - 0.8%

     

Airgas, Inc.
4.50%, 09/15/2014 (A)

     3,301,000         3,442,798   

Commercial Banks  - 5.1%

     

Bank of Nova Scotia
1.32%, 01/12/2015 (B)

     3,875,000         3,919,396   

Credit Suisse
5.50%, 05/01/2014

     4,230,000         4,402,389   

Export-Import Bank of Korea
1.25%, 11/20/2015

     2,220,000         2,194,619   
     Principal      Value  

Commercial Banks (continued)

  

   

KFW
1.00%, 01/12/2015

     $  1,250,000         $  1,261,930   

PNC Funding Corp.
2.70%, 09/19/2016

     4,175,000         4,345,165   

Wells Fargo Bank NA
4.75%, 02/09/2015

     5,000,000         5,276,950   

Consumer Finance - 2.1%

     

American Express Credit Corp.
1.12%, 06/24/2014 (A) (B)

     4,345,000         4,370,101   

Capital One Financial Corp.

     

2.13%, 07/15/2014

     2,195,000         2,220,723   

7.38%, 05/23/2014

     2,200,000         2,325,081   

Diversified Consumer Services - 0.8%

     

Yale University, Series MTN
2.90%, 10/15/2014

     3,125,000         3,219,091   

Diversified Financial Services  - 5.8%

     

Citigroup, Inc., Series GMTN
5.50%, 10/15/2014

     4,625,000         4,864,496   

CME Group, Inc.
5.40%, 08/01/2013

     2,275,000         2,283,707   

Ford Motor Credit Co., LLC

     

3.98%, 06/15/2016

     1,750,000         1,833,353   

4.21%, 04/15/2016

     2,060,000         2,151,975   

General Electric Capital Corp.
1.63%, 07/02/2015

     7,700,000         7,790,005   

JPMorgan Chase & Co.
2.00%, 08/15/2017

     5,610,000         5,567,622   

Diversified Telecommunication Services - 0.3%

  

   

Nippon Telegraph & Telephone Corp. 1.40%, 07/18/2017

     1,300,000         1,278,182   

Electric Utilities - 0.5%

     

Hydro-Quebec
1.38%, 06/19/2017

     2,160,000         2,152,656   

Food & Staples Retailing - 0.3%

     

CVS Caremark Corp.
3.25%, 05/18/2015

     1,100,000         1,144,761   

Insurance - 3.2%

     

Berkshire Hathaway, Inc.
3.20%, 02/11/2015

     2,465,000         2,563,925   

Metropolitan Life Global Funding I

     

1.50%, 01/10/2018 - 144A

     3,600,000         3,490,233   

2.50%, 09/29/2015 - 144A

     3,685,000         3,811,860   

New York Life Global Funding
1.30%, 10/30/2017 - 144A

     3,745,000         3,650,169   

Machinery - 0.9%

     

Caterpillar, Inc.
1.38%, 05/27/2014

     3,775,000         3,803,864   

Media - 0.6%

     

Comcast Corp.
5.30%, 01/15/2014

     2,600,000         2,663,801   

Office Electronics - 0.8%

     

Xerox Corp.
8.25%, 05/15/2014

     3,005,000         3,192,686   

Oil, Gas & Consumable Fuels - 1.8%

     

Shell International Finance BV
4.00%, 03/21/2014

     4,025,000         4,125,424   

Total Capital Canada, Ltd.
1.63%, 01/28/2014 (A)

     1,960,000         1,973,114   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    7

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Oil, Gas & Consumable Fuels (continued)

  

   

Total Capital SA
3.00%, 06/24/2015

     $  1,500,000         $  1,567,485   

Pharmaceuticals - 0.5%

     

Novartis Capital Corp.
4.13%, 02/10/2014

     2,015,000         2,059,098   

Real Estate Investment Trusts - 0.8%

     

Simon Property Group, LP
5.10%, 06/15/2015

     2,975,000         3,216,448   

Wireless Telecommunication Services - 0.9%

  

   

America Movil SAB de CV
2.38%, 09/08/2016

     3,618,000         3,665,790   
    

 

 

  

Total Corporate Debt Securities (cost $119,434,203)

  

      120,790,554   
    

 

 

  

CONVERTIBLE BOND - 0.8%

     

Consumer Finance - 0.8%

     

American Express Credit Corp.,
Series MTN
2.38%, 03/24/2017

     3,305,000         3,374,012   
    

 

 

  

Total Convertible Bond (cost $3,298,200)

        3,374,012   
    

 

 

  
     Shares      Value  

SECURITIES LENDING COLLATERAL - 1.9%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (C)

     8,035,805         8,035,805   
    

 

 

  

Total Securities Lending Collateral (cost $8,035,805)

  

      8,035,805   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 2.3%

     

State Street Bank & Trust Co.
0.03% (C), dated 06/28/2013, to
be repurchased at $9,470,477 on 07/01/2013.
Collateralized by a U.S. Government
Agency Obligation, 3.25%, due
05/01/2041, and with a value of $9,661,003.

     $  9,470,453         $  9,470,453   
    

 

 

  

Total Repurchase Agreement (cost $9,470,453)

  

      9,470,453   
    

 

 

  
    

Total Investment Securities (cost $427,263,663) (D)

  

      427,442,155   

Other Assets and Liabilities - Net

        (6,547,988 ) 
    

 

 

  

Net Assets

       $  420,894,167   
    

 

 

  
 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  All or a portion of this security is on loan. The value of all securities on loan is $7,872,611. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(B) Floating or variable rate note. Rate is listed as of June 30, 2013.
(C) Rate shown reflects the yield at June 30, 2013.
(D) Aggregate cost for federal income tax purposes is $427,263,663. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $3,365,890 and $3,187,398, respectively. Net unrealized appreciation for tax purposes is $178,492.

DEFINITIONS:

 

144A    144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2013, these securities aggregated $47,620,249, or 11.31% of the portfolio’s net assets.
GMTN    Global Medium Term Note
MTN    Medium Term Note

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    8

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		    

Value at
June 30, 2013

  

ASSETS

                                

Investment Securities

                                

U.S. Government Obligations

   $ —      $ 49,359,847      $ —      $ 49,359,847   

U.S. Government Agency Obligations

     —        54,451,057        —        54,451,057   

Foreign Government Obligations

     —        2,058,445        —        2,058,445   

Mortgage-Backed Securities

     —        68,896,236        —        68,896,236   

Asset-Backed Securities

     —        111,005,746        —        111,005,746   

Corporate Debt Securities

     —        120,790,554        —        120,790,554   

Convertible Bond

     —        3,374,012        —        3,374,012   

Securities Lending Collateral

     8,035,805        —        —        8,035,805   

Repurchase Agreement

     —        9,470,453        —        9,470,453   

Total Investment Securities

   $ 8,035,805      $ 419,406,350      $ —      $ 427,442,155   
       
     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		    

Value at
June 30, 2013

  

LIABILITIES

                                

Other Liabilities (F)

                                

Collateral for Securities on Loan

   $ —      $ (8,035,805 )    $ —      $ (8,035,805 ) 

Total Other Liabilities

   $ —      $ (8,035,805 )    $ —      $ (8,035,805 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    9

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 95.6%

  

U.S. Treasury Inflation Indexed Bond

     

0.63%, 02/15/2043 (A)

     $  6,463,499         $  5,435,906   

0.75%, 02/15/2042

     10,436,914         9,187,741   

1.75%, 01/15/2028

     8,986,017         10,067,852   

2.00%, 01/15/2026

     3,743,582         4,322,961   

2.13%, 02/15/2040 - 02/15/2041

     11,298,282         13,745,879   

2.38%, 01/15/2025 - 01/15/2027

     22,747,357         27,178,113   

2.50%, 01/15/2029 (A)

     7,500,883         9,251,874   

3.38%, 04/15/2032 (A)

     932,055         1,309,173   

3.63%, 04/15/2028

     7,613,310         10,566,444   

3.88%, 04/15/2029

     9,859,971         14,210,683   

U.S. Treasury Inflation Indexed Note

     

0.13%, 04/15/2016 - 01/15/2023

     117,545,261         118,035,086   

0.50%, 04/15/2015

     18,730,599         19,197,403   

0.63%, 07/15/2021

     192,228         198,385   

1.13%, 01/15/2021

     10,832,989         11,585,373   

1.25%, 07/15/2020

     5,694,309         6,185,443   

1.38%, 07/15/2018 - 01/15/2020

     7,063,786         7,702,231   

1.63%, 01/15/2015

     2,667,245         2,773,311   

1.88%, 07/15/2015

     6,731,228         7,155,612   

1.88%, 07/15/2019 (B)

     4,438,327         5,003,868   

2.00%, 07/15/2014 - 01/15/2016

     2,637,682         2,832,772   

2.13%, 01/15/2019

     1,484,254         1,678,482   

2.50%, 07/15/2016

     8,560,088         9,462,244   

U.S. Treasury Note
1.75%, 05/15/2023 (A)

     175,000         163,898   
    

 

 

  

Total U.S. Government Obligations (cost $302,973,999)

  

      297,250,734   
    

 

 

  

FOREIGN GOVERNMENT OBLIGATIONS - 3.6%

  

   

Hellenic Republic Government Bond
4.40%, 10/15/2042 (C)

     EUR  366,000         5,002   

International Bank for Reconstruction & Development Series CPI
2.09%, 12/10/2013 (C)

    $  315,000         311,220   

Italy Buoni Poliennali del Tesoro

     

2.10%, 09/15/2016

     EUR  7,563,754         9,875,089   

2.15%, 09/15/2014

     626,333         826,859   
    

 

 

  

Total Foreign Government Obligations (cost $11,087,259)

  

      11,018,170   
    

 

 

  

MORTGAGE-BACKED SECURITY - 0.0% (D)

  

   

GMAC Commercial Mortgage Securities, Inc.
Series 2004-C3, Class A4
4.55%, 12/10/2041

     $  127,686         128,025   
    

 

 

  

Total Mortgage-Backed Security (cost $122,444)

  

      128,025   
    

 

 

  

STRUCTURED NOTES DEBT - 0.2%

     

Diversified Financial Services - 0.2%

     

Bear Stearns Cos. LLC,
Series MTN
5.37%, 03/10/2014 (C)

     649,000         653,855   
    

 

 

  

Total Structured Notes Debt (cost $639,584)

  

      653,855   
    

 

 

  
      Contracts      Value  

PURCHASED OPTIONS - 0.2%

  

Call Option - 0.1%

  

Eurodollar, Mid-Curve 2-Year Future
Exercise Price $ 98.88
Expires 09/13/2013

      350       $   109,375   

Put Option - 0.1%

      

30-Year U.S. Treasury Note Future
Exercise Price $ 142.00
Expires 08/23/2013

      51         336,281   
     

 

 

  

Total Purchased Options (cost $261,604)

  

      445,656   
     

 

 

  
      Notional Amount      Value  

PURCHASED FOREIGN EXCHANGE OPTION - 0.0% (D) (E) (F)

  

   

Call Option - 0.0% (D)

      

OTC- USD vs. JPY
Exercise Price $ 99.00
Expires 09/09/2013
Counterparty: UBS

      $  3,200,000         85,955   
     

 

 

  

Total Purchased Foreign Exchange Option (cost $56,624)

  

      85,955   
     

 

 

  

PURCHASED SWAPTIONS - 0.5% (E) (F)

      

Call Options - 0.0% (D)

      

OTC-If exercised the Series receives
floating 3 month LIBOR,
and pays 2.00%, European Style
Expires 05/10/2014
Counterparty: DUB

      11,100,000         5,437   

OTC-If exercised the Series receives
floating 3 month LIBOR,
and pays 2.00%, European Style
Expires 05/10/2014
Counterparty: DUB

      3,700,000         1,812   

OTC-If exercised the Series receives
floating 3 month LIBOR,
and pays 2.00%, European Style
Expires 05/13/2014
Counterparty: DUB

      1,855,000         896   

Put Options - 0.5%

      

OTC-If exercised the Series receives
floating 3 month LIBOR,
and pays 2.50%, European Style
Expires 06/08/2022
Counterparty: DUB

      EUR  3,200,000         506,584   

OTC-If exercised the Series receives
floating 3 month LIBOR,
and pays 3.00%, European Style
Expires 03/13/2014
Counterparty: DUB

      $  5,600,000         168,654   

OTC-If exercised the Series receives
floating 3 month LIBOR,
and pays 3.25%, European Style
Expires 01/29/2016
Counterparty: DUB

      5,600,000         396,076   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    10

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Notional Amount      Value  

Put Options (continued)

     

OTC-If exercised the Series receives floating 3 month LIBOR,
and pays 3.25%, European Style Expires 02/01/2016
Counterparty: DUB

     $  5,600,000         $  396,640   

OTC-If exercised the Series receives floating 3 month LIBOR,
and pays 3.90%, European Style Expires 09/19/2013
Counterparty: CITI

     3,600,000         1,841   
    

 

 

  

Total Purchased Swaptions (cost $1,095,436)

  

      1,477,940   
    

 

 

  
     Shares      Value  

SHORT-TERM INVESTMENT COMPANY - 0.0% (D)

  

   

BlackRock Provident
TempFund 24 (G)

     30,443         30,443   
    

 

 

  

Total Short-Term Investment Company (cost $30,443)

   

      30,443   
    

 

 

  

SECURITIES LENDING COLLATERAL - 3.0%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (H)

     9,362,335         9,362,335   
    

 

 

  

Total Securities Lending Collateral (cost $9,362,335)

  

      9,362,335   
    

 

 

  

Total Investment Securities (cost $325,629,728) (I)

  

      320,453,113   

Other Assets and Liabilities - Net

        (9,636,975 ) 
    

 

 

  

Net Assets

       $  310,816,138   
    

 

 

  
     Contracts      Value  

WRITTEN OPTIONS - (0.1%)

     

Call Option - (0.0%) (D)

     

Eurodollar, Mid-Curve 2-Year Future Exercise Price $ 99.13
Expires 09/13/2013

     699         $  (56,794 ) 
    

 

 

  

Put Options - (0.1%)

     

30-Year U.S. Treasury Note Future Exercise Price $ 132.00
Expires 08/23/2013

     51         (45,422 ) 

30-Year U.S. Treasury Note Future Exercise Price $ 138.00
Expires 08/23/2013

     51         (177,703 ) 
    

 

 

  

Total Written Options (premiums $(156,256))

  

      (279,919 ) 
    

 

 

  
     Notional Amount      Value  

WRITTEN FOREIGN EXCHANGE OPTIONS - (0.0%) (D) (E) (F)

  

Call Options - (0.0%) (D)

     

OTC-EUR vs. USD Exercise Price EUR 1.32 Expires 07/03/2013 Counterparty: DUB

     EUR  3,905,000         (4,712 ) 
    

 

 

  
       (4,712 ) 
    

 

 

  

Put Options - (0.0%) (D)

     

OTC-AUD vs. NOK Exercise Price AUD 5.20 Expires 09/19/2013 Counterparty: DUB

     AUD  1,700,000         (9,557 ) 

OTC-USD vs. JPY Exercise Price $ 93.00 Expires 09/09/2013 Counterparty: UBS

     $  3,200,000         (21,049 ) 

OTC-USD vs. JPY Exercise Price $ 96.00 Expires 08/06/2013 Counterparty: DUB

     5,000,000         (37,310 ) 
    

 

 

  
       (67,916 ) 
    

 

 

  

Total Written Foreign Exchange Options (cost $(176,481))

  

      (72,628 ) 
    

 

 

  
 
WRITTEN INFLATION CAP OPTIONS: (E) (F)  
Description   Counterparty      Strike
Index		      Exercise
Index		      Expiration
Date		      Notional
Amount		      Premiums
Paid
(Received)		      Value  

Cap-OTC Eurostat Eurozone HICP Ex Tobacco Unrevised
Series NSA

     DUB         2.50         HICP Index         04/26/2022         EUR  1,070,000       $ (74,168 )     $ (32,362 ) 
                   
                   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    11

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

WRITTEN SWAPTIONS: (E) (F)  
Description   Counterparty    

Floating Rate

Index

   Pay/Receive
Floating Rate		   Exercise
Rate		     Expiration
Date		     Notional
Amount		     Premiums
Paid
(Received)		     Value  

Call-OTC 10-Year Interest Rate Swap

     CITI      3-Month USD LIBOR
BBA		   Receive     2.15 %      09/09/2013        $  3,600,000      $   (81,072 )    $   (4,567 ) 

Call-OTC 5-Year Interest Rate Swap

     DUB      3-Month USD LIBOR
BBA		   Receive     1.00        12/06/2013        7,200,000        (10,800 )      (3,438 ) 

Call-OTC 5-Year Interest Rate Swap

     CITI      3-Month USD LIBOR
BBA		   Receive     1.00        10/17/2014        9,600,000        (44,160 )      (4,823 ) 

Call-OTC 5-Year Interest Rate Swap

     DUB      3-Month USD LIBOR
BBA		   Receive     1.25        06/27/2014        4,500,000        (47,362 )      (8,133 ) 

Call-OTC 5-Year Interest Rate Swap

     BCLY      3-Month USD LIBOR
BBA		   Receive     1.25        08/18/2014        8,000,000        (55,200 )      (14,163 ) 

Call-OTC 5-Year Interest Rate Swap

     DUB      3-Month USD LIBOR
BBA		   Receive     1.40        02/13/2015        6,000,000        (47,766 )      (14,290 ) 

Put-OTC 20-Year Interest Rate Swap

     DUB      6-Month EUR
EURIBOR		   Pay     4.50        06/08/2022        EUR  3,200,000        (150,269 )      (203,967 ) 

Put-OTC 5-Year Interest Rate Swap

     DUB      3-Month USD LIBOR
BBA		   Pay     2.00        12/06/2013        $  7,200,000        (25,200 )      (69,782 ) 

Put-OTC 5-Year Interest Rate Swap

     CITI      3-Month USD LIBOR
BBA		   Pay     2.00        10/17/2014        9,600,000        (77,040 )      (287,110 ) 

Put-OTC 5-Year Interest Rate Swap

     DUB      3-Month USD LIBOR
BBA		   Pay     2.25        06/27/2014        4,500,000        (47,363 )      (78,330 ) 

Put-OTC 5-Year Interest Rate Swap

     BCLY      3-Month USD LIBOR
BBA		   Pay     2.25        08/18/2014        8,000,000        (120,000 )      (164,651 ) 

Put-OTC 5-Year Interest Rate Swap

     DUB      3-Month USD LIBOR
BBA		   Pay     2.40        02/13/2016        6,000,000        (85,434 )      (168,270 ) 
             

 

 

    

 

 

  
              $   (791,666 )    $   (1,021,524 ) 
             

 

 

    

 

 

  

 

CENTRALLY CLEARED SWAP AGREEMENTS:   
INTEREST RATE SWAP AGREEMENTS - FIXED RATE RECEIVABLE:  
Floating Rate Index    Fixed Rate        Expiration
Date		        Currency
Code		        Notional
Amount		        Market
Value		      Premiums
Paid
(Received)		      Net Unrealized
Appreciation
(Depreciation)		  

3-Month USD-LIBOR

      2.39 %         06/17/2023           USD           1,200,000         $   33,802       $   0       $   33,802   

 

OVER THE COUNTER SWAP AGREEMENTS: (E) (F)   
INTEREST RATE SWAP AGREEMENTS - FIXED RATE RECEIVABLE:  
Floating Rate Index   Fixed Rate     Expiration
Date		     Counterparty     Currency
Code		     Notional
Amount		     

Market

Value

      Premiums
Paid
(Received)		      Net Unrealized
Appreciation
(Depreciation)		  

3-Month USD-LIBOR

     1.98 %      03/07/2023        DUB        USD        1,200,000       $   (62,673 )     $ 0       $   (62,673 ) 

3-Month USD-LIBOR

     2.06        02/04/2023        DUB        USD        2,200,000         (91,655 )       0         (91,655 ) 

3-Month USD-LIBOR

     2.50        03/17/2024        DUB        USD        2,600,000         (111,545 )       0         (111,545 ) 
            

 

 

     

 

 

     

 

 

  
             $   (265,873 )     $   0       $   (265,873 ) 
            

 

 

     

 

 

     

 

 

  

 

INTEREST RATE SWAP AGREEMENTS - FIXED RATE PAYABLE:  
Floating Rate Index   Fixed Rate     Expiration
Date		     Counterparty     Currency
Code		     Notional
Amount		     Market
Value		     Premiums
Paid
(Received)		     Net Unrealized
Appreciation
(Depreciation)		  

3-Month USD-LIBOR

     2.49 %      07/09/2042        DUB        USD        1,000,000      $ 167,534      $ 0      $ 167,534   

3-Month USD-LIBOR

     2.51        08/10/2042        DUB        USD        1,000,000        165,930        0        165,930   

3-Month USD-LIBOR

     2.72        08/21/2042        DUB        USD        700,000        88,343        0        88,343   
           

 

 

    

 

 

    

 

 

  
            $   421,807      $   0      $   421,807   
           

 

 

    

 

 

    

 

 

  

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    12

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

FUTURES CONTRACTS:                                
Description    Type      Contracts      Expiration Date      Net Unrealized
Appreciation
(Depreciation)		  

10-Year U.S. Treasury Note

      Long         213         09/19/2013       $   (504,162 ) 

2-Year U.S. Treasury Note

      Short         (24 )       09/30/2013         10,250   

5-Year U.S. Treasury Note

      Long         12         09/30/2013         11,324   

90-Day Eurodollar

      Long         63         12/16/2013         9,450   

Long U.S. Treasury Bond

      Short         (66 )       09/19/2013         338,117   

U.K. Long Gilt Bond

      Short         (7 )       09/26/2013         41,126   

Ultra Long U.S. Treasury Bond

      Short         (59 )       09/19/2013         164,295   
           

 

 

  
            $ 70,400   
           

 

 

  

 

FORWARD FOREIGN CURRENCY CONTRACTS: (E) (F)                          
Currency    Counterparty   

Contracts
Bought

(Sold)

      Settlement
Date		      Amount in U.S.
Dollars Bought
(Sold)		      Net Unrealized
Appreciation
(Depreciation)		  

EUR

    BCLY      (4,073,000 )       07/23/2013       $   (5,316,662 )     $ 14,544   

EUR

    DUB      (950,000 )       07/23/2013         (1,237,501 )       817   

EUR

    GSC      (939,000 )       07/23/2013         (1,228,566 )       6,202   

EUR

    UBS      (1,975,000 )       07/23/2013         (2,542,666 )       (28,334 ) 

EUR

    UBS      (905,419 )       07/23/2013         (1,171,703 )       (6,946 ) 

EUR

    UBS      (839,009 )       07/23/2013         (1,084,046 )       (8,153 ) 

EUR

    UBS      (431,737 )       07/23/2013         (572,943 )       10,920   

JPY

    RBS      152,316,160         07/17/2013         1,600,000         (64,145 ) 

JPY

    GSC      (59,717,000 )       08/20/2013         (582,156 )       (20,080 ) 
              

 

 

  
               $   (95,175 ) 
              

 

 

  

 

FORWARD FOREIGN CROSS CURRENCY CONTRACTS: (E) (F)                  
Currency    Counterparty    Contracts
Bought
(Sold)		      Settlement
Date		      Amount in U.S.
Dollars Bought
(Sold)		      Net Unrealized
Appreciation
(Depreciation)		  

NOK

    DUB      4,742,549         07/17/2013       $   823,781       $   (43,497 ) 

AUD

    DUB      (800,000 )       07/17/2013         (823,781 )       93,085   

EUR

    DUB      1,233,345         07/10/2013         1,610,317         (4,868 ) 

CHF

    DUB      (1,520,000 )       07/10/2013         (1,610,317 )       943   

NOK

    DUB      13,891,391         08/20/2013         2,388,520         (105,773 ) 

AUD

    DUB      (2,440,000 )       08/20/2013         (2,388,520 )       165,544   

EUR

    UBS      1,200,000         07/23/2013         1,595,940         (33,814 ) 

CHF

    UBS      (1,477,956 )       07/23/2013         (1,595,940 )       30,903   
              

 

 

  
               $   102,523   
              

 

 

  

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $9,175,738. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(B) All or a portion of this security has been segregated by the custodian with the broker as collateral to cover margin requirements for open futures contracts. Total value of securities segregated as collateral to cover margin requirements for open futures contracts is $200,681.
(C) Floating or variable rate note. Rate is listed as of June 30, 2013.
(D) Percentage rounds to less than 0.1%.
(E) Cash in the amount of $1,000,000 has been segregated by the broker with the custodian as collateral for open options, swaps, swaptions and/or forward foreign currency contracts.
(F) Cash in the amount of $80,000 has been segregated by the custodian with the broker as collateral for open options, swaps, swaptions and/or forward foreign currency contracts.
(G) The investment issuer is affiliated with the sub-adviser of the portfolio.
(H) Rate shown reflects the yield at June 30, 2013.
(I) Aggregate cost for federal income tax purposes is $325,629,728. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $4,886,738 and $10,063,353, respectively. Net unrealized depreciation for tax purposes is $5,176,615.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    13

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

DEFINITIONS:

 

BBA    British Bankers’ Association
BCLY    Barclays Bank PLC
CITI    Citigroup, Inc.
CPI    Consumer Price Index
DUB    Deutsche Bank AG
EURIBOR    Euro InterBank Offered Rate
GSC    Goldman Sachs & Co.
HICP    Harmonized Index of Consumer Prices
LIBOR    London Interbank Offered Rate
MSC    Morgan Stanley
MTN    Medium Term Note
NSA    Not Seasonally Adjusted
OTC    Over the Counter
RBS    Royal Bank of Scotland Group PLC
UBS    UBS AG

CURRENCY ABBREVIATIONS:

 

AUD    Australian Dollar
CHF    Swiss Franc
EUR    Euro
JPY    Japanese Yen
NOK    Norwegian Krone
USD    United States Dollar

VALUATION SUMMARY: (K)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

U.S. Government Obligations

   $ —      $ 297,250,734      $ —      $ 297,250,734   

Foreign Government Obligations

     —        11,018,170        —        11,018,170   

Mortgage-Backed Security

     —        128,025        —        128,025   

Structured Notes Debt

     —        653,855        —        653,855   

Purchased Options

     445,656        —        —        445,656   

Purchased Foreign Exchange Option

     —        85,955        —        85,955   

Purchased Swaptions

     —        1,477,940        —        1,477,940   

Short-Term Investment Company

     30,443        —        —        30,443   

Securities Lending Collateral

     9,362,335        —        —        9,362,335   

Total Investment Securities

   $   9,838,434      $   310,614,679      $             —      $   320,453,113   
                                 

Derivative Financial Instruments

                                

Forward Foreign Cross Currency Contracts (L)

   $ —      $ 290,475      $ —      $ 290,475   

Forward Foreign Currency Contracts (L)

     —        32,483        —        32,483   

Futures Contracts (L)

     574,562        —        —        574,562   

Interest Rate Swap Agreements (L)

     33,802        421,807        —        455,609   

Total Derivative Financial Instruments

   $ 608,364      $ 744,765      $ —      $ 1,353,129   
                                 

Other Assets (M)

                                

Cash on Deposit with Broker

   $ 80,000      $ —      $ —      $ 80,000   

Foreign Currency

     21,463        —        —        21,463   

Total Other Assets

   $   101,463      $   —      $   —      $   101,463   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    14

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY (continued):

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		    

Value at
June 30, 2013

  

LIABILITIES

                                

Derivative Financial Instruments

                                

Forward Foreign Cross Currency Contracts (L)

   $ —      $ (187,952 )    $ —      $ (187,952 ) 

Forward Foreign Currency Contracts (L)

     —        (127,658 )      —        (127,658 ) 

Futures Contracts (L)

     (504,162 )      —        —        (504,162 ) 

Interest Rate Swap Agreements (L)

     —        (265,873 )      —        (265,873 ) 

Written Foreign Exchange Options

     —        (72,628 )      —        (72,628 ) 

Written Inflation Cap Options

     —        (32,362 )      —        (32,362 ) 

Written Options

     (279,919 )      —        —        (279,919 ) 

Written Swaptions

     —        (1,021,524 )      —        (1,021,524 ) 

Total Derivative Financial Instruments

   $ (784,081 )    $ (1,707,997 )    $ —      $ (2,492,078 ) 
                                 

Other Liabilities (M)

                                

Cash Deposit due to Broker

   $ (1,000,000 )    $ —      $ —      $ (1,000,000 ) 

Collateral for Securities on Loan

     —        (9,362,335 )      —        (9,362,335 ) 

Total Other Liabilities

   $ (1,000,000 )    $ (9,362,335 )    $ —      $ (10,362,335 ) 

 

(K) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(L) Derivative financial instruments valued at unrealized appreciation (depreciation) on the instrument.
(M) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    15

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 11.9%

  

U.S. Treasury Bond

     

2.75%, 11/15/2042 (A)

     $  175,000         $  150,883   

2.88%, 05/15/2043 (A)

     78,497,000         69,469,845   

3.13%, 02/15/2043 (A)

     16,385,000         15,294,382   

U.S. Treasury Inflation Indexed Bond

     

0.75%, 02/15/2042

     6,205,955         5,463,177   

U.S. Treasury Inflation Indexed Note

     

0.13%, 01/15/2023

     18,321,569         17,764,758   

U.S. Treasury Note

     

0.38%, 06/30/2015 (B)

     865,000         865,338   

1.38%, 06/30/2018 (B)

     1,525,000         1,524,166   

1.63%, 11/15/2022 (A)

     240,000         224,044   

1.75%, 05/15/2023 (A)

     57,875,000         54,203,526   
    

 

 

  

Total U.S. Government Obligations (cost $174,444,244)

   

      164,960,119   
    

 

 

  

U.S. GOVERNMENT AGENCY OBLIGATIONS - 43.7%

  

   

Fannie Mae

     

Zero Coupon, 10/09/2019

     5,460,000         4,586,400   

1.46%, 08/01/2037 (C)

     11,098         11,839   

2.02%, 01/01/2035 (C)

     50,333         53,189   

2.03%, 08/01/2034 (C)

     23,914         25,114   

2.74%, 08/01/2035 (C)

     123,616         131,374   

2.95%, 03/01/2041 (C)

     948,209         989,795   

3.00%, 02/01/2028 - 06/01/2043

     63,844,471         62,578,115   

3.16%, 03/01/2041 (C)

     1,167,080         1,216,927   

3.27%, 12/01/2040 (C)

     1,908,217         1,992,371   

3.33%, 06/01/2041 (C)

     2,033,319         2,118,552   

3.50%, 07/01/2027

     19,379,008         20,205,959   

3.50%, 09/01/2041 (C)

     1,485,504         1,554,702   

4.00%, 01/01/2025 - 10/01/2042

     23,609,014         24,794,125   

4.50%, 02/01/2025 - 08/01/2042

     21,743,192         23,065,529   

5.00%, 11/01/2032 - 01/01/2042

     37,125,913         40,088,774   

5.50%, 07/01/2014 - 04/01/2041

     3,849,492         4,208,900   

6.00%, 02/01/2034 - 12/01/2038

     5,939,939         6,574,578   

6.00%, 04/01/2035 (C)

     10,441,639         11,652,114   

6.50%, 05/01/2040

     8,153,770         9,033,643   

7.00%, 01/01/2015 - 09/01/2016

     13,508         14,034   

7.00%, 01/01/2016 (C)

     31,948         33,431   

Fannie Mae, IO

     

2.53%, 01/25/2022 (C)

     5,504,730         794,498   

Fannie Mae, TBA

     

2.50%

     13,800,000         13,849,593   

3.00%

     17,400,000         17,789,204   

3.50%

     15,100,000         15,304,422   

4.00%

     16,100,000         16,737,082   

4.50%

     28,100,000         29,746,367   

5.00%

     6,200,000         6,672,266   

5.50%

     8,900,000         9,660,672   

6.00%

     700,000         761,250   

Farmer Mac Guaranteed Notes Trust Series 2007-1

     

5.13%, 04/19/2017 - 144A

     900,000         1,024,519   

Freddie Mac

     

2.07%, 02/01/2037 - 04/01/2037 (C)

     293,343         309,591   

2.15%, 05/01/2037 (C)

     131,168         138,421   

2.55%, 01/01/2038 (C)

     408,315         433,963   
     Principal      Value  

U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)

  

Freddie Mac (continued)

     

2.62%, 01/25/2023

     $  5,310,000         $  5,022,787   

2.62%, 05/01/2037 (C)

     134,474         142,381   

2.64%, 12/01/2034 (C)

     31,386         33,305   

2.64%, 01/25/2023

     3,015,000         2,872,005   

2.68%, 10/25/2022

     2,620,000         2,511,113   

2.86%, 09/01/2035 (C)

     2,073,507         2,194,441   

3.00%, 03/01/2043 - 04/01/2043

     30,755,158         30,024,161   

3.05%, 02/01/2041 (C)

     1,599,658         1,673,314   

4.00%, 10/01/2040

     983,402         1,030,305   

4.50%, 10/01/2041

     13,570,375         14,287,977   

5.00%, 03/01/2038

     11,408,826         12,184,118   

5.50%, 06/15/2015 - 12/01/2016

     1,714,952         1,750,540   

5.63%, 06/13/2016

     9,195,000         10,437,373   

6.00%, 09/01/2013 - 05/01/2031

     1,287,343         1,429,263   

6.02%, 09/01/2037 (C)

     41,394         44,682   

Freddie Mac, IO

     

1.03%, 10/25/2022 (C)

     18,407,921         1,194,011   

1.51%, 11/25/2019 (C)

     58,422,705         4,149,648   

1.65%, 06/25/2022 (C)

     19,686,161         2,046,455   

1.69%, 12/25/2018 (C)

     10,232,866         735,446   

1.91%, 05/25/2019 (C)

     7,980,791         695,263   

Freddie Mac, TBA

     

3.50%

     36,000,000         36,360,000   

4.00%

     11,800,000         12,244,805   

4.50%

     2,200,000         2,316,531   

5.50%

     4,700,000         5,056,172   

FREMF Mortgage Trust

     

3.68%, 08/25/2045 - 144A (C)

     1,645,000         1,575,777   

3.78%, 10/25/2045 - 144A (C)

     1,240,000         1,119,075   

4.16%, 11/25/2044 - 144A (C)

     319,700         295,993   

Ginnie Mae

     

4.00%, 02/20/2041 - 09/15/2042

     18,956,850         19,928,283   

4.50%, 05/20/2041 - 02/15/2042

     33,595,127         36,032,721   

5.00%, 12/15/2038 - 12/15/2040

     3,835,399         4,155,616   

6.50%, 12/20/2031

     33,461         37,959   

Ginnie Mae, IO

     

1.01%, 02/16/2053 (C)

     10,367,382         869,004   

Ginnie Mae, TBA

     

3.00%

     3,230,000         3,193,158   

3.50%

     22,100,000         22,680,123   

4.00%

     3,300,000         3,463,453   

4.50%

     4,900,000         5,199,168   

5.00%

     11,100,000         11,970,656   

5.50%

     4,500,000         4,899,024   

Resolution Funding Corp., Interest STRIPS

  

   

Zero Coupon, 07/15/2018 (A)

     1,200,000         1,100,879   

Zero Coupon, 10/15/2018

     1,200,000         1,099,403   

Tennessee Valley Authority

     

5.25%, 09/15/2039

     7,500,000         8,438,452   

5.98%, 04/01/2036

     440,000         548,248   

U.S. Small Business Administration

     

Series P10A, Class 1

     

4.50%, 02/01/2014

     157,970         160,696   
    

 

 

  

Total U.S. Government Agency Obligations (cost $611,642,715)

   

      605,355,097   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    16

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

FOREIGN GOVERNMENT OBLIGATIONS - 3.4%

  

   

Argentine Republic Government International Bond

     

2.50%, 12/31/2038 (A) (D)

     $  1,350,000         $  438,750   

Brazilian Government International Bond

  

   

7.13%, 01/20/2037

     670,000         797,300   

Italy Buoni Poliennali del Tesoro

     

3.75%, 04/15/2016

     EUR  19,080,000         25,668,205   

5.25%, 08/01/2017

     3,810,000         5,339,890   

Mexico Government International Bond

  

   

5.13%, 01/15/2020

     $  3,605,000         3,961,895   

5.63%, 01/15/2017

     1,693,000         1,881,769   

Poland Government International Bond

  

   

5.13%, 04/21/2021

     1,465,000         1,593,188   

6.38%, 07/15/2019

     490,000         571,492   

Series 2013-NPL1, Class A

     

5.00%, 03/23/2022

     1,200,000         1,290,000   

Republic of South Africa

     

5.50%, 03/09/2020

     1,185,000         1,248,694   

Russian Federation

     

7.50%, 03/31/2030 - Reg S (D)

     2,685,725         3,145,655   

South Africa Government International Bond

  

   

4.67%, 01/17/2024 (A)

     1,060,000         1,012,300   
    

 

 

  

Total Foreign Government Obligations (cost $47,772,885)

  

      46,949,138   
    

 

 

  

MORTGAGE-BACKED SECURITIES - 13.1%

  

   

Adjustable Rate Mortgage Trust

     

Series 2004-2, Class 7A2

     

1.03%, 02/25/2035 (C)

     19,847         19,492   

American Home Mortgage Assets LLC

     

Series 2006-2, Class 2A1

     

0.38%, 09/25/2046 (C)

     1,055,827         714,932   

Banc of America Funding Corp.

     

Series 2005-E, Class 4A1

     

2.69%, 03/20/2035 (C)

     328,611         326,649   

Banc of America Large Loan, Inc.

     

Series 2010-HLTN, Class HLTN

     

2.49%, 11/15/2015 - 144A (C)

     3,588,283         3,591,068   

Series 2010-UB4, Class A4A

     

5.03%, 12/20/2041 - 144A (C)

     3,479,310         3,595,519   

Banc of America Merrill Lynch Commercial Mortgage, Inc.

   

   

Series 2007-1, Class AMFX

     

5.48%, 01/15/2049 (C)

     245,000         256,159   

Series 2007-3, Class A2

     

5.86%, 06/10/2049 (C)

     247,479         247,463   

Series 2007-3, Class A4

     

5.86%, 06/10/2049 (C)

     4,240,000         4,747,732   

Series 2007-3, Class AM

     

5.86%, 06/10/2049 (C)

     1,755,000         1,897,952   

Bear Stearns Adjustable Rate Mortgage Trust

  

   

Series 2005-1, Class 4A1

     

5.25%, 03/25/2035 (C)

     1,694,005         1,606,052   

Bear Stearns Alt-A Trust

     

Series 2004-11, Class 2A2

     

3.08%, 11/25/2034 (C)

     124,331         105,691   

Bear Stearns Commercial Mortgage Securities

  

   

Series 2005-PW10, Class AM

     

5.45%, 12/11/2040 (C)

     610,000         652,192   

Bear Stearns Mortgage Funding Trust

     

Series 2006-AR5, Class 1A2

     

0.40%, 12/25/2046 (C)

     552,384         70,403   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

COMM Mortgage Trust

     

Series 2010-RR1, Class GEB

     

5.54%, 12/11/2049 - 144A (C)

     $  960,000         $  1,038,852   

Commercial Mortgage Pass-Through Certificates

     

Series 2006-C8, Class AM

     

5.35%, 12/10/2046

     2,050,000         2,220,968   

Series 2012-LTRT, Class A2

     

3.40%, 10/05/2030 - 144A

     1,560,000         1,464,902   

Series 2013-GAM, Class A2

     

3.37%, 02/10/2028 - 144A

     2,110,000         2,035,833   

Commercial Mortgage Pass-Through Certificates, IO

     

Series 2012-CR1, Class XA

     

2.43%, 05/15/2045 (C)

     10,008,400         1,277,712   

Series 2013-LC6, Class XA

     

1.96%, 01/10/2046 (C)

     41,273,487         4,237,301   

Commercial Mortgage Trust

     

Series 2005-GG3, Class A3

     

4.57%, 08/10/2042

     2,532,830         2,530,859   

Series 2007-GG11, Class A4

     

5.74%, 12/10/2049

     870,000         974,363   

Countrywide Alternative Loan Trust

     

Series 2005-36, Class 2A1A

     

0.50%, 08/25/2035 (C)

     1,731,683         1,182,514   

Series 2005-50CB, Class 1A1

     

5.50%, 11/25/2035

     3,553,613         3,035,653   

Series 2005-51, Class 3A3A

     

0.51%, 11/20/2035 (C)

     1,520,454         1,130,308   

Series 2006-OA21, Class A1

     

0.38%, 03/20/2047 (C)

     4,237,894         2,980,943   

Series 2007-22, Class 2A16

     

6.50%, 09/25/2037

     10,608,105         8,165,398   

Series 2007-5CB, Class 1A31

     

5.50%, 04/25/2037

     2,565,438         1,903,906   

Countrywide Home Loan Mortgage Pass-Through Trust

     

Series 2003-60, Class 1A1

     

3.15%, 02/25/2034 (C)

     171,126         164,153   

Series 2004-23, Class A

     

2.44%, 11/25/2034 (C)

     103,218         78,111   

Series 2005-3, Class 1A2

     

0.48%, 04/25/2035 (C)

     313,400         265,039   

Credit Suisse First Boston Mortgage Securities Corp.

     

Series 2004-AR5, Class 7A2

     

2.66%, 06/25/2034 (C)

     347,526         341,620   

Series 2005-C3, Class AJ

     

4.77%, 07/15/2037

     380,000         392,876   

Credit Suisse Mortgage Capital Certificates

     

Series 2007-C2, Class A2

     

5.45%, 01/15/2049 (C)

     75,347         75,283   

Series 2007-TF2A, Class A3

     

0.46%, 04/15/2022 - 144A (C)

     1,655,000         1,564,046   

Series 2011-4R, Class 5A1

     

2.69%, 05/27/2036 - 144A (C)

     3,215,477         3,095,044   

DBRR Trust

     

Series 2011-C32, Class A3A

     

5.94%, 06/17/2049 - 144A (C)

     1,500,000         1,681,244   

Series 2012-EZ1, Class A

     

0.95%, 09/25/2045 - 144A

     6,567,045         6,579,943   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    17

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Deutsche Mortgage Securities, Inc.

     

Series 2005-WF1, Class 1A3

     

5.24%, 06/26/2035 - 144A (C)

     $  1,270,000         $  1,296,272   

Extended Stay America Trust

     

Series 2013-ESH5, Class C5

     

2.68%, 12/05/2031 - 144A

     1,210,000         1,177,128   

Series 2013-ESH7, Class A27

     

2.96%, 12/05/2031 - 144A

     1,630,000         1,582,014   

First Horizon Alternative Mortgage Securities

  

   

Series 2006-FA8, Class 1A8

     

0.56%, 02/25/2037 (C)

     385,552         237,194   

FREMF Mortgage Trust

     

Series 2013-K713, Class B

     

3.17%, 04/25/2046 - 144A (C)

     255,000         233,461   

GMAC Mortgage Corp., Loan Trust

     

Series 2003-AR2, Class 1A1

     

3.88%, 12/19/2033 (C)

     34,712         32,576   

Series 2005-AR1, Class 3A

     

3.43%, 03/18/2035 (C)

     111,626         105,764   

Greenpoint Mortgage Funding Trust

     

Series 2006-AR4, Class A1A

     

0.35%, 09/25/2046 (C)

     6         6   

Greenwich Capital Commercial Funding Corp.

  

   

Series 2007-GG11, Class AM

     

5.87%, 12/10/2049 (C)

     1,175,000         1,258,733   

Series 2007-GG9, Class AM

     

5.48%, 03/10/2039

     630,000         662,228   

GS Mortgage Securities Corp. II

     

Series 2005-GG4, Class A4A

     

4.75%, 07/10/2039

     3,175,000         3,334,871   

Series 2012-SHOP, Class C

     

3.63%, 06/05/2031 - 144A

     410,000         405,741   

Series 2013-KING, Class E

     

3.55%, 12/10/2027 - 144A (C)

     3,320,000         2,838,743   

GS Mortgage Securities Corp. II, IO

     

Series 2013-GC10, Class XA

     

1.93%, 02/10/2046 (C)

     40,793,808         4,590,976   

Series 2013-KYO, Class XB1

     

3.25%, 11/08/2029 - 144A (C)

     13,005,000         884,635   

GS Mortgage Securities Trust

     

Series 2006-GG8, Class AJ

     

5.62%, 11/10/2039

     1,740,000         1,634,199   

Series 2006-GG8, Class AM

     

5.59%, 11/10/2039

     710,000         770,288   

GSR Mortgage Loan Trust

     

Series 2005-AR1, Class 2A1

     

2.97%, 01/25/2035 (C)

     2,353,342         2,283,133   

Impac CMB Trust

     

Series 2004-6, Class 1A1

     

0.99%, 10/25/2034 (C)

     62,483         52,838   

IndyMac INDA Mortgage Loan Trust

     

Series 2006-AR2, Class 4A1

     

5.06%, 09/25/2036 (C)

     1,837,072         1,451,270   

Series 2007-AR7, Class 1A1

     

3.21%, 09/25/2037 (C)

     623,056         550,491   

IndyMac Index Mortgage Loan Trust

     

Series 2005-AR14, Class 2A1A

     

0.49%, 07/25/2035 (C)

     1,486,520         1,245,108   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

IndyMac Index Mortgage Loan Trust (continued)

  

   

Series 2007-AR15, Class 2A1

     

4.59%, 08/25/2037 (C)

     $  1,017,195         $  830,991   

JPMorgan Chase Commercial Mortgage Securities Corp.

     

Series 2004-CB8, Class A1A

     

4.16%, 01/12/2039 - 144A

     1,260,827         1,277,717   

Series 2006-CB14, Class AM

     

5.63%, 12/12/2044 (C)

     2,000,000         2,165,466   

Series 2006-LDP9, Class AM

     

5.37%, 05/15/2047

     590,000         622,523   

Series 2007-CB18, Class A3

     

5.45%, 06/12/2047

     1,221,740         1,253,264   

Series 2007-LD11, Class ASB

     

6.00%, 06/15/2049 (C)

     1,473,440         1,588,953   

Series 2013-C10, Class C

     

4.30%, 12/15/2047 (C)

     420,000         389,830   

JPMorgan Chase Commercial Mortgage Securities Corp., IO

     

Series 2012-CBX, Class XA

     

2.21%, 06/15/2045 (C)

     9,799,007         1,038,842   

Series 2013-LC11, Class XA

     

1.73%, 04/15/2046 (C)

     10,724,738         1,096,529   

Series 2013-LC11, Class XB

     

0.73%, 04/15/2046 (C)

     1,908,000         88,838   

JPMorgan Mortgage Trust

     

Series 2004-A1, Class 1A1

     

4.74%, 02/25/2034 (C)

     206,058         201,793   

Series 2006-A2, Class 5A1

     

2.89%, 11/25/2033 (C)

     159,928         157,518   

Series 2006-S3, Class 1A12

     

6.50%, 08/25/2036

     773,529         691,039   

LB-UBS Commercial Mortgage Trust

     

Series 2005-C2, Class AJ

     

5.21%, 04/15/2030 (C)

     1,280,000         1,343,828   

Series 2007-C2, Class A3

     

5.43%, 02/15/2040

     9,658,000         10,593,619   

Series 2007-C7, Class A3

     

5.87%, 09/15/2045 (C)

     4,772,018         5,318,863   

MASTR Adjustable Rate Mortgages Trust

     

Series 2007-R5, Class A1

     

2.67%, 11/25/2035 - 144A (C)

     803,777         525,801   

Merrill Lynch Mortgage Investors Trust

     

Series 2003-F, Class A1

     

0.83%, 10/25/2028 (C)

     80,169         78,539   

Series 2004-A1, Class 2A1

     

2.56%, 02/25/2034 (C)

     345,427         340,010   

Series 2004-A3, Class 4A3

     

5.07%, 05/25/2034 (C)

     223,074         219,321   

Series 2005-A3, Class A1

     

0.46%, 04/25/2035 (C)

     73,314         69,689   

Series 2005-A4, Class 2A2

     

2.67%, 07/25/2035 (C)

     352,798         309,775   

Merrill Lynch Mortgage Trust

     

Series 2005-CKI1, Class AJ

     

5.46%, 11/12/2037 (C)

     1,760,000         1,815,018   

Morgan Stanley Capital I Trust

     

Series 1998-WF2, Class G

     

6.34%, 07/15/2030 - 144A (C)

     695,185         709,965   

Series 2007-HQ12, Class AM

     

5.76%, 04/12/2049 (C)

     2,855,000         3,038,853   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    18

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Morgan Stanley Capital I Trust (continued)

  

   

Series 2007-IQ13, Class AM

     

5.41%, 03/15/2044

     $  1,090,000         $  1,167,785   

Series 2007-IQ15, Class A2

     

6.05%, 06/11/2049 (C)

     1,411,484         1,434,473   

Series 2007-IQ15, Class AM

     

6.09%, 06/11/2049 (C)

     1,980,000         2,131,927   

Morgan Stanley Capital I Trust, IO

     

Series 2012-C4, Class XA

     

2.87%, 03/15/2045 - 144A (C)

     17,968,566         2,382,326   

Morgan Stanley Mortgage Loan Trust

     

Series 2004-8AR, Class 4A2

     

2.64%, 10/25/2034 (C)

     330,632         329,903   

Series 2006-3AR, Class 2A3

     

2.80%, 03/25/2036 (C)

     684,170         501,307   

Morgan Stanley Re-REMIC Trust

     

Series 2011-IO, Class A

     

2.50%, 03/23/2051 - 144A

     1,782,312         1,798,459   

Series 2012-IO, Class AXB2

     

1.00%, 03/27/2051 - 144A

     1,120,000         1,087,576   

Series 2012-XA, Class A

     

2.00%, 07/27/2049 - 144A

     2,352,193         2,381,595   

Morgan Stanley Re-REMIC Trust, IO

     

Series 2012-C4, Class XA

     

1.00%, 03/27/2051 - 144A

     1,090,284         1,089,303   

Motel 6 Trust

     

Series 2012-MTL6, Class B

     

2.74%, 10/05/2025 - 144A

     3,735,000         3,656,248   

NACC Reperforming Loan REMIC Trust

     

Series 2004-R2, Class A1

     

6.50%, 10/25/2034 - 144A (C)

     132,251         135,508   

Prime Mortgage Trust

     

Series 2006-DR1, Class 2A2

     

6.00%, 05/25/2035 - 144A

     716,758         734,847   

Queens Center Mortgage Trust

     

Series 2013-QCA, Class D

     

3.59%, 01/11/2037 - 144A (C)

     4,200,000         3,497,836   

RALI Trust

     

Series 2007-QO1, Class A1

     

0.34%, 02/25/2047 (C)

     729,920         546,336   

Series 2007-QO4, Class A1A

     

0.38%, 05/25/2047 (C)

     1,426,956         1,118,681   

RBSCF Trust
Series 2010-RR3, Class WBTA
6.12%, 04/16/2017 - 144A (C)

     7,423,133         8,196,267   

RBSGC Mortgage Pass-Through Certificates
Series 2007-B, Class 1A4
0.64%, 01/25/2037 (C)

     641,920         433,925   

S2 Hospitality LLC
Series 2012-LV1, Class A
4.50%, 04/15/2025 - 144A

     1,044,890         1,043,663   

STRIPs, Ltd.
Series 2012-1A, Class A
1.50%, 12/25/2044 - 144A

     3,557,257         3,518,127   

Structured Adjustable Rate Mortgage Loan Trust

     

Series 2004-20, Class 3A1

     

2.61%, 01/25/2035 (C)

     608,393         556,657   

Series 2005-15, Class 1A1

     

2.52%, 07/25/2035 (C)

     866,139         709,261   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Structured Adjustable Rate Mortgage Loan Trust (continued)

  

Series 2007-3, Class 3A1

     

5.16%, 04/25/2047 (C)

     $  2,583,247         $  1,951,070   

Structured Asset Mortgage Investments, Inc.
Series 2003-AR4, Class A1
0.89%, 01/19/2034 (C)

     87,431         83,557   

Voyager BRSTN Delaware Trust, IO
Series 2009-1, Class UAU7
0.45%, 12/26/2036 - 144A (C)

     537,021         437,494   

Wachovia Bank Commercial Mortgage Trust
Series 2007-C33, Class AJ
6.12%, 02/15/2051 (C)

     2,125,000         2,010,847   

WaMu Alternative Mortgage Pass-Through Certificates
Series 2006-AR3, Class A1A
1.14%, 05/25/2046 (C)

     1,997,390         1,281,921   

WaMu Mortgage Pass-Through Certificates

     

Series 2005-AR8, Class 2A1A

     

0.48%, 07/25/2045 (C)

     90,559         83,719   

Series 2006-AR14, Class 1A3

     

2.38%, 11/25/2036 (C)

     1,584,355         1,298,243   

Series 2007-OA6, Class 1A1B

     

0.98%, 07/25/2047 (C)

     1,933,548         533,400   

Wells Fargo Re-REMIC Trust
Series 2012-IO, Class A
1.75%, 08/20/2021 - 144A

     2,174,316         2,175,621   

WF-RBS Commercial Mortgage Trust
Series 2013-C11, Class A4
3.04%, 03/15/2045

     2,430,000         2,280,416   

WF-RBS Commercial Mortgage Trust, IO
Series 2012-C10, Class XA
1.99%, 12/15/2045 - 144A (C)

     15,334,629         1,746,936   
    

 

 

  

Total Mortgage-Backed Securities (cost $183,137,874)

        180,977,662   
    

 

 

  

ASSET-BACKED SECURITIES - 14.2%

     

AmeriCredit Automobile Receivables Trust

  

   

Series 2011-5, Class C

     

3.44%, 10/08/2017

     1,650,000         1,709,032   

Series 2012-2, Class C

     

2.64%, 10/10/2017

     1,400,000         1,421,468   

Series 2012-3, Class C

     

2.42%, 05/08/2018

     1,350,000         1,366,583   

Series 2012-4, Class B

     

1.31%, 11/08/2017

     785,000         783,492   

Series 2012-4, Class C

     

1.93%, 08/08/2018

     1,235,000         1,221,222   

Series 2012-5, Class C

     

1.69%, 11/08/2018

     1,475,000         1,451,341   

Amortizing Residential Collateral Trust
Series 2002-BC5, Class M1
1.23%, 07/25/2032 (C)

     263,707         231,357   

AUTO Asset-Backed Securities Srl
Series 2012-2, Class A
2.80%, 04/27/2025 - Reg S

     EUR  2,021,773         2,656,095   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    19

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

Capital Auto Receivables Asset Trust
Series 2013-1, Class C
1.74%, 10/22/2018

     $  2,130,000         $  2,089,879   

Chase Funding Trust
Series 2003-4, Class 1A5
5.42%, 05/25/2033 (C)

     1,020,740         1,073,077   

Chesapeake Funding LLC

     

Series 2012-1A, Class B

     

1.79%, 11/07/2023 - 144A (C)

     1,235,000         1,240,655   

Series 2012-1A, Class C

     

2.19%, 11/07/2023 - 144A (C)

     795,000         798,627   

Conseco Finance Securitizations Corp.

     

Series 2002-1, Class A

     

6.68%, 12/01/2033 (C)

     494,399         508,006   

Series 2002-2, Class A2

     

6.03%, 03/01/2033 (C)

     880,465         908,114   

Countrywide Home Equity Loan Trust
Series 2006-RES, Class 4Q1B
0.49%, 12/15/2033 - 144A (C)

     270,887         204,661   

Credit Acceptance Auto Loan Trust

     

Series 2012-2A, Class A

     

1.52%, 03/16/2020 - 144A

     1,780,000         1,783,635   

Series 2013-1A, Class A

     

1.21%, 10/15/2020 - 144A

     1,060,000         1,051,834   

DT Auto Owner Trust

     

Series 2011-3A, Class C

     

4.03%, 02/15/2017 - 144A

     1,010,000         1,017,812   

Series 2012-1A, Class B

     

2.26%, 10/16/2017 - 144A

     1,360,000         1,363,959   

Series 2012-1A, Class C

     

3.38%, 10/16/2017 - 144A

     810,000         817,153   

Series 2012-1A, Class D

     

4.94%, 07/16/2018 - 144A

     1,750,000         1,793,162   

Series 2012-2A, Class B

     

1.85%, 04/17/2017 - 144A

     260,000         260,384   

Ford Credit Auto Owner Trust
Series 2013-B, Class D
1.82%, 11/15/2019

     1,210,000         1,182,298   

Ford Credit Floorplan Master Owner Trust

  

   

Series 2010-5, Class C

     

2.07%, 09/15/2015 - 144A

     1,260,000         1,263,427   

Series 2010-5, Class D

     

2.41%, 09/15/2015 - 144A

     670,000         672,663   

Series 2011-2, Class C

     

2.37%, 09/15/2015

     1,600,000         1,605,752   

Series 2011-2, Class D

     

2.86%, 09/15/2015

     1,110,000         1,115,892   

Series 2012-1, Class C

     

1.69%, 01/15/2016 (C)

     1,955,000         1,965,837   

Series 2012-1, Class D

     

2.29%, 01/15/2016 (C)

     1,830,000         1,845,185   

Series 2012-2, Class C

     

2.86%, 01/15/2019

     455,000         472,076   

Series 2012-2, Class D

     

3.50%, 01/15/2019

     815,000         859,165   

Series 2012-4, Class C

     

1.39%, 09/15/2016

     910,000         913,165   

Series 2012-4, Class D

     

2.09%, 09/15/2016

     1,595,000         1,607,436   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

HLSS Servicer Advance Receivables Backed Notes

     

Series 2012-T2, Class A1

     

1.34%, 10/15/2043 - 144A

     $  670,000         $  669,732   

Series 2012-T2, Class A2

     

1.99%, 10/15/2045 - 144A

     1,345,000         1,346,211   

Series 2013-T1, Class A2

     

1.50%, 01/16/2046 - 144A

     3,550,000         3,503,495   

Series 2013-T2, Class B2

     

1.50%, 05/16/2044 - 144A

     440,000         439,032   

Series 2013-T3, Class A3

     

1.79%, 05/15/2046 - 144A

     6,720,000         6,636,000   

Hyundai Auto Receivables Trust
Series 2012-A, Class D
2.61%, 05/15/2018

     2,235,000         2,273,522   

JG Wentworth XX LLC
Series 2010-1A, Class A
5.56%, 07/15/2059 - 144A

     7,509,319         8,594,356   

JG Wentworth XXI LLC
Series 2010-2A, Class A
4.07%, 01/15/2048 - 144A

     577,153         609,813   

JG Wentworth XXII LLC
Series 2010-3A, Class A
3.82%, 12/15/2048 - 144A

     1,929,987         2,019,511   

Lehman XS Trust
Series 2007-2N, Class 3A1
0.34%, 02/25/2037 (C) (E)

     5         5   

Nationstar Agency Advance Funding Trust
Series T2A, Class AT2
1.89%, 02/18/2048 - 144A

     3,680,000         3,553,040   

Nationstar Mortgage Advance Receivable Trust

  

   

Series 2013-T1A, Class A1

     

1.08%, 06/20/2044 - 144A

     3,770,000         3,765,954   

Series 2013-T2A, Class A2

     

1.68%, 06/20/2046 - 144A

     5,365,000         5,359,254   

Nelnet Student Loan Trust

     

Series 2006-1, Class A5

     

0.38%, 08/23/2027 (C)

     2,230,000         2,158,138   

Series 2008-3, Class A4

     

1.92%, 11/25/2024 (C)

     2,500,000         2,615,467   

PFS Financing Corp.
Series 2012-AA, Class A
1.39%, 02/15/2016 - 144A (C)

     1,970,000         1,977,354   

RAAC Series Series
2007-RP4, Class A
0.54%, 06/25/2037 - 144A (C)

     1,164,321         889,484   

Renaissance Home Equity Loan Trust
Series 2007-2, Class AF6
5.88%, 06/25/2037 (C)

     1,471,862         824,533   

Santander Drive Auto Receivables Trust

     

Series 2011-S1A, Class B

     

1.48%, 07/15/2013 - 144A

     756,933         759,410   

Series 2012-1, Class B

     

2.72%, 05/16/2016

     1,000,000         1,018,029   

Series 2012-1, Class C

     

3.78%, 11/15/2017

     1,345,000         1,396,207   

Series 2012-2, Class C

     

3.20%, 02/15/2018

     4,455,000         4,587,910   

Series 2012-3, Class B

     

1.94%, 12/15/2016

     3,285,000         3,313,928   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    20

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

Santander Drive Auto Receivables Trust (continued)

  

   

Series 2012-3, Class C

     

3.01%, 04/16/2018

     $  4,475,000         $  4,595,821   

Series 2012-4, Class C

     

2.94%, 12/15/2017

     1,400,000         1,422,569   

Series 2012-5, Class B

     

1.56%, 08/15/2018

     750,000         755,969   

Series 2012-5, Class C

     

2.70%, 08/15/2018

     355,000         357,234   

Series 2012-6, Class B

     

1.33%, 05/15/2017

     1,555,000         1,561,694   

Series 2012-6, Class C

     

1.94%, 03/15/2018

     1,070,000         1,062,156   

Series 2012-AA, Class B

     

1.21%, 10/16/2017 - 144A

     3,780,000         3,776,874   

Series 2012-AA, Class C

     

1.78%, 11/15/2018 - 144A

     7,060,000         6,919,873   

Series 2013-2, Class B

     

1.33%, 03/15/2018

     3,740,000         3,726,820   

Series 2013-2, Class C

     

1.95%, 03/15/2019

     6,130,000         5,990,898   

Series 2013-3, Class B

     

1.19%, 05/15/2018

     3,320,000         3,290,691   

Scholar Funding Trust

     

Series 2011-A, Class A

     

1.18%, 10/28/2043 - 144A (C)

     1,569,454         1,547,262   

Series 2013-A, Class A

     

0.84%, 01/30/2045 - 144A (C)

     6,809,468         6,760,050   

Securitized Asset Backed Receivables LLC
Series 2007-BR3, Class A2B
0.41%, 04/25/2037 (C)

     2,443,781         1,345,353   

SLC Private Student Loan Trust
Series 2006-A, Class A5
0.45%, 07/15/2036 (C)

     3,935,000         3,802,977   

SLC Student Loan Trust
Series 2008-1, Class A4A
1.87%, 12/15/2032 (C)

     400,000         409,308   

SLM Student Loan Trust

     

Series 2004-B, Class A2

     

0.47%, 06/15/2021 (C)

     3,118,708         3,057,147   

Series 2008-5, Class A4

     

1.98%, 07/25/2023 (C)

     2,445,000         2,526,000   

Series 2011-B, Class A2

     

3.74%, 02/15/2029 - 144A

     595,000         626,982   

Series 2011-C, Class A2B

     

4.54%, 10/17/2044 - 144A

     1,930,000         2,090,999   

Series 2012-A, Class A1

     

1.59%, 08/15/2025 - 144A (C)

     1,104,820         1,116,590   

Series 2012-A, Class A2

     

3.83%, 01/17/2045 - 144A

     3,340,000         3,550,610   

Series 2012-B, Class A2

     

3.48%, 10/15/2030 - 144A

     2,555,000         2,669,801   

Series 2012-C, Class A1

     

1.29%, 08/15/2023 - 144A (C)

     2,279,348         2,291,782   

Series 2012-C, Class A2

     

3.31%, 10/15/2046 - 144A

     4,850,000         5,018,499   

Series 2012-D, Class A2

     

2.95%, 02/15/2046 - 144A

     5,720,000         5,869,103   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

SLM Student Loan Trust (continued)

  

   

Series 2012-E, Class A1

     

0.94%, 10/16/2023 - 144A (C)

     $  2,050,454         $  2,051,978   

Series 2013-A, Class A2A

     

1.77%, 05/17/2027 - 144A

     1,535,000         1,452,623   

SpringCastle America Funding LLC
Series 2013-1A, Class A
3.75%, 04/03/2021 - 144A

     7,800,040         7,803,940   

Structured Asset Securities Corp.

     

Series 2003-AL2, Class A

     

3.36%, 01/25/2031 - 144A

     2,232,766         2,189,140   

Series 2007-TC1, Class A

     

0.49%, 04/25/2031 - 144A (C)

     1,346,022         1,294,966   

World Financial Network Credit Card Master Trust

     

Series 2012-C, Class A

     

2.23%, 08/15/2022

     4,000,000         3,978,348   

Series 2012-D, Class A

     

2.15%, 04/17/2023

     4,780,000         4,636,524   
    

 

 

  

Total Asset-Backed Securities (cost $197,811,191)

  

      197,115,410   
    

 

 

  

MUNICIPAL GOVERNMENT OBLIGATIONS - 0.3%

  

   

New York City Water & Sewer System

     

5.38%, 06/15/2043

     1,670,000         1,802,347   

5.50%, 06/15/2043

     2,000,000         2,182,480   
    

 

 

  

Total Municipal Government Obligations (cost $3,618,052)

   

      3,984,827   
    

 

 

  

PREFERRED CORPORATE DEBT SECURITIES - 0.3%

  

   

Capital Markets - 0.0% (F)

     

State Street Capital Trust IV
1.27%, 06/15/2037 (C)

     290,000         235,123   

Commercial Banks - 0.1%

     

Fifth Third Capital Trust IV
6.50%, 04/15/2037 (A) (C)

     2,125,000         2,117,031   

Diversified Financial Services - 0.1%

     

Lehman Brothers Holdings Capital Trust VII,
Series MTN
5.86%, 08/01/2013 (E) (G) (H) (I)

     1,945,000         389   

ZFS Finance USA Trust V
6.50%, 05/09/2037 - 144A (C)

     1,067,000         1,136,355   

Insurance - 0.1%

     

MetLife Capital Trust IV
7.88%, 12/15/2037 - 144A

     1,240,000         1,476,725   
    

 

 

  

Total Preferred Corporate Debt Securities (cost $6,713,229)

   

      4,965,623   
    

 

 

  

CORPORATE DEBT SECURITIES - 26.9%

  

   

Auto Components - 0.1%

     

BorgWarner, Inc.
4.63%, 09/15/2020

     1,185,000         1,244,627   

Automobiles - 0.0% (F)

     

Jaguar Land Rover Automotive PLC
8.25%, 03/15/2020 - Reg S

     GBP   110,000         181,525   

Building Products - 0.0% (F)

     

Eco-Bat Finance PLC
7.75%, 02/15/2017 - Reg S (A)

     EUR   110,000         144,613   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    21

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Capital Markets - 0.7%

     

Goldman Sachs Group, Inc.

     

3.63%, 01/22/2023 (A)

     $  3,470,000         $  3,320,002   

5.75%, 01/24/2022

     1,181,000         1,302,658   

Morgan Stanley

     

2.13%, 04/25/2018

     3,385,000         3,239,550   

3.80%, 04/29/2016

     1,045,000         1,086,864   

Chemicals - 0.8%

     

CF Industries, Inc.
7.13%, 05/01/2020

     4,340,000         5,192,228   

LyondellBasell Industries NV
5.00%, 04/15/2019

     5,402,000         5,877,895   

Rain CII Carbon LLC / CII Carbon Corp.
8.50%, 01/15/2021 - Reg S (A)

     EUR   130,000         169,214   

Commercial Banks - 1.4%

     

ABN Amro Bank NV,
Series EMTN
6.38%, 04/27/2021 - Reg S

     380,000         544,585   

Caixa Economica Federal

     

2.38%, 11/06/2017 - 144A

     $  1,650,000         1,522,125   

3.50%, 11/07/2022 - 144A

     875,000         735,000   

Canadian Imperial Bank of Commerce
2.60%, 07/02/2015 - 144A

     2,420,000         2,510,750   

Commerzbank AG,
Series EMTN
6.38%, 03/22/2019 (A)

     EUR  1,000,000         1,347,207   

Discover Bank
8.70%, 11/18/2019

     $  354,000         452,225   

Eksportfinans ASA
5.50%, 05/25/2016 (A)

     1,770,000         1,843,898   

Glitnir Banki HF
6.33%, 07/28/2011 - 144A (G)

     290,000         83,375   

HSBC Bank Brasil SA - Banco Multiplo
4.00%, 05/11/2016 - 144A

     5,850,000         5,996,250   

KFW
1.38%, 07/15/2013

     3,000,000         3,001,080   

Landsbanki Islands HF
6.10%, 08/25/2011 - 144A (G) (I)

     320,000         24,800   

Russian Agricultural Bank OJSC Via RSHB Capital SA
6.30%, 05/15/2017 - 144A

     170,000         180,404   

Sberbank of Russia Via SB Capital SA
6.13%, 02/07/2022 - Reg S

     1,370,000         1,429,869   

Commercial Services & Supplies - 0.3%

  

   

EC Finance PLC
9.75%, 08/01/2017 - Reg S

     EUR  124,000         173,946   

GCL Holdings SCA
9.38%, 04/15/2018 - Reg S

     110,000         152,488   

Odeon & UCI Finco PLC,
Series EMTN
9.00%, 08/01/2018 - Reg S

     GBP  105,000         168,084   

Servus Luxembourg Holding SCA,
Series EMTN
7.75%, 06/15/2018 - Reg S

     EUR  100,000         127,887   

United Rentals North America, Inc.
7.63%, 04/15/2022

     $  3,320,000         3,593,900   
     Principal      Value  

Commercial Services & Supplies (continued)

  

   

Verisure Holding AB,
Series EMTN
8.75%, 12/01/2018 - Reg S (A)

     EUR  110,000         $  148,193   

Communications Equipment - 0.1%

     

CC Holdings GS V LLC / Crown Castle GS III Corp
3.85%, 04/15/2023 (A)

     $  1,550,000         1,461,582   

Construction Materials - 0.0% (F)

     

Buzzi Unicem SpA
6.25%, 09/28/2018 - Reg S

     EUR  230,000         316,085   

Consumer Finance - 0.1%

     

Discover Financial Services
3.85%, 11/21/2022

     $  1,136,000         1,066,803   

SLM Corp, Series MTN
4.63%, 09/25/2017

     369,000         363,465   

Unique Pub Finance Co. PLC
Series A4
5.66%, 06/30/2027

     GBP  97,000         136,514   

Containers & Packaging - 0.2%

     

Ardagh Glass Finance PLC
8.75%, 02/01/2020 - Reg S

     EUR   62,000         82,316   

Ardagh Packaging Finance PLC
9.25%, 10/15/2020 - Reg S

     100,000         136,348   

Rock Tenn Co.

     

3.50%, 03/01/2020

     $  666,000         651,696   

4.00%, 03/01/2023

     1,690,000         1,628,379   

Distributors - 0.2%

     

Glencore Funding LLC
2.50%, 01/15/2019 - 144A

     2,755,000         2,492,473   

Diversified Financial Services - 4.5%

     

Bank of America Corp.

     

2.00%, 01/11/2018

     7,435,000         7,201,645   

3.88%, 03/22/2017 (A)

     1,563,000         1,636,981   

5.20%, 06/01/2023 (C) (H)

     1,537,000         1,444,780   

5.70%, 01/24/2022

     3,660,000         4,062,765   

6.50%, 08/01/2016

     985,000         1,110,534   

Bank of America Corp., Series GMTN 5.65%, 05/01/2018

     10,735,000         11,926,392   

Bank of America Corp., Series MTN
3.30%, 01/11/2023

     1,630,000         1,540,590   

Citigroup, Inc.

     

3.38%, 03/01/2023 (A)

     1,450,000         1,387,090   

4.45%, 01/10/2017

     900,000         963,711   

4.59%, 12/15/2015

     11,710,000         12,505,507   

5.35%, 05/15/2023 (C) (H)

     890,000         834,375   

Ford Motor Credit Co., LLC

     

5.00%, 05/15/2018

     8,319,000         8,871,581   

6.63%, 08/15/2017

     1,740,000         1,969,320   

JPMorgan Chase & Co.

     

3.20%, 01/25/2023

     1,615,000         1,533,131   

3.25%, 09/23/2022

     1,240,000         1,177,258   

5.15%, 05/01/2023 (C) (H)

     1,097,000         1,044,893   

Kaupthing Bank Hf Series 6A, Class A1A 7.13%, 05/19/2016 - 144A (E) (G)

     200,000         0   

Novus USA Trust
1.57%, 02/28/2014 - 144A (C)

     2,930,000         2,925,605   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    22

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Diversified Telecommunication Services - 0.9%

  

   

Intelsat Jackson Holdings SA
7.25%, 04/01/2019

     $  1,902,000         $  1,989,967   

Level 3 Financing, Inc.
8.13%, 07/01/2019

     2,053,000         2,155,650   

Lynx I Corp.
6.00%, 04/15/2021 - Reg S

     GBP  110,000         165,889   

Sprint Capital Corp.
6.88%, 11/15/2028

     $  822,000         789,120   

Telenet Finance III Luxembourg SCA 6.63%, 02/15/2021 - Reg S

     EUR   100,000         132,931   

Telenet Finance V Luxembourg SCA 6.75%, 08/15/2024 - Reg S

     100,000         131,844   

Verizon Communications, Inc.
3.85%, 11/01/2042 (A)

     $  5,234,000         4,342,870   

Virgin Media Secured Finance PLC 6.50%, 01/15/2018

     2,160,000         2,219,400   

Electric Utilities - 2.3%

     

Cleveland Electric Illuminating Co.

     

5.95%, 12/15/2036

     468,000         505,447   

8.88%, 11/15/2018

     459,000         596,687   

Duke Energy Carolinas LLC
4.25%, 12/15/2041

     1,560,000         1,453,439   

Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc.
10.00%, 12/01/2020 (A)

     6,135,000         6,717,825   

Florida Power Corp.
6.40%, 06/15/2038

     1,000,000         1,225,033   

Georgia Power Co.
3.00%, 04/15/2016

     3,370,000         3,526,607   

Hydro-Quebec

     

8.05%, 07/07/2024

     8,200,000         11,277,714   

8.40%, 01/15/2022

     3,065,000         4,165,084   

Jersey Central Power & Light Co.
7.35%, 02/01/2019

     1,025,000         1,237,621   

Trans-Allegheny Interstate Line Co. 4.00%, 01/15/2015 - 144A

     1,050,000         1,090,580   

Electronic Equipment & Instruments - 0.0% (F)

  

   

Trionista Holdco GmbH
5.00%, 04/30/2020 - Reg S

     EUR  100,000         128,864   

Trionista TopCo GmbH
6.88%, 04/30/2021 - Reg S

     100,000         128,863   

Energy Equipment & Services - 1.3%

     

DCP Midstream LLC
5.85%, 05/21/2043 - 144A (A) (C)

     $  377,000         361,920   

Enterprise Products Operating LLC 4.45%, 02/15/2043 (A)

     1,035,000         918,728   

Noble Holding International, Ltd.
5.25%, 03/15/2042 (A)

     1,705,000         1,527,143   

Transocean, Inc.

     

2.50%, 10/15/2017 (A)

     3,595,000         3,552,727   

5.05%, 12/15/2016

     2,575,000         2,800,119   

6.00%, 03/15/2018

     5,826,000         6,528,855   

6.50%, 11/15/2020

     2,475,000         2,785,882   

Food & Staples Retailing - 0.2%

     

Bakkavor Finance 2 PLC

     

8.25%, 02/15/2018 - Reg S

       100,000         151,715   

8.75%, 06/15/2020 - Reg S

     100,000         152,855   
     Principal      Value  

Food & Staples Retailing (continued)

  

   

House of Fraser Funding PLC
8.88%, 08/15/2018 - Reg S

     GBP  100,000         $  157,760   

Wal-Mart Stores, Inc.
4.00%, 04/11/2043

     $  1,718,000         1,565,416   

Food Products - 0.1%

     

Mondelez International, Inc.
6.50%, 08/11/2017

     1,120,000         1,302,168   

Health Care Equipment & Supplies - 0.4%

  

   

Boston Scientific Corp.
6.25%, 11/15/2015

     5,230,000         5,788,323   

IDH Finance PLC, Series EMTN
6.00%, 12/01/2018 - Reg S

     GBP   110,000         167,305   

Health Care Providers & Services - 0.8%

  

   

Care UK Health & Social Care PLC 9.75%, 08/01/2017 - Reg S

     110,000         169,814   

Coventry Health Care, Inc.
5.45%, 06/15/2021

     $  1,667,000         1,856,805   

HCA, Inc.
7.25%, 09/15/2020

     4,395,000         4,719,131   

Priory Group NO 3 PLC
7.00%, 02/15/2018 - Reg S

     GBP   130,000         199,701   

Tenet Healthcare Corp.
6.25%, 11/01/2018

     $  2,010,000         2,115,525   

UnitedHealth Group, Inc.
3.38%, 11/15/2021

     665,000         662,905   

WellPoint, Inc.
1.88%, 01/15/2018

     1,975,000         1,933,809   

Hotels, Restaurants & Leisure - 0.0% (F)

  

   

Cirsa Funding Luxembourg SA
8.75%, 05/15/2018 - Reg S (A)

     EUR  140,000         183,324   

Enterprise Inns PLC
6.50%, 12/06/2018

     GBP   136,000         202,613   

Gala Group Finance PLC
8.88%, 09/01/2018 - Reg S

     110,000         176,674   

Household Durables - 0.0% (F)

     

DFS Furniture Holdings PLC
7.63%, 08/15/2018 - Reg S

     103,000         161,749   

Household Products - 0.4%

     

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC / Reynolds Group Issuer Lu

     

6.88%, 02/15/2021

     $  2,320,000         2,436,000   

7.88%, 08/15/2019

     2,595,000         2,828,550   

Insurance - 2.1%

     

Allianz Finance II BV, Series EMTN 5.75%, 07/08/2041 (C)

     EUR  2,400,000         3,450,762   

American International Group, Inc.

     

3.80%, 03/22/2017

     $  3,465,000         3,632,415   

4.88%, 06/01/2022 (A)

     3,350,000         3,570,845   

8.18%, 05/15/2058 (C)

     1,095,000         1,335,900   

American International Group, Inc.,
Series GMTN
5.45%, 05/18/2017

     1,555,000         1,714,133   

AXA SA,Series EMTN
5.25%, 04/16/2040 (C)

     EUR  1,800,000         2,388,352   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    23

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Insurance (continued)

     

Manulife Financial Corp.
3.40%, 09/17/2015

     $  680,000         $  710,453   

Muenchener Rueckversicherungs AG, Series EMTN
6.00%, 05/26/2041 - Reg S (C)

     EUR  1,400,000         2,070,080   

Prudential Financial, Inc.

     

5.20%, 03/15/2044 (C)

     $  95,000         89,775   

5.88%, 09/15/2042 (A) (C)

     962,000         964,405   

Prudential Financial, Inc.,
Series MTN

     

4.50%, 11/15/2020 (A)

     1,000,000         1,065,861   

4.75%, 09/17/2015

     1,686,000         1,814,249   

5.38%, 06/21/2020

     1,500,000         1,681,562   

7.38%, 06/15/2019

     1,630,000         1,991,788   

XL Group PLC
6.50%, 04/15/2017 (A) (C) (H)

     3,100,000         3,022,500   

Internet Software & Services - 0.0% (F)

     

Cerved Technologies SpA,
Series EMTN

     

6.38%, 01/15/2020 - Reg S

     EUR  111,000         141,594   

8.00%, 01/15/2021 - Reg S (A)

     110,000         136,022   

Life Sciences Tools & Services - 0.1%

     

Life Technologies Corp.
6.00%, 03/01/2020

     $  1,150,000         1,295,554   

Marine - 0.2%

     

DP World Sukuk, Ltd.
6.25%, 07/02/2017 - Reg S

     2,440,000         2,610,800   

Media - 2.2%

     

CBS Corp.

     

4.63%, 05/15/2018

     670,000         725,800   

5.75%, 04/15/2020

     530,000         601,139   

8.88%, 05/15/2019

     1,460,000         1,881,566   

Comcast Corp.

     

4.65%, 07/15/2042

     2,887,000         2,768,431   

5.88%, 02/15/2018

     2,709,000         3,162,804   

COX Communications, Inc.

     

3.25%, 12/15/2022 - 144A

     2,768,000         2,604,207   

4.70%, 12/15/2042 - 144A (A)

     906,000         803,617   

8.38%, 03/01/2039 - 144A

     3,525,000         4,777,612   

NBCUniversal Enterprise, Inc.
5.25%, 03/19/2021 - 144A (H)

     1,500,000         1,500,000   

NBCUniversal Media LLC

     

4.38%, 04/01/2021

     575,000         620,249   

4.45%, 01/15/2043

     1,389,000         1,296,664   

5.15%, 04/30/2020

     5,746,000         6,541,769   

News America, Inc.
7.63%, 11/30/2028

     1,070,000         1,304,364   

Time Warner Cable, Inc.
4.50%, 09/15/2042 (A)

     2,354,000         1,825,489   

Unitymedia KabelBW GmbH
9.50%, 03/15/2021 - Reg S

     EUR   130,000         187,828   

Metals & Mining - 0.5%

     

Freeport-McMoRan Copper & Gold, Inc.

     

3.10%, 03/15/2020 - 144A

     $  1,934,000         1,787,623   

5.45%, 03/15/2043 - 144A

     2,049,000         1,806,917   

Novelis, Inc.
8.75%, 12/15/2020

     2,735,000         2,933,288   
     Principal      Value  

Multi-Utilities - 0.6%

     

Dominion Resources, Inc.
1.95%, 08/15/2016

     $  2,650,000         $  2,702,897   

MidAmerican Energy Holdings Co.
5.95%, 05/15/2037

     4,565,000         5,071,797   

Multiline Retail - 0.1%

     

Macy’s Retail Holdings, Inc.
7.45%, 07/15/2017

     1,374,000         1,644,321   

Oil, Gas & Consumable Fuels - 3.6%

     

Anadarko Petroleum Corp.
5.95%, 09/15/2016

     3,035,000         3,404,281   

CNOOC Finance 2013, Ltd.
1.75%, 05/09/2018 (A)

     743,000         710,691   

CONSOL Energy, Inc.
8.25%, 04/01/2020

     290,000         303,775   

Energy Transfer Partners, LP

     

3.60%, 02/01/2023

     2,690,000         2,517,541   

6.50%, 02/01/2042

     1,493,000         1,592,174   

Laredo Petroleum, Inc.
7.38%, 05/01/2022 (A)

     1,370,000         1,438,500   

Linn Energy LLC / Linn Energy
Finance Corp.
6.25%, 11/01/2019 - 144A

     2,820,000         2,686,050   

MEG Energy Corp.

     

6.38%, 01/30/2023 - 144A

     740,000         717,800   

6.50%, 03/15/2021 - 144A

     4,030,000         3,994,737   

Murphy Oil Corp.

     

2.50%, 12/01/2017

     2,286,000         2,254,645   

3.70%, 12/01/2022

     3,217,000         2,984,176   

4.00%, 06/01/2022

     509,000         486,207   

Nexen, Inc.

     

5.88%, 03/10/2035

     110,000         114,934   

6.40%, 05/15/2037

     3,810,000         4,141,032   

7.50%, 07/30/2039

     830,000         1,013,658   

Noble Energy, Inc.

     

4.15%, 12/15/2021

     740,000         764,060   

6.00%, 03/01/2041 (A)

     1,260,000         1,419,524   

Novatek OAO via Novatek Finance, Ltd. 4.42%, 12/13/2022 - 144A

     1,135,000         1,041,363   

Peabody Energy Corp.
6.25%, 11/15/2021 (A)

     1,715,000         1,654,975   

Petrobras International Finance Co. - Pifco
3.88%, 01/27/2016

     5,825,000         5,992,911   

Plains Exploration & Production Co.
6.50%, 11/15/2020

     1,380,000         1,463,083   

Range Resources Corp.
5.75%, 06/01/2021

     450,000         463,500   

SemGroup, LP (Escrow Shares)
8.75%, 11/15/2049 (C)

     125,000         2,500   

Sibur Securities, Ltd.
3.91%, 01/31/2018 - 144A

     650,000         601,250   

Western Gas Partners, LP

     

4.00%, 07/01/2022

     1,212,000         1,176,481   

5.38%, 06/01/2021 (A)

     3,081,000         3,306,101   

Williams Cos., Inc.

     

3.70%, 01/15/2023

     1,575,000         1,463,306   

7.88%, 09/01/2021

     1,631,000         1,968,881   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    24

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Paper & Forest Products - 0.3%

     

International Paper Co.
4.75%, 02/15/2022 (A)

     $  4,304,000            4,529,047   

Personal Products - 0.0% (F)

     

Ontex IV SA
9.00%, 04/15/2019 - Reg S

     EUR  110,000         143,683   

Pharmaceuticals - 0.1%

     

Teva Pharmaceutical Finance Co., BV
3.65%, 11/10/2021

     $  850,000         850,078   

Professional Services - 0.0% (F)

     

La Financiere Atalian SA
7.25%, 01/15/2020 - Reg S (A)

     EUR  100,000         127,725   

TMF Group Holding BV
9.88%, 12/01/2019 - Reg S

     119,000         154,896   

Real Estate Investment Trusts - 0.3%

     

Ventas Realty, LP / Ventas Capital Corp.

  

   

2.70%,04/01/2020

     $  545,000         515,320   

4.75%,06/01/2021

     1,155,000         1,213,381   

Vornado Realty, LP
5.00%, 01/15/2022 (A)

     2,405,000         2,524,463   

Real Estate Management & Development - 0.2%

  

   

Algeco Scotsman Global Finance PLC,
Series EMTN
9.00%, 10/15/2018 - Reg S (A)

     EUR  110,000         144,284   

Realogy Corp.
Series 2012 - 3A, Class A1
7.88%, 02/15/2019 - 144A (A)

     $  2,020,000         2,131,100   

Road & Rail - 0.2%

     

Burlington Northern Santa Fe LLC
3.00%, 03/15/2023 (A)

     2,437,000         2,322,285   

Software - 0.1%

     

First Data Corp.
7.38%, 06/15/2019 - 144A

     1,060,000         1,089,150   

Specialty Retail - 0.1%

     

QVC, Inc.
7.50%, 10/01/2019 - 144A

     1,730,000         1,880,875   

Trading Companies & Distributors - 0.0% (F)

  

   

Rexel SA
5.13%, 06/15/2020 - Reg S

     EUR   100,000         129,839   

Transportation Infrastructure - 0.0% (F)

  

   

Gategroup Finance Luxembourg SA, Series EMTN
6.75%, 03/01/2019 - Reg S

     110,000         141,750   

Wireless Telecommunication Services - 1.4%

  

   

America Movil SAB de CV
2.38%, 09/08/2016

     $  3,420,000         3,465,175   

Crown Castle Towers LLC
6.11%, 01/15/2020 - 144A

     7,340,000         8,422,467   

MetroPCS Wireless, Inc.
7.88%, 09/01/2018

     117,000         124,605   

Phones4u Finance PLC
9.50%, 04/01/2018 - Reg S (A)

     GBP  210,000         325,787   

SBA Tower Trust
5.10%, 04/17/2017 - 144A

     $  1,570,000         1,717,101   

Sprint Nextel Corp.
9.00%, 11/15/2018 - 144A

     3,570,000         4,176,900   

VimpelCom Holdings BV
7.50%, 03/01/2022 - Reg S

     360,000         372,600   
    

 

 

  

Total Corporate Debt Securities (cost $370,259,740)

  

      372,072,091   
    

 

 

  
     Shares      Value  

PREFERRED STOCKS - 0.4%

     

Capital Markets - 0.1%

     

Goldman Sachs Group, Inc. - Series J, 5.50% (C)

     42,730         $  1,031,502   

Consumer Finance - 0.0% (F)

     

Ally Financial, Inc. 144A,7.00%

     341         324,110   

Diversified Financial Services - 0.2%

  

   

Citigroup Capital XIII,7.88% (C)

     126,052         3,510,548   

U.S. Government Agency Obligation - 0.1%

  

   

Fannie Mae - Series O, 0.00% (H) (J)

     1,300         10,374   

Fannie Mae - Series S, 8.25% (C) (H)  (J)

     81,175         369,347   

Freddie Mac - Series Z, 8.38% (C) (H)  (J)

     93,300         433,845   
    

 

 

  

Total Preferred Stocks (cost $6,667,328)

  

      5,679,726   
    

 

 

  

WARRANT - 0.0% (F)

     

Oil, Gas & Consumable Fuels - 0.0% (F)

  

   

SemGroup Corp. (A) (J)
Expiration: 11/30/2014
Exercise Price: $25.0

     340         7,636   
    

 

 

  

Total Warrant (cost $4)

        7,636   
    

 

 

  

SHORT-TERM INVESTMENT COMPANY - 2.4%

  

   

BlackRock Provident TempFund 24 (K)

     33,213,475         33,213,475   
    

 

 

  

Total Short-Term Investment Company (cost $33,213,475)

   

      33,213,475   
    

 

 

  

SECURITIES LENDING COLLATERAL - 8.0%

  

   

State Street Navigator Securities LendingTrust - Prime Portfolio, 0.18% (L)

     110,511,765         110,511,765   
    

 

 

  

Total Securities Lending Collateral (cost $110,511,765)

        110,511,765   
    

 

 

  

Total Investment Securities (cost $1,745,792,502) (M)

  

      1,725,792,569   

Other Assets and Liabilities - Net

        (341,142,825 ) 
    

 

 

  

Net Assets

       $  1,384,649,744   
    

 

 

  
     Principal      Value  

TBA SHORT COMMITMENTS - (12.0%)

 

   

U.S. GOVERNMENT AGENCY OBLIGATIONS - (12.0%)

 

Fannie Mae, TBA

     

3.00%

     $  (27,800,000)         $  (27,347,952 ) 

3.50%

     (18,900,000)         (19,503,328 ) 

4.00%

     (10,800,000)         (11,383,453 ) 

5.00%

     (28,700,000)         (30,886,133 ) 

5.50%

     (8,900,000)         (9,666,235 ) 

6.00%

     (17,000,000)         (18,487,500 ) 

Freddie Mac, TBA
3.00%

     (21,100,000 )       (20,565,906 ) 

Ginnie Mae, TBA

     

4.00%

     (7,800,000)         (8,175,375 ) 

4.50%

     (18,200,000)         (19,402,195 ) 

5.00%

     (500,000)         (541,094 ) 
    

 

 

  

Total U.S. Government Agency Obligations (proceeds $(167,372,875))

   

      (165,959,171 ) 
    

 

 

  

Total TBA Short Commitments (proceeds $(167,372,875))

   

      (165,959,171 ) 
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    25

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

 

CENTRALLY CLEARED SWAP AGREEMENTS: (N)

INTEREST RATE SWAP AGREEMENTS - FIXED RATE PAYABLE:

                          
Floating Rate Index    Fixed Rate      Expiration
Date		      Currency
Code		      Notional
Amount		      Market
Value		      Premiums
Paid
(Received)		      Net Unrealized
Appreciation
(Depreciation)		  

3-Month USD-LIBOR

      2.30 %       06/11/2023         USD         745,000       $   (25,775 )     $   13       $   (25,788 ) 

 

OVER THE COUNTER SWAP AGREEMENTS: (O)

CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - BUY PROTECTION: (P)

                
Reference Obligation   Fixed Deal
Pay Rate		     Expiration
Date		     Counterparty     Implied
Credit
Spread (BP)
at 06/30/13 (R)		     Notional
Amount (Q)		     Market
Value		     Premiums
Paid
(Received)		     Net Unrealized
Appreciation
(Depreciation)		  

Spain Government Bond, 5.00%, 07/30/2017

     1.00 %      03/20/2016        DUB        211.77      $ 8,000,000      $   235,777      $   305,689      $ (69,912 ) 

Spain Government Bond, 5.00%, 07/30/2017

     1.00        03/20/2016        MSC        211.77        8,000,000        235,776        306,611        (70,835 ) 
           

 

 

    

 

 

    

 

 

  
            $ 471,553      $ 612,300      $   (140,747 ) 
           

 

 

    

 

 

    

 

 

  

 

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION: (P)                
Reference Obligation   Fixed Deal
Pay Rate		     Expiration
Date		     Counterparty     Currency
Code		   Notional
Amount (Q)		     Market
Value (S)		    

Premiums

Paid
(Received)

     Net Unrealized
Appreciation
(Depreciation)		  

North America High Yield Index - Series 19, 5.00%

     5.00 %      12/20/2017        DUB      USD     5,821,000      $   (273,746 )    $   (9,482 )    $   (264,264 ) 

 

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION: (T)                            
Reference Obligation   Fixed Deal
Pay Rate		     Expiration
Date		     Counterparty     Currency
Code		   Notional
Amount (Q)		     Market
Value (S)		    

Premiums

Paid
(Received)

     Net Unrealized
Appreciation
(Depreciation)		  

North America High Yield Index -
Series 17, 1.00%

     5.00 %      12/20/2016        CITI      USD     14,400,000      $ 745,929      $ (959,076 )    $ 1,705,005   

North America High Yield Index -
Series 17, 2.00%

     5.00        12/20/2016        DUB      USD     3,120,000        161,618        (164,830 )      326,448   

North America High Yield Index -
Series 19, 5.00%

     5.00        12/20/2017        DUB      USD     7,500,000        352,704        (57,594 )      410,298   

North American CMBS Basket Index - Series AM2

     0.50        03/15/2049        DUB      USD     2,265,000        (150,044 )      (322,780 )      172,736   

North American CMBS Basket Index - Series AM4

     0.50        02/17/2051        DUB      USD     870,000        (104,525 )      (129,857 )      25,332   
           

 

 

    

 

 

    

 

 

  
            $   1,005,682      $   (1,634,137 )    $   2,639,819   
           

 

 

    

 

 

    

 

 

  

 

INTEREST RATE SWAP AGREEMENTS - FIXED RATE RECEIVABLE:                
Floating Rate Index   Fixed
Rate		     Expiration
Date		     Counterparty     Currency
Code		   Notional
Amount		     Market
Value		     Premiums
Paid
(Received)		    

Net Unrealized
Appreciation

(Depreciation)

  

6-Month JPY-LIBOR

     1.75 %      01/15/2033        CITI      JPY     268,900,000      $ 25,776      $   0      $   25,776   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    26

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

 

INTEREST RATE SWAP AGREEMENTS - FIXED RATE PAYABLE:                
Floating Rate Index   Fixed Rate     Expiration
Date		     Counterparty     Currency
Code		   Notional
Amount		     Market
Value		     Premiums
Paid
(Received)		     Net Unrealized
Appreciation
(Depreciation)		  

3-Month USD-LIBOR

     2.80 %      04/23/2043        BOA      USD     3,610,000      $ 392,408      $   0      $ 392,408   

3-Month USD-LIBOR

     2.80        04/23/2043        DUB      USD     3,680,000        398,047        0        398,047   

3-Month USD-LIBOR

     2.80        04/23/2043        BCLY      USD     3,630,000        392,638        0        392,638   

3-Month USD-LIBOR

     2.89        01/14/2043        DUB      USD     20,240,000        1,843,294        0        1,843,294   

3-Month USD-LIBOR

     3.00        02/11/2043        GSC      USD     12,000,000        855,829        0        855,829   

3-Month USD-LIBOR

     3.01        02/06/2043        BOA      USD     7,518,000        518,144        0        518,144   

3-Month USD-LIBOR

     3.03        02/19/2043        DUB      USD     3,600,000        240,991        0        240,991   

3-Month USD-LIBOR

     3.04        05/24/2043        BOA      USD     24,160,000        1,541,013        0        1,541,013   

3-Month USD-LIBOR

     3.04        05/23/2043        BCLY      USD     16,100,000        1,020,467        0        1,020,467   

3-Month USD-LIBOR

     3.05        05/24/2043        DUB      USD     21,740,000        1,356,957        0        1,356,957   

3-Month USD-LIBOR

     3.27        05/16/2021        DUB      USD     3,650,000        (265,856 )      0        (265,856 ) 

6-Month JPY-LIBOR

     1.68        01/25/2033        BCLY      JPY     268,900,000        10,813        0        10,813   
           

 

 

    

 

 

    

 

 

  
            $   8,304,745        0      $   8,304,745   
           

 

 

    

 

 

    

 

 

  

 

FUTURES CONTRACTS: (U) (V)                                
Description    Type      Contracts      Expiration Date      Net Unrealized
Appreciation
(Depreciation)		  

10-Year Australian Treasury Bond

      Long         80         09/16/2013       $ (46,321 ) 

10-Year U.S. Treasury Note

      Short         (1,691 )       09/19/2013         2,222,909   

2-Year U.S. Treasury Note

      Long         503         09/30/2013         (179,617 ) 

5-Year U.S. Treasury Note

      Long         980         09/30/2013         (1,664,625 ) 

Long U.S. Treasury Bond

      Long         213         09/19/2013         83,941   

Ultra Long U.S. Treasury Bond

      Long         665         09/19/2013         (2,777,911 ) 
           

 

 

  
         $   (2,361,624 ) 
           

 

 

  

 

FORWARD FOREIGN CURRENCY CONTRACTS: (O)  
Currency    Counterparty    Contracts
Bought
(Sold)		      Settlement Date     

Amount in U.S.

Dollars

Bought

(Sold)

      Net Unrealized
Appreciation
(Depreciation)		  

EUR

    BOA      (19,989,000 )       07/23/2013       $   (26,402,571 )     $   381,448   

EUR

    CITI      6,981,000         07/23/2013         9,109,975         (22,304 ) 

EUR

    CITI      (3,095,000 )       07/23/2013         (4,129,398 )       100,414   

EUR

    CITI      (12,633,878 )       07/23/2013         (16,588,282 )       141,852   

EUR

    MSC      (2,952,000 )       07/23/2013         (3,876,118 )       33,286   

GBP

    BCLY      (1,489,000 )       07/17/2013         (2,279,541 )       15,118   
              

 

 

  
            $ 649,814   
              

 

 

  

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $108,231,154. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(B) When-issued security. A conditional transaction in a security authorized for issuance, but not yet issued.
(C) Floating or variable rate note. Rate is listed as of June 30, 2013.
(D) Step bond - Coupon rate changes in increments to maturity. Rate disclosed is as of June 30, 2013. Maturity date disclosed is the ultimate maturity date.
(E) Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate market value of fair valued securities is $394, or less than 0.01% of the portfolio’s net assets.
(F) Percentage rounds to less than 0.1%.
(G) In default.
(H) The security has a perpetual maturity. The date shown is the next call date.
(I) Illiquid. Total aggregate market value of illiquid securities is $25,189, or less than 0.01% of the portfolio’s net assets.
(J) Non-income producing security.
(K) The investment issuer is affiliated with the sub-adviser of the portfolio.
(L) Rate shown reflects the yield at June 30, 2013.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    27

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

(M) Aggregate cost for federal income tax purposes is $1,745,792,502. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $26,694,456 and $46,694,389, respectively. Net unrealized depreciation for tax purposes is $19,999,933.
(N) Cash in the amount of $40,000 has been segregated by the custodian as collateral for centrally cleared swaps.
(O) Cash in the amount of $9,870,000 has been segregated by the broker as collateral for open swap and/or forward foreign currency contracts.
(P) If the portfolio is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the portfolio will either (a) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or underlying securities comprising the referenced obligation or (b) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced obligation.
(Q) The maximum potential amount the fund could be required to make as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.
(R) Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity or obligation.
(S)  The quoted market prices and resulting values for credit default swap agreements on asset-backed securities and credit indices serve as an indicator of the current status of the payment/performance risk and represent the likelihood of an expected liability (or profit) for the credit derivative had the notional amount of the swap agreement been closed/sold as of the period ended. Increasing market values, in absolute terms when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement.
(T) If the portfolio is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the portfolio will either (a) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced obligation or (b) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced obligation.
(U) Cash in the amount of $2,229,000 has been segregated by the custodian as collateral to cover margin requirements for open futures contracts.
(V) Securities with an aggregate market value of $1,543,761 have been pledged by the broker as collateral for open futures contracts.

DEFINITIONS:

 

144A    144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2013, these securities aggregated $245,496,029, or 17.73% of the portfolio’s net assets.
BCLY    Barclays Bank PLC
BOA    Bank of America
BP    Basis Point
CITI    Citigroup, Inc.
DUB    Deutsche Bank AG
EMTN    European Medium Term Note
GMTN    Global Medium Term Note
GSC    Goldman Sachs & Co.
IO    Interest Only
LIBOR    London Interbank Offered Rate
MSC    Morgan Stanley
MTN    Medium Term Note
OAO    Otkrytoe Aktsionernoe Obschestvo (Russian: Open Joint Stock Corporation)
OJSC    Open Joint Stock Company
REMIC    Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities)
Reg S    Security exempt from registration under Regulation S of the Securities Act of 1933, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
STRIPS    Separate Trading of Registered Interest and Principal of Securities
TBA    To Be Announced
CURRENCY ABBREVIATIONS:
EUR    Euro
GBP    Pound Sterling
JPY    Japanese Yen
USD    United States Dollar

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    28

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY: (W)

 

    

Level 1

Quoted Prices

    

Level 2

Other
Significant

Observable
Inputs

    

Level 3

Significant

Unobservable
Inputs

    

Value at

June 30, 2013

  

ASSETS

                                

Investment Securities

                                

U.S. Government Obligations

   $ —      $ 164,960,119      $ —      $ 164,960,119   

U.S. Government Agency Obligations

     —        605,355,097        —        605,355,097   

Foreign Government Obligations

     —        46,949,138        —        46,949,138   

Mortgage-Backed Securities

     —        180,977,662        —        180,977,662   

Asset-Backed Securities

     —        197,115,410        —        197,115,410   

Municipal Government Obligations

     —        3,984,827        —        3,984,827   

Preferred Corporate Debt Securities

     —        4,965,623        —        4,965,623   

Corporate Debt Securities

                                

Auto Components

     —        1,244,627        —        1,244,627   

Automobiles

     —        181,525        —        181,525   

Building Products

     —        144,613        —        144,613   

Capital Markets

     —        8,949,074        —        8,949,074   

Chemicals

     —        11,239,337        —        11,239,337   

Commercial Banks

     —        19,671,568        —        19,671,568   

Commercial Services & Supplies

     —        4,364,498        —        4,364,498   

Communications Equipment

     —        1,461,582        —        1,461,582   

Construction Materials

     —        316,085        —        316,085   

Consumer Finance

     —        1,566,782        —        1,566,782   

Containers & Packaging

     —        2,498,739        —        2,498,739   

Distributors

     —        2,492,473        —        2,492,473   

Diversified Financial Services

     —        62,136,158        0        62,136,158   

Diversified Telecommunication Services

     —        11,927,671        —        11,927,671   

Electric Utilities

     —        31,796,037        —        31,796,037   

Electronic Equipment & Instruments

     —        257,727        —        257,727   

Energy Equipment & Services

     —        18,475,374        —        18,475,374   

Food & Staples Retailing

     —        2,027,746        —        2,027,746   

Food Products

     —        1,302,168        —        1,302,168   

Health Care Equipment & Supplies

     —        5,955,628        —        5,955,628   

Health Care Providers & Services

     —        11,657,690        —        11,657,690   

Hotels, Restaurants & Leisure

     —        562,611        —        562,611   

Household Durables

     —        161,749        —        161,749   

Household Products

     —        5,264,550        —        5,264,550   

Insurance

     —        29,503,080        —        29,503,080   

Internet Software & Services

     —        277,616        —        277,616   

Life Sciences Tools & Services

     —        1,295,554        —        1,295,554   

Marine

     —        2,610,800        —        2,610,800   

Media

     —        30,601,539        —        30,601,539   

Metals & Mining

     —        6,527,828        —        6,527,828   

Multi-Utilities

     —        7,774,694        —        7,774,694   

Multiline Retail

     —        1,644,321        —        1,644,321   

Oil, Gas & Consumable Fuels

     —        49,678,136        —        49,678,136   

Paper & Forest Products

     —        4,529,047        —        4,529,047   

Personal Products

     —        143,683        —        143,683   

Pharmaceuticals

     —        850,078        —        850,078   

Professional Services

     —        282,621        —        282,621   

Real Estate Investment Trusts

     —        4,253,164        —        4,253,164   

Real Estate Management & Development

     —        2,275,384        —        2,275,384   

Road & Rail

     —        2,322,285        —        2,322,285   

Software

     —        1,089,150        —        1,089,150   

Specialty Retail

     —        1,880,875        —        1,880,875   

Trading Companies & Distributors

     —        129,839        —        129,839   

Transportation Infrastructure

     —        141,750        —        141,750   

Wireless Telecommunication Services

     —        18,604,635        —        18,604,635   

Preferred Stocks

     5,679,726        —        —        5,679,726   

Warrant

     7,636        —        —        7,636   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    29

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY (continued):

 

    

Level 1

Quoted Prices

    

Level 2

Other
Significant

Observable
Inputs

    

Level 3

Significant

Unobservable
Inputs

     Value at
June 30, 2013		  

Short-Term Investment Company

   $ 33,213,475      $ —      $ —      $ 33,213,475   

Securities Lending Collateral

     110,511,765        —        —        110,511,765   

Total Investment Securities

   $ 149,412,602      $ 1,576,379,967      $ 0      $ 1,725,792,569   
                                 

Derivative Financial Instruments

                                

Credit Default Swap Agreements (X)

   $ —      $ 2,639,819      $ —      $ 2,639,819   

Forward Foreign Currency Contracts (X)

     —        672,118        —        672,118   

Futures Contracts (X)

     2,306,850        —        —        2,306,850   

Interest Rate Swap Agreements (X)

     —        8,596,377        —        8,596,377   

Total Derivative Financial Instruments

   $   2,306,850      $   11,908,314      $             —      $   14,215,164   
                                 

Other Assets (Y)

                                

Cash

   $ 446,065      $ —      $ —      $ 446,065   

Cash on Deposit with Broker

     4,131,169        —        —        4,131,169   

Cash on Deposit with Custodian

     2,269,000        —        —        2,269,000   

Foreign Currency

     2,557,596        —        —        2,557,596   

Total Other Assets

   $   9,403,830      $   —      $   —      $   9,403,830   
       
    

Level 1

Quoted Prices

    

Level 2

Other

Significant

Observable
Inputs

    

Level 3
Significant

Unobservable
Inputs

    

Value at

June 30, 2013

  

LIABILITIES

                                

TBA Short Commitments

                                

U.S. Government Agency Obligations

   $ —      $ (165,959,171 )    $ —      $ (165,959,171 ) 

Total TBA Short Commitments

   $ —      $ (165,959,171 )    $ —      $ (165,959,171 ) 
                                 

Derivative Financial Instruments

                                

Credit Default Swap Agreements (X)

   $ —      $ (405,011 )    $ —      $ (405,011 ) 

Forward Foreign Currency Contracts (X)

     —        (22,304 )      —        (22,304 ) 

Futures Contracts (X)

     (4,668,474 )      —        —        (4,668,474 ) 

Interest Rate Swap Agreements (X)

     (25,788 )      (265,856 )      —        (291,644 ) 

Total Derivative Financial Instruments

   $ (4,694,262 )    $ (693,171 )    $ —      $ (5,387,433 ) 
                                 

Other Liabilities (Y)

                                

Cash Collateral due to Broker

   $ (9,870,000 )    $ —      $ —      $ (9,870,000 ) 

Collateral for Securities on Loan

     —        (110,511,765 )      —        (110,511,765 ) 

Total Other Liabilities

   $ (9,870,000 )    $ (110,511,765 )    $ —      $ (120,381,765 ) 

 

(W) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(X) Derivative financial instruments valued at unrealized appreciation (depreciation) on the instrument.
(Y) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

Level 3 Rollforward - Investment Securities

 

Securities   Beginning
Balance at
December 31, 2012		     Purchases     Sales     Accrued
Discounts
(Premiums)		     Total
Realized
Gain (Loss)		     Net Change in
Unrealized
Appreciation
(Depreciation) (Z)		     Transfers
into
Level 3		     Transfers
out of
Level 3		     Ending
Balance at
June 30, 2013 (AA)		     Net Change in
Unrealized
Appreciation
(Depreciation)
on Investments
Held at
June  30, 2013 (Z)		  
Corporate Debt Securities   $ 0      $  —      $  —      $  (1,534 )    $  (1,335,398 )    $  1,336,932      $  —      $  —      $ 0      $  671   

 

(Z) Any difference between Net Change in Unrealized Appreciation (Depreciation) and Net Change in Unrealized Appreciation (Depreciation) on Investments Held at June 30, 2013 may be due to an investment no longer held or categorized as Level 3 at period end.
(AA) Inputs used in the valuation of the Level 3 securities were not considered significant unobservable inputs.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    30

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Principal      Value  

CORPORATE DEBT SECURITIES - 85.4%

     

Aerospace & Defense - 1.1%

     

Bombardier, Inc.

     

6.13%, 01/15/2023 - 144A

     $  610,000         $  605,425   

GenCorp, Inc.

     

7.13%, 03/15/2021 - 144A

     1,350,000         1,397,250   

Huntington Ingalls Industries, Inc.

     

7.13%, 03/15/2021

     1,465,000         1,574,875   

Silver II Borrower / Silver II US Holdings LLC

     

7.75%, 12/15/2020 - 144A

     1,365,000         1,371,825   

TransDigm, Inc.

     

7.75%, 12/15/2018

     3,750,000         3,946,875   

Air Freight & Logistics - 0.3%

     

Air Medical Group Holdings, Inc.

     

9.25%, 11/01/2018

     1,944,000         2,094,660   

Auto Components - 0.5%

     

American Axle & Manufacturing Holdings, Inc.

     

9.25%, 01/15/2017 - 144A

     1,704,000         1,836,060   

Schaeffler Finance BV

     

4.75%, 05/15/2021 - 144A

     1,465,000         1,391,750   

Tomkins LLC / Tomkins, Inc.

     

9.00%, 10/01/2018

     588,000         640,920   

Tower Automotive Holdings USA LLC

     

10.63%, 09/01/2017 - 144A

     263,000         278,780   

Automobiles - 0.4%

     

DaimlerDaimlerChrysler Group LLC / CG Co.-Issuer, Inc.

     

8.25%, 06/15/2021

     2,815,000         3,107,056   

Beverages - 0.5%

     

Constellation Brands, Inc.

     

4.25%, 05/01/2023

     2,835,000         2,675,531   

6.00%, 05/01/2022

     1,240,000         1,329,900   

Biotechnology - 0.4%

     

STHI Holding Corp.

     

8.00%, 03/15/2018 - 144A

     1,115,000         1,204,200   

Warner Chilcott Co. LLC

     

7.75%, 09/15/2018

     2,043,000         2,206,440   

Building Products - 1.0%

     

Builders FirstSource, Inc.

     

7.63%, 06/01/2021 - 144A

     1,975,000         1,910,813   

Interline Brands, Inc.

     

10.00%, 11/15/2018

     2,665,000         2,864,875   

Nortek, Inc.

     

8.50%, 04/15/2021 - 144A

     1,440,000         1,526,400   

10.00%, 12/01/2018

     1,560,000         1,692,600   

Capital Markets - 0.1%

     

E*TRADE Financial Corp.

     

6.00%, 11/15/2017

     250,000         252,500   

6.38%, 11/15/2019

     860,000         872,900   

Chemicals - 2.3%

     

Ashland, Inc.

     

3.00%, 03/15/2016 - 144A

     460,000         462,300   

Celanese US Holdings LLC

     

5.88%, 06/15/2021

     765,000         810,900   

6.63%, 10/15/2018

     655,000         692,663   

Chemtura Corp.

     

7.88%, 09/01/2018

     1,520,000         1,645,400   

Ineos Finance PLC

     

8.38%, 02/15/2019 - 144A

     3,190,000         3,485,075   
     Principal      Value  

Chemicals (continued)

     

Kraton Polymers LLC / Kraton Polymers Capital Corp.

     

6.75%, 03/01/2019

     $  750,000         $  757,500   

Rain CII Carbon LLC / CII Carbon Corp.

     

8.00%, 12/01/2018 - 144A

     400,000         410,000   

Rockwood Specialties Group, Inc.

     

4.63%, 10/15/2020

     2,380,000         2,391,900   

Scotts Miracle-Gro Co.

     

6.63%, 12/15/2020

     360,000         381,600   

TPC Group, Inc.

     

8.75%, 12/15/2020 - 144A

     1,335,000         1,365,037   

Tronox Finance LLC

     

6.38%, 08/15/2020 - 144A

     3,780,000         3,562,650   

US Coatings Acquisition, Inc. / Flash Dutch 2 BV

     

7.38%, 05/01/2021 - 144A

     2,620,000         2,672,400   

Commercial Banks - 0.2%

     

CIT Group, Inc.

     

5.00%, 08/15/2022

     385,000         382,113   

5.25%, 03/15/2018

     525,000         539,437   

5.38%, 05/15/2020

     190,000         194,513   

5.50%, 02/15/2019 - 144A

     865,000         893,112   

UBS AG (Escrow Shares)

     

5.75%, 08/15/2017

     1,110,000         38,850   

Commercial Services & Supplies - 2.5%

     

ADS Waste Holdings, Inc.

     

8.25%, 10/01/2020 - 144A

     960,000         979,200   

Alphabet Holding Co., Inc.

     

7.75%, 11/01/2017

     2,385,000         2,444,625   

Ceridian Corp.

     

11.00%, 03/15/2021 - 144A

     475,000         524,875   

Clean Harbors, Inc.

     

5.13%, 06/01/2021

     865,000         871,488   

5.25%, 08/01/2020

     925,000         938,875   

Covanta Holding Corp.

     

6.38%, 10/01/2022

     1,700,000         1,718,018   

Envision Healthcare Corp.

     

8.13%, 06/01/2019

     690,000         733,125   

Hertz Corp.

     

6.25%, 10/15/2022

     955,000         996,781   

7.50%, 10/15/2018

     735,000         788,288   

Interface, Inc.

     

7.63%, 12/01/2018

     730,000         773,800   

Polymer Group, Inc.

     

7.75%, 02/01/2019

     1,265,000         1,315,600   

ServiceMaster Co.

     

8.00%, 02/15/2020

     1,025,000         1,022,437   

United Rentals North America, Inc.

     

7.38%, 05/15/2020

     4,950,000         5,284,125   

7.63%, 04/15/2022

     715,000         773,988   

8.25%, 02/01/2021

     290,000         317,550   

10.25%, 11/15/2019

     1,075,000         1,204,000   

Communications Equipment - 1.1%

     

Avaya, Inc.

     

7.00%, 04/01/2019 - 144A

     890,000         803,225   

9.00%, 04/01/2019 - 144A

     2,085,000         2,001,600   

9.75%, 11/01/2015

     560,000         554,400   

10.50%, 03/01/2021 - 144A

     3,607,405         2,732,609   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    31

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Communications Equipment (continued)

     

CommScope Holding Co., Inc.

     

6.63%, 06/01/2020 - 144A

     $  1,460,000         $  1,394,300   

CommScope, Inc.

     

8.25%, 01/15/2019 - 144A

     1,065,000         1,136,888   

Computers & Peripherals - 0.5%

  

NCR Corp.

     

5.00%, 07/15/2022

     1,145,000         1,104,925   

Seagate HDD Cayman

     

7.00%, 11/01/2021

     2,720,000         2,910,400   

Consumer Finance - 1.5%

     

Ally Financial, Inc.

     

4.63%, 06/26/2015

     3,340,000         3,423,607   

5.50%, 02/15/2017

     1,700,000         1,776,177   

6.25%, 12/01/2017

     3,830,000         4,097,219   

8.00%, 12/31/2018 - 11/01/2031

     2,430,000         2,895,825   

Containers & Packaging - 1.2%

     

Ardagh Packaging Finance PLC / Ardagh

     

MP Holdings USA, Inc.

     

7.00%, 11/15/2020 - 144A

     2,705,000         2,606,944   

BOE Merger Corp.

     

9.50%, 11/01/2017 - 144A

     1,670,000         1,703,400   

BWAY Holding Co.

     

10.00%, 06/15/2018

     455,000         498,225   

Crown Americas LLC / Crown Americas

     

Capital Corp. IV

     

4.50%, 01/15/2023 - 144A

     1,245,000         1,173,412   

Sealed Air Corp.

     

8.38%, 09/15/2021 - 144A

     3,625,000         4,096,250   

Distributors - 0.6%

     

American Builders & Contractors Supply Co., Inc.

     

5.63%, 04/15/2021 - 144A

     940,000         923,550   

HD Supply, Inc.

     

7.50%, 07/15/2020 - 144A

     890,000         901,125   

8.13%, 04/15/2019

     695,000         761,025   

11.50%, 07/15/2020

     900,000         1,044,000   

VWR Funding, Inc.

     

7.25%, 09/15/2017

     1,325,000         1,371,375   

Diversified Consumer Services - 1.1%

     

Laureate Education, Inc.

     

9.25%, 09/01/2019 - 144A

     8,740,000         9,351,800   

Diversified Financial Services - 1.6%

     

AWAS Aviation Capital, Ltd.

     

7.00%, 10/17/2016 - 144A

     121,600         126,464   

CEVA Group PLC

     

8.38%, 12/01/2017 - 144A

     1,845,000         1,808,100   

11.63%, 10/01/2016 - 144A

     1,455,000         1,469,550   

General Motors Financial Co., Inc.

     

2.75%, 05/15/2016 - 144A

     185,000         181,994   

3.25%, 05/15/2018 - 144A

     320,000         311,200   

4.25%, 05/15/2023 - 144A

     1,060,000         987,125   

4.75%, 08/15/2017 - 144A

     1,350,000         1,383,750   

6.75%, 06/01/2018

     1,075,000         1,169,062   

Neuberger Berman Group LLC / Neuberger Berman Finance Corp.

     

5.63%, 03/15/2020 - 144A

     2,870,000         2,970,450   

Nuveen Investments, Inc.

     

9.50%, 10/15/2020 - 144A

     2,415,000         2,402,925   
     Principal      Value  

Diversified Telecommunication Services - 4.8%

  

   

Digicel, Ltd.

     

6.00%, 04/15/2021 - 144A

     $  1,825,000         $  1,724,625   

Frontier Communications Corp.

     

7.63%, 04/15/2024

     1,405,000         1,408,512   

Hughes Satellite Systems Corp.

     

6.50%, 06/15/2019

     2,725,000         2,888,500   

Intelsat Jackson Holdings SA

     

7.25%, 10/15/2020

     1,895,000         1,989,750   

Intelsat Luxembourg SA

     

7.75%, 06/01/2021 - 144A

     4,210,000         4,252,100   

8.13%, 06/01/2023 - 144A

     3,205,000         3,309,162   

Lynx II Corp.

     

6.38%, 04/15/2023 - 144A

     945,000         952,088   

SBA Telecommunications, Inc.

     

5.75%, 07/15/2020 - 144A

     1,640,000         1,644,100   

8.25%, 08/15/2019

     429,000         464,393   

Sprint Capital Corp.

     

8.75%, 03/15/2032

     1,090,000         1,199,000   

UPCB Finance V, Ltd.

     

7.25%, 11/15/2021 - 144A

     4,730,000         5,001,975   

UPCB Finance VI, Ltd.

     

6.88%, 01/15/2022 - 144A

     1,620,000         1,676,700   

Wind Acquisition Holdings Finance SA

     

12.25%, 07/15/2017 - 144A (A)

     2,865,334         2,726,923   

Windstream Corp.

     

6.38%, 08/01/2023

     2,385,000         2,229,975   

7.50%, 06/01/2022

     1,200,000         1,224,000   

7.75%, 10/01/2021

     5,410,000         5,599,350   

8.13%, 09/01/2018

     555,000         591,075   

Electric Utilities - 0.3%

     

Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc.

     

6.88%, 08/15/2017 - 144A

     640,000         649,600   

Texas Competitive Electric Holdings Co. LLC / TCEH Finance, Inc.

     

11.50%, 10/01/2020 - 144A

     1,880,000         1,405,300   

Electrical Equipment - 0.2%

     

Belden, Inc.

     

5.50%, 09/01/2022 - 144A

     380,000         373,350   

General Cable Corp.

     

5.75%, 10/01/2022 - 144A

     1,430,000         1,415,700   

Energy Equipment & Services - 2.9%

     

Atlas Pipeline Partners, LP / Atlas Pipeline

     

Finance Corp.

     

4.75%, 11/15/2021 - 144A

     2,635,000         2,371,500   

Atwood Oceanics, Inc.

     

6.50%, 02/01/2020

     1,035,000         1,073,813   

Bristow Group, Inc.

     

6.25%, 10/15/2022

     1,050,000         1,076,250   

Calfrac Holdings, LP

     

7.50%, 12/01/2020 - 144A

     690,000         683,100   

FTS International Services LLC / FTS International Bonds, Inc.

     

8.13%, 11/15/2018 - 144A

     2,284,000         2,369,650   

Holly Energy Partners, LP / Holly Energy Finance Corp.

     

6.50%, 03/01/2020

     505,000         508,788   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    32

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Energy Equipment & Services (continued)

  

   

Oil States International, Inc.

     

6.50%, 06/01/2019

     $  2,110,000         $  2,183,850   

Pacific Drilling SA

     

5.38%, 06/01/2020 - 144A

     1,015,000         949,025   

Precision Drilling Corp.

     

6.50%, 12/15/2021

     1,835,000         1,857,937   

6.63%, 11/15/2020

     835,000         847,525   

Sabine Pass Liquefaction LLC

     

5.63%, 02/01/2021 - 04/15/2023 - 144A

     5,200,000         4,996,750   

Seadrill, Ltd.

     

5.63%, 09/15/2017 - 144A

     3,610,000         3,555,850   

SESI LLC

     

6.38%, 05/01/2019

     1,315,000         1,357,737   

Food & Staples Retailing - 0.4%

     

Dufry Finance SCA

     

5.50%, 10/15/2020 - 144A

     1,500,000         1,503,963   

Pantry, Inc.

     

8.38%, 08/01/2020

     1,885,000         2,024,019   

Food Products - 1.1%

  

American Seafoods Group LLC
10.75%, 05/15/2016 - 144A

     2,875,000         2,990,000   

ARAMARK Corp.
5.75%, 03/15/2020 - 144A

     895,000         915,137   

ASG Consolidated LLC / ASG Finance, Inc.
15.00%, 05/15/2017 - 144A (A) (B)

     1,958,326         2,039,923   

B&G Foods, Inc.
4.63%, 06/01/2021

     665,000         635,075   

Michael Foods Group, Inc.
9.75%, 07/15/2018

     1,025,000         1,122,375   

Michael Foods Holding, Inc.
8.50%, 07/15/2018 - 144A

     1,335,000         1,375,050   

Gas Utilities - 1.0%

     

AmeriGas Finance LLC / AmeriGas Finance Corp.

     

6.75%, 05/20/2020

     985,000         1,019,475   

7.00%, 05/20/2022

     3,665,000         3,747,463   

AmeriGas Partners, LP / AmeriGas Finance Corp.
6.25%, 08/20/2019

     1,220,000         1,226,100   

Sabine Pass LNG, LP
6.50%, 11/01/2020 - 144A

     1,915,000         1,934,150   

Health Care Equipment & Supplies - 3.5%

     

Accellent, Inc.
8.38%, 02/01/2017

     2,950,000         3,053,250   

Alere, Inc.

     

6.50%, 06/15/2020 - 144A

     4,890,000         4,743,300   

8.63%, 10/01/2018

     1,180,000         1,244,900   

Bausch & Lomb, Inc.
9.88%, 11/01/2015

     903,000         927,833   

Biomet, Inc.
6.50%, 08/01/2020

     2,100,000         2,164,312   

ConvaTec Healthcare E SA
10.50%, 12/15/2018 - 144A

     4,540,000         4,959,950   

DJO Finance LLC / DJO Finance Corp.
8.75%, 03/15/2018

     1,245,000         1,344,600   

Hologic, Inc.
6.25%, 08/01/2020

     4,430,000         4,593,356   
     Principal      Value  

Health Care Equipment & Supplies (continued)

  

   

Kinetic Concepts, Inc. / KCI USA, Inc.
10.50%, 11/01/2018

     $  3,095,000         $  3,327,125   

Physio-Control International, Inc.
9.88%, 01/15/2019 - 144A

     1,300,000         1,430,000   

Teleflex, Inc.
6.88%, 06/01/2019

     435,000         458,925   

Health Care Providers & Services - 3.5%

     

Amsurg Corp.
5.63%, 11/30/2020

     625,000         625,000   

CDRT Holding Corp.
9.25%, 10/01/2017 - 144A

     1,695,000         1,716,188   

CHS/Community Health Systems, Inc.

     

5.13%, 08/15/2018

     2,170,000         2,202,550   

7.13%, 07/15/2020

     2,295,000         2,363,850   

DaVita HealthCare Partners, Inc. 5.75%, 08/15/2022

     3,765,000         3,755,587   

Fresenius Medical Care U.S. Finance II, Inc.

  

   

5.63%, 07/31/2019 - 144A

     1,300,000         1,352,000   

5.88%, 01/31/2022 - 144A

     755,000         794,638   

HCA Holdings, Inc.
6.25%, 02/15/2021

     1,510,000         1,540,200   

HCA, Inc.

     

6.50%, 02/15/2020

     2,905,000         3,142,847   

7.50%, 02/15/2022

     3,410,000         3,776,575   

INC Research LLC
11.50%, 07/15/2019 - 144A

     970,000         1,042,750   

MultiPlan, Inc.
9.88%, 09/01/2018 - 144A

     2,885,000         3,137,437   

ResCare, Inc.
10.75%, 01/15/2019

     1,975,000         2,212,000   

United Surgical Partners International, Inc.
9.00%, 04/01/2020

     1,180,000         1,274,400   

Health Care Technology - 0.2%

     

IMS Health, Inc.
6.00%, 11/01/2020 - 144A

     1,855,000         1,887,463   

Hotels, Restaurants & Leisure - 7.1%

     

Buffalo Thunder Development Authority 9.38%, 12/15/2014 - 144A (C)

     3,095,000         967,188   

Caesars Entertainment Operating Co., Inc.

     

5.63%, 06/01/2015

     5,740,000         5,137,300   

8.50%, 02/15/2020

     3,195,000         3,011,287   

11.25%, 06/01/2017

     2,045,000         2,129,356   

Caesars Operating Escrow LLC / Caesars Escrow Corp.
9.00%, 02/15/2020 - 144A

     1,435,000         1,366,838   

Carlson Wagonlit BV
6.88%, 06/15/2019 - 144A

     1,340,000         1,353,400   

Cinemark USA, Inc.
7.38%, 06/15/2021

     540,000         585,900   

Greektown Holdings LLC (Escrow Shares)
10.75%, 12/01/2013 (C)

     1,495,000         0   

Inn of the Mountain Gods Resort & Casino
8.75%, 11/30/2020 - 144A (B)

     240,000         238,800   

MGM Resorts International

     

5.88%, 02/27/2014

     945,000         966,263   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    33

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Hotels, Restaurants & Leisure (continued)

  

   

MGM Resorts International (continued)

  

   

6.63%, 12/15/2021

     $  3,185,000         $  3,284,531   

7.75%, 03/15/2022

     3,385,000         3,676,956   

Mohegan Tribal Gaming Authority

     

10.50%, 12/15/2016 - 144A

     1,550,000         1,515,125   

11.00%, 09/15/2018 - 144A

     2,580,000         2,425,200   

11.50%, 11/01/2017 - 144A (B)

     1,385,000         1,530,425   

National CineMedia LLC
6.00%, 04/15/2022

     1,045,000         1,072,431   

New Cotai LLC / New Cotai Capital Corp.
10.63%, 05/01/2019 - 144A (A) 

     1,500,000         1,439,010   

NPC International, Inc. / NPC Operating Co. A, Inc.
10.50%, 01/15/2020

     2,725,000         3,123,531   

Royal Caribbean Cruises, Ltd.
7.25%, 06/15/2016 - 03/15/2018

     970,000         1,079,750   

Seven Seas Cruises S de RL, LLC
9.13%, 05/15/2019

     2,700,000         2,862,000   

Station Casinos LLC
7.50%, 03/01/2021 - 144A

     2,270,000         2,292,700   

Studio City Finance, Ltd.
8.50%, 12/01/2020 - 144A

     6,625,000         7,088,750   

Sugarhouse HSP Gaming Prop Mezz, LP / Sugarhouse HSP Gaming Finance Corp.
6.38%, 06/01/2021 - 144A

     485,000         469,238   

Tunica-Biloxi Gaming Authority
9.00%, 11/15/2015 - 144A (B)

     2,435,000         2,142,800   

Viking Cruises, Ltd.
8.50%, 10/15/2022 - 144A

     1,160,000         1,270,200   

Waterford Gaming LLC / Waterford Gaming Financial Corp.
8.63%, 09/15/2014 - 144A (B) (D)

     1,758,906         869,427   

WMG Acquisition Corp.

     

6.00%, 01/15/2021 - 144A

     868,000         883,190   

11.50%, 10/01/2018

     2,995,000         3,429,275   

Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.
7.75%, 08/15/2020

     1,435,000         1,593,424   

Household Durables - 0.7%

     

Brookfield Residential Properties, Inc.
6.50%, 12/15/2020 - 144A

     2,220,000         2,236,650   

Libbey Glass, Inc.
6.88%, 05/15/2020

     603,000         630,889   

SIWF Merger Sub, Inc. / Springs Industries, Inc.
6.25%, 06/01/2021 - 144A

     1,450,000         1,421,000   

Tempur-Pedic International, Inc.
6.88%, 12/15/2020 - 144A

     1,065,000         1,123,575   

Household Products - 2.3%

     

Harbinger Group, Inc.
7.88%, 07/15/2019 - 144A

     890,000         910,025   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC

    

6.88%, 02/15/2021

     3,150,000         3,307,500   

7.13%, 04/15/2019

     1,795,000         1,895,969   

7.88%, 08/15/2019

     985,000         1,073,650   

9.88%, 08/15/2019

     4,600,000         4,922,000   
     Principal      Value  

Household Products (continued)

  

   

Spectrum Brands Escrow Corp.

     

6.38%, 11/15/2020 - 144A

     $  935,000         $  979,412   

6.63%, 11/15/2022 - 144A

     1,360,000         1,424,600   

Spectrum Brands, Inc.

     

6.75%, 03/15/2020

     1,345,000         1,417,294   

9.50%, 06/15/2018

     870,000         952,650   

Sun Products Corp.
7.75%, 03/15/2021 - 144A

     1,885,000         1,870,862   

Independent Power Producers & Energy Traders - 0.9%

  

   

AES Corp.
4.88%, 05/15/2023

     960,000         895,200   

Edison Mission Energy
7.50%, 06/15/2013 (C)

     2,750,000         1,546,875   

NRG Energy, Inc.

     

7.88%, 05/15/2021

     1,665,000         1,777,388   

8.25%, 09/01/2020

     2,960,000         3,189,400   

Industrial Conglomerates - 0.3%

     

Amsted Industries, Inc.
8.13%, 03/15/2018 - 144A

     2,360,000         2,489,800   

Insurance - 0.7%

     

A-S Co.-Issuer Subsidiary, Inc. / A-S Merger Sub LLC
7.88%, 12/15/2020 - 144A

     1,255,000         1,261,275   

Hub International, Ltd.
8.13%, 10/15/2018 - 144A

     1,300,000         1,352,000   

Onex USI Acquisition Corp.
7.75%, 01/15/2021 - 144A

     2,955,000         2,910,675   

Internet Software & Services - 0.1%

     

Equinix, Inc.
7.00%, 07/15/2021

     1,100,000         1,193,500   

IT Services - 0.4%

     

Alliance Data Systems Corp.
6.38%, 04/01/2020 - 144A

     1,000,000         1,030,000   

Lender Processing Services, Inc.
5.75%, 04/15/2023

     1,425,000         1,514,063   

NeuStar, Inc.
4.50%, 01/15/2023 - 144A

     675,000         637,875   

Life Sciences Tools & Services - 0.5%

     

Jaguar Holding Co. II / Jaguar Merger Sub, Inc.
9.50%, 12/01/2019 - 144A

     4,070,000         4,497,350   

Machinery - 1.0%

     

BC Mountain LLC / BC Mountain Finance, Inc.
7.00%, 02/01/2021 - 144A

     1,705,000         1,739,100   

CNH Capital LLC
6.25%, 11/01/2016

     1,640,000         1,746,600   

JMC Steel Group, Inc.
8.25%, 03/15/2018 - 144A

     1,535,000         1,500,463   

Milacron LLC / Mcron Finance Corp.
7.75%, 02/15/2021 - 144A

     475,000         473,813   

Navistar International Corp.
8.25%, 11/01/2021

     2,725,000         2,677,312   

Media - 5.5%

     

Adelphia Communications Corp. (Escrow Certificates)

     

9.25%, 10/01/2049 (E)

     1,305,000         9,788   

10.25%, 06/15/2049 - 11/01/2049

     1,460,000         10,950   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    34

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Media (continued)

     

AMC Entertainment, Inc.
8.75%, 06/01/2019

     $  535,000         $  572,450   

AMC Networks, Inc.

     

4.75%, 12/15/2022

     885,000         854,025   

7.75%, 07/15/2021

     890,000         972,325   

Cablevision Systems Corp.
7.75%, 04/15/2018

     4,805,000         5,165,375   

Catalina Marketing Corp.
10.50%, 10/01/2015 - 144A (A)

     2,383,984         2,413,784   

CCO Holdings LLC / CCO Holdings Capital Corp.

     

5.25%, 09/30/2022

     2,885,000         2,740,750   

5.75%, 01/15/2024

     1,865,000         1,799,725   

6.50%, 04/30/2021

     1,125,000         1,172,812   

8.13%, 04/30/2020

     100,000         109,250   

Clear Channel Communications, Inc.
11.25%, 03/01/2021 - 144A

     1,360,000         1,417,800   

Clear Channel Worldwide Holdings, Inc.

     

6.50%, 11/15/2022 - 144A

     3,450,000         3,548,850   

7.63%, 03/15/2020

     385,000         396,550   

Crown Media Holdings, Inc.
10.50%, 07/15/2019

     770,000         854,700   

CSC Holdings LLC
6.75%, 11/15/2021

     185,000         199,338   

DISH DBS Corp.

     

5.88%, 07/15/2022

     1,970,000         1,999,550   

6.75%, 06/01/2021

     3,215,000         3,415,937   

LBI Media, Inc.

     

10.00%, 04/15/2019 - 144A

     1,490,000         1,296,300   

13.50%, 04/15/2020 - 144A (A) (B)

     157,272         59,763   

McGraw-Hill Global Education Holdings LLC / McGraw-Hill Global Education Finance
9.75%, 04/01/2021 - 144A

     2,800,000         2,863,000   

MDC Partners, Inc.
6.75%, 04/01/2020 - 144A

     950,000         947,625   

Mediacom LLC / Mediacom Capital Corp.
9.13%, 08/15/2019

     935,000         1,005,125   

NAI Entertainment Holdings LLC
8.25%, 12/15/2017 - 144A

     621,000         664,470   

National CineMedia LLC
7.88%, 07/15/2021

     3,010,000         3,265,850   

Regal Entertainment Group

     

5.75%, 02/01/2025

     720,000         684,000   

9.13%, 08/15/2018

     778,000         855,800   

Sitel LLC
11.50%, 04/01/2018

     680,000         506,600   

Starz LLC / Starz Finance Corp.
5.00%, 09/15/2019

     1,250,000         1,240,625   

Unitymedia Hessen GmbH & Co. KG /
Unitymedia NRW GmbH
5.50%, 01/15/2023 - 144A

     2,220,000         2,097,900   

Univision Communications, Inc.
5.13%, 05/15/2023 - 144A

     1,915,000         1,809,675   

Metals & Mining - 2.3%

     

AK Steel Corp.
8.75%, 12/01/2018 - 144A

     870,000         915,675   

ArcelorMittal
6.75%, 02/25/2022

     985,000         1,009,625   

Eldorado Gold Corp.
6.13%, 12/15/2020 - 144A

     3,205,000         3,092,825   
     Principal      Value  

Metals & Mining (continued)

     

IAMGOLD Corp.
6.75%, 10/01/2020 - 144A

     $  1,870,000         $  1,580,150   

Inmet Mining Corp.

     

7.50%, 06/01/2021 - 144A

     1,310,000         1,254,325   

8.75%, 06/01/2020 - 144A

     900,000         920,250   

KGHM International, Ltd.
7.75%, 06/15/2019 - 144A

     2,985,000         3,029,775   

New Gold, Inc.

     

6.25%, 11/15/2022 - 144A

     1,300,000         1,244,750   

7.00%, 04/15/2020 - 144A

     770,000         777,700   

Novelis, Inc.

     

8.38%, 12/15/2017

     1,145,000         1,213,700   

8.75%, 12/15/2020

     2,205,000         2,364,862   

SunCoke Energy, Inc.
7.63%, 08/01/2019

     1,085,000         1,125,688   

Oil, Gas & Consumable Fuels - 9.2%

     

Atlas Energy Holdings Operating Co. LLC /
Atlas Resource Finance Corp.
7.75%, 01/15/2021 - 144A

     755,000         721,025   

Berry Petroleum Co.
6.38%, 09/15/2022

     3,715,000         3,701,069   

Bonanza Creek Energy, Inc.
6.75%, 04/15/2021

     1,410,000         1,420,575   

Chesapeake Energy Corp.

     

5.75%, 03/15/2023

     3,175,000         3,214,687   

6.13%, 02/15/2021

     2,895,000         3,039,750   

Chesapeake Oilfield Operating LLC /
Chesapeake Oilfield Finance, Inc. 6.63%, 11/15/2019 - 144A

     875,000         866,250   

Concho Resources, Inc.

     

5.50%, 04/01/2023

     3,800,000         3,743,000   

6.50%, 01/15/2022

     1,070,000         1,131,525   

7.00%, 01/15/2021

     1,325,000         1,424,375   

CONSOL Energy, Inc.
8.00%, 04/01/2017

     1,335,000         1,405,088   

Continental Resources, Inc.

     

4.50%, 04/15/2023 - 144A

     1,875,000         1,823,437   

5.00%, 09/15/2022

     4,215,000         4,288,762   

7.13%, 04/01/2021

     545,000         599,500   

CrownRock, LP / CrownRock Finance, Inc.
7.13%, 04/15/2021 - 144A

     1,875,000         1,837,500   

CVR Refining LLC / Coffeyville Finance, Inc.
6.50%, 11/01/2022 - 144A

     2,355,000         2,307,900   

Denbury Resources, Inc.
8.25%, 02/15/2020

     1,360,000         1,468,800   

Energy Transfer Equity, LP
7.50%, 10/15/2020

     725,000         792,063   

EP Energy LLC / EP Energy Finance, Inc.
9.38%, 05/01/2020

     2,490,000         2,813,700   

EP Energy LLC / Everest Acquisition Finance, Inc.

     

6.88%, 05/01/2019

     3,385,000         3,621,950   

7.75%, 09/01/2022

     680,000         727,600   

EPL Oil & Gas, Inc.
8.25%, 02/15/2018

     1,430,000         1,472,900   

Frontier Oil Corp.
6.88%, 11/15/2018

     445,000         477,263   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    35

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Oil, Gas & Consumable Fuels (continued)

  

   

Harvest Operations Corp.
6.88%, 10/01/2017

     $  645,000         $  719,175   

Kodiak Oil & Gas Corp.

     

5.50%, 01/15/2021 - 144A

     360,000         351,000   

8.13%, 12/01/2019

     3,020,000         3,276,700   

Laredo Petroleum, Inc.
7.38%, 05/01/2022

     1,645,000         1,727,250   

MEG Energy Corp.
6.38%, 01/30/2023 - 144A

     1,870,000         1,813,900   

Newfield Exploration Co.
5.63%, 07/01/2024

     2,265,000         2,197,050   

Oasis Petroleum, Inc.

     

6.50%, 11/01/2021

     755,000         773,875   

6.88%, 01/15/2023

     2,510,000         2,585,300   

PBF Holding Co. LLC / PBF Finance Corp.
8.25%, 02/15/2020

     100,000         104,750   

Plains Exploration & Production Co.
6.88%, 02/15/2023

     3,510,000         3,755,356   

QEP Resources, Inc.
5.25%, 05/01/2023

     1,455,000         1,418,625   

Range Resources Corp.
6.75%, 08/01/2020

     1,320,000         1,415,700   

Rosetta Resources, Inc.

     

5.63%, 05/01/2021

     1,610,000         1,571,763   

9.50%, 04/15/2018

     825,000         891,000   

SandRidge Energy, Inc.

     

7.50%, 03/15/2021

     890,000         849,950   

8.13%, 10/15/2022

     90,000         89,100   

SemGroup, LP (Escrow Shares)
8.75%, 11/15/2049 (E)

     2,985,000         59,700   

Seven Generations Energy, Ltd.
8.25%, 05/15/2020 - 144A

     955,000         950,225   

SM Energy Co.
6.50%, 01/01/2023

     1,445,000         1,517,250   

SunCoke Energy Partners, LP /
SunCoke Energy Partners Finance Corp.
7.38%, 02/01/2020 - 144A (B)

     465,000         474,300   

Tesoro Corp.
5.38%, 10/01/2022

     1,905,000         1,928,812   

Venoco, Inc.
11.50%, 10/01/2017

     430,000         454,725   

WPX Energy, Inc.

     

5.25%, 01/15/2017

     615,000         630,375   

6.00%, 01/15/2022

     2,725,000         2,752,250   

Paper & Forest Products - 0.5%

     

Boise Paper Holdings LLC

     

8.00%, 04/01/2020

     445,000         473,925   

9.00%, 11/01/2017

     1,835,000         1,935,925   

Domtar Corp.
10.75%, 06/01/2017

     1,540,000         1,938,102   

Pharmaceuticals - 1.3%

     

ENDO Health Solutions, Inc.

     

7.00%, 07/15/2019 - 12/15/2020

     1,930,000         1,943,769   

7.25%, 01/15/2022

     2,275,000         2,292,062   

VPI Escrow Corp.
6.38%, 10/15/2020 - 144A

     4,365,000         4,315,894   

VPII Escrow Corp.
7.50%, 07/15/2021 - 144A

     1,945,000         2,013,075   
     Principal      Value  

Professional Services - 1.3%

     

FTI Consulting, Inc.
6.00%, 11/15/2022 - 144A

     $  1,045,000         $  1,058,063   

TransUnion Holding Co., Inc.

     

8.13%, 06/15/2018 - 144A

     1,980,000         2,096,325   

9.63%, 06/15/2018

     3,545,000         3,784,287   

TransUnion LLC / TransUnion Financing Corp.
11.38%, 06/15/2018

     3,035,000         3,361,262   

Real Estate Investment Trusts - 0.0% (F)

     

RHP Hotel Properties, LP / RHP Finance Corp.
5.00%, 04/15/2021 - 144A

     385,000         373,450   

Real Estate Management & Development - 0.3%

  

   

CBRE Services, Inc.
6.63%, 10/15/2020

     2,470,000         2,605,850   

Road & Rail - 0.4%

     

Avis Budget Car Rental LLC / Avis Budget Finance, Inc.
9.75%, 03/15/2020

     2,165,000         2,489,750   

Kansas City Southern de Mexico SA de CV
6.13%, 06/15/2021

     106,000         120,310   

Watco Cos. LLC / Watco Finance Corp.
6.38%, 04/01/2023 - 144A

     950,000         945,250   

Semiconductors & Semiconductor Equipment - 0.1%

  

   

NXP BV / NXP Funding LLC
5.75%, 02/15/2021 - 144A

     990,000         1,002,375   

Software - 2.2%

     

First Data Corp.

     

6.75%, 11/01/2020 - 144A

     200,000         203,500   

7.38%, 06/15/2019 - 144A

     2,535,000         2,604,712   

10.63%, 06/15/2021 - 144A

     3,210,000         3,169,875   

11.25%, 01/15/2021 - 144A

     1,725,000         1,720,687   

Infor US, Inc.
9.38%, 04/01/2019

     1,605,000         1,739,419   

Nuance Communications, Inc.
5.38%, 08/15/2020 - 144A

     2,220,000         2,170,050   

Southern Graphics, Inc.
8.38%, 10/15/2020 - 144A

     1,565,000         1,611,950   

SSI Investments II, Ltd. / SSI Co.-Issuer LLC
11.13%, 06/01/2018

     4,375,000         4,796,094   

Specialty Retail - 6.3%

     

Academy, Ltd.
9.25%, 08/01/2019 - 144A

     2,170,000         2,403,275   

Burlington Holdings LLC /
Burlington Holding Finance, Inc.
9.00%, 02/15/2018 - 144A (A)

     2,000,000         2,050,000   

Claire’s Stores, Inc.

     

6.13%, 03/15/2020 - 144A

     1,300,000         1,277,250   

7.75%, 06/01/2020 - 144A

     1,160,000         1,122,300   

8.88%, 03/15/2019

     450,000         472,500   

9.00%, 03/15/2019 - 144A

     2,510,000         2,761,000   

Express LLC
8.75%, 03/01/2018

     5,145,000         5,505,150   

Hot Topic, Inc.
9.25%, 06/15/2021 - 144A

     3,590,000         3,634,875   

L Brands, Inc.

     

5.63%, 02/15/2022

     2,700,000         2,740,500   

6.63%, 04/01/2021

     4,135,000         4,491,644   

8.50%, 06/15/2019

     2,650,000         3,074,000   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    36

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Specialty Retail (continued)

     

Michaels Stores, Inc.

     

7.75%, 11/01/2018

     $  1,450,000         $  1,551,500   

11.38%, 11/01/2016

     658,000         685,972   

New Academy Finance Co. LLC /
New Academy Finance Corp.
8.00%, 06/15/2018 - 144A

     3,995,000         4,094,875   

Party City Holdings, Inc.
8.88%, 08/01/2020 - 144A

     2,320,000         2,488,200   

Petco Animal Supplies, Inc.
9.25%, 12/01/2018 - 144A

     3,325,000         3,582,687   

Petco Holdings, Inc.
8.50%, 10/15/2017 - 144A

     3,895,000         3,972,900   

Radio Systems Corp.
8.38%, 11/01/2019 - 144A

     1,160,000         1,235,400   

Sally Holdings LLC / Sally Capital, Inc.
5.75%, 06/01/2022

     4,135,000         4,197,025   

Textiles, Apparel & Luxury Goods - 0.5%

     

Levi Strauss & Co.
6.88%, 05/01/2022

     1,075,000         1,166,375   

PVH Corp.
7.75%, 11/15/2023

     2,795,000         3,224,469   

Trading Companies & Distributors - 1.6%

     

International Lease Finance Corp.

     

8.25%, 12/15/2020

     2,775,000         3,118,406   

8.63%, 09/15/2015 - 01/15/2022

     3,045,000         3,450,050   

8.75%, 03/15/2017

     2,455,000         2,734,256   

International Lease Finance Corp., Series MTN
5.65%, 06/01/2014

     510,000         518,925   

Rexel SA
5.25%, 06/15/2020 - 144A

     2,465,000         2,458,837   

United Rentals North America, Inc.
8.38%, 09/15/2020

     475,000         514,188   

Wireless Telecommunication Services - 5.1%

  

   

Crown Castle International Corp.
5.25%, 01/15/2023

     1,910,000         1,833,600   

Digicel Group, Ltd.
10.50%, 04/15/2018 - 144A

     1,045,000         1,107,700   

Digicel, Ltd.
8.25%, 09/01/2017 - 144A

     2,574,000         2,676,960   

iPCS, Inc.
3.52%, 05/01/2014 (E)

     880,000         880,000   

MetroPCS Wireless, Inc.

     

6.25%, 04/01/2021 - 144A

     3,575,000         3,637,562   

6.63%, 04/01/2023 - 144A

     5,365,000         5,458,887   

NII International Telecom SCA
7.88%, 08/15/2019 - 144A

     1,895,000         1,795,513   

SBA Communications Corp.
5.63%, 10/01/2019 - 144A

     1,110,000         1,098,900   

Softbank Corp.
4.50%, 04/15/2020 - 144A

     4,700,000         4,529,625   

Sprint Nextel Corp.

     

6.00%, 12/01/2016 - 11/15/2022

     9,045,000         8,927,100   

7.00%, 08/15/2020

     1,240,000         1,302,000   

9.00%, 11/15/2018 - 144A

     6,075,000         7,107,750   

9.13%, 03/01/2017

     995,000         1,144,250   
    

 

 

  

Total Corporate Debt Securities (cost $684,574,309)

  

      698,270,774   
    

 

 

  
     Principal      Value  

CONVERTIBLE BONDS - 0.3%

     

Hotels, Restaurants & Leisure - 0.3%

     

NCL Corp., Ltd.
5.00%, 02/15/2018 - 144A

     $  810,000         $  793,800   

Regal Cinemas Corp.
8.63%, 07/15/2019

     1,330,000         1,419,775   

Independent Power Producers & Energy Traders - 0.0%

  

   

Mirant Corp. (Escrow Certificates)
Series 4, Class A
2.50%, 06/15/2021 (D)

     1,220,000         0   

Media - 0.0% (F)

  

   

Mood Media Corp.
Series 1
10.00%, 10/31/2015 (B) (D) (G)

     7,000         3,878   
    

 

 

  

Total Convertible Bonds (cost $2,201,262)

  

      2,217,453   
    

 

 

  

LOAN ASSIGNMENTS - 5.6%

     

Aerospace & Defense - 0.2%

     

Sequa Corp., Tranche B
5.25%, 06/19/2017 (E)

     1,592,000         1,596,975   

Chemicals - 0.6%

     

Ineos US Finance LLC
4.00%, 05/04/2018 (E)

     3,931,364         3,856,834   

Tronox Pigments BV
—, 03/19/2020 (H)

     1,100,000         1,103,732   

Diversified Consumer Services - 0.1%

     

Education Management LLC, Extended
4.31%, 06/01/2016 (E)

     1,193,449         1,039,793   

Diversified Financial Services - 0.5%

     

Alixpartners LLP, 2nd Lien
10.75%, 12/27/2019 (E)

     2,300,000         2,328,750   

Nuveen Investments, Inc., 2nd Lien
—, 02/28/2019 (H)

     1,700,000         1,680,875   

Electric Utilities - 0.2%

     

Texas Competitive Electric Holdings Co. LLC, Extended
4.72%, 10/10/2017 (E)

     2,490,000         1,738,643   

Food Products - 0.1%

     

Hostess Brands, Inc. Term Loan
6.75%, 03/06/2020 (E)

     700,000         711,375   

Hotels, Restaurants & Leisure - 0.5%

     

Seven Seas Cruises S de RL LLC, Tranche B
4.75%, 12/21/2018 (E)

     2,587,250         2,579,165   

WMG Acquisition Corp., Delayed Draw -,
07/01/2020 (H)

     1,700,000         1,683,000   

Household Products - 0.3%

     

Sun Products Corp.
5.50%, 03/23/2020 (E)

     2,793,000         2,755,761   

Insurance - 0.7%

     

Asurion LLC, Tranche B1
Series 2000-LB1, Class AF5
4.75%, 07/18/2017 (E)

     906,250         898,698   

Lone Star Intermediate Super Holdings LLC, Tranche B
11.00%, 09/02/2019 (E)

     4,300,000         4,493,500   

Media - 0.2%

     

McGraw-Hill Global Education Holdings LLC, Term Loan
9.00%, 03/22/2019 (E)

     1,795,500         1,767,221   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    37

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Metals & Mining - 0.8%

     

FMG Resources August 2006 Pty, Ltd.
5.25%, 10/18/2017 (E)

     $  6,163,425         $  6,122,333   

Multiline Retail - 0.6%

     

J C Penney Corp., Inc. Term Loan
6.00%, 05/21/2018 (E)

     4,500,000         4,500,000   

Oil, Gas & Consumable Fuels - 0.3%

     

EP Energy LLC Tranche B3
3.50%, 05/24/2018 (E)

     2,500,000         2,482,812   

Pharmaceuticals - 0.3%

     

Aptalis Pharma, Inc., Tranche B
Series 2010-3A, Class A
5.50%, 02/10/2017 (E)

     2,340,000         2,332,688   

Transportation Infrastructure - 0.2%

     

CEVA Logistics US Holdings, Inc., Extended
5.28%, 08/31/2016 (E)

     1,493,068         1,396,019   

CEVA Logistics US Holdings, Inc., Extended Synthetic
5.28%, 08/31/2016 (E)

     535,304         497,832   
    

 

 

  

Total Loan Assignments (cost $45,294,544)

  

      45,566,006   
    

 

 

  

STRUCTURED NOTES DEBT - 0.5%

     

Diversified Consumer Services - 0.1%

     

Education Management LLC / Education Management Finance Corp.
15.00%, 07/01/2018 - 144A (I)

     1,131,134         1,173,552   

Media - 0.4%

     

Catalina Marketing Corp.
Series 2005-1A, Class A2
11.63%, 10/01/2017 - 144A (A) (B) (I)

     2,828,000         2,969,400   
    

 

 

  

Total Structured Notes Debt (cost $3,977,365)

  

      4,142,952   
    

 

 

  
     Shares      Value  

CONVERTIBLE PREFERRED STOCKS - 1.2%

  

   

Electronic Equipment & Instruments - 0.4%

  

   

Lucent Technologies Capital Trust I, 7.75% (J)

     3,680         3,514,400   

Health Care Equipment & Supplies - 0.3%

  

   

Alere, Inc. - Series B, 3.00% (J) (K)

     11,750         2,667,132   

Oil, Gas & Consumable Fuels - 0.5%

     

Chesapeake Energy Corp., 4.50% (J) (K)

     12,015         1,075,583   

Chesapeake Energy Corp. 144A, 5.75% (J) (K)

     2,780         2,880,775   
    

 

 

  

Total Convertible Preferred Stocks (cost $10,287,918)

  

      10,137,890   
    

 

 

  

PREFERRED STOCK - 0.3%

     

Commercial Banks - 0.3%

     

GMAC Capital Trust I - Series 2, 8.13% (E)

     87,120         2,269,476   
    

 

 

  

Total Preferred Stock (cost $2,199,626)

  

      2,269,476   
    

 

 

  

COMMON STOCKS - 0.3%

     

Airlines - 0.0% (F)

     

Delta Air Lines, Inc. (J)

     13,451         251,668   

Building Products - 0.3%

     

Panolam Holdings Co. - GDR (B) (D) (G) (J)

     1,803         2,366,780   

Hotels, Restaurants & Leisure - 0.0% (F)

     

Greektown Superholdings, Inc. (J)

     1,131         1   

Independent Power Producers & Energy Traders - 0.0%

  

Mirant Corp. (Escrow Certificates) (D) (J)

     550,000         0   
     Shares      Value  

Media - 0.0% (F)

     

New Cotai LLC / New Cotai Capital Corp. - Class B (D) (J)

     6         $  185,250   
    

 

 

  

Total Common Stocks (cost $3,796,845)

  

      2,803,699   
    

 

 

  

RIGHT - 0.1%

  

Hotels, Restaurants & Leisure - 0.1%

     

BLB Contingent Value Rights (B) (G) (J)

     2,010         934,650   
    

 

 

  

Total Right (cost $2,010,000)

  

      934,650   
    

 

 

  

WARRANTS - 0.0% (F)

     

Food Products - 0.0% (F)

     

American Seafoods Group LLC (J)
Expiration: 05/15/2018
Exercise Price: $0.01

     1,265         189,750   

Media - 0.0%

     

Reader’s Digest Association, Inc. (D) (J)
Expiration: 02/19/2014
Exercise Price: $47.35

     13,112         0   

Oil, Gas & Consumable Fuels - 0.0% (F)

  

   

SemGroup Corp. (J)
Expiration: 11/30/2014
Exercise Price: $25.0

     8,130         182,600   
    

 

 

  

Total Warrants (cost $81)

  

      372,350   
    

 

 

  

INVESTMENT COMPANY - 0.0%

     

Diversified Financial Services - 0.0%

     

Adelphia Recovery Trust - Series ACC1 (D)

     2,697,805         0   
    

 

 

  

Total Investment Company (cost $2,633,431)

  

      0   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 4.8%

     

State Street Bank & Trust Co.
0.03% (L), dated 06/28/2013, to be repurchased at $39,143,047 on 07/01/2013. Collateralized by U.S. Government Agency Obligations,
3.00% - 3.50%, due 11/15/2040 - 05/01/2041, and with a total value of $39,928,073.

     $  39,142,949         39,142,949   
    

 

 

  

Total Repurchase Agreement (cost $39,142,949)

  

      39,142,949   
    

 

 

  
    

Total Investment Securities (cost $796,118,330) (M)

  

      805,858,199   

Other Assets and Liabilities - Net

        11,974,742   
    

 

 

  

Net Assets

       $  817,832,941   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    38

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) Payment in-kind. Securities pay interest or dividends in the form of additional bonds or preferred stock. If a security makes cash payment in addition to in-kind, the cash rate is disclosed separately.
(B) Illiquid. Total aggregate market value of illiquid securities is $13,630,146 or 1.67% of the portfolio’s net assets.
(C) In default.
(D) Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate market value of fair valued securities is $3,425,335, or 0.42% of the portfolio’s net assets.
(E) Floating or variable rate note. Rate is listed as of June 30, 2013.
(F) Percentage rounds to less than 0.1%.
(G) Restricted security. At June 30, 2013, the portfolio owned the respective securities which were restricted as to public resale:

 

Investment Securities    Description    Acquisition
Date		      Cost        Value        Value as % of
Net Assets		  

Convertible Bonds

   

Mood Media Corp. - Series 1

      07/30/2012       $ 1,774         $ 3,878           0.00 % (N) 

Common Stocks

   

Panolam Holdings Co.

      11/29/2009         3,079,799           2,366,780           0.29   

Right

   

BLB Contingent Value Rights

      11/22/2010         2,010,000           934,650           0.11   
        

 

 

       

 

 

       

 

 

  
         $   5,091,573         $   3,305,308           0.40 % 
        

 

 

       

 

 

       

 

 

  

 

(H) All or portion of this security represents unsettled loan commitment at June 30, 2013 where the rate will be determined at time of settlement.
(I) Step bond - Coupon rate changes in increments to maturity. Rate disclosed is as of June 30, 2013. Maturity date disclosed is the ultimate maturity date.
(J) Non-income producing security.
(K) The security has a perpetual maturity. The date shown is the next call date.
(L) Rate shown reflects the yield at June 30, 2013.
(M)  Aggregate cost for federal income tax purposes is $796,118,330. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $27,760,022 and $18,020,153, respectively. Net unrealized appreciation for tax purposes is $9,739,869.
(N) Percentage rounds to less than 0.01%.

DEFINITIONS:

 

144A    144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2013, these securities aggregated $322,611,409, or 39.45% of the portfolio’s net assets.
GDR    Global Depositary Receipt
MTN    Medium Term Note

VALUATION SUMMARY: (O)

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant

Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Corporate Debt Securities

                                

Aerospace & Defense

   $ —      $ 8,896,250      $ —      $ 8,896,250   

Air Freight & Logistics

     —        2,094,660        —        2,094,660   

Auto Components

     —        4,147,510        —        4,147,510   

Automobiles

     —        3,107,056        —        3,107,056   

Beverages

     —        4,005,431        —        4,005,431   

Biotechnology

     —        3,410,640        —        3,410,640   

Building Products

     —        7,994,688        —        7,994,688   

Capital Markets

     —        1,125,400        —        1,125,400   

Chemicals

     —        18,637,425        —        18,637,425   

Commercial Banks

     —        2,048,025        —        2,048,025   

Commercial Services & Supplies

     —        20,686,775        —        20,686,775   

Communications Equipment

     —        8,623,022        —        8,623,022   

Computers & Peripherals

     —        4,015,325        —        4,015,325   

Consumer Finance

     —        12,192,828        —        12,192,828   

Containers & Packaging

     —        10,078,231        —        10,078,231   

Distributors

     —        5,001,075        —        5,001,075   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    39

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY (continued):

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant

Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

Diversified Consumer Services

   $ —      $ 9,351,800      $ —      $ 9,351,800   

Diversified Financial Services

     —        12,810,620        —        12,810,620   

Diversified Telecommunication Services

     —        38,882,228        —        38,882,228   

Electric Utilities

     —        2,054,900        —        2,054,900   

Electrical Equipment

     —        1,789,050        —        1,789,050   

Energy Equipment & Services

     —        23,831,775        —        23,831,775   

Food & Staples Retailing

     —        3,527,982        —        3,527,982   

Food Products

     —        9,077,560        —        9,077,560   

Gas Utilities

     —        7,927,188        —        7,927,188   

Health Care Equipment & Supplies

     —        28,247,551        —        28,247,551   

Health Care Providers & Services

     —        28,936,022        —        28,936,022   

Health Care Technology

     —        1,887,463        —        1,887,463   

Hotels, Restaurants & Leisure

     —        56,934,868        869,427        57,804,295   

Household Durables

     —        5,412,114        —        5,412,114   

Household Products

     —        18,753,962        —        18,753,962   

Independent Power Producers & Energy Traders

     —        7,408,863        —        7,408,863   

Industrial Conglomerates

     —        2,489,800        —        2,489,800   

Insurance

     —        5,523,950        —        5,523,950   

Internet Software & Services

     —        1,193,500        —        1,193,500   

IT Services

     —        3,181,938        —        3,181,938   

Life Sciences Tools & Services

     —        4,497,350        —        4,497,350   

Machinery

     —        8,137,288        —        8,137,288   

Media

     —        44,950,692        —        44,950,692   

Metals & Mining

     —        18,529,325        —        18,529,325   

Oil, Gas & Consumable Fuels

     —        75,206,850        —        75,206,850   

Paper & Forest Products

     —        4,347,952        —        4,347,952   

Pharmaceuticals

     —        10,564,800        —        10,564,800   

Professional Services

     —        10,299,937        —        10,299,937   

Real Estate Investment Trusts

     —        373,450        —        373,450   

Real Estate Management & Development

     —        2,605,850        —        2,605,850   

Road & Rail

     —        3,555,310        —        3,555,310   

Semiconductors & Semiconductor Equipment

     —        1,002,375        —        1,002,375   

Software

     —        18,016,287        —        18,016,287   

Specialty Retail

     —        51,341,053        —        51,341,053   

Textiles, Apparel & Luxury Goods

     —        4,390,844        —        4,390,844   

Trading Companies & Distributors

     —        12,794,662        —        12,794,662   

Wireless Telecommunication Services

     —        41,499,847        —        41,499,847   

Convertible Bonds

                                

Hotels, Restaurants & Leisure

     —        2,213,575        —        2,213,575   

Independent Power Producers & Energy Traders

     —        —        0        0   

Media

     —        —        3,878        3,878   

Loan Assignments

     —        45,566,006        —        45,566,006   

Structured Notes Debts

     —        4,142,952        —        4,142,952   

Convertible Preferred Stocks

     7,257,115        2,880,775        —        10,137,890   

Preferred Stock

     2,269,476        —        —        2,269,476   

Common Stocks

                                

Airlines

     251,668        —        —        251,668   

Building Products

     —        —        2,366,780        2,366,780   

Hotels, Restaurants & Leisure

     1        —        —        1   

Independent Power Producers & Energy Traders

     —        —        0        0   

Media

     —        —        185,250        185,250   

Right

     934,650        —        —        934,650   

Warrants

                                

Food Products

     189,750        —        —        189,750   

Media

     —        —        0        0   

Oil, Gas & Consumable Fuels

     182,600        —        —        182,600   

Investment Company

                                

Diversified Financial Services

     —        —        0        0   

Repurchase Agreement

     —        39,142,949        —        39,142,949   

Total Investment Securities

   $ 11,085,260      $ 791,347,604      $ 3,425,335      $ 805,858,199   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    40

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

 

(O)  Transfers between levels are considered to have occurred at the end of the reporting period. As of period ended June 30, 2013, securities with fair market value of $934,650 transferred from Level 2 to Level 1 due to availability of unadjusted quoted prices. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

Level 3 Rollforward - Investment Securities

 

Securities   Beginning
Balance at
December 31, 2012		     Purchases (P)     Sales (Q)     Accrued
Discounts
(Premiums)		    

Total

Realized

Gain (Loss)

     Net Change in
Unrealized
Appreciation
(Depreciation) (R)		     Transfers
into
Level 3		     Transfer
out of
Level 3		    

Ending
Balance at

June 30, 2013 (S)

     Net Change in
Unrealized
Appreciation
(Depreciation)
on Investments
Held at
June 30, 2013 (R)		  
Convertible Bonds   $ 7,252      $ —      $ —      $ 1,095      $ —      $ (4,469 )    $ —      $ —      $ 3,878      $ (4,469 ) 
Corporate Debt Securities     1,059,269        —        (196,733 )      (2,945 )      (2,124,177 )      2,134,013        —        —        869,427        5,984   
Common Stocks     3,182,619        185,250        —        —        —        (815,839 )      —        —        2,552,030        (815,839 ) 
Investment Company     0        —        —        —        —        —        —        —        0        —   
Preferred Corporate Debt     0        —        —        —        (3,758,574 )      3,758,574        —        —        —        —   
Warrants     0        —        —        —        —        —        —        —        0        —   

Total

   $   4,249,140      $   185,250      $   (196,733 )    $   (1,850 )    $   (5,882,751 )    $   5,072,279      $   —      $   —      $   3,425,335      $   (814,324 ) 

 

(P)  Purchases include all purchases of securities and securities received in corporate actions.
(Q) Sales include all sales of securities, maturities, paydowns and securities tendered in a corporate action.
(R) Any difference between Net Change in Unrealized Appreciation (Depreciation) and Net Change in Unrealized Appreciation (Depreciation) on Investments Held at June 30, 2013 may be due to an investment no longer held or categorized as Level 3 at period end.
(S)  Inputs used in the valuation of the Level 3 securities were not considered significant unobservable inputs.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    41

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 3.7%

  

   

U.S. Treasury Bond

     

2.75%, 11/15/2042

     $  5,000         $  4,311   

2.88%, 05/15/2043

     467,000         413,295   

3.13%, 02/15/2043

     820,000         765,419   

U.S. Treasury Inflation Indexed Bond
0.75%, 02/15/2042

     159,523         140,430   

U.S. Treasury Inflation Indexed Note
0.13%, 01/15/2023

     574,281         556,828   

U.S. Treasury Note

     

0.38%, 06/30/2015

     105,000         105,041   

1.38%, 06/30/2018

     350,000         349,808   

1.63%, 11/15/2022

     68,000         63,479   

1.75%, 05/15/2023

     1,880,000         1,760,737   
    

 

 

  

Total U.S. Government Obligations (cost $4,397,251)

  

      4,159,348   
    

 

 

  

U.S. GOVERNMENT AGENCY OBLIGATIONS - 16.8%

  

   

Fannie Mae

     

2.50%, 05/01/2028 - 06/01/2028

     70,027         70,542   

2.80%, 10/09/2019 (A)

     280,000         235,200   

2.95%, 03/01/2041 (B)

     49,906         52,094   

3.00%, 02/01/2028 - 06/01/2043

     1,879,238         1,842,096   

3.16%, 03/01/2041 (B)

     45,148         47,077   

3.27%, 12/01/2040 (B)

     50,948         53,194   

3.50%, 07/01/2027

     456,719         476,209   

3.50%, 09/01/2041 (B)

     67,523         70,668   

4.00%, 02/01/2025 - 10/01/2042

     618,102         649,533   

4.50%, 02/01/2025 - 08/01/2042

     960,717         1,018,440   

5.00%, 09/01/2033 - 05/01/2038

     967,954         1,044,662   

5.50%, 09/01/2036 - 08/01/2037

     322,004         352,758   

6.00%, 02/01/2038 - 12/01/2038

     124,167         136,326   

6.50%, 05/01/2040

     252,814         280,096   

Fannie Mae, IO
2.53%, 01/25/2022 (B)

    179,502         25,908   

Fannie Mae, TBA

     

2.50%

     400,000         401,438   

3.00%

     800,000         806,312   

3.50%

     740,000         750,684   

4.00%

     600,000         623,742   

4.50%

     300,000         317,262   

5.00%

     200,000         215,234   

5.50%

     100,000         108,547   

Farmer Mac Guaranteed Notes Trust
Series 2007-1
5.13%, 04/19/2017 - 144A

     350,000         398,424   

Freddie Mac

     

2.64%, 01/25/2023

     185,000         176,226   

2.68%, 10/25/2022

     80,000         76,675   

3.00%, 03/01/2043 - 04/01/2043

     976,660         953,436   

3.05%, 02/01/2041 (B)

     55,161         57,701   

4.50%, 10/01/2041

     419,702         441,896   

5.00%, 03/01/2038

     391,658         418,274   

Freddie Mac, IO

     

1.03%, 10/25/2022 (B)

     559,329         36,280   

1.65%, 06/25/2022 (B)

     378,868         39,385   

1.69%, 12/25/2018 (B)

     278,608         20,024   

1.91%, 05/25/2019 (B)

     219,198         19,096   

Freddie Mac, TBA

     

3.50%

     1,460,000         1,474,600   

4.00%

     400,000         415,078   
     Principal      Value  

U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)

  

Freddie Mac, TBA (continued)

     

4.50%

     $  100,000         $  105,297   

5.50%

     100,000         107,578   

FREMF Mortgage Trust

     

3.68%, 08/25/2045 - 144A (B)

     50,000         47,896   

3.78%, 10/25/2045 - 144A (B)

     40,000         36,099   

4.16%, 11/25/2044 - 144A (B)

     20,000         18,517   

Series 2013-K712, Class B

     

3.48%, 05/25/2045 - 144A (B)

     110,000         103,326   

Ginnie Mae

     

1.34%, 11/20/2059 (B)

     446,336         456,348   

4.00%, 02/20/2041 - 09/15/2042

     523,349         550,042   

4.50%, 05/20/2041 - 02/15/2042

     881,267         944,849   

5.00%, 12/15/2040

     95,302         103,166   

Ginnie Mae, IO
1.01%, 02/16/2053 (B)

     311,318         26,095   

Ginnie Mae, TBA

     

3.00%

     90,000         88,973   

3.50%

     600,000         615,750   

4.00%

     100,000         104,953   

4.50%

     200,000         212,211   

5.00%

     300,000         323,531   

5.50%

     200,000         217,734   

Resolution Funding Corp., Interest STRIPS

  

   

1.59%, 10/15/2018 (A)

     250,000         229,042   

1.81%, 07/15/2018 (A)

     250,000         229,350   

Tennessee Valley Authority
5.25%, 09/15/2039

     60,000         67,508   
    

 

 

  

Total U.S. Government Agency Obligations
(cost $18,789,525)

   

      18,693,382   
    

 

 

  

FOREIGN GOVERNMENT OBLIGATIONS - 1.3%

  

   

Argentine Republic Government International Bond
2.50%, 12/31/2038 (C)

     30,000         9,750   

Brazilian Government International Bond
7.13%, 01/20/2037

     25,000         29,750   

Italy Buoni Poliennali del Tesoro

     

3.75%, 04/15/2016

     EUR  615,000         827,355   

5.25%, 08/01/2017

     115,000         161,178   

Mexico Government International Bond
5.13%, 01/15/2020

     $180,000         197,820   

Poland Government International Bond Series 2013-NPL1, Class A
5.00%, 03/23/2022

     40,000         43,000   

Republic of South Africa
5.50%, 03/09/2020

     100,000         105,375   

Russian Federation
7.50%, 03/31/2030 - Reg S (C)

     93,125         109,073   
    

 

 

  

Total Foreign Government Obligations (cost $1,518,920)

  

      1,483,301   
    

 

 

  

MORTGAGE-BACKED SECURITIES - 5.3%

  

   

Adjustable Rate Mortgage Trust
Series 2004-2, Class 7A2
1.03%, 02/25/2035 (B)

     49,616         48,729   

Banc of America Large Loan, Inc.
Series 2010-UB4, Class A4A
5.03%, 12/20/2041 - 144A (B)

     99,126         102,437   

Banc of America Merrill Lynch Commercial Mortgage, Inc.

     

Series 2007-1, Class AMFX

     

5.48%, 01/15/2049 (B)

     10,000         10,455   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    42

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Banc of America Merrill Lynch Commercial Mortgage, Inc. (continued)

  

Series 2007-3, Class A4

     

5.86%, 06/10/2049 (B)

     $  60,000         $  67,185   

Series 2007-3, Class AM

     

5.86%, 06/10/2049 (B)

     55,000         59,480   

BB-UBS Trust
Series 2012-TFT, Class A
2.89%, 06/05/2030 - 144A

     100,000         93,917   

Bear Stearns Commercial Mortgage Securities
Series 2007-PW17, Class A3
5.74%, 06/11/2050

     90,021         93,620   

Bear Stearns Mortgage Funding Trust
Series 2006-AR5, Class 1A2
0.40%, 12/25/2046 (B)

     491,008         62,581   

Citigroup Commercial Mortgage Trust

     

0.80%, 01/12/2018

     1,313,433         41,599   

3.01%, 01/12/2018

     250,000         238,914   

Series 2005-C3, Class AJ

     

4.96%, 05/15/2043 (B)

     90,000         92,801   

Commercial Mortgage Pass-Through Certificates

  

   

Series 2006-C8, Class AM

     

5.35%, 12/10/2046

     55,000         59,587   

Series 2013-GAM, Class A2

     

3.37%, 02/10/2028 - 144A

     100,000         96,485   

Commercial Mortgage Pass-Through Certificates, IO

  

   

Series 2013-CR6, Class XA

     

1.71%, 03/10/2046 (B)

     727,966         59,786   

Series 2013-CR7, Class XA

     

1.77%, 03/10/2046 (B)

     500,546         50,993   

Series 2013-LC6, Class XA

     

1.96%, 01/10/2046 (B)

     775,743         79,641   

Commercial Mortgage Trust
Series 2007-GG11, Class A4
5.74%, 12/10/2049

     30,000         33,599   

Countrywide Alternative Loan Trust
Series 2007-22, Class 2A16
6.50%, 09/25/2037

     319,946         246,273   

Credit Suisse First Boston Mortgage
Securities Corp.
Series 2005-C3, Class AJ
4.77%, 07/15/2037

     10,000         10,339   

Credit Suisse Mortgage Capital Certificates

     

Series 2006-C3, Class AM

     

5.99%, 06/15/2038 (B)

     40,000         43,511   

Series 2010-RR1, Class 2A

     

5.70%, 09/15/2040 - 144A (B)

     90,000         100,953   

Series 2010-RR2, Class 2A

     

5.95%, 09/15/2039 - 144A (B)

     120,000         133,877   

DBRR Trust
Series 2012-EZ1, Class A
0.95%, 09/25/2045 - 144A

     191,180         191,556   

GE Capital Commercial Mortgage Corp.
Series 2007-C1, Class AAB
5.48%, 12/10/2049

     70,238         73,581   

GMAC Mortgage Corp., Loan Trust
Series 2005-AR1, Class 3A
3.43%, 03/18/2035 (B)

     334,878         317,293   

Greenwich Capital Commercial Funding Corp.

     

Series 2007-GG11, Class AM

     

5.87%, 12/10/2049 (B)

     35,000         37,494   

Series 2007-GG9, Class AM

     

5.48%, 03/10/2039

       25,000           26,279   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

GS Mortgage Securities Corp. II
Series 2013-KING, Class E
3.55%, 12/10/2027 - 144A (B)

     $  100,000         $  85,504   

GS Mortgage Securities Corp. II, IO

     

Series 2013-GC10, Class XA

     

1.93%, 02/10/2046 (B)

     994,971         111,975   

Series 2013-KYO, Class XB1

     

3.25%, 11/08/2029 - 144A (B)

     1,000,000         68,023   

GS Mortgage Securities Trust

     

Series 2006-GG8, Class AJ

     

5.62%, 11/10/2039

     45,000         42,264   

Series 2006-GG8, Class AM

     

5.59%, 11/10/2039

     20,000         21,698   

Impac CMB Trust
Series 2004-6, Class 1A1
0.99%, 10/25/2034 (B)

     145,792         123,288   

IndyMac INDA Mortgage Loan Trust
Series 2007-AR7, Class 1A1
3.21%, 09/25/2037 (B)

     271,681         240,040   

IndyMac Index Mortgage Loan Trust
Series 2007-AR15, Class 2A1
4.59%, 08/25/2037 (B)

     300,736         245,684   

JPMorgan Chase Commercial Mortgage Securities Corp.

     

Series 2004-CB8, Class A1A

     

4.16%, 01/12/2039 - 144A

     171,153         173,446   

Series 2006-CB14, Class AM

     

5.63%, 12/12/2044 (B)

     70,000         75,791   

Series 2006-LDP9, Class AM

     

5.37%, 05/15/2047

     20,000         21,102   

Series 2007-CB18, Class A3

     

5.45%, 06/12/2047

     31,911         32,735   

Series 2008-C2, Class ASB

     

6.13%, 02/12/2051 (B)

     162,100         173,848   

Series 2013-C10, Class C

     

4.30%, 12/15/2047 (B)

     17,778         16,501   

Series 2013-LC11, Class C

     

3.96%, 04/15/2046 (B)

     20,000         18,117   

LB-UBS Commercial Mortgage Trust

     

Series 2005-C2, Class AJ

     

5.21%, 04/15/2030 (B)

     40,000         41,995   

Series 2007-C7, Class A3

     

5.87%, 09/15/2045 (B)

     48,008         53,510   

Merrill Lynch Mortgage Investors Trust

     

Series 2003-F, Class A1

     

0.83%, 10/25/2028 (B)

     109,321         107,098   

Series 2004-A3, Class 4A3

     

5.07%, 05/25/2034 (B)

     89,230         87,728   

Merrill Lynch Mortgage Trust
Series 2005-CKI1, Class AJ
5.46%, 11/12/2037 (B)

     55,000         56,719   

Merrill Lynch/Countrywide Commercial Mortgage Trust
Series 2007-9, Class A4
5.70%, 09/12/2049

     200,000         224,002   

Morgan Stanley Capital I Trust

     

Series 2007-HQ12, Class A2FX

     

5.76%, 04/12/2049 (B)

     60,369         60,533   

Series 2007-HQ12, Class AM

     

5.76%, 04/12/2049 (B)

     85,000         90,474   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    43

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Morgan Stanley Capital I Trust (continued)

     

Series 2007-IQ13, Class AM

     

5.41%, 03/15/2044

     $  30,000         $  32,141   

Series 2007-IQ15, Class AM

     

6.09%, 06/11/2049 (B)

     60,000         64,604   

Morgan Stanley Capital I Trust, IO
Series 2012-C4, Class XA
2.87%, 03/15/2045 - 144A (B)

     501,174         66,447   

Morgan Stanley Re-REMIC Trust

     

Series 2011-IO, Class A

     

2.50%, 03/23/2051 - 144A

     45,740         46,154   

Series 2012-XA, Class A

     

2.00%, 07/27/2049 - 144A

     73,506         74,425   

Motel 6 Trust
Series 2012-MTL6, Class B
2.74%, 10/05/2025 - 144A

     140,000         137,048   

Queens Center Mortgage Trust
Series 2013-QCA, Class D
3.59%, 01/11/2037 - 144A (B)

     130,000         108,266   

S2 Hospitality LLC
Series 2012-LV1, Class A
4.50%, 04/15/2025 - 144A

     37,996         37,951   

STRIPs, Ltd.
Series 2012-1A, Class A
1.50%, 12/25/2044 - 144A

     82,727         81,817   

Structured Asset Mortgage Investments, Inc.
Series 2003-AR4, Class A1
0.89%, 01/19/2034 (B)

     206,655         197,499   

Wachovia Bank Commercial Mortgage Trust

     

Series 2007-C33, Class A4

     

6.12%, 02/15/2051

     240,000         266,983   

Series 2007-C33, Class AJ

     

6.12%, 02/15/2051 (B)

     65,000         61,508   

WF-RBS Commercial Mortgage Trust, IO
Series 2012-C10, Class XA
1.99%, 12/15/2045 - 144A (B)

     456,565         52,012   
    

 

 

  

Total Mortgage-Backed Securities (cost $6,354,447)

  

      5,871,895   
    

 

 

  

ASSET-BACKED SECURITIES - 5.4%

     

AmeriCredit Automobile Receivables Trust

     

Series 2011-5, Class C

     

3.44%, 10/08/2017

     40,000         41,431   

Series 2012-2, Class C

     

2.64%, 10/10/2017

     40,000         40,613   

Series 2012-3, Class C

     

2.42%, 05/08/2018

     40,000         40,491   

Series 2012-5, Class C

     

1.69%, 11/08/2018

     45,000         44,278   

AUTO Asset-Backed Securities Srl
Series 2012-2, Class A
2.80%, 04/27/2025 - Reg S

     EUR  73,519         96,585   

Avis Budget Rental Car Funding AESOP LLC
Series 2010-3A, Class A
4.64%, 05/20/2016 - 144A

     $100,000         105,763   

Ford Credit Auto Owner Trust
Series 2013-B, Class D
1.82%, 11/15/2019

     40,000         39,084   

Ford Credit Floorplan Master Owner Trust

     

Series 2010-5, Class C

     

2.07%, 09/15/2015 - 144A

     35,000         35,095   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

     

Ford Credit Floorplan Master Owner Trust (continued)

  

   

Series 2010-5, Class D

     

2.41%, 09/15/2015 - 144A

     $  15,000         $  15,060   

Series 2011-2, Class C

     

2.37%, 09/15/2015

     40,000         40,144   

Series 2011-2, Class D

     

2.86%, 09/15/2015

     30,000         30,159   

Series 2012-1, Class C

     

1.69%, 01/15/2016 (B)

     100,000         100,554   

Series 2012-1, Class D

     

2.29%, 01/15/2016 (B)

     100,000         100,830   

Series 2012-4, Class D

     

2.09%, 09/15/2016

     100,000         100,780   

Hertz Vehicle Financing LLC
Series 2009-2A, Class A2
5.29%, 03/25/2016 - 144A

     120,000         127,387   

HLSS Servicer Advance Receivables Backed Notes

  

   

Series 2012-T2, Class B2

     

2.48%, 10/15/2045 - 144A

     100,000         100,730   

Series 2013-T1, Class A2

     

1.50%, 01/16/2046 - 144A

     210,000         207,249   

Series 2013-T1, Class B1

     

1.25%, 01/15/2044 - 144A

     100,000         99,810   

Series 2013-T3, Class A3

     

1.79%, 05/15/2046 - 144A

     215,000         212,313   

Hyundai Auto Receivables Trust
Series 2012-A, Class D
2.61%, 05/15/2018

     30,000         30,517   

Nationstar Agency Advance Funding Trust

     

Series T2A, Class AT2

     

1.89%, 02/18/2048 - 144A

     110,000         106,205   

Series T2A, Class CT2

     

3.23%, 02/18/2048 - 144A

     150,000         150,621   

Nationstar Mortgage Advance Receivable Trust

     

Series 2013-T1A, Class A1

     

1.08%, 06/20/2044 - 144A

     120,000         119,871   

Series 2013-T2A, Class A2

     

1.68%, 06/20/2046 - 144A

     175,000         174,813   

Nelnet Student Loan Trust
Series 2008-3, Class A4
1.92%, 11/25/2024 (B)

     100,000         104,619   

PFS Financing Corp.

     

Series 2012-AA, Class A

     

1.39%, 02/15/2016 - 144A (B)

     100,000         100,373   

Series 2013-AA, Class B

     

1.29%, 02/15/2018 - 144A (B)

     100,000         99,496   

Prestige Auto Receivables Trust

     

Series 2011-1A, Class D

     

5.18%, 07/16/2018 - 144A

     100,000         104,084   

Series 2013-1A, Class A2

     

1.09%, 02/15/2018 - 144A

     100,000         99,773   

Santander Drive Auto Receivables Trust

     

Series 2011-S1A, Class B

     

1.48%, 07/15/2013 - 144A

     66,495         66,712   

Series 2012-1, Class B

     

2.72%, 05/16/2016

     25,000         25,451   

Series 2012-1, Class C

     

3.78%, 11/15/2017

     35,000         36,333   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    44

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

     

Santander Drive Auto Receivables Trust (continued)

  

   

Series 2012-3, Class B

     

1.94%, 12/15/2016

     $  85,000         $  85,749   

Series 2012-3, Class C

     

3.01%, 04/16/2018

     110,000         112,970   

Series 2012-4, Class C

     

2.94%, 12/15/2017

     20,000         20,322   

Series 2012-5, Class B

     

1.56%, 08/15/2018

     55,000         55,438   

Series 2012-5, Class C

     

2.70%, 08/15/2018

     25,000         25,157   

Series 2012-6, Class B

     

1.33%, 05/15/2017

     45,000         45,194   

Series 2012-6, Class C

     

1.94%, 03/15/2018

     30,000         29,780   

Series 2012-AA, Class B

     

1.21%, 10/16/2017 - 144A

     120,000         119,901   

Series 2012-AA, Class C

     

1.78%, 11/15/2018 - 144A

     220,000         215,633   

Series 2013-2, Class B

     

1.33%, 03/15/2018

     120,000         119,577   

Series 2013-2, Class C

     

1.95%, 03/15/2019

     190,000         185,689   

Series 2013-3, Class B

     

1.19%, 05/15/2018

     105,000         104,073   

Scholar Funding Trust

     

Series 2011-A, Class A

     

1.18%, 10/28/2043 - 144A (B)

     107,853         106,328   

Series 2013-A, Class A

     

0.84%, 01/30/2045 - 144A (B)

     206,050         204,555   

SLC Private Student Loan Trust
Series 2006-A, Class A5
0.45%, 07/15/2036 (B)

     125,000         120,806   

SLM Student Loan Trust

     

Series 2004-B, Class A2

     

0.47%, 06/15/2021 (B)

     212,509         208,314   

Series 2012-A, Class A1

     

1.59%, 08/15/2025 - 144A (B)

     71,509         72,271   

Series 2012-A, Class A2

     

3.83%, 01/17/2045 - 144A

     100,000         106,306   

Series 2012-C, Class A1

     

1.29%, 08/15/2023 - 144A (B)

     72,591         72,987   

Series 2012-C, Class A2

     

3.31%, 10/15/2046 - 144A

     135,000         139,690   

Series 2012-D, Class A2

     

2.95%, 02/15/2046 - 144A

     160,000         164,171   

Series 2012-E, Class A1

     

0.94%, 10/16/2023 - 144A (B)

     81,529         81,590   

Series 2013-A, Class A2A

     

1.77%, 05/17/2027 - 144A

     170,000         160,877   

Series 2013-A, Class A2B

     

1.24%, 05/17/2027 - 144A (B)

     150,000         146,777   

SpringCastle America Funding LLC
Series 2013-1A, Class A
3.75%, 04/03/2021 - 144A

     231,684         231,800   

World Financial Network Credit Card Master Trust

  

   

Series 2012-C, Class A

     

2.23%, 08/15/2022

     110,000         109,405   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

     

World Financial Network Credit Card Master Trust (continued)

  

Series 2012-D, Class A

     

2.15%, 04/17/2023

     $  145,000         $  140,648   
    

 

 

  

Total Asset-Backed Securities (cost $5,992,888)

  

      5,983,232   
    

 

 

  

MUNICIPAL GOVERNMENT OBLIGATIONS - 0.1%

  

   

New York City Water & Sewer System

     

5.38%, 06/15/2043

     45,000         48,566   

5.50%, 06/15/2043

     55,000         60,018   
    

 

 

  

Total Municipal Government Obligations (cost $98,594)

  

      108,584   
    

 

 

  

PREFERRED CORPORATE DEBT SECURITIES - 0.1%

  

   

Capital Markets - 0.0% (D)

     

State Street Capital Trust IV
1.27%, 06/15/2037 (B)

     10,000         8,108   

Commercial Banks - 0.1%

     

Fifth Third Capital Trust IV
6.50%, 04/15/2037 (B) (E)

     65,000         64,756   

Diversified Financial Services - 0.0% (D)

     

Lehman Brothers Holdings Capital Trust VII,
Series MTN
5.86%, 08/01/2013 (F) (G) (H) (I)

     200,000         40   

Lehman Brothers Holdings E-Capital Trust I
3.59%, 08/19/2065 (F) (H) (I)

     120,000         24   
    

 

 

  

Total Preferred Corporate Debt Securities (cost $339,002)

  

      72,928   
    

 

 

  

CORPORATE DEBT SECURITIES - 9.5%

     

Auto Components - 0.0% (D)

     

BorgWarner, Inc.
4.63%, 09/15/2020

     30,000         31,509   

Automobiles - 0.0%

     

General Motors Corp. (Escrow Shares)
8.25%, 07/15/2023 (H)

     453,000         0   

Capital Markets - 0.4%

     

Goldman Sachs Group, Inc.

     

3.63%, 01/22/2023 (E)

     105,000         100,461   

5.75%, 01/24/2022

     79,000         87,138   

Morgan Stanley

     

2.13%, 04/25/2018

     105,000         100,489   

3.80%, 04/29/2016

     100,000         104,006   

Chemicals - 0.1%

     

LyondellBasell Industries NV
5.00%, 04/15/2019

     60,000         65,286   

Commercial Banks - 0.4%

     

Caixa Economica Federal
2.38%, 11/06/2017 - 144A

     150,000         138,375   

Glitnir Banki HF
6.33%, 07/28/2011 - 144A (F)

     160,000         46,000   

HSBC Bank Brasil SA - Banco Multiplo
4.00%, 05/11/2016 - 144A

     200,000         205,000   

Landsbanki Islands HF
6.10%, 08/25/2011 - 144A (F) (I)

     140,000         10,850   

Commercial Services & Supplies - 0.1%

     

United Rentals North America, Inc.
7.63%, 04/15/2022

     100,000         108,250   

Communications Equipment - 0.0% (D)

     

CC Holdings GS V LLC / Crown Castle
GS III Corp.
3.85%, 04/15/2023 (E)

     47,000         44,319   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    45

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Consumer Finance - 0.0% (D)

     

SLM Corp,
Series MTN
4.63%, 09/25/2017

     $  11,000         $  10,835   

Containers & Packaging - 0.2%

     

Ardagh Packaging Finance PLC / Ardagh MP Holdings USA, Inc.
7.00%, 11/15/2020 - 144A (E)

     200,000         192,750   

Rock Tenn Co.

     

3.50%, 03/01/2020

     21,000         20,549   

4.00%, 03/01/2023 (E)

     50,000         48,177   

Distributors - 0.1%

     

Glencore Funding LLC
2.50%, 01/15/2019 - 144A

     90,000         81,424   

Diversified Financial Services - 1.9%

     

Bank of America Corp.

     

2.00%, 01/11/2018

     230,000         222,781   

3.88%, 03/22/2017

     37,000         38,751   

5.20%, 06/01/2023 (B) (E) (G)

     49,000         46,060   

5.70%, 01/24/2022

     158,000         175,387   

6.50%, 08/01/2016

     30,000         33,823   

Bank of America Corp.,
Series GMTN
5.65%, 05/01/2018

     315,000         349,959   

Bank of America Corp.,
Series MTN
3.30%, 01/11/2023

     45,000         42,532   

Citigroup, Inc.

     

4.45%, 01/10/2017

     30,000         32,124   

4.50%, 01/14/2022 (E)

     70,000         72,928   

4.59%, 12/15/2015

     401,000         428,242   

5.35%, 05/15/2023 (B) (G)

     25,000         23,438   

Ford Motor Credit Co., LLC

     

5.00%, 05/15/2018

     200,000         213,285   

6.63%, 08/15/2017

     100,000         113,179   

JPMorgan Chase & Co.

     

3.20%, 01/25/2023 (E)

     70,000         66,451   

3.25%, 09/23/2022

     29,000         27,533   

5.15%, 05/01/2023 (B) (E) (G)

     33,000         31,432   

Kaupthing Bank Hf

     

7.13%, 05/19/2016 - 144A (F) (H)

     130,000         0   

7.63%, 02/28/2015 - 144A (F)

     710,000         166,850   

Lehman Brothers Holdings Prod (Escrow shares)
1.00%, 02/06/2049 - 144A (I)

     100,000         24,375   

Lehman Brothers Holdings, Inc.
(Escrow shares)
6.75%, 12/28/2017 (H) (I)

     480,000         0   

Diversified Telecommunication Services - 0.3%

  

   

AT&T, Inc.
5.35%, 09/01/2040

     40,000         40,474   

Intelsat Jackson Holdings SA
7.25%, 04/01/2019 (E)

     54,000         56,497   

Sprint Capital Corp.
6.88%, 11/15/2028

     24,000         23,040   

Verizon Communications, Inc.
3.85%, 11/01/2042 (E)

     167,000         138,567   

Virgin Media Secured Finance PLC
6.50%, 01/15/2018

     100,000         102,750   
     Principal      Value  

Electric Utilities - 1.0%

  

   

Cleveland Electric Illuminating Co.

     

5.95%, 12/15/2036 (E)

     $  37,000         $  39,961   

8.88%, 11/15/2018

     7,000         9,100   

Duke Energy Carolinas LLC
4.25%, 12/15/2041 (E)

     50,000         46,585   

Energy Future Intermediate Holding Co.
LLC / EFIH Finance, Inc.
10.00%, 12/01/2020

     336,000         367,920   

Georgia Power Co.
3.00%, 04/15/2016

     100,000         104,647   

Hydro-Quebec

     

8.05%, 07/07/2024

     240,000         330,079   

8.40%, 01/15/2022

     95,000         129,097   

Jersey Central Power & Light Co.
7.35%, 02/01/2019

     30,000         36,223   

Trans-Allegheny Interstate Line Co.
4.00%, 01/15/2015 - 144A

     30,000         31,159   

Energy Equipment & Services - 0.5%

     

DCP Midstream LLC
5.85%, 05/21/2043 - 144A (B) (E)

     10,000         9,600   

Enterprise Products Operating LLC
4.45%, 02/15/2043 (E)

     30,000         26,630   

Noble Holding International, Ltd.
5.25%, 03/15/2042 (E)

     45,000         40,306   

Transocean, Inc.

     

2.50%, 10/15/2017 (E)

     100,000         98,824   

5.05%, 12/15/2016

     60,000         65,245   

6.00%, 03/15/2018

     157,000         175,941   

6.50%, 11/15/2020 (E)

     80,000         90,049   

Food & Staples Retailing - 0.0% (D)

     

Wal-Mart Stores, Inc.
4.00%, 04/11/2043 (E)

     50,000         45,559   

Food Products - 0.0% (D)

     

Mondelez International, Inc.
6.50%, 08/11/2017

     35,000         40,693   

Health Care Equipment & Supplies - 0.1%

     

Boston Scientific Corp.
6.25%, 11/15/2015

     138,000         152,732   

Health Care Providers & Services - 0.2%

     

Coventry Health Care, Inc.
5.45%, 06/15/2021

     56,000         62,376   

Tenet Healthcare Corp.
6.25%, 11/01/2018

     55,000         57,888   

UnitedHealth Group, Inc.
3.38%, 11/15/2021

     15,000         14,953   

WellPoint, Inc.

     

1.88%, 01/15/2018 (E)

     65,000         63,644   

3.70%, 08/15/2021

     8,000         8,066   

Insurance - 0.9%

     

Allianz Finance II BV, Series EMTN
5.75%, 07/08/2041 (B)

     EUR  100,000         143,782   

American International Group, Inc.

     

3.80%, 03/22/2017 (E)

     $  106,000         111,122   

4.88%, 06/01/2022 (E)

     60,000         63,955   

8.18%, 05/15/2058 (B)

     35,000         42,700   

American International Group, Inc.,
Series GMTN
5.45%, 05/18/2017

     45,000         49,605   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    46

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Insurance (continued)

     

AXA SA, Series EMTN
5.25%, 04/16/2040 (B)

     EUR  50,000         $  66,343   

Manulife Financial Corp.
3.40%, 09/17/2015

     $  50,000         52,239   

Metropolitan Life Global Funding I
5.13%, 06/10/2014 - 144A

     100,000         104,308   

Prudential Financial, Inc.

     

5.20%, 03/15/2044 (B) (E)

     5,000         4,725   

5.88%, 09/15/2042 (B)

     48,000         48,120   

Prudential Financial, Inc.,
Series MTN

     

4.75%, 09/17/2015

     66,000         71,020   

5.38%, 06/21/2020

     120,000         134,525   

Swiss Re Capital I LP
6.85%, 05/25/2016 - 144A (B) (G)

     70,000         72,275   

XL Group PLC
6.50%, 04/15/2017 (B) (E) (G)

     80,000         78,000   

Life Sciences Tools & Services - 0.0% (D)

     

Life Technologies Corp.
6.00%, 03/01/2020

     40,000         45,063   

Media - 0.7%

     

CBS Corp.

     

4.63%, 05/15/2018 (E)

     20,000         21,666   

5.75%, 04/15/2020

     16,000         18,148   

8.88%, 05/15/2019

     30,000         38,662   

Comcast Corp.

     

4.65%, 07/15/2042 (E)

     115,000         110,277   

5.88%, 02/15/2018

     99,000         115,584   

COX Communications, Inc.

     

3.25%, 12/15/2022 - 144A

     59,000         55,509   

4.70%, 12/15/2042 - 144A (E)

     3,000         2,661   

8.38%, 03/01/2039 - 144A

     95,000         128,758   

NBCUniversal Media LLC

     

4.38%, 04/01/2021

     97,000         104,633   

4.45%, 01/15/2043

     40,000         37,341   

5.15%, 04/30/2020

     52,000         59,201   

Time Warner Cable, Inc.
4.50%, 09/15/2042

     35,000         27,142   

Metals & Mining - 0.2%

     

Freeport-McMoRan Copper & Gold, Inc.

     

3.10%, 03/15/2020 - 144A

     60,000         55,459   

5.45%, 03/15/2043 - 144A

     40,000         35,274   

Novelis, Inc.
8.75%, 12/15/2020

     110,000         117,975   

Multi-Utilities - 0.2%

     

Dominion Resources, Inc.
1.95%, 08/15/2016

     70,000         71,397   

MidAmerican Energy Holdings Co.
5.95%, 05/15/2037

     140,000         155,543   

Multiline Retail - 0.0% (D)

  

   

Macy’s Retail Holdings, Inc.
7.45%, 07/15/2017

     38,000         45,476   

Oil, Gas & Consumable Fuels - 1.2%

  

   

Anadarko Petroleum Corp.
5.95%, 09/15/2016

     93,000         104,316   

Energy Transfer Partners, LP

     

3.60%, 02/01/2023

       50,000           46,794   

6.50%, 02/01/2042

     40,000         42,657   
     Principal      Value  

Oil, Gas & Consumable Fuels (continued)

  

   

Laredo Petroleum, Inc.
7.38%, 05/01/2022 (E)

     $  60,000         $  63,000   

Linn Energy LLC / Linn Energy Finance Corp.
6.25%, 11/01/2019 - 144A

     80,000         76,200   

MEG Energy Corp.

     

6.38%, 01/30/2023 - 144A (E)

     20,000         19,400   

6.50%, 03/15/2021 - 144A

     110,000         109,037   

Murphy Oil Corp.

     

2.50%, 12/01/2017 (E)

     73,000         71,999   

3.70%, 12/01/2022

     89,000         82,559   

4.00%, 06/01/2022

     15,000         14,328   

Nexen, Inc.

     

5.88%, 03/10/2035

     10,000         10,449   

6.40%, 05/15/2037 (E)

     55,000         59,779   

7.50%, 07/30/2039

     95,000         116,021   

Noble Energy, Inc.
6.00%, 03/01/2041

     40,000         45,064   

Peabody Energy Corp.
6.25%, 11/15/2021 (E)

     45,000         43,425   

Petrobras International Finance Co. - Pifco
3.88%, 01/27/2016

     160,000         164,612   

Plains Exploration & Production Co.
6.50%, 11/15/2020

     46,000         48,769   

Range Resources Corp.
5.75%, 06/01/2021

     10,000         10,300   

SemGroup, LP (Escrow Shares)
8.75%, 11/15/2049 (B)

     25,000         500   

Western Gas Partners, LP

     

4.00%, 07/01/2022

     31,000         30,092   

5.38%, 06/01/2021 (E)

     100,000         107,306   

Williams Cos., Inc.

     

3.70%, 01/15/2023 (E)

     15,000         13,936   

7.88%, 09/01/2021

     53,000         63,980   

Paper & Forest Products - 0.1%

     

International Paper Co.
4.75%, 02/15/2022 (E)

     120,000         126,275   

Pharmaceuticals - 0.0% (D)

     

Teva Pharmaceutical Finance Co., BV
3.65%, 11/10/2021

     25,000         25,002   

Real Estate Investment Trusts - 0.1%

     

Ventas Realty, LP / Ventas Capital Corp.

     

2.70%, 04/01/2020

     17,000         16,074   

4.75%, 06/01/2021

     35,000         36,769   

Vornado Realty, LP
5.00%, 01/15/2022

     50,000         52,484   

Real Estate Management & Development - 0.1%

  

   

Realogy Corp.
7.88%, 02/15/2019 - 144A (E)

     55,000         58,025   

Road & Rail - 0.1%

     

Burlington Northern Santa Fe LLC
3.00%, 03/15/2023

     73,000         69,564   

Specialty Retail - 0.1%

     

QVC, Inc.
7.50%, 10/01/2019 - 144A

     45,000         48,924   

Wireless Telecommunication Services - 0.5%

  

   

America Movil SAB de CV
3.13%, 07/16/2022 (E)

       200,000           184,279   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    47

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

Wireless Telecommunication Services - 0.5%

  

   

Crown Castle Towers LLC
6.11%, 01/15/2020 - 144A

     $  200,000         $  229,495   

MetroPCS Wireless, Inc.
7.88%, 09/01/2018

     4,000         4,260   

SBA Tower Trust
5.10%, 04/17/2017 - 144A

     40,000         43,748   

Sprint Nextel Corp.
9.00%, 11/15/2018 - 144A

     95,000         111,150   
    

 

 

  

Total Corporate Debt Securities (cost $11,541,685)

  

      10,552,213   
    

 

 

  

SHORT-TERM U.S. GOVERNMENT OBLIGATION - 0.1%

  

   

U.S. Treasury Bill
0.07%, 11/14/2013 (A) (J)

     115,000         114,970   
    

 

 

  

Total Short-Term U.S. Government Obligation
(cost $114,970)

   

      114,970   
    

 

 

  
     Shares      Value  

PREFERRED STOCKS - 0.2%

     

Capital Markets - 0.0% (D)

     

Goldman Sachs Group, Inc. - Series J,
5.50% (B) (E)

     2,374         57,309   

Diversified Financial Services - 0.1%

     

Citigroup Capital XIII,
7.88% (B)

     3,392         94,467   

U.S. Government Agency Obligation - 0.1%

     

Fannie Mae - Series O, 0.00% (G) (K)

     600         4,788   

Fannie Mae - Series S,
8.25% (B) (G) (K)

     10,800         49,140   

Freddie Mac - Series Z,
8.38% (B) (G) (K)

     14,925         69,401   
    

 

 

  

Total Preferred Stocks (cost $826,992)

  

      275,105   
    

 

 

  

COMMON STOCKS - 59.7%

     

Aerospace & Defense - 1.8%

     

General Dynamics Corp.

     404         31,645   

Honeywell International, Inc.

     12,158         964,616   

United Technologies Corp.

     11,016         1,023,827   

Air Freight & Logistics - 0.1%

     

FedEx Corp.

     709         69,893   

United Parcel Service, Inc. - Class B

     304         26,290   

Airlines - 0.1%

     

Southwest Airlines Co.

     6,021         77,611   

Auto Components - 0.1%

     

Johnson Controls, Inc.

     1,513         54,150   

Automobiles - 0.5%

     

General Motors Co. (K)

     16,570         551,947   

Beverages - 1.7%

     

Coca-Cola Co.

     20,355         816,439   

Coca-Cola Enterprises, Inc.

     8,758         307,931   

Dr. Pepper Snapple Group, Inc.

     4,026         184,914   

PepsiCo, Inc.

     6,603         540,060   

Biotechnology - 1.8%

     

Alexion Pharmaceuticals, Inc. (K)

     1,726         159,207   

Biogen IDEC, Inc. (K)

     3,955         851,116   

Celgene Corp. (K)

       5,987           699,940   

Onyx Pharmaceuticals, Inc. (E) (K)

       1,305           113,300   

Vertex Pharmaceuticals, Inc. (K)

     2,222         177,471   

Building Products - 0.3%

     

Masco Corp.

     14,184         276,446   
     Shares      Value  

Capital Markets - 1.4%

     

Goldman Sachs Group, Inc.

     3,912         $  591,690   

Invesco, Ltd.

     11,885         377,943   

Morgan Stanley

     10,117         247,158   

State Street Corp.

     6,041         393,934   

Chemicals - 1.1%

     

Air Products & Chemicals, Inc.

     4,728         432,943   

Axiall Corp. (E)

     2,739         116,627   

CF Industries Holdings, Inc. - Class B

     474         81,291   

Dow Chemical Co.

     12,114         389,707   

E.I. du Pont de Nemours & Co.

     4,379         229,897   

Commercial Banks - 1.8%

     

CIT Group, Inc. (K)

     641         29,890   

Comerica, Inc. - Class A

     3,522         140,281   

Fifth Third Bancorp

     2,598         46,894   

SunTrust Banks, Inc.

     3,852         121,608   

Wells Fargo & Co.

     39,759         1,640,854   

Commercial Services & Supplies - 0.1%

     

Tyco International, Ltd.

     3,842         126,594   

Communications Equipment - 1.7%

     

Cisco Systems, Inc.

     43,625         1,060,524   

QUALCOMM, Inc.

     12,924         789,398   

Computers & Peripherals - 2.0%

     

Apple, Inc.

     4,099         1,623,532   

EMC Corp.

     10,541         248,978   

Hewlett-Packard Co.

     10,107         250,654   

NetApp, Inc. (K)

     1,662         62,790   

Construction & Engineering - 0.5%

     

Fluor Corp.

     9,277         550,219   

Consumer Finance - 0.3%

     

Capital One Financial Corp.

     5,930         372,463   

Containers & Packaging - 0.2%

     

Crown Holdings, Inc. (K)

     5,264         216,508   

Diversified Financial Services - 2.1%

     

Bank of America Corp.

     73,952         951,023   

Citigroup, Inc.

     24,669         1,183,372   

IntercontinentalExchange, Inc. (K)

     1,082         192,336   

NYSE Euronext

     1,120         46,368   

Diversified Telecommunication Services - 1.2%

     

AT&T, Inc.

     12,661         448,199   

Verizon Communications, Inc.

     17,222         866,956   

Electric Utilities - 1.3%

     

American Electric Power Co., Inc.

     2,318         103,800   

Edison International

     7,804         375,841   

NextEra Energy, Inc.

     7,250         590,730   

NV Energy, Inc.

     3,809         89,359   

Xcel Energy, Inc.

     8,080         228,987   

Electrical Equipment - 0.8%

     

Eaton Corp. PLC

     730         48,046   

Emerson Electric Co.

     15,714         857,042   

Electronic Equipment & Instruments - 0.1%

     

Corning, Inc.

     4,272         60,791   

TE Connectivity, Ltd.

     2,095         95,406   

Energy Equipment & Services - 1.4%

     

Cameron International Corp. (K)

       2,805           171,554   

Ensco PLC - Class A

     7,773         451,767   

Noble Corp.

     4,739         178,091   

Schlumberger, Ltd.

     10,383         744,046   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    48

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Food & Staples Retailing - 0.9%

     

CVS Caremark Corp.

     12,373         $  707,488   

Kroger Co.

     1,913         66,075   

Wal-Mart Stores, Inc.

     3,229         240,528   

Food Products - 1.2%

     

Archer-Daniels-Midland Co.

     14,856         503,767   

General Mills, Inc.

     6,777         328,888   

Mondelez International, Inc. - Class A

     18,896         539,103   

Gas Utilities - 0.1%

     

Questar Corp. (E)

     3,003         71,622   

Health Care Equipment & Supplies - 1.1%

     

Baxter International, Inc.

     4,049         280,474   

CareFusion Corp. - Class A (K)

     5,849         215,536   

Covidien PLC

     6,077         381,879   

Intuitive Surgical, Inc. (K)

     485         245,691   

St. Jude Medical, Inc.

     1,380         62,969   

Health Care Providers & Services - 1.0%

     

DaVita HealthCare Partners, Inc. (K)

     1,787         215,870   

Humana, Inc. - Class A (E)

     3,975         335,410   

UnitedHealth Group, Inc.

     9,063         593,445   

Health Care Technology - 0.2%

     

athenahealth, Inc. (E) (K)

     660         55,915   

Cerner Corp. (K)

     1,356         130,298   

Hotels, Restaurants & Leisure - 0.6%

     

Marriott International, Inc. - Class A

     4,361         176,053   

Royal Caribbean Cruises, Ltd. - Class A

     5,652         188,438   

Starbucks Corp.

     1,445         94,633   

Yum! Brands, Inc.

     3,520         244,077   

Household Durables - 0.2%

     

Lennar Corp. - Class A (E)

     1,830         65,953   

NVR, Inc. (K)

     25         23,050   

PulteGroup, Inc. (K)

     9,608         182,264   

Household Products - 1.4%

     

Clorox Co.

     1,038         86,299   

Kimberly-Clark Corp. (E)

     3,605         350,190   

Procter & Gamble Co.

     14,403         1,108,887   

Industrial Conglomerates - 0.5%

     

General Electric Co.

     26,202         607,624   

Insurance - 2.3%

     

ACE, Ltd.

     7,652         684,701   

Aflac, Inc.

     1,500         87,180   

AON PLC

     2,993         192,599   

Berkshire Hathaway, Inc. - Class B (K)

     5,327         596,198   

Everest RE Group, Ltd.

     699         89,654   

Hartford Financial Services Group, Inc.

     5,430         167,896   

MetLife, Inc.

     13,262         606,869   

Prudential Financial, Inc.

     1,866         136,274   

RenaissanceRe Holdings, Ltd.

     586         50,859   

Internet & Catalog Retail - 0.7%

     

Amazon.com, Inc. (K)

     1,784         495,399   

Expedia, Inc. (E)

     1,113         66,947   

priceline.com, Inc. (K)

     266         220,016   

Internet Software & Services - 1.7%

     

eBay, Inc. (K)

     3,637         188,106   

Google, Inc. - Class A (K)

     1,914         1,685,028   

LinkedIn Corp. - Class A (K)

     166         29,598   

IT Services - 1.9%

     

Cognizant Technology Solutions
Corp. - Class A (K)

       3,315           207,552   
     Shares      Value  

IT Services (continued)

     

Fidelity National Information Services, Inc.

     4,256         $  182,327   

International Business Machines Corp.

     3,902         745,711   

Jack Henry & Associates, Inc.

     1,438         67,773   

Visa, Inc. - Class A (E)

     4,670         853,443   

Life Sciences Tools & Services - 0.3%

     

Mettler-Toledo International, Inc. (E) (K)

     802         161,362   

Thermo Fisher Scientific, Inc.

     1,776         150,303   

Machinery - 0.7%

     

Cummins, Inc.

     472         51,193   

Deere & Co. (E)

     1,746         141,862   

PACCAR, Inc.

     9,507         510,146   

SPX Corp.

     1,715         123,446   

Media - 2.4%

     

CBS Corp. - Class B

     8,073         394,528   

Comcast Corp. - Class A

     21,608         904,943   

DISH Network Corp. - Class A

     1,793         76,238   

Time Warner Cable, Inc.

     2,585         290,761   

Time Warner, Inc.

     14,553         841,454   

Walt Disney Co. - Class A

     3,359         212,121   

Metals & Mining - 0.2%

     

Alcoa, Inc.

     27,525         215,246   

Walter Energy, Inc. (E)

     1,568         16,307   

Multi-Utilities - 0.8%

     

CMS Energy Corp.

     2,231         60,616   

DTE Energy Co.

     3,190         213,762   

NiSource, Inc. - Class B

     10,136         290,295   

Sempra Energy

     3,776         308,726   

Multiline Retail - 0.8%

     

Macy’s, Inc.

     4,205         201,840   

Nordstrom, Inc.

     680         40,759   

Target Corp.

     9,773         672,969   

Oil, Gas & Consumable Fuels - 4.8%

     

Anadarko Petroleum Corp. - Class A

     3,332         286,319   

Apache Corp.

     1,893         158,690   

Chevron Corp.

     12,262         1,451,085   

ConocoPhillips

     8,906         538,813   

EOG Resources, Inc.

     1,850         243,608   

Exxon Mobil Corp.

     15,921         1,438,462   

Marathon Petroleum Corp.

     2,563         182,127   

Occidental Petroleum Corp.

     4,095         365,397   

Phillips 66

     4,938         290,898   

Range Resources Corp.

     766         59,227   

Valero Energy Corp.

     1,730         60,152   

Williams Cos., Inc.

     7,066         229,433   

Pharmaceuticals - 3.1%

     

Actavis, Inc. (K)

     664         83,810   

Allergan, Inc.

     3,284         276,644   

Bristol-Myers Squibb Co.

     19,543         873,377   

Johnson & Johnson

     19,986         1,715,998   

Merck & Co., Inc.

     3,183         147,850   

Pfizer, Inc.

     8,320         233,043   

Valeant Pharmaceuticals International, Inc. (K)

     1,323         113,884   

Zoetis, Inc. - Class A

     956         29,536   

Real Estate Investment Trusts - 1.4%

     

Alexandria Real Estate Equities, Inc.

     450         29,574   

American Campus Communities, Inc. - Class A

     1,471         59,811   

Apartment Investment & Management
Co. - Class A

     1,036         31,121   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    49

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Real Estate Investment Trusts (continued)

     

Boston Properties, Inc.

     1,214         $  128,040   

Brandywine Realty Trust

     7,813         105,632   

CBL & Associates Properties, Inc.

     7,311         156,602   

Digital Realty Trust, Inc. (E)

     1,085         66,185   

HCP, Inc.

     2,587         117,553   

Highwoods Properties, Inc. (E)

     3,883         138,274   

Host Hotels & Resorts, Inc. (E)

     7,572         127,740   

LaSalle Hotel Properties

     4,052         100,084   

Post Properties, Inc.

     1,025         50,727   

ProLogis, Inc. - Class A

     590         22,255   

Simon Property Group, Inc.

     1,717         271,149   

Ventas, Inc.

     1,711         118,846   

Road & Rail - 1.4%

     

CSX Corp.

     26,010         603,172   

Norfolk Southern Corp.

     855         62,116   

Union Pacific Corp.

     5,789         893,127   

Semiconductors & Semiconductor Equipment - 1.2%

  

   

Applied Materials, Inc. - Class A

     12,019         179,203   

Avago Technologies, Ltd. - Class A

     1,400         52,332   

Broadcom Corp. - Class A

     14,053         474,429   

KLA-Tencor Corp.

     3,365         187,532   

LAM Research Corp. (K)

     4,715         209,063   

Texas Instruments, Inc. (E)

     4,142         144,432   

Xilinx, Inc.

     2,823         111,819   

Software - 2.5%

     

Adobe Systems, Inc. (K)

     11,442         521,297   

Citrix Systems, Inc. (K)

     3,027         182,619   

Microsoft Corp.

     37,462         1,293,563   

Oracle Corp.

     23,721         728,709   

VMware, Inc. - Class A (K)

     517         34,634   

Specialty Retail - 2.2%

     

AutoZone, Inc. (K)

     1,058         448,264   

Home Depot, Inc.

     11,033         854,726   

Lowe’s Cos., Inc.

     12,961         530,105   

O’Reilly Automotive, Inc. (K)

     322         36,264   

Ross Stores, Inc.

     2,219         143,813   

TJX Cos., Inc.

     8,793         440,178   

Textiles, Apparel & Luxury Goods - 0.5%

     

Lululemon Athletica, Inc. (K)

     543         35,577   

V.F. Corp.

     2,813         543,078   

Tobacco - 1.0%

     

Philip Morris International, Inc.

     12,599         1,091,325   

Trading Companies & Distributors - 0.2%

     

WW Grainger, Inc.

     928         234,023   

Wireless Telecommunication Services - 0.0% (D)

  

   

Sprint Nextel Corp. (K)

     4,666         32,755   
    

 

 

  

Total Common Stocks (cost $57,311,386)

        66,458,428   
    

 

 

  

WARRANT - 0.0% (D)

     

Oil, Gas & Consumable Fuels - 0.0% (D)

     

SemGroup Corp. (E) (K)
Expiration: 11/30/2014
Exercise Price: $25.0

     68         1,527   
    

 

 

  

Total Warrant (cost $1)

        1,527   
    

 

 

  
     Shares      Value  

SHORT-TERM INVESTMENT COMPANY - 3.5%

  

   

BlackRock Provident TempFund 24 (L)

     3,836,919         $  3,836,919   
    

 

 

  

Total Short-Term Investment Company
(cost $3,836,919)

   

      3,836,919   
    

 

 

  

SECURITIES LENDING COLLATERAL - 4.4%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (A)

     4,907,965         4,907,965   
    

 

 

  

Total Securities Lending Collateral (cost $4,907,965)

  

      4,907,965   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 0.5%

     

State Street Bank & Trust Co.
0.03% (A), dated 06/28/2013, to be repurchased at $585,759 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation, 3.25%, due 05/01/2041, and with a value of $597,619.

     $  585,758         585,758   
    

 

 

  

Total Repurchase Agreement (cost $585,758)

  

      585,758   
    

 

 

  

Total Investment Securities (cost $116,616,303) (M)

  

      123,105,555   

Other Assets and Liabilities - Net

        (11,847,933 ) 
    

 

 

  

Net Assets

       $  111,257,622   
    

 

 

  
     Principal      Value  

TBA SHORT COMMITMENTS - (3.6%)

     

U.S. GOVERNMENT AGENCY OBLIGATIONS - (3.6%)

  

Fannie Mae, TBA

     

3.00%

     $  (900,000 )       (879,328 ) 

3.50%

     (700,000 )       (715,891 ) 

4.00%

     (300,000 )       (316,207 ) 

5.00%

     (600,000 )       (645,703 ) 

5.50%

     (100,000 )       (108,609 ) 

6.00%

     (100,000 )       (108,750 ) 

Freddie Mac, TBA
3.00%

     (700,000 )       (682,281 ) 

Ginnie Mae, TBA

     

4.00%

     (100,000 )       (104,813 ) 

4.50%

     (400,000 )       (426,422 ) 
    

 

 

  

Total U.S. Government Agency Obligations (proceeds $(4,039,379))

   

      (3,988,004 ) 
    

 

 

  

Total TBA Short Commitments
(proceeds $(4,039,379))

   

      (3,988,004 ) 
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    50

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

 

FUTURES CONTRACTS: (N)  
Description    Type      Contracts      Expiration Date      Net Unrealized
Appreciation
(Depreciation)		  

10-Year Australian Treasury Bond

      Long         3         09/16/2013       $   (1,737 ) 

10-Year U.S. Treasury Note

      Short         (58 )       09/19/2013         72,613   

2-Year U.S. Treasury Note

      Long         22         09/30/2013         (8,473 ) 

5-Year U.S. Treasury Note

      Long         31         09/30/2013         (56,292 ) 

Long U.S. Treasury Bond

      Long         13         09/19/2013         (30,184 ) 

S&P 500 E-Mini Index

      Long         6         09/20/2013         (2,322 ) 

Ultra Long U.S. Treasury Bond

      Long         6         09/19/2013         1,941   
           

 

 

  
            $   (24,454 ) 
           

 

 

  

 

FORWARD FOREIGN CURRENCY CONTRACTS:  
Currency    Counterparty    Contracts
Bought
(Sold)		      Settlement
Date		      Amount in U.S.
Dollars Bought
(Sold)		      Net Unrealized
Appreciation
(Depreciation)		  

EUR

    GSC      (330,000 )       07/17/2013       $   (431,169 )     $   1,595   

EUR

    BOA      (644,000 )       07/23/2013         (850,631 )       12,289   

EUR

    CITI      226,000         07/23/2013         294,923         (722 ) 

EUR

    GSC      (109,000 )       07/23/2013         (145,425 )       3,532   

EUR

    MSC      (91,000 )       07/23/2013         (119,487 )       1,026   
              

 

 

  
               $   17,720   
              

 

 

  

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) Rate shown reflects the yield at June 30, 2013.
(B)  Floating or variable rate note. Rate is listed as of June 30, 2013.
(C)  Step bond - Coupon rate changes in increments to maturity. Rate disclosed is as of June 30, 2013. Maturity date disclosed is the ultimate maturity date.
(D) Percentage rounds to less than 0.1%.
(E)  All or a portion of this security is on loan. The value of all securities on loan is $4,805,075. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(F) In default.
(G) The security has a perpetual maturity. The date shown is the next call date.
(H) Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate market value of fair valued securities is $64, or less than 0.01% of the portfolio’s net assets.
(I) Illiquid. Total aggregate market value of illiquid securities is $35,289, or 0.03% of the portfolio’s net assets.
(J) All or a portion of this security has been segregated by the custodian with the broker as collateral to cover margin requirements for open futures contracts. Total value of securities segregated as collateral to cover margin requirements for open futures contracts is $114,967.
(K) Non-income producing security.
(L) The investment issuer is affiliated with the sub-adviser of the portfolio.
(M) Aggregate cost for federal income tax purposes is $116,616,303. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $10,231,171 and $3,741,919, respectively. Net unrealized appreciation for tax purposes is $6,489,252.
(N) Cash in the amount of $61,000 has been segregated by the custodian with the broker as collateral to cover margin requirements for open futures contracts.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    51

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

DEFINITIONS:

 

144A    144A Securities are registered pursuant to Rule 144A of the Securities Act of 1933. These securities are deemed to be liquid for purposes of compliance limitations on holdings of illiquid securities and may be resold as transactions exempt from registration, normally to qualified institutional buyers. At June 30, 2013, these securities aggregated $8,059,427, or 7.24% of the portfolio’s net assets.
BOA    Bank of America
CITI    Citigroup, Inc.
EMTN    European Medium Term Note
GMTN    Global Medium Term Note
GSC    Goldman Sachs & Co.
IO    Interest Only
MSC    Morgan Stanley
MTN    Medium Term Note
REMIC    Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities)
Reg S    Security exempt from registration under Regulation S of the Securities Act of 1933, which exempts from registration securities offered and sold outside the United States. Security may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.
STRIPS    Separate Trading of Registered Interest and Principal of Securities
TBA    To Be Announced
UBS    UBS AG
CURRENCY ABBREVIATION:
EUR    Euro

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    52

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY: (O)

 

     Level 1
Quoted Prices		    

Level 2
Other

Significant
Observable

Inputs

    

Level 3

Significant
Unobservable

Inputs

    

Value at

June 30, 2013

  

ASSETS

                                

Investment Securities

                                

U.S. Government Obligations

   $    —      $   4,159,348      $   —      $   4,159,348   

U.S. Government Agency Obligations

     —        18,693,382        —        18,693,382   

Foreign Government Obligations

     —        1,483,301        —        1,483,301   

Mortgage-Backed Securities

     —        5,871,895        —        5,871,895   

Asset-Backed Securities

     —        5,983,232        —        5,983,232   

Municipal Government Obligations

     —        108,584        —        108,584   

Preferred Corporate Debt Securities

     —        72,928        —        72,928   

Corporate Debt Securities

                                

Auto Components

     —        31,509        —        31,509   

Automobiles

     —        —        0        0   

Capital Markets

     —        392,094        —        392,094   

Chemicals

     —        65,286        —        65,286   

Commercial Banks

     —        400,225        —        400,225   

Commercial Services & Supplies

     —        108,250        —        108,250   

Communications Equipment

     —        44,319        —        44,319   

Consumer Finance

     —        10,835        —        10,835   

Containers & Packaging

     —        261,476        —        261,476   

Distributors

     —        81,424        —        81,424   

Diversified Financial Services

     —        2,109,130        0        2,109,130   

Diversified Telecommunication Services

     —        361,328        —        361,328   

Electric Utilities

     —        1,094,771        —        1,094,771   

Energy Equipment & Services

     —        506,595        —        506,595   

Food & Staples Retailing

     —        45,559        —        45,559   

Food Products

     —        40,693        —        40,693   

Health Care Equipment & Supplies

     —        152,732        —        152,732   

Health Care Providers & Services

     —        206,927        —        206,927   

Insurance

     —        1,042,719        —        1,042,719   

Life Sciences Tools & Services

     —        45,063        —        45,063   

Media

     —        719,582        —        719,582   

Metals & Mining

     —        208,708        —        208,708   

Multi-Utilities

     —        226,940        —        226,940   

Multiline Retail

     —        45,476        —        45,476   

Oil, Gas & Consumable Fuels

     —        1,344,523        —        1,344,523   

Paper & Forest Products

     —        126,275        —        126,275   

Pharmaceuticals

     —        25,002        —        25,002   

Real Estate Investment Trusts

     —        105,327        —        105,327   

Real Estate Management & Development

     —        58,025        —        58,025   

Road & Rail

     —        69,564        —        69,564   

Specialty Retail

     —        48,924        —        48,924   

Wireless Telecommunication Services

     —        572,932        —        572,932   

Short-Term U.S. Government Obligation

     —        114,970        —        114,970   

Preferred Stocks

     275,105        —        —        275,105   

Common Stocks

     66,458,428        —        —        66,458,428   

Warrant

     1,527        —        —        1,527   

Short-Term Investment Company

     3,836,919        —        —        3,836,919   

Securities Lending Collateral

     4,907,965        —        —        4,907,965   

Repurchase Agreement

     —        585,758        —        585,758   

Total Investment Securities

   $ 75,479,944      $ 47,625,611      $ 0      $ 123,105,555   

Derivative Financial Instruments

                                

Forward Foreign Currency Contracts (P)

   $ —      $ 18,442      $ —      $ 18,442   

Futures Contracts (P)

     74,554        —        —        74,554   

Total Derivative Financial Instruments

   $ 74,554      $ 18,442      $ —      $ 92,996   

Other Assets (Q)

                                

Cash

   $ 3,012      $ —      $ —      $ 3,012   

Cash on Deposit with Broker

     61,000        —        —        61,000   

Foreign Currency

     2,930        —        —        2,930   

Total Other Assets

   $ 66,942      $ —      $ —      $ 66,942   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    53

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY (continued):

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		    

Value at

June 30, 2013

  

LIABILITIES

                                

TBA Short Commitments

                                

U.S. Government Agency Obligations

   $ —      $ (3,988,004 )    $ —      $ (3,988,004 ) 

Total TBA Short Commitments

   $ —      $ (3,988,004 )    $ —      $ (3,988,004 ) 
                                 

Derivative Financial Instruments

                                

Forward Foreign Currency Contracts (P)

   $ —      $ (722 )    $ —      $ (722 ) 

Futures Contracts (P)

     (99,008 )      —        —        (99,008 ) 

Total Derivative Financial Instruments

   $   (99,008 )    $ (722 )    $   —      $   (99,730 ) 
                                 

Other Liabilities (Q)

                                

Collateral for Securities on Loan

   $ —      $ (4,907,965 )    $ —      $ (4,907,965 ) 

Total Other Liabilities

   $ —      $   (4,907,965 )    $ —      $ (4,907,965 ) 

 

(O)  Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(P) Derivative financial instruments valued at unrealized appreciation (depreciation) on the instrument.
(Q)  Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

Level 3 Rollforward - Investment Securities

 

Securities   Beginning
Balance at
December 31, 2012		     Purchases     Sales     Accrued
Discounts
(Premiums)		     Total
Realized
Gain (Loss)		     Net Change in
Unrealized
Appreciation
(Depreciation) (R)		     Transfers
into
Level 3		     Transfers
out of
Level 3		     Ending
Balance at
June 30, 2013 (S)		     Net Change in
Unrealized
Appreciation
(Depreciation)
on Investments
Held at
June 30, 2013 (R)		  
Corporate Debt Securities   $ 0      $ —      $ 0      $ —      $ (379,424 )    $ 379,424      $ —      $ —      $ 0      $ —   

 

(R) Any difference between Net Change in Unrealized Appreciation (Depreciation) and Net Change in Unrealized Appreciation (Depreciation) on Investments Held at June 30, 2013 may be due to an investment no longer held or categorized as Level 3 at period end.
(S)  Inputs used in the valuation of the Level 3 securities were not considered significant unobservable inputs.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    54

Transamerica Partners Large Value Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 99.0%

     

Aerospace & Defense - 4.7%

     

L-3 Communications Holdings, Inc. (A)

       132,000         $  11,317,680   

Lockheed Martin Corp.

     46,400         5,032,544   

Northrop Grumman Corp.

     143,600         11,890,080   

Raytheon Co.

     180,900         11,961,108   

Airlines - 1.7%

     

Alaska Air Group, Inc. (B)

     112,600         5,855,200   

Delta Air Lines, Inc. (B)

     449,400         8,408,274   

Auto Components - 1.1%

     

Lear Corp.

     62,400         3,772,704   

Magna International, Inc. - Class A

     85,900         6,117,798   

Automobiles - 0.4%

     

Ford Motor Co.

     198,300         3,067,701   

Beverages - 1.0%

     

PepsiCo, Inc.

     106,700         8,726,993   

Biotechnology - 3.1%

     

Amgen, Inc.

     92,300         9,106,318   

Biogen IDEC, Inc. (B)

     32,800         7,058,560   

Celgene Corp. (B)

     31,200         3,647,592   

United Therapeutics Corp. (A) (B)

     98,000         6,450,360   

Capital Markets - 2.4%

     

Ameriprise Financial, Inc.

     54,500         4,407,960   

Goldman Sachs Group, Inc.

     107,800         16,304,750   

Chemicals - 1.7%

     

CF Industries Holdings, Inc. - Class B

     27,300         4,681,950   

LyondellBasell Industries NV - Class A

     148,400         9,832,984   

Commercial Banks - 8.0%

     

Fifth Third Bancorp

     597,400         10,783,070   

Huntington Bancshares, Inc. - Class A

     1,417,300         11,168,324   

KeyCorp

     1,038,100         11,460,624   

Regions Financial Corp.

     1,213,700         11,566,561   

Wells Fargo & Co.

     572,500         23,627,075   

Communications Equipment - 1.4%

     

Cisco Systems, Inc.

     504,700         12,269,257   

Computers & Peripherals - 2.2%

     

Apple, Inc.

     7,500         2,970,600   

SanDisk Corp. (B)

     65,200         3,983,720   

Seagate Technology PLC

     101,900         4,568,177   

Western Digital Corp.

     115,400         7,165,186   

Construction & Engineering - 1.0%

     

Fluor Corp.

     144,000         8,540,640   

Consumer Finance - 1.4%

     

Discover Financial Services

     256,800         12,233,952   

Containers & Packaging - 0.8%

     

Packaging Corp. of America

     77,700         3,804,192   

Rock-Tenn Co. - Class A

     34,900         3,485,812   

Diversified Financial Services - 7.1%

     

Bank of America Corp.

     625,700         8,046,502   

CBOE Holdings, Inc.

     120,200         5,606,128   

Citigroup, Inc.

     346,900         16,640,793   

JPMorgan Chase & Co.

     577,500         30,486,225   

Diversified Telecommunication Services - 2.2%

  

   

AT&T, Inc.

     302,500         10,708,500   

Verizon Communications, Inc.

     170,000         8,557,800   

Electric Utilities - 4.3%

     

American Electric Power Co., Inc.

     211,000         9,448,580   

Edison International

     250,100         12,044,816   

Entergy Corp. - Class B

     67,100         4,675,528   

NV Energy, Inc.

     475,700         11,159,922   
     Shares      Value  

Electrical Equipment - 0.2%

     

First Solar, Inc. (A) (B)

       44,800         $  2,003,904   

Electronic Equipment & Instruments - 0.8%

  

   

Avnet, Inc. (B)

     91,500         3,074,400   

Ingram Micro, Inc. - Class A (B)

     209,600         3,980,304   

Energy Equipment & Services - 1.0%

     

Halliburton Co.

     83,000         3,462,760   

Patterson-UTI Energy, Inc.

     144,900         2,804,539   

Superior Energy Services, Inc. (B)

     75,900         1,968,846   

Food & Staples Retailing - 1.5%

     

Kroger Co.

     288,700         9,971,698   

Safeway, Inc. (A)

     120,400         2,848,664   

Food Products - 2.4%

     

Green Mountain Coffee Roasters, Inc.
Series C (A) (B)

     28,300         2,124,198   

Hershey Co.

     112,900         10,079,712   

Hillshire Brands Co.

     73,600         2,434,688   

Tyson Foods, Inc. - Class A

     244,100         6,268,488   

Health Care Providers & Services - 5.4%

     

AmerisourceBergen Corp. - Class A

     190,700         10,646,781   

Cardinal Health, Inc.

     36,800         1,736,960   

CIGNA Corp.

     143,800         10,424,062   

Humana, Inc. - Class A

     136,000         11,475,680   

McKesson Corp.

     86,400         9,892,800   

WellPoint, Inc.

     29,500         2,414,280   

Household Durables - 1.7%

     

Jarden Corp. (B)

     80,100         3,504,375   

Newell Rubbermaid, Inc.

     140,400         3,685,500   

Whirlpool Corp.

     67,100         7,673,556   

Household Products - 0.4%

     

Kimberly-Clark Corp.

     36,200         3,516,468   

Independent Power Producers & Energy Traders - 1.0%

  

AES Corp.

     709,000         8,500,910   

Industrial Conglomerates - 0.6%

     

General Electric Co.

     216,700         5,025,273   

Insurance - 9.2%

     

Allstate Corp.

     192,600         9,267,912   

American Financial Group, Inc.

     46,600         2,279,206   

American International Group, Inc. (B)

     62,000         2,771,400   

Assurant, Inc.

     120,600         6,139,746   

Axis Capital Holdings, Ltd.

     161,200         7,379,736   

Chubb Corp. - Class A

     24,500         2,073,925   

Everest RE Group, Ltd.

     78,700         10,094,062   

Hartford Financial Services Group, Inc.

     68,400         2,114,928   

Lincoln National Corp.

     86,400         3,151,008   

PartnerRe, Ltd.

     122,900         11,129,824   

RenaissanceRe Holdings, Ltd.

     87,400         7,585,446   

Travelers Cos., Inc.

     138,800         11,092,896   

Unum Group

     132,700         3,897,399   

IT Services - 1.1%

     

Amdocs, Ltd.

     213,300         7,911,297   

Computer Sciences Corp.

     37,700         1,650,129   

Machinery - 0.8%

     

Ingersoll-Rand PLC

     61,800         3,431,136   

Oshkosh Corp. (B)

     100,200         3,804,594   

Multi-Utilities - 0.7%

     

Public Service Enterprise Group, Inc.

     179,900         5,875,534   

Multiline Retail - 1.4%

     

Dillard’s, Inc. - Class A

     55,200         4,524,744   

Macy’s, Inc.

     150,600         7,228,800   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    55

Transamerica Partners Large Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Oil, Gas & Consumable Fuels - 13.8%

     

Chevron Corp.

       216,000         $  25,561,440   

ConocoPhillips

     286,600         17,339,300   

CVR Energy, Inc. (A)

     79,300         3,758,820   

Exxon Mobil Corp.

     495,900         44,804,565   

Marathon Oil Corp.

     158,200         5,470,556   

Marathon Petroleum Corp.

     99,300         7,056,258   

Murphy Oil Corp.

     166,900         10,162,541   

Valero Energy Corp.

     112,000         3,894,240   

Paper & Forest Products - 0.2%

     

Louisiana-Pacific Corp. (B)

     107,700         1,592,883   

Personal Products - 0.6%

     

Avon Products, Inc.

     226,900         4,771,707   

Pharmaceuticals - 5.0%

     

Actavis, Inc. (B)

     22,700         2,865,194   

Johnson & Johnson

     284,700         24,444,342   

Pfizer, Inc.

     403,500         11,302,035   

Warner Chilcott PLC - Class A

     214,900         4,272,212   

Real Estate Management & Development - 0.7%

  

   

Jones Lang LaSalle, Inc.

     44,500         4,055,730   

Realogy Holdings Corp. (B)

     48,400         2,325,136   

Road & Rail - 0.5%

     

Union Pacific Corp.

     26,400         4,072,992   

Semiconductors & Semiconductor Equipment - 0.6%

  

   

Marvell Technology Group, Ltd.

     439,200         5,143,032   

Software - 2.3%

     

CA, Inc.

     273,600         7,833,168   

Microsoft Corp.

     116,500         4,022,745   

Symantec Corp.

     354,400         7,963,368   

Specialty Retail - 1.9%

     

CST Brands, Inc. (B)

     1         31   

GameStop Corp. - Class A (A)

     268,600         11,289,258   

Gap, Inc. - Class A

     113,600         4,740,528   

Textiles, Apparel & Luxury Goods - 0.2%

  

   

Gildan Activewear, Inc. - Class A

     39,100         1,583,941   

Wireless Telecommunication Services - 0.5%

  

   

Sprint Nextel Corp. (B)

     584,800         4,105,296   
    

 

 

  

Total Common Stocks (cost $704,231,038)

  

      849,996,426   
    

 

 

  

SECURITIES LENDING COLLATERAL - 3.1%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (C)

     26,502,707         26,502,707   
    

 

 

  

Total Securities Lending Collateral (cost $26,502,707)

  

      26,502,707   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 1.0%

     

State Street Bank & Trust Co.
0.03% (C), dated 06/28/2013, to be repurchased at $8,900,381 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation, 3.25%, due 05/01/2041, and with a value of $9,078,399.

     $  8,900,359         8,900,359   
    

 

 

  

Total Repurchase Agreement (cost $8,900,359)

  

      8,900,359   
    

 

 

  
    

Total Investment Securities (cost $739,634,104) (D)

  

      885,399,492   

Other Assets and Liabilities - Net

        (27,030,021 ) 
    

 

 

  

Net Assets

       $858,369,471   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    56

Transamerica Partners Large Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $25,917,792. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(B) Non-income producing security.
(C)  Rate shown reflects the yield at June 30, 2013.
(D) Aggregate cost for federal income tax purposes is $739,634,104. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $153,105,491 and $7,340,103, respectively. Net unrealized appreciation for tax purposes is $145,765,388.

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 849,996,426      $ —      $ —      $ 849,996,426   

Securities Lending Collateral

     26,502,707        —        —        26,502,707   

Repurchase Agreement

     —        8,900,359        —        8,900,359   

Total Investment Securities

   $ 876,499,133      $ 8,900,359      $ —      $ 885,399,492   
       
     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

LIABILITIES

                                

Other Liabilities (F)

                                

Collateral for Securities on Loan

   $ —      $ (26,502,707 )    $ —      $ (26,502,707 ) 

Total Other Liabilities

   $ —      $ (26,502,707 )    $ —      $ (26,502,707 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    57

Transamerica Partners Large Core Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 97.4%

     

Aerospace & Defense - 5.1%

     

L-3 Communications Holdings, Inc. (A)

     39,500         $  3,386,730   

Lockheed Martin Corp.

     30,400         3,297,184   

Northrop Grumman Corp.

     44,500         3,684,600   

Raytheon Co.

     53,700         3,550,644   

Airlines - 1.5%

     

Delta Air Lines, Inc. (B)

     96,300         1,801,773   

Southwest Airlines Co.

     88,100         1,135,609   

United Continental Holdings, Inc. (B)

     35,500         1,110,795   

Auto Components - 1.2%

     

Delphi Automotive PLC - Class A

     12,000         608,280   

Magna International, Inc. - Class A

     39,100         2,784,702   

Automobiles - 0.5%

     

Ford Motor Co.

     94,800         1,466,556   

Beverages - 2.0%

     

PepsiCo, Inc.

     68,100         5,569,899   

Biotechnology - 5.3%

     

Amgen, Inc.

     46,500         4,587,690   

Biogen IDEC, Inc. (B)

     19,100         4,110,320   

Celgene Corp. (B)

     29,900         3,495,609   

Gilead Sciences, Inc. (B)

     41,800         2,140,578   

Capital Markets - 2.0%

     

Goldman Sachs Group, Inc.

     27,900         4,219,875   

T. Rowe Price Group, Inc.

     18,100         1,324,015   

Chemicals - 2.3%

     

CF Industries Holdings, Inc. - Class B

     16,000         2,744,000   

LyondellBasell Industries NV - Class A

     54,800         3,631,048   

Commercial Banks - 4.6%

     

Fifth Third Bancorp

     153,000         2,761,650   

Huntington Bancshares, Inc. - Class A

     428,400         3,375,792   

KeyCorp

     238,300         2,630,832   

Regions Financial Corp.

     252,300         2,404,419   

Wells Fargo & Co.

     34,400         1,419,688   

Communications Equipment - 2.4%

     

Cisco Systems, Inc.

     177,000         4,302,870   

Motorola Solutions, Inc.

     22,000         1,270,060   

QUALCOMM, Inc.

     15,700         958,956   

Computers & Peripherals - 4.1%

     

Apple, Inc.

     11,000         4,356,880   

SanDisk Corp. (B)

     19,000         1,160,900   

Seagate Technology PLC

     50,000         2,241,500   

Western Digital Corp.

     54,300         3,371,487   

Construction & Engineering - 1.2%

     

Fluor Corp.

     53,700         3,184,947   

Consumer Finance - 1.4%

     

Discover Financial Services

     77,200         3,677,808   

Containers & Packaging - 0.4%

     

Rock-Tenn Co. - Class A

     10,700         1,068,716   

Diversified Consumer Services - 0.7%

     

H&R Block, Inc.

     73,600         2,042,400   

Diversified Financial Services - 3.5%

     

Citigroup, Inc.

     55,200         2,647,944   

JPMorgan Chase & Co.

     127,700         6,741,283   

Diversified Telecommunication Services - 2.7%

  

   

AT&T, Inc.

     42,200         1,493,880   

Verizon Communications, Inc.

     116,000         5,839,440   

Electric Utilities - 1.7%

     

American Electric Power Co., Inc.

     22,300         998,594   

Edison International

     73,100         3,520,496   
     Shares      Value  

Electrical Equipment - 0.3%

     

First Solar, Inc. (B)

     19,500         $  872,235   

Electronic Equipment & Instruments - 0.4%

  

   

Corning, Inc.

     72,600         1,033,098   

Energy Equipment & Services - 0.7%

     

Diamond Offshore Drilling, Inc.

     10,900         749,811   

Helmerich & Payne, Inc. (A)

     16,900         1,055,405   

Food & Staples Retailing - 1.8%

     

Kroger Co.

     103,800         3,585,252   

Safeway, Inc. (A)

     54,900         1,298,934   

Food Products - 4.2%

     

General Mills, Inc.

     69,200         3,358,276   

Green Mountain Coffee Roasters, Inc. -
Series C (A) (B)

     14,300         1,073,358   

Hershey Co.

     39,700         3,544,416   

Tyson Foods, Inc. - Class A

     129,100         3,315,288   

Health Care Providers & Services - 5.2%

  

   

AmerisourceBergen Corp. - Class A

     61,500         3,433,545   

Cardinal Health, Inc.

     24,700         1,165,840   

CIGNA Corp.

     32,100         2,326,929   

Humana, Inc. - Class A

     40,600         3,425,828   

McKesson Corp.

     33,000         3,778,500   

Hotels, Restaurants & Leisure - 0.6%

     

McDonald’s Corp.

     17,100         1,692,900   

Household Durables - 2.0%

     

Newell Rubbermaid, Inc.

     100,100         2,627,625   

Whirlpool Corp.

     25,000         2,859,000   

Household Products - 1.3%

     

Kimberly-Clark Corp.

     36,600         3,555,324   

Independent Power Producers & Energy Traders - 0.9%

  

AES Corp.

     213,200         2,556,268   

Insurance - 4.3%

     

ACE, Ltd.

     13,900         1,243,772   

Allstate Corp.

     43,600         2,098,032   

Chubb Corp. - Class A

     31,400         2,658,010   

Hartford Financial Services Group, Inc.

     48,100         1,487,252   

Lincoln National Corp. (A)

     15,800         576,226   

Travelers Cos., Inc.

     44,800         3,580,416   

Internet Software & Services - 2.6%

     

Google, Inc. - Class A (B)

     8,000         7,042,960   

IT Services - 2.7%

     

Amdocs, Ltd.

     31,600         1,172,044   

Computer Sciences Corp.

     19,500         853,515   

Fidelity National Information Services, Inc.

     26,700         1,143,828   

Visa, Inc. - Class A

     22,200         4,057,050   

Machinery - 0.4%

     

Ingersoll-Rand PLC

     19,900         1,104,848   

Media - 0.6%

     

DIRECTV (B)

     28,200         1,737,684   

Multi-Utilities - 0.5%

     

Public Service Enterprise Group, Inc.

     40,500         1,322,730   

Multiline Retail - 1.0%

     

Macy’s, Inc.

     56,200         2,697,600   

Oil, Gas & Consumable Fuels - 9.4%

     

Chevron Corp.

     46,300         5,479,142   

ConocoPhillips

     45,400         2,746,700   

Exxon Mobil Corp.

     99,400         8,980,790   

Marathon Oil Corp.

     81,600         2,821,728   

Marathon Petroleum Corp.

     33,400         2,373,404   

Murphy Oil Corp.

     52,300         3,184,547   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    58

Transamerica Partners Large Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Paper & Forest Products - 0.4%

  

   

International Paper Co.

     27,000         $  1,196,370   

Personal Products - 0.7%

  

   

Avon Products, Inc.

     85,000         1,787,550   

Pharmaceuticals - 2.7%

  

   

Actavis, Inc. (B)

     9,000         1,135,980   

Johnson & Johnson

     64,700         5,555,142   

Mylan, Inc. (B)

     17,100         530,613   

Road & Rail - 1.6%

  

   

Ryder System, Inc. - Class A

     19,000         1,155,010   

Union Pacific Corp.

     21,400         3,301,592   

Software - 5.2%

  

   

Activision Blizzard, Inc.

     53,400         761,484   

CA, Inc.

     119,100         3,409,833   

Microsoft Corp.

     215,500         7,441,215   

Symantec Corp.

     112,700         2,532,369   

Specialty Retail - 3.5%

  

   

GameStop Corp. - Class A (A)

     84,900         3,568,347   

Gap, Inc. - Class A

     85,400         3,563,742   

Lowe’s Cos., Inc.

     28,100         1,149,290   

TJX Cos., Inc.

     23,500         1,176,410   

Textiles, Apparel & Luxury Goods - 1.4%

  

   

NIKE, Inc. - Class B

     59,600         3,795,328   
     Shares      Value  

Tobacco - 0.4%

  

   

Philip Morris International, Inc.

     11,400         $  987,468   
    

 

 

  

Total Common Stocks (cost $222,526,965)

  

      264,838,302   
    

 

 

  

SECURITIES LENDING COLLATERAL - 3.1%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (C)

     8,384,120         8,384,120   
    

 

 

  

Total Securities Lending Collateral (cost $8,384,120)

  

      8,384,120   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 2.1%

     

State Street Bank & Trust Co.
0.03% (C), dated 06/28/2013, to be repurchased at $5,632,319 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation, 3.25%, due 05/01/2041, and with a value of $5,747,951.

     $  5,632,305         5,632,305   
    

 

 

  

Total Repurchase Agreement (cost $5,632,305)

  

      5,632,305   
    

 

 

  
    

Total Investment Securities (cost $236,543,390) (D)

  

      278,854,727   

Other Assets and Liabilities - Net

        (7,051,909 ) 
    

 

 

  

Net Assets

       $  271,802,818   
    

 

 

  
 

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $8,200,499. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(B)  Non-income producing security.
(C)  Rate shown reflects the yield at June 30, 2013.
(D)  Aggregate cost for federal income tax purposes is $236,543,390. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $44,467,159 and $2,155,822, respectively. Net unrealized appreciation for tax purposes is $42,311,337.

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 264,838,302      $ —      $ —      $ 264,838,302   

Securities Lending Collateral

     8,384,120        —        —        8,384,120   

Repurchase Agreement

     —        5,632,305        —        5,632,305   

Total Investment Securities

   $ 273,222,422      $ 5,632,305      $ —      $ 278,854,727   
                                 

Other Assets (F)

                                

Cash

   $ 4,179      $ —      $ —      $ 4,179   

Total Other Assets

   $ 4,179      $ —      $ —      $ 4,179   
       
     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

LIABILITIES

                                

Other Liabilities (F)

                                

Collateral for Securities on Loan

   $ —      $ (8,384,120 )    $ —      $ (8,384,120 ) 

Total Other Liabilities

   $ —      $ (8,384,120 )    $ —      $ (8,384,120 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    59

Transamerica Partners Large Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 99.8%

     

Aerospace & Defense - 5.8%

     

Boeing Co.

     182,443         $  18,689,461   

Honeywell International, Inc.

     80,547         6,390,599   

Precision Castparts Corp.

     38,177         8,628,384   

Rolls-Royce Holdings PLC (A)

     124,635         2,149,650   

United Technologies Corp.

     143,783         13,363,192   

Automobiles - 0.3%

     

Ford Motor Co.

     180,761         2,796,373   

Beverages - 1.9%

     

Anheuser-Busch InBev NV - ADR

     39,792         3,591,626   

Coca-Cola Co.

     134,003         5,374,860   

Diageo PLC

     159,863         4,571,099   

Monster Beverage Corp. (A)

     37,541         2,281,367   

Biotechnology - 7.2%

     

Alexion Pharmaceuticals, Inc. (A)

     69,729         6,431,803   

Amgen, Inc.

     96,719         9,542,297   

Biogen IDEC, Inc. (A)

     62,528         13,456,026   

Celgene Corp. (A)

     83,240         9,731,588   

Gilead Sciences, Inc. (A)

     247,957         12,697,878   

Vertex Pharmaceuticals, Inc. (A)

     106,290         8,489,382   

Capital Markets - 1.3%

     

Goldman Sachs Group, Inc.

     39,998         6,049,698   

Morgan Stanley

     192,059         4,692,001   

Chemicals - 2.3%

     

Monsanto Co.

     169,950         16,791,060   

Sherwin-Williams Co.

     13,923         2,458,802   

Commercial Services & Supplies - 0.4%

     

ADT Corp. (A) (B)

     42,906         1,709,804   

Tyco International, Ltd.

     52,919         1,743,681   

Communications Equipment - 3.3%

     

Cisco Systems, Inc.

     1,056,452         25,682,348   

Emulex Corp. (A)

     100,911         657,940   

QUALCOMM, Inc.

     31,153         1,902,825   

Computers & Peripherals - 4.7%

     

Apple, Inc.

     49,589         19,641,211   

EMC Corp.

     175,965         4,156,293   

NetApp, Inc. (A)

     223,538         8,445,266   

QLogic Corp. (A)

     106,397         1,017,155   

SanDisk Corp. (A)

     64,090         3,915,899   

Western Digital Corp.

     38,160         2,369,355   

Consumer Finance - 0.8%

     

American Express Co.

     84,813         6,340,620   

Diversified Consumer Services - 0.0% (C)

     

ITT Educational Services, Inc. (A) (B)

     16,673         406,821   

Diversified Financial Services - 1.3%

     

Bank of America Corp.

     407,915         5,245,787   

IntercontinentalExchange, Inc. (A)

     7,092         1,260,674   

JPMorgan Chase & Co.

     88,630         4,678,778   

Diversified Telecommunication Services - 1.2%

  

   

Verizon Communications, Inc.

     202,832         10,210,563   

Energy Equipment & Services - 1.4%

     

FMC Technologies, Inc. (A)

     63,973         3,562,017   

Oceaneering International, Inc.

     42,844         3,093,337   

Schlumberger, Ltd.

     28,426         2,037,007   

Transocean, Ltd.

     61,121         2,930,752   

Food & Staples Retailing - 4.3%

     

Costco Wholesale Corp.

     126,821         14,022,598   

CVS Caremark Corp.

     80,966         4,629,636   

Wal-Mart Stores, Inc.

     144,576         10,769,466   

Whole Foods Market, Inc.

     136,754         7,040,096   
     Shares      Value  

Food Products - 1.1%

     

Green Mountain Coffee Roasters, Inc. -
Series C (A) (B)

     39,570         $  2,970,124   

Mondelez International, Inc. - Class A

     213,358         6,087,104   

Health Care Equipment & Supplies - 3.7%

     

Abbott Laboratories

     317,390         11,070,563   

Becton Dickinson and Co.

     14,729         1,455,667   

Cie Generale D’optique Essilor International SA

     18,990         2,020,476   

CR Bard, Inc.

     19,519         2,121,325   

Intuitive Surgical, Inc. (A)

     8,118         4,112,417   

Medtronic, Inc.

     120,205         6,186,951   

Zimmer Holdings, Inc. - Class A

     53,837         4,034,545   

Health Care Providers & Services - 2.2%

     

Aetna, Inc.

     50,859         3,231,581   

Express Scripts Holding Co. (A)

     107,757         6,647,529   

McKesson Corp.

     37,285         4,269,133   

UnitedHealth Group, Inc.

     67,890         4,445,437   

Hotels, Restaurants & Leisure - 2.9%

     

Chipotle Mexican Grill, Inc. - Class A (A)

     13,654         4,974,835   

Dunkin’ Brands Group, Inc.

     122,613         5,250,289   

Starbucks Corp.

     80,488         5,271,159   

Starwood Hotels & Resorts Worldwide, Inc.

     60,555         3,826,470   

Wyndham Worldwide Corp.

     48,632         2,783,209   

Wynn Resorts, Ltd.

     16,001         2,048,128   

Household Products - 0.2%

     

Colgate-Palmolive Co.

     26,410         1,513,029   

Industrial Conglomerates - 1.6%

     

3M Co.

     64,665         7,071,117   

Danaher Corp.

     72,726         4,603,556   

General Electric Co.

     88,789         2,059,017   

Internet & Catalog Retail - 3.8%

     

Amazon.com, Inc. (A)

     61,379         17,044,334   

NetFlix, Inc. (A)

     9,401         1,984,457   

priceline.com, Inc. (A)

     16,113         13,327,546   

Internet Software & Services - 7.9%

     

eBay, Inc. (A)

     194,204         10,044,231   

Facebook, Inc. - Class A (A)

     189,497         4,710,895   

Google, Inc. - Class A (A)

     36,186         31,857,069   

IAC/InterActiveCorp

     110,314         5,246,534   

LinkedIn Corp. - Class A (A)

     48,802         8,701,397   

Rackspace Hosting, Inc. (A)

     46,798         1,773,176   

Yahoo! Inc. (A)

     165,831         4,164,016   

IT Services - 5.2%

     

Alliance Data Systems Corp. (A) (B)

     8,893         1,609,900   

International Business Machines Corp.

     39,825         7,610,956   

Mastercard, Inc. - Class A

     27,315         15,692,467   

Paychex, Inc. (B)

     62,250         2,273,370   

Visa, Inc. - Class A

     92,135         16,837,671   

Life Sciences Tools & Services - 0.7%

     

Bruker Corp. (A)

     81,188         1,311,186   

Illumina, Inc. (A) (B)

     65,857         4,928,738   

Machinery - 0.9%

     

Dover Corp.

     35,773         2,778,131   

Illinois Tool Works, Inc. - Class A

     18,928         1,309,250   

Parker Hannifin Corp.

     40,882         3,900,143   

Media - 3.8%

     

Comcast Corp. - Class A

     156,514         6,554,806   

Discovery Communications, Inc. - Series A (A)

     54,119         4,178,528   

News Corp. - Class A

     138,492         4,514,839   

Omnicom Group, Inc. (B)

     81,045         5,095,299   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    60

Transamerica Partners Large Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Media (continued)

     

Sirius XM Radio, Inc.

     900,096         $  3,015,322   

Walt Disney Co. - Class A

     135,188         8,537,122   

Metals & Mining - 0.1%

     

Allied Nevada Gold Corp. (A) (B)

     66,709         432,274   

Multiline Retail - 0.4%

     

Dollar Tree, Inc. (A)

     59,314         3,015,524   

Oil, Gas & Consumable Fuels - 1.4%

     

Concho Resources, Inc. (A)

     57,265         4,794,226   

EOG Resources, Inc.

     31,247         4,114,605   

Valero Energy Corp.

     72,714         2,528,266   

Personal Products - 0.9%

     

Estee Lauder Cos., Inc. - Class A

     118,272         7,778,749   

Pharmaceuticals - 4.0%

     

Allergan, Inc.

     55,100         4,641,624   

Bristol-Myers Squibb Co.

     90,082         4,025,764   

Eli Lilly & Co.

     112,990         5,550,069   

Johnson & Johnson

     64,080         5,501,909   

Merck & Co., Inc.

     85,605         3,976,352   

Novo Nordisk A/S - ADR

     45,532         7,056,094   

Perrigo Co.

     28,318         3,426,478   

Real Estate Investment Trusts - 0.4%

     

American Tower Corp. - Class A

     51,694         3,782,450   

Road & Rail - 1.8%

     

Canadian Pacific Railway, Ltd.

     21,995         2,669,753   

Hertz Global Holdings, Inc. (A)

     103,953         2,578,034   

Kansas City Southern

     26,910         2,851,384   

Union Pacific Corp.

     46,424         7,162,295   

Semiconductors & Semiconductor Equipment - 3.5%

  

   

Altera Corp.

     150,029         4,949,457   

ARM Holdings PLC - ADR

     108,613         3,929,618   

Avago Technologies, Ltd. - Class A

     70,670         2,641,645   

Broadcom Corp. - Class A

     226,310         7,640,226   

Intel Corp.

     112,473         2,724,096   

Microchip Technology, Inc. (B)

     93,517         3,483,508   

Xilinx, Inc.

     113,243         4,485,555   

Software - 7.6%

     

BMC Software, Inc. (A)

     49,368         2,228,472   

Check Point Software Technologies, Ltd. (A) (B)

     94,452         4,692,375   

Intuit, Inc.

     34,414         2,100,286   

Microsoft Corp.

     591,311         20,417,969   

NetSuite, Inc. (A)

     22,076         2,025,252   

Oracle Corp.

     300,204         9,222,267   

Red Hat, Inc. (A)

     143,112         6,843,616   

Salesforce.com, Inc. (A)

     157,655         6,019,268   

Splunk, Inc. (A)

     65,270         3,025,917   

Tableau Software Inc - Class A (A)

     1,338         74,152   

VMware, Inc. - Class A (A)

     70,197         4,702,497   

Workday, Inc. - Class A (A)

     46,927         3,007,552   

Specialty Retail - 6.2%

     

Buckle, Inc. (B)

     55,336         2,878,579   

CST Brands, Inc. (A) (B)

     8,082         249,006   

Gap, Inc. - Class A

     37,022         1,544,928   

Home Depot, Inc.

     125,532         9,724,964   

Inditex SA

     59,621         7,360,119   

Lowe’s Cos., Inc.

     218,450         8,934,605   

O’Reilly Automotive, Inc. (A)

     51,343         5,782,249   

PetSmart, Inc. - Class A

     29,854         1,999,919   

TJX Cos., Inc.

     277,313         13,882,289   
     Shares      Value  

Textiles, Apparel & Luxury Goods - 2.2%

  

   

Lululemon Athletica, Inc. (A) (B)

     32,578         $  2,134,511   

NIKE, Inc. - Class B

     145,321         9,254,041   

Ralph Lauren Corp. - Class A

     39,702         6,897,825   

Tobacco - 0.8%

     

Philip Morris International, Inc.

     73,985         6,408,581   

Wireless Telecommunication Services - 0.3%

  

   

Crown Castle International Corp. (A)

     34,760         2,516,276   
    

 

 

  

Total Common Stocks (cost $684,122,865)

  

      842,369,589   
    

 

 

  

SECURITIES LENDING COLLATERAL - 3.4%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (D)

     28,300,939         28,300,939   
    

 

 

  

Total Securities Lending Collateral
(cost $28,300,939)

   

      28,300,939   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 0.2%

     

State Street Bank & Trust Co.
0.03% (D), dated 06/28/2013, to be repurchased at $2,020,910 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation, 3.25%, due 05/01/2041, and with a value of $2,063,136.

     $  2,020,905         2,020,905   
    

 

 

  

Total Repurchase Agreement (cost $2,020,905)

  

      2,020,905   
    

 

 

  
    

Total Investment Securities (cost $714,444,709) (E)

  

      872,691,433   

Other Assets and Liabilities - Net

        (28,547,750 ) 
    

 

 

  

Net Assets

       $  844,143,683   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    61

Transamerica Partners Large Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) Non-income producing security.
(B) All or a portion of this security is on loan. The value of all securities on loan is $27,687,874. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(C) Percentage rounds to less than 0.1%.
(D) Rate shown reflects the yield at June 30, 2013.
(E) Aggregate cost for federal income tax purposes is $714,444,709. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $167,630,892 and $9,384,168, respectively. Net unrealized appreciation for tax purposes is $158,246,724.

DEFINITION:

 

ADR    American Depositary Receipt

VALUATION SUMMARY: (F)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 826,268,245      $ 16,101,344      $ —      $ 842,369,589   

Securities Lending Collateral

     28,300,939        —        —        28,300,939   

Repurchase Agreement

     —        2,020,905        —        2,020,905   

Total Investment Securities

   $ 854,569,184      $ 18,122,249      $ —      $ 872,691,433   
       
     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

LIABILITIES

                                

Other Liabilities (G)

                                

Collateral for Securities on Loan

   $ —      $ (28,300,939 )    $ —      $ (28,300,939 ) 

Due to Custodian

     (373,399 )      —        —        (373,399 ) 

Total Other Liabilities

   $ (373,399 )    $ (28,300,939 )    $ —      $ (28,674,338 ) 

 

(F) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(G) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    62

Transamerica Partners Mid Value Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 97.8%

     

Automobiles - 1.0%

     

Harley-Davidson, Inc.

     164,550         $  9,020,631   

Beverages - 2.1%

     

Beam, Inc.

     199,300         12,577,823   

Brown-Forman Corp. - Class B

     30,350         2,050,143   

Dr. Pepper Snapple Group, Inc.

     82,400         3,784,632   

Building Products - 0.9%

     

Fortune Brands Home & Security, Inc.

     92,500         3,583,450   

Owens Corning, Inc. (A)

     114,900         4,490,292   

Capital Markets - 6.7%

     

Ameriprise Financial, Inc.

     81,900         6,624,072   

Charles Schwab Corp. (B)

     211,400         4,488,022   

Invesco, Ltd.

     464,600         14,774,280   

Northern Trust Corp.

     148,600         8,603,940   

Raymond James Financial, Inc.

     168,600         7,246,428   

State Street Corp.

     189,650         12,367,076   

T. Rowe Price Group, Inc.

     64,400         4,710,860   

Chemicals - 5.4%

     

Airgas, Inc. (B)

     99,600         9,507,816   

Albemarle Corp. (B)

     83,620         5,208,690   

Ashland, Inc.

     84,300         7,039,050   

FMC Corp. - Class A

     221,600         13,530,896   

Huntsman Corp.

     329,150         5,450,724   

Sherwin-Williams Co.

     14,800         2,613,680   

Sigma-Aldrich Corp. (B)

     53,400         4,291,224   

Commercial Banks - 6.3%

     

CIT Group, Inc. (A)

     178,900         8,342,107   

City National Corp. (B)

     52,300         3,314,251   

Cullen/Frost Bankers, Inc. (B)

     33,700         2,250,149   

Fifth Third Bancorp

     350,800         6,331,940   

First Republic Bank - Class A

     57,000         2,193,360   

Huntington Bancshares, Inc. - Class A

     238,200         1,877,016   

KeyCorp

     832,300         9,188,592   

M&T Bank Corp.

     49,300         5,509,275   

SunTrust Banks, Inc.

     424,350         13,396,730   

Zions Bancorporation

     97,500         2,815,800   

Commercial Services & Supplies - 1.5%

     

Republic Services, Inc. - Class A

     38,600         1,310,084   

Tyco International, Ltd.

     357,100         11,766,445   

Containers & Packaging - 2.9%

     

Ball Corp.

     177,900         7,389,966   

MeadWestvaco Corp.

     286,200         9,762,282   

Rock-Tenn Co. - Class A

     40,700         4,065,116   

Silgan Holdings, Inc.

     92,000         4,320,320   

Distributors - 0.4%

     

Genuine Parts Co. (B)

     48,200         3,762,974   

Electric Utilities - 2.6%

     

Edison International

     87,800         4,228,448   

Northeast Utilities

     197,600         8,303,152   

NV Energy, Inc.

     46,800         1,097,928   

Westar Energy, Inc. (B)

     138,100         4,413,676   

Xcel Energy, Inc.

     160,564         4,550,384   

Electrical Equipment - 1.3%

     

AMETEK, Inc. - Class A

     104,650         4,426,695   

Hubbell, Inc. - Class B

     28,700         2,841,300   

Regal Beloit Corp.

     69,200         4,486,928   
     Shares      Value  

Electronic Equipment & Instruments - 1.5%

     

Amphenol Corp. - Class A

     80,120         $  6,244,553   

Arrow Electronics, Inc. (A)

     143,000         5,698,550   

CDW Corp/DE (A)

     49,000         912,380   

Energy Equipment & Services - 1.3%

     

Cameron International Corp. (A)

     88,950         5,440,182   

Oceaneering International, Inc.

     79,600         5,747,120   

Food Products - 1.2%

     

Hershey Co.

     102,290         9,132,451   

JM Smucker Co.

     11,600         1,196,540   

Gas Utilities - 0.9%

     

EQT Corp.

     60,720         4,819,346   

Questar Corp.

     110,400         2,633,040   

Health Care Equipment & Supplies - 2.1%

     

CareFusion Corp. - Class A (A)

     301,250         11,101,063   

St. Jude Medical, Inc.

     152,200         6,944,886   

Health Care Providers & Services - 4.2%

     

AmerisourceBergen Corp. - Class A

     73,100         4,081,173   

Cardinal Health, Inc.

     205,300         9,690,160   

CIGNA Corp.

     209,800         15,208,402   

Henry Schein, Inc. (A) (B)

     31,900         3,054,425   

Humana, Inc. - Class A

     59,280         5,002,046   

Hotels, Restaurants & Leisure - 1.6%

     

Darden Restaurants, Inc. (B)

     40,199         2,029,246   

Marriott International, Inc. - Class A

     106,166         4,285,921   

Starwood Hotels & Resorts Worldwide, Inc.

     62,700         3,962,013   

Yum! Brands, Inc.

     52,400         3,633,416   

Household Durables - 2.5%

     

Jarden Corp. (A)

     45,800         2,003,750   

Mohawk Industries, Inc. (A)

     41,300         4,645,837   

Newell Rubbermaid, Inc.

     313,600         8,232,000   

Whirlpool Corp.

     57,700         6,598,572   

Household Products - 0.5%

     

Energizer Holdings, Inc.

     38,800         3,899,788   

Industrial Conglomerates - 0.6%

     

Carlisle Cos., Inc.

     78,379         4,883,795   

Insurance - 5.9%

     

Alleghany Corp. (A)

     10,974         4,206,444   

Brown & Brown, Inc.

     229,300         7,392,632   

Chubb Corp. - Class A

     83,440         7,063,196   

Hartford Financial Services Group, Inc.

     114,000         3,524,880   

Loews Corp.

     165,100         7,330,440   

Marsh & McLennan Cos., Inc.

     187,700         7,492,984   

Old Republic International Corp.

     216,100         2,781,207   

OneBeacon Insurance Group, Ltd. - Class A

     19,615         284,025   

Unum Group

     146,000         4,288,020   

WR Berkley Corp.

     90,700         3,706,002   

XL Group PLC - Class A

     134,400         4,075,008   

Internet & Catalog Retail - 0.8%

     

Expedia, Inc.

     70,950         4,267,642   

TripAdvisor, Inc. (A)

     42,350         2,577,845   

IT Services - 2.0%

     

Jack Henry & Associates, Inc.

     118,900         5,603,757   

Teradata Corp. (A)

     233,850         11,746,286   

Machinery - 5.6%

     

Dover Corp.

     227,200         17,644,352   

IDEX Corp.

     94,200         5,068,902   

Pentair, Ltd.

     236,990         13,671,953   

Rexnord Corp. (A) (B)

     109,300         1,841,705   

Snap-on, Inc.

     52,806         4,719,800   

Stanley Black & Decker, Inc.

     81,200         6,276,760   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    63

Transamerica Partners Mid Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Media - 2.5%

     

Cablevision Systems Corp. - Class A (B)

     53,660         $  902,561   

CBS Corp. - Class B

     66,800         3,264,516   

Clear Channel Outdoor Holdings, Inc. - Class A (A)

     113,561         847,165   

DISH Network Corp. - Class A

     124,300         5,285,236   

Gannett Co., Inc.

     63,300         1,548,318   

Interpublic Group of Cos., Inc.

     676,200         9,838,710   

Multi-Utilities - 4.0%

     

CenterPoint Energy, Inc.

     185,080         4,347,529   

CMS Energy Corp.

     168,100         4,567,277   

NiSource, Inc. - Class B

     592,800         16,977,792   

Sempra Energy

     68,300         5,584,208   

Wisconsin Energy Corp.

     92,000         3,771,080   

Multiline Retail - 1.4%

     

Family Dollar Stores, Inc.

     89,300         5,564,283   

Kohl’s Corp. (B)

     134,860         6,811,779   

Oil, Gas & Consumable Fuels - 4.9%

     

Cameco Corp. - Class A (B)

     470,650         9,723,629   

Devon Energy Corp. - Class A

     65,600         3,403,328   

Energen Corp.

     135,821         7,098,005   

Marathon Oil Corp.

     255,200         8,824,816   

PBF Energy, Inc. - Class A (B)

     91,100         2,359,490   

QEP Resources, Inc.

     103,500         2,875,230   

Whiting Petroleum Corp. (A)

     120,400         5,549,236   

Williams Cos., Inc.

     109,300         3,548,971   

Pharmaceuticals - 1.5%

     

Hospira, Inc. (A) (B)

     142,520         5,459,941   

Zoetis, Inc. - Class A

     246,300         7,608,207   

Professional Services - 2.6%

     

Dun & Bradstreet Corp. (B)

     107,075         10,434,459   

Equifax, Inc.

     79,000         4,655,470   

Experian PLC - ADR

     450,100         7,872,249   

Real Estate Investment Trusts - 1.8%

     

Annaly Capital Management, Inc.

     171,100         2,150,727   

HCP, Inc.

     80,400         3,653,376   

Kimco Realty Corp.

     110,600         2,370,158   

Regency Centers Corp.

     64,000         3,251,840   

Vornado Realty Trust - Class A

     55,937         4,634,380   

Real Estate Management & Development - 1.0%

  

   

Brookfield Office Properties, Inc. (B)

     168,000         2,802,240   

CBRE Group, Inc. - Class A (A)

     260,900         6,094,624   

Semiconductors & Semiconductor Equipment - 3.8%

  

   

Analog Devices, Inc. - Class A

     145,440         6,553,526   

Avago Technologies, Ltd. - Class A

     134,500         5,027,610   

KLA-Tencor Corp.

     43,100         2,401,963   

LSI Corp. (A)

     1,069,600         7,636,944   

Microchip Technology, Inc. (B)

     179,100         6,671,475   

Xilinx, Inc.

     135,300         5,359,233   

Software - 2.0%

     

PTC, Inc. (A)

     252,750         6,199,958   

Synopsys, Inc. (A)

     324,150         11,588,362   

Specialty Retail - 5.7%

     

Advance Auto Parts, Inc.

     101,500         8,238,755   

AutoZone, Inc. (A)

     16,000         6,779,040   

Bed Bath & Beyond, Inc. (A)

     85,000         6,026,500   

Gap, Inc. - Class A

     146,100         6,096,753   

PetSmart, Inc. - Class A

     53,800         3,604,062   

Tiffany & Co. (B)

     36,200         2,636,808   

TJX Cos., Inc.

     83,000         4,154,980   

Williams-Sonoma, Inc. - Class A

     229,750         12,840,728   
     Shares      Value  

Textiles, Apparel & Luxury Goods - 1.8%

  

   

PVH Corp.

     96,950         $  12,123,598   

V.F. Corp.

     19,100         3,687,446   

Thrifts & Mortgage Finance - 0.5%

     

Capitol Federal Financial, Inc.

     25,000         303,500   

Hudson City Bancorp, Inc.

     130,700         1,197,212   

People’s United Financial, Inc. (B)

     209,500         3,121,550   

Trading Companies & Distributors - 1.3%

  

   

MSC Industrial Direct Co., Inc. - Class A

     151,000         11,696,460   

Water Utilities - 1.0%

     

American Water Works Co., Inc.

     204,000         8,410,920   

Wireless Telecommunication Services - 0.2%

  

   

Telephone & Data Systems, Inc.

     56,163         1,384,418   
    

 

 

  

Total Common Stocks (cost $684,491,597)

  

      857,975,773   
    

 

 

  

SECURITIES LENDING COLLATERAL - 7.0%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio,

    0.18% (C)

     61,759,738         61,759,738   
    

 

 

  

Total Securities Lending Collateral

    (cost $61,759,738)

  

  

      61,759,738   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 2.2%

     

State Street Bank & Trust Co. 0.03% (C),
dated 06/28/2013, to be repurchased
at $19,523,050 on 07/01/2013.
Collateralized by U.S. Government
Agency Obligations,
2.50% - 3.25%, due
05/01/2041 - 03/15/2043, and with a
total value of $19,918,635.

     $  19,523,001         19,523,001   
    

 

 

  

Total Repurchase Agreement (cost $19,523,001)

  

      19,523,001   
    

 

 

  
    

Total Investment Securities (cost $765,774,336) (D)

  

      939,258,512   

Other Assets and Liabilities - Net

        (61,636,350 ) 
    

 

 

  

Net Assets

       $877,622,162   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    64

Transamerica Partners Mid Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  All or a portion of this security is on loan. The value of all securities on loan is $60,311,134. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(C) Rate shown reflects the yield at June 30, 2013.
(D) Aggregate cost for federal income tax purposes is $765,774,336. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $177,514,519 and $4,030,343, respectively. Net unrealized appreciation for tax purposes is $173,484,176.

DEFINITION:

 

ADR    American Depositary Receipt

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 857,975,773      $ —      $ —      $ 857,975,773   

Securities Lending Collateral

     61,759,738        —        —        61,759,738   

Repurchase Agreement

     —        19,523,001        —        19,523,001   

Total Investment Securities

   $ 919,735,511      $ 19,523,001      $ —      $ 939,258,512   
                                 

Other Assets (F)

                                

Cash

   $ 176      $ —      $ —      $ 176   

Total Other Assets

   $ 176      $ —      $ —      $ 176   
       
     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

LIABILITIES

                                

Other Liabilities (F)

                                

Collateral for Securities on Loan

   $ —      $ (61,759,738 )    $ —      $ (61,759,738 ) 

Total Other Liabilities

   $ —      $ (61,759,738 )    $ —      $ (61,759,738 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    65

Transamerica Partners Mid Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 99.4%

     

Aerospace & Defense - 5.2%

     

Rockwell Collins, Inc.

     68,800         $  4,362,608   

Teledyne Technologies, Inc. (A)

     59,600         4,610,060   

Biotechnology - 4.5%

     

BioMarin Pharmaceutical, Inc. (A)

     77,600         4,329,304   

United Therapeutics Corp. (A)

     52,800         3,475,296   

Capital Markets - 2.1%

     

Evercore Partners, Inc. - Class A

     93,400         3,668,752   

Chemicals - 1.9%

     

Sigma-Aldrich Corp.

     40,600         3,262,616   

Commercial Banks - 2.4%

     

Cullen/Frost Bankers, Inc.

     62,500         4,173,125   

Commercial Services & Supplies - 2.5%

     

Stericycle, Inc. (A)

     39,000         4,306,770   

Containers & Packaging - 2.0%

     

Rock-Tenn Co. - Class A

     34,300         3,425,884   

Electrical Equipment - 2.7%

     

AMETEK, Inc. - Class A

     110,000         4,653,000   

Electronic Equipment & Instruments - 2.6%

  

   

Trimble Navigation, Ltd. (A)

     172,700         4,491,927   

Energy Equipment & Services - 1.9%

     

Atwood Oceanics, Inc. (A)

     63,200         3,289,560   

Food & Staples Retailing - 4.7%

     

Casey’s General Stores, Inc.

     70,100         4,217,216   

Fresh Market, Inc. (A)

     77,900         3,873,188   

Food Products - 3.3%

     

J&J Snack Foods Corp.

     72,900         5,671,620   

Health Care Equipment & Supplies - 6.7%

  

   

Align Technology, Inc. (A)

     114,900         4,255,896   

Cyberonics, Inc. (A)

     80,700         4,193,172   

Hologic, Inc. (A)

     162,700         3,140,110   

Health Care Providers & Services - 2.2%

     

Catamaran Corp. (A)

     76,500         3,727,080   

Hotels, Restaurants & Leisure - 2.7%

     

Cheesecake Factory, Inc.

     110,700         4,637,223   

Internet Software & Services - 2.6%

     

ValueClick, Inc. (A)

     183,100         4,518,908   

IT Services - 2.6%

     

NeuStar, Inc. - Class A (A)

     91,400         4,449,352   

Machinery - 2.5%

     

Snap-on, Inc.

     47,400         4,236,612   

Media - 2.6%

     

Scripps Networks Interactive, Inc. - Class A

     68,200         4,553,032   

Metals & Mining - 2.5%

     

Compass Minerals International, Inc.

     50,100         4,234,953   

Multiline Retail - 2.2%

     

Dillard’s, Inc. - Class A

     46,400         3,803,408   

Oil, Gas & Consumable Fuels - 3.6%

     

Cimarex Energy Co.

     42,800         2,781,572   

Whiting Petroleum Corp. (A)

     73,200         3,373,788   

Professional Services - 2.6%

     

Equifax, Inc.

     75,100         4,425,643   

Real Estate Investment Trusts - 1.8%

     

Colony Financial, Inc.

     155,900         3,100,851   

Software - 8.3%

     

ACI Worldwide, Inc. (A)

     96,200         4,471,376   

PTC, Inc. (A)

     202,800         4,974,684   

Solera Holdings, Inc.

     88,600         4,930,590   
     Shares      Value  

Specialty Retail - 10.1%

     

Dick’s Sporting Goods, Inc.

     72,900         $  3,649,374   

DSW, Inc. - Class A

     76,000         5,583,720   

Pier 1 Imports, Inc.

     145,200         3,410,748   

Sally Beauty Holdings, Inc. (A)

     153,800         4,783,180   

Textiles, Apparel & Luxury Goods - 6.0%

     

Carter’s, Inc.

     65,900         4,881,213   

Under Armour, Inc. - Class A (A)

     91,400         5,457,494   

Thrifts & Mortgage Finance - 2.0%

     

Ocwen Financial Corp. - Class B (A)

     84,100         3,466,602   

Wireless Telecommunication Services - 2.6%

  

   

Telephone & Data Systems, Inc.

     181,100         4,464,115   
    

 

 

  

Total Common Stocks (cost $171,570,000)

  

      171,315,622   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 1.0%

     

State Street Bank & Trust Co.
0.03% (B), dated 06/28/2013, to be repurchased at $1,768,327 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation,
3.25%, due 05/01/2041, and with a value of $1,804,869.

     $  1,768,323         1,768,323   
    

 

 

  

Total Repurchase Agreement (cost $1,768,323)

  

      1,768,323   
    

 

 

  
    

Total Investment Securities (cost $173,338,323) (C)

  

      173,083,945   

Other Assets and Liabilities - Net

        (704,717 ) 
    

 

 

  

Net Assets

        $172,379,228   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    66

Transamerica Partners Mid Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) Non-income producing security.
(B) Rate shown reflects the yield at June 30, 2013.
(C) Aggregate cost for federal income tax purposes is $173,338,323. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $5,336 and $259,714, respectively. Net unrealized depreciation for tax purposes is $254,378.

VALUATION SUMMARY: (D)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 171,315,622      $ —      $ —      $ 171,315,622   

Repurchase Agreement

     —        1,768,323        —        1,768,323   

Total Investment Securities

   $ 171,315,622      $ 1,768,323      $ —      $ 173,083,945   

 

(D) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    67

Transamerica Partners Small Value Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

 

     Shares      Value  

COMMON STOCKS - 96.6%

     

Aerospace & Defense - 1.3%

     

Cubic Corp.

     20,400         $  981,240   

Air Freight & Logistics - 2.3%

  

   

Atlas Air Worldwide Holdings, Inc. (A)

     22,000         962,720   

UTi Worldwide, Inc. (B)

     49,300         811,971   

Chemicals - 4.3%

  

   

Innospec, Inc.

     23,200         932,176   

Koppers Holdings, Inc. (B)

     17,100         652,878   

Sensient Technologies Corp.

     17,900         724,413   

Zep, Inc.

     59,800         946,634   

Commercial Banks - 10.2%

  

   

First Busey Corp. - Class B (B)

     112,430         505,935   

First Midwest Bancorp, Inc. (B)

     80,500         1,104,460   

First Niagara Financial Group, Inc.

     80,610         811,743   

Flushing Financial Corp. - Class A (B)

     38,433         632,223   

Hancock Holding Co. (B)

     22,100         664,547   

International Bancshares Corp. (B)

     58,600         1,323,188   

MB Financial, Inc.

     33,700         903,160   

Webster Financial Corp. (B)

     51,900         1,332,792   

Westamerica Bancorporation (B)

     9,300         424,917   

Commercial Services & Supplies - 6.4%

  

   

ACCO Brands Corp. (A) (B)

     139,400         886,584   

G&K Services, Inc. - Class A (B)

     30,900         1,470,840   

McGrath RentCorp. (B)

     1,300         44,408   

Standard Parking Corp. (A) (B)

     40,200         862,692   

United Stationers, Inc. (B)

     47,190         1,583,224   

Computers & Peripherals - 1.7%

  

   

Diebold, Inc. (B)

     38,400         1,293,696   

Containers & Packaging - 2.3%

  

   

Aptargroup, Inc. (B)

     18,200         1,004,822   

Greif, Inc. - Class A (B)

     13,400         705,778   

Diversified Consumer Services - 1.7%

  

   

Matthews International Corp. - Class A (B)

     34,200         1,289,340   

Electric Utilities - 1.0%

  

   

UNS Energy Corp.

     16,100         720,153   

Electrical Equipment - 4.2%

  

   

Acuity Brands, Inc. (B)

     9,230         697,050   

Belden, Inc. (B)

     48,900         2,441,577   

Electronic Equipment & Instruments - 3.3%

  

   

Coherent, Inc.

     12,600         693,882   

MTS Systems Corp. (B)

     17,032         964,011   

ScanSource, Inc. (A)

     26,100         835,200   

Energy Equipment & Services - 2.8%

  

   

Bristow Group, Inc.

     5,800         378,856   

Era Group, Inc. (A)

     27,740         725,401   

SEACOR Holdings, Inc.

     12,540         1,041,447   

Food & Staples Retailing - 1.4%

  

   

Casey’s General Stores, Inc. (B)

     17,200         1,034,752   

Food Products - 0.8%

  

   

Post Holdings, Inc. (A)

     14,700         641,802   

Gas Utilities - 3.3%

  

   

Atmos Energy Corp. (B)

     23,400         960,804   

Laclede Group, Inc. (B)

     13,600         620,976   

New Jersey Resources Corp. (B)

     7,400         307,322   

WGL Holdings, Inc. (B)

     13,500         583,470   

Health Care Equipment & Supplies - 3.2%

  

   

Haemonetics Corp. (A) (B)

     4,200         173,670   

ICU Medical, Inc. - Class B (A) (B)

     18,700         1,347,522   

STERIS Corp. (B)

     21,700         930,496   
     Shares      Value  

Health Care Providers & Services - 2.9%

  

   

Amsurg Corp. - Class A (A)

     40,300         $  1,414,530   

Corvel Corp. (A) (B)

     27,800         813,706   

Health Care Technology - 1.1%

  

   

Allscripts Healthcare Solutions, Inc. (A) (B)

     61,600         797,104   

Hotels, Restaurants & Leisure - 2.4%

  

   

CEC Entertainment, Inc.

     36,600         1,502,064   

Choice Hotels International, Inc. (B)

     8,200         325,458   

Household Durables - 2.0%

  

   

Helen of Troy, Ltd. (A)

     39,435         1,513,121   

Industrial Conglomerates - 1.2%

  

   

Carlisle Cos., Inc.

     14,110         879,194   

Insurance - 5.5%

  

   

AMERISAFE, Inc.

     20,300         657,517   

Assured Guaranty, Ltd.

     39,700         875,782   

National Financial Partners Corp. (A)

     22,900         579,599   

Platinum Underwriters Holdings, Ltd. (B)

     13,700         783,914   

Primerica, Inc.

     32,700         1,224,288   

IT Services - 2.5%

  

   

Forrester Research, Inc. (B)

     32,420         1,189,490   

MAXIMUS, Inc. - Class A

     9,700         722,456   

Life Sciences Tools & Services - 3.9%

  

   

Charles River Laboratories International, Inc. (A)

     41,800         1,715,054   

ICON PLC (A)

     35,200         1,247,136   

Machinery - 5.5%

  

   

Albany International Corp. - Class A

     45,300         1,493,994   

ESCO Technologies, Inc. (B)

     30,700         994,066   

Mueller Industries, Inc.

     33,000         1,664,190   

Multiline Retail - 1.6%

  

   

Fred’s, Inc. - Class A (B)

     76,100         1,178,789   

Office Electronics - 1.2%

  

   

Zebra Technologies Corp. - Class A (A)

     20,100         873,144   

Oil, Gas & Consumable Fuels - 3.1%

  

   

Diamondback Energy, Inc. (A) (B)

     20,600         686,392   

Halcon Resources Corp. (A) (B)

     38,741         219,661   

Scorpio Tankers, Inc.

     163,500         1,468,230   

Paper & Forest Products - 1.1%

  

   

Deltic Timber Corp. (B)

     14,900         861,518   

Real Estate Investment Trusts - 3.3%

  

   

Campus Crest Communities, Inc. (B)

     70,600         814,724   

DiamondRock Hospitality Co. (B)

     66,000         615,120   

Mack-Cali Realty Corp. (B)

     19,200         470,208   

Summit Hotel Properties, Inc.

     62,200         587,790   

Software - 1.0%

  

   

Verint Systems, Inc. (A)

     20,500         727,135   

Specialty Retail - 4.8%

  

   

Ascena Retail Group, Inc. - Class B (A) (B)

     74,600         1,301,770   

Cato Corp. - Class A (B)

     56,170         1,402,003   

Stage Stores, Inc. (B)

     39,100         918,850   

Thrifts & Mortgage Finance - 1.6%

  

   

Northwest Bancshares, Inc. (B)

     89,600         1,210,496   

Trading Companies & Distributors - 1.7%

  

   

GATX Corp. (B)

     27,600         1,309,068   
    

 

 

  

Total Common Stocks (cost $54,086,731)

  

      72,992,333   
    

 

 

  

SECURITIES LENDING COLLATERAL - 25.7%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (C)

     19,459,559         19,459,559   
    

 

 

  

Total Securities Lending Collateral (cost $19,459,559)

  

      19,459,559   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    68

Transamerica Partners Small Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

REPURCHASE AGREEMENT - 2.4%

     

State Street Bank & Trust Co.
0.03% (C), dated 06/28/2013, to be repurchased at $1,785,226 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation, 3.25%, due 05/01/2041, and with a value of $1,822,887.

     $1,785,221         $  1,785,221   
    

 

 

  

Total Repurchase Agreement (cost $1,785,221)

  

      1,785,221   
    

 

 

  
    

Total Investment Securities (cost $75,331,511) (D)

  

      94,237,113   

Other Assets and Liabilities - Net

        (18,673,480 ) 
    

 

 

  

Net Assets

       $  75,563,633   
    

 

 

  

    

 

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B) All or a portion of this security is on loan. The value of all securities on loan is $18,986,673. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(C) Rate shown reflects the yield at June 30, 2013.
(D) Aggregate cost for federal income tax purposes is $75,331,511. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $19,366,836 and $461,234, respectively. Net unrealized appreciation for tax purposes is $18,905,602.

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 72,992,333      $ —      $ —      $ 72,992,333   

Securities Lending Collateral

     19,459,559        —        —        19,459,559   

Repurchase Agreement

     —        1,785,221        —        1,785,221   

Total Investment Securities

   $ 92,451,892      $ 1,785,221      $ —      $ 94,237,113   
       
     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

LIABILITIES

                                

Other Liabilities (F)

                                

Collateral for Securities on Loan

   $ —      $ (19,459,559 )    $ —      $ (19,459,559 ) 

Total Other Liabilities

   $ —      $ (19,459,559 )    $ —      $ (19,459,559 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    69

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 97.5%

     

Aerospace & Defense - 1.4%

     

AAR Corp.

     53,856         $  1,183,755   

Alliant Techsystems, Inc.

     13,984         1,151,303   

Esterline Technologies Corp. (A)

     13,728         992,397   

TASER International, Inc. (A)

     113,592         967,804   

Airlines - 0.7%

     

Republic Airways Holdings, Inc. (A)

     102,912         1,165,993   

SkyWest, Inc.

     75,700         1,024,978   

Auto Components - 1.1%

     

Dana Holding Corp.

     55,296         1,065,001   

Modine Manufacturing Co. (A)

     108,480         1,180,262   

Stoneridge, Inc. (A)

     101,376         1,180,017   

Biotechnology - 1.8%

     

Astex Pharmaceuticals (A)

     265,284         1,090,317   

Myriad Genetics, Inc. (A)

     39,456         1,060,183   

PDL Biopharma, Inc.

     136,512         1,053,873   

Repligen Corp (A)

     125,484         1,033,988   

United Therapeutics Corp. (A)

     16,820         1,107,092   

Building Products - 0.7%

     

Griffon Corp.

     98,112         1,103,760   

PGT, Inc. (A)

     132,548         1,149,191   

Capital Markets - 2.6%

     

Apollo Global Management LLC - Class A

     44,448         1,071,197   

Apollo Investment Corp.

     141,536         1,095,489   

Arlington Asset Investment Corp - Class A

     38,208         1,021,682   

Fortress Investment Group LLC - Class A

     144,096         945,270   

Janus Capital Group, Inc.

     126,048         1,072,668   

Manning & Napier, Inc.

     54,432         966,712   

Och-Ziff Capital Management Group LLC - Class A

     94,464         986,204   

Piper Jaffray Cos. (A)

     29,664         937,679   

Chemicals - 1.7%

     

A. Schulman, Inc.

     36,096         968,095   

Innospec, Inc.

     26,600         1,068,788   

Koppers Holdings, Inc.

     27,888         1,064,764   

Minerals Technologies, Inc.

     24,844         1,027,051   

OM Group, Inc. (A)

     35,520         1,098,278   

Commercial Banks - 4.0%

     

Banner Corp

     31,104         1,051,004   

BBCN Bancorp, Inc.

     76,416         1,086,636   

Central Pacific Financial Corp. (A)

     56,812         1,022,616   

Columbia Banking System, Inc.

     48,000         1,142,880   

First Interstate Bancsystem Inc

     52,896         1,096,534   

First Merchants Corp.

     65,592         1,124,903   

Hanmi Financial Corp. - Class B (A)

     66,220         1,170,107   

International Bancshares Corp.

     50,200         1,133,516   

Pinnacle Financial Partners, Inc. (A)

     42,528         1,093,395   

Sterling Financial Corp

     44,832         1,066,105   

WesBanco, Inc.

     43,200         1,141,776   

Commercial Services & Supplies - 2.9%

     

ABM Industries, Inc.

     43,680         1,070,597   

Deluxe Corp.

     30,528         1,057,795   

G&K Services, Inc. - Class A

     22,900         1,090,040   

Pitney Bowes, Inc.

     73,920         1,085,146   

R.R. Donnelley & Sons Co.

     83,136         1,164,735   

Steelcase Inc - Class A

     82,176         1,198,126   

United Stationers, Inc.

     33,000         1,107,150   

Viad Corp.

     38,464         943,137   
     Shares      Value  

Communications Equipment - 2.4%

     

ARRIS Group Inc (A)

     73,000         $  1,047,550   

Brocade Communications Systems, Inc. (A)

     177,156         1,020,419   

Comtech Telecommunications Corp.

     41,704         1,121,420   

Extreme Networks (A)

     312,864         1,079,381   

Harmonic, Inc. (A)

     170,688         1,083,869   

InterDigital, Inc.

     23,616         1,054,454   

Polycom, Inc. (A)

     101,472         1,069,515   

Computers & Peripherals - 1.5%

     

Electronics for Imaging, Inc. - Class B (A)

     38,496         1,089,052   

Lexmark International, Inc. - Class A

     39,016         1,192,719   

Logitech International SA

     163,200         1,150,560   

Silicon Graphics International Corp. (A)

     74,848         1,001,466   

Construction & Engineering - 1.4%

     

AECOM Technology Corp. (A)

     36,096         1,147,492   

EMCOR Group, Inc.

     28,500         1,158,525   

Pike Electric Corp

     85,056         1,046,189   

Tutor Perini Corp.

     55,968         1,012,461   

Consumer Finance - 0.7%

     

Cash America International, Inc.

     23,808         1,082,312   

DFC Global Corp. (A)

     69,024         953,221   

Containers & Packaging - 1.4%

     

Boise, Inc.

     127,968         1,092,847   

Graphic Packaging Holding Co. (A)

     141,888         1,098,213   

Greif, Inc. - Class A

     20,984         1,105,227   

Sonoco Products Co.

     30,624         1,058,672   

Diversified Consumer Services - 2.0%

     

Apollo Group, Inc. - Class A (A)

     53,952         956,029   

Capella Education Co. (A)

     24,288         1,011,595   

Corinthian Colleges, Inc. (A)

     477,696         1,070,039   

DeVry, Inc.

     34,176         1,060,140   

K12, Inc. (A)

     36,192         950,764   

Strayer Education, Inc.

     20,544         1,003,164   

Diversified Financial Services - 1.7%

     

Kirkland’s, Inc. (A)

     63,360         1,092,960   

KKR Financial Holdings LLC

     100,704         1,062,427   

MCG Capital Corp.

     209,856         1,093,350   

PHH Corp. (A)

     49,152         1,001,718   

Prospect Capital Corp.

     100,000         1,080,000   

Diversified Telecommunication Services - 0.7%

  

   

IDT Corp. - Class B

     55,788         1,042,678   

Premiere Global Services, Inc. (A)

     88,896         1,072,974   

Electric Utilities - 1.7%

     

Hawaiian Electric Industries, Inc.

     42,528         1,076,384   

IDACORP Inc

     21,120         1,008,691   

Portland General Electric Co.

     34,924         1,068,325   

UIL Holdings Corp

     27,264         1,042,848   

UNS Energy Corp.

     23,908         1,069,405   

Electrical Equipment - 0.4%

     

First Solar, Inc. (A)

     26,200         1,171,926   

Electronic Equipment & Instruments - 5.4%

     

AVX Corp.

     90,048         1,058,064   

Benchmark Electronics, Inc. (A)

     56,160         1,128,816   

Celestica, Inc. (A)

     114,720         1,084,104   

Checkpoint Systems, Inc. (A)

     81,216         1,152,455   

Fabrinet

     73,536         1,029,504   

Insight Enterprises, Inc. (A)

     57,792         1,025,230   

Itron, Inc. (A)

     26,400         1,120,152   

Methode Electronics, Inc.

     67,392         1,146,338   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    70

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Electronic Equipment & Instruments (continued)

  

Nam Tai Electronics, Inc.

     180,288         $  1,009,613   

Newport Corp. (A)

     79,488         1,107,268   

Plexus Corp. (A)

     36,960         1,104,734   

Sanmina Corp (A)

     82,080         1,177,848   

ScanSource, Inc. (A)

     34,500         1,104,000   

SYNNEX Corp. (A)

     27,374         1,157,373   

Vishay Intertechnology, Inc. (A)

     73,824         1,025,415   

Energy Equipment & Services - 4.2%

     

Bristow Group, Inc.

     16,628         1,086,141   

Exterran Holdings, Inc. (A)

     38,200         1,074,184   

Hercules Offshore, Inc. (A)

     147,648         1,039,442   

ION Geophysical Corp. (A)

     165,984         999,224   

Matrix Service Co. (A)

     62,304         970,696   

McDermott International, Inc. (A)

     116,160         950,189   

Newpark Resources, Inc. (A)

     93,792         1,030,774   

Parker Drilling Co. (A)

     233,472         1,162,690   

Patterson-UTI Energy, Inc.

     53,856         1,042,383   

SEACOR Holdings, Inc.

     14,300         1,187,615   

Tesco Corp. - Class B (A)

     85,056         1,126,992   

TETRA Technologies, Inc. (A)

     112,224         1,151,418   

Food & Staples Retailing - 0.7%

     

Rite Aid Corp (A)

     372,800         1,066,208   

SUPERVALU Inc (A)

     161,852         1,006,719   

Food Products - 1.5%

     

Dean Foods Co. (A)

     100,800         1,010,016   

Pilgrim’s Pride Corp (A)

     89,900         1,343,106   

Sanderson Farms, Inc.

     16,032         1,064,845   

TreeHouse Foods, Inc. (A)

     15,840         1,038,154   

Gas Utilities - 0.7%

     

New Jersey Resources Corp.

     25,378         1,053,948   

WGL Holdings, Inc.

     25,300         1,093,466   

Health Care Equipment & Supplies - 3.5%

     

ArthroCare Corp. (A)

     31,296         1,080,651   

Conmed Corp.

     32,640         1,019,674   

Hill-Rom Holdings, Inc.

     28,512         960,284   

Masimo Corp.

     48,672         1,031,847   

Meridian Bioscience, Inc.

     51,840         1,114,560   

NuVasive, Inc. (A)

     48,576         1,204,199   

PhotoMedex Inc (A)

     63,264         1,008,428   

Quidel Corp (A)

     45,408         1,159,266   

Symmetry Medical, Inc. (A)

     130,560         1,099,315   

Thoratec Corp. (A)

     35,174         1,101,298   

Health Care Providers & Services - 6.1%

     

Addus HomeCare Corp. (A)

     62,640         1,236,513   

AMN Healthcare Services, Inc. (A)

     75,840         1,086,029   

Amsurg Corp. - Class A (A)

     31,500         1,105,650   

Centene Corp. (A)

     21,120         1,107,955   

Chemed Corp.

     15,552         1,126,431   

Five Star Quality Care, Inc. (A)

     204,096         1,144,978   

Gentiva Health Services, Inc.

     101,184         1,007,793   

Healthways, Inc. (A)

     61,344         1,066,159   

Kindred Healthcare, Inc. (A)

     78,240         1,027,291   

LifePoint Hospitals, Inc. (A)

     21,600         1,054,944   

Magellan Health Services, Inc. (A)

     19,776         1,109,038   

Molina Healthcare, Inc. (A)

     27,648         1,027,953   

Owens & Minor, Inc.

     30,624         1,036,010   

PharMerica Corp. (A)

     78,624         1,089,729   
     Shares      Value  

Health Care Providers & Services (continued)

  

Providence Service Corp. (A)

     43,296         $  1,259,481   

Triple-S Management Corp. - B Shares (A)

     50,592         1,086,210   

VCA Antech Inc (A)

     41,568         1,084,509   

Health Care Technology - 0.7%

     

MedAssets, Inc. (A)

     56,544         1,003,090   

Omnicell, Inc. (A)

     59,616         1,225,109   

Hotels, Restaurants & Leisure - 2.2%

     

Bally Technologies, Inc. (A)

     18,720         1,056,183   

CEC Entertainment, Inc.

     27,100         1,112,184   

Red Robin Gourmet Burgers, Inc. (A)

     22,224         1,226,320   

Ruby Tuesday, Inc. (A)

     116,640         1,076,587   

Ruth’s Hospitality Group, Inc.

     93,408         1,127,435   

Sonic Corp. (A)

     79,968         1,164,334   

Insurance - 2.1%

     

American Equity Investment Life Holding Co.

     66,336         1,041,475   

CNO Financial Group, Inc.

     85,920         1,113,523   

FBL Financial Group, Inc. - Class A

     25,536         1,111,072   

Kemper Corp.

     31,200         1,068,600   

Old Republic International Corp.

     85,536         1,100,848   

Protective Life Corp.

     29,188         1,121,111   

Internet & Catalog Retail - 1.5%

     

NutriSystem, Inc.

     114,528         1,349,140   

Overstock.com, Inc. (A)

     40,280         1,135,896   

PetMed Express, Inc.

     81,224         1,023,422   

Valuevision Media, Inc. - Class A (A)

     211,392         1,080,213   

Internet Software & Services - 1.4%

     

comScore, Inc. (A)

     44,832         1,093,452   

Perion Network, Ltd. (A)

     92,448         1,058,530   

United Online, Inc.

     159,840         1,211,587   

ValueClick, Inc. (A)

     41,568         1,025,898   

IT Services - 3.2%

     

Acxiom Corp. (A)

     49,600         1,124,928   

Convergys Corp.

     60,200         1,049,286   

CoreLogic, Inc. (A)

     48,216         1,117,165   

CSG Systems International, Inc.

     48,768         1,058,265   

Euronet Worldwide, Inc. (A)

     33,888         1,079,672   

Forrester Research, Inc.

     31,200         1,144,728   

ManTech International Corp. - Class A

     37,632         982,948   

Sykes Enterprises, Inc. (A)

     72,303         1,139,495   

Unisys Corp. (A)

     54,624         1,205,552   

Leisure Equipment & Products - 1.1%

     

LeapFrog Enterprises, Inc. - Class A (A)

     111,360         1,095,782   

Nautilus, Inc. - Class A (A)

     145,476         1,264,187   

Smith & Wesson Holding Corp. (A)

     107,232         1,070,175   

Life Sciences Tools & Services - 1.4%

     

Albany Molecular Research, Inc. (A)

     99,416         1,180,068   

Charles River Laboratories International,
Inc. (A)

     26,100         1,070,883   

ICON PLC (A)

     30,600         1,084,158   

PAREXEL International Corp. (A)

     23,136         1,062,868   

Machinery - 1.8%

     

Greenhill & Co., Inc. (A)

     46,176         1,125,309   

ITT Corp

     36,864         1,084,170   

Kaydon Corp.

     39,168         1,079,079   

SPX Corp.

     14,592         1,050,332   

Terex Corp. (A)

     40,976         1,077,669   
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    71

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Shares      Value  

Marine - 0.4%

     

Navios Maritime Holdings, Inc.

     215,712         $  1,207,987   

Media - 2.2%

     

CTC Media, Inc.

     86,016         956,498   

Digital Generation, Inc. (A)

     151,104         1,113,636   

Entravision Communications Corp - Class A

     183,872         1,130,813   

Gray Television, Inc. (A)

     162,720         1,171,584   

Meredith Corp.

     26,688         1,273,018   

Valassis Communications, Inc.

     41,376         1,017,436   

Metals & Mining - 2.1%

     

Coeur d’Alene Mines Corp. (A)

     84,480         1,123,584   

Commercial Metals Co.

     71,424         1,054,933   

Materion Corp.

     35,712         967,438   

Olympic Steel, Inc.

     40,896         1,001,952   

Steel Dynamics, Inc.

     73,440         1,094,990   

U.S. Steel Corp.

     59,328         1,040,020   

Multi-Utilities - 0.3%

     

Vectren Corp.

     30,816         1,042,505   

Multiline Retail - 0.3%

     

Big Lots, Inc. (A)

     32,928         1,038,220   

Office Electronics - 0.3%

     

Zebra Technologies Corp. - Class A (A)

     22,700         986,088   

Oil, Gas & Consumable Fuels - 5.3%

  

   

Alon USA Energy, Inc.

     71,508         1,034,006   

Alpha Natural Resources, Inc. (A)

     209,184         1,096,124   

Arch Coal Inc

     286,944         1,084,648   

CVR Energy, Inc.

     22,580         1,070,292   

Delek US Holdings, Inc.

     38,000         1,093,640   

Endeavour International Corp. (A)

     325,824         1,251,164   

Gran Tierra Energy, Inc. (A)

     175,200         1,052,952   

Green Plains Renewable Energy, Inc. (A)

     86,276         1,149,196   

Knightsbridge Tankers, Ltd.

     160,896         1,184,195   

L&L Energy, Inc. (A)

     273,600         979,488   

Pengrowth Energy Corp.

     222,240         1,095,643   

SandRidge Energy, Inc. (A)

     215,808         1,027,246   

StealthGas, Inc. (A)

     102,048         1,122,528   

Stone Energy Corp. (A)

     45,120         993,994   

Western Refining, Inc.

     39,072         1,096,751   

Paper & Forest Products - 0.7%

     

Domtar Corp.

     15,168         1,008,672   

P.H. Glatfelter Co.

     44,664         1,121,066   

Personal Products - 1.0%

     

Medifast, Inc. (A)

     36,960         952,090   

Prestige Brands Holdings, Inc. (A)

     36,000         1,049,040   

USANA Health Sciences Inc (A)

     15,264         1,104,808   

Pharmaceuticals - 0.7%

     

Jazz Pharmaceuticals PLC (A)

     15,840         1,088,683   

Questcor Pharmaceuticals, Inc.

     23,232         1,056,127   

Professional Services - 2.1%

     

Barrett Business Services, Inc.

     19,500         1,018,095   

FTI Consulting, Inc. (A)

     28,416         934,602   

ICF International Inc (A)

     37,152         1,170,659   

Insperity, Inc.

     36,576         1,108,253   

Kelly Services, Inc. - Class A

     60,768         1,061,617   

Navigant Consulting, Inc. (A)

     84,672         1,016,064   
     Shares      Value  

Real Estate Investment Trusts - 4.5%

  

   

Brandywine Realty Trust

     81,696         $  1,104,530   

CBL & Associates Properties, Inc.

     49,440         1,059,005   

Cedar Realty Trust, Inc.

     206,572         1,070,043   

Corporate Office Properties Trust

     42,432         1,082,016   

DuPont Fabros Technology, Inc.

     40,704         983,002   

Franklin Street Properties Corp

     82,176         1,084,723   

Government Properties Income Trust

     39,936         1,007,186   

Inland Real Estate Corp

     99,744         1,019,384   

Investors Real Estate Trust

     126,432         1,087,315   

Kite Realty Group Trust

     190,920         1,151,247   

Mack-Cali Realty Corp.

     45,588         1,116,450   

Mission West Properties, Inc. (B)

     25,700         0   

Piedmont Office Realty Trust, Inc. - Class A

     60,960         1,089,965   

Resource Capital Corp.

     168,192         1,034,381   

Road & Rail - 0.3%

     

Marten Transport, Ltd.

     67,008         1,050,015   

Semiconductors & Semiconductor Equipment - 2.8%

  

Advanced Energy Industries, Inc. (A)

     57,240         996,548   

ATMI, Inc. (A)

     43,968         1,039,843   

Cabot Microelectronics Corp. - Class A

     29,184         963,364   

ChipMOS TECHNOLOGIES Bermuda Ltd

     57,888         1,120,133   

Kulicke & Soffa Industries, Inc. (A)

     89,376         988,499   

Photronics Inc (A)

     130,560         1,052,314   

Silicon Image Inc (A)

     177,312         1,037,275   

SunPower Corp - Class A (A)

     58,560         1,212,192   

Software - 1.4%

     

AVG Technologies NV (A)

     57,792         1,124,055   

Manhattan Associates, Inc. (A)

     14,112         1,088,882   

MICROS Systems, Inc. (A)

     24,768         1,068,739   

Rovi Corp. (A)

     45,792         1,045,889   

Specialty Retail - 2.3%

     

Big 5 Sporting Goods Corp

     51,356         1,127,264   

Brown Shoe Co., Inc.

     52,180         1,123,435   

Children’s Place Retail Stores, Inc. (A)

     20,160         1,104,768   

Guess?, Inc.

     38,016         1,179,637   

hhgregg, Inc. (A)

     76,763         1,225,905   

Mens Wearhouse, Inc.

     31,104         1,177,287   

Textiles, Apparel & Luxury Goods - 0.3%

  

True Religion Apparel, Inc.

     33,312         1,054,658   

Thrifts & Mortgage Finance - 0.7%

  

Home Loan Servicing Solutions, Ltd.

     44,640         1,070,021   

Oritani Financial Corp.

     66,240         1,038,643   

Tobacco - 0.4%

     

Schweitzer Mauduit
International, Inc.

     22,176         1,106,139   

Trading Companies & Distributors - 0.3%

  

Rush Enterprises, Inc. -
Class A (A)

     39,264         971,784   

Transportation Infrastructure - 0.4%

  

Aegean Marine Petroleum Network Inc

     124,512         1,152,981   

Wireless Telecommunication Services - 0.4%

  

NTELOS Holdings Corp.

     66,912         1,101,372   
    

 

 

  

Total Common Stocks (cost $288,147,648)

  

      298,672,251   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    72

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

     Principal      Value  

REPURCHASE AGREEMENT - 2.7%

  

State Street Bank & Trust Co.
0.03% (C), dated 06/28/2013, to be repurchased at $8,279,976 on 07/01/2013. Collateralized by U.S. Government Agency Obligations, 3.25%, due 05/01/2041, and with a total value of $8,450,749.

     $8,279,955         $  8,279,955   
    

 

 

  

Total Repurchase Agreement (cost $8,279,955)

  

      8,279,955   
    

 

 

  
    

Total Investment Securities (cost $296,427,603) (D)

  

      306,952,206   

Other Assets and Liabilities - Net

        (533,037 ) 
    

 

 

  

Net Assets

       $  306,419,169   
    

 

 

  

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate market value of fair valued securities is $0, or less than 0.01% of the portfolio’s net assets.
(C)  Rate shown reflects the yield at June 30, 2013.
(D)  Aggregate cost for federal income tax purposes is $296,427,603. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $11,703,911 and $1,179,308, respectively. Net unrealized appreciation for tax purposes is $10,524,603.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    73

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY: (E)

    

Level 1

Quoted Prices

    

Level 2

Other
Significant

Observable
Inputs

    

Level 3

Significant

Unobservable
Inputs

    

Value at
June 30, 2013

  

ASSETS

                                

Investment Securities

                                

Common Stocks

                                

Aerospace & Defense

   $   4,295,259      $   —      $   —      $   4,295,259   

Airlines

     2,190,971        —        —        2,190,971   

Auto Components

     3,425,280        —        —        3,425,280   

Biotechnology

     5,345,453        —        —        5,345,453   

Building Products

     2,252,951        —        —        2,252,951   

Capital Markets

     8,096,901        —        —        8,096,901   

Chemicals

     5,226,976        —        —        5,226,976   

Commercial Banks

     12,129,472        —        —        12,129,472   

Commercial Services & Supplies

     8,716,726        —        —        8,716,726   

Communications Equipment

     7,476,608        —        —        7,476,608   

Computers & Peripherals

     4,433,797        —        —        4,433,797   

Construction & Engineering

     4,364,667        —        —        4,364,667   

Consumer Finance

     2,035,533        —        —        2,035,533   

Containers & Packaging

     4,354,959        —        —        4,354,959   

Diversified Consumer Services

     6,051,731        —        —        6,051,731   

Diversified Financial Services

     5,330,455        —        —        5,330,455   

Diversified Telecommunication Services

     2,115,652        —        —        2,115,652   

Electric Utilities

     5,265,653        —        —        5,265,653   

Electrical Equipment

     1,171,926        —        —        1,171,926   

Electronic Equipment & Instruments

     16,430,914        —        —        16,430,914   

Energy Equipment & Services

     12,821,748        —        —        12,821,748   

Food & Staples Retailing

     2,072,927        —        —        2,072,927   

Food Products

     4,456,121        —        —        4,456,121   

Gas Utilities

     2,147,414        —        —        2,147,414   

Health Care Equipment & Supplies

     10,779,522        —        —        10,779,522   

Health Care Providers & Services

     18,656,673        —        —        18,656,673   

Health Care Technology

     2,228,199        —        —        2,228,199   

Hotels, Restaurants & Leisure

     6,763,043        —        —        6,763,043   

Insurance

     6,556,629        —        —        6,556,629   

Internet & Catalog Retail

     4,588,671        —        —        4,588,671   

Internet Software & Services

     4,389,467        —        —        4,389,467   

IT Services

     9,902,039        —        —        9,902,039   

Leisure Equipment & Products

     3,430,144        —        —        3,430,144   

Life Sciences Tools & Services

     4,397,977        —        —        4,397,977   

Machinery

     5,416,559        —        —        5,416,559   

Marine

     1,207,987        —        —        1,207,987   

Media

     6,662,985        —        —        6,662,985   

Metals & Mining

     6,282,917        —        —        6,282,917   

Multi-Utilities

     1,042,505        —        —        1,042,505   

Multiline Retail

     1,038,220        —        —        1,038,220   

Office Electronics

     986,088        —        —        986,088   

Oil, Gas & Consumable Fuels

     16,331,867        —        —        16,331,867   

Paper & Forest Products

     2,129,738        —        —        2,129,738   

Personal Products

     3,105,938        —        —        3,105,938   

Pharmaceuticals

     2,144,810        —        —        2,144,810   

Professional Services

     6,309,290        —        —        6,309,290   

Real Estate Investment Trusts

     13,889,247        —        0        13,889,247   

Road & Rail

     1,050,015        —        —        1,050,015   

Semiconductors & Semiconductor Equipment

     8,410,168        —        —        8,410,168   

Software

     4,327,565        —        —        4,327,565   

Specialty Retail

     6,938,296        —        —        6,938,296   

Textiles, Apparel & Luxury Goods

     1,054,658        —        —        1,054,658   

Thrifts & Mortgage Finance

     2,108,664        —        —        2,108,664   

Tobacco

     1,106,139        —        —        1,106,139   

Trading Companies & Distributors

     971,784        —        —        971,784   

Transportation Infrastructure

     1,152,981        —        —        1,152,981   

Wireless Telecommunication Services

     1,101,372        —        —        1,101,372   

Repurchase Agreement

     —        8,279,955        —        8,279,955   

Total Investment Securities

   $   298,672,251      $   8,279,955      $   0      $   306,952,206   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    74

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

VALUATION SUMMARY (continued):

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant

Observable
Inputs

    

Level 3

Significant

Unobservable
Inputs

     Value at
June 30, 2013		  

LIABILITIES

                                
                                 

Other Liabilities (F)

                                

Due to Custodian

   $ (2,572,070 )    $   —      $   —      $ (2,572,070 ) 

Total Other Liabilities

   $ (2,572,070 )    $   —      $   —      $ (2,572,070 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

Level 3 Rollforward - Investment Securities

 

Securities   Beginning
Balance at
December 31, 2012		     Purchases     Sales    

Accrued

Discounts

(Premiums)

    

Total

Realized

Gain (Loss)

  

Net Change in

Unrealized

Appreciation

(Depreciation)

    

Transfers

into

Level 3 (G)

    

Transfers

out of

Level 3

    

Ending

Balance at
June 30, 2013 (H)

    

Net Change in
Unrealized

Appreciation
(Depreciation)

on Investments
Held at

June 30, 2013

  
Common Stocks   $ —      $ —      $ —      $ —          $ —      $ 0      $ —      $ 0      $ —   

 

(G) Transferred into Level 3 because of unavailability of observable inputs.
(H) Inputs used in the valuation of the Level 3 securities were not considered significant unobservable inputs.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    75

Transamerica Partners Small Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 97.9%

     

Aerospace & Defense - 2.2%

     

Triumph Group, Inc. (A)

     17,760         $  1,405,704   

Air Freight & Logistics - 1.1%

     

Hub Group, Inc. - Class A (A) (B)

     19,890         724,394   

Commercial Banks - 12.8%

     

Bank of the Ozarks, Inc. (A)

     29,493         1,277,932   

Home Bancshares, Inc. (A)

     48,328         1,255,078   

Iberiabank Corp. (A)

     14,757         791,123   

PrivateBancorp, Inc. - Class A (A)

     96,354         2,043,668   

Signature Bank (B)

     10,750         892,465   

SVB Financial Group (B)

     15,260         1,271,463   

Texas Capital Bancshares, Inc. (A) (B)

     18,720         830,419   

Commercial Services & Supplies - 2.9%

     

Healthcare Services Group, Inc. (A)

     78,081         1,914,546   

Communications Equipment - 3.2%

     

Aruba Networks, Inc. (B)

     43,440         667,239   

Ixia (A) (B)

     43,670         803,528   

Procera Networks, Inc. (A) (B)

     46,432         637,511   

Diversified Financial Services - 1.6%

     

MarketAxess Holdings, Inc.

     21,920         1,024,760   

Electrical Equipment - 2.1%

     

EnerSys, Inc.

     27,550         1,351,052   

Electronic Equipment & Instruments - 1.2%

     

InvenSense, Inc. - Class A (A) (B)

     52,080         800,990   

Energy Equipment & Services - 1.3%

     

Pacific Drilling SA (B)

     83,419         815,838   

Food Products - 2.6%

     

Annie’s, Inc. (A) (B)

     15,740         672,728   

TreeHouse Foods, Inc. (A) (B)

     15,390         1,008,660   

Health Care Equipment & Supplies - 2.0%

     

Cantel Medical Corp. (A)

     20,058         679,365   

Neogen Corp. (B)

     11,022         612,382   

Health Care Providers & Services - 4.0%

     

Air Methods Corp. (A)

     40,752         1,380,678   

Centene Corp. (B)

     23,970         1,257,466   

Health Care Technology - 5.1%

     

athenahealth, Inc. (A) (B)

     7,670         649,802   

HMS Holdings Corp. (A) (B)

     49,890         1,162,437   

Medidata Solutions, Inc. (B)

     19,350         1,498,658   

Hotels, Restaurants & Leisure - 3.5%

     

Buffalo Wild Wings, Inc. (A) (B)

     7,410         727,365   

Red Robin Gourmet Burgers, Inc. (A) (B)

     13,745         758,449   

Sonic Corp. (A) (B)

     55,080         801,965   

Household Durables - 2.3%

     

Meritage Homes Corp. (B)

     35,340         1,532,342   

Insurance - 1.6%

     

Hilltop Holdings, Inc. (A) (B)

     63,640         1,043,696   

Internet Software & Services - 2.5%

     

Envestnet, Inc. (B)

     22,841         561,889   

SPS Commerce, Inc. (A) (B)

     19,272         1,059,960   

IT Services - 1.8%

     

MAXIMUS, Inc. - Class A

     15,470         1,152,206   

Life Sciences Tools & Services - 3.2%

     

ICON PLC (B)

     19,510         691,239   

PAREXEL International Corp. (A) (B)

     30,940         1,421,384   

Machinery - 3.2%

     

Chart Industries, Inc. (A) (B)

     14,264         1,342,100   

Wabtec Corp. (A)

     14,168         756,996   
     Shares      Value  

Oil, Gas & Consumable Fuels - 6.1%

     

Approach Resources, Inc. (A) (B)

     76,510         $  1,879,851   

Callon Petroleum Co. (A) (B)

     60,919         205,297   

Gulfport Energy Corp. (B)

     40,460         1,904,452   

Personal Products - 3.1%

     

Inter Parfums, Inc. (A)

     28,220         804,835   

Prestige Brands Holdings, Inc. (B)

     42,380         1,234,953   

Pharmaceuticals - 2.2%

     

Akorn, Inc. - Class A (A) (B)

     108,300         1,464,216   

Professional Services - 2.9%

     

Advisory Board Co. (A) (B)

     34,920         1,908,378   

Semiconductors & Semiconductor Equipment - 2.8%

  

Applied Micro Circuits Corp. (A) (B)

     118,970         1,046,936   

Ceva, Inc. (B)

     7,347         142,238   

Inphi Corp. (A) (B)

     59,700         656,700   

Software - 6.5%

     

AVG Technologies NV (A) (B)

     56,797         1,104,702   

QLIK Technologies, Inc. (A) (B)

     25,130         710,425   

Sourcefire, Inc. (A) (B)

     17,780         987,679   

Synchronoss Technologies, Inc. (A) (B)

     45,750         1,412,302   

Specialty Retail - 9.9%

     

Asbury Automotive Group, Inc. (A) (B)

     35,250         1,413,525   

Express, Inc. (B)

     62,200         1,304,334   

Group 1 Automotive, Inc. (A)

     25,214         1,622,016   

Pier 1 Imports, Inc. (A)

     91,830         2,157,087   

Textiles, Apparel & Luxury Goods - 2.4%

  

Deckers Outdoor Corp. (A) (B)

     18,057         912,059   

Steven Madden, Ltd. - Class B (A) (B)

     13,450         650,711   

Trading Companies & Distributors - 1.8%

  

Beacon Roofing Supply, Inc. (A) (B)

     31,820         1,205,342   
    

 

 

  

Total Common Stocks (cost $54,705,399)

  

      64,007,515   
    

 

 

  

SECURITIES LENDING COLLATERAL - 25.6%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio,
0.18% (C)

     16,749,713         16,749,713   
    

 

 

  

Total Securities Lending Collateral (cost $16,749,713)

  

      16,749,713   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 2.2%

     

State Street Bank & Trust Co.
0.03% (C), dated 06/28/2013, to be repurchased at $1,425,086 on 07/01/2013. Collateralized by a U.S. Government Agency Obligation, 3.25%, due 05/01/2041, and with a value of $1,456,508.

     $  1,425,083         1,425,083   
    

 

 

  

Total Repurchase Agreement (cost $1,425,083)

  

      1,425,083   

    

     
    

 

 

  

Total Investment Securities (cost $72,880,195) (D)

  

      82,182,311   

Other Assets and Liabilities - Net

        (16,793,801 ) 
    

 

 

  

Net Assets

       $  65,388,510   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    76

Transamerica Partners Small Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $16,331,119. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(B) Non-income producing security.
(C) Rate shown reflects the yield at June 30, 2013.
(D) Aggregate cost for federal income tax purposes is $72,880,195. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $10,029,691 and $727,575, respectively. Net unrealized appreciation for tax purposes is $9,302,116.

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		     Value at
June 30, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 64,007,515      $ —      $ —      $ 64,007,515   

Securities Lending Collateral

     16,749,713        —        —        16,749,713   

Repurchase Agreement

     —        1,425,083        —        1,425,083   

Total Investment Securities

   $ 80,757,228      $ 1,425,083      $ —      $ 82,182,311   
       
     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		    

Value at
June 30, 2013

  

LIABILITIES

                                

Other Liabilities (F)

                                

Collateral for Securities on Loan

   $ —      $ (16,749,713 )    $ —      $ (16,749,713 ) 

Total Other Liabilities

   $ —      $ (16,749,713 )    $ —      $ (16,749,713 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    77

Transamerica Partners International Equity Portfolio

 

 

SCHEDULE OF INVESTMENTS

At June 30, 2013

(unaudited)

 

     Shares      Value  

COMMON STOCKS - 96.2%

     

Brazil - 3.3%

     

Embraer SA - ADR

     180,600         $  6,662,334   

Itau Unibanco Holding SA - ADR

     556,547         7,190,587   

Natura Cosmeticos SA

     240,664         5,144,721   

Canada - 2.9%

     

Canadian National Railway Co.

     65,969         6,423,149   

Cenovus Energy, Inc.

     149,188         4,255,624   

Teck Resources, Ltd. - Class B (A)

     278,500         5,950,266   

China - 1.5%

     

Baidu, Inc. - ADR (B)

     91,228         8,623,783   

Denmark - 2.4%

     

Novo Nordisk A/S - Class B

     88,558         13,801,207   

France - 7.4%

     

Air Liquide SA - Class A

     92,703         11,447,660   

Cie Generale des Etablissements Michelin - Class B

     72,399         6,474,159   

LVMH Moet Hennessy Louis Vuitton SA

     84,143         13,635,824   

Publicis Groupe SA

     159,654         11,367,401   

Germany - 9.3%

     

Adidas AG

     110,054         11,909,949   

Allianz SE - Class A

     33,567         4,904,480   

Deutsche Bank AG

     272,812         11,418,420   

Fresenius Medical Care AG & Co., KGaA

     170,293         12,087,217   

SAP AG

     146,171         10,704,219   

Siemens AG - Class A

     28,376         2,868,050   

Hong Kong - 9.8%

     

AIA Group, Ltd.

     2,603,536         11,027,025   

China Merchants Bank Co., Ltd. -
Class H (A)

     521,973         870,847   

CNOOC, Ltd.

     4,806,138         8,154,766   

Hong Kong Exchanges and Clearing, Ltd.

     613,021         9,255,324   

HSBC Holdings PLC

     1,104,073         11,573,048   

Industrial & Commercial Bank of China, Ltd. - Class H

     16,840,593         10,617,582   

Sinopharm Group Co., Ltd. - Class H (A)

     1,937,130         4,865,272   

Italy - 0.6%

     

Saipem SpA

     214,565         3,488,312   

Japan - 15.9%

     

Bridgestone Corp. (A)

     251,479         8,570,266   

FANUC Corp.

     43,614         6,323,546   

Japan Exchange Group, Inc. (A)

     19,183         1,938,028   

KDDI Corp.

     122,676         6,382,417   

Komatsu, Ltd.

     436,031         10,080,854   

Kubota Corp.

     443,325         6,472,420   

Mitsubishi UFJ Financial Group, Inc.

     3,085,529         19,039,562   

Softbank Corp.

     134,552         7,854,972   

Sumitomo Mitsui Trust Holdings, Inc.

     1,688,991         7,884,683   

Toyota Motor Corp.

     286,412         17,297,922   

Korea, Republic of - 1.6%

     

Samsung Electronics Co., Ltd.

     7,733         9,086,893   

Mexico - 1.3%

     

Wal-Mart de Mexico SAB de CV -
Series V (A)

     2,634,300         7,383,997   

Netherlands - 2.0%

     

ASML Holding NV

     135,631         10,702,098   

ING Groep NV (B)

     101,265         922,681   

Spain - 0.6%

     

Amadeus IT Holding SA - Class A

     109,998         3,515,756   
     Shares      Value  

Sweden - 1.5%

     

Hennes & Mauritz AB - Class B

     266,962         $  8,773,866   

Switzerland - 8.5%

     

Julius Baer Group, Ltd. (B)

     156,654         6,118,221   

Nestle SA

     93,254         6,116,230   

Novartis AG

     172,671         12,266,396   

Roche Holding AG

     52,199         12,986,888   

Swatch Group AG

     5,967         3,266,041   

Syngenta AG

     21,247         8,313,897   

United Kingdom - 16.8%

     

ARM Holdings PLC

     248,279         3,002,078   

British American Tobacco PLC

     172,344         8,827,111   

Burberry Group PLC

     296,463         6,091,730   

Carnival PLC - Class A

     224,878         7,832,443   

Kingfisher PLC

     2,085,223         10,878,310   

Pearson PLC (A)

     343,637         6,120,285   

Reckitt Benckiser Group PLC

     191,044         13,505,614   

Rolls-Royce Holdings PLC (B)

     542,640         9,359,220   

Royal Bank of Scotland Group PLC (B)

     735,692         3,060,330   

SABMiller PLC

     158,626         7,605,789   

Standard Chartered PLC

     472,768         10,260,933   

Tullow Oil PLC

     256,043         3,898,179   

WPP PLC - Class A

     389,030         6,638,818   

United States - 10.8%

     

Accenture PLC - Class A

     96,609         6,951,984   

Liberty Global PLC (B)

     83,100         6,156,048   

Lululemon Athletica, Inc. (A) (B)

     128,189         8,398,943   

MercadoLibre, Inc. (A)

     35,700         3,847,032   

Potash Corp. of Saskatchewan, Inc.

     205,000         7,816,650   

Schlumberger, Ltd.

     168,660         12,086,176   

SINA Corp. (B)

     52,300         2,914,679   

Yandex NV - Class A (B)

     174,949         4,833,841   

Yum! Brands, Inc.

     137,810         9,555,745   
    

 

 

  

Total Common Stocks (cost $456,143,123)

  

      555,660,798   
    

 

 

  

SECURITIES LENDING COLLATERAL - 6.1%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.18% (C)

     35,551,160         35,551,160   
    

 

 

  

Total Securities Lending Collateral (cost $35,551,160)

  

      35,551,160   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 2.5%

  

   

State Street Bank & Trust Co. 0.03% (C), dated 06/28/2013, to be repurchased at $14,325,307 on 07/01/2013. Collateralized by U.S. Government Agency Obligations, 3.05% - 3.25%, due 05/01/2041 - 01/01/2042, and with a total value of $14,613,150.

     $  14,325,272         14,325,272   
    

 

 

  

Total Repurchase Agreement (cost $14,325,272)

  

      14,325,272   
    

 

 

  
    

Total Investment Securities (cost $506,019,555) (D)

  

      605,537,230   

Other Assets and Liabilities - Net

        (27,887,890 ) 
    

 

 

  

Net Assets

       $  577,649,340   
    

 

 

  
 

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    78

Transamerica Partners International Equity Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

 

FORWARD FOREIGN CURRENCY CONTRACTS:                          
Currency    Counterparty   

Contracts
Bought

(Sold)

      Settlement
Date		      Amount in U.S.
Dollars Bought
(Sold)		      Net Unrealized
Appreciation
(Depreciation)		  

EUR

    SSB      12,045,100         10/29/2013       $   15,900,496       $   (213,131 ) 

EUR

    SSB      (39,528,100 )       10/29/2013         (51,464,400 )       (16,428 ) 

JPY

    SSB      (2,009,079,000 )       07/08/2013         (22,930,661 )       2,673,143   

JPY

    SSB      (689,513,900 )       07/08/2013         (7,187,303 )       234,943   

JPY

    SSB      1,068,924,200         07/08/2013         10,775,945         2,004   

JPY

    SSB      7,330,638,100         07/08/2013         73,837,271         77,458   

JPY

    SSB      (1,307,396,600 )       07/08/2013         (13,426,078 )       243,615   

JPY

    SSB      (1,745,992,900 )       07/08/2013         (17,677,540 )       72,716   

JPY

    SSB      (735,295,400 )       07/08/2013         (7,386,941 )       (27,033 ) 

JPY

    SSB      (569,233,800 )       07/08/2013         (5,598,502 )       (141,076 ) 

JPY

    SSB      (1,343,050,700 )       07/08/2013         (13,141,113 )       (400,849 ) 

JPY

    SSB      (6,153,994,800 )       01/06/2014         (62,059,385 )       (75,408 ) 
              

 

 

  
               $   2,429,954   
              

 

 

  

 

INVESTMENTS BY INDUSTRY:   Percentage of
Total Investment
Securities		        Value  

Commercial Banks

     11.6 %       $   70,497,572   

Textiles, Apparel & Luxury Goods

     7.1           43,302,487   

Pharmaceuticals

     6.4           39,054,491   

Media

     5.0           30,282,552   

Chemicals

     4.6           27,578,207   

Machinery

     3.8           22,876,820   

Semiconductors & Semiconductor Equipment

     3.8           22,791,069   

Internet Software & Services

     3.3           20,219,335   

Specialty Retail

     3.2           19,652,176   

Capital Markets

     2.9           17,536,641   

Hotels, Restaurants & Leisure

     2.9           17,388,188   

Automobiles

     2.9           17,297,922   

Health Care Providers & Services

     2.8           16,952,489   

Oil, Gas & Consumable Fuels

     2.7           16,308,569   

Aerospace & Defense

     2.6           16,021,554   

Insurance

     2.6           15,931,505   

Energy Equipment & Services

     2.6           15,574,488   

Auto Components

     2.5           15,044,425   

Wireless Telecommunication Services

     2.4           14,237,389   

Household Products

     2.2           13,505,614   

Diversified Financial Services

     2.0           12,116,033   

Software

     1.8           10,704,219   

IT Services

     1.7           10,467,740   

Tobacco

     1.5           8,827,111   

Beverages

     1.3           7,605,789   

Food & Staples Retailing

     1.2           7,383,997   

Road & Rail

     1.1           6,423,149   

Food Products

     1.0           6,116,230   

Metals & Mining

     1.0           5,950,266   

Personal Products

     0.8           5,144,721   

Industrial Conglomerates

     0.5           2,868,050   
 

 

 

       

 

 

  

Investment Securities, at Value

     91.8           555,660,798   

Short-Term Investments

     8.2           49,876,432   
 

 

 

       

 

 

  

Total Investments

     100.0 %       $   605,537,230   
 

 

 

       

 

 

  

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    79

Transamerica Partners International Equity Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $34,057,176. The amount of securities on loan indicated may not correspond with the securities on loan identified because securities with pending sales are in the process of recall from the brokers.
(B) Non-income producing security.
(C) Rate shown reflects the yield at June 30, 2013.
(D) Aggregate cost for federal income tax purposes is $506,019,555. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $117,361,111 and $17,843,436, respectively. Net unrealized appreciation for tax purposes is $99,517,675.

DEFINITIONS:

 

ADR    American Depositary Receipt
SSB    State Street Bank & Trust Co.

CURRENCY ABBREVIATIONS:

 

EUR    Euro
JPY    Japanese Yen

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		    

Value at
June 30, 2013

  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $   114,195,559      $   441,465,239      $   —      $   555,660,798   

Securities Lending Collateral

     35,551,160        —        —        35,551,160   

Repurchase Agreement

     —        14,325,272        —        14,325,272   

Total Investment Securities

   $   149,746,719      $   455,790,511      $   —      $   605,537,230   
                                 

Derivative Financial Instruments

                                

Forward Foreign Currency Contracts (F)

   $   —      $   3,303,879      $   —      $   3,303,879   

Total Derivative Financial Instruments

   $   —      $   3,303,879      $   —      $   3,303,879   
                                 

Other Assets (G)

                                

Cash

   $   70,893      $   —      $   —      $   70,893   

Foreign Currency

     250,140        —        —        250,140   

Total Other Assets

   $   321,033      $   —      $   —      $   321,033   
       
     Level 1
Quoted Prices		    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		    

Value at
June 30, 2013

  

LIABILITIES

                                

Derivative Financial Instruments

                                

Forward Foreign Currency Contracts (F)

   $   —      $   (873,925 )    $   —      $   (873,925 ) 

Total Derivative Financial Instruments

   $   —      $   (873,925 )    $ —      $   (873,925 ) 
                                 

Other Liabilities (G)

                                

Collateral for Securities on Loan

   $   —      $   (35,551,160 )    $   —      $   (35,551,160 ) 

Total Other Liabilities

   $   —      $   (35,551,160 )    $   —      $   (35,551,160 ) 

 

(E) Transfers between levels are considered to have occurred at the end of the reporting period. There were no transfers between Levels 1 and 2 during the period ended June 30, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F) Derivative financial instruments valued at unrealized appreciation (depreciation) on the instrument.
(G) Certain assets and liabilities are held at carrying amount or face value, which approximates fair value for financial reporting purposes.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    80

 

STATEMENTS OF ASSETS AND LIABILITIES

At June 30, 2013

(unaudited)

 

     Money Market     High Quality
Bond		     Inflation-
Protected
Securities		     Core Bond     High Yield
Bond		  

Assets:

                    

Investment securities, at value

   $ 823,671,795      $ 417,971,702      $ 320,453,113      $ 1,725,792,569      $ 766,715,250   

Repurchase agreements, at value

     99,692,403        9,470,453        —        —        39,142,949   

Cash on deposit with broker

     —        —        80,000        4,131,169        —   

Cash

     —        —        —        446,065        —   

Foreign currency, at value

     —        —        21,463        2,557,596        —   

Cash on deposit with custodian

     —        —        —        2,269,000        —   

Unrealized appreciation on forward foreign currency contracts

     —        —        322,958        672,118        —   

Unrealized appreciation on swap agreements

     —        —        421,807        11,236,196        —   

Premium paid on swap agreements

     —        —        —        612,300        —   

Receivables:

                    

Investment securities sold

     —        —        783,134        489,682,247        6,303,829   

When-issued securities sold

     —        —        —        879,747        —   

Interest

     99,565        1,630,672        1,227,152        8,434,928        12,464,340   

Dividends

     —        —        —        —        35,250   

Securities lending income (net)

     —        4,161        2,751        34,253        —   

Other

     —        —        —        —        91,350   

Prepaid expenses

     3,147        1,571        1,182        5,077        2,930   

Total assets

     923,466,910        429,078,559        323,313,560        2,246,753,265        824,755,898   

Liabilities:

                    

Cash collateral due to broker

     —        —        1,000,000        9,870,000        —   

Premium received on swap agreements

     —        —        —        1,643,619        —   

Accounts payable and accrued liabilities:

                    

Investment securities purchased

     —        —        —        566,157,416        6,496,096   

When-issued securities purchased

     —        —        —        3,261,223        —   

Variation margin

     —        —        17,832        3,210,401        —   

Interest from TBA short commitments

     —        —        —        289,492        —   

Advisory fees

     173,484        113,423        81,531        376,649        353,267   

Trustee and CCO fees

     352        162        131        560        329   

Audit and tax fees

     11,126        10,414        9,680        11,657        11,542   

Custody fees

     29,778        10,114        17,951        54,983        30,503   

Legal fees

     31,133        13,366        19,086        59,317        29,101   

Other

     287        1,108        960        4,097        2,119   

Collateral for securities on loan

     —        8,035,805        9,362,335        110,511,765        —   

Written options and swaptions, at value

     —        —        1,406,433        —        —   

TBA short commitments, at value

     —        —        —        165,959,171        —   

Unrealized depreciation on forward foreign currency contracts

     —        —        315,610        22,304        —   

Unrealized depreciation on swap agreements

     —        —        265,873        670,867        —   

Total liabilities

     246,160        8,184,392        12,497,422        862,103,521        6,922,957   

Net assets

   $ 923,220,750      $ 420,894,167      $ 310,816,138      $ 1,384,649,744      $ 817,832,941   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment securities, at cost

   $     823,671,795      $     417,793,210      $     325,629,728      $     1,745,792,502      $     756,975,381   

Repurchase agreements, at cost

   $ 99,692,403      $ 9,470,453      $ —      $ —      $ 39,142,949   

Foreign currency, at cost

   $ —      $ —      $ 20,642      $ 2,617,383      $ —   

Securities loaned, at value

   $ —      $ 7,872,611      $ 9,175,738      $ 108,231,154      $ —   

Premium received on written option and swaption contracts

   $ —      $ —      $ 1,198,571      $ —      $ —   

Proceeds received from TBA short commitments

   $ —      $ —      $ —      $ 167,372,875      $ —   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    81

 

STATEMENTS OF ASSETS AND LIABILITIES (continued)

At June 30, 2013

(unaudited)

 

    

Balanced

     Large Value     Large Core     Large Growth     Mid Value  

Assets:

                    

Investment securities, at value

   $ 122,519,797      $ 876,499,133      $ 273,222,422      $ 870,670,528      $ 919,735,511   

Repurchase agreements, at value

     585,758        8,900,359        5,632,305        2,020,905        19,523,001   

Cash on deposit with broker

     61,000        —        —        —        —   

Cash

     3,012        —        4,179        —        176   

Foreign currency, at value

     2,930        —        —        —        —   

Unrealized appreciation on forward foreign currency contracts

     18,442        —        —        —        —   

Receivables:

                    

Investment securities sold

     14,770,004        19,632,193        6,202,814        3,069,086        4,698,277   

Interest

     239,916        7        5        2        16   

Dividends

     78,984        733,193        275,541        393,984        947,060   

Dividend reclaims

     —        7,399        1,331        137,152        14,396   

Securities lending income (net)

     590        8,818        2,828        13,014        18,332   

Variation margin

     8,723        —        —        —        —   

Prepaid expenses

     394        3,140        959        3,216        3,006   

Total assets

     138,289,550        905,784,242        285,342,384        876,307,887        944,939,775   
           

Liabilities:

                    

Due to custodian

     —        —        —        373,399        —   

Accounts payable and accrued liabilities:

                    

Investment securities purchased

     18,068,839        20,559,574        4,998,667        3,027,349        5,028,742   

Interest from TBA short commitments

     6,342        —        —        —        —   

Advisory fees

     28,339        300,696        128,557        394,955        453,224   

Trustee and CCO fees

     44        336        104        333        326   

Audit and tax fees

     9,837        11,094        11,321        11,633        11,270   

Custody fees

     16,853        9,470        5,343        23,958        15,688   

Legal fees

     3,885        28,210        8,614        29,225        45,685   

Other

     1,098        2,684        2,840        2,413        2,940   

Collateral for securities on loan

     4,907,965        26,502,707        8,384,120        28,300,939        61,759,738   

TBA short commitments, at value

     3,988,004        —        —        —        —   

Unrealized depreciation on forward foreign currency contracts

     722        —        —        —        —   

Total liabilities

     27,031,928        47,414,771        13,539,566        32,164,204        67,317,613   

Net assets

   $     111,257,622      $     858,369,471      $     271,802,818      $     844,143,683      $     877,622,162   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment securities, at cost

   $ 116,030,545      $ 730,733,745      $ 230,911,085      $ 712,423,804      $ 746,251,335   

Repurchase agreements, at cost

   $ 585,758      $ 8,900,359      $ 5,632,305      $ 2,020,905      $ 19,523,001   

Foreign currency, at cost

   $ 5,202      $ —      $ —      $ —      $ —   

Securities loaned, at value

   $ 4,805,075      $ 25,917,792      $ 8,200,499      $ 27,687,874      $ 60,311,134   

Proceeds received from TBA short commitments

   $ 4,039,379      $ —      $ —      $ —      $ —   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    82

 

STATEMENTS OF ASSETS AND LIABILITIES (continued)

At June 30, 2013

(unaudited)

 

     Mid Growth     Small Value     Small Core     Small Growth    

International
Equity

  

Assets:

                    

Investment securities, at value

   $ 171,315,622      $ 92,451,892      $ 298,672,251      $ 80,757,228      $ 591,211,958   

Repurchase agreements, at value

     1,768,323        1,785,221        8,279,955        1,425,083        14,325,272   

Cash

     —        —        —        —        70,893   

Foreign currency, at value

     —        —        —        —        250,140   

Unrealized appreciation on forward foreign currency contracts

     —        —        —        —        3,303,879   

Receivables:

                    

Investment securities sold

     169,160,021        764,775        248,071,515        674,752        2,151,177   

Interest

     1        2        7        1        12   

Dividends

     42,224        81,101        205,496        7,602        1,674,205   

Dividend reclaims

     1,987        —        —        —        2,690,550   

Securities lending income (net)

     3,870        3,092        9,208        3,163        27,877   

Prepaid expenses

     650        273        1,098        250        2,249   

Total assets

     342,292,698        95,086,356        555,239,530        82,868,079        615,708,212   

Liabilities:

                    

Due to custodian

     —        —        2,572,070        —        —   

Accounts payable and accrued liabilities:

                    

Investment securities purchased

     169,797,004        —        246,023,680        673,488        1,196,560   

Advisory fees

     93,355        45,848        192,729        39,821        342,985   

Trustee and CCO fees

     68        29        121        25        241   

Audit and tax fees

     10,280        10,129        10,475        10,116        551   

Custody fees

     6,137        2,382        7,374        4,734        58,313   

Legal fees

     5,781        4,011        12,074        1,362        32,311   

Other

     845        765        1,838        310        2,826   

Collateral for securities on loan

     —        19,459,559        —        16,749,713        35,551,160   

Unrealized depreciation on forward foreign currency contracts

     —        —        —        —        873,925   

Total liabilities

     169,913,470        19,522,723        248,820,361        17,479,569        38,058,872   

Net assets

   $ 172,379,228      $ 75,563,633      $ 306,419,169      $ 65,388,510      $ 577,649,340   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment securities, at cost

   $   171,570,000      $   73,546,290      $   288,147,648      $   71,455,112      $   491,694,283   

Repurchase agreements, at cost

   $ 1,768,323      $ 1,785,221      $ 8,279,955      $ 1,425,083      $ 14,325,272   

Foreign currency, at cost

   $ —      $ —      $ —      $ —      $ 251,608   

Securities loaned, at value

   $ —      $ 18,986,673      $ —      $ 16,331,119      $ 34,057,176   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    83

 

STATEMENTS OF OPERATIONS

For the period ended June 30, 2013

(unaudited)

 

     Money Market     High Quality
Bond		     Inflation-
Protected
Securities		     Core Bond     High Yield
Bond		  

Investment Income:

                    

Interest income

   $ 907,853      $ 4,728,727      $ 1,432,755      $ 20,969,184      $ 28,831,523   

Securities lending income (net)

     —        28,487        14,776        94,478        —   

Dividend income

     —        —        —        101,891        268,902   

Withholding taxes on foreign income

     —        (197 )      —        (9,795 )      (98 ) 

Total investment income

     907,853        4,757,017        1,447,531        21,155,758        29,100,327   
           

Expenses:

                    

Advisory

    1,115,298        716,056        569,919        2,487,848        2,269,695   

Trustee and CCO

     11,940        5,335        4,307        18,768        10,859   

Audit and tax

     7,615        8,355        8,571        9,965        9,073   

Custody

     77,749        30,705        57,668        176,123        90,811   

Legal

     36,015        14,551        12,977        57,358        30,723   

Printing and shareholder reports

     14,047        5,766        5,035        21,966        12,191   

Other

     8,825        3,515        2,941        12,452        7,076   

Total expenses

     1,271,489        784,283        661,418        2,784,480        2,430,428   

Expenses (waived/reimbursed)

     —        —        (10,080 )      —        —   

Net expenses

         1,271,489        784,283        651,338        2,784,480        2,430,428   

Net investment income (loss)

     (363,636 )      3,972,734        796,193        18,371,278            26,669,899   
           

Net realized gain (loss) on transactions from:

                    

Investment securities

     11,232        396,012        2,473,557        7,411,270        (1,850,666 ) 

Futures contracts

     —        —        619,896        (1,663,679 )      —   

Written option and swaption contracts

     —        —        (55,029 )      (991,015 )      —   

Swap agreements

     —        —        221,855        115,159        —   

Foreign currency transactions

     —        —        564,694        571,789        —   

Total realized gain (loss)

     11,232        396,012        3,824,973        5,443,524        (1,850,666 ) 
           

Net change in unrealized appreciation (depreciation) on:

                    

Investment securities

     —        (5,459,357 )      (27,571,021 )      (65,286,904 )      (14,158,709 ) 

Futures contracts

     —        —        (167,896 )      (3,427,831 )      —   

Written option and swaption contracts

     —        —        (252,564 )      (33,147 )      —   

Swap agreements

     —        —        (158,213 )      9,425,539        —   

Translation of assets and liabilities denominated in foreign currencies

     —        —        102,875        737,694        —   

TBA short commitments

     —        —        —        1,646,492        —   

Net change in unrealized appreciation (depreciation)

     —        (5,459,357 )      (28,046,819 )      (56,938,157 )      (14,158,709 ) 

Net realized and change in unrealized gain (loss)

     11,232        (5,063,345 )      (24,221,846 )      (51,494,633 )      (16,009,375 ) 

Net increase (decrease) in net assets resulting from operations

   $ (352,404 )    $     (1,090,611 )    $     (23,425,653 )    $     (33,123,355 )    $ 10,660,524   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    84

 

STATEMENTS OF OPERATIONS (continued)

For the period ended June 30, 2013

(unaudited)

 

    

Balanced

     Large Value     Large Core     Large Growth     Mid Value  

Investment Income:

                    

Interest income

   $ 390,238      $ 1,707      $ 544      $ 862      $ 4,665   

Securities lending income (net)

     7,424        83,181        31,648        118,583        64,773   

Dividend income

     666,026        9,622,285        2,790,060        5,231,091        7,242,397   

Withholding taxes on foreign income

     (229 )      (20,709 )      (6,619 )      (52,446 )      (19,703 ) 

Total investment income

     1,063,459        9,686,464        2,815,633        5,298,090        7,292,132   
           

Expenses:

                    

Advisory

    251,527        1,887,224        788,537        2,597,899        2,798,932   

Trustee and CCO

     1,474        11,010        3,455        11,062        10,941   

Audit and tax

     9,248        8,186        8,748        8,699        7,784   

Custody

     70,570        48,586        17,523        89,933        49,774   

Legal

     4,155        30,500        9,306        31,338        38,374   

Printing and shareholder reports

     1,646        11,718        3,667        12,285        11,661   

Other

     948        7,472        2,252        7,756        6,931   

Total expenses

     339,568        2,004,696        833,488        2,758,972        2,924,397   

Expenses (waived/reimbursed)

     (60,094 )      —        —        (35,367 )      (139 ) 

Net expenses

     279,474        2,004,696        833,488        2,723,605        2,924,258   

Net investment income (loss)

     783,985        7,681,768        1,982,145        2,574,485        4,367,874   
           

Net realized gain (loss) on transactions from:

                    

Investment securities

     5,266,136        78,080,996        30,150,219        42,779,342        38,734,934   

Futures contracts

     73,428        —        —        —        —   

Written option and swaption contracts

     (23,493 )      —        —        —        —   

Foreign currency transactions

     19,012        —        —        2,016        3,801   

Total realized gain (loss)

     5,335,083        78,080,996        30,150,219        42,781,358        38,738,735   
           

Net change in unrealized appreciation (depreciation) on:

                    

Investment securities

     1,683,877        47,645,256        8,145,418        46,266,793        68,680,555   

Futures contracts

     (22,877 )      —        —        —        —   

Translation of assets and liabilities denominated in foreign currencies

     22,171        —        —        (108 )      (263 ) 

TBA short commitments

     58,223        —        —        —        —   

Net change in unrealized appreciation (depreciation)

     1,741,394        47,645,256        8,145,418        46,266,685        68,680,292   

Net realized and change in unrealized gain (loss)

     7,076,477        125,726,252        38,295,637        89,048,043        107,419,027   

Net increase (decrease) in net assets resulting from operations

   $     7,860,462      $     133,408,020      $     40,277,782      $     91,622,528      $     111,786,901   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    85

 

STATEMENTS OF OPERATIONS (continued)

For the period ended June 30, 2013

(unaudited)

 

 

     Mid Growth     Small Value     Small Core     Small Growth    

International
Equity

  

Investment Income:

                    

Interest income

   $ 356      $ 364      $ 1,047      $ 269      $ 2,335   

Securities lending income (net)

     75,417        14,184        213,499        70,661        252,862   

Dividend income

     555,420        541,845        2,191,632        87,742            10,099,022   

Withholding taxes on foreign income

     (3,046 )      —        (864 )      —        (937,877 ) 

Total investment income

     628,147        556,393        2,405,314        158,672        9,416,342   
           

Expenses:

                    

Advisory

    614,669        301,402        1,227,011        261,596        2,284,643   

Trustee and CCO

     2,229        962        4,009        814        8,016   

Audit and tax

     7,833        7,841        7,824        7,842        102,074   

Custody

     16,484        9,415        30,276        12,339        192,030   

Legal

     6,280        2,614        11,958        3,809        25,036   

Printing and shareholder reports

     2,461        1,052        4,431        1,651        9,131   

Other

     1,579        616        2,652        562        5,536   

Total expenses

     651,535        323,902        1,288,161        288,613        2,626,466   

Expenses (waived/reimbursed)

     (11,255 )      (11,473 )      —        (8,333 )      —   

Net expenses

     640,280        312,429        1,288,161        280,280        2,626,466   

Net investment income (loss)

     (12,133 )      243,964        1,117,153        (121,608 )      6,789,876   
           

Net realized gain (loss) on transactions from:

                    

Investment securities

     35,653,290        4,400,354        76,990,980        (475,418 )      28,689,617   

Futures contracts

     —        —        196,697        —        —   

Foreign currency transactions

     (807 )      —        —        —        (71,126 ) 

Total realized gain (loss)

     35,652,483        4,400,354        77,187,677        (475,418 )      28,618,491   
           

Net change in unrealized appreciation (depreciation) on:

                    

Investment securities

     (18,020,582 )      5,035,345        (37,187,500 )      9,965,349        (34,755,846 ) 

Futures contracts

     —        —        (31,262 )      —        —   

Translation of assets and liabilities denominated in foreign currencies

     (66 )      —        —        —        2,556,709   

Net change in unrealized appreciation (depreciation)

     (18,020,648 )      5,035,345            (37,218,762 )      9,965,349        (32,199,137 ) 

Net realized and change in unrealized gain (loss)

     17,631,835        9,435,699        39,968,915        9,489,931        (3,580,646 ) 

Net increase (decrease) in net assets resulting from operations

   $     17,619,702      $     9,679,663      $ 41,086,068      $     9,368,323      $ 3,209,230   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    86

 

STATEMENTS OF CHANGES IN NET ASSETS

For the period and year ended:

 

     Money Market     High Quality Bond     Inflation-Protected Securities  
    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

  

From operations:

                        

Net investment income (loss)

   $ (363,636 )    $ (960,513 )    $ 3,972,734      $ 8,515,508      $ 796,193      $ 5,028,483   

Net realized gain (loss)

     11,232        86        396,012        1,238,247        3,824,973        15,124,782   

Net change in unrealized appreciation (depreciation)

     —        —        (5,459,357 )      2,393,318        (28,046,819 )      4,052,311   

Net increase (decrease) in net assets resulting from operations

     (352,404 )      (960,427 )      (1,090,611 )      12,147,073        (23,425,653 )      24,205,576   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     286,182,803        607,906,945        146,684,363        150,407,683        27,260,025        52,452,782   

Withdrawals

         (310,967,588 )          (654,217,536 )          (110,745,579 )          (234,736,980 )      (34,154,588 )      (94,065,725 ) 
             

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

                        
      (24,784,785 )      (46,310,591 )      35,938,784        (84,329,297 )      (6,894,563 )      (41,612,943 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     (25,137,189 )      (47,271,018 )      34,848,173        (72,182,224 )      (30,320,216 )      (17,407,367 ) 
             

Net assets:

                        

Beginning of period/year

     948,357,939        995,628,957        386,045,994        458,228,218        341,136,354        358,543,721   

End of period/year

   $ 923,220,750      $ 948,357,939      $ 420,894,167      $ 386,045,994      $     310,816,138      $     341,136,354   

 

     Core Bond     High Yield Bond     Balanced  
    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

  

From operations:

                        

Net investment income (loss)

   $ 18,371,278      $ 46,111,919      $ 26,669,899      $ 56,048,435      $ 783,985      $ 1,985,977   

Net realized gain (loss)

     5,443,524        29,636,680        (1,850,666 )      15,614,503        5,335,083        4,620,041   

Net change in unrealized appreciation (depreciation)

     (56,938,157 )      47,071,976        (14,158,709 )      37,127,582        1,741,394        7,067,798   

Net increase (decrease) in net assets resulting from operations

     (33,123,355 )      122,820,575        10,660,524        108,790,520        7,860,462        13,673,816   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     128,707,343        259,905,444        55,799,954        112,473,979        9,789,531        9,137,794   

Withdrawals

     (180,967,379 )      (501,283,416 )      (68,620,180 )      (130,547,942 )      (15,994,436 )      (17,320,402 ) 
             

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

                        
      (52,260,036 )      (241,377,972 )      (12,820,226 )      (18,073,963 )      (6,204,905 )      (8,182,608 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     (85,383,391 )      (118,557,397 )      (2,159,702 )      90,716,557        1,655,557        5,491,208   
             

Net assets:

                        

Beginning of period/year

     1,470,033,135        1,588,590,532        819,992,643        729,276,086        109,602,065        104,110,857   

End of period/year

   $     1,384,649,744      $     1,470,033,135      $     817,832,941      $     819,992,643      $     111,257,622      $     109,602,065   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    87

 

STATEMENTS OF CHANGES IN NET ASSETS (continued)

For the period and year ended:

 

 

     Large Value     Large Core     Large Growth  
    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

  

From operations:

                        

Net investment income (loss)

   $ 7,681,768      $ 17,614,276      $ 1,982,145      $ 4,205,876      $ 2,574,485      $ 6,849,377   

Net realized gain (loss)

     78,080,996        94,470,108        30,150,219        21,814,060        42,781,358        113,489,403   

Net change in unrealized appreciation (depreciation)

     47,645,256        29,113,417        8,145,418        13,087,450        46,266,685        23,287,865   

Net increase (decrease) in net assets resulting from operations

     133,408,020        141,197,801        40,277,782        39,107,386        91,622,528        143,626,645   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     30,308,279        62,284,142        11,713,489        15,282,782        28,690,052        68,357,724   

Withdrawals

     (90,386,107 )      (296,208,563 )      (25,172,199 )      (44,610,616 )          (101,182,492 )      (403,278,229 ) 
             

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

                        
      (60,077,828 )          (233,924,421 )      (13,458,710 )      (29,327,834 )      (72,492,440 )      (334,920,505 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     73,330,192        (92,726,620 )      26,819,072        9,779,552        19,130,088        (191,293,860 ) 
             

Net assets:

                        

Beginning of period/year

     785,039,279        877,765,899        244,983,746        235,204,194        825,013,595            1,016,307,455   

End of period/year

   $     858,369,471      $ 785,039,279      $     271,802,818      $     244,983,746      $ 844,143,683      $ 825,013,595   

 

     Mid Value     Mid Growth     Small Value  
    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

  

From operations:

                        

Net investment income (loss)

   $ 4,367,874      $ 10,393,561      $ (12,133 )    $ 191,875      $ 243,964      $ 1,151,661   

Net realized gain (loss)

     38,738,735        74,180,247        35,652,483        25,644,878        4,400,354        10,989,012   

Net change in unrealized appreciation (depreciation)

     68,680,292        52,088,706        (18,020,648 )      1,869,722        5,035,345        1,661,200   

Net increase (decrease) in net assets resulting from operations

     111,786,901        136,662,514        17,619,702        27,706,475        9,679,663        13,801,873   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     40,363,541        55,523,930        7,496,489        15,871,932        4,387,054        5,249,082   

Withdrawals

     (52,492,762 )      (163,056,686 )      (17,669,890 )      (85,247,660 )      (8,686,426 )      (52,825,641 ) 
             

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

                        
      (12,129,221 )          (107,532,756 )      (10,173,401 )      (69,375,728 )      (4,299,372 )      (47,576,559 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     99,657,680        29,129,758        7,446,301        (41,669,253 )      5,380,291        (33,774,686 ) 
             

Net assets:

                        

Beginning of period/year

     777,964,482        748,834,724        164,932,927        206,602,180        70,183,342            103,958,028   

End of period/year

   $     877,622,162      $ 777,964,482      $     172,379,228      $     164,932,927      $     75,563,633      $ 70,183,342   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    88

 

STATEMENTS OF CHANGES IN NET ASSETS (continued)

For the period and year ended:

 

 

     Small Core     Small Growth     International Equity  
    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

    

June 30, 2013

(unaudited)

    

December 31,

2012

  

From operations:

                        

Net investment income (loss)

   $ 1,117,153      $ 3,212,148      $ (121,608 )    $ (159,293 )    $ 6,789,876      $ 10,591,032   

Net realized gain (loss)

     77,187,677        28,699,445        (475,418 )      10,769,184        28,618,491        47,769,505   

Net change in unrealized appreciation (depreciation)

     (37,218,762 )      10,199,488        9,965,349        (4,949,469 )      (32,199,137 )      49,185,516   

Net increase (decrease) in net assets resulting from operations

     41,086,068        42,111,081        9,368,323        5,660,422        3,209,230        107,546,053   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     11,195,647        21,791,667        4,260,641        6,048,358        29,881,440        82,896,113   

Withdrawals

     (42,798,597 )      (63,026,884 )      (6,540,252 )      (61,533,273 )      (69,873,787 )      (256,180,194 ) 
             

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

                        
      (31,602,950 )      (41,235,217 )      (2,279,611 )      (55,484,915 )      (39,992,347 )          (173,284,081 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     9,483,118        875,864        7,088,712        (49,824,493 )      (36,783,117 )      (65,738,028 ) 
             

Net assets:

                        

Beginning of period/year

     296,936,051        296,060,187        58,299,798            108,124,291        614,432,457        680,170,485   

End of period/year

   $     306,419,169      $     296,936,051      $     65,388,510      $ 58,299,798      $     577,649,340      $ 614,432,457   

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    89

 

FINANCIAL HIGHLIGHTS

For the period or years ended:

 

     Money Market  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   923,221      $   948,358      $   995,629      $   1,065,396      $   1,132,907      $   1,325,802   

Total return

     (0.04 )%(A)      (0.11 )%      (0.04 )%      0.02 %      0.36 %      2.44 % 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.29 %(B)      0.28 %      0.28 %      0.28 %      0.27 %      0.27 % 

Before (waiver/reimbursement)

     0.29 %(B)      0.28 %      0.28 %      0.28 %      0.27 %      0.27 % 

Net investment income (loss) to average net assets

     (0.08 )%(B)      (0.11 )%      (0.04 )%      0.02 %      0.37 %      2.43 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     High Quality Bond  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   420,894      $   386,046      $   458,228      $   463,701      $   477,088      $   421,232   

Total return

     (0.26 )%(A)      2.95 %      2.16 %      4.20 %      9.83 %      0.55 % 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.38 %(B)      0.38 %      0.38 %      0.38 %      0.38 %      0.38 % 

Before (waiver/reimbursement)

     0.38 %(B)      0.38 %      0.38 %      0.38 %      0.38 %      0.38 % 

Net investment income (loss) to average net assets

     1.94 %(B)      2.10 %      2.43 %      2.99 %      3.75 %      4.24 % 

Portfolio turnover rate

     42 %(A)      68 %      84 %      87 %      104 %      64 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

      Inflation-Protected Securities  
      June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

    $   310,816      $   341,136      $   358,544      $   328,010      $   370,010      $   389,198   

Total return

      (6.97 )%(A)      7.06 %      12.33 %      6.23 %      10.22 %      (2.14 )% 

Ratio and supplemental data

                         

Expenses to average net assets

                         

After (waiver/reimbursement)

      0.40 %(B)      0.40 %      0.40 %      0.38 %      0.40 %      0.39 % 

Before (waiver/reimbursement)

      0.41 %(B)      0.40 %      0.40 %      0.38 %      0.40 %      0.39 % 

Net investment income (loss) to average net assets

      0.49 %(B)      1.43 %      3.30 %      2.04 %      1.02 %      4.99 % 

Portfolio turnover rate

      54 %(A)      103 %      134 %      117 %      118 %      154 % 

 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    90

 

FINANCIAL HIGHLIGHTS (continued)

For the period or years ended:

 

 

     Core Bond  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   1,384,650      $   1,470,033      $   1,588,591      $   1,622,006      $   1,749,531      $   1,667,313   

Total return

     (2.33 )%(A)      8.28 %      6.20 %      8.26 %      12.89 %      (1.83 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.39 %(B)      0.39 %      0.39 %      0.39 %      0.38 %      0.38 % 

Before (waiver/reimbursement)

     0.39 %(B)      0.39 %      0.39 %      0.39 %      0.38 %      0.38 % 

Net investment income (loss) to average net assets

     2.58 %(B)      3.03 %      3.54 %      3.65 %      4.45 %      5.12 % 

Portfolio turnover rate

     88 %(A)      297 %      406 %      633 %      1,014 %(C)      530 % 

 

(A) Not annualized.
(B) Annualized.
(C) Excludes investment securities received in kind.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     High Yield Bond  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   817,833      $   819,993      $   729,276      $   709,083      $   641,917      $   439,863   

Total return

     1.29 %(A)      15.14 %      4.93 %      15.81 %      57.21 %      (28.90 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.59 %(B)      0.59 %      0.59 %      0.59 %      0.59 %      0.58 % 

Before (waiver/reimbursement)

     0.59 %(B)      0.59 %      0.59 %      0.59 %      0.59 %      0.58 % 

Net investment income (loss) to average net assets

     6.46 %(B)      7.23 %      8.04 %      8.84 %      10.10 %      9.57 % 

Portfolio turnover rate

     32 %(A)      102 %      81 %      98 %      98 %      54 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     Balanced  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   111,258      $   109,602      $   104,111      $   116,337      $   137,734      $   168,930   

Total return

     7.22 %(A)      13.47 %      3.60 %      13.91 %      23.45 %      (26.71 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.50 %(B)      0.50 %      0.50 %      0.50 %      0.50 %      0.50 % 

Before (waiver/reimbursement)

     0.61 %(B)      0.61 %      0.62 %      0.59 %      0.55 %      0.53 % 

Net investment income (loss) to average net assets

     1.40 %(B)      1.82 %      2.26 %      2.42 %      3.01 %      3.45 % 

Portfolio turnover rate

     65 %(A)      150 %      245 %      211 %      167 %      154 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    91

 

FINANCIAL HIGHLIGHTS (continued)

For the period or years ended:

 

 

     Large Value  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		    

December 31,

2009

     December 31,
2008		  

Net assets end of period/year (000’s)

   $   858,369      $   785,039      $   877,766      $   1,014,115      $   1,263,463      $   1,450,970   

Total return

     17.25 %(A)      17.39 %      2.32 %      14.66 %      16.71 %      (42.94 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.48 %(B)      0.48 %      0.47 %      0.47 %      0.48 %      0.48 % 

Before (waiver/reimbursement)

     0.48 %(B)      0.48 %      0.47 %      0.47 %      0.48 %      0.48 % 

Net investment income (loss) to average net assets

     1.83 %(B)      2.08 %(C)      1.70 %      1.65 %      2.22 %      2.53 % 

Portfolio turnover rate

     52 %(A)      48 %      55 %      62 %      124 %(D)      26 % 

 

(A) Not annualized.
(B) Annualized.
(C) Includes litigation proceeds received during the year that represented 0.15%.
(D) Excludes investment securities received in kind.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     Large Core  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   271,803      $   244,984      $   235,204      $   255,995      $   280,896      $   281,774   

Total return

     16.61 %(A)      17.30 %      3.51 %      11.79 %      23.36 %      (36.65 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.63 %(B)      0.64 %      0.63 %      0.63 %      0.62 %      0.65 % 

Before (waiver/reimbursement)

     0.63 %(B)      0.64 %      0.63 %      0.63 %      0.62 %      0.65 % 

Net investment income (loss) to average net assets

     1.51 %(B)      1.68 %      1.37 %      1.47 %      1.57 %      1.31 % 

Portfolio turnover rate

     57 %(A)      54 %      63 %      55 %      168 %      99 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     Large Growth  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		    

December 31,

2009

     December 31,
2008		  

Net assets end of period/year (000’s)

   $   844,144      $   825,014      $   1,016,307      $   1,176,583      $   1,341,520      $   1,130,783   

Total return

     11.34 %(A)      14.91 %      (1.78 )%      16.62 %      35.56 %      (39.87 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.65 %(B)      0.65 %      0.65 %      0.65 %      0.65 %      0.65 % 

Before (waiver/reimbursement)

     0.66 %(B)      0.66 %      0.65 %      0.66 %      0.65 %      0.65 % 

Net investment income (loss) to average net assets

     0.61 %(B)      0.75 %      0.34 %      0.56 %      0.97 %      0.92 % 

Portfolio turnover rate

     25 %(A)      53 %      53 %      119 %      102 %(C)      102 % 

 

(A) Not annualized.
(B) Annualized.
(C) Excludes investment securities received in kind.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    92

 

FINANCIAL HIGHLIGHTS (continued)

For the period or years ended:

 

 

     Mid Value  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   877,622      $   777,964      $   748,835      $   909,134      $   808,661      $   630,249   

Total return

     14.41 %(A)      19.50 %      (2.19 )%      21.29 %      32.53 %      (37.73 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.70 %(B)      0.70 %      0.70 %      0.69 %      0.70 %      0.70 % 

Before (waiver/reimbursement)

     0.70 %(B)      0.70 %      0.70 %      0.69 %      0.70 %      0.70 % 

Net investment income (loss) to average net assets

     1.05 %(B)      1.36 %      1.08 %      1.14 %      1.44 %      1.69 % 

Portfolio turnover rate

     26 %(A)      71 %      69 %      76 %      122 %      68 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     Mid Growth  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   172,379      $   164,933      $   206,602      $   269,733      $   251,749      $   228,966   

Total return

     10.89 %(A)      13.93 %      (6.90 )%      29.27 %      25.24 %      (41.55 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.75 %(B)      0.75 %      0.75 %      0.75 %      0.75 %      0.75 % 

Before (waiver/reimbursement)

     0.76 %(B)      0.76 %      0.75 %      0.75 %      0.76 %      0.75 % 

Net investment income (loss) to average net assets

     (0.01 )%(B)      0.10 %      (0.33 )%      (0.36 )%      (0.23 )%      (0.02 )% 

Portfolio turnover rate

     189 %(A)      178 %      135 %      199 %      214 %      158 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     Small Value  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   75,564      $   70,183      $   103,958      $   134,427      $   145,727      $   156,628   

Total return

     14.00 %(A)      16.11 %      1.35 %      23.12 %      19.64 %      (26.63 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.85 %(B)      0.85 %      0.85 %      0.85 %      0.85 %      0.85 % 

Before (waiver/reimbursement)

     0.88 %(B)      0.88 %      0.87 %      0.87 %      0.88 %      0.87 % 

Net investment income (loss) to average net assets

     0.66 %(B)      1.41 %      0.63 %      0.84 %      1.24 %      1.94 % 

Portfolio turnover rate

     10 %(A)      15 %      16 %      121 %      103 %      117 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    93

 

FINANCIAL HIGHLIGHTS (continued)

For the period or years ended:

 

     Small Core  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   306,419      $   296,936      $   296,060      $   341,598      $   340,044      $   389,662   

Total return

     14.07 %(A)      15.04 %      (2.19 )%      29.89 %      27.64 %      (36.06 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.84 %(B)      0.84 %      0.84 %      0.85 %      0.85 %      0.85 % 

Before (waiver/reimbursement)

     0.84 %(B)      0.84 %      0.84 %      0.85 %      0.85 %      0.85 % 

Net investment income (loss) to average net assets

     0.73 %(B)      1.07 %      0.32 %      0.43 %      0.67 %      0.94 % 

Portfolio turnover rate

     116 %(A)      59 %      59 %      55 %      88 %      106 % 

 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     Small Growth  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   65,389      $   58,300      $   108,124      $   142,731      $   152,724      $   152,513   

Total return

     16.29 %(A)      1.30 %      (6.45 )%      25.65 %      32.99 %      (37.87 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.90 %(B)      0.90 %      0.90 %      0.90 %      0.90 %      0.90 % 

Before (waiver/reimbursement)

     0.93 %(B)      0.94 %      0.94 %      0.93 %      0.93 %      0.93 % 

Net investment income (loss) to average net assets

     (0.39 )%(B)      (0.20 )%      (0.37 )%      (0.41 )%      (0.38 )%      (0.18 )% 

Portfolio turnover rate

     36 %(A)      209 %      120 %      99 %      104 %      146 % 

 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

     International Equity  
     June 30, 2013
(unaudited)		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		     December 31,
2008		  

Net assets end of period/year (000’s)

   $   577,649      $   614,432      $   680,170      $   893,260      $   1,044,049      $   1,100,060   

Total return

     0.40 %(A)      17.35 %      (13.51 )%      14.94 %      26.10 %      (49.94 )% 

Ratio and supplemental data

                        

Expenses to average net assets

                        

After (waiver/reimbursement)

     0.86 %(B)      0.82 %      0.82 %      0.81 %      0.82 %      0.84 % 

Before (waiver/reimbursement)

     0.86 %(B)      0.82 %      0.82 %      0.81 %      0.82 %      0.84 % 

Net investment income (loss) to average net assets

     2.23 %(B)      1.65 %      1.70 %      1.45 %      1.39 %      2.78 % 

Portfolio turnover rate

     19 %(A)      23 %      24 %      29 %      138 %      174 % 

 

(A) Not annualized.
(B) Annualized.

Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

The notes to the financial statements are an integral part of this report.

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    94

 

NOTES TO FINANCIAL STATEMENTS

At June 30, 2013

(unaudited)

 

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

 

Transamerica Partners Portfolios (the “Series Portfolio”) is registered as an open-end management investment company under the Investment Company Act of 1940, as amended (the “1940 Act”), and was organized as a series trust under the laws of the State of New York. The Series Portfolio is composed of fifteen different series that are, in effect, separate investment funds: Transamerica Partners Money Market Portfolio (“Money Market”), Transamerica Partners High Quality Bond Portfolio (“High Quality Bond”), Transamerica Partners Inflation-Protected Securities Portfolio (“Inflation-Protected Securities”), Transamerica Partners Core Bond Portfolio (“Core Bond”), Transamerica Partners High Yield Bond Portfolio (“High Yield Bond”), Transamerica Partners Balanced Portfolio (“Balanced”), Transamerica Partners Large Value Portfolio (“Large Value”), Transamerica Partners Large Core Portfolio (“Large Core”), Transamerica Partners Large Growth Portfolio (“Large Growth”), Transamerica Partners Mid Value Portfolio (“Mid Value”), Transamerica Partners Mid Growth Portfolio (“Mid Growth”), Transamerica Partners Small Value Portfolio (“Small Value”), Transamerica Partners Small Core Portfolio (“Small Core”), Transamerica Partners Small Growth Portfolio (“Small Growth”), and Transamerica Partners International Equity Portfolio (“International Equity”) (each a “Portfolio” and collectively, the “Portfolios”). Each Portfolio issues shares of beneficial interest only in private placement transactions that do not involve a public offering within the meaning of Section 4(2) of the Securities Act of 1933, as amended (“Securities Act”). Only “accredited investors”, as defined in Regulation D under the Securities Act, may invest in the Portfolios. Accredited investors include investment companies, insurance company separate accounts, common or commingled trust funds, or other similar organizations or entities.

Transamerica Asset Management, Inc. (“TAM”) provides continuous and regular investment advisory services to the Portfolios. TAM acts as a manager of managers, providing advisory services that include, without limitation, the design and development of each Portfolio and its investment strategy and the ongoing review and evaluation of that investment strategy including recommending changes in strategy where it believes appropriate or advisable; the selection of one or more sub-advisers for each Portfolio employing a combination of quantitative and qualitative screens, research, analysis and due diligence; oversight and monitoring of sub-advisers and recommending changes to sub-advisers where it believes appropriate or advisable; recommending and implementing portfolio combinations and liquidations where it believes appropriate or advisable; regular supervision of the Portfolios’ investments; regular review of sub-adviser performance and holdings; ongoing trade oversight and analysis; regular monitoring to ensure adherence to investment process; risk management oversight and analysis; design, development, implementation and regular monitoring of the valuation of portfolio holdings; design, development, implementation and regular monitoring of the compliance process; review of proxies voted by sub-advisers; oversight of preparation and review, of materials for meetings of the Portfolios’ Board of Trustees; oversight of preparation of prospectuses, shareholder reports and other disclosure materials and filings; and oversight of other service providers to the Portfolios, such as the custodian, the transfer agent, the administrator, the distributor, the Portfolios’ independent accounting firm and legal counsel; supervision of the performance of recordkeeping and shareholder relations for the Portfolios; and ongoing cash management services. TAM uses a variety of quantitative and qualitative tools to carry out its investment advisory services. Where TAM employs sub-advisers, the sub-advisers carry out and effectuate the investment strategy designed for the Portfolios by TAM and are responsible, subject to TAM’s and the Board of Trustees oversight, for the day-to-day management of the Portfolios and for making decisions to buy, hold or sell a particular security.

Transamerica Fund Services, Inc. (“TFS”) provides supervisory and administrative services to each Portfolio. TFS’s supervisory and administrative services include performing certain administrative services for the Portfolios and supervising and overseeing the administrative, clerical, recordkeeping and bookkeeping services provided for the Portfolio by State Street Bank and Trust Company (“State Street”), to whom TFS has outsourced the provision of certain services as described below; to the extent agreed upon by TFS and the Portfolio from time to time, monitoring and verifying the custodian’s daily calculation of net asset values; shareholder relations functions; compliance services; valuation services; assisting in due diligence and in oversight and monitoring of certain activities of sub-advisers and certain aspects of Portfolio investments; recommending and implementing portfolio combinations and liquidations; oversight of the preparation and filing, and review, of all returns and reports in connection with federal, state and local taxes; oversight and review of regulatory reporting; supervising and coordinating the Portfolio’s custodian and its dividend disbursing agent and monitoring their services to the Portfolio; assisting the Portfolio in preparing reports to shareholders; preparation of agendas and supporting documents for and minutes of meetings of Trustees and committees of Trustees; and preparation of regular communications with the Trustees; and providing personnel and office space, telephones and other office equipment as necessary in order for TFS to perform supervisory and administrative services to the Portfolio. State Street performs back office services to support TFS, including furnishing financial and performance information about the Portfolios for inclusion in regulatory filings and Trustee and shareholder reports; preparing drafts of regulatory filings, Trustee materials, expenses and budgeting; tax compliance testing; and maintaining books and records. TFS pays all expenses it incurs in connection with providing these services in the Amended and Restated Administrative Services Agreement with the exception of the costs of certain services specifically assumed by the Portfolios, as numerated within the Statement of Operations.

This report should be read in conjunction with the Portfolios’ current prospectus, which contains additional information about the Portfolios, including investment objectives and strategies.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    95

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 1. (continued)

 

In the normal course of business, the Portfolios enter into contracts that contain a variety of representations that provide general indemnifications. The Portfolios’ maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Portfolios and/or their affiliates that have not yet occurred. However, based on experience, the Portfolios expect the risk of loss to be remote.

In preparing the Portfolios’ financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”), estimates or assumptions (which could differ from actual results) may be used that affect reported amounts and disclosures. The following is a summary of significant accounting policies followed by the Portfolios.

Securities lending: Securities are lent to qualified financial institutions and brokers. The lending of securities exposes the Portfolios to risks such as the following: (i) the borrowers may fail to return the loaned securities; (ii) the borrowers may not be able to provide additional collateral; (iii) the Portfolios may experience delays in recovery of the loaned securities or delays in access to collateral; or (iv) the Portfolios may experience losses related to the investment collateral. To minimize certain risks, loan counterparties pledge cash collateral equal to at least the market value of the securities loaned. The lending agent has agreed to indemnify the Portfolios in the case of default of any securities borrowed.

Cash collateral received is invested in the State Street Navigator Securities Lending Trust-Prime Portfolio (“Navigator”), a money market mutual fund registered under the 1940 Act. The Transamerica Asset Management family of mutual funds is a significant shareholder of the Navigator as of June 30, 2013. No individual portfolio has a significant holding in the Navigator.

By lending securities, the Portfolios seek to increase their net investment income through the receipt of interest and fees.

Such income is reflected separately in the Statements of Operations. Income from loaned securities in the Statements of Operations is net of fees and rebates earned by the lending agent for its services. The value of loaned securities and related collateral outstanding at June 30, 2013 is shown in the Schedules of Investments and the Statements of Assets and Liabilities.

Repurchase agreements: Securities purchased subject to a repurchase agreement are held at the Portfolios’ custodian, or designated sub-custodian related to tri-party repurchase agreements, and, pursuant to the terms of the repurchase agreement, must be collateralized by securities with an aggregate market value greater than or equal to 100% of the resale price. The Portfolios will bear the risk of value fluctuations until the securities can be sold and may encounter delays and incur costs in liquidating the securities. In the event of bankruptcy or insolvency of the seller, delays and costs may be incurred.

The open repurchase agreements and related collateral at June 30, 2013 are listed in the Schedules of Investments.

Foreign currency denominated investments: The accounting records of the Portfolios are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the closing exchange rate each day. The cost of foreign securities is translated at the exchange rates in effect when the investment was acquired. Each Portfolio combines fluctuations from currency exchange rates and fluctuations in value when computing net realized and unrealized gains or losses from investments.

Net foreign currency gains and losses resulting from changes in exchange rates include: 1) foreign currency fluctuations between trade date and settlement date of investment security transactions; 2) gains and losses on forward foreign currency contracts; and 3) the difference between the receivable amounts of interest and dividends recorded in the accounting records in U.S. dollars and the amounts actually received.

Foreign currency denominated assets may involve risks not typically associated with domestic transactions. These risks include revaluation of currencies, adverse fluctuations in foreign currency values, and possible adverse political, social, and economic developments, including those particular to a specific industry, country, or region.

Forward foreign currency contracts: The Portfolios are subject to foreign currency exchange rate risk exposure in the normal course of pursuing their investment objectives. The Portfolios, with the exception of Money Market, enter into forward foreign currency contracts to hedge against exchange rate risk arising from investments in securities denominated in foreign currencies. Forward foreign currency contracts are marked-to-market daily, with the change in value recorded as an unrealized gain or loss. When the contracts are settled, a realized gain or loss is incurred. Risks may arise from changes in market value of the underlying currencies and from the possible inability of counterparties to meet the terms of their contracts.

Open forward foreign currency contracts at June 30, 2013 are listed in the Schedules of Investments.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    96

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 1. (continued)

 

Foreign taxes: The Portfolios may be subjected to taxes imposed by the countries in which they invest, with respect to their investments in issuers existing or operating in such countries. The Portfolios may also be subject to foreign taxes on income, gains on investments, or currency repatriation, a portion of which may be recoverable. The Portfolios accrue such taxes and recoveries as applicable when the related income or capital gains are earned, and based upon the current interpretation of tax rules and regulations that exist in the markets in which the Portfolios invest. Some countries require governmental approval for the repatriation of investment income, capital, or the proceeds of sales earned by foreign investors. In addition, if there is deterioration in a country’s balance of payments or for other reasons, a country may impose temporary restrictions of foreign capital remittances abroad.

Option contracts: The Portfolios are subject to equity price risk, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Portfolios, with the exception of Money Market, enter into option contracts to manage exposure to various market fluctuations. Portfolios purchase or write put and call options on U.S. securities, indices, futures, swaps (“swaptions”), commodities, and currency transactions. Options are valued at the average of the bid and ask (“Mean Quote”) established each day at the close of the board of trade or exchange on which they are traded. Options are marked-to-market daily to reflect the current value of the option. The primary risks associated with options are an imperfect correlation between the change in value of the securities held and the prices of the option contracts, the possibility of an illiquid market, and an inability of the counterparty to meet the contract terms.

Purchased options: Purchasing call options tends to increase exposure to the underlying instrument. Purchasing put options tends to decrease exposure to the underlying instrument. The Portfolios pay premiums, which are included in the Statements of Assets and Liabilities as an investment and subsequently marked-to-market to reflect the current value of the option. The risk associated with purchasing put and call options is limited to the premium paid. Premiums paid from options which expire are treated as realized losses. Premiums paid for purchasing options which are exercised or closed are added to the amounts paid or offset against the proceeds on the underlying U.S. security, index, future, swaption, commodity, or currency transaction to determine the realized gain or loss.

Written options: Writing call options tends to decrease exposure to the underlying instrument. Writing put options tends to increase exposure to the underlying instrument. When a Portfolio writes a covered call or put option, the premium received is recorded as a liability in the Statements of Assets and Liabilities and is subsequently marked-to-market to reflect the current market value of the option written. Premiums received from written options which expire unexercised are treated as realized gains. Premiums received from writing options/swaptions which are exercised or closed are added to the proceeds or offset against amounts paid on the underlying U.S. security, index, future, swaption, commodity, or currency transaction to determine the realized gain or loss. In writing an option, a Portfolio bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Exercise of an option written by a Portfolio could result in the Portfolio selling or buying a security or currency at a price different from the current market value.

Inflation-capped options: A Portfolio purchases or writes inflation-capped options to enhance returns or for hedging opportunities. The purpose of purchasing inflation-capped options is to protect a Portfolio from inflation erosion above a certain rate on a given notional exposure. A floor can be used to give down-side protection to the investments in inflation-linked products.

The underlying face amounts of open option and swaption contracts at June 30, 2013, are listed in the Schedules of Investments.

Transactions in written options were as follows:

 

Inflation-Protected Securities   Premiums     Contracts  

Balance at December 31, 2012

   $ 8,848        44   

Sales

     333,219        1,060   

Closing Buys

     (126,962 )      (212 ) 

Expirations

     —        —   

Exercised

     (58,849 )      (91 ) 
   

 

 

    

 

 

  

Balance at June 30, 2013

   $ 156,256        801   

 

Core Bond   Premiums     Contracts  

Balance at December 31, 2012

   $ —        —   

Sales

     436,192        1,084   

Closing Buys

     (436,192 )      (1,084 ) 

Expirations

     —        —   

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at June 30, 2013

   $ —        —   

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    97

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 1. (continued)

 

Transactions in written swaptions, inflation cap options and foreign exchange options were as follows:

 

Inflation-Protected Securities   Premiums     Notional
Amount		  

Balance at December 31, 2012

   $ 399,123      $ 38,505,000   

Sales

     523,564        60,495,000   

Closing Buys

       (108,931 )      (6,705,000 ) 

Expirations

     (25,264 )      (6,495,000 ) 

Exercised

     (27,195 )      (3,400,000 ) 
   

 

 

    

 

 

  

Balance at June 30, 2013

   $ 761,297      $ 82,400,000   

 

Inflation-Protected Securities   Premiums    

Notional

Amount

  

Balance at December 31, 2012

   $ —      AUD —   

Sales

       20,508        1,700,000   

Closing Buys

     —        —   

Expirations

     —        —   

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at June 30, 2013

   $ 20,508      AUD 1,700,000   

 

Inflation-Protected Securities   Premiums    

Notional

Amount

  

Balance at December 31, 2012

   $ 224,437      EUR 4,270,000   

Sales

     102,597        8,945,000   

Closing Buys

     —        —   

Expirations

     (66,524 )      (5,040,000 ) 

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at June 30, 2013

   $ 260,510      EUR 8,175,000   

 

Core Bond   Premiums     Notional
Amount		  

Balance at December 31, 2012

   $ 229,600      $ 12,300,000   

Sales

     —        —   

Closing Buys

       (229,600 )        (12,300,000 ) 

Expirations

     —        —   

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at June 30, 2013

   $ —      $ —   

Futures contracts: The Portfolios are subject to equity and commodity price risks, interest rate risk, and foreign currency exchange rate risk in the normal course of pursuing their investment objectives. The Portfolios, with the exception of Money Market, use futures contracts to gain exposure to, or hedge against, changes in the value of equities and commodities, interest rates, or foreign currencies. A futures contract represents a commitment for the future purchase or sale of an asset at a specified price on a specified date. Upon entering into such contracts, the Portfolios are required to deposit with the broker, either in cash or in securities, an initial margin in an amount equal to a certain percentage of the contract amount. Subsequent payments (variation margin) are paid or received by the Portfolios each day, depending on the daily fluctuations in the value of the contract, and are recorded for financial statement purposes as unrealized gains or losses by the Portfolios. Upon entering into such contracts, the Portfolios bear the risk of equity and commodity prices, interest rates, or exchange rates moving unexpectedly, in which case, the Portfolios may not achieve the anticipated benefits of the futures contracts and may realize losses. With futures, there is minimal counterparty credit risk to the Portfolios since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

The open futures contracts at June 30, 2013 are listed in the Schedules of Investments. The variation margin receivable or payable, as applicable, is included in the Statements of Assets and Liabilities.

Swap agreements: Swap agreements are bilaterally negotiated agreements between a Portfolio and a counterparty to exchange or swap investments, cash flows, assets, foreign currencies, or market-linked returns at specified, future intervals. Swap agreements are privately negotiated in the over-the-counter (“OTC”) market and may be executed in multilateral or other trade facility platforms, such as a registered

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    98

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 1. (continued)

 

exchange (“centrally cleared swaps”). The Portfolios, with the exception of Money Market, enter into credit default, cross-currency, interest rate, total return, variance, and other forms of swap agreements to manage exposure to credit, currency, interest rate, and commodity risks. In connection with these agreements, securities or cash may be identified as collateral or margin in accordance with the terms of the respective swap agreements to provide assets of value and recourse in the event of default or bankruptcy/insolvency. Swaps are marked-to-market daily based upon values from third party vendors, which may include a registered exchange, or quotations from market makers to the extent available and the change in value, if any, is recorded as an unrealized gain or loss in the Statements of Assets and Liabilities.

Payments received or made at the beginning of the measurement period are reflected as such in the Statements of Assets and Liabilities, and represent payments made or received upon entering into the swap agreements to compensate for differences between the stated terms of the swap agreement and prevailing market conditions (credit spreads, currency exchange rates, interest rates, and other relevant factors). These upfront payments are recorded as realized gains or losses in the Statements of Operations upon termination or maturity of the swap. A liquidation payment received or made at the termination of the swap is recorded as realized gain or loss in the Statements of Operations. Net periodic payments received or paid by the Portfolios are included as part of realized gains or losses in the Statements of Operations.

Specific risks and accounting related to each type of swap agreement are identified and described in the following paragraphs:

Credit default swap agreements: The Portfolios are subject to credit risk in the normal course of pursuing their investment objectives. The Portfolios enter into credit default swaps to manage their exposure to the market, or certain sectors of the market, to reduce their risk exposure to defaults of corporate and sovereign issuers, or to create exposure to corporate or sovereign issuers to which they are not otherwise exposed. Credit default swaps involve the exchange of a fixed rate premium for protection against the loss in value of an underlying security in the event of a defined credit event, such as payment default or bankruptcy (buy protection).

Under a credit default swap, one party acts as a guarantor by receiving the fixed periodic payment in exchange for the commitment to purchase the underlying security at par if the defined credit event occurs (sell protection). The Portfolios’ maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the notional amount of the contract. This risk is mitigated by having a master netting arrangement between the Portfolios and the counterparty, and by the posting of collateral.

Certain Portfolios sell credit default swaps, which exposes them to risk of loss from credit risk related events specified in the contracts. Although contract-specific, credit events are generally defined as bankruptcy, failure to pay, restructuring, obligation acceleration, obligation default, or repudiation/moratorium. The aggregate fair value of the credit default swaps are disclosed in the Schedules of Investments. The aggregate fair value of assets posted as collateral, net of assets received as collateral, for these swaps is included in the footnotes to the Schedules of Investments. If a defined credit event had occurred during the period, the swaps’ credit-risk-related contingent features would have been triggered, and the Portfolios would have been required to pay the notional amounts for the credit default swaps with a sell protection less the value of the contracts’ related reference obligations.

Interest rate swap agreements: The Portfolios are subject to interest rate risk exposure in the normal course of pursuing their investment objectives. Because a Portfolio holds fixed rate bonds, the value of these bonds may decrease if interest rates rise. To help hedge against this risk, the Portfolios enter into interest rate swap agreements. Interest rate swaps are agreements between two parties to exchange cash flows based on a notional principal amount. Portfolios with interest rate agreements can elect to pay a fixed rate and receive a floating rate, or receive a fixed rate and pay a floating rate, on a notional principal amount. The risks of interest rate swaps include changes in market conditions, which will affect the value of the contract or the cash flows, and the possible inability of the counterparty to fulfill its obligations under the agreement. The Portfolios’ maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from/paid to the counterparties over the contracts’ remaining lives, to the extent that that amount is positive. This risk is mitigated by having a master netting arrangement between the Portfolios and the counterparty, and by the posting of collateral.

The open centrally cleared swap agreements at June 30, 2013 are listed in the Schedules of Investments. The variation margin receivable or payable, as applicable, is included in the Statements of Assets and Liabilities.

The open OTC swap agreements at June 30, 2013 are listed in the Schedules of Investments. The premiums paid (received), as applicable, is included in the Statements of Assets and Liabilities along with the unrealized appreciation (depreciation).

Cash overdraft: Throughout the period, the Portfolios may have cash overdraft balances. A fee is incurred on these overdrafts, calculated by multiplying the overdraft by a rate based on the federal funds rate. Payables, if any, are reflected as Due to Custodian in the Statements of Assets and Liabilities. Expenses from cash overdrafts are included in Other in the Statements of Operations.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    99

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 1. (continued)

 

Short sales: A short sale is a transaction in which a Portfolio sells securities it does not own, but has borrowed, in anticipation of a decline in the market price of the securities. The Portfolios are obligated to replace the borrowed securities at the market price at the time of replacement. The Portfolios’ obligation to replace the securities borrowed in connection with a short sale is fully secured by collateral deposited with the custodian. In addition, the Portfolios consider the short sale to be a borrowing by the Portfolios that is subject to the asset coverage requirements of the 1940 Act. Short sales represent an aggressive trading practice with a high risk/return potential, and short sales involve special considerations. Risks of short sales include that possible losses may be unlimited (e.g., if the price of stocks sold short rises), whereas losses from direct purchases of securities are limited to the total amount invested, and the Portfolio may be unable to replace borrowed securities sold short.

The Portfolios investing in short sales are liable for any dividends payable on securities while those securities are in a short position and also bears other costs, such as charges for the prime brokerage accounts, in connection with its short positions. These costs are reported as dividends and/or interest from securities sold short in the Statements of Operations.

Loan participations and assignments: The Portfolios may invest in direct debt instruments which are interests in amounts owed to lenders or lending syndicates by corporate, governmental, or other borrowers, either in the form of participations at the time the loan is originated (“Participations”), or by buying an interest in the loan in the secondary market from a financial institution or institutional investor (“Assignments”). Participations and Assignments in commercial loans may be secured or unsecured. These investments may include standby financing commitments, including revolving credit facilities that obligate the Portfolios to supply additional cash to the borrowers on demand. Loan Participations and Assignments involve risks of insolvency of the lending banks or other financial intermediaries. As such, the Portfolios assume the credit risks associated with the corporate borrowers and may assume the credit risks associated with the interposed banks or other financial intermediaries.

The Portfolios may be contractually obligated to receive approval from the agent banks and/or borrowers prior to the sale of these investments. The Portfolios that participate in such syndications, or that can buy a portion of the loans, become part lenders. Loans are often administered by agent banks acting as agents for all holders.

The agent banks administer the terms of the loans, as specified in the loan agreements. In addition, the agent banks are normally responsible for the collection of principal and interest payments from the corporate borrowers and the apportionment of these payments to the credit of all institutions that are parties to the loan agreements. Unless the Portfolios have direct recourse against the corporate borrowers under the terms of the loans or other indebtedness, the Portfolios may have to rely on the agent banks or other financial intermediaries to apply appropriate credit remedies against corporate borrowers.

The Portfolios held no unsecured loan participations at June 30, 2013.

Structured notes: Certain Portfolios invest in structured notes. A structured debt instrument is a hybrid debt security that has an embedded derivative. This type of instrument is used to manage cash flows from the debt security. Investing in structured notes involves the credit risk of the issuer and the normal risks of price changes in response to changes in interest rates. Structured notes may be less liquid than other types of securities and more volatile than their underlying reference instruments. All structured notes are listed within the Schedules of Investments.

To be announced (“TBA”) commitments: TBA commitments are entered into to purchase or sell securities for a fixed price at a future date, typically not to exceed 45 days. They are considered securities in themselves, and involve a risk of loss if the value of the security to be purchased declines, or the value of the security to be sold increases, prior to settlement date, in addition to the risk of decline in the value of the Portfolios’ other assets. Unsettled TBA commitments are valued at the current value of the underlying securities, according to the procedures described under Security Valuations. Open balances are included in the payable or receivable for investments purchased or sold in the Statements of Assets and Liabilities.

When-Issued, forward delivery securities and Delayed Delivery Settlements: The Portfolios may purchase or sell securities on a when-issued, forward (delayed) delivery basis or delayed settlement. When-issued and forward delivery transactions are made conditionally because a security, although authorized, has not yet been issued in the market. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Portfolios engage in when-issued transactions to obtain an advantageous price and yield at the time of the transaction. The Portfolios engage in when-issued and forward delivery transactions for the purpose of acquiring securities, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Portfolios may be required to pay more at settlement than the security is worth. In addition, the Portfolios are not entitled to any of the interest earned prior to settlement.

Delayed Delivery transactions involve a commitment by the Portfolios to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery transactions are outstanding,

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    100

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 1. (continued)

 

the Portfolios will segregate with its custodian either cash, U.S. Government securities, or other liquid assets at least equal to the value of the commitments until payment is made. When purchasing a security on a delayed delivery basis, the Portfolios assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. These transactions also involve a risk to the Portfolios if the other party to the transaction defaults on its obligation to make payment or delivery and the Portfolios are delayed or prevented from completing the transaction. The Portfolios may dispose of or renegotiate a delayed delivery transaction after it is entered into, which may result in a realized gain or loss. When the Portfolios sell a security on a delayed delivery basis, the Portfolios do not participate in future gains and losses on the security.

Treasury inflation-protected securities (“TIPS”): Certain Portfolios invest in TIPS, specially structured bonds in which the principal amount is adjusted daily to keep pace with inflation as measured by the U.S. Consumer Price Index. The adjustments to principal due to inflation/deflation are reflected as increases/decreases to Interest income in the Statements of Operations with a corresponding adjustment to cost.

Payment in-kind securities (“PIKs”): PIKs give the issuer the option of making interest payments in either cash or additional debt securities at each interest payment date. Those additional debt securities usually have the same terms, including maturity dates and interest rates, and associated risks as the original bonds. The daily market quotations of the original bonds may include the accrued interest (referred to as a “dirty price”) and require a pro-rata adjustment from unrealized appreciation or depreciation on investments to interest receivable on the Statements of Assets and Liabilities.

The PIKs at June 30, 2013 are listed in the Schedules of Investments.

Restricted and illiquid securities: The Portfolios may invest in unregulated or restricted securities. Restricted and illiquid securities are subject to legal or contractual restrictions on resale or are illiquid. Restricted securities generally may be resold in transactions exempt from registration. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at the current valuation may be difficult.

The restricted and illiquid securities at June 30, 2013 are listed in the Schedules of Investments.

Commission recapture: The sub-adviser, to the extent consistent with the best execution and usual commission rate policies and practices, has elected to place security transactions of the Portfolios with broker/dealers with which other funds or portfolios advised by TAM has established a Commission Recapture Program. A Commission Recapture Program is any arrangement under which a broker/dealer applies a portion of the commissions received by such broker/dealer on the security transactions to the Portfolios. In no event will commissions paid by the Portfolios be used to pay expenses that would otherwise be borne by any other funds or portfolios advised by TAM, or by any other party.

Commissions recaptured for the period ended June 30, 2013, are included in net realized gain (loss) in the Statements of Operations and are summarized as follows:

 

Portfolio   Commissions  

Large Growth

   $ 17,871   

Mid Value

     91,104   

Mid Growth

     16,834   

Small Value

     315   

Small Core

       44,658   

Small Growth

     2,176   

International Equity

     4,488   

Portfolios not listed in the above table did not have any commissions recaptured during the period ended June 30, 2013.

Security transactions and investment income: Security transactions are recorded on the trade date. Security gains and losses are calculated on the specific identification basis. Dividend income, if any, is recorded on the ex-dividend date or, in the case of foreign securities, as soon as the Portfolios are informed of the ex-dividend dates, net of foreign taxes. Interest income, including accretion of discounts and amortization of premiums, is recorded on the accrual basis commencing on the settlement date.

Real estate investment trust (“REITs”): Dividend income related to a REIT is recorded at management’s estimate of the income included in distributions from the REIT investments. Distributions received in excess of the estimated amount are recorded as a reduction of the cost of investments. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after the fiscal year end and may differ from the estimated amounts.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    101

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 1. (continued)

 

There are certain additional risks involved in investing in REITs. These include, but are not limited to, economical conditions, changes in zoning laws, real estate values, property taxes, and interest rates.

NOTE 2. SECURITY VALUATIONS

All investments in securities are recorded at their estimated fair value. The Portfolios value their investments at the close of the New York Stock Exchange (“NYSE”), normally 4 p.m. Eastern Time, each day the NYSE is open for business. The Portfolios utilize various methods to measure the fair value of their investments on a recurring basis. GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The three Levels of inputs of the fair value hierarchy are defined as follows:

Level 1—Unadjusted quoted prices in active markets for identical securities.

Level 2—Inputs, other than quoted prices included in Level 1, that are observable, either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.

Level 3—Unobservable inputs, which may include TAM’s internal valuation committee’s (the “Valuation Committee”) own assumptions in determining the fair value of investments. Factors considered in making this determination may include, but are not limited to, information obtained by contacting the sub-adviser, issuer, analysts, or the appropriate stock exchange (for exchange-traded securities), analysis of the issuer’s financial statements or other available documents and, if necessary, available information concerning other securities in similar circumstances.

The Portfolios’ Board of Trustees has delegated the valuation functions on a day-to-day basis to TAM, subject to board oversight. TAM has formed the Valuation Committee to monitor and implement the fair valuation policies and procedures as approved by the Board of Trustees. These policies and procedures are reviewed at least annually by the Board of Trustees. The Valuation Committee, among other tasks, monitors for when market quotations are not readily available or are unreliable and determines in good faith the fair value of the portfolio investments. For instances in which daily market quotes are not readily available, securities may be valued, pursuant to procedures adopted by the Board of Trustees, with reference to other instruments or indices. Depending on the relative significance of valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy. The Valuation Committee may employ a market-based approach which may use related or comparable assets or liabilities, recent transactions, market multiples, book values, and other relevant information for the security to determine the fair value of the security. An income-based valuation approach may also be used in which the anticipated future cash flows of the security are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the securities. When the Portfolios use fair value methods that rely on significant unobservable inputs to determine a security’s value, the Valuation Committee will choose the method that is believed to accurately reflect fair value. These securities are categorized in Level 3 of the fair value hierarchy. The Valuation Committee reviews fair value measurements on a regular and ad hoc basis and may, as deemed appropriate, update the security valuations as well as the fair valuation guidelines.

The availability of observable inputs may vary from security to security and is affected by a wide variety of factors, including, but not limited to, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is generally greatest for instruments categorized in Level 3. Due to the inherent uncertainty of valuation, the Valuation Committee’s determination of values may differ significantly from values that would have been realized had a ready market for investments existed, and the differences could be material. The Valuation Committee employs various methods for calibrating these valuation approaches, including a regular review of valuation methodologies, key inputs and assumptions, transactional back-testing, and reviews of any market related activity.

The inputs used to measure fair value may fall into different Levels of the fair value hierarchy. In such cases, for disclosure purposes, the Level in the fair value hierarchy that is assigned to the fair value measurement of a security is determined based on the lowest Level input that is significant to the fair value measurement in its entirety.

For assets and liabilities using significant unobservable inputs (Level 3), GAAP requires a reconciliation of the beginning to the ending balances for reported market values that presents changes attributed to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The Level 3 reconciliation, if any, is disclosed in the Valuation Summary of each respective Portfolio’s Schedule of Investments.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    102

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 2. (continued)

 

Fair value measurements: Descriptions of the valuation techniques applied to the Portfolios’ major categories of assets and liabilities measured at fair value on a recurring basis are as follows:

Investment companies: Investment companies are valued at the net asset value (“NAV”) of the underlying portfolio. These securities are actively traded and no valuation adjustments are applied. Exchange-Traded Funds are stated at the last reported sale price or closing price on the day of valuation taken from the primary exchange where the security is principally traded. They are categorized in Level 1 of the fair value hierarchy. Investments in privately held investment funds with significant restrictions on redemptions where the inputs of NAVs are unobservable will be valued based upon the NAVs of such investments and are categorized in Level 3 of the fair value hierarchy.

Equity securities (common and preferred stocks): Securities are stated at the last reported sales price or closing price on the day of valuation taken from the primary exchange where the security is principally traded. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized in Level 1 of the fair value hierarchy.

Foreign securities, in which the primary trading market closes at the same time or after the NYSE, are valued based on quotations from the primary market in which they are traded and are categorized in Level 1. Because many foreign securities markets and exchanges close prior to the close of the NYSE, closing prices for foreign securities in those markets or on those exchanges do not reflect the events that occur after that close. Certain foreign securities may be fair valued using a pricing service that considers the correlation of the trading patterns of the foreign security to the intraday trading in the U.S. markets for investments such as American Depositary Receipts, financial futures, Exchange Traded Funds, and the movement of the certain indices of securities based on a statistical analysis of their historical relationship; such valuations generally are categorized in Level 2.

Preferred stock, and other equities traded on inactive markets or valued by reference to similar instruments are also generally categorized in Level 2 or Level 3 if inputs are unobservable.

Securities lending collateral: Securities lending collateral is invested in a money market fund which is valued at the net asset value of the underlying securities and no valuation adjustments are applied. It is categorized in Level 1 of the fair value hierarchy.

Repurchase agreements: Repurchase agreements are traded on active markets or valued by reference to similar instruments and are generally categorized in Level 2.

Corporate bonds: The fair value of corporate bonds is estimated using various techniques, which consider recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, fundamental data relating to the issuer, and credit default swap spreads adjusted for any basis difference between cash and derivative instruments. While most corporate bonds are categorized in Level 2 of the fair value hierarchy, in instances where lower relative weight is placed on transaction prices, quotations, or similar observable inputs, they are categorized in Level 3.

Asset backed securities: The fair value of asset backed securities is estimated based on models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield, and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. To the extent the inputs are observable and timely, the values would generally be categorized in Level 2 of the fair value hierarchy; otherwise they would be categorized in Level 3.

Short-term notes: Short-term notes are valued using amortized cost, which approximates fair value. To the extent the inputs are observable and timely, the values would be generally categorized in Level 2 of the fair value hierarchy; otherwise they would be categorized in Level 3.

Government securities: Government securities are normally valued using a model that incorporates market observable data such as reported sales of similar securities, broker quotes, yields, bids, offers, and reference data. Certain securities are valued by principally using dealer quotations. Government securities generally are categorized in Level 2 of the fair value hierarchy, or in Level 3 if inputs are unobservable.

U.S. government agency securities: U.S. government agency securities are comprised of two main categories consisting of agency issued debt and mortgage pass-throughs. Generally, agency issued debt securities are valued in a manner similar to U.S. government securities. Mortgage pass-throughs include TBA securities and mortgage pass-through certificates. Generally, TBA securities and mortgage passthroughs are valued using dealer quotations. Depending on market activity levels and whether quotations or other observable data are used, these securities are typically categorized in Level 2 of the fair value hierarchy; otherwise they would be categorized in Level 3.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    103

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 2. (continued)

 

Restricted securities (equity and debt): Restricted securities for which quotations are not readily available are valued at fair value as determined in good faith by the Valuation Committee under the supervision of the Portfolios’ Board of Trustees. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted securities issued by nonpublic entities may be valued by reference to comparable public entities and/or fundamental data relating to the issuer. Depending on the relative significance of observable valuation inputs, these instruments may be classified in either Level 2 or Level 3 of the fair value hierarchy.

Derivative instruments: Listed derivatives that are actively traded are valued based on quoted prices from the exchange and are categorized in Level 1 of the fair value hierarchy. OTC derivative contracts include forward, swap, swaption, and option contracts related to interest rates, foreign currencies, credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of the OTC derivative products are modeled taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case of interest rate swap and option contracts. A substantial majority of OTC derivative products valued by the Portfolios using pricing models fall into this category and are categorized in Level 2 of the fair value hierarchy or in Level 3 if inputs are unobservable.

The hierarchy classification of inputs used to value the Portfolios’ investments at June 30, 2013, is disclosed in the Valuation Summary of each Portfolio’s Schedule of Investments.

NOTE 3. RELATED PARTY TRANSACTIONS

TAM, the Portfolios’ investment adviser, is directly owned by Western Reserve Life Assurance Co. of Ohio and AUSA Holding Company (“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.

Transamerica Financial Life Insurance Company (“TFLIC”) is a wholly-owned subsidiary of Aegon USA. The percentage of each Portfolio that is owned by TFLIC sub-accounts is as follows:

 

TFLIC Sub-accounts  

Investments

in Portfolio

  

Money Market

     3.74 % 

High Quality Bond

     14.21   

Inflation-Protected Securities

     12.51   

Core Bond

     12.24   

High Yield Bond

     6.00   

Balanced

     50.65   

Large Value

     36.54   

Large Core

     55.57   

Large Growth

     38.57   

Mid Value

     5.47   

Mid Growth

     0.75   

Small Value

     1.16   

Small Core

     51.07   

Small Growth

     1.27   

International Equity

     22.65   

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    104

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 3. (continued)

 

Diversified Investment Advisors Collective Investment Trust (“CIT”) is managed by Massachusetts Fidelity Trust Company, which is a wholly-owned subsidiary of Aegon USA. The percentage of each Portfolio that is owned by CIT sub-accounts is as follows:

 

CIT Sub-accounts  

Investments

in Portfolio

  

Money Market

     15.95 % 

High Quality Bond

     38.86   

Inflation-Protected Securities

     18.47   

Core Bond

     30.64   

High Yield Bond

     23.63   

Balanced

     4.34   

Large Value

     18.96   

Large Core

     13.37   

Large Growth

     18.28   

Mid Value

     9.14   

Mid Growth

     33.01   

Small Value

     33.94   

Small Core

     11.51   

Small Growth

     25.14   

International Equity

     32.96   

TAM Collective Trust Funds (“CTF”) is managed by Massachusetts Fidelity Trust Company, which is a wholly-owned subsidiary of Aegon USA. The percentage of each Portfolio that is owned by CTF sub-accounts is as follows:

 

CTF Sub-accounts  

Investments

in Portfolio

  

Money Market

     0.04 % 

High Quality Bond

     9.74   

Inflation-Protected Securities

     4.56   

Core Bond

     5.39   

High Yield Bond

     18.47   

Balanced

     —   

Large Value

     4.92   

Large Core

     3.31   

Large Growth

     2.94   

Mid Value

     23.59   

Mid Growth

     12.05   

Small Value

     8.30   

Small Core

     1.86   

Small Growth

     8.21   

International Equity

     5.04   

TFS is the Portfolios’ administrator and receives no separate compensation for providing transfer agency services. TAM and TFS are affiliates of Aegon NV.

Certain officers and trustees of the Series Portfolio and of the entities that invest in the Series Portfolio are also officers and/or directors of TAM or its affiliates. No interested trustee receives compensation from the Series Portfolio or from the entities that invest in the Series Portfolio.

Investment advisory fees: TAM manages the assets of each Portfolio of the Series Portfolio pursuant to the Investment Advisory Agreement with the Series Portfolio. For its services, TAM receives fees from each Portfolio, accrued daily and payable monthly, at an annual rate equal to the percentages specified in the table below of the corresponding Portfolios’ average daily net assets (“ANA”).

For each Portfolio, TAM has entered into Investment Sub-Advisory Agreements with the Portfolios’ sub-advisers. It is the responsibility of each sub-adviser to make the day-to-day investment decisions of the Portfolios, and to place the purchase and sales orders for securities transactions of the Portfolios, subject in all cases to the general supervision of TAM.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    105

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 3. (continued)

 

Payment of fees to the sub-advisers is the responsibility of TAM, and is not an additional expense of a Portfolio.

 

Portfolio  

Advisory

Fee

  

Money Market

     0.25 % 

High Quality Bond

     0.35   

Inflation-Protected Securities

     0.35   

Core Bond

     0.35   

High Yield Bond

     0.55   

Balanced

     0.45   

Large Value

     0.45   

Large Core

     0.60   

Large Growth

     0.62   

Mid Value

     0.67   

Mid Growth

     0.72   

Small Value

     0.82   

Small Core (Effective June 28, 2013)

    

First $300 Million

     0.80   

Over $300 Million

     0.77   

Small Core (Prior to June 28, 2013)

     0.80   

Small Growth

    

First $300 Million

     0.84   

Over $300 Million

     0.80   

International Equity

     0.75   

TAM has voluntarily elected to waive fees to the extent that the total operating expenses of a Portfolio exceed the following expense caps (as a percentage of ANA):

 

Portfolio   Expense
Cap		  

Money Market

     0.30 % 

High Quality Bond

     0.40   

Inflation-Protected Securities

     0.40   

Core Bond

     0.40   

High Yield Bond

     0.60   

Balanced

     0.50   

Large Value

     0.50   

Large Core

     0.65   

Large Growth

     0.65   

Mid Value

     0.70   

Mid Growth

     0.75   

Small Value

     0.85   

Small Core

     0.85   

Small Growth

     0.90   

International Equity

     0.90   

Such fee waivers are not subject to recoupment by TAM in future years.

TAM also may waive additional fees from time to time to help maintain competitive expense ratios. These arrangements are voluntary and may be terminated at any time. Expenses reimbursed that are unsettled at year end are included in Due from advisor in the Statements of Assets and Liabilities.

Deferred compensation plan: Under a non-qualified deferred compensation plan effective January 1, 2008, as amended and restated (the “Deferred Compensation Plan”), available to the Trustees, compensation may be deferred that would otherwise be payable by the Separate Account to an Independent Trustee on a current basis for services rendered as Trustee. Deferred compensation amounts will accumulate based on the value of Class A (or comparable) shares of a series of Transamerica Funds (without imposition of sales charge), as elected by the Trustee.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    106

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 3. (continued)

 

Brokerage commissions: There were no brokerage commissions incurred on security transactions placed with affiliates of TAM or with the sub-advisers for the period ended June 30, 2013.

NOTE 4. INVESTMENT TRANSACTIONS

The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the period ended June 30, 2013 were as follows:

 

     Purchases of securities:     Proceeds from maturities and
sales of securities:		  
Portfolio   Long-term     U.S. Government     Long-term     U.S. Government  

Money Market

   $ —      $ —      $ —      $ —   

High Quality Bond

       76,071,796        138,124,468        61,335,813        111,286,067   

Inflation-Protected Securities

     11,207,577        183,041,202        14,644,408        153,629,894   

Core Bond

     403,050,980          893,049,697        455,518,299          851,541,879   

High Yield Bond

     258,547,944        —        257,032,854        —   

Balanced

     44,433,207        27,325,365        50,325,417        29,175,891   

Large Value

     433,175,279        —        480,941,948        —   

Large Core

     147,985,294        —        162,291,728        —   

Large Growth

     211,574,831        —        262,426,000        —   

Mid Value

     225,504,497        —        216,039,263        —   

Mid Growth

     322,966,431        —        333,765,928        —   

Small Value

     7,517,723        —        11,786,686        —   

Small Core

     351,059,933        —        383,800,451        —   

Small Growth

     22,278,723        —        24,736,499        —   

International Equity

     114,337,858        —        151,858,734        —   

NOTE 5. DERIVATIVE FINANCIAL INSTRUMENTS

Inflation-Protected Securities:

The Portfolio is subject to various risks in the normal course of pursuing its investment objective. The volume of purchased option/swaption contracts, written option/swaption contracts and forward foreign currency contracts held throughout the period averaged seven, 15 and 14 contracts, respectively, with an overall increase from nine, 10 and 12 contracts, respectively, to 11, 20 and 17 contracts, respectively. The volume of swap contracts held throughout the period averaged eight contracts with an overall decrease from 12 to seven. The volume of futures contracts held throughout the period stayed constant at seven contracts. The tables below highlight the types of risks and the derivative instruments used to mitigate the risks:

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    107

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

Fair Values of Derivative Instruments in the Statements of Assets and Liabilities as of June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Total  

Asset Derivatives

                        

Purchased options and swaptions, at value (A) (B)

   $ 1,923,596      $ 85,955      $ 2,009,551   

Unrealized appreciation on futures contracts (B) (C)

     574,562        —        574,562   

Unrealized appreciation on swap agreements (B)

     455,609        —        455,609   

Unrealized appreciation on forward foreign currency contracts

     —        322,958        322,958   

Total

   $ 2,953,767      $ 408,913      $ 3,362,680   

Liability Derivatives

                        

Written options and swaptions, at value (B)

   $   (1,333,805 )    $ (72,628 )    $   (1,406,433 ) 

Unrealized depreciation on futures contracts (B) (C)

     (504,162 )      —        (504,162 ) 

Unrealized depreciation on swap agreements (B)

     (265,873 )      —        (265,873 ) 

Unrealized depreciation on forward foreign currency contracts

     —          (315,610 )      (315,610 ) 

Total

   $ (2,103,840 )    $ (388,238 )    $ (2,492,078 ) 
  (A) Included within Investment securities, at value.
  (B) May include exchange-traded derivatives which are not subject to a master netting arrangement, or another similar arrangement.
  (C) Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

Gross Amounts Not Offset in the Statements of Assets and Liabilities

Financial Assets and Derivative Assets, and Collateral Received as of June 30, 2013:

 

Counterparty  

Gross Amounts of

Assets Presented in
Statements of Assets

and Liabilities (D)

     Value Eligible for
Offset		     Collateral
Received (E)		     Net Amount
(not less than 0)		  

Barclays Bank PLC

   $ 14,544      $ (14,544 )    $ —      $ —   

Citibank, N.A.

     1,841        (1,841 )      —        —   

Deutsche Bank AG

     2,158,295        (1,050,162 )      (1,000,000 )      108,133   

Other Derivatives (F)

     1,054,020        —        —        1,054,020   

Goldman Sachs Bank

     6,202        (6,202 )      —        —   

UBS AG

     127,778        (98,296 )      —        29,482   

Total

   $               3,362,680      $         (1,171,045 )    $ (1,000,000 )    $           1,191,635   

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    108

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

Financial Liabilities and Derivative Liabilities, and Collateral Pledged as of June 30, 2013:

 

Counterparty   Gross Amounts of
Liabilities Presented in
Statements of Assets
and Liabilities (D)		     Value Eligible for
Offset		     Collateral
Pledged (E)		     Net Amount
(not less than 0)		  

Barclays Bank PLC

   $ 178,814      $ (14,544 )    $             —      $ 164,270   

Citibank, N.A.

     296,500        (1,841 )      —        294,659   

Deutsche Bank AG

     1,050,162        (1,050,162 )      —        —   

Other Derivatives (F)

     848,226        —        —        848,226   

Goldman Sachs Bank

     20,080        (6,202 )      —        13,878   

UBS AG

     98,296        (98,296 )      —        —   

Total

   $                   2,492,078      $           (1,171,045 )    $ —      $           1,321,033   
  (D) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.
  (E) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (F) Other Derivatives are not subject to a master netting arrangement or another similar arrangement.

Effect of Derivative Instruments in the Statements of Operations for the period ended June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Total  

Net Realized Gain (Loss) on derivatives recognized in income

                        

Net realized gain (loss) on futures contracts

   $ 619,896      $ —      $ 619,896   

Net realized gain (loss) on purchased option and swaption contracts (G)

     83,555        (58,829 )      24,726   

Net realized gain (loss) on written option and swaption contracts

     (121,553 )      66,524        (55,029 ) 

Net realized gain (loss) on swap agreements

     221,855        —        221,855   

Net realized gain (loss) on forward foreign currency contracts (H)

     —        899,729        899,729   

Net Change in Unrealized Appreciation (Depreciation) on derivatives recognized in income

                        

Net change in unrealized appreciation (depreciation) on purchased options and swaptions (I)

     700,551        81,049        781,600   

Net change in unrealized appreciation (depreciation) on futures contracts

     (167,896 )      —        (167,896 ) 

Net change in unrealized appreciation (depreciation) on written option and swaption contracts

       (369,061 )      116,497        (252,564 ) 

Net change in unrealized appreciation (depreciation) on swap agreements

     (158,213 )      —        (158,213 ) 

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (J)

     —        78,990        78,990   

Total

   $ 809,134      $   1,183,960      $   1,993,094   
  (G) Included within Net realized gain (loss) on transactions from Investment securities.
  (H) Included within Net realized gain (loss) on transactions from Foreign currency transactions.
  (I) Included within Net change in unrealized appreciation (depreciation) on Investment securities.
  (J) Included within Net change in unrealized appreciation (depreciation) on Translation of assets and liabilities denominated in foreign currencies.

For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Portfolio may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Portfolio fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.

Core Bond:

The Portfolio is subject to various risks in the normal course of pursuing its investment objective. The volume of swap contracts and forward foreign currency contracts held throughout the period averaged 18 and seven contracts, respectively, with an overall increase from 10

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    109

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

and four contracts at the beginning of the period, respectively, to 22 and six contracts, respectively, at the end of the period. The volume of purchased options/swaptions, futures, and written options/swaptions held throughout the period averaged three, nine, and two contracts, respectively, with an overall decrease from three, 11, and one contracts, respectively, to zero, six, and zero contracts, respectively. The tables below highlight the types of risks associated with the Portfolio and how the aforementioned derivative instruments are used to mitigate such risks:

Fair Values of Derivative Instruments in the Statements of Assets and Liabilities as of June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Credit
contracts		     Total  

Asset Derivatives

                                

Premium paid on swap agreements (A) (B)

   $ 13      $ —      $ 612,300      $ 612,313   

Unrealized appreciation on futures contracts (A) (C)

     2,306,850        —        —        2,306,850   

Unrealized appreciation on swap agreements (A)

     8,596,377        —        2,639,819          11,236,196   

Unrealized appreciation on forward foreign currency contracts

     —        672,118        —        672,118   

Total

   $ 10,903,240      $ 672,118      $ 3,252,119      $ 14,822,477   

Liability Derivatives

                                

Premium received on swap agreements (A) (B)

   $ —      $ —      $   (1,643,619 )    $ (1,643,619 ) 

Unrealized depreciation on futures contracts (A) (C)

       (4,668,474 )      —        —        (4,668,474 )  

Unrealized depreciation on swap agreements (A)

     (291,644 )      —        (405,011 )      (696,655 ) 

Unrealized depreciation on forward foreign currency contracts

     —        (22,304 )      —        (22,304 ) 

Total

   $ (4,960,118 )    $   (22,304 )    $ (2,048,630 )    $ (7,031,052 ) 
  (A) May include exchange-traded derivatives which are not subject to a master netting arrangement, or another similar arrangement.
  (B)  Premiums on centrally cleared swap agreements as reported in the Schedule of Investments. Only cumulative variation margin is reported within the Statements of Assets and Liabilities.
  (C) Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

Gross Amounts Not Offset in the Statements of Assets and Liabilities

Financial Assets and Derivative Assets, and Collateral Received as of June 30, 2013:

 

Counterparty   Gross Amounts of
Assets Presented in
Statements of Assets
and Liabilities (D)		     Value Eligible for
Offset		     Collateral
Received (E)		     Net Amount
(not less than 0)		  

Barclays Bank PLC

   $ 1,439,036      $ —      $ —      $ 1,439,036   

Bank of America, N.A.

     2,833,013        —        (2,833,013 )      —   

Citibank, N.A.

     1,973,047        (981,380 )      (991,667 )      —   

Deutsche Bank AG

     5,079,792        (1,284,575 )      (3,795,217 )      —   

Other Derivatives (F)

     2,306,863        —        —        2,306,863   

Goldman Sachs Bank

     855,829        —        (600,000 )      255,829   

Morgan Stanley Capital Services

     339,897        (70,835 )      (269,062 )      —   

Total

   $             14,827,477      $         (2,336,790 )    $ (8,488,959 )    $         4,001,728   

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    110

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

Financial Liabilities and Derivative Liabilities, and Collateral Pledged as of June 30, 2013:

 

Counterparty   Gross Amounts of
Liabilities Presented in
Statements of Assets
and Liabilities (D)		     Value Eligible for
Offset		     Collateral
Pledged (E)		     Net Amount
(not less than 0)		  

Citibank, N.A.

   $ 981,380      $ (981,380 )    $             —      $ —   

Deutsche Bank AG

     1,284,575        (1,284,575 )      —        —   

Other Derivatives (F)

     4,694,262        —        —        4,694,262   

Morgan Stanley Capital Services

     70,835        (70,835 )      —        —   

Total

   $                   7,031,052      $           (2,336,790 )    $ —      $         4,694,262   
  (D) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.
  (E) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (F) Other Derivatives are not subject to a master netting arrangement or another similar arrangement.

Effect of Derivative Instruments in the Statements of Operations for the period ended June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Credit
contracts		     Total  

Net Realized Gain (Loss) on derivatives recognized in income

                                

Net realized gain (loss) on purchased options and swaption contracts (G)

   $ 573,793      $ —      $ —      $ 573,793   

Net realized gain (loss) on futures contracts

       (1,663,679 )      —        —        (1,663,679 ) 

Net realized gain (loss) on written options and swaption contracts

     (991,015 )      —        —        (991,015 ) 

Net realized gain (loss) on swap agreements

     (331,985 )      —        447,144        115,159   

Net realized gain (loss) on forward foreign currency contracts (H)

     —        79,604        —        79,604   

Net Change in Unrealized Appreciation (Depreciation) on derivatives recognized in income

                                

Net change in unrealized appreciation (depreciation) on purchased options and swaption contracts (I)

     (16,667 )      —        —        (16,667 ) 

Net change in unrealized appreciation (depreciation) on futures contracts

     (3,427,831 )      —        —          (3,427,831 ) 

Net change in unrealized appreciation (depreciation) on written options and swaption contracts

     (33,147 )      —        —        (33,147 ) 

Net change in unrealized appreciation (depreciation) on swap agreements

     9,113,249        —        312,290        9,425,539   

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (J)

     —          746,482        —        746,482   

Total

   $ 3,222,718      $ 826,086      $   759,434      $ 4,808,238   
  (G) Included within Net realized gain (loss) on transactions from Investment securities.
  (H) Included within Net realized gain (loss) on transactions from Foreign currency transactions.
  (I) Included within Net change in unrealized appreciation (depreciation) on Investment securities.
  (J) Included within Net change in unrealized appreciation (depreciation) on Translation of assets and liabilities denominated in foreign currencies.

For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Portfolio may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Portfolio fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.

Balanced:

The Portfolio is subject to various risks in the normal course of pursuing its investment objective. The volume of forward foreign currency contracts and purchased options/swaptions contracts held throughout the period averaged four and two contracts, respectively, with overall an increase from four to five contracts and an overall decrease from one contract to zero contracts, respectively. The volume of

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    111

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

written options/swaptions contracts held during the period averaged two contracts, beginning and ending the period with zero contracts. The tables below highlight the types of risks associated with the Portfolio and how the aforementioned derivative instruments are used to mitigate such risks:

Fair Values of Derivative Instruments in the Statements of Assets and Liabilities as of June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		    

Foreign

exchange

contracts

    

Equity

contracts

     Total  

Asset Derivatives

                                

Unrealized appreciation on futures contracts (A) (B)

   $ 74,554      $ —      $ —      $ 74,554   

Unrealized appreciation on forward foreign currency contracts

     —        18,442        —        18,442   

Total

   $ 74,554      $   18,442      $ —      $ 92,996   

Liability Derivatives

                                

Unrealized depreciation on futures contracts (A) (B)

   $ (96,686 )    $ —      $ (2,322 )    $       (99,008 ) 

Unrealized depreciation on forward foreign currency contracts

     —        (722 )      —        (722 ) 

Total

   $       (96,686 )    $   (722 )    $   (2,322 )    $ (99,730 ) 
  (A) May include exchange-traded derivatives which are not subject to a master netting arrangement, or another similar arrangement.
  (B) Includes cumulative appreciation (depreciation) of futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

Gross Amounts Not Offset in the Statements of Assets and Liabilities

Financial Assets and Derivative Assets, and Collateral Received as of June 30, 2013:

 

Counterparty   Gross Amounts of
Assets Presented in
Statements of Assets
and Liabilities (C)		     Value Eligible for
Offset		     Collateral
Received (D)		     Net Amount
(not less than 0)		  

Bank of America, N.A.

   $ 12,289      $             —      $             —      $ 12,289   

Other Derivatives (E)

     80,707        —        —        80,707   

Total

   $                     92,996      $                         —      $             —      $               92,996   

Financial Liabilities and Derivative Liabilities, and Collateral Pledged as of June 30, 2013:

 

Counterparty   Gross Amounts of
Liabilities Presented in
Statements of Assets
and Liabilities (C)		     Value Eligible for
Offset		     Collateral
Pledged (D)		     Net Amount
(not less than 0)		  

Citibank, N.A.

   $ 722      $             —      $             —      $ 722   

Other Derivatives (E)

     99,008        —        —        99,008   

Total

   $                           99,730      $                         —      $   —      $               99,730   
  (C) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.
  (D) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.
  (E) Other Derivatives are not subject to a master netting arrangement or another similar arrangement.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    112

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

Effect of Derivative Instruments in the Statements of Operations for the period ended June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Equity
contracts		     Total  

Net Realized Gain (Loss) on derivatives recognized in income

                                

Net realized gain (loss) on purchased options and swaption contracts (F)

   $ 21,447      $ —      $ —      $ 21,447   

Net realized gain (loss) on futures contracts

     (42,900 )      —        116,328        73,428   

Net realized gain (loss) on written options and swaption contracts

     (23,493 )      —        —        (23,493 ) 

Net realized gain (loss) on forward foreign currency contracts (G)

     —        2,459        —        2,459   

Net Change in Unrealized Appreciation (Depreciation) on derivatives recognized in income

                                

Net change in unrealized appreciation (depreciation) on purchased options and swaption contracts (H)

     (1,193 )      —        —        (1,193 ) 

Net change in unrealized appreciation (depreciation) on futures contracts

     (18,233 )      —        (4,644 )        (22,877 ) 

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (I)

     —        24,220        —        24,220   

Total

   $     (64,372 )    $   26,679      $   111,684      $ 73,791   
  (F) Included within Net realized gain (loss) on transactions from Investment securities.
  (G) Included within Net realized gain (loss) on transactions from Foreign currency transactions.
  (H) Included within Net change in unrealized appreciation (depreciation) on Investment securities.
  (I) Included within Net change in unrealized appreciation (depreciation) on Translation of assets and liabilities denominated in foreign currencies.

For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Portfolio may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Portfolio fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.

Small Core:

The Portfolio is subject to various risks in the normal course of pursuing its investment objective. The volume of future contracts held throughout the period decreased from one contract at the beginning of the period to zero contracts at the end of the period. The tables below highlight the types of risks associated with the Portfolio and how the aforementioned derivative instruments are used to mitigate such risks:

Effect of Derivative Instruments in the Statements of Operations for the period ended June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Equity
contracts		     Total  

Net Realized Gain (Loss) on derivatives recognized in income

                

Net realized gain (loss) on futures contracts

   $ 196,697      $ 196,697   

Net Change in Unrealized Appreciation (Depreciation) on derivatives recognized in income

                

Net change in unrealized appreciation (depreciation) on futures contracts

     (31,263 )      (31,263 ) 

Total

   $ 165,434      $ 165,434   

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    113

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

International Equity:

The Portfolio is subject to various risks in the normal course of pursuing its investment objective. The volume of forward foreign currency contracts held throughout the period averaged seven contracts, with an overall increase from one contract to 12 contracts. The tables below highlight the types of risks associated with the Portfolio and how the aforementioned derivative instruments are used to mitigate such risks:

Fair Values of Derivative Instruments in the Statements of Assets and Liabilities as of June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Foreign
exchange
contracts		  

Asset Derivatives

        

Unrealized appreciation on forward foreign currency contracts

   $ 3,303,879   

Liability Derivatives

        

Unrealized depreciation on forward foreign currency contracts

   $ (873,925 ) 

Gross Amounts Not Offset in the Statements of Assets and Liabilities

Financial Assets and Derivative Assets, and Collateral Received as of June 30, 2013:

 

Counterparty   Gross Amounts of
Assets Presented in
Statements of Assets
and Liabilities (A)		     Value Eligible for
Offset		     Collateral
Received (B)		     Net Amount
(not less than 0)		  

State Street Bank and Trust

   $               3,303,879      $             (873,925 )    $             —      $         2,429,954   

Financial Liabilities and Derivative Liabilities, and Collateral Pledged as of June 30, 2013:

 

Counterparty   Gross Amounts of
Liabilities Presented in
Statements of Assets
and Liabilities (A)		     Value Eligible for
Offset		     Collateral
Pledged (B)		     Net Amount
(not less than 0)		  

State Street Bank and Trust

   $                       873,925      $             (873,925 )    $             —      $                     —   
  (A) Absent an event of default or early termination, OTC derivative assets and liabilities are presented gross and not offset in the Statements of Assets and Liabilities.
  (B) In some instances, the actual collateral received and/or pledged may be more than the amount shown here due to overcollateralization.

Effect of Derivative Instruments in the Statements of Operations for the period ended June 30, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Foreign
exchange
contracts		  

Net Realized Gain (Loss) on derivatives recognized in income

        

Net realized gain (loss) on forward foreign currency contracts (C)

   $ (167,042 ) 

Net Change in Unrealized Appreciation (Depreciation) on derivatives recognized in income

        

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (D)

     2,797,855   

Total

   $   2,630,813   
  (C) Included within Net realized gain (loss) on transactions from Foreign currency transactions.
  (D) Included within Net change in unrealized appreciation (depreciation) on Translation of assets and liabilities denominated in foreign currencies.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    114

 

NOTES TO FINANCIAL STATEMENTS (continued)

At June 30, 2013

(unaudited)

 

NOTE 5. (continued)

 

For non-exchange traded derivatives (swaps and forward foreign currency contracts), under standard derivatives agreements, the Portfolio may be required to post collateral on derivatives if the Fund is in a net liability position with the counterparty exceeding certain amounts. Additionally, counterparties may immediately terminate derivatives contracts if the Portfolio fails to maintain sufficient asset coverage for its contracts or its net assets decline by stated percentages.

NOTE 6. FEDERAL INCOME TAX MATTERS

The Series Portfolio has received rulings from the Internal Revenue Service that each Portfolio will be treated as a separate partnership for federal income tax purposes. Income taxes are not provided for by the Portfolios because the taxable income/(loss) of each Portfolio is included in the income tax returns of the investors. It is intended that the Portfolios’ assets will be managed so an investor in the Portfolio can satisfy the requirements of Subchapter M of the Internal Revenue Code. The Portfolios recognize the tax benefits of uncertain tax positions only where the position is “more likely than not” to be sustained assuming examination by tax authorities. Management has evaluated the Portfolios’ tax provisions taken or expected to be taken for all open tax years 2009—2012, and has concluded that no provision for income tax is required in the Portfolios’ financial statements. For tax purposes, each component of the Portfolios’ net assets are reported at the investor level; therefore, the Statements of Assets and Liabilities do not present the components of net assets.

Each investor in the Portfolio will be subject to taxation on its share of the Portfolio’s ordinary income and capital gains; which may differ from GAAP.

NOTE 7. SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date of issuance of the financial statements, and determined that no other material events or transactions would require recognition or disclosure in the Portfolios’ financial statements.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    115

 

TRANSAMERICA PARTNERS PORTFOLIOS

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL

 

 

At a meeting of the Board of Trustees of Transamerica Partners Portfolios (the “Board”) held on June 12-13, 2013, the Board reviewed and considered the renewal of the investment advisory agreements (each an “Investment Advisory Agreement” and collectively the “Investment Advisory Agreements”) between each of the following funds (each a “Portfolio” and collectively the “Portfolios”) and Transamerica Asset Management, Inc. (“TAM”):

 

Transamerica Partners Balanced Portfolio

    Transamerica Partners Large Value Portfolio

Transamerica Partners Core Bond Portfolio

    Transamerica Partners Mid Growth Portfolio

Transamerica Partners High Quality Bond Portfolio

    Transamerica Partners Mid Value Portfolio

Transamerica Partners High Yield Bond Portfolio

    Transamerica Partners Money Market Portfolio

Transamerica Partners Inflation-Protected Securities Portfolio

    Transamerica Partners Small Core Portfolio

Transamerica Partners International Equity Portfolio

    Transamerica Partners Small Growth Portfolio

Transamerica Partners Large Core Portfolio

    Transamerica Partners Small Value Portfolio

Transamerica Partners Large Growth Portfolio

     

For the Portfolios listed in the left-hand column below, the Board also reviewed and considered the renewal of the investment sub-advisory agreements (each a “Sub-Advisory Agreement,” collectively the “Sub-Advisory Agreements” and, together with the Investment Advisory Agreements, the “Agreements”) between TAM and the corresponding sub-advisers listed in the right-hand column below (each a “Sub-Adviser” and collectively the “Sub-Advisers”).

 

Portfolio    Sub-Adviser(s)

Transamerica Partners Balanced Portfolio

   

BlackRock Financial Management, Inc.

J.P. Morgan Investment Management Inc.

Transamerica Partners Core Bond Portfolio

    BlackRock Financial Management, Inc.

Transamerica Partners High Quality Bond Portfolio

    Merganser Capital Management, Inc.

Transamerica Partners High Yield Bond Portfolio

    Eaton Vance Management

Transamerica Partners Inflation-Protected Securities Portfolio

    BlackRock Financial Management, Inc.

Transamerica Partners International Equity Portfolio

    Thornburg Investment Management, Inc.

Transamerica Partners Large Core Portfolio

    AJO, LP

Transamerica Partners Large Growth Portfolio

   

Jennison Associates LLC

Wellington Management Company, LLP

Transamerica Partners Large Value Portfolio

    AJO, LP

Transamerica Partners Mid Value Portfolio

   

Cramer, Rosenthal, McGlynn, LLC

J.P. Morgan Investment Management Inc.

Transamerica Partners Small Value Portfolio

    Wellington Management Company, LLP

Following their review and consideration, the Trustees determined that the terms of each Investment Advisory Agreement and Sub-Advisory Agreement are reasonable and that the renewal of each agreement is in the best interests of the applicable Portfolio and its shareholders. The Board, including the independent members of the Board (the “Independent Trustees”), unanimously approved the renewal of each of the Agreements through June 30, 2014. In reaching their decision, the Trustees requested and received from TAM and each Sub-Adviser such information as they deemed reasonably necessary to evaluate the Agreements, including, to the extent applicable, information about fees and performance of comparable funds and/or accounts managed by each Sub-Adviser. The Trustees also considered information they had previously received from TAM and each Sub-Adviser as part of their regular oversight of each Portfolio, as well as comparative fee, expense and performance information prepared by Lipper Inc. (“Lipper”), an independent provider of mutual fund performance information, and fee, expense and profitability information prepared by TAM. In conducting their review, the Trustees noted that the relevant analysis of investment performance, fees and expenses for each Portfolio was better made at the level of the funds that invest in the applicable Portfolio (i.e., the Transamerica Partners Fund and Transamerica Partners Institutional Fund), since shareholders could not invest directly in the Portfolio and that is the manner in which Lipper provided its comparative information.

In their deliberations, the Independent Trustees had the opportunity to meet privately without representatives of TAM or any Sub-Adviser present and were represented throughout the process by independent legal counsel. In considering the proposed continuation of each of the Agreements, the Trustees evaluated a number of considerations that they believed, in light of the legal advice furnished

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    116

 

TRANSAMERICA PARTNERS PORTFOLIOS

INVESTMENT ADVISORY AND SUB-ADVISORY AGREEMENTS — CONTRACT RENEWAL (continued)

 

 

to them by independent legal counsel and/or their own business judgment, to be relevant. They based their decisions on the considerations discussed below, among others, although they did not identify any particular consideration or information that was controlling of their decisions, and each Trustee may have attributed different weights to the various factors.

Nature, Extent and Quality of the Services Provided

The Board considered the nature, extent and quality of the services provided by TAM and each Sub-Adviser to the applicable Portfolio in the past and the services anticipated to be provided in the future. The Board also considered the investment approach for each Portfolio; the experience, capability and integrity of TAM’s senior management; the financial resources of TAM and each Sub-Adviser; TAM’s management oversight process; and the professional qualifications of the portfolio management team of each Sub-Adviser. The Trustees noted that they receive, on a quarterly basis, an execution analysis from Capital Institutional Services, Inc. (CAPIS), an independent provider of trade analyses, for certain of the Sub-Advisers and a comparison of trading results against a peer universe of managers.

The Board also considered the continuous and regular investment advisory and other services provided by TAM for the portion of the management fee it retains after payment of the sub-advisory fee(s) for each Portfolio. The Board noted that the investment advisory services include the design and development of the Portfolios and each Portfolio’s investment strategy, TAM’s selection, ongoing oversight and monitoring of each Portfolio’s Sub-Adviser, TAM’s daily supervision of each Portfolio’s investments and recommendations to change a Portfolio’s investment strategy or sub-adviser where it believes appropriate or advisable. The Board also noted that TAM provides services to all Transamerica mutual funds, including the Portfolios, in the form of oversight of the services provided by the funds’ administrator, custodian and transfer agent and supervision of the performance of recordkeeping, shareholder relations, regulatory reporting and compliance functions of the funds.

Based on these considerations, the Board determined that TAM and each Sub-Adviser can provide investment and related services that are appropriate in scope and extent in light of the applicable Portfolio’s operations, the competitive landscape of the investment company business and investor needs.

Investment Performance

The Board considered the short- and longer-term performance of each Portfolio in light of its investment objective, policies and strategies, including relative performance against (i) a peer universe of comparable mutual funds, as prepared by Lipper, and (ii) the Portfolio’s benchmark(s), in each case for various trailing periods ended December 31, 2012.

Transamerica Partners Balanced Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 3- and 5-year periods, in line with the median for the past 1-year period and below the median for the past 10-year period and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 3- and 5-year periods, in line with the median for the past 1-year period and below the median for the past 10-year period. The Board also noted that the performance of the Transamerica Partners Fund was above its primary benchmark for the past 1-, 3- and 10-year periods and below its primary benchmark for the past 5-year period and that the performance of the Transamerica Partners Institutional Fund was above its primary benchmark for the past 1-, 3- and 10-year periods and below its primary benchmark for the past 5-year period. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Portfolio. The Board noted that the performance for longer periods was attributable to previous sub-advisers of the Portfolio.

Transamerica Partners Core Bond Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 1-year period and in line with the median for the past 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 1-, 3- and 10-year periods and in line with the median for the past 5-year period. The Board also noted that the performance of the Transamerica Partners Fund was above its benchmark for the past 1-, 3- and 5- year periods and below its benchmark for the past 10-year period and that the performance of the Transamerica Partners Institutional Fund was above its benchmark for the past 1-, 3-, 5- and 10-year periods. The Trustees noted the recent changes to the portfolio management team and agreed to continue to monitor the performance of the Portfolio.

Transamerica Partners High Quality Bond Portfolio. The Board noted that the performance of the Transamerica Partners Fund was in line with the median for its peer universe for the past 5-year period and below the median for the past 1-, 3- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 5- and 10-year periods, in line with the median for the past 3-year period and below the median for the past 1-year period. The Board also noted

 

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that the performance of the Transamerica Partners Fund was above its benchmark for the past 1-, 3- and 5-year periods and below its benchmark for the past 10-year period and that the performance of the Transamerica Partners Institutional Fund was above its benchmark for the past 1-, 3-, 5- and 10-year periods.

Transamerica Partners High Yield Bond Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 3-, 5- and 10-year periods and in line with the median for the past 1-year period and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 3-, 5- and 10-year periods and in line with the median for the past 1-year period. The Board also noted that the performance of the Transamerica Partners Fund was below its benchmark for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was below its benchmark for the past 1-, 3-, 5- and 10-year periods.

Transamerica Partners Inflation-Protected Securities Portfolio. The Board noted that the performance of the Transamerica Partners Fund was in line with the median for its peer universe for the past 1-year period and below the median for the past 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 1-year period, in line with the median for the past 3- and 5-year periods and below the median for the past 10-year period. The Board also noted that the performance of the Transamerica Partners Fund was below its benchmark for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was below its benchmark for the past 1-, 3-, 5- and 10-year periods.

Transamerica Partners International Equity Portfolio. The Board noted that the performance of the Transamerica Partners Fund was in line with the median for its peer universe for the past 3-year period and below the median for the past 1-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was in line with the median for its peer universe for the past 3-year period and below the median for the past 1-, 5- and 10-year periods. The Board also noted that the performance of the Transamerica Partners Fund was above its benchmark for the past 3-year period and below its benchmark for the past 1-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above its benchmark for the past 3-year period and below its benchmark for the past 1-, 5- and 10-year periods. The Board noted that the performance for longer periods was attributable to previous sub-advisers of the Portfolio. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Portfolio.

Transamerica Partners Large Core Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 1- and 3-year periods, in line with the median for the past 5-year period and below the median for the past 10-year period and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 1- and 3-year periods, in line with the median for the past 5-year period and below the median for the past 10-year period. The Board also noted that the performance of the Transamerica Partners Fund was above its primary benchmark for the past 1-year period and below its primary benchmark for the past 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above its primary benchmark for the past 1-year period and below its primary benchmark for the past 3-, 5- and 10-year periods. The Board noted that the performance for longer periods was attributable to previous sub-advisers of the Portfolio.

Transamerica Partners Large Growth Portfolio. The Board noted that the performance of the Transamerica Partners Fund was in line with the median for its peer universe for the past 1- and 3-year periods and below the median for the past 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was in line with the median for its peer universe for the past 1-, 3- and 5-year periods and below the median for the past 10-year period. The Board also noted that the performance of the Transamerica Partners Fund was below its primary benchmark for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was below its primary benchmark for the past 1-, 3-, 5- and 10-year periods. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Portfolio. The Board also noted that the performance for longer periods was attributable to previous sub-advisers of the Portfolio.

Transamerica Partners Large Value Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 1- and 3-year periods and below the median for the past 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 1- and 3-year periods and below the median for the past 5- and 10-year periods. The Board also noted that the performance of the Transamerica Partners Fund was below its primary benchmark for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above its primary benchmark for the past 3-year period and below its primary benchmark for the past 1-, 5- and 10-year periods. The Board also noted that the performance for longer periods was attributable to previous sub-advisers of the Portfolio.

 

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Transamerica Partners Mid Growth Portfolio. The Board noted that the performance of the Transamerica Partners Fund was in line with the median for its peer universe for the past 1-year period and below the median for the past 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was in line with the median for its peer universe for the past 1- and 3-year periods and below the median for the past 5- and 10-year periods. The Board also noted that the performance of the Transamerica Partners Fund was below its benchmark for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was below its benchmark for the past 1-, 3-, 5- and 10-year periods. The Board also noted that it had recently approved a sub-adviser change for the Portfolio.

Transamerica Partners Mid Value Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 1-, 3-, 5- and 10-year periods. The Board also noted that the performance of the Transamerica Partners Fund was above its primary benchmark for the past 1-year period and below its primary benchmark for the past 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above its primary benchmark for the past 1-year period and below its primary benchmark for the past 3-, 5- and 10-year periods. The Trustees discussed the reasons for the underperformance with TAM and agreed to continue to monitor the performance of the Portfolio.

Transamerica Partners Money Market Portfolio. The Board noted that the performance of the Transamerica Partners Fund was below the median for its peer universe for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was below the median for its peer universe for the past 1-, 3-, 5- and 10-year periods. The Board also noted that the performance of the Transamerica Partners Fund was below its benchmark for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above its benchmark for the past 5-year period and below its benchmark for the past 1-, 3- and 10-year periods. The Board noted TAM’s observations that the yields of money market funds have been below average due to a low interest rate environment and that relative performance in the tightly-constrained money market universe is largely a function of expenses. The Board also noted that the performance was attributable to a previous sub-adviser of the Portfolio.

Transamerica Partners Small Core Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 3-year period, in line with the median for the past 1- and 5-year periods and below the median for the past 10-year period and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 3-year period, in line with the median for the past 1- and 5-year periods and below the median for the past 10-year period. The Board also noted that the performance of the Transamerica Partners Fund was above its primary benchmark for the past 3-year period and below its primary benchmark for the past 1-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above its primary benchmark for the past 3-year period and below its primary benchmark for the past 1-, 5- and 10-year periods. The Board also noted that it had recently approved a sub-adviser change for the Portfolio.

Transamerica Partners Small Growth Portfolio. The Board noted that the performance of the Transamerica Partners Fund was below the median for its peer universe for the past 1-, 3-, 5- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was below the median for its peer universe for the past 1-, 3- and 5-year periods. The Board also noted that the performance of the Transamerica Partners Fund was below its benchmark for the past 1-, 3- and 5-year periods and that the performance of the Transamerica Partners Institutional Fund was below its benchmark for the past 1-, 3- and 5-year periods. The Board also noted that the performance was attributable to a previous sub-adviser of the Portfolio.

Transamerica Partners Small Value Portfolio. The Board noted that the performance of the Transamerica Partners Fund was above the median for its peer universe for the past 3- and 5-year periods, in line with the median for the past 1-year period and below the median for the past 10-year period and that the performance of the Transamerica Partners Institutional Fund was above the median for its peer universe for the past 1-, 3- and 5-year periods. The Board also noted that the performance of the Transamerica Partners Fund was above its benchmark for the past 3- and 5-year periods and below its benchmark for the past 1- and 10-year periods and that the performance of the Transamerica Partners Institutional Fund was above its benchmark for the past 3- and 5-year periods and below its benchmark for the past 1-year period.

On the basis of this information and the Board’s assessment of the nature, extent and quality of the services to be provided or procured by TAM and the Sub-Advisers, the Board concluded that TAM and each Sub-Adviser are capable of generating a level of investment performance that is appropriate in light of the applicable Portfolio’s investment objectives, policies and strategies and that is competitive with other investment companies.

 

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Management and Sub-Advisory Fees and Total Expense Ratios

The Board considered the management fee and total expense ratio of each Portfolio, including information provided by Lipper comparing the management fee and total expense ratio of each Transamerica Partners Fund and Transamerica Partners Institutional Fund to the management fees and total expense ratios of other investment companies in both a peer group and broader peer universe compiled by Lipper. The Board also considered the fees charged by the Sub-Advisers for sub-advisory services, the portion of a Portfolio’s management fee retained by TAM following payment of the sub-advisory fee(s) and how the portion of the contractual management fee retained by TAM at a specified asset level compared to the portions retained by other investment advisers managing mutual funds with similar investment strategies as calculated by TAM.

Transamerica Partners Balanced Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the median for its peer group and in line with the median for its peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Core Bond Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners High Quality Bond Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was in line with the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners High Yield Bond Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Inflation-Protected Securities Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners International Equity Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group

 

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and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were in line with the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Large Core Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was in line with the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Large Growth Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Large Value Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was below the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were in line with the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Mid Growth Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Mid Value Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was in line with the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the median for its peer group and in line with the median for its peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Money Market Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was in line with the median for its peer group and above the median for its peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were below the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Small Core Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management

 

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fee was below the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Small Growth Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was in line with the medians for its peer group and peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

Transamerica Partners Small Value Portfolio. The Board noted that the Transamerica Partners Fund’s contractual management fee was above the medians for its peer group and peer universe and the Transamerica Partners Institutional Fund’s contractual management fee was below the median for its peer group and in line with the median for its peer universe. The Board also noted that the actual total expenses (i.e., expenses reflecting any waivers and/or reimbursements) of the Transamerica Partners Fund were above the medians for its peer group and peer universe and the actual total expenses of the Transamerica Partners Institutional Fund were below the medians for its peer group and peer universe. The Board also noted that TAM has entered into an expense limitation arrangement with the Transamerica Partners Fund and the Transamerica Partners Institutional Fund, which may result in TAM waiving fees for the benefit of shareholders.

On the basis of these considerations, together with the other information it considered, the Board determined that the management and sub-advisory fees to be received by TAM and the Sub-Advisers under the Investment Advisory Agreements and Sub-Advisory Agreements are reasonable in light of the services provided.

Cost of Services Provided and Level of Profitability

The Board reviewed information provided by TAM about the cost of procuring fund management services, as well as the costs of the provision of administration and other services, to each Portfolio and to Transamerica Partners Portfolios as a whole, as applicable, by TAM and its affiliates. The Board considered the profitability of TAM and its affiliates in providing these services for each Portfolio and Transamerica Partners Portfolios as a whole, as well as the allocation methodology used for calculating profitability.

With respect to the Sub-Advisers, the Board noted that the sub-advisory fees are the product of arm’s-length negotiation between TAM and the applicable Sub-Adviser and are paid by TAM and not the applicable Portfolio. As a result, the Board principally considered the profitability of TAM and its affiliates with respect to each Portfolio.

Based on this information, the Board determined that the profitability of TAM and its affiliates from their relationships with the Portfolios was not excessive.

Economies of Scale

The Board considered economies of scale with respect to the management of each Portfolio, whether the Portfolio had appropriately benefited from any economies of scale and whether there was the potential for realization of any further economies of scale. The Board also considered the existence of economies of scale with respect to management of the Transamerica mutual funds overall and the extent to which the Portfolios benefited from these economies of scale. The Board considered each Portfolio’s management fee schedule and the existence of breakpoints, if any, and also considered the extent to which TAM shared economies of scale with the Portfolios through investments in maintaining and developing its capabilities and services. The Trustees concluded that each Portfolio’s fee structure reflected economies of scale to date and noted that they will have the opportunity to periodically reexamine the appropriateness of the management fees payable to TAM and fees paid to the Sub-Advisers and whether each Portfolio has achieved economies of scale in the future.

Benefits to TAM, its Affiliates, or the Sub-Advisers from their Relationships with the Portfolios

The Board considered any other benefits derived by TAM, its affiliates and the Sub-Advisers from their relationships with the Portfolios. The Board noted that TAM does not realize soft dollar benefits from its relationships with the Portfolios and that TAM believes that any

 

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use of soft dollars by the Sub-Advisers is generally appropriate and in the best interests of the Portfolios. The Board also noted that certain Sub-Advisers are participating in a brokerage program pursuant to which a portion of brokerage commissions paid by each applicable Portfolio is recaptured for the benefit of the Portfolio and its shareholders, thus limiting the amount of soft dollar arrangements the Sub-Adviser may engage in with respect to a Portfolio’s brokerage transactions.

Other Considerations

The Board noted that TAM has made a substantial commitment to the recruitment and retention of high quality personnel and maintains the financial, compliance and operational resources reasonably necessary to manage each Portfolio in a professional manner that is consistent with the best interests of each Portfolio and its shareholders. In this regard, the Board favorably considered the procedures and policies TAM has in place to enforce compliance with applicable laws and regulations and oversee the portfolio management activities of the Sub-Advisers. The Board also noted that TAM has made a significant entrepreneurial commitment to the management and success of the Portfolios.

Conclusion

After consideration of the factors described above, as well as other factors, the Trustees, including the Independent Trustees, concluded that the renewal of each Investment Advisory Agreement and Sub-Advisory Agreement is in the best interests of the applicable Portfolio and its shareholders and voted to approve the renewal of each of the Agreements.

 

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TRANSAMERICA PARTNERS MID GROWTH PORTFOLIO

APPROVAL OF NEW INVESTMENT SUB-ADVISORY AGREEMENT

 

 

At a meeting of the Board of Trustees of Transamerica Partners Portfolios (the “Board” or “Board Members”) held on April 11, 2013, the Board considered the termination of Columbus Circle Investors (“Columbus Circle”) as sub-adviser to Transamerica Partners Mid Growth Portfolio (the “Portfolio”) and the approval of a new investment sub-advisory agreement between Transamerica Asset Management, Inc. (“TAM”) and Quantum Capital Management (“Quantum”) for the Portfolio.

Following their review and consideration, the Board Members determined that the terms of the proposed sub-advisory agreement between TAM and Quantum with respect to the Portfolio (the “Quantum Sub-Advisory Agreement”) are reasonable and that the termination of Columbus Circle as sub-adviser to the Transamerica Partners Mid Growth Portfolio and approval of the Quantum Sub-Advisory Agreement is in the best interests of the Portfolio and its shareholders. The Board, including the independent members of the Board (the “Independent Board Members”), unanimously approved the Quantum Sub-Advisory Agreement for an initial two-year period and authorized TAM to terminate the sub-advisory agreement with Columbus Circle.

To assist the Board Members in their consideration of the Quantum Sub-Advisory Agreement, the Board Members received in advance of the Meeting certain materials and information. In addition, the Independent Board Members consulted with their independent legal counsel, discussing, among other things, the legal standards and certain other considerations relevant to the Board Members’ deliberations.

Among other matters, the Board considered:

 

  •   that TAM advised the Board that the appointment of Quantum is not expected to result in any diminution in the nature, extent and quality of services provided to the Portfolio and its shareholders, including compliance services;

 

  •   that Quantum is a boutique asset management firm and that Quantum has the capabilities, resources and personnel necessary to provide sub-advisory services to the Portfolio based on an assessment of the services;

 

  •   the proposed responsibilities of Quantum for the Portfolio and the services expected to be provided by it;

 

  •   the fact that the sub-advisory fee payable to Quantum would be paid by TAM and not the Portfolio;

 

  •   that the advisory fee rate paid by the Portfolio to TAM would not increase, and that the sub-advisory fee to be paid by TAM to Quantum is reasonable in light of the services to be provided; and

 

  •   that TAM recommended to the Board that Quantum be appointed as sub-adviser to the Portfolio based on its desire to engage an investment sub-adviser with a proven track record.

A discussion followed that included additional consideration of these and other matters.

In their deliberations, the Board Members evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the considerations discussed here, among others, although they did not identify any consideration or particular information that was controlling of their decisions, and each Board Member may have attributed different weights to the various factors.

Nature, Extent and Quality of the Services to be Provided. In evaluating the nature, extent and quality of the services to be provided by Quantum under the Quantum Sub-Advisory Agreement, the Board considered, among other things, information and assurances provided by TAM and Quantum as to the operations, facilities, organization and personnel of Quantum, the anticipated ability of Quantum to perform its duties under the Quantum Sub-Advisory Agreement, and the anticipated changes to the current investment program and other practices of the Portfolio. The Board considered the proposed changes to the Portfolio’s investment objective and principal investment strategies. The Board considered that TAM has advised the Board that the appointment of Quantum is not expected to result in any diminution in the nature, extent and quality of services provided to the Portfolio and its shareholders, including compliance services. The Board considered that Quantum is an experienced and respected asset management firm and that TAM believes that Quantum has the capabilities, resources and personnel necessary to provide sub-advisory services to the Portfolio based on the assessment of the services.

Based on their review of the materials provided and the assurances they had received from TAM, the Board determined that Quantum can provide sub-advisory services that are appropriate in scope and extent in light of the proposed investment program for the Portfolio and that Quantum’s appointment is not expected to adversely affect the nature, extent and quality of services provided to the Portfolio.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    124

 

TRANSAMERICA PARTNERS MID GROWTH PORTFOLIO

APPROVAL OF NEW INVESTMENT SUB-ADVISORY AGREEMENT (continued)

 

 

Investment Performance. The Board considered Quantum’s performance, investment management experience, capabilities and resources. The Board reviewed the performance of the Portfolio as compared to the composite performance of the strategy to be followed by Quantum, which compared favorably to that of the Portfolio, its benchmark and its peer group for the 1-, 3- and 5-year periods (annualized) ended December 31, 2012. The Board Members further noted that TAM believes that the appointment of Quantum could benefit shareholders by offering them the potential for improved performance based on the historical comparisons, but were unable to predict what effect execution of the Quantum Sub-Advisory Agreement would actually have on the future performance of the Portfolio.

On the basis of this information and the Board’s assessment of the nature, extent and quality of the services to be provided by Quantum, the Board concluded that Quantum is capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies.

Sub-Advisory Fee, Cost of Services Provided and Profitability. The Board considered the proposed sub-advisory fee rate under the Quantum Sub-Advisory Agreement, including a reduction in advisory fee rate paid to the sub-advisor from implementation of the Quantum Sub-Advisory Agreement. The Board noted that the advisory fee rate payable by the Portfolio would remain the same and any breakpoints reached by the sub-adviser would not be realized by the Portfolio and its shareholders. The Board also noted that the Portfolio does not pay the sub-advisory fee. On the basis of these considerations, together with the other information it considered, the Board determined that the sub-advisory fee to be received by Quantum under the Quantum Sub-Advisory Agreement is reasonable in light of the services to be provided.

With respect to Quantum’s costs and profitability in providing services to the Portfolio, the Board noted that the sub-advisory fee is the product of arm’s-length negotiation between TAM and Quantum. As a result, the Board did not consider Quantum’s anticipated profitability as material to its decision to approve the Quantum Sub-Advisory Agreement.

Economies of Scale. The Board considered the sub-advisory fee schedule and the existence of breakpoints. The Board considered that TAM also believes that the appointment of Quantum as sub-adviser has the potential to attract additional assets because of Quantum’s asset management capabilities. The Board Members concluded that they would have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM, and fees payable by TAM to Quantum, in the future.

Fall-Out Benefits. The Board considered any other benefits to be derived by Quantum from its relationship with the Portfolio. The Board noted that TAM would not realize soft dollar benefits from its relationship with Quantum, and that Quantum may engage in soft dollar arrangements consistent with applicable law and “best execution” requirements.

Conclusion. After consideration of the factors described above, as well as other factors, the Board Members, including all of the Independent Board Members, concluded that the approval of the Quantum Sub-Advisory Agreement is in the best interests of the Portfolio and its shareholders and voted to approve the Quantum Sub-Advisory Agreement.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    125

 

TRANSAMERICA PARTNERS SMALL CORE PORTFOLIO

APPROVAL OF NEW INVESTMENT SUB-ADVISORY AGREEMENT

 

 

At a meeting of the Boards of Trustees of Transamerica Partners Portfolios (the “Board” or “Board Members”) held on April 11, 2013, the Board considered the termination of Fort Washington Investment Advisers, Inc. (“Fort Washington”), Wellington Management Company, LLP (“Wellington”) and Invesco Advisers, Inc. (“Invesco”) as sub-advisers to Transamerica Partners Small Core Portfolio (the “Portfolio”) and the approval of a new investment sub-advisory agreement between Transamerica Asset Management, Inc. (“TAM”) and Systematic Financial Management, LP (“Systematic”) as for the Portfolio.

Following their review and consideration, the Board Members determined that the terms of the proposed sub-advisory agreement between TAM and Systematic with respect to the Portfolio (the “Systematic Sub-Advisory Agreement”) are reasonable and that the termination of Fort Washington, Wellington and Invesco as sub-advisers to the Transamerica Partners Small Core Portfolio and approval of the Systematic Sub-Advisory Agreement is in the best interests of the Portfolio and its shareholders. The Board, including the independent members of the Board (the “Independent Board Members”), unanimously approved the Systematic Sub-Advisory Agreement for an initial two-year period and authorized TAM to terminate the sub-advisory agreements with Fort Washington, Wellington and Invesco.

To assist the Board Members in their consideration of the Systematic Sub-Advisory Agreement, the Board Members received in advance of the Meeting certain materials and information. In addition, the Independent Board Members consulted with their independent legal counsel, discussing, among other things, the legal standards and certain other considerations relevant to the Board Members’ deliberations.

Among other matters, the Board considered:

 

  •   that TAM advised the Board that the appointment of Systematic is not expected to result in any diminution in the nature, extent and quality of services provided to the Portfolio and its shareholders, including compliance services;

 

  •   that Systematic is an experienced and respected asset management firm and that Systematic has the capabilities, resources and personnel necessary to provide sub-advisory services to the Portfolio based on an assessment of the services that Systematic provides to other Transamerica funds;

 

  •   the proposed responsibilities of Systematic for the Portfolio and the services expected to be provided by it;

 

  •   the fact that the sub-advisory fee payable to Systematic would be paid by TAM and not the Portfolio;

 

  •   that the advisory fee rate paid by the Portfolio to TAM would not increase, and that the sub-advisory fee to be paid by TAM to Systematic is reasonable in light of the services to be provided; and

 

  •   that TAM recommended to the Board that Systematic be appointed as sub-adviser to the Portfolio based on its desire to engage an investment sub-adviser with a proven track record.

A discussion followed that included additional consideration of these and other matters.

In their deliberations, the Board Members evaluated a number of considerations that they believed, in light of the legal advice furnished to them by independent legal counsel and their own business judgment, to be relevant. They based their decisions on the considerations discussed here, among others, although they did not identify any consideration or particular information that was controlling of their decisions, and each Board Member may have attributed different weights to the various factors.

Nature, Extent and Quality of the Services to be Provided. In evaluating the nature, extent and quality of the services to be provided by Systematic under the Systematic Sub-Advisory Agreement, the Board considered, among other things, information and assurances provided by TAM and Systematic as to the operations, facilities, organization and personnel of Systematic, the anticipated ability of Systematic to perform its duties under the Systematic Sub-Advisory Agreement, and the anticipated changes to the current investment program and other practices of the Portfolio. The Board considered the proposed changes to the Portfolio’s investment objective and principal investment strategies. The Board considered that TAM has advised the Board that the appointment of Systematic is not expected to result in any diminution in the nature, extent and quality of services provided to the Portfolio and its shareholders, including compliance services. The Board considered that Systematic is an experienced and respected asset management firm and that TAM believes that Systematic has the capabilities, resources and personnel necessary to provide sub-advisory services to the Portfolio based on the assessment of the services that Systematic provides to other Transamerica funds.

Based on their review of the materials provided and the assurances they had received from TAM, the Board determined that Systematic can provide sub-advisory services that are appropriate in scope and extent in light of the proposed investment program for the Portfolio and that Systematic’s appointment is not expected to adversely affect the nature, extent and quality of services provided to the Portfolio.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    126

 

TRANSAMERICA PARTNERS SMALL CORE PORTFOLIO

APPROVAL OF NEW INVESTMENT SUB-ADVISORY AGREEMENT (continued)

 

 

Investment Performance. The Board considered Systematic’s performance, investment management experience, capabilities and resources, including with respect to the other Transamerica fund that it sub-advises. The Board reviewed the performance of the Portfolio as compared to the composite performance of the strategy to be followed by Systematic, which compared favorably to that of the Portfolio and its peer group for the 1-, 3- and 5- year periods (annualized) ended December 31, 2012. The Board Members further noted that TAM believes that the appointment of Systematic could benefit shareholders by offering them the potential for improved performance based on the historical comparisons, but were unable to predict what effect execution of the Systematic Sub-Advisory Agreement would actually have on the future performance of the Portfolio.

On the basis of this information and the Board’s assessment of the nature, extent and quality of the services to be provided by Systematic, the Board concluded that Systematic is capable of generating a level of investment performance that is appropriate in light of the Portfolio’s investment objectives, policies and strategies.

Sub-Advisory Fee, Cost of Services Provided and Profitability. The Board considered the proposed sub-advisory fee rate under the Systematic Sub-Advisory Agreement, including the change in the amount of the Portfolio’s advisory fee retained by TAM following payment of the sub-advisory fee that would result at certain asset levels from implementation of the Systematic Sub-Advisory Agreement. The Board noted that the advisory fee rate payable by the Portfolio would also be reduced at certain asset levels in connection with the sub-adviser change, which would benefit the Portfolio and its shareholders. The Board also noted that the Portfolio does not pay the sub-advisory fee. On the basis of these considerations, together with the other information it considered, the Board determined that the sub-advisory fee to be received by Systematic under the Systematic Sub-Advisory Agreement is reasonable in light of the services to be provided.

With respect to Systematic’s costs and profitability in providing services to the Portfolio, the Board noted that the sub-advisory fee is the product of arm’s-length negotiation between TAM and Systematic. As a result, the Board did not consider Systematic’s anticipated profitability as material to its decision to approve the Systematic Sub-Advisory Agreement.

Economies of Scale. The Board considered the sub-advisory fee schedule and the existence of breakpoints, noting that an additional breakpoint would be added to the Portfolio’s advisory fee schedule in connection with the sub-adviser change. The Board also considered that the sub-advisory fees would be based on the aggregate assets of the Portfolio and another fund sub-advised by Systematic. The Board considered that TAM also believes that the appointment of Systematic as sub-adviser has the potential to attract additional assets because of Systematic’s asset management capabilities. The Board Members concluded that they would have the opportunity to periodically reexamine whether the Portfolio has achieved economies of scale, and the appropriateness of management fees payable to TAM and fees payable by TAM to Systematic, in the future.

Fall-Out Benefits. The Board considered any other benefits to be derived by Systematic from its relationship with the Portfolio. The Board noted that TAM would not realize soft dollar benefits from its relationship with Systematic, and that Systematic may engage in soft dollar arrangements consistent with applicable law and “best execution” requirements.

Conclusion. After consideration of the factors described above, as well as other factors, the Board Members, including all of the Independent Board Members, concluded that the approval of the Systematic Sub-Advisory Agreement is in the best interests of the Portfolio and its shareholders and voted to approve the Systematic Sub-Advisory Agreement.

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    127

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Money Market Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  681,211,408.454    $  81,745,603.358   —   —

Alan F. Warrick

   $  681,336,607.409    $  81,620,404.403   —   —

Sandra N. Bane

   $  679,328,967.113    $  83,628,044.699   —   —

Leo J. Hill

   $  681,554,103.842    $  81,402,907.970   —   —

David W. Jennings

   $  681,513,718.347    $  81,443,293.465   —   —

Russell A. Kimball, Jr.

   $  680,258,076.749    $  82,698,935.063   —   —

Eugene M. Mannella

   $  681,621,248.210    $  81,335,763.602   —   —

Norman R. Nielsen

   $  681,736,461.492    $  81,220,550.320   —   —

Joyce G. Norden

   $  681,788,283.581    $  81,168,728.231   —   —

Patricia L. Sawyer

   $  679,428,592.345    $  83,528,419.467   —   —

John W. Waechter

   $  681,674,381.792    $  81,282,630.020   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II and Proposal III were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  658,752,305.039

   $  18,596,124.741   $  85,608,582.032   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  658,482,113.047

   $  18,763,761.009   $  85,711,137.756   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  658,299,359.859

   $  18,585,451.192   $  86,072,200.761   —

Proposal III: To approve a new sub-advisory agreement with a new sub-adviser

 

For   Against   Abstentions   Broker Non-Votes

$  668,059,621.262

   $  8,488,329.762   $  86,409,060.788   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    128

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners High Quality Bond Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  221,897,401.717    $  10,838,583.169   —   —

Alan F. Warrick

   $  221,902,125.078    $  10,833,859.808   —   —

Sandra N. Bane

   $  222,284,349.276    $  10,451,635.610   —   —

Leo J. Hill

   $  221,019,699.884    $  11,716,285.002   —   —

David W. Jennings

   $  222,261,790.027    $  10,474,194.858   —   —

Russell A. Kimball, Jr.

   $  222,002,291.829    $  10,733,693.057   —   —

Eugene M. Mannella

   $  220,764,925.046    $  11,971,059.840   —   —

Norman R. Nielsen

   $  222,014,069.442    $  10,721,915.444   —   —

Joyce G. Norden

   $  221,029,017.634    $  11,706,967.252   —   —

Patricia L. Sawyer

   $  221,017,240.021    $  11,718,744.865   —   —

John W. Waechter

   $  222,261,790.027    $  10,474,194.858   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  210,397,539.710

   $  6,862,458.177   $  15,475,986.998   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  209,213,539.944

   $  6,848,408.206   $  16,674,036.736   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  209,406,286.000

   $  6,786,818.284   $  16,542,880.601   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    129

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Inflation-Protected Securities Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  267,154,652.351    $  22,683,864.149   —   —

Alan F. Warrick

   $  267,155,198.072    $  22,683,318.427   —   —

Sandra N. Bane

   $  267,221,252.474    $  22,617,264.025   —   —

Leo J. Hill

   $  266,794,783.440    $  23,043,733.059   —   —

David W. Jennings

   $  267,139,435.711    $  22,699,080.788   —   —

Russell A. Kimball, Jr.

   $  267,150,631.967    $  22,687,884.532   —   —

Eugene M. Mannella

   $  266,810,545.801    $  23,027,970.699   —   —

Norman R. Nielsen

   $  267,179,958.653    $  22,658,557.846   —   —

Joyce G. Norden

   $  266,864,899.053    $  22,973,617.446   —   —

Patricia L. Sawyer

   $  266,856,568.161    $  22,981,948.339   —   —

John W. Waechter

   $  267,110,168.350    $  22,728,348.149   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  255,470,011.676

   $  15,494,589.481   $  18,873,915.342   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  255,597,194.898

   $  15,703,320.834   $  18,538,000.767   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  255,952,727.542

   $  15,252,726.401   $  18,633,062.556   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    130

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Core Bond Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  1,005,450,928.218    $  82,225,574.452   —   —

Alan F. Warrick

   $  1,005,356,203.181    $  82,320,299.489   —   —

Sandra N. Bane

   $  1,005,631,172.351    $  82,045,330.320   —   —

Leo J. Hill

   $  1,004,245,238.585    $  83,431,264.086   —   —

David W. Jennings

   $  1,005,470,672.131    $  82,205,830.539   —   —

Russell A. Kimball, Jr.

   $  1,005,478,642.077    $  82,197,860.593   —   —

Eugene M. Mannella

   $  1,004,145,953.600    $  83,530,549.070   —   —

Norman R. Nielsen

   $  1,005,450,821.579    $  82,225,681.091   —   —

Joyce G. Norden

   $  1,004,199,395.446    $  83,447,107.224   —   —

Patricia L. Sawyer

   $  1,004,297,085.978    $  83,379,416.693   —   —

John W. Waechter

   $  1,005,580,557.087    $  82,095,945.583   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  981,023,619.184

   $  17,083,132.156   $  89,569,751.330   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  975,147,965.292

   $  15,958,791.814   $  96,569,745.563   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  974,629,355.636

   $  23,151,126.579   $  89,896,020.455   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    131

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners High Yield Bond Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  445,902,670.667    $  39,286,516.940   —   —

Alan F. Warrick

   $  445,896,940.837    $  39,292,246.771   —   —

Sandra N. Bane

   $  446,016,777.274    $  39,172,410.333   —   —

Leo J. Hill

   $  445,890,953.815    $  39,298,233.793   —   —

David W. Jennings

   $  445,839,621.629    $  39,349,565.979   —   —

Russell A. Kimball, Jr.

   $  445,786,740.393    $  39,402,447.214   —   —

Eugene M. Mannella

   $  445,855,804.750    $  39,333,382.858   —   —

Norman R. Nielsen

   $  445,893,508.546    $  39,295,679.061   —   —

Joyce G. Norden

   $  445,943,577.618    $  39,245,609.990   —   —

Patricia L. Sawyer

   $  446,032,669.069    $  39,156,518.538   —   —

John W. Waechter

   $  445,900,035.501    $  39,289,152.107   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  438,944,584.383

   $  8,312,237.887   $  37,932,365.338   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  439,119,214.617

   $  8,069,685.537   $  38,000,287.454   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  439,126,313.755

   $  8,036,749.045   $  38,026,124.807   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    132

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Balanced Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  95,843,459.006    $  7,911,757.544   —   —

Alan F. Warrick

   $  95,857,327.187    $  7,897,889.363   —   —

Sandra N. Bane

   $  96,118,798.049    $  7,636,418.501   —   —

Leo J. Hill

   $  95,964,187.345    $  7,791,029.205   —   —

David W. Jennings

   $  95,872,846.366    $  7,882,370.185   —   —

Russell A. Kimball, Jr.

   $  96,027,457.069    $  7,727,759.481   —   —

Eugene M. Mannella

   $  96,118,798.049    $  7,636,418.501   —   —

Norman R. Nielsen

   $  96,011,937.891    $  7,743,278.660   —   —

Joyce G. Norden

   $  95,857,327.187    $  7,897,889.363   —   —

Patricia L. Sawyer

   $  96,134,317.227    $  7,620,899.323   —   —

John W. Waechter

   $  96,110,107.362    $  7,645,109.188   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  92,928,241.421

   $  2,551,166.432   $  8,275,808.697   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  93,472,068.085

   $  2,698,289.981   $  7,584,858.485   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  92,914,251.256

   $  2,544,514.403   $  8,296,450.891   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    133

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Large Value Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  645,893,867.567    $  43,660,493.102   —   —

Alan F. Warrick

   $  644,978,503.945    $  44,575,856.724   —   —

Sandra N. Bane

   $  645,199,799.584    $  44,354,561.085   —   —

Leo J. Hill

   $  645,908,905.890    $  43,645,454.779   —   —

David W. Jennings

   $  645,205,579.211    $  44,348,781.458   —   —

Russell A. Kimball, Jr.

   $  644,950,136.976    $  44,604,223.692   —   —

Eugene M. Mannella

   $  645,565,153.101    $  43,989,207.567   —   —

Norman R. Nielsen

   $  642,487,077.617    $  47,067,283.052   —   —

Joyce G. Norden

   $  642,375,449.165    $  47,178,911.503   —   —

Patricia L. Sawyer

   $  645,787,196.965    $  43,767,163.704   —   —

John W. Waechter

   $  646,199,132.612    $  43,355,228.057   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  635,229,544.526

   $  16,030,325.531   $  38,294,490.611   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  635,021,992.032

   $  16,812,501.798   $  37,719,866.839   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  637,076,262.816

   $  16,060,215.974   $  36,417,881.878   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    134

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Large Core Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  195,781,193.779    $  11,082,221.993   —   —

Alan F. Warrick

   $  195,551,241.436    $  11,312,174.336   —   —

Sandra N. Bane

   $  196,076,303.826    $  10,787,111.946   —   —

Leo J. Hill

   $  196,050,461.018    $  10,812,954.754   —   —

David W. Jennings

   $  195,925,353.282    $  10,938,062.490   —   —

Russell A. Kimball, Jr.

   $  195,816,283.562    $  11,047,132.210   —   —

Eugene M. Mannella

   $  195,663,743.863    $  11,199,671.909   —   —

Norman R. Nielsen

   $  195,799,482.190    $  11,063,933.582   —   —

Joyce G. Norden

   $  195,870,671.938    $  10,992,743.834   —   —

Patricia L. Sawyer

   $  196,024,395.545    $  10,839,020.227   —   —

John W. Waechter

   $  196,038,649.723    $  10,824,766.049   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  191,677,180.411

   $  4,224,425.097   $  10,961,810.264   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  191,278,333.067

   $  4,742,667.519   $  10,842,415.186   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  191,775,198.280

   $  4,267,781.393   $  10,820,436.099   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    135

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Large Growth Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  650,452,022.445    $  38,376,541.245   —   —

Alan F. Warrick

   $  648,859,404.309    $  39,969,159.381   —   —

Sandra N. Bane

   $  649,162,779.652    $  39,665,784.038   —   —

Leo J. Hill

   $  648,454,849.671    $  40,373,714.019   —   —

David W. Jennings

   $  649,202,386.199    $  39,626,177.491   —   —

Russell A. Kimball, Jr.

   $  649,184,899.927    $  39,643,663.764   —   —

Eugene M. Mannella

   $  648,991,567.864    $  39,836,995.826   —   —

Norman R. Nielsen

   $  649,067,492.007    $  39,761,071.684   —   —

Joyce G. Norden

   $  646,504,274.124    $  42,324,289.566   —   —

Patricia L. Sawyer

   $  649,031,667.951    $  39,796,895.739   —   —

John W. Waechter

   $  650,676,636.768    $  38,151,926.922   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  639,583,071.250

   $  5,010,311.550   $  44,235,180.891   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  638,645,964.157

   $  6,157,855.694   $  44,024,743.839   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  640,731,387.017

   $  4,276,807.816   $  43,820,368.857   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    136

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Mid Value Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  511,395,249.739    $  27,496,471.009   —   —

Alan F. Warrick

   $  511,366,409.788    $  27,525,310.959   —   —

Sandra N. Bane

   $  511,565,515.159    $  27,326,205.589   —   —

Leo J. Hill

   $  511,368,957.908    $  27,522,762.840   —   —

David W. Jennings

   $  511,416,509.515    $  27,475,211.232   —   —

Russell A. Kimball, Jr.

   $  511,308,754.011    $  27,582,966.737   —   —

Eugene M. Mannella

   $  511,400,612.796    $  27,491,107.952   —   —

Norman R. Nielsen

   $  511,272,635.602    $  27,619,085.146   —   —

Joyce G. Norden

   $  511,539,101.944    $  27,352,618.804   —   —

Patricia L. Sawyer

   $  511,592,819.423    $  27,298,901.324   —   —

John W. Waechter

   $  511,404,885.226    $  27,486,835.522   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  505,296,212.741

   $  6,017,186.056   $  27,578,321.950   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  504,849,704.278

   $  6,367,739.578   $  27,674,276.892   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  504,706,984.254

   $  6,098,395.404   $  28,086,341.090   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    137

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Mid Growth Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  103,093,009.244    $  4,903,108.376   —   —

Alan F. Warrick

   $  103,093,009.244    $  4,903,108.376   —   —

Sandra N. Bane

   $  103,093,009.244    $  4,903,108.376   —   —

Leo J. Hill

   $  103,093,009.244    $  4,903,108.376   —   —

David W. Jennings

   $  103,093,009.244    $  4,903,108.376   —   —

Russell A. Kimball, Jr.

   $  103,093,009.244    $  4,903,108.376   —   —

Eugene M. Mannella

   $  103,093,009.244    $  4,903,108.376   —   —

Norman R. Nielsen

   $  103,093,009.244    $  4,903,108.376   —   —

Joyce G. Norden

   $  103,093,009.244    $  4,903,108.376   —   —

Patricia L. Sawyer

   $  103,093,009.244    $  4,903,108.376   —   —

John W. Waechter

   $  103,093,009.244    $  4,903,108.376   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  103,524,716.704

   $  333,743.870   $  4,137,657.046   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  103,356,891.035

   $  501,569.539   $  4,137,657.046   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  103,524,716.704

   $  333,743.870   $  4,137,657.046   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    138

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Small Value Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  52,146,326.065    $  1,563,969.597   —   —

Alan F. Warrick

   $  52,146,326.065    $  1,563,969.597   —   —

Sandra N. Bane

   $  52,146,326.065    $  1,563,969.597   —   —

Leo J. Hill

   $  52,146,326.065    $  1,563,969.597   —   —

David W. Jennings

   $  52,146,326.065    $  1,563,969.597   —   —

Russell A. Kimball, Jr.

   $  52,146,326.065    $  1,563,969.597   —   —

Eugene M. Mannella

   $  52,146,326.065    $  1,563,969.597   —   —

Norman R. Nielsen

   $  52,146,326.065    $  1,563,969.597   —   —

Joyce G. Norden

   $  52,146,326.065    $  1,563,969.597   —   —

Patricia L. Sawyer

   $  52,146,326.065    $  1,563,969.597   —   —

John W. Waechter

   $  52,146,326.065    $  1,563,969.597   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  52,146,326.065

   $  113,460.367   $  1,450,509.230   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  52,135,287.754

   $  114,501.614   $  1,460,506.295   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  52,146,326.065

   $  113,460.367   $  1,450,509.230   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    139

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Small Core Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  235,098,146.333    $  13,362,419.995   —   —

Alan F. Warrick

   $  234,810,386.304    $  13,650,180.024   —   —

Sandra N. Bane

   $  235,399,582.864    $  13,060,983.463   —   —

Leo J. Hill

   $  234,909,733.701    $  13,550,832.627   —   —

David W. Jennings

   $  235,128,385.086    $  13,332,181.241   —   —

Russell A. Kimball, Jr.

   $  235,103,263.386    $  13,357,302.942   —   —

Eugene M. Mannella

   $  234,790,001.673    $  13,670,564.655   —   —

Norman R. Nielsen

   $  234,945,447.563    $  13,515,118.764   —   —

Joyce G. Norden

   $  234,361,157.909    $  14,099,408.418   —   —

Patricia L. Sawyer

   $  234,903,617.976    $  13,556,948.352   —   —

John W. Waechter

   $  235,347,564.929    $  13,113,001.399   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$229,822,524.202

   $  6,497,866.635   $  12,140,175.490   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$229,646,365.556

   $  6,543,985.642   $  12,270,215.130   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$229,930,652.014

   $  5,694,978.228   $  12,834,936.086   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    140

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners Small Growth Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  53,370,838.080    $  1,509,268.628   —   —

Alan F. Warrick

   $  53,370,838.080    $  1,509,268.628   —   —

Sandra N. Bane

   $  53,370,838.080    $  1,509,268.628   —   —

Leo J. Hill

   $  53,370,838.080    $  1,509,268.628   —   —

David W. Jennings

   $  53,370,838.080    $  1,509,268.628   —   —

Russell A. Kimball, Jr.

   $  53,370,838.080    $  1,509,268.628   —   —

Eugene M. Mannella

   $  53,370,838.080    $  1,509,268.628   —   —

Norman R. Nielsen

   $  53,370,838.080    $  1,509,268.628   —   —

Joyce G. Norden

   $  53,370,838.080    $  1,509,268.628   —   —

Patricia L. Sawyer

   $  53,370,838.080    $  1,509,268.628   —   —

John W. Waechter

   $  53,370,838.080    $  1,509,268.628   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  53,379,698.703

   $  21.982   $  1,500,386.022   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  53,097,159.678

   $  284,404.147   $  1,498,542.883   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  53,379,698.703

   $  1,865.122   $  1,498,542.883   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    141

 

 

TRANSAMERICA PARTNERS FUNDS

Transamerica Partners International Equity Portfolio

RESULTS OF SHAREHOLDER PROXY

Rule 30e-1 under the Investment Company Act of 1940, as amended, titled “Reports to Stockholders of Management Companies,” requires registered management companies to report on all subject matters put to the vote of shareholders and provide final results. Accordingly, the Board of Trustees of the Portfolio solicited a vote by the shareholders for the following items:

At a special meeting of shareholders held on February 26, 2013, the results of Proposal I were as follows:

Proposal I: To elect Board Members:

 

Proposed Trustee   For    Against/Withheld   Abstentions   Broker Non-Votes

Thomas A. Swank

   $  429,265,178.305    $  30,524,678.863   —   —

Alan F. Warrick

   $  429,051,333.538    $  30,738,523.630   —   —

Sandra N. Bane

   $  429,427,301.742    $  30,362,555.426   —   —

Leo J. Hill

   $  428,274,202.368    $  31,515,654.800   —   —

David W. Jennings

   $  429,461,880.108    $  30,327,977.060   —   —

Russell A. Kimball, Jr.

   $  429,350,138.098    $  30,439,719.070   —   —

Eugene M. Mannella

   $  429,256,521.568    $  30,533,335.601   —   —

Norman R. Nielsen

   $  429,135,644.788    $  30,654,212.381   —   —

Joyce G. Norden

   $  428,633,498.770    $  31,156,358.398   —   —

Patricia L. Sawyer

   $  429,282,186.034    $  30,507,671.134   —   —

John W. Waechter

   $  429,497,685.100    $  30,292,172.069   —   —

At a special meeting of shareholders held on February 26, 2013, the results of Proposal II were as follows:

Proposal II: To approve changes to the fundamental investment policies:

Proposal II.A — Underwriting

 

For   Against   Abstentions   Broker Non-Votes

$  416,016,719.789

   $  15,278,921.384   $  28,494,215.996   —

Proposal II.B — Real Estate

 

For   Against   Abstentions   Broker Non-Votes

$  415,253,712.636

   $  15,923,008.794   $  28,613,135.738   —

Proposal II.C — Concentration

 

For   Against   Abstentions   Broker Non-Votes

$  415,688,561.930

   $  15,350,497.912   $  28,750,797.326   —

 

Transamerica Partners Portfolio   Semi-Annual Report 2013

Page    142

TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY

440 Mamaroneck Avenue

Harrison, NY 10528

 

Item 2: Code of Ethics.

Not applicable for semi-annual reports.

Item 3: Audit Committee Financial Experts.

Not applicable for semi-annual reports.

Item 4: Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5: Audit Committee of Listed Registrants.

Not applicable for semi-annual reports.

Item 6: Investments.

 

  (a)

The schedules of investments are included in the Semi-Annual Report to shareholders filed under Item 1 of this Form N-CSR.

 

  (b)

Not applicable.

Item 7: Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8: Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9: Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10: Submission of Matters to a Vote of Security Holders

There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that have been implemented since the Registrant last provided disclosure in response to the requirements of this Item.

Item 11: Controls and Procedures.

 

  (a)

The Registrant’s principal executive officer and principal financial officer evaluated the Registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are appropriately designed to ensure that information required to be disclosed by the Registrant in the reports that it files on Form N-CSR (a) is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal

      

financial officer, to allow timely decisions regarding required disclosure, and (b) is recorded, processed, summarized and reported, within the time periods specified in the rules and forms adopted by the U.S. Securities and Exchange Commission.

 

  (b)

The Registrant’s principal executive officer and principal financial officer are aware of no change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 12: Exhibits.

 

(a)    (1)   

Not applicable.

   (2)   

Separate certifications for the Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(a) under the 1940 Act, are attached.

   (3)   

Not applicable.

 

  (b)

A certification for the Registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) under the 1940 Act, is attached. The certification furnished pursuant to this paragraph is not deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to liability of that section. Such certification is not deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent that the Registrant specifically incorporates it by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Transamerica Asset Allocation Variable Funds

    (Registrant)

By:

   

/s/ Thomas A. Swank

  

Thomas A. Swank

  

Chief Executive Officer

  

(Principal Executive Officer)

Date:

   

August 28, 2013

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

 

By:

  

/s/ Thomas A. Swank

   
   

Thomas A. Swank

   
   

Chief Executive Officer

   
   

(Principal Executive Officer)

   
 

Date:

  

August 28, 2013

   
 

By:

  

/s/ Elizabeth Strouse

   
   

Elizabeth Strouse

   
   

Principal Financial Officer

   
 

Date:

  

August 28, 2013

   

EXHIBIT INDEX

 

Exhibit No.

  

Description of Exhibit

12(a)(2)(i)   Section 302 N-CSR Certification of Principal Executive Officer
12(a)(2)(ii)   Section 302 N-CSR Certification of Principal Financial Officer
12(b)   Section 906 N-CSR Certification of Principal Executive Officer and Principal Financial Officer