N-CSR 1 d655266dncsr.htm N-CSR N-CSR

As filed with the Securities and Exchange Commission on March 10, 2014

 

 

 

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

(Exact Name of Registrant as Specified in Charter)

 

 

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- December 31, 2013

 

 

 

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

 

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 annual report of the Transamerica Asset Allocation Variable Funds and the 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 the 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

 

December 31, 2013

To Contract Holders with Interests in

the Transamerica Partners Variable Funds:

We are pleased to present the most recent annual reports for the Transamerica Partners Portfolios and for the Calvert VP SRI Balanced Portfolio. As required under applicable law, we are sending these 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 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 year in order to provide a context for reading this report. As 2013 began, fear of the U.S. fiscal cliff had been holding markets down even as earnings were improving. However, in early January, Congress resolved the fiscal cliff and as a result U.S. markets moved up strongly throughout the first quarter of 2013.

Spring brought slower conditions in Europe, which pushed international equities down. However, Japan’s new quantitative easing program launched in April helped them bounce back. In the U.S., economic conditions continued to improve as summer approached, prompting the Federal Reserve to announce plans to taper purchases of mortgages and Treasury bonds. As a result, equities and bonds sold off in anticipation of higher rates, pushing yields on the 10-year Treasury from 1.70% in April to 2.98% in September.

During the third quarter, the Federal Reserve’s message that “tapering is not tightening” seemed to satisfy markets as U.S. equities climbed higher on improving earnings. The market was able to hold onto those gains despite the government shutdown in October and concerns about a possible default. In December, the Federal Reserve announced the first taper and while U.S. equity markets responded favorably to the growth implications, bond markets pushed the 10-year Treasury yield further upward to end the year at 3.04%.

For the year ending December 31, 2013, the S&P 500® gained 32.39%, the MSCI Europe, Australasia, Far East Index gained 23.29% and the Barclays U.S. Aggregate Bond Index lost 2.02%. 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

 

 

The views expressed in this report reflect those of the portfolio managers only and may not necessarily represent the views of the Transamerica Asset Allocation Variable Funds. These views are subject to change based upon market conditions. These views should not be relied upon as investment advice and are not indicative of trading intent on behalf of the 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. Subaccount contract holders bear the cost of operating the Subaccount (such as the advisory fee). 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 July 1, 2013 and held for the entire period until December 31, 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 Subaccounts’ actual expense ratios and an assumed rates of return of 5% per year before expenses, which are not the Subaccounts’ actual returns. 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)

        
Subaccount 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      $   1,023.70      $   1.03      $   1,024.46      $   1.03        0.20 % 

Transamerica Asset Allocation Variable -
Intermediate Horizon Subaccount

     1,000.00        1,090.60        1.07        1,024.46        1.03        0.20   

Transamerica Asset Allocation Variable -
Intermediate/Long Horizon Subaccount

     1,000.00        1,121.90        1.08        1,024.46        1.03        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 (186), 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   Annual Report 2013

Page    1

Schedules of Investments Composition

 

 

At December 31, 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

      88.7 % 

Domestic Equity

      8.9   

International Equity

      2.2   

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

      45.9 % 

Domestic Equity

      42.8   

International Equity

      11.0   

Money Market

      0.3   

Other Assets and Liabilities - Net

      (0.0 )(A) 

Total

      100.0 % 
  

 

 

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

Domestic Equity

      56.2 % 

Fixed Income

      27.6   

International Equity

      15.9   

Money Market

      0.3   

Other Assets and Liabilities - Net

      (0.0 )(A) 

Total

      100.0 % 
  

 

 

  

 

 

(A)  Percentage rounds to less than 0.1%

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    2

Transamerica Asset Allocation Variable -

Short Horizon Subaccount

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

INVESTMENT COMPANIES - 100.0%

     

Domestic Equity - 8.9%

     

Transamerica Partners Variable Large Growth (A) (B)

     2,990         $  229,980   

Transamerica Partners Variable Large Value (A) (B)

     3,045         222,287   

Transamerica Partners Variable Small Core (A) (B)

     2,762         152,527   

Fixed Income - 88.7%

     

Transamerica Partners Variable Core Bond (A) (B)

     74,615         3,190,505   

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

     61,604         1,091,967   

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

     24,661         734,210   

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

     39,530         1,046,145   

International Equity - 2.2%

     

Transamerica Partners Variable International Equity (A) (B)

     6,452         149,842   

Money Market - 0.2%

     

Transamerica Partners Variable Money Market (A) (B)

     743         15,667   
    

 

 

  

Total Investment Companies (cost $5,852,681)

  

      6,833,130   
    

 

 

  

Total Investment Securities (cost $5,852,681) (C)

  

      6,833,130   

Other Assets and Liabilities - Net - (0.0)% (D)

        (1,180 ) 
    

 

 

  

Net Assets - 100.0%

        $  6,831,950   
    

 

 

  
 

VALUATION SUMMARY: (E)

 

    

Level 1

Quoted Prices

    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

Investment Companies

   $ 6,833,130      $ —      $ —      $ 6,833,130   

Total Investment Securities

   $ 6,833,130      $ —      $ —      $ 6,833,130   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  Each Subaccount invests substantially all of its assets in an affiliated fund of the Transamerica Partners Variable Funds.
(C)  Aggregate cost for federal income tax purposes is $5,852,681. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $980,449.
(D) Percentage rounds to less than 0.1%.
(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 December 31, 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   Annual Report 2013

Page    3

Transamerica Asset Allocation Variable -

Intermediate Horizon Subaccount

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

INVESTMENT COMPANIES - 100.0%

     

Domestic Equity - 42.8%

     

Transamerica Partners Variable Large Growth (A) (B)

     44,012         $  3,385,192   

Transamerica Partners Variable Large Value (A) (B)

     45,530         3,324,237   

Transamerica Partners Variable Small Core (A) (B)

     39,389         2,175,575   

Fixed Income - 45.9%

     

Transamerica Partners Variable Core Bond (A) (B)

     107,842         4,611,247   

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

     84,493         1,497,689   

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

     40,684         1,211,255   

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

     83,988         2,222,717   

International Equity - 11.0%

     

Transamerica Partners Variable International Equity (A) (B)

     98,780         2,294,115   

Money Market - 0.3%

     

Transamerica Partners Variable Money Market (A) (B)

     2,657         56,048   
    

 

 

  

Total Investment Companies (cost $15,693,791)

  

      20,778,075   
    

 

 

  

Total Investment Securities (cost $15,693,791) (C)

  

      20,778,075   

Other Assets and Liabilities - Net - (0.0)% (D)

        (3,617 ) 
    

 

 

  

Net Assets - 100.0%

        $  20,774,458   
    

 

 

  
 

 

VALUATION SUMMARY: (E)

 

    

Level 1

Quoted Prices

    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

Investment Companies

   $ 20,778,075      $ —      $ —      $ 20,778,075   

Total Investment Securities

   $ 20,778,075      $ —      $ —      $ 20,778,075   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  Each Subaccount invests substantially all of its assets in an affiliated fund of the Transamerica Partners Variable Funds.
(C) Aggregate cost for federal income tax purposes is $15,693,791. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $5,084,284.
(D)  Percentage rounds to less than 0.1%.
(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 December 31, 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   Annual Report 2013

Page    4

Transamerica Asset Allocation Variable -

Intermediate/Long Horizon Subaccount

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

INVESTMENT COMPANIES - 100.0%

     

Domestic Equity - 56.2%

     

Transamerica Partners Variable Large Growth (A) (B)

     86,173         $  6,627,923   

Transamerica Partners Variable Large Value (A) (B)

     86,595         6,322,500   

Transamerica Partners Variable Small Core (A) (B)

     76,612         4,231,512   

Fixed Income - 27.6%

     

Transamerica Partners Variable Core Bond (A) (B)

     100,841         4,311,882   

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

     31,467         557,765   

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

     37,282         1,109,956   

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

     93,566         2,476,176   

International Equity - 15.9%

     

Transamerica Partners Variable International Equity (A) (B)

     209,962         4,876,271   

Money Market - 0.3%

     

Transamerica Partners Variable Money Market (A) (B)

     4,412         93,073   
    

 

 

  

Total Investment Companies (cost $22,043,171)

  

      30,607,058   
    

 

 

  

Total Investment Securities (cost $22,043,171) (C)

  

      30,607,058   

Other Assets and Liabilities - Net - (0.0)% (D)

        (5,298 ) 
    

 

 

  

Net Assets - 100.0%

        $  30,601,760   
    

 

 

  
 

 

VALUATION SUMMARY: (E)

 

    

Level 1

Quoted Prices

    

Level 2

Other
Significant
Observable
Inputs

     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

Investment Companies

   $ 30,607,058      $ —      $ —      $ 30,607,058   

Total Investment Securities

   $ 30,607,058      $ —      $ —      $ 30,607,058   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Non-income producing security.
(B)  Each Subaccount invests substantially all of its assets in an affiliated fund of the Transamerica Partners Variable Funds.
(C)  Aggregate cost for federal income tax purposes is $22,043,171. Aggregate gross unrealized appreciation for all securities in which there is an excess of value over tax cost was $8,563,887.
(D)  Percentage rounds to less than 0.1%.
(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 December 31, 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   Annual Report 2013

Page    5

 

STATEMENTS OF ASSETS AND LIABILITIES

At December 31, 2013

 

    

Short

Horizon

     Intermediate
Horizon		    

Intermediate/

Long Horizon

  

Assets:

            

Investments in affiliated investment companies, at value

   $ 6,833,130      $ 20,778,075      $ 30,607,058   

Receivables:

            

Units sold

     3,349        12,751        29,874   

Total assets

     6,836,479        20,790,826        30,636,932   
       

Liabilities:

            

Accounts payable and accrued liabilities:

            

Units redeemed

     1,347        2,698        2,801   

Affiliated investment securities purchased

     2,001        10,053        27,073   

Investment advisory fees

     1,181        3,617        5,298   

Total liabilities

     4,529        16,368        35,172   

Net assets

   $ 6,831,950      $ 20,774,458      $ 30,601,760   
       

Net assets consist of:

            

Costs of accumulation units

   $ 2,009,506      $ 7,822,799      $ 15,156,770   

Undistributed (accumulated) net investment income (loss)

     (254,363 )      (709,629 )      (985,840 ) 

Undistributed (accumulated) net realized gain (loss)

     4,096,358        8,577,004        7,866,943   

Net unrealized appreciation (depreciation) on:
Affiliated investment companies

     980,449        5,084,284        8,563,887   

Net assets

   $ 6,831,950      $ 20,774,458      $ 30,601,760   

Accumulation units

     332,920        913,876        1,291,374   

Unit value

   $ 20.52      $ 22.73      $ 23.70   

Investments in affiliated investment companies, at cost

   $     5,852,681      $     15,693,791      $     22,043,171   

STATEMENTS OF OPERATIONS

For the year ended December 31, 2013

 

     Short
Horizon		     Intermediate
Horizon		    

Intermediate/

Long Horizon

  

Expenses:

            

Investment advisory

   $ 14,851      $ 39,711      $ 58,474   

Net investment income (loss)

     (14,851 )      (39,711 )      (58,474 ) 

Net realized gain (loss) on transactions from:

            

Affiliated investment companies

     740,897        921,391        1,000,128   

Net realized gain (loss)

     740,897        921,391        1,000,128   
       

Net change in unrealized appreciation (depreciation) on:

            

Affiliated investment companies

     (668,118 )      1,566,907        4,127,435   

Net change in unrealized appreciation (depreciation)

         (668,118 )      1,566,907        4,127,435   

Net realized and change in unrealized gain (loss)

     72,779        2,488,298        5,127,563   

Net increase (decrease) in net assets resulting from operations

   $ 57,928      $     2,448,587      $     5,069,089   

 

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

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    6

 

STATEMENTS OF CHANGES IN NET ASSETS

For the years ended:

 

     Short Horizon     Intermediate Horizon     Intermediate/Long Horizon  
     December 31, 2013     December 31, 2012     December 31, 2013     December 31, 2012     December 31, 2013     December 31, 2012  

From operations:

                        

Net investment income (loss)

   $ (14,851 )    $ (17,693 )    $ (39,711 )    $ (43,224 )    $ (58,474 )    $ (57,139 ) 

Net realized gain (loss)

     740,897        532,247        921,391        986,992        1,000,128        608,260   

Net change in unrealized appreciation (depreciation)

     (668,118 )      114,594        1,566,907        1,306,365        4,127,435        2,906,322   

Net increase (decrease) in net assets resulting from operations

     57,928        629,148        2,448,587        2,250,133        5,069,089        3,457,443   
             

From unit transactions:

                        

Units sold

     1,408,609        1,581,801        3,256,968        2,061,876        2,848,907        2,412,732   

Units redeemed

     (2,861,136 )      (2,868,608 )      (4,649,264 )      (6,192,904 )      (5,110,086 )      (6,079,030 ) 

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

     (1,452,527 )      (1,286,807 )      (1,392,296 )      (4,131,028 )      (2,261,179 )      (3,666,298 ) 

Net increase (decrease) in net assets

     (1,394,599 )      (657,659 )      1,056,291        (1,880,895 )      2,807,910        (208,855 ) 
             

Net assets:

                        

Beginning of year

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

End of year

   $ 6,831,950      $ 8,226,549      $ 20,774,458      $ 19,718,167      $ 30,601,760      $ 27,793,850   

Undistributed (accumulated) net investment income (loss)

   $ (254,363 )    $ (239,512 )    $ (709,629 )    $ (669,918 )    $ (985,840 )    $ (927,366 ) 
             

Units outstanding beginning of year

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

Units sold

     69,050        80,080        150,607        106,778        131,770        126,303   

Units redeemed

     (139,938 )      (144,190 )      (217,513 )      (315,008 )      (235,284 )      (313,917 ) 

Units outstanding end of year

     332,920        403,808        913,876        980,782        1,291,374        1,394,888   

 

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

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    7

 

FINANCIAL HIGHLIGHTS

For the years ended:

 

For a unit outstanding throughout each year   Short Horizon  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Unit value

                    

Beginning of year

   $ 20.37      $ 18.99      $ 18.24      $ 16.95      $ 14.66   

Investment operations

                    

Net investment income (loss)(A)

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

Net realized and unrealized gain (loss)

     0.19        1.42        0.79        1.33        2.32   

Total investment operations

     0.15        1.38        0.75        1.29        2.29   

Unit value

                    

End of year

   $ 20.52      $ 20.37      $ 18.99      $ 18.24      $ 16.95   

Total return

     0.73 %      7.30 %      4.07 %      7.65 %      15.62 % 

Net assets end of year (000’s)

   $ 6,832      $ 8,227      $ 8,884      $ 9,608      $ 10,112   

Ratio and supplemental data

                    

Expenses to average net assets(B)

     0.20 %      0.20 %      0.20 %      0.20 %      0.20 % 

Net investment income (loss) to average net assets

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

Portfolio turnover rate(C)

     63 %      51 %      46 %      36 %      28 % 

 

(A)  Calculated based on average number of units outstanding.
(B)  Does not include expenses of the investment companies in which the Subaccount invests.
(C)  Does not include the portfolio activity of the investment companies in which the Subaccount invests.
Note: Prior to January 1, 2010, the financial highlights were audited by another independent registered public accounting firm.

 

For a unit outstanding throughout each year   Intermediate Horizon  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Unit value

                    

Beginning of year

   $ 20.10      $ 18.17      $ 18.13      $ 16.22      $ 13.46   

Investment operations

                    

Net investment income (loss)(A)

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

Net realized and unrealized gain (loss)

     2.67        1.97        0.08        1.94        2.79   

Total investment operations

     2.63        1.93        0.04        1.91        2.76   

Unit value

                    

End of year

   $ 22.73      $ 20.10      $ 18.17      $ 18.13      $ 16.22   

Total return

     13.07 %      10.67 %      0.19 %      11.81 %      20.51 % 

Net assets end of year (000’s)

   $ 20,774      $ 19,718      $ 21,599      $ 24,180      $ 24,295   

Ratio and supplemental data

                    

Expenses to average net assets(B)

     0.20 %      0.20 %      0.20 %      0.20 %      0.20 % 

Net investment income (loss) to average net assets

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

Portfolio turnover rate(C)

     54 %      37 %      42 %      25 %      34 % 

 

(A)  Calculated based on average number of units outstanding.
(B)  Does not include expenses of the investment companies in which the Subaccount invests.
(C)  Does not include the portfolio activity of the investment companies in which the Subaccount invests.
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   Annual Report 2013

Page    8

 

FINANCIAL HIGHLIGHTS (continued)

For the years ended:

 

For a unit outstanding throughout each year   Intermediate/Long Horizon  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Unit value

                    

Beginning of year

   $ 19.93      $ 17.70      $ 17.99      $ 15.78      $ 12.89   

Investment operations

                    

Net investment income (loss)(A)

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

Net realized and unrealized gain (loss)

     3.81        2.27        (0.25 )      2.24        2.92   

Total investment operations

     3.77        2.23        (0.29 )      2.21        2.89   

Unit value

                    

End of year

   $ 23.70      $ 19.93      $ 17.70      $ 17.99      $ 15.78   

Total return

     18.93 %      12.60 %      (1.66 )%      14.05 %      22.42 % 

Net assets end of year (000’s)

   $ 30,602      $ 27,794      $ 28,003      $ 30,991      $ 30,478   

Ratio and supplemental data

                    

Expenses to average net assets(B)

     0.20 %      0.20 %      0.20 %      0.20 %      0.20 % 

Net investment income (loss) to average net assets

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

Portfolio turnover rate(C)

     32 %      30 %      34 %      23 %      54 % 

 

(A)  Calculated based on average number of units outstanding.
(B)  Does not include expenses of the investment companies in which the Subaccount invests.
(C)  Does not include the portfolio activity of the investment companies in which the Subaccount invests.
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   Annual Report 2013

Page    9

 

NOTES TO FINANCIAL STATEMENTS

At December 31, 2013

 

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 substantially all of its investable assets among certain Transamerica Partners Variable Funds (“TPVF”). Certain TPVF subaccounts invest substantially all of their investable assets in the Transamerica Partners Portfolios (the ”Portfolios”).

Transamerica Asset Management, Inc. (“TAM”) provides continuous and regular investment advisory services to the Subaccounts. TAM acts as a manager of managers, providing advisory services that include, without limitation, the design and development of each Subaccount 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 Subaccount 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 fund combinations and liquidations where it believes appropriate or advisable; regular supervision of the Subaccounts’ 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 Subaccount 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 Subaccounts’ Board of Trustees; oversight of preparation of prospectuses, shareholder reports and other disclosure materials and filings; and oversight of other service providers to the Subaccounts, such as the custodian, the transfer agent, the administrator, the distributor, the Subaccounts’ independent registered public accounting firm and legal counsel; supervision of the performance of recordkeeping and shareholder relations for the Subaccounts; 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 Subaccounts by TAM and are responsible, subject to TAM’s and the Board of Trustees oversight, for the day-to-day management of the Subaccounts and for making decisions to buy, hold or sell a particular security.

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 its affiliates that have not yet occurred. However, based on experience, the Subaccounts expect the risk of loss to be remote.

In preparing the Subaccounts’ 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 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 the TPVF is valued at the unit value per share of each Subaccount at the close of the New York Stock Exchange (“NYSE”), normally 4:00 p.m. Eastern Time, each day the NYSE is open for business. Certain TPVF subaccounts invest substantially all of their investable assets in the Portfolios. The valuation policies of the Portfolios are discussed in Note 2 of the Portfolios’ Notes to Financial Statements, which are attached to this report. 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.

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    10

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 2. (continued)

 

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 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 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 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 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:

Each Subaccount invests substantially all of its investable assets among certain TPVF subaccounts and the TPVF subaccounts invest all of their investable assets in the Portfolios. The summary of the inputs used for valuing each Portfolio’s assets carried at fair value is discussed in Note 2 of the Portfolios’ Notes to Financial Statements, which are attached to this report.

Investment companies: Investment companies are valued at the net asset value (“NAV”) of the underlying funds. 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.

The hierarchy classification of inputs used to value the Subaccounts’ investments, at December 31, 2013, is disclosed in the Valuation Summary of each Subaccount’s Schedule of Investments.

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    11

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

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, for which it receives a monthly advisory fee that 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 of TFLIC 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 payable from the Subaccounts 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.

NOTE 4. PURCHASES AND SALES OF SECURITIES

The cost of affiliated investments purchased and proceeds from affiliated investments sold (excluding short-term securities) for the year ended December 31, 2013 were as follows:

 

Subaccount Name   Purchases
of affiliated
investments		     Proceeds from
maturities and
sales of affiliated
investments		  

Short Horizon

   $ 4,716,050      $ 6,183,684   

Intermediate Horizon

     10,757,879        12,189,601   

Intermediate/Long Horizon

     9,264,078        11,583,088   
   

 

 

    

 

 

  

There were no transactions in U.S. Government securities during the year ended December 31, 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. The Subaccounts 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. The Subaccounts’ federal tax returns remain subject to examination by the Internal revenue Service and state tax authorities for the prior three years. Management has evaluated the Subaccounts’ tax provisions taken for all open tax years, and has concluded that no provision for income tax is required in the Subaccounts’ financial statements. If applicable, the Subaccounts recognize interest accrued related to unrecognized tax benefits in interest and penalties expense in Other on the Statements of Operations. The Subaccounts identify their major tax jurisdictions as U.S. Federal, the State of Florida, the State of New York, and foreign jurisdictions where the Subaccounts make significant investments; however, the Subaccounts are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next twelve months.

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    12

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 6. ACCOUNTING PRONOUNCEMENTS

 

In June 2013, the Financial Accounting Standards Board issued an update which sets forth a new approach for determining whether a public or private company qualifies as an Investment Company and requires certain additional disclosures. The adoption of this disclosure requirement is effective for financial statements interim and annual reporting periods beginning on or after December 15, 2013. Management is currently evaluating the implication, if any, of the additional disclosure requirements and its impact on the Subaccounts’ financial statements.

NOTE 7. SUBSEQUENT EVENTS

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

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    13

 

 

Report of Independent Registered Public Accounting Firm

To the Board of Directors of Transamerica Financial Life Insurance Company and the Contractholders of Transamerica Asset Allocation Variable Funds:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Transamerica Asset Allocation Variable Funds (comprising, respectively, Transamerica Asset Allocation – Short Horizon Subaccount, Transamerica Asset Allocation – Intermediate Horizon Subaccount and Transamerica Asset Allocation – Intermediate/Long Horizon Subaccount) (collectively, the “Subaccounts”) as of December 31, 2013, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended. These financial statements and financial highlights are the responsibility of the Subaccounts’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the period ended prior to January 1, 2010 were audited by another independent registered public accounting firm whose report, dated March 1, 2010, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Subaccounts’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Subaccounts’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned Subaccounts constituting Transamerica Asset Allocation Variable Funds at December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with U.S. generally accepted accounting principles.

LOGO

Boston, Massachusetts

February 28, 2014

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    14

 

 

Board Members and Officers

The Board Members and executive officers of each Trust are listed below.

Interested Board Member means a board member who may be deemed an “interested person” (as that term is defined in the 1940 Act) of each Trust because of his current or former service with TAM or an affiliate of TAM. Interested Board Members may also be referred to herein as “Interested Trustees.” Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of each Trust and may also be referred to herein as an “Independent Trustee.”

The Board governs each fund and is responsible for protecting the interests of the shareholders. The Board Members are experienced executives who meet periodically throughout the year to oversee the business affairs of each fund and the operation of each fund by its officers. The Board also reviews the management of each fund’s assets by the investment adviser and its respective sub-adviser.

The funds are among the funds advised and sponsored by TAM (collectively, “Transamerica Mutual Funds”). The Transamerica Mutual Funds consist of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Income Shares, Inc. (“TIS”), Transamerica Partners Funds Group (“TPFG”), Transamerica Partners Funds Group II (“TPFG II”), Transamerica Partners Portfolios (“TPP”) and Transamerica Asset Allocation Variable Funds (“TAAVF”) and consists of 172 funds as of the date of this Annual Report.

The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716.

The Board Members of each Trust and each Portfolio Trust, their year of birth, their positions with the Trusts, and their principal occupations for the past five years (their titles may have varied during that period) the number of funds in Transamerica Mutual Funds the Board oversees, and other board memberships they hold are set forth in the table below. The length of time served is provided from the date a Trustee became a Trustee of either of the Trusts or Transamerica Partners Portfolios.

 

Name and
Year of Birth		   Position(s)
Held with
Trust		   Term of
Office and
Length
of Time
Served*		    Principal Occupation(s)
During Past Five Years		   Number of
Funds in
Complex
Overseen
by Board
Member		   Other
Directorships
During the Past
Five Years

INTERESTED BOARD MEMBERS

Thomas A. Swank

(1960)

   Chairman, Board Member, President and Chief Executive Officer   Since 2012   

President and Chief Executive Officer, Transamerica Individual Savings & Retirement (2010 – present);

 

President and Chief Executive Officer, Transamerica Capital Management (2009 – present);

 

Chairman (2013 – present), Board Member (2012 – present), President and Chief Executive Officer, Transamerica Funds, TST, TIS (2012 – present);

 

Chairman (2013 – present), Board Member (2013 – present), President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2012 – present);

 

Director, Chairman of the Board, Chief Executive Officer and President, Transamerica Asset Management, Inc. (“TAM”) (2012 – present);

 

Director, Chairman of the Board, Chief Executive Officer and President, Transamerica Fund Services, Inc. (“TFS”) (2012 – present);

   172   N/A

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    15

 

 

Name and
Year of Birth		   Position(s)
Held with
Trust		   Term of
Office and
Length
of Time
Served*		    Principal Occupation(s)
During Past Five Years		   Number of
Funds in
Complex
Overseen
by Board
Member		   Other
Directorships
During the Past
Five Years

INTERESTED BOARD MEMBERS—continued

Thomas A. Swank

(continued)

           

Director and Trust Officer, Massachusetts Fidelity Trust Company (2012 – present);

 

Division President, Monumental Life Insurance Company (2011 – present);

 

Division President, Western Reserve Life Assurance Co. of Ohio (2011 – present);

 

Vice President, Money Services, Inc. (2011 – present);

 

Director and President, Aegon Financial Services Group, Inc. (2010 – present);

 

Director, AFSG Securities Corporation (2010 – present);

 

Director and President, Transamerica Advisors Life Insurance Company (2010 – present);

 

Director, Chairman of the Board and President, Transamerica Advisors Life Insurance Company of New York (2010 – present);

 

Director and President, Transamerica Resources, Inc. (2010 – present);

 

Executive Vice President, Transamerica Life Insurance Company (2010 – present);

 

Executive Vice President, Transamerica Financial Life Insurance Company (2009 – present);

 

Director, Transamerica Capital, Inc. (2009 – present); and

 

President and Chief Operating Officer (2007 – 2009), Senior Vice President, Chief Marketing Officer (2006 – 2007), Senior Vice President, Chief Financial Officer (2003 – 2006), Senior Vice President, Chief Risk Officer (2000 – 2003), Senior Vice President, Chief Investment Officer (1997 – 2000), and High Yield Portfolio Manager (1992 – 1997), Security Benefit Corporation.

        

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    16

 

 

Name and
Year of Birth		   Position(s)
Held with
Trust		   Term of
Office and
Length
of Time
Served*		    Principal Occupation(s)
During Past Five Years		   Number of
Funds in
Complex
Overseen
by Board
Member		   Other
Directorships
During the Past
Five Years

INTERESTED BOARD MEMBERS—continued

Alan F. Warrick

(1948)

   Board Member   Since 2012   

Board Member, Transamerica Funds, TST, TIS, TPP, TPFG,

TPFG II and TAAVF

(2012 – present);

 

Consultant, Aegon USA (2010 – 2011);

 

Senior Advisor, Lovell Minnick Equity Partners (2010 – present);

 

Retired (2010 – present); and Managing Director for Strategic Business Development, Aegon USA (1994 – 2010).

   172   First Allied Holdings Inc. (2013 – 2014)

INDEPENDENT BOARD MEMBERS

Sandra N. Bane

(1952)

   Board Member   Since 2008   

Retired (1999 – present); Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 – present);

 

Board Member, Transamerica Investors, Inc. (“TII”) (2003 – 2010); and

 

Partner, KPMG (1975 – 1999).

   172   Big 5 Sporting Goods (2002 – present); AGL Resources, Inc. (energy services holding company) (2008 – present)

Leo J. Hill

(1956)

  

Lead

Independent

Board Member

   Since 2007   

Principal, Advisor Network Solutions, LLC (business consulting) (2006 – present);

 

Board Member, TST (2001 – present);

 

Board Member, Transamerica Funds and TIS (2002 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Market President, Nations Bank of Sun Coast Florida (1998 – 1999);

 

Chairman, President and Chief Executive Officer, Barnett Banks of Treasure Coast Florida (1994 – 1998);

 

Executive Vice President and Senior Credit Officer, Barnett Banks of Jacksonville, Florida (1991 – 1994); and Senior Vice President and Senior Loan Administration Officer, Wachovia Bank of Georgia (1976 – 1991).

   172   Ameris Bancorp (2013 – present); Ameris Bank (2013 – present)

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    17

 

 

Name and
Year of Birth		   Position(s)
Held with
Trust		   Term of
Office and
Length
of Time
Served*		    Principal Occupation(s)
During Past Five Years		   Number of
Funds in
Complex
Overseen
by Board
Member		   Other
Directorships
During the Past
Five Years

INDEPENDENT BOARD MEMBERS—continued

David W. Jennings

(1946)

   Board Member   Since 2009   

Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 – present);

 

Board Member, TII (2009 – 2010);

 

Managing Director, Hilton Capital (2010 – present);

 

Principal, Maxam Capital Management, LLC (2006 – 2008); and

 

Principal, Cobble Creek Management LP (2004 – 2006).

   172   N/A

Russell A. Kimball, Jr

(1944)

   Board Member   2007   

General Manager, Sheraton Sand Key Resort (1975 – present);

 

Board Member, TST (1986 – present);

 

Board Member, Transamerica Funds, (1986 – 1990), (2002 – present);

 

Board Member, TIS (2002 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present); and Board Member, TII (2008 – 2010).

   172   N/A

Eugene M. Mannella

(1954)

   Board Member   Since 1993   

Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 – present);

 

Self-employed consultant (2006 – present);

 

Managing Member and Chief Compliance Officer, HedgeServ Investment Services, LLC (limited purpose broker-dealer) (2011 – present);

 

President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 – 2008);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present);

 

Board Member, Transamerica Funds, TST and TIS (2007 – present);

 

Board Member, TII (2008 – 2010); and

 

President, International Fund Services (alternative asset administration) (1993 – 2005).

   172   N/A

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    18

 

 

Name and
Year of Birth		   Position(s)
Held with
Trust		   Term of
Office and
Length
of Time
Served*		    Principal Occupation(s)
During Past Five Years		   Number of
Funds in
Complex
Overseen
by Board
Member		   Other
Directorships
During the Past
Five Years

INDEPENDENT BOARD MEMBERS—continued

Norman R.
Nielsen, Ph.D.

(1939)

   Board Member   Since 2007   

Retired (2005 – present);

 

Board Member, Transamerica Funds, TST and TIS (2006 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Interim President, Mt. Mercy University (2013 – present);

 

Director, Aspire Inc. (formerly, Iowa Student Loan Service Corporation) (2006 – present);

 

Director, League for Innovation in the Community Colleges (1985 – 2005);

 

Director, Iowa Health Systems (1994 – 2003);

 

Director, U.S. Bank (1985 – 2006); and

 

President, Kirkwood Community College (1985 – 2005).

   172   Buena Vista University Board of Trustees (2004 – present); Chairman (2012 – present)

Joyce G. Norden

(1939)

   Board Member   Since 1993   

Retired (2004 – present);

 

Board Member, TPFG, TPFG II and TAAVF (1993 – present);

 

Board Member, TPP (2002 – present);

 

Board Member, Transamerica Funds, TST and TIS (2007 – present);

 

Board Member, TII (2008 – 2010); and

 

Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 – 2004).

   172  

Board of Governors, Reconstructionist Rabbinical College

(2007 – 2012)

Patricia L. Sawyer

(1950)

   Board Member   Since 1993   

Retired (2007 – present); President/Founder, Smith & Sawyer LLC (management consulting) (1989 – 2007);

 

Board Member, Transamerica Funds, TST and TIS (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present);

 

Trustee, Chair of Finance Committee and Chair of Nominating Committee (1987 – 1996), Bryant University;

   172   Honorary Trustee, Bryant University (1996 – present)

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    19

 

 

Name and
Year of Birth		   Position(s)
Held with
Trust		   Term of
Office and
Length
of Time
Served*		    Principal Occupation(s)
During Past Five Years		   Number of
Funds in
Complex
Overseen
by Board
Member		   Other
Directorships
During the Past
Five Years

INDEPENDENT BOARD MEMBERS—continued

Patricia L. Sawyer

(continued)

           

Vice President, American Express (1987 – 1989);

 

Vice President, The Equitable (1986 – 1987); and

 

Strategy Consultant, Booz, Allen & Hamilton (1982 – 1986).

        

John W. Waechter

(1952)

   Board Member   Since 2007   

Attorney, Englander Fischer (2008 – present);

 

Retired (2004 – 2008);

 

Board Member, TST and TIS (2004 – present);

 

Board Member, Transamerica Funds (2005 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Employee, RBC Dain Rauscher (securities dealer) (2004);

 

Executive Vice President, Chief Financial Officer and Chief Compliance Officer, William R. Hough & Co. (securities dealer) (1979 – 2004); and

 

Treasurer, The Hough Group of Funds (1993 – 2004).

   172  

Operation PAR, Inc. (2008 – present);

West Central Florida Council – Boy Scouts of America (2008 – 2013); Remember Honor Support, Inc. (non-profit organization) (2013 – present)

 

* Each Board Member shall hold office until: 1) his or her successor is elected and qualified or 2) he or she resigns, retires or his or her term as a Board Member is terminated in accordance with the Trust’s Declaration of Trust.

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    20

 

 

OFFICERS

The mailing address of each officer is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The following table shows information about the officers, including their year of birth, their positions held with each Trust and their principal occupations during the past five years (their titles may have varied during that period). Each officer will hold office until his or her successor has been duly elected or appointed or until his or her earlier death, resignation or removal.

 

Name and
Year of Birth		   Position    Term of Office
and Length of
Time Served*		   Principal Occupation(s) or Employment
During Past Five Years

Thomas A. Swank

(1960)

   Chairman, Board Member, President and Chief Executive Officer    Since 2012   See Table Above.

Timothy S. Galbraith

(1964)

   Vice President and Chief Investment Officer, Alternative Investments    Since 2012  

Vice President and Chief Investment Officer, Alternative Investments, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2012 – present);

 

Senior Vice President and Chief Investment Officer, Alternative Investments (2012 – present), TAM;

 

Head of Alternative Investment Strategies, Morningstar Associates, LLC (2009 – 2012); and Managing Director, Bear Stearns Asset Management (2001 – 2009).

Dennis P. Gallagher

(1970)

   Vice President, General Counsel and Secretary    Since 2007  

Vice President, General Counsel and Secretary, Transamerica Funds, TST and TIS (2006 – present);

 

Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Vice President, General Counsel and Secretary, TII, (2006 – 2010);

 

Director, Senior Vice President, General Counsel, Operations and Secretary, TAM (2006 – present);

 

Director, Senior Vice President, General Counsel, Chief Administrative Officer and Secretary, TFS (2006 – present);

 

Assistant Vice President, TCI (2007 – present);

 

Director, Deutsche Asset Management (1998 – 2006); and Corporate Associate, Ropes & Gray LLP (1995 – 1998).

Todd R. Porter

(1961)

   Vice President and Chief Investment Officer, Asset Allocation    Since 2012  

Vice President and Chief Investment Officer, Asset Allocation, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2012 – present);

 

Senior Vice President and Chief Investment Officer, Asset Allocation (2012 – present), TAM;

 

Chief Investment Officer, Fund Architects, LLC (2007 – 2012); and

 

Chief Investment Strategist, Morningstar Associates, LLC (1999 – 2006).

Christopher A. Staples

(1970)

  

Vice President and Chief

Investment Officer,

Advisory Services

    Since 2007   Vice President and Chief Investment Officer, Advisory Services (2007 – present), Senior Vice President – Investment Management (2006 – 2007), Vice President – Investment Management (2005 – 2006), Transamerica Funds, TST and TIS;

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    21

 

 

Name and
Year of Birth		   Position    Term of Office
and Length of
Time Served*		   Principal Occupation(s) or Employment
During Past Five  Years

Christopher A. Staples

(continued)

           

Vice President and Chief Investment Officer, Advisory Services, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Vice President and Chief Investment Officer (2007 – 2010); Vice President – Investment Administration (2005 – 2007), TII;

 

Director (2005 – present), Senior Vice President (2006 – present) and Chief Investment Officer, Advisory Services (2007 – present), TAM;

 

Director, TFS (2005 – present); and Assistant Vice President, Raymond James & Associates (1999 – 2004).

Erin E. King

(1976)

   Vice President, Chief Compliance Officer and Anti-Money Laundering Officer    Since 2013  

Vice President, Chief Compliance Officer and Anti-Money Laundering Officer, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2013 – present);

 

Vice President, Chief Compliance Officer and Chief Risk Officer, TAM (2013 – present); Vice President, TFS (2013 – present);

 

Managing Director and Chief Compliance Officer, Guggenheim Partners Investment Management, LLC (2007 – 2013);

 

Regulatory Affairs Compliance Officer, Western Asset Management Company (2004 – 2007);

 

Compliance Officer, Citigroup Asset Management (2002 – 2004); and Compliance Examiner, National Association of Securities Dealers (now, FINRA) (1999 – 2002).

Elizabeth Strouse

(1974)

   Vice President, Treasurer and Principal Financial Officer    Since 2010  

Vice President, Treasurer and Principal Financial Officer (2011 – present), Assistant Treasurer (2010 – 2011), Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF;

 

Vice President and Chief Accounting Officer, TAM and TFS (2009 – present);

 

Director, Fund Administration, TIAA-CREF (2007 – 2009); and

 

Manager (2006 – 2007) and Senior (2003 – 2006) Accounting and Assurance, PricewaterhouseCoopers, LLC.

Sarah L. Bertrand

(1967)

   Assistant Secretary    Since 2009  

Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 – present);

 

Assistant Secretary, TII (2009 – 2010);

 

Assistant Vice President and Director, Legal Administration, TAM and TFS (2007 – present);

 

Assistant Secretary and Chief Compliance Officer, 40|86 Series Trust and 40|86 Strategic Income Fund (2000 – 2007); and Second Vice President and Assistant Secretary, Legal and Compliance, 40|86 Capital Management, Inc. (1994 – 2007).

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    22

 

 

Name and
Year of Birth		   Position    Term of Office
and Length of
Time Served*		   Principal Occupation(s) or Employment
During Past Five  Years

Timothy J. Bresnahan

(1968)

   Assistant Secretary    Since 2009  

Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 – present);

 

Assistant Secretary, TII (2009 – 2010); and Vice President and Senior Counsel, TAM

(2008 – present).

Richard J. Wirth

(1958)

   Assistant Secretary    Since 2013  

Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2013 – present);

 

Director, Senior Vice President, Division General Counsel and Secretary, Transamerica Advisors Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Transamerica Advisors Life Insurance Company of New York (2012 – present);

 

Vice President and Division General Counsel, Transamerica Financial Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Transamerica Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Monumental Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Western Reserve Life Assurance Co. of Ohio (2012 – present);

 

Secretary, Aegon Financial Services Group, Inc. (2012 – present); and

 

Assistant General Counsel, The Hartford (2004 – 2012).

Matthew H. Huckman, Sr.

(1968)

   Tax Manager    Since 2014  

Tax Manager, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2014 – present);

 

Tax Manager, TFS (2012 – present); and

 

Assistant Mutual Fund Tax Manager, Invesco (2007 – 2012).

Maria P. Sell

(1978)

   Assistant Treasurer    Since 2013  

Assistant Treasurer, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2013 – present);

 

Director, Fund Administration, TAM (2012 – present);

 

Vice President, Fund Administration, J.P. Morgan (2010 – 2012); and

 

Assurance Manager, PricewaterhouseCoopers LLP (2006 – 2010).

 

* Elected and serves at the pleasure of the Board of each Trust.

If an officer has held offices for different funds for different periods of time, the earliest applicable date is shown. No officer of the Trust, except for the Chief Compliance Officer, receives any compensation from the Trust.

 

Transamerica Asset Allocation Variable Funds   Annual Report 2013

Page    23

 

 

 

Transamerica Partners Portfolios

 

 

 

        
     I   
       

(This page intentionally left blank)

Transamerica Partners High Quality Bond Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

While 2013 will certainly be categorized as a challenging year for fixed income investors, returns for most investment grade fixed income indices were positive for the first four months of 2013. The market lacked any real catalysts, so spread movements and interest rate changes were limited. Accommodative monetary policy and strong investor demand were dominant themes as they provided a temporary backstop for fixed income spreads.

As we moved into the spring, however, things became very challenging for fixed income markets. The U.S. economy began strengthening and the housing market showed signs of improvement. U.S. Federal Reserve (“Fed”) tapering expectations caused spreads to widen, volatility to spike, and U.S. Treasury yields to rise dramatically. In a departure from their usual relationship, the increase in U.S. Treasury yields during the second quarter coincided with a widening of credit spreads, as investors became fearful of bond outflows.

Obsession with Fed tapering was once again the dominant factor impacting fixed income returns during the third quarter, but this time with the opposite effect. Following the dramatic spread widening in May and June, markets normalized in July as market participants appeared less concerned about the effects of reduced Quantitative Easing. The Fed’s decision not to reduce their monthly bond purchases, based on their desire to see more evidence of improved economic conditions, led to a broad based rally. Fixed income returns ended the quarter in positive territory with the standout performers being high yield and residential home equity.

The euphoria was short-lived as U.S. Treasury yields again moved higher in November and December. With additional signs of economic recovery and a decline in the unemployment rate, markets considered a near-term taper more likely. Outgoing U.S. Federal Reserve Chairman Ben Bernanke and his likely successor, Vice-Chair Janet Yellen, guided the Federal Open Market Committee (“FOMC”) through their final meeting of the year on December 17-18. Unlike earlier in the year, this time, the Fed did act, announcing it would begin tapering in December with a plan to reduce their monthly bond purchases from $85 billion to $75 billion. This news, together with additional positive economic reports, caused the yield on the 10-year U.S. Treasury note to surpass 3% at year-end.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners High Quality Bond Portfolio returned 0.41%. By comparison, its benchmark, the Bank of America Merrill Lynch U.S. Corporate & Government 1-3 Years Index, returned 0.70%.

STRATEGY REVIEW

We made several shifts during the year to position for higher rates and wider spreads. Holdings of mortgage-backed securities increased from 18.5% to 29.8%, primarily in agency reverse mortgages (+6%) and commercial mortgage-backed securities (“CMBS”) (+5%). On the other hand, the allocation to the corporate sector fell by approximately 3% to 34%. Within corporates, we added to the real estate investment trust (“REIT”) holdings in expectation of tighter spreads.

In 2013, duration positioning was important given the volatility in interest rates. Anticipating higher rates, we kept the average portfolio duration shorter than the benchmark throughout the year. At December 31, 2013, Transamerica Partners High Quality Bond Portfolio’s (“the Portfolio”) duration was 1.62 years, versus 1.89 years for the Bank of America Merrill Lynch U.S. Corporate & Government 1-3 Years Index. Curve positioning was also critical. Performance was hurt during May and June when interest rates more than doubled in the three to five year part of the U.S. Treasury curve. In response, the strategy emphasized purchases of securities with maturities of three years or less.

The Portfolio’s yield advantage over the benchmark was more than enough to compensate for higher interest rates and the Portfolio’s curve exposure. Sector weightings contributed 0.63% of total return during the year, while security selection and duration positioning detracted by 0.35% and 0.21%, respectively. Corporates performed best, followed by residential mortgage-backed securities (“RMBS”), and CMBS. Several older vintage CMBS holdings were the best performers during 2013. An underweight to Treasuries and Agencies contributed 0.16% of total return.

Douglas A. Kelly, CFA

Peter S. Kaplan, CFA

Co-Portfolio Managers

Merganser Capital Management, Inc.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    1

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

As economic data continued its modest improvement from the onset of 2013, global markets were fixated on U.S. tapering. In the U.S., rates were pressured from early January, but resolution of fiscal negotiations in Washington and lower headline risk in Europe caused fixed income to rally from late-February to April. The U.S. 10-year yield reached its lows for the year in early May. European sovereign yields also rallied as early European bank repayment of the European Central Banks (“ECB’s”) three-year long-term refinancing operations loans signaled a significant improvement in Eurozone balance sheets since the height of the crisis. In March, Japanese Prime Minister Shinzo Abe exhibited his commitment to spurring higher inflation by nominating Haruhiko Kuroda as the new governor of the Bank of Japan, whose favor for aggressive stimulus helped to depreciate the Japanese yen (“JPY”) significantly.

The tone for global fixed income markets changed dramatically in May during the Joint Economic Committee hearings when U.S. Federal Reserve (“Fed”) Chairman Ben Bernanke first alluded to beginning a taper before year-end, which was later reasserted in the June Federal Open Market Committee meetings. In Europe, the ECB responded to price weakness and struggling growth in May by cutting the benchmark rate 0.25% to 0.50% on the back of ECB President Mario Draghi’s expressed readiness to move deposit rates negative if warranted. In April, Governor Kuroda announced changes in the monetary policy framework to demonstrate the Bank of Japan’s commitment to spur reflation by announcing a target inflation rate of 2% within two years.

At the start of the third quarter global inflation markets reversed their sharp underperformance from the second quarter, in part due to support from global central banks. As the quarter progressed, performance of inflation-linked bonds became more mixed. Through mid-September, markets were adjusting to a Fed that was expected to commence winding down its asset purchase program, but decision to not taper and the withdrawal of Larry Summers from consideration for Chairman of the Fed caught investors off-guard. In Europe, despite the ECB’s introduction of forward guidance as a new communication tool in a bid to distance itself from the U.S. Fed and rising Treasury yields, economic data continued to push risk-free yields higher.

Not surprisingly, global central bank policy action continued to dominate price action across inflation markets in the fourth quarter. Rates were volatile as investors digested the juxtaposing forces of strong economic data, dovish language from the Fed, and the possibility of tapering. In December, the Fed announced that they would reduce their asset purchase program by $10 billion split equally between Treasuries and mortgages. In Europe, the major news in the Eurozone over the quarter was the rate cut of 0.25% from 0.50% announced by the ECB in November. Markets were taken by surprise on the announcement and this action, combined with improving growth contribution from peripheral economies, contributed to continued peripheral spread compression.

The global inflation-linked market outperformed the U.S. Treasury Inflation-Protected Securities (“TIPS”) market, as U.S. TIPS showed greater sensitivity to Fed policy. While the U.K. Gilt market also backed up as monetary policy reversed course, European inflation markets were supported by the ECB’s accommodative stance. Excluding the U.K., given duration fears, longer duration assets tended to underperform the rest of the curve across global markets.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Inflation-Protected Securities Portfolio returned (8.26)%. By comparison, its benchmark, the Barclays U.S. Treasury Inflation Protected Securities Index, returned (8.60)%.

STRATEGY REVIEW

Throughout most of the year, and particularly in the period leading up to May-June 2013, the fund was underweight real rates in the 5 to 10-year sectors of the TIPS curve. The fund benefited from this positioning in May and June, as Fed tapering fears and weak inflation data pressured the TIPS market tremendously. While being underweight breakeven inflation was the dominant expression through June, the significant re-pricing of real rates afforded the fund attractive entry points to express a more constructive view on TIPS. In the latter half of the year, the fund added longs in forward U.S. real rates (i.e. 20-year real rate, 10-years forward) as an expression of fundamental value. We believe this position offers attractive convexity in a modestly growing domestic economy.

For security selection, the fund was managed to be short off-the-run TIPS versus on-the-run TIPS, favoring the most recently issued TIPS across the curve. It has held this position since the beginning of 2013, as the changing regulatory environment and heightened pressure on dealer inventory caused significant underperformance of off-the-run issues versus their on-the-run counterparts.

In the non-United States dollar (“USD”) space, the fund’s allocation to Italian inflation-linked bonds, primarily in the two to five year portion of the curve, has contributed to performance. As the European crisis has mended and tail risk has been largely removed, there has been significant spread compression between peripheral and core issues. Despite headline political risk that had emerged

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    2

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

(unaudited)

 

STRATEGY REVIEW (continued)

 

throughout various points in the year, Italian linkers showed strong overall performance, especially in the latter half of the year. The fund was underweight nominal U.K. Gilts as an expression that safe-haven flows would reverse as the Eurozone mends, and result in reduced institutional sponsorship. Stronger data materialized for the U.K. in the second quarter, boosting investor sentiment and leading markets to price out further Bank of England asset purchases. The strategy implemented four currency trades: short JPY vs. USD, short EU euro (“EUR”) vs. USD, short Australian dollar (“AUD”) vs. Norwegian krone (“NOK”), and short Swiss franc (“CHF”) vs. EUR. Various derivatives, including futures, forwards, options, and swaps, were utilized to attain desired portfolio positioning and each contributed positively to performance.

Martin Hegarty

Brian Weinstein

Co-Portfolio Managers

BlackRock Financial Management, Inc.

Please refer to page 21 for index descriptions.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    3

Transamerica Partners Core Bond Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

The year 2013 ended as it began, with the theme of uncertainty driven by global policy agendas. While 2012 ended with contention around a debt ceiling debate, potentially causing default in the world’s largest economy, much of 2013 was dominated by uncertainty around the U.S. Federal Reserve (“Fed”) policy and its impact around the globe and across asset classes. Despite this uncertainty, both 2012 and 2013 delivered outsized equity returns, bolstering a string of positive domestic equity yearly returns that now stretches into its fifth year in total return terms.

U.S. investors will remember 2013 as a year dominated by Fed policy. It was late 2012 when markets believed the Fed may start to reign in its monthly quantitative easing bond buying program (“QE”) only to have these expectations sidelined in light of the debt ceiling debate and weakening global data that hinted at an economic slowdown, rather than an acceleration that would justify tapering. With a last minute budget agreement, imminent U.S. default was avoided and despite a less than favorable economic environment, global developed equities, led by the U.S., rallied strongly in the first quarter of 2013 and throughout much of the year, with U.S. large caps returning over 32% for the year while small caps came in even stronger at nearly 39%.

Meanwhile, Europe, Japan, and the broader Europe, Australasia, Far East (“EAFE”) universe were also benefitting from easy central bank policy. Europe, recovering from the worst economic slowdown in decades driven by debt, banking and competitiveness crises in the peripheral countries, experienced its own bumps and bruises during the year. While not out of the woods, outside of a mid-year threat from Cyprus, Europe ultimately has ended the year on sounder footing and is forecast to contribute positively to global gross domestic product growth in 2014 and is attracting favorable investor attention given relatively attractive valuations and ongoing easy monetary policy.

Japan’s 2013 revival may be the most dramatic. Continuing reforms started in 2012 aimed at revitalizing the country’s faltering and deflationary domestic economy found traction in 2013. Bank of Japan President Haruhiko Kuroda and Japanese Prime Minister Shinzo Abe’s three pronged approach of monetary, fiscal and structural reform took hold, sending the domestic equity markets up over 50% in local terms and subsequently weakening the yen and forcing investors out of bonds and into risk assets, while the broader MSCI EAFE Index ended the year up a very respectable return of 23.29%.

Emerging market equities, on the other hand, viewed by economists as a potential bright spot in 2013 after closing out 2012 on a positive trajectory driven by improving economic data and investor sentiment, sold off on inflation concerns, fiscal imbalances, and fear of the effect of tighter global monetary policy. It would be until the third quarter before emerging equities posted another positive quarterly return, with the MSCI Emerging Markets Index returning (2.27)% for the year.

The impact of Fed policy and uncertainty were not confined to the equity markets, as fixed income markets around the globe kept investors on edge throughout the year. In the U.S., the push and pull around tapering expectations was the key driver of fixed income returns. Lackluster economic data along with slow job growth and benign inflation kept tapering expectations off the table for much of the year and drove 10-year interest rates as low as 1.66% in May. Rate volatility increased in early September when the Fed began to speculate that data had improved enough to begin tapering before the end of the year. Ultimately, data improved enough to compel the Fed to begin tapering in December, reducing their purchase program by $10 billion per month.

Extended forward guidance and a commitment to keep the Fed Funds rate at record lows into 2015 helped rates remain relatively orderly despite the taper announcement, with the 10-year U.S. Treasury ending the year at 3.04%. Credit markets, including high yield and loans, outperformed core assets as the search for yield led to tightening credit spreads during the year. Corporations took advantage of the strong demand, issuing record amounts of high yield and loans. Similar to their equity counterparts, emerging market bonds underperformed during the year.

Despite the persistent uncertainty throughout 2013, looking back, markets remained relatively orderly — with the exception of some pockets of stress — and volatility remained generally subdued. Realized volatilities on nearly all major asset classes were below long-term trends, while sharpe ratios (i.e., risk-adjusted returns) for many equity sectors were the highest they’ve been in decades. Loose monetary policy and the low but increasing rate environment outweighed the potential headwinds, forcing investors into risk assets and out of core fixed income.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Core Bond Portfolio (“the Portfolio”) returned (0.96)%. By comparison, its benchmark, the Barclays U.S. Aggregate Bond Index, returned (2.02)%.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    4

Transamerica Partners Core Bond Portfolio

 

 

(unaudited)

 

STRATEGY REVIEW

For the 12-month period ended December 31, 2013, the Portfolio outperformed its benchmark, the Barclays U.S. Aggregate Bond Index. Throughout the 12-month period, the Portfolio was overweight relative to its benchmark index in non-government spread sectors and underweight in U.S. government-related sectors. The Portfolio benefited from exposure to high quality securitized sectors such as commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”). The shrinking universe of high quality product combined with investor demand for yield was supportive of the continued strong performance in these sectors. The Portfolio’s positions in non-agency mortgage-backed securities (“MBS”) also contributed positively towards performance, particularly in light of the recovering U.S. housing market. The Portfolio also benefited from its exposure to corporate credit and non-U.S. dollar-denominated securities, particularly euro-denominated sovereign and credit securities. The Portfolio’s allocations to U.S. Treasury securities, U.S. agency debentures and U.S. agency MBS detracted from performance.

We actively managed duration (sensitivity to interest rate movements) throughout the 12-month period. Relative to the benchmark index, the Portfolio maintained a short-to-neutral duration bias for most of the year. The overall impact of duration and curve positioning on performance for the 12-month period was neutral. We tactically managed corporate credits, taking advantage of opportunities in the industrials and high yield sectors. We added to positions in CMBS and ABS, while maintaining liquidity in the Portfolio through core allocations to agency MBS and U.S. Treasuries.

At period end, the Portfolio was generally underweight relative to the Barclays U.S. Aggregate Bond Index in government-owned/government-related sectors in favor of non-government spread sectors. Within spread sectors, the Portfolio was most significantly overweight in CMBS and ABS. Within the government sectors, the Portfolio was underweight U.S. Treasuries and agency debentures and held a neutral weighting in agency MBS. The Portfolio also held an out-of-index allocation to non-agency residential MBS and high yield corporate credit. The Portfolio ended the period with a neutral duration relative to the benchmark index.

The Portfolio held derivatives during the period as a part of the investment strategy. Derivatives are used by the Portfolio management team as a means to hedge and/or take outright views on interest rates, credit risk and/or foreign exchange positions in the Portfolio. Options and swaps contributed to performance, while futures and forwards detracted from returns.

Bob Miller

Rick Rieder

Co-Portfolio Managers

BlackRock Financial Management, Inc.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    5

Transamerica Partners High Yield Bond Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

Thanks to the combination of moderate economic growth, the improving health of many high-yield companies’ balance sheets, a low default rate and favorable market technical factors, high yield bonds posted solid gains for the year ended December 31, 2013.

The fundamental credit backdrop for high-yield issuers remained solid, with most company balance sheets benefiting from solid earnings growth, previous efforts to reduce debt and the ability to refinance in a lower rate environment. Default rates continue to remain benign.

Although increasingly strong economic reports made a near term taper — in which the U.S. Federal Reserve (“Fed”) could curtail its bond buying stimulus programs — more likely and renewed the specter of higher interest rates, it also fueled investors’ appetite for risk. As a result, high-yield bonds outpaced higher quality securities during the fourth quarter. Furthermore, high yield bonds — with their lower sensitivity to interest rate risk — held growing appeal to investors worried about higher interest rates. At the same time, the supply of high-yield bonds remained steady in the fourth quarter leading to a record yearly volume.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners High Yield Bond Portfolio (“the Portfolio”) returned 7.48%. By comparison, its benchmark, the Bank of America Merrill Lynch High Yield Master II Index, returned 7.42%.

STRATEGY REVIEW

The Portfolio finished off the year strong. Credit selection was the main driver of returns for the year and this was especially true in the technology, gaming, and healthcare sectors of the market. The Portfolio also saw strong returns from its mid to longer range duration bonds (2-5 year and 5-10 year) as holdings in these categories were the top relative performers versus the Bank of America Merrill Lynch High Yield Master II Index (“the Index”) on a duration basis. When looking at credit ratings, CCC rated securities led the way for the Portfolio on both an absolute and relative performance standpoint. The Portfolio’s B rated securities also performed well as they were the second best performing rating class for the Portfolio relative to the Index. In terms of sector positioning, the Portfolio’s top sectors remained the same quarter over quarter with energy, healthcare and technology being the top three. The Portfolio did experience some performance detractors as well and they were mostly in the building materials and banks & thrifts segments of the market, as holdings in these sectors lagged the Index. The Portfolio’s BB rated positions also took away from relative performance as they returned less than the Index.

Linda Carter, CFA

Michael W. Weilheimer, CFA

Co-Portfolio Managers

Eaton Vance Management

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    6

Transamerica Partners Balanced Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

BlackRock Financial Management, Inc.

The year 2013 ended as it began, with the theme of uncertainty driven by global policy agendas. While 2012 ended with contention around a debt ceiling debate, potentially causing default in the world’s largest economy, much of 2013 was dominated by uncertainty around the U.S. Federal Reserve (“Fed”) policy and its impact around the globe and across asset classes. Despite this uncertainty, both 2012 and 2013 delivered outsized equity returns, bolstering a string of positive domestic equity yearly returns that now stretches into its fifth year in total return terms.

U.S. investors will remember 2013 as a year dominated by Fed policy. It was late 2012 when markets believed the Fed may start to reign in its monthly quantitative easing bond buying program (“QE”) only to have these expectations sidelined in light of the debt ceiling debate and weakening global data that hinted at an economic slowdown, rather than an acceleration that would justify tapering. With a last minute budget agreement, imminent U.S. default was avoided and despite a less than favorable economic environment, global developed equities, led by the U.S., rallied strongly in the first quarter of 2013 and throughout much of the year, with U.S. large caps returning over 32% for the year while small caps came in even stronger at nearly 39%.

Meanwhile, Europe, Japan, and the broader Europe, Australasia, Far East (“EAFE”) universe were also benefitting from easy central bank policy. Europe, recovering from the worst economic slowdown in decades driven by debt, banking and competitiveness crises in the peripheral countries, experienced its own bumps and bruises during the year. While not out of the woods, outside of a mid-year threat from Cyprus, Europe ultimately has ended the year on sounder footing and is forecast to contribute positively to global gross domestic product growth in 2014 and is attracting favorable investor attention given relatively attractive valuations and ongoing easy monetary policy.

Japan’s 2013 revival may be the most dramatic. Continuing reforms started in 2012 aimed at revitalizing the country’s faltering and deflationary domestic economy found traction in 2013. Bank of Japan President Haruhiko Kuroda and Japanese Prime Minister Shinzo Abe’s three pronged approach of monetary, fiscal and structural reform took hold, sending the domestic equity markets up over 50% in local terms and subsequently weakening the yen and forcing investors out of bonds and into risk assets, while the broader MSCI EAFE Index ended the year up a very respectable return of 23.29%.

Emerging market equities, on the other hand, viewed by economists as a potential bright spot in 2013 after closing out 2012 on a positive trajectory driven by improving economic data and investor sentiment sold off on inflation concerns, fiscal imbalances, and fear of the effect of tighter global monetary policy. It would be until the third quarter before emerging equities posted another positive quarterly return, with the MSCI Emerging Markets Index returning (2.27)% for the year.

The impact of Fed policy and uncertainty were not confined to the equity markets, as fixed income markets around the globe kept investors on edge throughout the year. In the U.S., the push and pull around tapering expectations was the key driver of fixed income returns. Lackluster economic data along with slow job growth and benign inflation kept tapering expectations off the table for much of the year and drove 10-year interest rates as low as 1.66% in May. Rate volatility increased in early September when the Fed began to speculate that data had improved enough to begin tapering before the end of the year. Ultimately, in December data improved enough to compel the Fed to announce tapering beginning in January reducing their purchase program by $10 billion per month.

Extended forward guidance and a commitment to keep the Fed Funds rate at record lows into 2015 helped rates remain relatively orderly despite the taper announcement, with the 10-year U.S. Treasury ending the year at 3.04%. Credit markets, including high yield and loans, outperformed core assets as the search for yield led to tightening credit spreads during the year. Corporations took advantage of the strong demand, issuing record amounts of high yield and loan. Similar to their equity counterparts, emerging market bonds underperformed during the year.

Despite the persistent uncertainty throughout 2013, looking back, markets remained relatively orderly — with the exception of some pockets of stress — and volatility remained generally subdued. Realized volatilities on nearly all major asset classes were below long-term trends, while sharpe ratios (i.e., risk-adjusted returns) for many equity sectors were the highest they’ve been in decades. Loose monetary policy and the low but increasing rate environment outweighed the potential headwinds, forcing investors into risk assets and out of core fixed income.

J.P. Morgan Investment Management Inc.

The S&P 500® finished 2013 with a return of 32.39%, posting its best performance in over a decade. In 2013, investors were bracing themselves for the “worst-case scenario” with every potential crisis. Headlines were dominated by uncertainty over the economic impact

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    7

Transamerica Partners Balanced Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT (continued)

 

of the U.S. fiscal cliff, a fragile Italian government, a potential U.S. military attack on Syria, and a U.S. government shutdown. These and other potential headwinds were favorably resolved. Given the reduced uncertainty, U.S. equity markets rallied throughout the year with only June and August posting negative returns.

During 2013’s first few months, investors were skeptical about the prospects for global growth. U.S. economic data pointed towards moderation as the March employment report and several of the regional manufacturing surveys for April were below expectations. Headlines from overseas also signaled weakening economic activity. Chinese first-quarter gross domestic product (“GDP”) grew 7.7% year-over-year, down from the 7.9% year-over-year advance for the fourth quarter of 2012. In Europe, manufacturing Purchasing Managers Indexes (“PMIs”) remained stuck in contraction.

Chatter about when the Fed would taper the pace of its bond-buying program intensified in May. U.S. Fed Chairman Ben Bernanke, in his address to the Joint Economic Committee of Congress stated that asset purchases could be reduced over the next few meetings if data indicated it would be prudent to do so. The S&P 500® saw its largest correction of the year, from May 21st to June 24th, as the index declined 5.58%. The fixed income markets were even more volatile as the yield on the U.S. 10-year Treasury rose from 1.93% to 2.54%. The back up in bond yields brought about an intense intra-market rotation as “bond-proxy” equities, such as utilities, telecommunication services and real estate investment trusts sold off significantly while economically sensitive sectors rallied. The cyclical leadership continued throughout the year.

While markets got off to a volatile start for the year’s final quarter, they rallied into year-end. In December, the Fed announced that it would reduce the pace of asset purchases from $85 billion per month to $75 billion per month, starting in January. Data releases were also supportive of markets giving strong signals that the U.S. and global economy was accelerating going into 2014. The final estimate of third-quarter U.S. GDP increased at an annual rate of 4.1%, the largest quarterly growth rate since the fourth quarter of 2011. Overseas, manufacturing PMI surveys for the Eurozone, United Kingdom, and Japan were in expansion territory for several consecutive months.

Small-cap stocks, measured by the Russell 2000® Index, gained 38.82%, outperforming the 32.39% advance for the S&P 500®. Growth outperformed value across the large-, mid- and small-cap categories. Small-cap growth as measured by the Russell 2000® Growth Index was the top-performing equity style in 2013, returning 43.30%.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Balanced Portfolio (“the Portfolio”) returned 18.33%. By comparison, its primary and secondary benchmarks, the Barclays U.S. Aggregate Bond Index and the S&P 500®, returned (2.02)% and 32.39%, respectively.

STRATEGY REVIEW

BlackRock Financial Management, Inc.

For the 12-month period ended December 31, 2013, the Portfolio outperformed its benchmark, the Barclays U.S. Aggregate Bond Index. Throughout the 12-month period, the Portfolio was overweight relative to its benchmark index in non-government spread sectors and underweight in U.S. government-related sectors. The Portfolio benefited from exposure to high quality securitized sectors such as commercial mortgage-backed securities (“CMBS”) and asset-backed securities (“ABS”). The shrinking universe of high quality product combined with investor demand for yield was supportive of the continued strong performance in these sectors. The Portfolio’s positions in non-agency mortgage-backed securities (“MBS”) also contributed positively towards performance, particularly in light of the recovering U.S. housing market. The Portfolio also benefited from its exposure to corporate credit and non-U.S. dollar-denominated securities, particularly euro-denominated sovereign and credit securities. The Portfolio’s allocations to U.S. Treasury securities, U.S. agency debentures and U.S. agency MBS detracted from performance.

We actively managed duration (sensitivity to interest rate movements) throughout the 12-month period, relative to the benchmark index, the Portfolio maintained a short-to-neutral duration bias for most of the year. The overall impact of duration and curve positioning on performance for the 12-month period was neutral. We tactically managed corporate credits, taking advantage of opportunities in the industrials and high yield sectors. We added to positions in CMBS and ABS, while maintaining liquidity in the Portfolio through core allocations to agency MBS and U.S. Treasuries.

At period end, the Portfolio was generally underweight relative to the Barclays U.S. Aggregate Bond Index in government-owned/government-related sectors in favor of non-government spread sectors. Within spread sectors, the Portfolio was most significantly

 

Transamerica Partners Portfolios   Annual Report 2013

Page    8

Transamerica Partners Balanced Portfolio

 

 

(unaudited)

 

STRATEGY REVIEW (continued)

 

overweight in CMBS and ABS. Within the government sectors, the Portfolio was underweight U.S. Treasuries and agency debentures and held a neutral weighting in agency MBS. The Portfolio also held an out-of-index allocation to non-agency residential MBS and high yield corporate credit. The Portfolio ended the period with a neutral duration relative to the benchmark index.

The Portfolio held derivatives during the period as a part of the investment strategy. Derivatives are used by the Portfolio management team as a means to hedge and/or take outright views on interest rates, credit risk and/or foreign exchange positions in the Portfolio. Derivatives had a positive impact on performance.

J.P. Morgan Investment Management Inc.

Stock selection in the pharmaceutical/medical technology, basic materials and retail sectors contributed to performance, while stock selection in the hardware and semiconductors, health services and systems and media sectors detracted.

Among individual stocks, biotechnology company Celgene remains one of our top long-term positions and continues to contribute to performance as its pipeline of cancer treatment drugs enjoy success in nearly all of their clinical readouts. Additionally, Celgene’s existing cancer treatment drugs, Abraxane and Revlimid, continue to be first-line therapies for breast cancer and multiple-myeloma, respectively. Within pharmaceutical/medical technology, an overweight position in Biogen IDEC added value for the year. The company received market exclusivity for multiple sclerosis drug Tecfidera in November, paving the way for its launch in markets that could account for a large proportion of future sales. As we await more clarity on the firm’s hemophilia business, we believe there is a lot of upside potential largely due to strong pipeline/launches expected in 2014. Within the retail sector, shares of global apparel company VF Corp. helped results during the fourth quarter as it reported a third-quarter earnings beat. The company continued to rally into the latter part of the year on strong growth across most of its brands, including Timberland post-merger, as expectations of a colder-than-normal winter came to fruition.

Within the pharmaceutical/medical technology sector, an underweight position in Gilead Sciences hurt performance. Shares rose after strong drug results, including Gilead’s phase III trial for its hepatitis C pill. However, we remain negative on the name due to its weak long-term pipeline and looming patent cliff. In industrial cyclicals, an underweight in Boeing weighed on returns. Boeing had an eventful year, announcing several leadership changes and two new aircraft launches, and demonstrated strong operational performance. However, we continue to believe that Boeing is building too many planes in a shifting interest-rate and fuel environment, so our long-term thesis remains intact. Within semiconductors, an overweight in Broadcom detracted from performance in the fourth quarter. The company was hurt by its wireless business, which has underperformed due to design losses in connectivity and no clear progress in developing an LTE modem. We maintain a modestly positive view of Broadcom’s broadband and networking businesses (70% of operating income), and believe that the wireless weakness is fully discounted in the current valuation.

Futures are used to hedge cash positions which are less than 5% of the Portfolio’s market value. The positions had a negligible impact on performance over the period.

 

Bob Miller

Rick Rieder

Co-Portfolio Managers

BlackRock Financial Management, Inc.

Terance Chen, CFA

Tim Snyder, CFA

Raffaele Zingone, CFA

Co-Portfolio Managers

J.P. Morgan Investment Management Inc.

 

 

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    9

Transamerica Partners Large Value Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

Equity markets ended the year on a high note — it was the U.S. stock market’s best year since 1997. Size and style mattered: small caps beat large caps and growth edged out value. In the broad market, the best performing sectors this year were consumer discretionary, health care, and industrials, while the worst performers were utilities and telecommunications.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Large Value Portfolio (“the Portfolio”) returned 38.08%. By comparison, its primary and secondary benchmarks, the Russell 1000® Value Index and the S&P 500®, returned 32.53% and 32.39%, respectively.

STRATEGY REVIEW

The Portfolio invests in a broadly diversified selection of large-cap stocks using our disciplined investment approach — we are fully invested in U.S. equities, avoid broad sector bets, and take only modest industry-level and stock-specific bets. Our goal is to outperform the benchmark with incremental gains across many holdings. Using bottom-up stock selection, we evaluate companies relative to their industry peers using three broad categories of measures: value, management, and momentum. Value refers to the somewhat traditional ratios of price to fundamental value; management means we look for evidence that a company’s management team has, and will, continue to emphasize earning power; and momentum indicates when stocks might begin to rise toward full valuation. As we search for opportunities, we keep a sharp eye on minimizing transaction costs, helping us maximize profits in our stock-selection effort.

Over the course of 2013, our stock selection model fired on all cylinders, with all three categories of attractiveness contributing to our positive return. Value was aided by our focus on companies that are attractive on the basis of price-to-sales. Management was supported by our efforts to quantify management efficiency and outlook. Momentum was helped by factors measuring sentiment and stability, especially among companies in the health care and consumer staples sectors. A significant portion of our results can be attributed to stock selection in the biotechnology industry, where non-benchmark holdings like United Therapeutics and Biogen Idec outperformed.

Over the course of the year, the combination of valuation, risk, and transaction costs guided the Portfolio toward the mid-cap segment of our large-cap universe, which contributed to our overall bottom-line results.

We remain firm in our conviction that superior results can be achieved through a consistent, systematic approach that focuses on low-priced companies with proven management and earnings power.

Theodore R. Aronson

Stefani Cranston

Gina Marie N. Moore

Martha E. Ortiz

Gregory J. Rogers

R. Brian Wenzinger

Christopher J. W. Whitehead

Co-Portfolio Managers

Aronson Johnson Ortiz, LP

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    10

Transamerica Partners Large Core Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

Equity markets ended the year on a high note — it was the U.S. stock market’s best year since 1997. Size and style mattered: small caps beat large caps and growth edged out value. In the broad market, the best performing sectors this year were Consumer Discretionary, Health Care, and Industrials, while the worst performers were Utilities and Telecommunications.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Large Core Portfolio (“the Portfolio”) returned 37.28%. By comparison, its primary and secondary benchmarks, the Russell 1000® Index and the S&P 500®, returned 33.11% and 32.39%, respectively.

STRATEGY REVIEW

The Portfolio invests in a broadly diversified selection of large-cap stocks using our disciplined investment approach — we are fully invested in U.S. equities, avoid broad sector bets, and take only modest industry-level and stock-specific bets. Our goal is to outperform the Russell 1000® Index with incremental gains across many holdings. Using bottom-up stock selection, we evaluate companies relative to their industry peers using three broad categories of measures: value, management, and momentum. Value refers to the somewhat traditional ratios of price to fundamental value; management means we look for evidence that a company’s management team has, and will, continue to emphasize earning power; and momentum indicates when stocks might begin to rise toward full valuation. As we search for opportunities, we keep a sharp eye on minimizing transaction costs, helping us maximize profits in our stock-selection effort.

Over the course of 2013, our stock selection model fired on all cylinders, with all three categories of attractiveness contributing to alpha. Value led the way, supported by our focus on companies that are attractive on the basis of price-to-sales. Management was aided by our efforts to quantify management efficiency and outlook. Momentum was helped by our focus on earnings estimates revision and sentiment. A significant portion of our results can be attributed to stock selection in the health care sector, where overweight positions in Biogen Idec and Celgene outperformed.

Over the course of the year, the combination of valuation, risk, and transaction costs guided the Portfolio toward the mid-cap segment of our large-cap universe, which contributed to our overall bottom-line results.

We remain firm in our conviction that superior results can be achieved through a consistent, systematic approach that focuses on low-priced companies with proven management and earnings power.

Theodore R. Aronson

Stefani Cranston

Gina Marie N. Moore

Martha E. Ortiz

Gregory J. Rogers

R. Brian Wenzinger

Christopher J. W. Whitehead

Co-Portfolio Managers

Aronson Johnson Ortiz, LP

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    11

Transamerica Partners Large Growth Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

Jennison Associates LLC

The U.S. equity market advanced strongly in the 12 months ended December 31, 2013, reflecting a more optimistic economic outlook. Housing and employment indicators improved, consumer confidence rose, and strength in corporate profits continued. Conditions in Europe appeared to stabilize, relieving earlier worries of sustained deterioration. In China, economic growth slowed, but to levels sufficiently expansionary, to give investors conviction that global gross domestic product, although moderating, remained in an expansionary mode. Concerns that the U.S. Federal Reserve (“Fed”) would begin scaling back its quantitative easing program took a toll in early summer. However, the market soon refocused on individual company fundamentals and showed renewed appreciation for companies with strong growth.

Wellington Management Company, LLP

Global equities surged in the first quarter of 2013 as solid corporate earnings results and favorable global liquidity dynamics lifted enthusiasm for stocks. Further monetary easing by the Bank of Japan and a steadily improving U.S. economy also fueled the rally, which continued at a more modest pace in the second quarter. Solid gains in April and the first half of May paused following comments by U.S. Fed Chairman Ben Bernanke, which suggested the Fed might begin to slow quantitative easing sooner than investors anticipated. Nonetheless, equities resumed their ascent in the third quarter as the surprising “no taper” decision by the Federal Open Market Committee eased near-term concerns about rapidly rising interest rates derailing the economic recovery. Additionally, accommodative policy from the European Central Bank, along with encouraging economic data from China, further evidence of a European economic recovery, and solid corporate earnings contributed to a broad-based global equity rally that extended through the end of the year. In December, the year ended with an optimistic tone as investors cheered the elimination of two market overhangs: the timing of Fed tapering, and the threat of another government shutdown in January of the following year.

In this environment, all ten sectors in the Russell 1000® Growth Index posted positive returns for the period. The health care (+48.2%) and consumer discretionary (+44.5%) sectors posted the largest gains, while the telecom Services (+17.4%) and consumer staples (+24.0%) sectors lagged.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Large Growth Portfolio (“the Portfolio”) returned 35.32%. By comparison, its primary and secondary benchmarks, the Russell 1000® Growth Index and the S&P 500®, returned 33.48% and 32.39%, respectively.

STRATEGY REVIEW

Jennison Associates LLC

The Portfolio is built from the bottom up, based on the fundamentals of individual companies. Consumer discretionary positions, which hold a major weight in the Portfolio, were strong contributors to return as both an overweight and stock selection were beneficial. Amazon.com accelerated its business investment to drive robust longer-term growth not only in its core retail business but through the proliferation of digital commerce via the mobile market. Substantial revenue growth reflected its efforts. Gross bookings growth increased at online travel company Priceline.com, which we believe is poised to benefit from the long-term shift to online travel spending.

Health care holdings, in particular biopharmaceutical companies, which held a meaningful weight in the Portfolio, were strong contributors to return. The Food and Drug Administration (“FDA”) approved Biogen Idec’s Tecfidera for multiple sclerosis. We believe the drug’s ease of use could support broad adoption and potential market leadership. The FDA also approved Gilead Sciences’ Sovaldi for the treatment of Hepatitis C. Many patients infected with the liver virus now will be treated with pills only, obviating injections of interferon, which often has debilitating side effects. In our opinion, Gilead’s oncology pipeline also looks promising.

Stock selection was beneficial in information technology as well. MasterCard’s strong revenue and earnings were driven by strong growth in global dollar volume and processed transactions. We expect MasterCard to continue to benefit from the long-term shift from cash to electronic credit/debit transactions. Google performed well, reflecting its competitive position, strong advertising revenue, and YouTube monetization opportunities. LinkedIn’s revenue and earnings exceeded consensus expectations significantly. The company is a leading global online professional network that provides what we consider unique access to a database of active and passive job

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    12

Transamerica Partners Large Growth Portfolio

 

 

(unaudited)

 

STRATEGY REVIEW (continued)

 

candidates. Facebook, whose ad revenue advanced strongly, driven by gains in mobile, was also one of the top contributors. We view Facebook to be the world’s preeminent Internet-based social network with a dominance no rival can easily match, and a network effect that creates formidable barriers to entry.

Other information technology holdings detracted from performance. Rackspace Hosting’s difficulties were largely related to changes in its sales force structure and concerns that its business is being commoditized. Rackspace provides Web and cloud-hosting services to more than 180,000 enterprise customers. VMware was hurt by uncertainty about the timing and pace of new product revenue acceleration.

In industrials, Boeing contributed to performance as it reported strong earnings, revenue, cash flow, and margins. Of particular note, the profitability of the company’s 787 Dreamliner improved, driven by an accelerated production rate.

Portfolio holdings in energy and materials posted double-digit returns but lagged the returns of the benchmark sectors.

Wellington Management Company, LLP

The strategy’s investment process leverages the extensive research resources of Wellington Management, and emphasizes a balance of growth, quality, and valuation criteria in selecting stocks. We utilize risk analysis tools to help maintain the Portfolio’s emphasis on stock selection and minimize other sources of relative risk. With this bottom-up approach incorporating diversified sources of alpha and effective risk analysis, our goal is to generate consistent outperformance over time.

Sector allocation, a residual of the bottom up stock selection process, contributed to performance for the year. During the period, positive relative results, due largely to an underweight position in consumer staples and an overweight position in health care, were able to offset negative relative results from an overweight position in information technology and a fractional cash position in a rising market. Security selection negatively affected the Portfolio’s relative performance, due largely to weak stock selection within the consumer discretionary and materials sectors.

The largest contributors to relative returns during the period included positions in software manufacturer Yahoo and underweight positions in IBM and Apple. Positions in aerospace firm Boeing and biopharmaceutical company Celgene also contributed positively to relative returns.

The largest relative detractors during the year included Altera and Broadcom, both semiconductor manufacturers, as well as technology hardware provider Cisco Systems. The Portfolio’s position in Allied Nevada Gold, a mining company, also detracted from relative returns during the period.

As of the end of the year, the Portfolio was most overweight in the information technology and health care sectors, and most underweight in the consumer staples and materials sectors.

 

Michael A. Del Balso

Spiros “Sig” Segalas

Blair A. Boyer

Co-Portfolio Managers

Jennison Associates LLC

Paul E. Marrkand, CFA

 

 

Portfolio Manager

Wellington Management Company, LLP

 

 

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    13

Transamerica Partners Mid Value Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

Cramer Rosenthal McGlynn, LLC

Equities were far and away the best asset class for investors in 2013. The multi-year run in fixed income, gold, and other commodities came to an end. The ten-year U.S. Treasury note sold off post-U.S. Federal Reserve (“Fed”) Chairman Ben Bernanke’s May Congressional testimony and then again later in the year as tapering became a reality. Commodities suffered along with weakness in most emerging markets and a relatively stronger U.S. dollar. The combination of increased supply and more tepid demand from emerging countries may likely keep most commodity prices contained. The lower level of inflation has boosted consumer disposable income and corporate profit margins. It also allowed the Fed to maintain quantitative easing longer than expected, and defer a plan for its gradual withdrawal well into 2014.

J.P. Morgan Investment Management Inc.

The S&P 500® finished 2013 with a return of 32.39%, posting its best performance in over a decade. In 2013, investors were bracing themselves for the “worst-case scenario” with every potential crisis. Headlines were dominated by uncertainty over the economic impact of the U.S. fiscal cliff, a fragile Italian government, a potential U.S. military attack on Syria, and a U.S. government shutdown. These and other potential headwinds were favorably resolved. Given the reduced uncertainty, U.S. equity markets rallied throughout the year with only June and August posting negative returns.

During 2013’s first few months, investors were skeptical about the prospects for global growth. U.S. economic data pointed towards moderation as the March employment report and several of the regional manufacturing surveys for April were below expectations. Headlines from overseas also signaled weakening economic activity. Chinese first-quarter gross domestic product (“GDP”) grew 7.7% year-over-year, down from the 7.9% year-over-year advance for the fourth quarter of 2012. In Europe, manufacturing Purchasing Managers Indexes (“PMIs”) remained stuck in contraction.

Chatter about when the Fed would taper the pace of its bond-buying program intensified in May. Fed Chairman Ben Bernanke, in his address to the Joint Economic Committee of Congress stated that asset purchases could be reduced over the next few meetings if data indicated it would be prudent to do so. The S&P 500® saw its largest correction of the year, from May 21 to June 24, as the index declined 5.58%. The fixed income markets were even more volatile as the yield on the U.S. 10-year Treasury rose from 1.93% to 2.54%. The back up in bond yields brought about an intense intra-market rotation as “bond-proxy” equities, such as utilities, telecommunication services and real estate investment trusts sold off significantly while economically sensitive sectors rallied. The cyclical leadership continued throughout the year.

While markets got off to a volatile start for the year’s final quarter, they rallied into year-end. In December, the Fed announced that it would reduce the pace of asset purchases from $85 billion per month to $75 billion per month, starting in January. Data releases were also supportive of markets giving strong signals that the U.S. and global economy was accelerating going into 2014. The final estimate of third-quarter U.S. GDP increased at an annual rate of 4.1%, the largest quarterly growth rate since the fourth quarter of 2011. Overseas, manufacturing PMI surveys for the Eurozone, United Kingdom, and Japan were in expansion territory for several consecutive months.

Small-cap stocks, measured by the Russell 2000® Index, gained 38.82%, outperforming the 32.39% advance for the S&P 500®. Growth outperformed value across the large-, mid- and small-cap categories. Small-cap growth as measured by the Russell 2000® Growth Index was the top-performing equity style in 2013, returning 43.30%.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Mid Value Portfolio (“the Portfolio”) returned 32.99%. By comparison, its benchmark, the Russell Midcap® Value Index, returned 33.46%.

STRATEGY REVIEW

Cramer Rosenthal McGlynn, LLC

The combination of better business confidence and activism is very powerful for our style of investing. We seek out companies with multiple business units and overcapitalized balance sheets which are being undervalued by the market. The two sectors that influenced the strategy’s performance the most were financial services and technology. The financial services sector had the greatest positive

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    14

Transamerica Partners Mid Value Portfolio

 

 

(unaudited)

 

STRATEGY REVIEW (continued)

 

impact on performance for the year as a result of both strong stock selection and our lack of significant exposure to real estate investment trusts (“REITs”). Conversely, stock selection within the technology sector underperformed the benchmark for the year.

Two of the positions which had the greatest positive impact on performance in 2013 were: Pentair and Tyco International. Pentair benefitted from improved investor confidence regarding the company’s 2015 growth plan, which was discussed during the quarter at both its investor day and 2014 earnings guidance call. We continue to believe the stock will experience upside from end-market acceleration, further share repurchases, and additional restructuring efforts. Tyco International posted strong quarterly results and provided 2014 guidance which, in our opinion, positions the company to exceed its long-term targets. The company continues to execute well on restructuring initiatives and deploy its substantial excess capital smartly in accretive security product deals.

Two of the positions which had the greatest negative impact on performance in 2013 were: Teradata and McGraw-Hill. Teradata was a holding which had the greatest negative impact on performance for the year. Teradata Corporation’s third quarter results missed expectations and management reduced guidance for the fourth quarter. This miss compounded what had already been a challenging year for the company as demand was impacted by weak enterprise IT spending. We believe investors remain fearful that Teradata’s core product is losing share to newer technologies. Our research indicates that the company should be a primary beneficiary once IT spending improves. In the first half of 2013, uncertainty developed around McGraw-Hill as the Department of Justice announced a major lawsuit against its S&P business. While S&P successfully defended against similar claims, the magnitude and unique method of the lawsuit increased the risk profile of the investment and we sold our shares during first quarter 2013.

J.P. Morgan Investment Management Inc.

Stock selection in the financial sector and sector allocation in the consumer discretionary sector contributed to performance. Stock selection in the industrials and information technology sectors detracted from performance.

Ameriprise, a financial advisory and asset management firm, was a major contributor to performance as rising equity prices continued to drive the company’s top- and bottom-line growth. Shares of HCP, a healthcare REIT, underperformed as fears of near-term earnings slowdown damped investor demand. We believe that HCP is expected to run into a few near-term growth constraints, including a refinancing of debt in February and the potential exercise of a buy option by one of its tenants.

Avoiding higher beta, more volatile names, within the information technology sector negatively impacted relative performance. One of the largest detractors from our relative performance was Micron Technology, which the Portfolio no longer helds as of year end.

The Portfolio continues to have a large overweight position in consumer discretionary names, while the financial sector remains the largest underweight due to an underweight to REITs based on their valuation. In the fourth quarter, we eliminated our position in the Charles Schwab Corporation, an online trading and asset management firm, and initiated a position in American Campus Communities, a student housing provider, and Legg Mason, an investment firm. We are redistributing our allocation within the financials space based on the relative valuation of the subsectors.

 

Jay B. Abramson

Thaddeus D. Pollock

Robert L. Rewey, III, CFA

Co-Portfolio Managers

Cramer Rosenthal McGlynn, LLC

Gloria Fu, CFA

Lawrence Playford, CFA

Jonathan K. L. Simon

Co-Portfolio Managers

J.P. Morgan Investment Management Inc.

 

 

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    15

Transamerica Partners Mid Growth Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

The U.S. equity market finished 2013 in very strong fashion with the fourth quarter producing solid gains in stock prices. The gains were largely driven by a strengthening economy and improving corporate earnings. Many key economic data points trended higher throughout the year and point to a positive outlook going forward. The U.S. Institute for Supply Management’s (“ISM”) manufacturing Purchasing Managers Index (“PMI”), a leading indicator of corporate profit growth, gradually ticked higher in the second half of the year to 57 — a figure consistent with an extension of the approximate 4% gross domestic product (“GDP”) we saw in the third quarter. December was the seventh straight ISM reading above 50, which is the level associated with an expanding economy. The U.S. unemployment rate has also gradually improved throughout 2013 and reached a five-year low of 7% in December.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Mid Growth Portfolio (“the Portfolio”) returned 30.35%. By comparison, its benchmark, the Russell Midcap® Growth Index, returned 35.74%.

STRATEGY REVIEW

Stock selection in the consumer discretionary, consumer staples, industrials and materials sectors negatively impacted relative performance for the Portfolio, while information technology, financials, energy and health care were top sector contributors during the fourth quarter.

Given tighter discretionary spending, the holiday retail season exhibited intense price competition as retailers battled for market share. While retail sales were challenged overall, Internet sales grew over 10% year-over-year. Under Armour was the best performer in the second half due to its higher-income customer base, continued growth, and product innovation. Carter’s was the worst performer due to anticipated continued margin compression, driven by low pricing power, lower-to-middle income customer base and rising Chinese labor costs. The Fresh Market underperformed due to negative market reaction to slow growth at some of its new stores and increasing competition among premium grocers.

Software firm PTC, Inc. posted the top performance in the information technology and telecommunications sectors after beating earnings expectations in the past two quarters, driven by a rebound in Europe and solid growth in Japan and the Pacific Rim in the company’s most recent quarter. Trimble Navigation was the second-best performer with the company announcing a contract with the U.S. Marine Corps and Army in late August to provide construction grade control and survey systems worth approximately $63M in revenue over the contract’s five-year term. Internet company ValueClick was the tech sector’s worst performing stock with the company reporting quarterly sales and EPS below consensus expectations due to weaker-than-expected sales in the company’s display business as well as lackluster sales execution in the second quarter.

Global commodity prices were roughly flat in aggregate, with metals stronger and agricultural commodities lower continuing their downtrend. Crude oil was down a bit after peaking in October. Rock Tenn was a strong performer as the company began taking some capacity offline in order to better balance supply and demand.

In the health care sector, Align’s penetration outside of the U.S. was under-estimated, and the penetration was done without a substantial hit to margins. United Therapeutics had a surprise FDA approval come at the end of the year. Both health care stocks were top performers in the Portfolio.

Howard Aschwald, CFA

Portfolio Manager

Quantum Capital Management

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    16

Transamerica Partners Small Value Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

Global equities surged in the first quarter as solid corporate earnings results and favorable global liquidity dynamics lifted enthusiasm for stocks. Further monetary easing by the Bank of Japan and a steadily improving U.S. economy also fueled the rally, which continued at a more modest pace in the second quarter. Solid gains in April and the first part of May paused following comments by U.S. Federal Reserve (“Fed”) Chairman Ben Bernanke that suggested the Fed might begin to slow quantitative easing sooner than investors anticipated. Nonetheless, equities resumed their ascent in the third quarter as the surprising “no taper” decision by the Federal Open Market Committee eased near-term concerns about rapidly rising interest rates derailing the recovery. Additionally, accommodative rhetoric from the European Central Bank, along with encouraging data in China, further evidence of a European economic recovery, and solid corporate earnings contributed to a broad-based global equity rally that extended through the end of the year. In December, the year ended with an optimistic tone as investors cheered the elimination of two market overhangs: the timing of Fed tapering and the threat of another government shutdown in January.

In this environment, all ten sectors in the Russell 2000® Value Index posted positive returns for the period. The consumer discretionary (+49.4%) and health care (+47.2%) sectors posted the largest gains, while the telecom services (+6.5%) and utilities (+18.5%) sectors lagged.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Small Value Portfolio (“the Portfolio”) returned 34.10%. By comparison, its benchmark, the Russell 2000® Value Index, returned 34.52%.

STRATEGY REVIEW

The team employs a bottom-up stock selection process that utilizes Wellington Management’s proprietary, fundamental research to identify undervalued companies that have the potential for significant outperformance over time. They take a long-term approach, focusing on high-quality companies with a record of above-average rates of profitability that sell at a discount relative to their intrinsic value and the overall small cap market. Companies with a history of above-average profitability are likely to have a strong and sustainable competitive position within a market niche. These companies typically generate strong cash flows that can be used to build the value of the business or otherwise benefit shareholders, such as dividend distributions and share repurchases. The quality of a company’s management, its strategic direction, and expectations with regard to the use of current and future cash flows are integral components of their valuation process.

Overweights to the health care and industrials sectors contributed most to relative performance. This was modestly offset by a frictional cash position in a rising market. Weak stock selection in the consumer discretionary and industrials sectors negatively affected the Portfolio’s relative performance.

The Portfolio’s largest contributors to relative performance during the period included Belden, a manufacturer of technology hardware, G & K Services, a supplier of uniforms and facility products, and Diamondback Energy, an oil & gas company. The Portfolio’s position in CorVel, a provider of health care management services, and in Scorpio Tankers, an operator of modern product tankers, also contributed to relative returns during the period.

The Portfolio’s largest relative detractors during the year included engineered products supplier ESCO Technologies, real estate developer and owner Campus Crest Communities, and ACCO Brands, a leading supplier of branded office products. Our positions in retail company Stage Stores and Deltic Timber, a natural resources company that focuses on the development and management of timber, also detracted from relative results during the period.

The Portfolio’s investment approach emphasizes individual stock selection; sector weights are a residual of the process. Wellington Management Company, LLP does, however, carefully consider diversification across economic sectors to limit risk. As of the end of the period, the Portfolio was most overweight the health care and industrials sectors, and most underweight financials. Based on the firm’s 2- to 3-year time horizon we continue to find opportunities created by the inefficiencies frequently found among small cap companies.

Timothy J. McCormack, CFA

Shaun F. Pedersen

Co-Portfolio Managers

Wellington Management Company, LLP

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    17

Transamerica Partners Small Core Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

The second half of 2013 saw the bulls run rampant on Wall Street, whereas the small cap market, as measured by the Russell 2000® Index, was up nearly 20% for the final six months of the year. The period was a roller coaster ride in terms of political events that were eventually resolved to the satisfaction of investors. Early in the time frame, the potential for U.S. military action in Syria weighed heavily on investor sentiment, but as the prospect of conflict faded, so too did investor concern on the issue. We also saw the federal government shut down amid yet another stalemate in Washington over the budget deficit. An eventual compromise in October, however, set the stage for a more material late-year agreement that afforded some budget certainty going forward, averting any further shutdowns in the near future. Investors clearly applauded the turn of events in Washington, as this should prove to remove one hurdle to U.S. economic growth in the quarters ahead. This late-year agreement likely played no small role in the U.S. Federal Reserve’s (“Fed”) December decision to taper its asset-purchase program. (The Fed will now buy $75 billion in Treasuries and mortgage-backed securities each month, instead of $85 billion.) Systematic Financial Management (“Systematic”) views the Fed’s move as largely symbolic, but by no means insignificant. The Fed’s policy shift signals its belief that the economy has picked up some steam, a stance Systematic shares based on its research. The housing market remains firm, and we are seeing improved strength among many of the industrial and services firms that address the housing industry. Online retailers, meanwhile, had a better holiday season than expected, a scenario that could pull through demand in parts of the domestic supply chain. We are also seeing this improvement in the financial sector, where banks posted moderately better loan growth in the fourth quarter relative to the July - September period.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Small Core Portfolio (“the Portfolio”) returned 33.62%. By comparison, its primary and secondary benchmarks, the Russell 2000® Index and the S&P 500®, returned 38.82% and 32.39%, respectively.

STRATEGY REVIEW

The Portfolio posted a strong absolute return in the second half of 2013, although it trailed the Russell 2000® Index during this time frame. Given the strong run up in the market over the period, most of the metrics that Systematic employs showed limited effectiveness in separating winners from losers, as a rising tide lifted all boats. Breaking it down, the six-month period was really a tale of the two calendar quarters from a factor performance perspective. Both quarters saw mixed results at the factor level, but in terms of which factors were effective from a stock selection standpoint, the two quarters were largely a mirror image of one another. While the third quarter saw momentum based metrics generally lead in terms of effectiveness, in the fourth quarter, it was the valuation and capital deployment frameworks that were somewhat additive to results, while momentum based metrics struggled. From a broader perspective, investors generally favored growth-oriented stocks during the latter half of the year, leading the Russell 2000® Growth Index to outperform the Russell 2000® Index by about 2.20%, and the Russell 2000® Value Index by approximately 4.42%. This type of environment serves as a headwind to Systematic’s disciplined approach, which generally favors more conservative and reasonably valued issues. From an attribution standpoint, stock selection accounted for underperformance for the period, with the Portfolio’s holdings in the health care and energy sectors detracting the most relative to the index. Conversely, its holdings in the industrials and materials sectors were additive to results. From a sector positioning standpoint, an underweight to the financial sector added value during the period. However, sector weightings in aggregate had little effect on relative results.

Eoin E. Middaugh, CFA

Portfolio Manager

Systematic Financial Management

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    18

Transamerica Partners Small Growth Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

The market has overcome a litany of issues over the past several years, and it has consistently and significantly traded higher. We are now entering year six of this bull market and there appear to be fewer anxieties. To elaborate on why Ranger Investment Management, L.P. (“Ranger”) believes there are fewer anxieties: bond yields have increased but are not likely to go significantly higher in 2014; the yield curve is steep and there’s good availability of credit; tapering has been announced; there is recent political cooperation which lessens fiscal/governmental displacement; industrial production is increasing; unemployment is down; government is less of a drag on the economy; Europe has stabilized; and central banks remain accommodative. Each of these considerations supported better economic and financial results through 2013, and continue to do so as we enter 2014. The market responded with equities broadly stronger from both improved financial results and higher valuations. Obviously, the success of equities combined with the list of considerations above supports the increased bullishness of investors. A significant amount of dry powder remains from potential asset allocation shifts from bonds to equities, which Ranger believes could help add to gains. While Ranger would welcome continued broad gains, they believe that selectivity and quality should be the key attributes for differentiation in 2014. This serves in contrast with the risk on environment of 2013, which rewarded speculative stocks the most (details below).

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners Small Growth Portfolio (“the Portfolio”) returned 37.97%. By comparison, its benchmark, the Russell 2000® Growth Index, returned 43.30%, respectively.

STRATEGY REVIEW

The positive considerations outlined above helped appreciate the portfolio of quality stocks by 39% over the past year. Ranger remains steadfast in positioning the Portfolio prudently within each sector from both a fundamental and valuation perspective. While the Portfolio lagged the Russell 2000® Growth Index (“the benchmark”), Ranger attributes part of that relative weakness to the speculative environment which rewarded lower quality stocks. This is evidenced by the outperformance of non-earning stocks in the benchmark, which increased on average by over 46% and represented over 19% of the index weighting. An additional drag on performance was the Portfolio’s average cash balance of 3% in 2013. Cash cost the Portfolio nearly 170 basis points and was the primary component of the detraction from performance related to allocation effect. It should also be noted that much of the underperformance for 2013 occurred in the month of December, where the Portfolio experienced a reversal in strength from consumer discretionary holdings which had outperformed previously. Additionally, many key holdings across all sectors declined modestly this last month and penalized performance.

Analyzing performance on a sector basis, the Portfolio benefited most significantly from the financial services sector, which is the largest relative overweighting versus the index. This sector averaged a 500 basis point overweight and is primarily comprised of regional banks. While overweight the index, the performance was driven by selection effect as evidenced by the 68.5% return of the Portfolio’s financial stocks compared to the 37.6% return by the index component. The sectors which underperformed the index most significantly were technology and energy. In each of these sectors the Portfolio had several holdings which penalized performance.

On a stock basis, the top ten contributors to performance were: Medidata Solutions, Private Bancorp, Enersys, Home Bancshares, Akorn, Gulfport Energy, Asbury Automotive, Deckers Outdoor, Prestige Brands and MarketAxess. These represent holdings in the healthcare, financial services, producer durables, energy and consumer discretionary sectors. The bottom ten detractors from performance were: Vocera Communications, Bioscrip, Liveperson, eHealth, IXIA, Impax Laboratories, HMS Holdings, Kraton Performance Polymers, PDC Energy and Ceva. These represent holdings in the technology, healthcare, financial services, materials and processing, and energy sectors.

W. Conrad Doenges

Portfolio Manager

Ranger Investment Management, L.P.

Russell Investment Group is the source and owner of the trademarks, service marks, and copyrights related to the Russell indexes. Russell® is a trademark of Russell Investment Group.

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    19

Transamerica Partners International Equity Portfolio

 

 

(unaudited)

 

MARKET ENVIRONMENT

Equity markets outside the U.S. continued their climb in 2013, but uncertainty about U.S. monetary policy remained high until mid-December, when the U.S. Federal Reserve (“Fed”) announced it would scale back its stimulus. Although the market stumbled on head fakes from the Fed in May and October, investors viewed the December announcement as a positive indication the world’s largest economy was finally back on its feet, and markets rallied into year-end. All of the 22 MSCI Developed-ex U.S. countries posted positive returns in both U.S. dollar and local currency terms but ranged widely from Singapore up 1.7% to Finland up 46.0%. Resource-heavy markets like the United Kingdom and Australia posted relatively light results. In Japan, where a weak Yen helped export-sensitive business, markets posted a 54.5% return in local terms, but that was reduced to 27.1% when converted to U.S. dollars. The Materials sector, where companies were burdened by low end-market commodity prices, was the only sector in the MSCI All Country World Index ex-U.S. to decline over the last twelve months. Europe was the top performing region for U.S.-dollar-based investors. Renewed faith in cyclical stocks and Financials along with speculation on increased merger and acquisition activity in Telecommunication Services were the winners there. Emerging markets stocks have underperformed as investors anticipated a slowdown in China and worried over unrest in Brazil and Thailand, among other issues.

PERFORMANCE

For the year ended December 31, 2013, Transamerica Partners International Equity Portfolio returned 13.92%. By comparison, its benchmark, the MSCI All Country World Index ex-U.S., returned 15.78%.

STRATEGY REVIEW

2013 was a banner year for stocks in developed markets around the world, and many of the positive trends remain in place. Economic performance is gradually improving in most markets, and equity valuations, while higher, remain reasonable for the most part. Even though the Fed has scaled back on quantitative easing, stimulus remains strong, and interest rates are still very low. Globally, the story is much the same, though we have seen a few central banks raise rates to stem inflation, primarily in the emerging markets. Corporate earnings have been strong but, with better investment sentiment as economies show signs of improved growth, prices have risen faster, and valuation multiples have become more expensive. This presents a more challenging environment to find attractive valuations. On a relative basis, however, non-U.S. stocks are currently trading at a discount to their U.S. peers.

Brandon H. Harrell, CFA

Portfolio Manager

Thompson, Siegel & Walmsley LLC

Please refer to page 21 for index descriptions.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    20

Index Descriptions

 

 

(unaudited)

 

Index    Description
   
Bank of America Merrill Lynch High Yield Master II Index    The Bank of America Merrill Lynch High Yield Master II Index is comprised of U.S. dollar denominated below investment grade corporate debt publicly issued in the U.S. domestic market with remaining maturities of at least one year.
   
Bank of America Merrill Lynch U.S. Corporate & Government 1-3 Years Index    The Bank of America Merrill Lynch U.S. Corporate & Government 1-3 Years Index tracks the performance of U.S. dollar denominated investment grade debt publicly issued in the U.S. domestic market, including U.S. Treasury, U.S. agency, foreign government, supranational and corporate securities that have a remaining maturity of less than 3 years and more than 1 year.
   
Barclays U.S. Aggregate Bond Index    The Barclays U.S. Aggregate Bond Index measures investment grade, U.S. dollar denominated, fixed-rate taxable bonds, including Treasuries, government-related and corporate securities, as well as both mortgage- and asset-backed securities.
   
Barclays U.S. Treasury Inflation Protected Securities Index    The Barclays U.S. Treasury Inflation Protected Securities Index is a market value weighted index that tracks inflation-protected securities issued by the U.S. Treasury.
   
MSCI All Country World Index ex-U.S.    The MSCI All Country World Index ex-U.S. captures large and mid-cap representation across developed and emerging markets countries, excluding the U.S.
   
Russell 1000® Index    The Russell 1000® Index measures the performance of the large-cap segment of the U.S. equity universe, and is comprised of approximately 1,000 of the largest securities of the Russell 3000® Index based on a combination of market cap and current index membership.
   
Russell 1000® Growth Index    The Russell 1000® Growth Index measures the performance of the large-cap growth segment of the U.S. equity universe, and is comprised of Russell 1000® Index companies with higher price-to-book ratios and higher forecasted growth values.
   
Russell 1000® Value Index    The Russell 1000® Value Index measures the performance of the large-cap value segment of the U.S. equity universe, and is comprised of Russell 1000® Index companies with lower price-to-book ratios and lower expected growth values.
   
Russell 2000® Index    The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity universe, and is comprised of approximately 2,000 of the smallest securities of the Russell 3000® Index based on a combination of market cap and current index membership.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    21

Index Descriptions (continued)

 

 

(unaudited)

 

Index    Description
   
Russell 2000® Growth Index    The Russell 2000® Growth Index measures the performance of the small-cap growth segment of the U.S. equity universe, and is comprised of Russell 2000® Index companies with higher price-to-value ratios and higher forecasted growth values.
   
Russell 2000® Value Index    The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe, and is comprised of Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values.
   
Russell Midcap® Index    The Russell Midcap® Index measures the performance of the mid-cap segment of the U.S. equity universe, and is comprised of approximately 800 of the smallest securities of the Russell 1000® based on a combination of market cap and current index membership.
   
Russell Midcap® Growth Index    The Russell Midcap® Growth Index measures the performance of the mid-cap growth segment of the U.S. equity universe, and is comprised of Russell Midcap® Index companies with higher price-to-book ratios and higher forecasted growth values.
   
Russell Midcap® Value Index    The Russell Midcap® Value Index measures the performance of the mid-cap value segment of the U.S. equity universe, and is comprised of Russell Midcap® Index companies with lower price-to-book ratios and lower forecasted growth values.
   
S&P 500®    The S&P 500® is market-capitalization weighted index of 500 large U.S. companies with common stock listed on the NYSE or NASDAQ.

 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    22

Schedules of Investments Composition

 

 

At December 31, 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

      47.4 % 

Certificates of Deposit

      34.5   

Repurchase Agreements

      11.7   

Demand Note

      2.0   

Short-Term U.S. Government Agency Obligation

      1.5   

Short-Term U.S. Government Obligation

      1.5   

Corporate Debt Securities

      1.3   

Asset-Backed Security

      0.1   

Other Assets and Liabilities - Net

      (0.0 )(A) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners High Quality Bond Portfolio    % of Net
Assets		  

Corporate Debt Securities

      32.0 % 

Asset-Backed Securities

      26.4   

Mortgage-Backed Securities

      15.9   

U.S. Government Agency Obligations

      13.5   

U.S. Government Obligations

      6.2   

Repurchase Agreement

      4.2   

Securities Lending Collateral

      2.0   

Convertible Bond

      0.9   

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

      89.1 % 

Foreign Government Obligations

      9.0   

Short-Term Investment Company

      2.0   

Securities Lending Collateral

      1.2   

Purchased Swaptions

      0.4   

Structured Notes Debt

      0.2   

Purchased Option

      0.1   

Mortgage-Backed Security

      0.0 (A) 

Purchased Foreign Exchange Options

      0.0 (A) 

Other Assets and Liabilities - Net(B)

      (2.0 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Core Bond Portfolio    % of Net
Assets		  

U.S. Government Agency Obligations

      38.8 % 

Corporate Debt Securities

      26.0   

Asset-Backed Securities

      17.2   

Mortgage-Backed Securities

      15.5   

U.S. Government Obligations

      10.0   

Securities Lending Collateral

      6.0   

Short-Term Investment Company

      2.7   

Foreign Government Obligations

      1.3   

Preferred Stocks

      0.4   

Municipal Government Obligations

      0.3   

Preferred Corporate Debt Securities

      0.1   

Purchased Option

      0.0 (A) 

Purchased Swaptions

      0.0 (A) 

Other Assets and Liabilities - Net(B)

      (18.3 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners High Yield Bond Portfolio    % of Net
Assets		  

Corporate Debt Securities

      89.0 % 

Loan Assignments

      5.2   

Repurchase Agreement

      3.3   

Convertible Preferred Stocks

      1.0   

Common Stocks

      0.2   

Right

      0.2   

Warrants

      0.0 (A) 

Convertible Bonds

      0.0 (A) 

Investment Company

      0.0 (A) 

Other Assets and Liabilities - Net

      1.1   

Total

      100.0 % 
  

 

 

  
Transamerica Partners Balanced Portfolio    % of Net
Assets		  

Common Stocks

      59.5 % 

U.S. Government Agency Obligations

      14.1   

Corporate Debt Securities

      9.7   

Asset-Backed Securities

      6.8   

Mortgage-Backed Securities

      5.9   

Securities Lending Collateral

      5.1   

U.S. Government Obligations

      4.4   

Short-Term Investment Company

      3.6   

Repurchase Agreement

      0.5   

Foreign Government Obligations

      0.4   

Preferred Stocks

      0.3   

Municipal Government Obligations

      0.1   

Short-Term U.S. Government Obligation

      0.0 (A) 

Purchased Option

      0.0 (A) 

Preferred Corporate Debt Securities

      0.0 (A) 

Other Assets and Liabilities - Net(B)

      (10.4 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Large Value Portfolio    % of Net
Assets		  

Common Stocks

      98.7 % 

Securities Lending Collateral

      8.2   

Repurchase Agreement

      1.2   

Other Assets and Liabilities - Net

      (8.1 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Large Core Portfolio    % of Net
Assets		  

Common Stocks

      98.6 % 

Securities Lending Collateral

      6.7   

Repurchase Agreement

      1.3   

Other Assets and Liabilities - Net

      (6.6 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Large Growth Portfolio    % of Net
Assets		  

Common Stocks

      99.5 % 

Securities Lending Collateral

      5.9   

Repurchase Agreement

      0.2   

Other Assets and Liabilities - Net

      (5.6 ) 

Total

      100.0 % 
  

 

 

  
 

 

Transamerica Partners Portfolios   Annual Report 2013

Page    23

Schedules of Investments Composition (continued)

 

 

At December 31, 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

      98.1 % 

Securities Lending Collateral

      6.3   

Repurchase Agreement

      2.3   

Other Assets and Liabilities - Net

      (6.7 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Mid Growth Portfolio    % of Net
Assets		  

Common Stocks

      98.6 % 

Securities Lending Collateral

      25.5   

Repurchase Agreement

      1.4   

Other Assets and Liabilities - Net

      (25.5 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Small Value Portfolio    % of Net
Assets		  

Common Stocks

      98.7 % 

Securities Lending Collateral

      25.6   

Repurchase Agreement

      1.3   

Other Assets and Liabilities - Net

      (25.6 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Small Core Portfolio    % of Net
Assets		  

Common Stocks

      97.7 % 

Securities Lending Collateral

      25.7   

Repurchase Agreement

      1.9   

Master Limited Partnership

      0.4   

Other Assets and Liabilities - Net

      (25.7 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners Small Growth Portfolio    % of Net
Assets		  

Common Stocks

      98.0 % 

Securities Lending Collateral

      25.6   

Repurchase Agreement

      1.8   

Other Assets and Liabilities - Net

      (25.4 ) 

Total

      100.0 % 
  

 

 

  
Transamerica Partners International Equity Portfolio    % of Net
Assets		  

Common Stocks

      89.4 % 

Repurchase Agreement

      6.4   

Preferred Stocks

      4.0   

Convertible Preferred Stock

      1.5   

Other Assets and Liabilities - Net

      (1.3 ) 

Total

      100.0 % 
  

 

 

  

 

 

(A)  Percentage 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 Portfolios   Annual Report 2013

Page    24

Transamerica Partners Money Market Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Principal      Value  

ASSET-BACKED SECURITY - 0.1%

     

CCG Receivables Trust
Series 2013-1, Class A1
0.37%, 04/14/2014 - 144A

     $  489,159         $  489,159   
    

 

 

  

Total Asset-Backed Security (cost $489,159)

  

      489,159   
    

 

 

  

CORPORATE DEBT SECURITIES - 1.3%

  

   

Commercial Banks - 1.3%

     

Royal Bank of Canada,
Series MTN
1.13%, 01/15/2014

     6,100,000         6,101,922   

Standard Chartered PLC
5.50%, 11/18/2014 - 144A

     6,410,000         6,690,128   
    

 

 

  

Total Corporate Debt Securities (cost $12,792,050)

  

      12,792,050   
    

 

 

  

CERTIFICATES OF DEPOSIT - 34.5%

  

   

Commercial Banks - 32.6%

     

Bank of America
0.26%, 05/28/2014 (A)

     16,000,000         16,000,000   

Bank of Nova Scotia

     

0.19%, 03/14/2014 (A)

     18,000,000         18,000,000   

0.24%, 04/09/2014 (A)

     15,000,000         15,000,000   

Bank of Tokyo-Mitsubishi UFJ, Ltd.

     

0.10%, 01/02/2014 (A)

     20,000,000         20,000,000   

0.35%, 06/20/2014 (A)

     20,000,000         20,000,000   

Barclays Bank PLC
0.55%, 04/02/2014 - 144A (A) (B)

     21,000,000         21,000,000   

Commonwealth Bank of Australia
0.24%, 05/15/2014 - 11/24/2014 - 144A (A)

     35,000,000         35,000,969   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA

     

0.26%, 04/22/2014 (A)

     8,000,000         8,000,518   

0.37%, 07/11/2014 (A)

     25,000,000         25,000,000   

Korea Development Bank
0.30%, 06/10/2014 (A)

     5,000,000         5,000,000   

Mizuho Bank, Ltd.
0.23%, 03/12/2014 (A)

     20,000,000         20,000,000   

National Australia Bank, Ltd.
0.23%, 10/23/2014 (A)

     9,500,000         9,500,016   

PNC Bank NA
0.27%, 04/16/2014 (A)

     11,000,000         11,000,000   

Sumitomo Mitsui Banking Corp.
0.22%, 02/28/2014 (A)

     20,000,000         20,000,000   

Swedbank (Sparbank)
0.31%, 03/05/2014 (A)

     10,000,000         10,001,672   

US Bank NA
0.10%, 01/02/2014 (A)

     43,000,000         43,000,000   

Westpac Banking Corp.

     

0.23%, 09/25/2014 - 144A (A)

     15,000,000         15,000,048   

0.28%, 04/25/2014 (A)

     10,000,000         10,000,000   

Consumer Finance - 1.9%

     

Toyota Motor Credit
0.21%, 04/28/2014 (A)

     18,500,000         18,500,000   
    

 

 

  

Total Certificates of Deposit (cost $340,003,223)

  

      340,003,223   
    

 

 

  

COMMERCIAL PAPER - 47.4%

     

Commercial Banks - 13.5%

     

Deutsche Bank Financial LLC
0.23%, 04/30/2014 (A)

     4,000,000         3,996,959   
     Principal      Value  

Commercial Banks (continued)

     

Korea Development Bank
0.40%, 05/02/2014 (A)

     $  10,000,000         $  9,986,555   

Mizuho Funding LLC

     

0.22%, 01/02/2014 - 144A (A)

     10,000,000         9,999,940   

0.25%, 01/08/2014 - 144A (A)

     5,000,000         4,999,762   

PNC Bank NA
0.27%, 07/23/2014 (A)

     10,700,000         10,683,709   

Skandinaviska Enskilda Banken AB

     

0.25%, 05/27/2014 - 144A (A)

     5,000,000         4,994,931   

0.27%, 06/02/2014 - 144A (A)

     15,000,000         14,982,900   

0.29%, 02/26/2014 - 144A (A)

     22,000,000         21,990,076   

Standard Chartered Bank

     

0.25%, 01/06/2014 - 144A (A)

     10,000,000         9,999,653   

0.28%, 09/02/2014 - 144A (A)

     10,000,000         9,981,022   

Standard Chartered PLC
1.19%, 05/12/2014 - 144A (A)

     9,300,000         9,329,360   

Sumitomo Mitsui Banking Corp.

     

0.15%, 02/03/2014 - 144A (A)

     12,500,000         12,498,281   

0.25%, 01/07/2014 - 144A (A)

     10,000,000         9,999,583   

Diversified Financial Services - 30.1%

  

   

BNP Paribas Finance, Inc.
0.14%, 02/06/2014 (A)

     25,000,000         24,996,500   

Cancara Asset Securitisation LLC
0.19%, 01/06/2014 - 144A (A)

     15,000,000         14,999,604   

Chariot Funding LLC
0.30%, 07/17/2014 - 144A (A)

     15,000,000         14,975,375   

Collateralized Commercial Paper II Co. LLC
0.40%, 06/03/2014 - 144A (A)

     29,000,000         28,950,700   

Fairway Finance LLC
0.20%, 02/10/2014 - 144A (A)

     15,000,000         15,000,560   

FCAR Owner Trust
0.16%, 02/13/2014 (A)

     2,690,000         2,689,486   

Gemini Securitization Corp. LLC

     

0.20%, 02/11/2014 - 144A (A)

     7,000,000         6,998,406   

0.21%, 01/06/2014 - 03/17/2014 - 144A (A)

     12,500,000         12,496,573   

Gotham Funding Corp.

     

0.16%, 01/06/2014 - 144A (A)

     15,000,000         14,999,667   

0.17%, 01/02/2014 - 01/07/2014 - 144A (A)

     14,000,000         13,999,651   

ING US Funding LLC
0.33%, 03/17/2014 (A)

     20,000,000         19,986,250   

Jupiter Securitization Co. LLC

     

0.24%, 02/10/2014 - 144A (A)

     8,500,000         8,497,733   

0.30%, 07/28/2014 - 144A (A)

     12,000,000         11,979,200   

Kells Funding LLC
0.24%, 04/16/2014 (A)

     16,500,000         16,488,450   

Nieuw Amsterdam Receivables Corp. 0.14%, 01/22/2014 - 144A (A)

     5,000,000         4,999,592   

Old Line Funding LLC
0.20%, 03/11/2014 (A)

     15,000,000         14,994,250   

Rabobank USA Financial Corp.
0.25%, 08/21/2014 (A)

     7,000,000         6,988,722   

Regency Markets No. 1 LLC
0.14%, 01/27/2014 - 144A (A)

     35,000,000         34,996,461   

Thunder Bay Funding LLC
0.23%, 04/24/2014 - 144A (A)

     10,000,000         9,992,780   

Victory Receivables Corp.

     

0.17%, 01/03/2014 - 01/06/2014 - 144A (A)

     17,500,000         17,499,728   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    25

Transamerica Partners Money Market Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Electric Utilities - 2.6%

  

Northeast Utilities
0.19%, 01/06/2014 - 144A (A)

     $  4,300,000         $  4,299,887   

OGE Energy Corp.
0.21%, 01/07/2014 - 144A (A)

     4,100,000         4,099,856   

Pacific Gas & Electric Co.
0.21%, 01/03/2014 - 144A (A)

     4,300,000         4,299,950   

Southern Co. Funding Corp.
0.22%, 01/16/2014 - 144A (A)

     9,100,000         9,099,166   

Westar Energy, Inc.
0.23%, 01/08/2014 - 144A (A)

     3,500,000         3,499,843   

Gas Utilities - 0.4%

     

South Carolina Fuel Co.
0.23%, 01/13/2014 - 144A (A)

     4,300,000         4,299,670   

Multi-Utilities - 0.4%

     

Dominion Resources, Inc.
0.25%, 01/03/2014 - 144A (A)

     4,300,000         4,299,940   

Oil, Gas & Consumable Fuels - 0.4%

  

   

Spectra Energy Partners, LP
0.28%, 01/13/2014 - 144A (A)

     4,300,000         4,299,599   
    

 

 

  

Total Commercial Paper (cost $468,170,330)

  

      468,170,330   
    

 

 

  

DEMAND NOTE - 2.0%

     

Goldman Sachs Co. Promissory Note 0.44%, 03/05/2014 (B)

     20,000,000         20,000,000   
    

 

 

  

Total Demand Note (cost $20,000,000)

  

      20,000,000   
    

 

 

  

SHORT-TERM U.S. GOVERNMENT AGENCY OBLIGATION - 1.5%

  

Freddie Mac
0.15%, 02/03/2014 (A)

     15,000,000         14,998,006   
    

 

 

  

Total Short-Term U.S. Government Agency Obligation (cost $14,998,006)

   

      14,998,006   
    

 

 

  

SHORT-TERM U.S. GOVERNMENT OBLIGATION - 1.5%

  

U.S. Treasury Bill
0.09%, 06/26/2014 (A)

     15,000,000         14,993,657   
    

 

 

  

Total Short-Term U.S. Government Obligation
(cost $14,993,657)

   

      14,993,657   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENTS - 11.7%

  

   

Barclays Capital, Inc.
0.01% (A), dated 12/31/2013, to be repurchased at $90,300,050 on 01/02/2014. Collateralized by Foreign Government Obligations and U.S. Government Agency Obligations, 0.00% - 6.51%, due 01/03/2014 - 10/16/2053, and with a total value of $ $92,106,012.

     $  90,300,000         $  90,300,000   

Deutsche Bank AG
0.03% (A), dated 12/31/2013, to be repurchased at $25,000,042 on 01/02/2014. Collateralized by U.S. Government Agency Obligations, 0.47% - 6.25%, due 05/15/2028 - 11/15/2043, and with a total value of $ $25,500,000.

     25,000,000         25,000,000   

State Street Bank & Trust Co.
0.01% (A), dated 12/31/2013, to be repurchased at $156,362 on 01/02/2014. Collateralized by U.S. Government Agency Obligations, 2.50 - 3.50%, due 02/25/2042 -12/25/2042, and with a total value of $163,507.

     156,362         156,362   
    

 

 

  

Total Repurchase Agreements (cost $115,456,362)

  

      115,456,362   
    

 

 

  
    

Total Investment Securities (cost $986,902,787) (C)

  

      986,902,787   

Other Assets and Liabilities - Net  - (0.0)% (D)

  

      (40,825 ) 
    

 

 

  

Net Assets  - 100.0%

        $  986,861,962   
    

 

 

  

 

 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

Asset-Backed Security

   $ —      $ 489,159      $ —      $ 489,159   

Corporate Debt Securities

     —        12,792,050        —        12,792,050   

Certificates of Deposit

     —        340,003,223        —        340,003,223   

Commercial Paper

     —        468,170,330        —        468,170,330   

Demand Note

     —        20,000,000        —        20,000,000   

Short-Term U.S. Government Agency Obligation

     —        14,998,006        —        14,998,006   

Short-Term U.S. Government Obligation

     —        14,993,657        —        14,993,657   

Repurchase Agreements

     —        115,456,362        —        115,456,362   

Total Investment Securities

   $ —      $ 986,902,787      $ —      $ 986,902,787   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    26

Transamerica Partners Money Market Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Rate shown reflects the yield at December 31, 2013.
(B)  Illiquid. Total aggregate fair value of illiquid securities $41,000,000, or 4.15% of the portfolio’s net assets.
(C)  Aggregate cost for federal income tax purposes is $986,902,787.
(D)  Percentage rounds to less than 0.01%.
(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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

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 December 31, 2013, these securities aggregated $435,539,753, or 44.13% of the portfolio’s net assets.
MTN    Medium Term Note

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    27

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 6.2%

  

   

U.S. Treasury Note

     

0.13%, 12/31/2014 (A)

     $  3,000,000         $  2,999,064   

0.25%, 02/28/2015 - 05/15/2016

     15,560,000         15,538,202   

0.38%, 06/30/2015

     3,000,000         3,006,210   

0.75%, 12/31/2017

     3,460,000         3,383,230   
    

 

 

  

Total U.S. Government Obligations (cost $25,002,872)

  

      24,926,706   
    

 

 

  

U.S. GOVERNMENT AGENCY OBLIGATIONS - 13.5%

  

Fannie Mae

     

2.50%, 05/15/2014

     950,000         958,312   

5.50%, 12/01/2022

     346,315         380,722   

6.00%, 07/01/2014 - 09/01/2014

     6,126         6,161   

Fannie Mae REMIC

    

4.00%, 07/25/2033

     610         611   

Freddie Mac

     

4.50%, 05/01/2023 - 09/01/2026

     4,750,916         5,068,005   

5.50%, 04/01/2017

     91,578         96,400   

Freddie Mac REMIC

    

3.38%, 03/15/2018

     667,825         684,132   

FREMF Mortgage Trust

    

Series 2013-K502, Class B

     

2.73%, 03/25/2045 - 144A (B)

     1,820,000         1,791,770   

Ginnie Mae

     

1.49%, 03/16/2043

     3,861,295         3,773,952   

1.78%, 09/16/2041

     3,953,276         3,889,613   

4.52%, 12/20/2061

     2,559,430         2,783,830   

4.67%, 09/20/2063

     3,006,386         3,281,618   

4.80%, 02/20/2063

     3,729,105         4,083,828   

4.95%, 05/20/2062

     4,324,273         4,705,601   

5.32%, 04/20/2061

     2,214,429         2,427,441   

5.47%, 01/20/2060

     7,063,557         7,778,622   

5.59%, 11/20/2059

     6,239,336         6,731,283   

5.65%, 06/20/2059

     4,397,790         4,746,165   

5.75%, 12/15/2022

     527,014         588,171   
    

 

 

  

Total U.S. Government Agency Obligations
(cost $54,860,097)

   

      53,776,237   
    

 

 

  

FOREIGN GOVERNMENT OBLIGATIONS - 0.5%

  

   

Province of Ontario Canada

    

2.30%, 05/10/2016 (A)

     1,985,000         2,053,681   
    

 

 

  

Total Foreign Government Obligations (cost $2,016,706)

   

      2,053,681   
    

 

 

  

MORTGAGE-BACKED SECURITIES - 15.9%

  

   

Bear Stearns Commercial Mortgage Securities
Series 2005-PWR8, Class A4
4.67%, 06/11/2041

     2,547,280         2,649,199   

CFCRE Commercial Mortgage Trust
Series 2011-C1, Class A2
3.76%, 04/15/2044 - 144A

     3,000,000         3,145,494   

Citigroup/Deutsche Bank Commercial Mortgage Trust
Series 2006-CD2, Class A4
5.30%, 01/15/2046 (B)

     2,000,000         2,137,042   

Commercial Mortgage Pass-Through Certificates
Series 2012-9W57, Class A
2.37%, 02/10/2029 - 144A

     4,050,000         4,143,774   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

Commercial Mortgage Trust
Series 2004-GG1, Class A7
5.32%, 06/10/2036 (B)

     $  1,559,851         $  1,568,033   

Credit Suisse Commercial Mortgage Trust
Series 2007-C5, Class A2
5.59%, 09/15/2040

     121,228         120,951   

DBUBS Mortgage Trust

     

Series 2011-LC1A, Class A1

     

3.74%, 11/10/2046 - 144A

     4,143,809         4,354,990   

Series 2011-LC3A, Class A2

     

3.64%, 08/10/2044

     1,400,000         1,470,741   

Del Coronado Trust
Series 2013-HDC, Class A
0.97%, 03/15/2026 - 144A (B)

     2,050,000         2,040,461   

GS Mortgage Securities Trust

     

Series 2006-GG6, Class A2

     

5.51%, 04/10/2038 (B)

     72,779         72,766   

Series 2006-GG8, Class AAB

     

5.54%, 11/10/2039

     2,591,216         2,633,383   

Series 2007-GG10, Class AAB

     

5.80%, 08/10/2045 (B)

     3,680,125         3,813,724   

JPMBB Commercial Mortgage Securities Trust

     

Series 2013-C12, Class A1

     

1.09%, 07/15/2045

     1,617,953         1,612,452   

Series 2013-C17, Class A1

     

1.25%, 01/15/2047

     3,450,000         3,436,083   

JPMorgan Chase Commercial Mortgage Securities Corp.

     

Series 2007-C1, Class A3

     

5.79%, 02/15/2051

     7,000,000         7,091,931   

Series 2007-CB18, Class A3

     

5.45%, 06/12/2047

     841,661         851,315   

JPMorgan Chase Commercial Mortgage Securities Trust

     

Series 2002-C2, Class E

     

5.55%, 12/12/2034 (B)

     529,432         548,247   

Series 2006-CB14, Class A4

     

5.48%, 12/12/2044 (B)

     4,000,000         4,268,444   

Series 2007-CB20, Class A3

     

5.82%, 02/12/2051

     2,050,000         2,060,812   

Merrill Lynch / Countrywide Commercial Mortgage Trust
Series 2007-8, Class A2
5.86%, 08/12/2049 (B)

     1,472,709         1,495,313   

Merrill Lynch Mortgage Trust
Series 2005-MKB2, Class A2
4.81%, 09/12/2042

     15,836         15,954   

ML-CFC Commercial Mortgage Trust
Series 2007-7, Class ASB
5.74%, 06/12/2050 (B)

     1,526,235         1,570,355   

N-Star Real Estate CDO, Ltd.
Series 2013-1A, Class A
2.02%, 08/25/2029 - 144A (B)

     2,250,000         2,252,109   

Sequoia Mortgage Trust
Series 2012-2, Class A2
3.50%, 04/25/2042 (B)

     493,925         496,213   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    28

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

Wachovia Bank Commercial Mortgage Trust

     

Series 2007-C30, Class A3

     

5.25%, 12/15/2043

     $  1,300,269         $  1,307,868   

Series 2007-C30, Class APB

     

5.29%, 12/15/2043

     3,250,381         3,298,617   

Series 2007-C33, Class A3

     

5.92%, 02/15/2051 (B)

     3,223,411         3,263,545   

WF-RBS Commercial Mortgage Trust
Series 2013-C18, Class A1
1.19%, 12/15/2046 (C)

     2,000,000         1,999,990   
    

 

 

  

Total Mortgage-Backed Securities (cost $64,359,339)

  

      63,719,806   
    

 

 

  

ASSET-BACKED SECURITIES - 26.4%

     

AmeriCredit Automobile Receivables Trust
Series 2013-1, Class A3
0.61%, 10/10/2017

     1,349,000         1,346,622   

ARI Fleet Lease Trust
Series 2012-B, Class A
0.47%, 01/15/2021 - 144A (B)

     447,518         446,980   

Avis Budget Rental Car Funding AESOP LLC
Series 2010-5A, Class A
3.15%, 03/20/2017 - 144A

     2,000,000         2,078,900   

Capital One Multi-Asset Execution Trust

     

Series 2006-A3, Class A3

     

5.05%, 12/17/2018

     4,000,000         4,357,492   

Series 2007-A7, Class A7

     

5.75%, 07/15/2020 (A)

     1,000,000         1,148,912   

CenterPoint Energy Restoration Bond Co. LLC
Series 2009-1, Class A1
1.83%, 02/15/2016

     1,607,337         1,619,723   

Chase Issuance Trust

     

Series 2012-A3, Class A3

     

0.79%, 06/15/2017

     3,000,000         3,010,134   

Series 2012-A5, Class A5

     

0.59%, 08/15/2017

     3,875,000         3,875,430   

Citibank Credit Card Issuance Trust

     

Series 2006-A3, Class A3

     

5.30%, 03/15/2018

     1,905,000         2,090,596   

Series 2009-A4, Class A4

     

4.90%, 06/23/2016

     2,100,000         2,145,043   

CLI Funding V LLC
Series 2013-1A
2.83%, 03/18/2028 - 144A

     1,017,500         990,611   

CNH Equipment Trust

     

Series 2010-B, Class A4

     

1.74%, 01/17/2017

     2,100,704         2,108,970   

Series 2011-B, Class A4

     

1.29%, 09/15/2017

     3,495,000         3,527,947   

Series 2012-C, Class B

     

1.30%, 03/16/2020

     640,000         638,266   

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

     2,124,017         2,212,002   

Diamond Resorts Owner Trust
Series 2013-2, Class A
2.27%, 05/20/2026 - 144A

     3,603,301         3,589,882   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

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

     $  4,000,000         $  4,580,008   

Entergy Texas Restoration Funding LLC
Series 2009-A, Class A1
2.12%, 02/01/2016

     681,136         686,389   

Fifth Third Auto Trust
Series 2013-1, Class A3
0.88%, 10/16/2017

     3,000,000         3,008,520   

Ford Credit Auto Owner Trust

     

Series 2010-B, Class A4

     

1.58%, 09/15/2015

     1,311,611         1,316,673   

Series 2010-B, Class B

     

2.54%, 02/15/2016

     5,500,000         5,600,441   

Series 2013-A, Class A4

     

0.78%, 05/15/2018

     2,600,000         2,592,483   

Ford Credit Floorplan Master Owner Trust

     

Series 2012-4, Class B

     

0.94%, 09/15/2016

     555,000         555,534   

Series 2013-5, Class B

     

1.88%, 09/15/2018

     1,665,000         1,679,401   

GE Capital Credit Card Master Note Trust

     

Series 2012-1, Class A

     

1.03%, 01/15/2018

     4,400,000         4,412,342   

Series 2012-5, Class B

     

1.51%, 06/15/2018

     1,850,000         1,862,227   

GE Equipment Transportation LLC

     

Series 2011-1, Class A4

     

1.33%, 05/20/2019

     400,267         400,636   

Series 2013-1, Class B

     

1.23%, 03/24/2021

     2,150,000         2,122,325   

Hertz Fleet Lease Funding, LP
Series 2013-3, Class A
0.72%, 12/10/2027 - 144A (B)

     750,000         750,135   

Huntington Auto Trust

     

Series 2011-1A, Class A4

     

1.31%, 11/15/2016 - 144A

     2,000,000         2,017,912   

Series 2011-1A, Class B

     

1.84%, 01/17/2017 - 144A

     1,500,000         1,517,355   

Hyundai Auto Receivables Trust

     

Series 2010-B, Class A4

     

1.63%, 03/15/2017

     1,941,735         1,959,275   

Series 2011-A, Class A4

     

1.78%, 12/15/2015

     2,959,519         2,977,142   

Series 2012-C, Class C

     

1.42%, 02/15/2019

     1,010,000         1,008,963   

Invitation Homes Trust
Series 2013-SFR1, Class B
1.51%, 12/17/2030 - 144A (B)

     1,080,000         1,081,410   

John Deere Owner Trust

     

Series 2012-B, Class A4

     

0.69%, 01/15/2019

     1,440,000         1,435,931   

Series 2013-B, Class A3

     

0.87%, 08/15/2017

     1,500,000         1,504,597   

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

     898,988         900,656   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    29

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

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

     $  1,100,000         $  1,108,416   

MMAF Equipment Finance LLC

     

Series 2009-AA, Class A4

     

3.51%, 01/15/2030 - 144A

     2,984,730         3,053,248   

Series 2011-AA, Class A3

     

1.27%, 09/15/2015 - 144A

     648,733         649,480   

SMART Trust

     

Series 2012-4US, Class A4A

     

1.25%, 08/14/2018

     1,100,000         1,090,904   

Series 2013-2US, Class A3B

     

0.59%, 01/14/2017 (B)

     2,805,000         2,797,296   

Volkswagen Auto Loan Enhanced Trust

     

Series 2011-1, Class A3

     

1.22%, 06/22/2015 (A)

     459,590         460,068   

Series 2013-1, Class A4

     

0.78%, 07/22/2019

     3,850,000         3,825,318   

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

     2,250,000         2,278,249   

World Financial Network Credit Card Master Trust

     

Class A

     

1.61%, 12/15/2021 - 144A

     5,000,000         4,905,720   

Series 2010-A, Class A

     

3.96%, 04/15/2019

     4,750,000         4,963,014   

Series 2013-B, Class A

     

0.91%, 03/16/2020

     560,000         556,419   

World Omni Automobile Lease Securitization Trust
Series 2012-A, Class B
1.49%, 02/15/2018

     865,000         871,254   
    

 

 

  

Total Asset-Backed Securities (cost $106,247,246)

  

      105,717,251   
    

 

 

  

CORPORATE DEBT SECURITIES - 32.0%

  

   

Aerospace & Defense - 0.3%

     

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

     1,320,000         1,354,304   

Beverages - 1.1%

     

Bottling Group LLC
6.95%, 03/15/2014

     4,210,000         4,264,743   

Capital Markets - 2.4%

     

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

     3,005,000         3,153,687   

Morgan Stanley, Series MTN
6.00%, 04/28/2015

     6,050,000         6,443,456   

Chemicals - 0.8%

     

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

     3,301,000         3,386,433   

Commercial Banks - 7.6%

     

Bank of Montreal, Series MTN
0.50%, 09/24/2015 (B)

     2,010,000         2,011,055   

Bank of Nova Scotia
1.28%, 01/12/2015 (B)

     3,875,000         3,916,567   

Credit Suisse
5.50%, 05/01/2014

     4,230,000         4,298,949   

Deutsche Bank AG
6.00%, 09/01/2017

     2,240,000         2,558,466   
     Principal      Value  

Commercial Banks (continued)

     

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

     $  2,220,000         $  2,226,842   

KFW
1.00%, 01/12/2015

     1,250,000         1,259,175   

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

     4,175,000         4,354,788   

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

     5,000,000         5,224,650   

Westpac Banking Corp.
1.13%, 09/25/2015

     4,300,000         4,346,629   

Consumer Finance - 1.7%

     

American Express Credit Corp.
1.30%, 07/29/2016 (A)

     2,175,000         2,191,830   

Capital One Financial Corp.

     

2.13%, 07/15/2014

     2,195,000         2,212,398   

7.38%, 05/23/2014

     2,200,000         2,256,654   

Diversified Consumer Services - 0.8%

  

   

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

     3,125,000         3,186,672   

Diversified Financial Services - 5.1%

  

   

American Honda Finance Corp.
0.74%, 10/07/2016 (B)

     1,235,000         1,241,423   

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

     2,465,000         2,540,671   

Citigroup, Inc.
1.70%, 07/25/2016

     1,875,000         1,892,666   

Ford Motor Credit Co. LLC

     

3.98%, 06/15/2016

     1,750,000         1,860,948   

4.21%, 04/15/2016

     2,060,000         2,195,008   

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

     7,700,000         7,825,133   

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

     2,860,000         2,901,053   

Diversified Telecommunication Services - 0.8%

  

   

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

     1,300,000         1,284,347   

Verizon Communications, Inc.
1.77%, 09/15/2016 (B)

     1,670,000         1,720,482   

Electric Utilities - 0.5%

     

Hydro-Quebec
1.38%, 06/19/2017

     2,160,000         2,167,324   

Food & Staples Retailing - 0.3%

     

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

     1,100,000         1,137,022   

Health Care Providers & Services - 0.4%

  

   

Ventas Realty, LP
1.55%, 09/26/2016

     1,760,000         1,772,489   

Insurance - 2.7%

     

Metropolitan Life Global Funding I

     

1.50%, 01/10/2018 - 144A

     3,600,000         3,501,374   

2.50%, 09/29/2015 - 144A

     3,685,000         3,795,285   

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

     3,745,000         3,625,175   

Machinery - 0.9%

     

Caterpillar, Inc.
1.38%, 05/27/2014 (A)

     3,775,000         3,789,632   

Media - 0.7%

     

Comcast Corp.
5.30%, 01/15/2014

     2,600,000         2,603,817   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    30

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Office Electronics - 0.8%

     

Xerox Corp.
8.25%, 05/15/2014

     $  3,005,000         $  3,085,537   

Oil, Gas & Consumable Fuels - 1.9%

     

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

     4,025,000         4,056,951   

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

     1,960,000         1,961,695   

Total Capital SA
3.00%, 06/24/2015 (A)

     1,500,000         1,553,718   

Pharmaceuticals - 0.5%

     

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

     2,015,000         2,022,870   

Real Estate Investment Trusts - 1.3%

     

Health Care REIT, Inc.
6.20%, 06/01/2016

     1,750,000         1,945,594   

Simon Property Group, LP
5.10%, 06/15/2015 (A)

     2,975,000         3,168,256   

Road & Rail - 0.5%

     

Canadian National Railway Co.
0.44%, 11/06/2015 (B)

     1,850,000         1,851,347   

Wireless Telecommunication Services - 0.9%

  

   

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

     3,618,000         3,723,537   
    

 

 

  

Total Corporate Debt Securities (cost $126,539,671)

  

      127,870,652   
    

 

 

  

CONVERTIBLE BOND - 0.9%

     

Consumer Finance - 0.9%

     

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

     3,305,000         3,397,137   
    

 

 

  

Total Convertible Bond (cost $3,299,092)

        3,397,137   
    

 

 

  
     Shares      Value  

SECURITIES LENDING COLLATERAL - 2.0%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (D)

     7,826,473         $  7,826,473   
    

 

 

  

Total Securities Lending Collateral (cost $7,826,473)

        7,826,473   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 4.2%

  

   

State Street Bank & Trust Co.
0.01% (D), dated 12/31/2013, to be repurchased at $16,903,714 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $17,243,796.

     $  16,903,705         16,903,705   
    

 

 

  

Total Repurchase Agreement (cost $16,903,705)

  

      16,903,705   
    

 

 

  
    

Total Investment Securities (cost $407,055,201) (E)

  

      406,191,648   

Other Assets and Liabilities - Net  - (1.6)%

  

      (6,333,766 ) 
    

 

 

  

Net Assets  - 100.0%

        $  399,857,882   
    

 

 

  
 

VALUATION SUMMARY: (F)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

U.S. Government Obligations

   $ —      $ 24,926,706      $ —      $ 24,926,706   

U.S. Government Agency Obligations

     —        53,776,237        —        53,776,237   

Foreign Government Obligations

     —        2,053,681        —        2,053,681   

Mortgage-Backed Securities

     —        63,719,806        —        63,719,806   

Asset-Backed Securities

     —        105,717,251        —        105,717,251   

Corporate Debt Securities

     —        127,870,652        —        127,870,652   

Convertible Bond

     —        3,397,137        —        3,397,137   

Securities Lending Collateral

     7,826,473        —        —        7,826,473   

Repurchase Agreement

     —        16,903,705        —        16,903,705   

Total Investment Securities

   $ 7,826,473      $ 398,365,175      $ —      $ 406,191,648   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  All or a portion of this security is on loan. The value of all securities on loan is $7,665,613. 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 December 31, 2013.

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    31

Transamerica Partners High Quality Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

NOTES TO SCHEDULE OF INVESTMENTS (continued):

 

(C)  Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate fair value of securities is $1,999,990, or 0.50% of the portfolio’s net assets.
(D)  Rate shown reflects the yield at December 31, 2013.
(E)  Aggregate cost for federal income tax purposes is $407,064,995. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $2,881,205 and $3,754,552, respectively. Net unrealized depreciation for tax purposes is $873,347.
(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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

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 December 31, 2013, these securities aggregated $52,910,970, or 13.23% of the portfolio’s net assets.
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)

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    32

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 89.1%

  

   

U.S. Treasury Inflation Indexed Bond

  

   

0.63%, 02/15/2043 (A)

     $  6,166,546         $  4,741,494   

0.75%, 02/15/2042

     9,226,559         7,417,286   

1.75%, 01/15/2028

     8,712,865         9,328,212   

2.00%, 01/15/2026

     6,207,567         6,871,969   

2.13%, 02/15/2040 - 02/15/2041

     9,242,704         10,385,047   

2.38%, 01/15/2025 - 01/15/2027

     21,185,789         24,367,413   

2.50%, 01/15/2029

     6,826,384         8,022,066   

3.38%, 04/15/2032

     936,103         1,245,383   

3.63%, 04/15/2028

     6,902,702         9,130,978   

3.88%, 04/15/2029

     7,551,393         10,348,949   

U.S. Treasury Inflation Indexed Note

  

   

0.13%, 04/15/2016 - 01/15/2023

     93,982,625         93,817,904   

0.38%, 07/15/2023

     17,287,929         16,673,395   

0.63%, 07/15/2021

     193,063         195,974   

1.13%, 01/15/2021

     9,492,031         9,976,276   

1.25%, 07/15/2020

     5,719,033         6,118,473   

1.38%, 07/15/2018 (A)

     2,274,573         2,465,246   

1.38%, 01/15/2020

     4,819,902         5,175,745   

1.88%, 07/15/2015

     756,498         797,336   

1.88%, 07/15/2019 (B)

     4,457,602         4,953,162   

2.00%, 01/15/2016

     1,470,988         1,567,636   

2.13%, 01/15/2019

     1,490,708         1,664,702   

2.50%, 07/15/2016

     8,597,256         9,432,806   
    

 

 

  

Total U.S. Government Obligations (cost $254,005,515)

   

      244,697,452   
    

 

 

  

FOREIGN GOVERNMENT OBLIGATIONS - 9.0%

  

Canadian Government Bond
1.50%, 12/01/2044

     CAD  446,922         443,565   

Deutsche Bundesrepublik Inflation Linked Bond
1.50%, 04/15/2016

     EUR  10,336,140         14,819,424   

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

     366,000         5,891   

Italy Buoni Poliennali del Tesoro 2.10%, 09/15/2016

     5,937,802         8,421,074   

New Zealand Government Bond 3.00%, 09/20/2030

     NZD  1,194,000         982,967   
    

 

 

  

Total Foreign Government Obligations (cost $23,995,110)

   

      24,672,921   
    

 

 

  

MORTGAGE-BACKED SECURITY - 0.0% (D)

  

   

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

     $  90,167         90,368   
    

 

 

  

Total Mortgage-Backed Security (cost $86,465)

  

      90,368   
    

 

 

  

STRUCTURED NOTES DEBT - 0.2%

  

Diversified Financial Services - 0.2%

  

   

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

     649,000         646,339   
    

 

 

  

Total Structured Notes Debt (cost $646,449)

  

      646,339   
    

 

 

  
     Contracts      Value  

PURCHASED OPTION - 0.1%

     

Put Option - 0.1%

     

Eurodollar, Mid-Curve 2-Year Future
Exercise Price $98.75
Expires 01/10/2014

     207         $  100,912   
    

 

 

  

Total Purchased Option (cost $46,927)

  

      100,912   
    

 

 

  
     Notional Amount      Value  

PURCHASED FOREIGN EXCHANGE OPTIONS - 0.0% (D)(E)

  

Put Options - 0.0% (D)

     

OTC - USD vs. EUR
Exercise Price EUR 1.32
Expires 01/24/2014
Counterparty: DUB

     EUR  2,180,000         759   

OTC - USD vs. EUR
Exercise Price EUR 1.35
Expires 01/24/2014
Counterparty: DUB

     2,155,000         4,533   
    

 

 

  

Total Purchased Foreign Exchange Options
(cost $33,683)

   

      5,292   
    

 

 

  

PURCHASED SWAPTIONS - 0.4% (E)

  

   

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

     $  14,800,000         80   

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         10   

OTC - If exercised the Series receives floating 3 month LIBOR, and pays 3.85%, European Style
Expires 10/02/2014
Counterparty: DUB

     3,200,000         91,406   

Put Options - 0.4%

  

   

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         634,453   

OTC - If exercised the Series receives floating 3 month LIBOR, and pays 3.85%, European Style
Expires 10/02/2014
Counterparty: DUB

     $  3,200,000         218,360   

OTC - If exercised the Series receives floating 3 month LIBOR, and pays 4.25%, European Style
Expires 02/01/2016
Counterparty: DUB

     5,600,000         219,134   
    

 

 

  

Total Purchased Swaptions (cost $1,080,888)

  

      1,163,443   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    33

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

SHORT-TERM INVESTMENT COMPANY - 2.0%

  

   

BlackRock Provident TempFund 24 (F)

     5,546,763         $  5,546,763   
    

 

 

  

Total Short-Term Investment Company (cost $5,546,763)

   

      5,546,763   
    

 

 

  

SECURITIES LENDING COLLATERAL - 1.2%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (G)

     3,295,294         3,295,294   
    

 

 

  

Total Securities Lending Collateral
(cost $3,295,294)

   

      3,295,294   
    

 

 

  
    

Total Investment Securities (cost $288,737,094) (H)

  

      280,218,784   

Other Assets and Liabilities - Net  - (2.0)%

  

      (5,431,060 ) 
    

 

 

  

Net Assets  - 100.0%

  

      $  274,787,724   
    

 

 

  
     Contracts      Value  

WRITTEN OPTIONS - (0.0)% (D)

  

   

Put Option - (0.0)% (D)

     

Eurodollar, Mid-Curve 2-Year Future Exercise Price $ 98.50
Expires 01/10/2014

     207         (23,288 ) 
    

 

 

  

Total Written Options (premiums $(15,173))

  

      (23,288 ) 
    

 

 

  
     Notional Amount      Value  

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

  

   

Call Options - (0.0)% (D)

  

   

OTC - USD vs. EUR
Exercise Price EUR 1.41
Expires 01/24/2014
Counterparty: DUB

     EUR  2,155,000         $  (6,125 ) 

OTC - USD vs. JPY
Exercise Price $105.25
Expires 03/18/2014
Counterparty: DUB

     $  1,415,000         (25,268 ) 

Put Options - (0.0)% (D)

  

   

OTC - USD vs. EUR
Exercise Price EUR 1.35
Expires 01/24/2014
Counterparty: DUB

     EUR  2,165,000         (6,153 ) 
    

 

 

  

Total Written Foreign Exchange Options
(cost $(78,615))

   

      (37,546 ) 
    

 

 

  
 

 

WRITTEN INFLATION-CAPPED OPTION: (E)  
Description    Counterparty      Initial
Index		      Floating
Rate		      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 )    $   (20,582 ) 

 

WRITTEN SWAPTIONS: (E)  
Description   Counterparty     Floating Rate
Index		     Pay/Receive
Floating Rate		     Exercise
Rate		     Expiration
Date		     Notional
Amount		     Premiums
Paid
(Received)		     Value  

Call - OTC 5-Year Interest Rate Swap

     DUB        3-Month USD LIBOR BBA        Receive        1.25 %      06/27/2014        $  4,500,000      $ (47,362 )    $ (894 ) 

Call - OTC 5-Year Interest Rate Swap

     BCLY        3-Month USD LIBOR BBA        Receive        1.25        08/18/2014        8,000,000        (55,200 )      (2,127 ) 

Put - OTC 20-Year Interest Rate Swap

     DUB        6-Month EUR EURIBOR        Pay        4.50        06/08/2022        EUR  3,200,000        (150,269 )      (260,017 ) 

Put - OTC 5-Year Interest Rate Swap

     DUB        3-Month USD LIBOR BBA        Pay        2.25        06/27/2014        $  4,500,000        (47,363 )      (42,481 ) 

Put - OTC 5-Year Interest Rate Swap

     BCLY        3-Month USD LIBOR BBA        Pay        2.25        08/18/2014        8,000,000        (120,000 )      (108,242 ) 
             

 

 

    

 

 

  
        $   (420,194 )    $   (413,761 ) 
             

 

 

    

 

 

  

 

CENTRALLY CLEARED SWAP AGREEMENTS: (I)                           
INTEREST RATE SWAP AGREEMENTS - FIXED RATE PAYABLE:                    
Floating Rate Index      Fixed Rate      Expiration
Date		        Notional
Amount		        Fair
Value		      Premiums
Paid
(Received)		        Net Unrealized
Appreciation
(Depreciation)		  

3-Month USD-LIBOR

        0.48 %       08/08/2015         $   28,000,000                 $   (85,211 )             $ 476                 $   (85,687 ) 

3-Month USD-LIBOR

        1.54         08/01/2018           6,200,000           (18,132 )       115           (18,247 ) 

3-Month USD-LIBOR

        2.22         08/09/2020           7,600,000           8,530         150           8,380   

3-Month USD-LIBOR

        3.69         11/22/2043           1,800,000           74,200         49           74,151   

3-Month USD-LIBOR

        3.74         11/26/2043           900,000           28,692         25           28,667   
                 

 

 

     

 

 

       

 

 

  
                          $ 8,079               $   815                 $ 7,264   
                 

 

 

     

 

 

       

 

 

  

 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    34

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

OVER THE COUNTER SWAP AGREEMENTS: (E)  
INTEREST RATE SWAP AGREEMENTS - FIXED RATE RECEIVABLE:                         
Floating Rate Index   Fixed Rate     Expiration
Date		     Counterparty     Notional
Amount		      Fair
Value		     Premiums
Paid
(Received)		      Net Unrealized
Appreciation
(Depreciation)		  

3-Month USD-LIBOR

     2.50 %      03/17/2024        DUB        $  2,600,000       $ (154,300 )    $ 0       $ (154,300 ) 

Eurostat Eurozone HICP Ex Tobacco NSA

     0.00        11/19/2015        DUB        EUR  3,135,000         4,853        6,156         (1,303 ) 
          

 

 

    

 

 

     

 

 

  
           $   (149,447 )    $   6,156       $   (155,603 ) 
          

 

 

    

 

 

     

 

 

  

 

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

10-Year Government of Canada Bond

      Short         (11 )       03/20/2014       $ 17,397   

10-Year U.S. Treasury Note

      Long         68         03/20/2014         (54,419 ) 

2-Year U.S. Treasury Note

      Long         113         03/31/2014         (46,548 ) 

3-Month EURIBOR

      Long         97         12/15/2014         73,346   

5-Year U.S. Treasury Note

      Long         157         03/31/2014         (119,467 ) 

90-Day Eurodollar

      Short         (127 )       12/15/2014         (30,225 ) 

90-Day Eurodollar

      Short         (182 )       09/14/2015         35,144   

90-Day Eurodollar

      Long         182         09/18/2017         (177,956 ) 

Long U.S. Treasury Bond

      Short         (101 )       03/20/2014         151,978   

Ultra Long U.S. Treasury Bond

      Short         (33 )       03/20/2014         65,336   
           

 

 

  
            $   (85,414 ) 
           

 

 

  

 

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

Amount in U.S.
Dollars Bought
(Sold)

      Net
Unrealized
Appreciation
(Depreciation)		  

AUD

    BNP      (643,000 )       01/23/2014       $ (581,176 )     $ 7,934   

CAD

    BCLY      (464,000 )       01/23/2014         (448,021 )       11,468   

EUR

    DUB      (2,219,000 )       01/15/2014         (2,998,623 )       (54,031 ) 

EUR

    DUB      (1,870,000 )       01/15/2014         (2,518,914 )       (53,625 ) 

EUR

    BCLY      (17,429,000 )       01/22/2014         (23,535,668 )       (441,140 ) 

EUR

    DUB      545,000         01/23/2014         736,627         13,120   

GBP

    CITI      345,000         01/23/2014         564,671         6,541   

JPY

    DUB      (144,682,000 )       01/15/2014         (1,467,458 )       93,490   

NOK

    UBS      (1,015,000 )       01/15/2014         (164,618 )       (2,631 ) 

NZD

    BNP      (449,000 )       01/23/2014         (375,799 )       7,178   

NZD

    DUB      1,245,000         01/23/2014         1,022,699         (577 ) 

NZD

    DUB      (760,000 )       01/23/2014         (616,335 )       (7,611 ) 
              

 

 

  
               $   (419,884 ) 
              

 

 

  

 

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

NOK

    CSFB      8,350,134         01/15/2014       $ 1,398,858       $ (22,951 ) 

AUD

    CSFB      (1,487,000 )       01/15/2014         (1,398,858 )       72,463   

EUR

    CSFB      2,435,654         01/15/2014         3,292,154         58,549   

CHF

    CSFB      (2,997,956 )       01/15/2014         (3,292,154 )       (69,029 ) 

AUD

    DUB      739,062         01/23/2014         675,392         (16,510 ) 

GBP

    DUB      (410,000 )       01/23/2014         (675,392 )       (3,441 ) 

CHF

    DUB      478,407         01/15/2014         528,714         7,656   

EUR

    DUB      (390,000 )       01/15/2014         (528,714 )       (7,805 ) 

NOK

    UBS      5,440,470         01/15/2014         885,904         10,559   

AUD

    UBS      (980,000 )       01/15/2014         (885,904 )       11,750   
              

 

 

  
               $   41,241   
              

 

 

  

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    35

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY: (J)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                
Investment Securities                                

U.S. Government Obligations

   $ —      $ 244,697,452      $ —      $ 244,697,452   

Foreign Government Obligations

     —        24,672,921        —        24,672,921   

Mortgage-Backed Security

     —        90,368        —        90,368   

Structured Notes Debt

     —        646,339        —        646,339   

Purchased Option

     100,912        —        —        100,912   

Purchased Foreign Exchange Options

     —        5,292        —        5,292   

Purchased Swaptions

     —        1,163,443        —        1,163,443   

Short-Term Investment Company

     5,546,763        —        —        5,546,763   

Securities Lending Collateral

     3,295,294        —        —        3,295,294   

Total Investment Securities

   $   8,942,969      $   271,275,815      $             —      $   280,218,784   
                                 

Derivative Financial Instruments

                                

Interest Rate Swap Agreements (K)

   $ —      $ 111,198      $ —      $ 111,198   

Futures Contracts (K)

     343,201        —        —        343,201   

Forward Foreign Currency Contracts (K)

     —        139,731        —        139,731   

Forward Foreign Cross Currency Contracts (K)

     —        160,977        —        160,977   

Total Derivative Financial Instruments

   $   343,201      $   411,906      $ —      $   755,107   
       
     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

LIABILITIES

                                

Derivative Financial Instruments

                                

Written Options

   $ (23,288 )    $ —      $ —      $ (23,288 ) 

Written Foreign Exchange Options

     —        (37,546 )      —        (37,546 ) 

Written Inflation — Capped Option

     —        (20,582 )      —        (20,582 ) 

Written Swaptions

     —        (413,761 )      —        (413,761 ) 

Interest Rate Swap Agreements (K)

     —        (259,537 )      —        (259,537 ) 

Futures Contracts (K)

     (428,615 )      —        —        (428,615 ) 

Forward Foreign Currency Contracts (K)

     —        (559,615 )      —        (559,615 ) 

Forward Foreign Cross Currency Contracts (K)

     —        (119,736 )      —        (119,736 ) 

Total Derivative Financial Instruments

   $ (451,903 )    $ (1,410,777 )    $ —      $ (1,862,680 ) 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $3,229,515. 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 $392,496.
(C)  Floating or variable rate note. Rate is listed as of December 31, 2013.
(D)  Percentage rounds to less than 0.1%.
(E)  Cash in the amount of $500,000 has been segregated by the broker as collateral for open options, swap, swaptions and/or forward foreign currency contracts.
(F)  The investment issuer is affiliated with the sub-adviser of the portfolio.
(G)  Rate shown reflects the yield at December 31, 2013.
(H)  Aggregate cost for federal income tax purposes is $291,983,916. Net unrealized depreciation for tax purposes is $11,765,132.
(I)  Cash in the amount of $475,000 has been segregated by the custodian with the broker as collateral for centrally cleared swaps.
(J)  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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(K) Derivative financial instruments valued at unrealized appreciation (depreciation) on the instrument.

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    36

Transamerica Partners Inflation-Protected Securities Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

DEFINITIONS:

 

BBA    British Bankers’ Association
BCLY    Barclays Bank PLC
BNP    BNP Paribas
CITI    Citigroup, Inc.
CSFB    Credit Suisse First Boston
DUB    Deutsche Bank AG
EURIBOR    Euro InterBank Offered Rate
HICP    Harmonized Index of Consumer Prices
LIBOR    London Interbank Offered Rate
MTN    Medium Term Note
NSA    Not Seasonally Adjusted
OTC    Over the Counter
UBS    UBS AG

CURRENCY ABBREVIATIONS:

 

AUD    Australian Dollar
CAD    Canadian Dollar
CHF    Swiss Franc
EUR    Euro
GBP    Pound Sterling
JPY    Japanese Yen
NOK    Norwegian Krone

NZD

USD

   

New Zealand Dollar

United States Dollar

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    37

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 10.0%

  

   

U.S. Treasury Bond

     

2.75%, 11/15/2042

     $  175,000         $  138,359   

3.75%, 11/15/2043

     29,265,000         28,286,437   

U.S. Treasury Inflation Indexed Bond
0.75%, 02/15/2042

     6,232,970         5,010,722   

U.S. Treasury Inflation Indexed Note

     

0.13%, 01/15/2023

     1,705,035         1,610,325   

0.38%, 07/15/2023

     18,075,556         17,433,025   

U.S. Treasury Note

     

0.25%, 11/30/2015 (A)

     3,425,000         3,418,177   

0.63%, 12/15/2016 (A)

     21,540,000         21,452,505   

1.25%, 11/30/2018 (A)

     1,938,800         1,897,298   

1.50%, 12/31/2018

     11,760,000         11,627,700   

1.63%, 11/15/2022

     240,000         216,637   

2.00%, 11/30/2020

     16,760,000         16,314,821   

2.75%, 11/15/2023 (A)

     26,475,000         25,899,990   
    

 

 

  

Total U.S. Government Obligations (cost $137,372,502)

   

      133,305,996   
    

 

 

  

U.S. GOVERNMENT AGENCY OBLIGATIONS - 38.8%

  

Fannie Mae

     

1.33%, 08/01/2037 (B)

     10,725         11,463   

1.90%, 08/01/2034 - 01/01/2035 (B)

     72,246         76,556   

2.50%, 09/01/2027

     19,538,984         19,360,006   

2.74%, 08/01/2035 (B)

     108,856         115,109   

3.00%, 03/01/2041 (B)

     699,765         738,465   

3.00%, 02/01/2043 - 06/01/2043

     35,369,168         33,624,315   

3.13%, 03/01/2041 (B)

     802,828         842,766   

3.22%, 12/01/2040 (B)

     1,628,633         1,705,656   

3.36%, 06/01/2041 (B)

     1,764,113         1,848,366   

3.50%, 09/01/2041 (B)

     1,295,778         1,361,417   

3.50%, 07/01/2028 - 12/01/2043

     22,177,322         22,157,701   

4.00%, 01/01/2025 - 01/01/2044

     35,345,470         36,731,743   

4.50%, 02/01/2025 - 12/01/2043

     29,104,720         30,908,890   

5.00%, 11/01/2032 - 01/01/2042

     21,023,857         22,884,353   

5.50%, 07/01/2014 - 04/01/2041

     3,149,043         3,462,430   

6.00%, 02/01/2034 - 12/01/2038

     4,739,136         5,291,008   

6.00%, 04/01/2035 (B)

     8,598,392         9,648,287   

6.50%, 05/01/2040

     6,080,619         6,755,354   

7.00%, 01/01/2015 - 09/01/2016

     9,927         10,186   

7.00%, 01/01/2016 (B)

     20,435         21,086   

Fannie Mae, IO
2.40%, 01/25/2022 (B)

     5,458,022         699,424   

Fannie Mae, TBA

     

3.00%

     10,100,000         10,307,129   

3.50%

     4,800,000         5,019,563   

4.00%

     16,600,000         17,087,625   

4.50%

     17,000,000         18,088,398   

Farmer Mac Guaranteed Notes Trust Series 2007-1
5.13%, 04/19/2017 - 144A

     900,000         1,017,652   

Freddie Mac

     

1.95%, 02/01/2037 - 04/01/2037 (B)

     286,302         303,562   

2.17%, 05/01/2037 (B)

     119,770         127,158   

2.37%, 09/01/2035 (B)

     1,813,361         1,916,560   

2.50%, 05/01/2037 (B)

     124,145         130,780   

2.51%, 01/01/2038 (B)

     318,677         339,797   

2.64%, 12/01/2034 (B)

     27,928         29,831   

2.64%, 01/25/2023

     3,015,000         2,831,480   
     Principal      Value  

U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)

  

Freddie Mac (continued)

     

3.00%, 03/01/2043 - 08/01/2043

     $  15,232,718         $  14,449,152   

3.03%, 02/01/2041 (B)

     1,242,096         1,312,391   

3.30%, 04/25/2023 (B)

     3,235,000         3,185,514   

3.46%, 08/25/2023 (B)

     1,390,000         1,381,285   

3.50%, 04/01/2042 - 04/01/2043

     7,268,751         7,225,739   

4.50%, 09/01/2043 - 11/01/2043

     4,040,426         4,286,224   

5.50%, 07/01/2016 - 06/01/2041

     3,690,209         4,020,743   

6.00%, 04/01/2014 - 05/01/2031

     1,113,396         1,242,793   

6.03%, 09/01/2037 (B)

     32,710         33,564   

Freddie Mac, IO

     

0.90%, 10/25/2022 (B)

     18,374,372         1,119,991   

1.39%, 11/25/2019 (B)

     58,229,534         3,838,840   

1.51%, 06/25/2022 (B)

     19,634,637         1,927,277   

1.56%, 12/25/2018 (B)

     10,200,367         672,184   

1.78%, 05/25/2019 (B)

     7,958,680         640,515   

Freddie Mac, TBA

     

2.50%

     7,100,000         7,034,270   

3.00%

     4,100,000         4,175,914   

3.50%

     28,700,000         28,475,781   

4.00%

     12,800,000         13,105,000   

4.50%

     9,900,000         10,441,019   

5.00%

     10,200,000         11,000,063   

5.50%

     900,000         982,406   

FREMF Mortgage Trust

     

Series 2012-K23, Class B

     

3.66%, 10/25/2045 - 144A (B)

     1,240,000         1,138,019   

Series 2012-K706, Class C

     

4.02%, 11/25/2044 - 144A (B)

     319,700         309,139   

Series 2012-K711, Class B

     

3.56%, 08/25/2045 - 144A (B)

     1,645,000         1,599,983   

Series 2013-K713, Class B

     

3.17%, 04/25/2046 - 144A (B)

     255,000         238,439   

Ginnie Mae

     

3.50%, 02/15/2042 - 07/15/2043

     7,734,840         7,821,465   

4.00%, 09/15/2042 - 11/20/2043

     32,628,767         34,007,699   

4.50%, 05/20/2041 - 02/15/2042

     29,884,134         32,082,378   

5.00%, 12/15/2038 - 12/15/2040

     3,244,690         3,527,944   

6.50%, 12/20/2031

     30,760         35,139   

Ginnie Mae, IO
1.02%, 02/16/2053 (B)

     10,271,372         754,371   

Ginnie Mae, TBA

     

3.00%

     14,100,000         13,623,024   

3.50%

     22,100,000         22,294,239   

4.00%

     100,000         103,910   

4.50%

     5,100,000         5,441,898   

5.00%

     11,100,000         12,030,926   

5.50%

     4,500,000         4,942,265   

Resolution Funding Corp.
Zero Coupon, 07/15/2018 -10/15/2018

     2,400,000         2,200,411   

Tennessee Valley Authority
5.98%, 04/01/2036

     440,000         514,383   

U.S. Small Business Administration Series P10A, Class 1
4.50%, 02/10/2014

     91,444         91,684   
    

 

 

  

Total U.S. Government Agency Obligations (cost $523,591,547)

   

      518,762,097   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    38

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

FOREIGN GOVERNMENT OBLIGATIONS - 1.3%

  

   

Brazilian Government International Bond
7.13%, 01/20/2037

     $  670,000         $  767,150   

Hellenic Republic Government Bond
2.00%, 02/24/2023 - Reg S (C)

     EUR  1,780,000         1,647,731   

Italy Buoni Poliennali Del Tesoro
2.55%, 10/22/2016 - Reg S

     2,426,672         3,417,658   

Mexico Government International Bond
4.00%, 10/02/2023

     $  5,298,000         5,245,020   

Poland Government International Bond
Series 2013-NPL1, Class A
5.00%, 03/23/2022

     1,200,000         1,282,500   

South Africa Government International Bond
4.67%, 01/17/2024 (A)

     1,060,000         1,013,625   

Spain Government Bond
4.40%, 10/31/2023 - Reg S

     EUR  2,605,000         3,648,562   
    

 

 

  

Total Foreign Government Obligations
(cost $17,065,624)

   

      17,022,246   
    

 

 

  

MORTGAGE-BACKED SECURITIES - 15.5%

  

   

Adjustable Rate Mortgage Trust
Series 2004-2, Class 7A2
1.01%, 02/25/2035 (B)

     $  16,322         16,124   

Banc of America Commercial Mortgage Trust
Series 2007-3, Class A1A
5.65%, 06/10/2049 (B)

     3,490,802         3,801,246   

Banc of America Funding Corp.
Series 2005-E, Class 4A1
2.67%, 03/20/2035 (B)

     301,979         303,389   

Banc of America Merrill Lynch Commercial Mortgage, Inc.

     

Series 2007-1, Class AMFX

     

5.48%, 01/15/2049 (B)

     245,000         255,808   

Series 2007-3, Class A2

     

5.65%, 06/10/2049 (B)

     194,540         194,349   

Series 2007-3, Class A4

     

5.65%, 06/10/2049 (B)

     4,240,000         4,685,331   

Series 2007-3, Class AM

     

5.65%, 06/10/2049 (B)

     1,755,000         1,931,911   

Banc of America Re-REMIC Trust
Series 2010-UB4, Class A4A
5.01%, 12/20/2041 - 144A (B)

     2,774,043         2,827,776   

Bear Stearns Adjustable Rate Mortgage Trust
Series 2005-1, Class 4A1
5.18%, 03/25/2035 (B)

     1,414,768         1,367,364   

Bear Stearns Alt-A Trust
Series 2004-11, Class 2A2
2.76%, 11/25/2034 (B)

     122,907         105,333   

Bear Stearns Commercial Mortgage Securities Trust

     

Series 2005-PW10, Class AM

     

5.45%, 12/11/2040 (B)

     610,000         651,332   

Series 2006-PW14, Class A1A

     

5.19%, 12/11/2038

     3,087,899         3,375,272   

Series 2007-PW15, Class A1A

     

5.32%, 02/11/2044

     2,100,622         2,300,341   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Bear Stearns Commercial Mortgage Securities Trust (continued)

  

Series 2007-PW17, Class A1A

     

5.65%, 06/11/2050 (B)

     $  2,118,441         $  2,343,641   

Bear Stearns Mortgage Funding Trust
Series 2006-AR5, Class 1A2
0.38%, 12/25/2046 (B)

     331,541         91,536   

CD Mortgage Trust
Series 2007-CD5, Class AMA
6.12%, 11/15/2044 (B)

     255,000         284,064   

Citigroup Commercial Mortgage Trust, IO
Series 2013-GC15, Class XA
1.31%, 09/10/2046 (B)

     6,557,291         487,030   

COMM Mortgage Trust
Series 2010-RR1, Class GEB
5.54%, 12/11/2049 - 144A (B)

     960,000         1,035,361   

Commercial Mortgage Pass-Through Certificates

     

Series 2006-C8, Class AM

     

5.35%, 12/10/2046

     2,050,000         2,239,365   

Series 2012-LTRT, Class A2

     

3.40%, 10/05/2030 - 144A

     1,560,000         1,443,950   

Series 2013-CR11, Class AM

     

4.72%, 10/10/2046 (B)

     565,000         585,889   

Series 2013-FL3, Class A

     

1.68%, 10/13/2028 - 144A (B)

     2,565,000         2,573,734   

Series 2013-GAM, Class A2

     

3.37%, 02/10/2028 - 144A

     2,110,000         2,005,852   

Commercial Mortgage Pass-Through Certificates, IO

     

Series 2012-CR1, Class XA

     

2.23%, 05/15/2045 (B)

     9,933,507         1,188,524   

Series 2013-LC6, Class XA

     

1.80%, 01/10/2046 (B)

     41,000,683         3,932,744   

Commercial Mortgage Trust

     

Series 2005-GG3, Class A3

     

4.57%, 08/10/2042

     1,481,404         1,480,144   

Series 2007-GG11, Class A4

     

5.74%, 12/10/2049

     870,000         971,584   

Countrywide Alternative Loan Trust

     

Series 2005-36, Class 2A1A

     

0.48%, 08/25/2035 (B)

     1,654,563         1,183,979   

Series 2005-50CB, Class 1A1

     

5.50%, 11/25/2035

     3,287,664         2,964,013   

Series 2005-51, Class 3A3A

     

0.49%, 11/20/2035 (B)

     1,470,780         1,152,202   

Series 2006-OA21, Class A1

     

0.36%, 03/20/2047 (B)

     4,099,660         2,992,190   

Series 2007-22, Class 2A16

     

6.50%, 09/25/2037

     9,618,927         7,424,889   

Series 2007-5CB, Class 1A31

     

5.50%, 04/25/2037

     2,379,915         1,766,337   

Countrywide Home Loan Mortgage Pass-Through Trust

     

Series 2003-60, Class 1A1

     

3.01%, 02/25/2034 (B)

     168,774         165,538   

Series 2004-23, Class A

     

2.44%, 11/25/2034 (B)

     94,296         75,092   

Series 2005-3, Class 1A2

     

0.46%, 04/25/2035 (B)

     300,831         258,797   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    39

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Credit Suisse Commercial Mortgage Trust
Series 2007-C2, Class A2
5.45%, 01/15/2049 (B)

     $  75,347         $  75,197   

Credit Suisse First Boston Mortgage Securities Corp.

     

Series 2004-AR5, Class 7A2

     

2.64%, 06/25/2034 (B)

     302,259         298,952   

Series 2005-C3, Class AJ

     

4.77%, 07/15/2037

     380,000         391,549   

Credit Suisse Mortgage Capital Certificates

     

Series 2007-TF2A, Class A3

     

0.44%, 04/15/2022 - 144A (B)

     2,695,000         2,589,008   

Series 2011-4R, Class 5A1

     

2.56%, 05/27/2036 - 144A (B)

     2,874,283         2,639,503   

DBRR Trust

     

Series 2011-C32, Class A3A

     

5.73%, 06/17/2049 - 144A (B)

     1,320,000         1,438,738   

Series 2012-EZ1, Class A

     

0.95%, 09/25/2045 - 144A

     3,376,390         3,376,549   

Series 2013-EZ3, Class A

     

1.64%, 12/18/2049 - 144A (B)

     1,605,697         1,608,207   

Deutsche Mortgage Securities, Inc.
Re-REMIC Trust Certificates
Series 2005-WF1, Class 1A3
5.23%, 06/26/2035 - 144A (B)

     846,833         851,550   

Extended Stay America Trust

     

Series 2013-ESH5, Class C5

     

2.68%, 12/05/2031 - 144A

     1,210,000         1,182,090   

Series 2013-ESH7, Class A27

     

2.96%, 12/05/2031 - 144A

     1,630,000         1,581,744   

First Horizon Alternative Mortgage Securities
Series 2006-FA8, Class 1A8
0.54%, 02/25/2037 (B)

     356,190         238,309   

GMAC Mortgage Corp., Loan Trust

     

Series 2003-AR2, Class 1A1

     

3.17%, 12/19/2033 (B)

     34,712         33,294   

Series 2005-AR1, Class 3A

     

3.08%, 03/18/2035 (B)

     96,888         93,147   

Greenpoint Mortgage Funding Trust
Series 2006-AR4, Class A1A
0.27%, 09/25/2046 (B)

     3         3   

Greenwich Capital Commercial Funding Corp.
Series 2007-GG11, Class AM
5.87%, 12/10/2049 (B)

     1,175,000         1,287,480   

GS Mortgage Securities Corp. II

     

Series 2005-GG4, Class A4A

     

4.75%, 07/10/2039

     3,133,960         3,246,604   

Series 2012-ALOH, Class A

     

3.55%, 04/10/2034 - 144A

     1,360,000         1,337,171   

Series 2012-SHOP, Class C

     

3.63%, 06/05/2031 - 144A

     410,000         411,208   

Series 2013-KING, Class E

     

3.44%, 12/10/2027 - 144A (B)

     3,320,000         2,888,911   

GS Mortgage Securities Corp. II, IO

     

Series 2013-GC10, Class XA

     

1.77%, 02/10/2046 (B)

     40,483,494         4,324,285   

Series 2013-KYO, Class XB1

     

3.25%, 11/08/2029 - 144A (B)

     20,730,000         955,906   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

GS Mortgage Securities Trust

     

Series 2006-GG8, Class AJ

     

5.62%, 11/10/2039

     $  1,740,000         $  1,704,132   

Series 2006-GG8, Class AM

     

5.59%, 11/10/2039

     710,000         778,218   

Series 2007-GG10, Class A1A

     

5.80%, 08/10/2045 (B)

     2,393,080         2,627,128   

GSR Mortgage Loan Trust
Series 2005-AR1, Class 2A1
2.62%, 01/25/2035 (B)

     2,224,926         2,221,638   

Hilton USA Trust

     

4.61%, 11/05/2030

     970,000         970,792   

Series 2013-HLT, Class EFX

     

5.22%, 11/05/2030 - 144A (B)

     2,745,000         2,760,553   

Hilton USA Trust, IO
Series 2013-HLT, Class X1FX
1.67%, 11/05/2030 - 144A (B)

     22,320,000         371,940   

Impac CMB Trust
Series 2004-6, Class 1A1
0.97%, 10/25/2034 (B)

     58,897         55,765   

IndyMac INDA Mortgage Loan Trust
Series 2007-AR7, Class 1A1
2.80%, 11/25/2037 (B)

     593,185         541,585   

IndyMac Index Mortgage Loan Trust

     

Series 2005-AR14, Class 2A1A

     

0.47%, 07/25/2035 (B)

     1,449,566         1,270,497   

Series 2007-AR15, Class 2A1

     

4.52%, 08/25/2037 (B)

     922,738         768,631   

JPMorgan Chase Commercial Mortgage Securities Corp.

     

Series 2004-CB8, Class A1A

     

4.16%, 01/12/2039 - 144A

     494,147         495,584   

Series 2006-CB14, Class AM

     

5.45%, 12/12/2044 (B)

     2,000,000         2,147,508   

Series 2006-LDP9, Class AM

     

5.37%, 05/15/2047

     465,000         491,268   

Series 2007-CB18, Class A3

     

5.45%, 06/12/2047

     652,551         660,036   

Series 2007-LD11, Class ASB

     

5.81%, 06/15/2049 (B)

     1,269,662         1,356,885   

Series 2013-C10, Class C

     

4.16%, 12/15/2047 (B)

     785,000         740,763   

JPMorgan Chase Commercial Mortgage Securities Corp., IO

     

Series 2012-CBX, Class XA

     

2.01%, 06/15/2045 (B)

     9,712,985         954,777   

Series 2013-LC11, Class XA

     

1.59%, 04/15/2046 (B)

     10,690,922         1,020,406   

Series 2013-LC11, Class XB

     

0.59%, 04/15/2046 (B)

     1,908,000         84,999   

JPMorgan Chase Commercial Mortgage Securities Trust

     

Series 2007-CB18, Class A1A

     

5.43%, 06/12/2047 (B)

     4,312,468         4,728,216   

Series 2007-LD12, Class A1A

     

5.85%, 02/15/2051 (B)

     3,969,879         4,455,851   

Series 2007-LDPX, Class A1A

     

5.44%, 01/15/2049

     3,129,440         3,448,627   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    40

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

JPMorgan Mortgage Trust

     

Series 2004-A1, Class 1A1

     

2.30%, 02/25/2034 (B)

     $  145,136         $  142,610   

Series 2006-A2, Class 5A1

     

2.55%, 11/25/2033 (B)

     137,330         136,633   

Series 2006-S3, Class 1A12

     

6.50%, 08/25/2036

     668,143         582,431   

LB-UBS Commercial Mortgage Trust

     

Series 2005-C2, Class AJ

     

5.21%, 04/15/2030 (B)

     1,280,000         1,325,187   

Series 2007-C2, Class A3

     

5.43%, 02/15/2040

     8,005,819         8,819,259   

Series 2007-C7, Class A3

     

5.87%, 09/15/2045 (B)

     3,768,657         4,179,659   

Series 2007-C7, Class AM

     

6.16%, 09/15/2045 (B)

     900,000         1,028,695   

MASTR Adjustable Rate Mortgages Trust
Series 2007-R5, Class A1
2.53%, 11/25/2035 - 144A (B)

     763,223         511,375   

Merrill Lynch Mortgage Investors Trust

     

Series 2003-F, Class A1

     

0.81%, 10/25/2028 (B)

     66,388         65,632   

Series 2004-A1, Class 2A1

     

2.45%, 02/25/2034 (B)

     302,789         301,794   

Series 2004-A3, Class 4A3

     

5.05%, 05/25/2034 (B)

     166,271         163,009   

Series 2005-A3, Class A1

     

0.44%, 04/25/2035 (B)

     69,230         66,780   

Series 2005-A4, Class 2A2

     

2.68%, 07/25/2035 (B)

     327,073         287,035   

Merrill Lynch Mortgage Trust

     

Series 2005-CKI1, Class AJ

     

5.28%, 11/12/2037 (B)

     1,760,000         1,850,997   

Series 2007-C1, Class A1A

     

5.86%, 06/12/2050 (B)

     1,184,263         1,267,610   

Morgan Stanley Bank of America Merrill Lynch Trust, IO
Series 2013-C7, Class XA
1.75%, 02/15/2046 (B)

     9,130,295         896,221   

Morgan Stanley Capital I Trust

     

Series 2007-HQ12, Class AM

     

5.60%, 04/12/2049 (B)

     2,855,000         3,115,362   

Series 2007-IQ13, Class A1A

     

5.31%, 03/15/2044

     4,264,417         4,671,482   

Series 2007-IQ13, Class AM

     

5.41%, 03/15/2044

     1,090,000         1,184,825   

Series 2007-IQ14, Class A1A

     

5.67%, 04/15/2049 (B)

     1,587,482         1,733,003   

Series 2007-IQ15, Class AM

     

5.91%, 06/11/2049 (B)

     2,575,000         2,770,110   

Morgan Stanley Capital I Trust, IO
Series 2012-C4, Class XA
2.67%, 03/15/2045 - 144A (B)

     17,828,267         2,201,951   

Morgan Stanley Capital I, Inc.
Series 1998-WF2, Class G
6.34%, 07/15/2030 - 144A (B)

     457,625         463,416   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Morgan Stanley Mortgage Loan Trust

     

Series 2004-8AR, Class 4A2

     

2.46%, 10/25/2034 (B)

     $  306,573         $  307,726   

Series 2006-3AR, Class 2A3

     

2.84%, 03/25/2036 (B)

     633,180         493,090   

Morgan Stanley Re-REMIC Trust

     

Series 2011-IO, Class A

     

2.50%, 03/23/2051 - 144A

     950,599         962,767   

Series 2012-IO, Class AXB2

     

1.00%, 03/27/2051 - 144A

     1,120,000         1,097,600   

Series 2012-IO, Class XAB1

     

1.00%, 03/27/2051 - 144A

     1,034,122         1,034,101   

Series 2012-XA, Class A

     

2.00%, 07/27/2049 - 144A

     2,028,176         2,044,402   

Motel 6 Trust
Series 2012-MTL6, Class B
2.74%, 10/05/2025 - 144A

     3,735,000         3,704,492   

NACC Reperforming Loan REMIC Trust
Series 2004-R2, Class A1
6.50%, 10/25/2034 - 144A (B)

     123,729         126,456   

Prime Mortgage Trust
Series 2006-DR1, Class 2A2
6.00%, 05/25/2035 - 144A

     681,486         685,945   

Queens Center Mortgage Trust
Series 2013-QCA, Class D
3.47%, 01/11/2037 - 144A (B)

     4,200,000         3,564,691   

RALI Trust

     

Series 2007-QO1, Class A1

     

0.32%, 02/25/2047 (B)

     687,542         537,473   

Series 2007-QO4, Class A1A

     

0.36%, 05/25/2047 (B)

     1,330,490         1,030,714   

RBSCF Trust
Series 2010-RR3, Class WBTA
5.92%, 02/16/2051 - 144A (B)

     7,423,133         8,109,758   

RBSGC Mortgage Pass-Through Certificates
Series 2007-B, Class 1A4
0.62%, 01/25/2037 (B)

     588,254         393,794   

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

     13,873         13,873   

SCG Trust
Series 2013-SRP1, Class AJ
2.12%, 11/15/2026 - 144A (B)

     1,140,000         1,140,016   

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

     2,914,244         2,885,102   

Structured Adjustable Rate Mortgage Loan Trust

     

Series 2004-20, Class 3A1

     

2.49%, 01/25/2035 (B)

     575,389         525,779   

Series 2005-15, Class 1A1

     

1.65%, 07/25/2035 (B)

     827,470         678,231   

Series 2007-3, Class 3A1

     

8.26%, 04/25/2047 (B)

     2,316,725         1,758,774   

Structured Asset Mortgage Investments, Inc.
Series 2003-AR4, Class A1
0.87%, 01/19/2034 (B)

     81,734         79,496   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    41

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Voyager BRSTN Delaware Trust, IO
Series 2009-1, Class UAU7
0.42%, 12/26/2036 - 144A (B)

     $  462,958         $  417,193   

Wachovia Bank Commercial Mortgage Trust
Series 2007-C33, Class AJ
5.92%, 02/15/2051 (B)

     1,835,000         1,837,965   

WaMu Mortgage Pass-Through Certificates

     

Series 2005-AR8, Class 2A1A

     

0.46%, 07/25/2045 (B)

     85,231         79,669   

Series 2006-AR14, Class 1A3

     

2.07%, 11/25/2036 (B)

     1,452,269         1,220,947   

Series 2006-AR3, Class A1A

     

1.11%, 05/25/2046 (B)

     1,921,684         1,357,295   

Series 2007-OA6, Class 1A1B

     

0.95%, 07/25/2047 (B)

     1,860,710         626,211   

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

     1,730,017         1,719,637   

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

     2,430,000         2,303,001   

WF-RBS Commercial Mortgage Trust, IO

     

Series 2012-C10, Class XA

     

1.83%, 12/15/2045 - 144A (B)

     15,217,988         1,633,803   

Series 2013-C15, Class XA

     

0.72%, 08/15/2046 (B)

     16,651,957         703,046   
    

 

 

  

Total Mortgage-Backed Securities (cost $208,248,708)

  

      206,805,358   
    

 

 

  

ASSET-BACKED SECURITIES - 17.2%

  

   

AmeriCredit Automobile Receivables Trust

  

Series 2011-5, Class C

     

3.44%, 10/08/2017

     1,650,000         1,708,115   

Series 2012-2, Class C

     

2.64%, 10/10/2017

     1,400,000         1,439,676   

Series 2012-3, Class C

     

2.42%, 05/08/2018

     1,350,000         1,374,042   

Series 2012-4, Class B

     

1.31%, 11/08/2017

     785,000         787,460   

Series 2012-4, Class C

     

1.93%, 08/08/2018

     1,235,000         1,243,620   

Series 2012-5, Class C

     

1.69%, 11/08/2018

     975,000         973,453   

Series 2013-4, Class B

     

1.66%, 09/10/2018

     520,000         521,800   

Series 2013-4, Class C

     

2.72%, 09/09/2019

     320,000         323,758   

Series 2013-4, Class D

     

3.31%, 10/08/2019

     745,000         755,449   

Series 2013-5, Class B

     

1.52%, 01/08/2019

     555,000         553,059   

Series 2013-5, Class C

     

2.29%, 11/08/2019

     295,000         295,008   

Amortizing Residential Collateral Trust Series 2002-BC5, Class M1
1.20%, 07/25/2032 (B)

     241,166         215,309   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

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

     EUR 1,475,265         $  2,045,335   

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

     $  2,130,000         2,103,475   

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

     976,099         1,023,063   

Chesapeake Funding LLC

     

Series 2012-1A, Class B

     

1.77%, 11/07/2023 - 144A (B)

     1,235,000         1,239,798   

Series 2012-1A, Class C

     

2.17%, 11/07/2023 - 144A (B)

     795,000         798,079   

CHLUPA Trust Series 2013-VM, Class A 3.33%, 08/15/2020 - 144A

     2,691,466         2,694,830   

Chrysler Capital Auto Receivables Trust

     

Series 2013-BA, Class A2

     

0.56%, 12/15/2016 - 144A

     1,830,000         1,829,998   

Series 2013-BA, Class A3

     

0.85%, 05/15/2018 - 144A

     1,600,000         1,599,850   

Series 2013-BA, Class A4

     

1.27%, 03/15/2019 - 144A

     1,105,000         1,105,017   

Series 2013-BA, Class B

     

1.78%, 06/17/2019 - 144A

     510,000         509,937   

Series 2013-BA, Class C

     

2.24%, 09/16/2019 - 144A

     520,000         519,847   

Series 2013-BA, Class D

     

2.89%, 10/15/2020 - 144A

     515,000         514,833   

Conseco Finance Securitizations Corp.

     

Series 2002-1, Class A

     

6.68%, 12/01/2033 (B)

     319,276         323,468   

Series 2002-2, Class A2

     

6.03%, 03/01/2033 (B)

     731,001         749,329   

Countrywide Home Equity Loan Trust
Series 2006-RES, Class 4Q1B
0.47%, 12/15/2033 - 144A (B)

     257,548         199,837   

Credit Acceptance Auto Loan Trust

     

Series 2012-2A, Class A

     

1.52%, 03/16/2020 - 144A

     1,780,000         1,785,000   

Series 2013-1A, Class A

     

1.21%, 10/15/2020 - 144A

     1,060,000         1,060,735   

DT Auto Owner Trust

     

Series 2011-3A, Class C

     

4.03%, 02/15/2017 - 144A

     372,411         372,862   

Series 2012-1A, Class B

     

2.26%, 10/16/2017 - 144A

     331,583         331,814   

Series 2012-1A, Class C

     

3.38%, 10/16/2017 - 144A

     810,000         814,350   

Series 2012-1A, Class D

     

4.94%, 07/16/2018 - 144A

     1,750,000         1,805,149   

Series 2012-2A, Class B

     

1.85%, 04/17/2017 - 144A

     260,000         260,543   

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

     1,210,000         1,221,954   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    42

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

Ford Credit Floorplan Master Owner Trust

     

Series 2012-1, Class C

     

1.67%, 01/15/2016 (B)

     $  1,120,000         $  1,120,469   

Series 2012-1, Class D

     

2.27%, 01/15/2016 (B)

     1,830,000         1,830,913   

Series 2012-2, Class C

     

2.86%, 01/15/2019

     455,000         466,696   

Series 2012-2, Class D

     

3.50%, 01/15/2019

     815,000         845,247   

Series 2012-4, Class D

     

2.09%, 09/15/2016

     1,595,000         1,604,395   

HLSS Servicer Advance Receivables Backed Notes

     

Series 2012-T2, Class A2

     

1.99%, 10/15/2045 - 144A

     1,345,000         1,353,877   

Series 2013-T1, Class A2

     

1.50%, 01/16/2046 - 144A

     3,550,000         3,536,865   

Series 2013-T2, Class B2

     

1.50%, 05/16/2044 - 144A

     440,000         438,372   

Series 2013-T3, Class A3

     

1.79%, 05/15/2046 - 144A

     6,720,000         6,574,848   

Series 2013-T5, Class AT5

     

1.98%, 08/15/2046 - 144A

     1,170,000         1,170,585   

Series 2013-T6, Class AT6

     

1.29%, 09/15/2044 - 144A

     2,270,000         2,268,638   

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

     2,235,000         2,294,196   

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

     7,211,555         8,045,456   

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

     790,749         831,357   

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

     1,348,065         1,402,043   

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

     3,680,000         3,586,565   

Nationstar Mortgage Advance Receivables Trust

     

Series 2013-T1A, Class A1

     

1.08%, 06/20/2044 - 144A

     3,770,000         3,767,608   

Series 2013-T2A, Class A2

     

1.68%, 06/20/2046 - 144A

     5,365,000         5,356,846   

Nelnet Student Loan Trust

     

Series 2006-1, Class A5

     

0.35%, 08/23/2027 (B)

     2,230,000         2,176,908   

Series 2008-3, Class A4

     

1.89%, 11/25/2024 (B)

     2,500,000         2,597,462   

PFS Financing Corp.
Series 2012-AA, Class A
1.37%, 02/15/2016 - 144A (B)

     2,544,000         2,545,669   

RAAC
Series 2007-RP4, Class A
0.52%, 11/25/2046 - 144A (B)

     1,097,405         856,419   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

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

     $  1,470,307         $  805,080   

Santander Drive Auto Receivables Trust

     

Series 2011-S1A, Class B

     

1.48%, 05/15/2017 - 144A

     511,617         511,872   

Series 2012-1, Class B

     

2.72%, 05/16/2016

     1,000,000         1,011,100   

Series 2012-1, Class C

     

3.78%, 11/15/2017

     1,345,000         1,390,618   

Series 2012-2, Class C

     

3.20%, 02/15/2018

     4,455,000         4,578,635   

Series 2012-3, Class B

     

1.94%, 12/15/2016

     3,285,000         3,315,219   

Series 2012-3, Class C

     

3.01%, 04/16/2018

     4,475,000         4,605,272   

Series 2012-4, Class C

     

2.94%, 12/15/2017

     1,400,000         1,440,817   

Series 2012-5, Class B

     

1.56%, 08/15/2018

     750,000         755,084   

Series 2012-5, Class C

     

2.70%, 08/15/2018

     355,000         364,661   

Series 2012-6, Class B

     

1.33%, 05/15/2017

     1,555,000         1,559,422   

Series 2012-6, Class C

     

1.94%, 03/15/2018

     1,635,000         1,648,108   

Series 2012-AA, Class B

     

1.21%, 10/16/2017 - 144A

     3,780,000         3,783,591   

Series 2012-AA, Class C

     

1.78%, 11/15/2018 - 144A

     7,060,000         7,041,002   

Series 2013-2, Class B

     

1.33%, 03/15/2018

     3,740,000         3,749,343   

Series 2013-3, Class B

     

1.19%, 05/15/2018

     3,320,000         3,305,289   

Series 2013-4, Class C

     

3.25%, 01/15/2020

     1,560,000         1,602,629   

Series 2013-4, Class E

     

4.67%, 01/15/2020 - 144A

     3,325,000         3,413,937   

Series 2013-5, Class B

     

1.55%, 10/15/2018

     4,255,000         4,248,098   

Series 2013-5, Class C

     

2.25%, 06/17/2019

     2,015,000         2,008,111   

Series 2013-A, Class B

     

1.89%, 10/15/2019 - 144A

     2,355,000         2,370,260   

Series 2013-A, Class C

     

3.12%, 10/15/2019 - 144A

     910,000         933,304   

Series 2013-A, Class D

     

3.78%, 10/15/2019 - 144A

     595,000         613,380   

Scholar Funding Trust

     

Series 2011-A, Class A

     

1.14%, 10/28/2043 - 144A (B)

     1,451,728         1,453,300   

Series 2013-A, Class A

     

0.82%, 01/30/2045 - 144A (B)

     6,670,291         6,611,898   

Securitized Asset Backed Receivables LLC
Series 2007-BR3, Class A2B
0.39%, 04/25/2037 (B)

     2,337,392         1,342,476   

SLC Private Student Loan Trust
Series 2006-A, Class A5
0.41%, 07/15/2036 (B)

     3,935,000         3,880,787   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    43

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

SLC Student Loan Trust
Series 2008-1, Class A4A
1.84%, 12/15/2032 (B)

     $  400,000         $  415,479   

SLM Private Credit Student Loan Trust

     

Series 2002-A, Class A2

     

0.79%, 12/16/2030 (B)

     1,806,939         1,761,426   

Series 2004-B, Class A2

     

0.44%, 06/15/2021 (B)

     2,697,437         2,665,581   

Series 2005-B, Class A2

     

0.42%, 03/15/2023 (B)

     1,278,991         1,250,993   

SLM Private Education Loan Trust

     

Series 2012-A, Class A1

     

1.57%, 08/15/2025 - 144A (B)

     963,360         972,614   

Series 2012-A, Class A2

     

3.83%, 01/17/2045 - 144A

     3,340,000         3,465,621   

Series 2012-C, Class A1

     

1.27%, 08/15/2023 - 144A (B)

     1,919,140         1,929,996   

Series 2012-C, Class A2

     

3.31%, 10/15/2046 - 144A

     4,850,000         5,015,458   

Series 2012-D, Class A2

     

2.95%, 02/15/2046 - 144A

     6,220,000         6,344,736   

Series 2012-E, Class A1

     

0.92%, 10/16/2023 - 144A (B)

     1,785,168         1,786,293   

Series 2013-A, Class A1

     

0.77%, 08/15/2022 - 144A (B)

     906,522         905,138   

Series 2013-A, Class A2A

     

1.77%, 05/17/2027 - 144A

     1,535,000         1,488,870   

Series 2013-B, Class A2A

     

1.85%, 06/17/2030 - 144A

     2,130,000         2,054,119   

Series 2013-C, Class A1

     

1.02%, 02/15/2022 - 144A (B)

     3,241,377         3,250,300   

Series 2013-C, Class A2A

     

2.94%, 10/15/2031 - 144A

     2,560,000         2,586,980   

Series 2013-C, Class A2B

     

1.57%, 10/15/2031 - 144A (B)

     1,360,000         1,362,944   

SLM Student Loan Trust

     

Series 2003-11, Class A6

     

0.99%, 12/15/2025 - 144A (B)

     3,430,000         3,401,281   

Series 2008-5, Class A4

     

1.94%, 07/25/2023 (B)

     3,860,000         4,035,109   

Series 2011-B, Class A2

     

3.74%, 02/15/2029 - 144A

     595,000         620,580   

Series 2011-C, Class A2B

     

4.54%, 10/17/2044 - 144A

     1,930,000         2,073,204   

Series 2012-B, Class A2

     

3.48%, 10/15/2030 - 144A

     2,555,000         2,668,664   

Series 2013-6, Class A3

     

0.82%, 06/26/2028 (B)

     3,355,000         3,355,081   

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

     5,972,855         5,987,787   

Structured Asset Securities Corp.

     

Series 2003-AL2, Class A

     

3.36%, 01/25/2031 - 144A

     2,057,605         2,004,295   

Series 2007-TC1, Class A

     

0.47%, 04/25/2031 - 144A (B)

     1,246,783         1,153,216   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

   

World Financial Network Credit Card Master Trust

     

Series 2012-C, Class A

     

2.23%, 08/15/2022

     $  4,000,000         $  3,964,144   

Series 2012-D, Class A

     

2.15%, 04/17/2023

     4,780,000         4,651,681   
    

 

 

  

Total Asset-Backed Securities (cost $229,503,491)

  

      229,286,169   
    

 

 

  

MUNICIPAL GOVERNMENT OBLIGATIONS - 0.3%

  

New York City Water & Sewer System (Revenue Bonds)

     

5.38%, 06/15/2043

     1,670,000         1,755,387   

5.50%, 06/15/2043

     2,000,000         2,118,260   
    

 

 

  

Total Municipal Government Obligations (cost $3,618,406)

   

      3,873,647   
    

 

 

  

PREFERRED CORPORATE DEBT SECURITIES - 0.1%

  

   

Capital Markets - 0.0% (D)

     

State Street Capital Trust IV
1.24%, 06/15/2037 (B)

     290,000         219,095   

Diversified Financial Services - 0.0% (D)

  

   

Lehman Brothers Holdings Capital Trust VII,
Series MTN
5.86%, 01/31/2014 (E) (F) (G) (H)

     1,945,000         194   

Insurance - 0.1%

  

   

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

     740,000         849,150   
    

 

 

  

Total Preferred Corporate Debt Securities (cost $2,979,172)

   

      1,068,439   
    

 

 

  

CORPORATE DEBT SECURITIES - 26.0%

  

   

Airlines - 0.2%

     

United Continental Holdings, Inc.

     

6.00%, 07/15/2028

     735,000         619,238   

8.00%, 07/15/2024 (A)

     2,240,000         2,246,720   

Auto Components - 0.0% (D)

  

   

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

     EUR  100,000         144,724   

Automobiles - 0.1%

     

General Motors Co.

     

4.88%, 10/02/2023 - 144A (A)

     $  850,000         860,625   

6.25%, 10/02/2043 - 144A (A)

     500,000         519,375   

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

     GBP  110,000         206,290   

Biotechnology - 0.2%

     

Amgen, Inc.

     

5.15%, 11/15/2041

     $  800,000         797,029   

5.65%, 06/15/2042

     1,410,000         1,493,241   

Building Products - 0.0% (D)

     

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

     EUR  110,000         158,137   

Capital Markets - 1.3%

     

Bank of New York Mellon Corp.,
Series MTN
2.10%, 01/15/2019

     $  2,615,000         2,591,988   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    44

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Capital Markets (continued)

     

Goldman Sachs Group, Inc.

     

3.63%, 02/07/2016

     $  1,055,000         $  1,107,201   

3.63%, 01/22/2023 (A)

     1,735,000         1,680,092   

5.75%, 01/24/2022 (A)

     1,181,000         1,329,438   

Goldman Sachs Group, Inc.,
Series MTN
1.84%, 11/29/2023 (A) (B)

     2,740,000         2,782,399   

Morgan Stanley

     

3.45%, 11/02/2015 (A)

     3,468,000         3,609,862   

3.80%, 04/29/2016

     1,045,000         1,105,432   

Morgan Stanley,
Series MTN
5.00%, 11/24/2025 (A)

     2,910,000         2,918,701   

Chemicals - 0.6%

     

LYB International Finance BV
5.25%, 07/15/2043

     17,000         17,089   

LyondellBasell Industries NV
5.00%, 04/15/2019

     7,097,000         7,882,077   

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

     EUR  130,000         181,524   

Commercial Banks - 1.2%

  

   

ABN AMRO Bank NV,
Series MTN
6.38%, 04/27/2021 - Reg S

     380,000         604,049   

Caixa Economica Federal
2.38%, 11/06/2017 - 144A

     $  1,650,000         1,532,438   

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

     EUR  1,000,000         1,521,723   

Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
5.75%, 12/01/2043 (A)

     $  484,000         513,082   

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

     290,000         84,825   

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

     5,850,000         5,945,062   

Landsbanki Islands HF
6.10%, 08/25/2011 - 144A (F) (H)

     320,000         28,800   

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

     170,000         181,263   

U.S. Bancorp,
Series MTN
1.95%, 11/15/2018

     2,529,000         2,515,437   

Wells Fargo & Co.

     

1.50%, 07/01/2015

     1,055,000         1,069,835   

2.15%, 01/15/2019

     952,000         949,018   

5.38%, 11/02/2043 (A)

     880,000         901,125   

Commercial Services & Supplies - 0.3%

  

   

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

     EUR  124,000         185,892   

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

     110,000         163,433   

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

     $  3,320,000         3,689,350   

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

     EUR  110,000         163,811   
     Principal      Value  

Communications Equipment - 0.1%

     

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

     $  1,550,000         $  1,450,960   

Construction & Engineering - 0.1%

     

Odebrecht Offshore Drilling Finance, Ltd.
6.75%, 10/01/2022 - 144A

     1,203,181         1,231,456   

Construction Materials - 0.0% (D)

     

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

     EUR  100,000         154,601   

Consumer Finance - 0.1%

     

Discover Financial Services
3.85%, 11/21/2022

     $  1,136,000         1,077,121   

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

     GBP  93,577         151,859   

Containers & Packaging - 0.1%

     

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

     EUR  62,000         90,411   

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

     100,000         149,607   

Rock Tenn Co.
4.00%, 03/01/2023

     $  482,000         460,354   

Diversified Financial Services - 2.4%

  

   

Bank of America Corp.

     

2.60%, 01/15/2019

     1,676,000         1,683,398   

3.70%, 09/01/2015

     4,230,000         4,421,666   

4.10%, 07/24/2023 (A)

     5,055,000         5,076,448   

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

     6,065,000         5,739,109   

Citigroup, Inc.

     

3.38%, 03/01/2023

     1,450,000         1,378,247   

4.45%, 01/10/2017

     900,000         975,419   

Ford Motor Credit Co. LLC

     

4.38%, 08/06/2023 (A)

     706,000         709,783   

5.00%, 05/15/2018

     4,159,000         4,632,748   

JPMorgan Chase & Co.

     

3.20%, 01/25/2023 (A)

     560,000         530,895   

3.25%, 09/23/2022

     1,240,000         1,188,318   

4.75%, 03/01/2015

     2,115,000         2,212,757   

Kaupthing Bank Hf
7.13%, 05/19/2016 - 144A (F) (G)

     200,000         0   

Novus USA Trust
1.54%, 02/28/2014 - 144A (B) (G)

     2,930,000         2,933,652   

Diversified Telecommunication Services - 2.4%

  

   

AT&T, Inc.
2.38%, 11/27/2018 (A)

     1,340,000         1,341,150   

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

     1,902,000         2,054,160   

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

     2,053,000         2,248,035   

Sprint Capital Corp.
6.88%, 11/15/2028 (A)

     822,000         774,735   

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

     EUR  100,000         148,575   

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

     100,000         146,271   

Verizon Communications, Inc.

     

3.65%, 09/14/2018

     $  5,735,000         6,070,865   

3.85%, 11/01/2042

     6,304,000         5,149,132   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    45

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Diversified Telecommunication Services (continued)

  

Verizon Communications, Inc. (continued)

  

   

4.50%, 09/15/2020

     $  1,160,000         $  1,241,857   

5.15%, 09/15/2023

     2,645,000         2,839,915   

6.55%, 09/15/2043

     8,011,000         9,372,542   

Virgin Media Secured Finance PLC
6.00%, 04/15/2021 - Reg S

     GBP  110,000         187,164   

Electric Utilities - 1.1%

     

Cleveland Electric Illuminating Co.

     

5.95%, 12/15/2036

     $  468,000         476,535   

8.88%, 11/15/2018

     459,000         580,563   

Dominion Gas Holdings LLC
4.80%, 11/01/2043 - 144A (A)

     173,000         167,264   

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

     1,560,000         1,452,547   

Duke Energy Florida, Inc.
6.40%, 06/15/2038

     1,000,000         1,232,950   

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

     6,135,000         6,518,438   

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

     3,370,000         3,512,831   

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

     1,025,000         1,210,429   

Electronic Equipment & Instruments - 0.0% (D)

  

   

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

     EUR  100,000         140,734   

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

     100,000         145,343   

Energy Equipment & Services - 1.5%

  

   

Enterprise Products Operating LLC
4.45%, 02/15/2043

     $  1,035,000         914,232   

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

     505,000         484,538   

Schlumberger Investment SA
3.65%, 12/01/2023 (A)

     855,000         847,556   

TransCanada PipeLines, Ltd.
3.75%, 10/16/2023 (A)

     1,035,000         1,008,771   

Transocean, Inc.

     

2.50%, 10/15/2017

     3,595,000         3,633,085   

5.05%, 12/15/2016

     2,575,000         2,844,528   

6.00%, 03/15/2018 (A)

     6,084,000         6,822,878   

6.50%, 11/15/2020 (A)

     1,610,000         1,838,523   

6.80%, 03/15/2038 (A)

     870,000         968,321   

Food & Staples Retailing - 0.1%

     

Bakkavor Finance 2 PLC
8.75%, 06/15/2020 - Reg S

     GBP  100,000         180,502   

CVS Caremark Corp.
5.30%, 12/05/2043

     $  324,000         335,069   

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

     GBP  100,000         180,912   

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

     $  1,288,000         1,146,298   

Food Products - 0.2%

     

WM Wrigley Jr. Co.
2.90%, 10/21/2019 - 144A

     2,260,000         2,241,317   

Health Care Equipment & Supplies - 0.4%

  

   

Boston Scientific Corp.
2.65%, 10/01/2018

     3,132,000         3,153,307   
     Principal      Value  

Health Care Equipment & Supplies (continued)

  

   

Edwards Lifesciences Corp.
2.88%, 10/15/2018

     $  2,414,000         $  2,399,912   

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

     GBP  110,000         183,976   

Health Care Providers & Services - 1.0%

  

   

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

     $  1,667,000         1,854,746   

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

     4,395,000         4,790,550   

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

     GBP  130,000         226,575   

Tenet Healthcare Corp.
6.25%, 11/01/2018 (A)

     $  2,010,000         2,226,075   

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

     665,000         656,795   

WellPoint, Inc.

     

1.88%, 01/15/2018

     1,975,000         1,952,902   

2.30%, 07/15/2018

     1,489,000         1,477,183   

Hotels, Restaurants & Leisure - 0.3%

  

   

Caesars Entertainment Resort Properties LLC

     

8.00%, 10/01/2020 - 144A (A)

     1,442,000         1,499,680   

11.00%, 10/01/2021 - 144A (A)

     1,595,000         1,634,875   

Carnival Corp.
3.95%, 10/15/2020

     384,000         384,296   

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

     EUR  140,000         204,154   

Enterprise Inns PLC
6.50%, 12/06/2018

     GBP  136,000         233,655   

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

     110,000         196,184   

GLP Capital, LP / GLP Financing II, Inc.

     

4.38%, 11/01/2018 - 144A (A)

     $  94,000         96,115   

4.88%, 11/01/2020 - 144A (A)

     150,000         150,000   

Household Durables - 0.0% (D)

  

   

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

     GBP  103,000         182,171   

Household Products - 0.4%

  

   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC

     

6.88%, 02/15/2021

     $  2,320,000         2,499,800   

7.88%, 08/15/2019

     2,595,000         2,867,475   

Insurance - 1.8%

  

   

Allianz Finance II BV, Series MTN
5.75%, 07/08/2041 (B)

     EUR  900,000         1,388,451   

American International Group, Inc.

     

3.38%, 08/15/2020 (A)

     $  2,515,000         2,529,627   

3.80%, 03/22/2017

     3,465,000         3,700,270   

4.13%, 02/15/2024

     1,439,000         1,430,658   

8.18%, 05/15/2058 (B)

     1,095,000         1,324,950   

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

     1,555,000         1,738,055   

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

     680,000         707,832   

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

    EUR  300,000         477,351   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    46

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Insurance (continued)

  

   

Prudential Financial, Inc.
5.88%, 09/15/2042 (B)

     $  297,000         $  301,826   

Prudential Financial, Inc.,
Series MTN

     

4.50%, 11/15/2020 (A)

     1,000,000         1,072,792   

4.75%, 09/17/2015

     1,686,000         1,796,672   

5.38%, 06/21/2020

     1,500,000         1,695,170   

7.38%, 06/15/2019

     1,630,000         2,001,130   

XL Group PLC
6.50%, 04/15/2017 (A) (B) (E)

     3,100,000         3,049,625   

XLIT, Ltd.

     

2.30%, 12/15/2018

     666,000         654,138   

5.25%, 12/15/2043 (A)

     303,000         305,029   

Internet Software & Services - 0.0% (D)

  

   

Cerved Group SpA,
Series MTN
8.00%, 01/15/2021 - Reg S

     EUR  110,000         160,028   

IT Services - 0.2%

     

International Business Machines
Corp. 3.38%, 08/01/2023 (A)

     $  2,175,000         2,119,111   

Life Sciences Tools & Services - 0.3%

  

   

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

     1,685,000         1,936,100   

Thermo Fisher Scientific, Inc.

     

2.40%, 02/01/2019

     2,328,000         2,306,329   

5.30%, 02/01/2044

     177,000         178,978   

Media - 2.6%

     

21st Century Fox America, Inc.
7.63%, 11/30/2028

     1,070,000         1,327,166   

CBS Corp.

     

4.63%, 05/15/2018

     670,000         726,333   

5.75%, 04/15/2020

     530,000         594,938   

8.88%, 05/15/2019

     1,460,000         1,866,654   

Comcast Corp.

     

4.65%, 07/15/2042

     3,112,000         2,896,040   

5.88%, 02/15/2018

     2,709,000         3,107,207   

COX Communications, Inc.

     

4.70%, 12/15/2042 - 144A (A)

     906,000         760,882   

8.38%, 03/01/2039 - 144A

     3,525,000         4,275,028   

DIRECTV Holdings LLC / DIRECTV Financing Co., Inc.

     

3.80%, 03/15/2022 (A)

     965,000         927,014   

5.00%, 03/01/2021

     1,855,000         1,948,694   

5.15%, 03/15/2042

     1,605,000         1,441,454   

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

     1,500,000         1,485,000   

NBCUniversal Media LLC

     

4.38%, 04/01/2021 (A)

     575,000         608,593   

4.45%, 01/15/2043 (A)

     1,389,000         1,244,299   

5.15%, 04/30/2020

     2,296,000         2,566,345   

Time Warner Cable, Inc.

     

8.25%, 04/01/2019

     5,090,000         5,962,960   

8.75%, 02/14/2019 (A)

     2,108,000         2,514,511   

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

     EUR  130,000         207,618   

Metals & Mining - 0.5%

  

   

BHP Billiton Finance USA, Ltd.

     

3.85%, 09/30/2023

     $2,116,000         2,125,179   

5.00%, 09/30/2043

     832,000         845,929   
     Principal      Value  

Metals & Mining (continued)

  

   

Novelis, Inc.
8.75%, 12/15/2020 (A)

     $2,735,000         $  3,042,687   

Multi-Utilities - 0.2%

     

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

     2,650,000         2,693,850   

Oil, Gas & Consumable Fuels - 3.9%

  

   

Apache Corp.

     

4.25%, 01/15/2044 (A)

     935,000         840,629   

4.75%, 04/15/2043

     530,000         514,071   

BP Capital Markets PLC
2.75%, 05/10/2023

     2,120,000         1,935,764   

CONSOL Energy, Inc.
8.25%, 04/01/2020 (A)

     290,000         313,925   

Energy Transfer Partners, LP
4.15%, 10/01/2020

     3,675,000         3,728,585   

Kinder Morgan Energy Partners, LP
4.15%, 02/01/2024 (A)

     3,140,000         3,037,859   

Laredo Petroleum, Inc.
7.38%, 05/01/2022

     1,370,000         1,486,450   

Linn Energy LLC / Linn Energy Finance Corp.
7.00%, 11/01/2019 - 144A (A)

     2,820,000         2,848,200   

MEG Energy Corp.
6.50%, 03/15/2021 - 144A

     4,030,000         4,241,575   

Murphy Oil Corp.

     

2.50%, 12/01/2017 (A)

     2,286,000         2,299,901   

3.70%, 12/01/2022

     1,207,000         1,115,274   

Nexen Energy ULC
5.88%, 03/10/2035

     110,000         117,476   

Noble Energy, Inc.

     

4.15%, 12/15/2021

     1,140,000         1,172,204   

5.25%, 11/15/2043

     1,400,000         1,398,856   

6.00%, 03/01/2041

     1,260,000         1,347,288   

8.25%, 03/01/2019

     1,090,000         1,354,811   

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

     1,715,000         1,732,150   

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

     5,825,000         5,996,616   

Range Resources Corp.
5.75%, 06/01/2021 (A)

     450,000         477,000   

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

     125,000         2,500   

Shell International Finance BV

     

2.00%, 11/15/2018 (A)

     2,299,000         2,300,451   

4.55%, 08/12/2043

     2,164,000         2,110,642   

Statoil ASA
2.90%, 11/08/2020 (A)

     2,630,000         2,612,792   

Total Capital International SA
3.70%, 01/15/2024

     2,195,000         2,170,359   

Western Gas Partners, LP

     

4.00%, 07/01/2022

     1,212,000         1,156,758   

5.38%, 06/01/2021

     2,001,000         2,143,669   

Williams Cos., Inc.

     

3.70%, 01/15/2023 (A)

     3,360,000         2,932,635   

7.88%, 09/01/2021

     816,000         940,939   

Paper & Forest Products - 0.5%

     

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

     5,882,000         6,166,812   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    47

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Personal Products - 0.0% (D)

     

Ontex IV SA
9.00%, 04/15/2019 - Reg S

     EUR  110,000         $  164,190   

Pharmaceuticals - 0.4%

     

AbbVie, Inc.
4.40%, 11/06/2042

     $  1,585,000         1,478,288   

Actavis, Inc.
4.63%, 10/01/2042 (A)

     1,585,000         1,442,033   

Bristol-Myers Squibb Co.
4.50%, 03/01/2044

     1,850,000         1,772,006   

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

     850,000         833,697   

Professional Services - 0.0% (D)

     

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

     EUR  100,000         145,725   

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

     119,000         177,096   

Real Estate Investment Trusts - 0.0% (D)

  

   

Ventas Realty, LP / Ventas Capital Corp.
2.70%, 04/01/2020

     $  545,000         521,130   

Real Estate Management & Development - 0.2%

  

   

Algeco Scotsman Global Finance PLC,
Series MTN
9.00%, 10/15/2018 - Reg S

     EUR  110,000         163,811   

Realogy Group LLC
7.88%, 02/15/2019 - 144A (A)

     $  2,020,000         2,216,950   

Road & Rail - 0.0% (D)

  

   

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

     637,000         593,213   

Software - 0.1%

  

   

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

     1,060,000         1,131,550   

Oracle Corp.
3.63%, 07/15/2023

     114,000         113,084   

Specialty Retail - 0.1%

  

   

QVC, Inc.
7.50%, 10/01/2019 - 144A

     1,730,000         1,864,675   

Tobacco - 0.3%

  

   

Altria Group, Inc.
4.00%, 01/31/2024

     925,000         904,108   

Philip Morris International, Inc.

     

1.88%, 01/15/2019 (A)

     1,991,000         1,945,711   

4.88%, 11/15/2043

     651,000         644,900   

Trading Companies & Distributors - 0.0% (D)

  

   

Rexel SA
5.13%, 06/15/2020 - Reg S

     EUR  100,000         144,792   

Transportation Infrastructure - 0.0% (D)

  

   

Gategroup Finance Luxembourg SA,
Series MTN
6.75%, 03/01/2019 - Reg S (A)

     110,000         160,331   

Wireless Telecommunication Services - 0.8%

  

   

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

     $  3,420,000         3,519,761   

MetroPCS Wireless, Inc.
7.88%, 09/01/2018 (A)

     117,000         125,629   

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

     GBP  100,000         175,324   

Sprint Communications, Inc.
9.00%, 11/15/2018 - 144A

     $  3,570,000         4,301,850   
     Principal      Value  

Wireless Telecommunication Services (continued)

  

Sprint Corp.
7.88%, 09/15/2023 - 144A (A)

     $  1,290,000         $  1,386,750   

T-Mobile USA, Inc.

     

6.46%, 04/28/2019

     145,000         154,062   

6.63%, 04/28/2021

     475,000         499,937   

6.73%, 04/28/2022

     460,000         479,550   

6.84%, 04/28/2023 (A)

     145,000         150,438   
    

 

 

  

Total Corporate Debt Securities (cost $341,069,678)

  

      347,627,410   
    

 

 

  
     Shares      Value  

PREFERRED STOCKS - 0.4%

  

   

Consumer Finance - 0.0% (D)

  

   

Ally Financial, Inc. 144A, 7.00%

     341         325,687   

Diversified Financial Services - 0.3%

  

   

Citigroup Capital XIII, 7.88% (B)

     126,052         3,434,917   

Short-Term U.S. Government Obligations - 0.1%

  

Fannie Mae - Series O, 0.00% (B) (I) (J)

     1,300         18,460   

Fannie Mae - Series S, 8.25% (B) (J)

     81,175         710,281   

Freddie Mac - Series Z, 8.38% (B) (J)

     93,300         836,901   
    

 

 

  

Total Preferred Stocks (cost $5,599,078)

  

      5,326,246   
    

 

 

  
     Contracts      Value  

PURCHASED OPTION - 0.0% (D)

  

   

Put Option - 0.0% (D)

     

Eurodollar, Mid-Curve 2-Year Future
Exercise Price $ 98.75
Expires 03/14/2014

     663         447,525   
    

 

 

  

Total Purchased Option (cost $191,905)

  

      447,525   
    

 

 

  
     Notional Amount      Value  

PURCHASED SWAPTIONS - 0.0% (D) (K) (L)

  

   

Call Option - 0.0% (D)

     

OTC - If exercised the Series receives floating 3 month LIBOR, and pays 4.50%, European Style Expires 02/26/2014 Counterparty: BCLY

     AUD  20,280,000         112,481   

Put Options - 0.0% (D)

     

OTC - If exercised the Series receives floating 3 month LIBOR, and pays 1.10%, European Style Expires 06/05/2014 Counterparty: BCLY

     JPY  1,402,000,000         84,504   

OTC - If exercised the Series receives floating 3 month LIBOR, and pays 1.10%, European Style Expires 06/06/2014 Counterparty: BCLY

     700,000,000         42,529   

OTC - If exercised the Series receives floating 3 month LIBOR, and pays 1.10%, European Style Expires 06/09/2014 Counterparty: BOA

     1,458,000,000         90,127   
    

 

 

  

Total Purchased Swaptions (cost $405,480)

  

      329,641   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    48

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

SHORT-TERM INVESTMENT COMPANY - 2.7%

  

BlackRock Provident TempFund 24 (M)

     35,661,273         $  35,661,273   
    

 

 

  

Total Short-Term Investment Company (cost $35,661,273)

   

      35,661,273   
    

 

 

  

SECURITIES LENDING COLLATERAL - 6.0%

  

   

State Street Navigator Securities
Lending Trust - Prime
Portfolio, 0.14% (I)

     80,612,269         80,612,269   
    

 

 

  

Total Securities Lending Collateral (cost $80,612,269)

   

      80,612,269   
    

 

 

  
    

Total Investment Securities (cost $1,585,919,133) (N)

  

      1,580,128,316   

Other Assets and Liabilities - Net - (18.3)%

  

      (243,917,452 ) 
    

 

 

  

Net Assets - 100.0%

        $  1,336,210,864   
    

 

 

  
     Principal      Value  

TBA SHORT COMMITMENTS - (7.4)%

  

   

U.S. GOVERNMENT AGENCY OBLIGATIONS - (7.4)%

  

Fannie Mae, TBA

     

2.50%

     $  (3,500,000 )       $  (3,463,906 ) 

3.00%

     (100,000 )       (94,930 ) 

3.50%

     (19,430,000 )       (19,243,290 ) 

4.00%

     (9,400,000 )       (9,960,328 ) 

4.50%

     (100,000 )       (105,629 ) 

5.00%

     (11,400,000 )       (12,344,953 ) 

6.00%

     (1,800,000 )       (1,994,766 ) 
     Principal      Value  

U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)

  

Freddie Mac, TBA
3.00%

     $  (5,700,000 )       $  (5,398,969 ) 

Ginnie Mae, TBA

     

3.50%

     (7,700,000 )       (7,760,457 ) 

4.00%

     (19,200,000 )       (19,958,250 ) 

4.50%

     (16,400,000 )       (17,533,906 ) 

5.00%

     (400,000 )       (433,422 ) 
    

 

 

  

Total U.S. Government Agency Obligations
(proceeds $98,595,703)

   

      (98,292,806 ) 
    

 

 

  

Total TBA Short Commitments
(proceeds $98,595,703)

   

      (98,292,806 ) 
    

 

 

  
     Contracts      Value  

WRITTEN OPTION - (0.0)% (D)

  

   

Put Option - (0.0)% (D)

  

Eurodollar, Mid-Curve 2-Year Future
Exercise Price $ 98.25
Expires 03/14/2014

     663         (107,738 ) 
    

 

 

  

Total Written Option (premiums $(48,432))

  

      (107,738 ) 
    

 

 

  
 

 

WRITTEN SWAPTIONS: (K) (L)  
Description   Counterparty   Floating Rate
Index		   Pay/Receive
Floating Rate		   Exercise
Rate		     Expiration
Date		     Notional Amount     Premiums
Paid
(Received)		     Value  

Put - OTC 10-Year Interest Rate Swap

   BCLY   6-Month JPY LIBOR
BBA		   Pay     1.40 %      06/05/2014        JPY  1,402,000,000        $   (30,217 )      $   (18,030 ) 

Put - OTC 10-Year Interest Rate Swap

   BCLY   6-Month JPY LIBOR
BBA		   Pay     1.40        06/06/2014        700,000,000        (17,205 )      (9,151 ) 

Put - OTC 10-Year Interest Rate Swap

   BOA   6-Month JPY LIBOR
BBA		   Pay     1.40        06/09/2014        1,458,000,000        (44,501 )      (19,826 ) 
             

 

 

    

 

 

  
                $   (91,923 )      $   (47,007 ) 
             

 

 

    

 

 

  

 

CENTRALLY CLEARED SWAP AGREEMENTS: (O)   
CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION: (P)  
Reference Obligation   Fixed Deal
Pay Rate		     Expiration
Date		      Notional
Amount (Q)		      Fair Value (R)      Premiums
Paid
(Received)		      Net Unrealized
Appreciation
(Depreciation)		  

North American High Yield Index - Series 21

     5.00 %      12/20/2018       $   14,260,000       $   (1,238,792 )     $   (940,361 )     $   (298,431 ) 

 

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

3-Month USD-LIBOR

     0.65 %      11/26/2016       $ 5,060,000           $ 25,267           $ 9           $ 25,258   

6-Month JPY-LIBOR

     0.79        11/28/2023       JP Y  741,165,000         89,117         113         89,004   

6-Month JPY-LIBOR

     0.82        11/25/2023         679,400,000         64,587         104         64,483   
         

 

 

     

 

 

     

 

 

  
              $   178,971           $   226           $   178,745   
         

 

 

     

 

 

     

 

 

  

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    49

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

 

OVER THE COUNTER SWAP AGREEMENTS: (K) (L)  
CREDIT DEFAULT SWAPS ON CORPORATE AND SOVEREIGN ISSUES - SELL PROTECTION: (S)  
Reference Obligation   Fixed Deal
Receive
Rate		     Expiration
Date		     Counterparty     Implied Credit
Spread (BP)
at 12/31/13 (T)		     Notional
Amount (Q)		     Fair
Value (R)		     Premiums
Paid
(Received)		     Net Unrealized
Appreciation
(Depreciation)		  

Goldman Sachs Group, Inc., 5.95%, 01/18/2018

     1.00 %      12/20/2018        DUB        110.74      $   4,880,000      $   27,400      $   (41,116 )    $   68,516   

 

CREDIT DEFAULT SWAPS ON CREDIT INDICES - BUY PROTECTION: (P)  
Reference Obligation   Fixed Deal
Pay Rate		     Expiration
Date		     Counterparty     Notional
Amount (Q)		     Fair
Value (R)		     Premiums
Paid
(Received)		     Net Unrealized
Appreciation
(Depreciation)		  

North American CMBS Basket Index - Series AAA6

     0.50 %      05/11/2063        MSC      $   1,425,000      $   35,953      $   53,077      $   (17,124 ) 

 

CREDIT DEFAULT SWAPS ON CREDIT INDICES - SELL PROTECTION: (S)  
Reference Obligation   Fixed Deal
Pay Rate		     Expiration
Date		     Counterparty   Notional
Amount (Q)		     Fair
Value (R)		     Premiums
Paid
(Received)		     Net Unrealized
Appreciation
(Depreciation)		  

Emerging Markets Index - Series 20

     5.00 %      12/20/2018      BCLY   $   1,751,000        $   180,501        $ 174,819        $ 5,682   

Emerging Markets Index - Series 20

     5.00        12/20/2018      BCLY     1,910,000        196,892        190,694        6,198   

Emerging Markets Index - Series 20

     5.00        12/20/2018      BOA     995,000        102,569        101,317        1,252   

Emerging Markets Index - Series 20

     5.00        12/20/2018      BCLY     994,000        102,467        102,866        (399 ) 

North American CMBS Basket Index - Series AM2

     0.50        03/15/2049      DUB     2,265,000        (55,697 )        (318,177 )      262,480   

North American CMBS Basket Index - Series AM4

     0.50        02/17/2051      DUB     870,000        (59,554 )      (128,100 )      68,546   
         

 

 

    

 

 

    

 

 

  
            $ 467,178        $ 123,419        $   343,759   
         

 

 

    

 

 

    

 

 

  

 

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

6-Month JPY-LIBOR

     1.75 %      01/15/2033      CITI   JPY     268,900,000          $   67,417              $   0          $   67,417   

MXN TIIE Banxico

     6.36        10/18/2023      DUB   MXN     17,870,000        (44,395 )      0        (44,395 ) 
           

 

 

    

 

 

    

 

 

  
                $   23,022              $   0          $   23,022   
           

 

 

    

 

 

    

 

 

  

 

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

3-Month USD-LIBOR

     3.27 %      05/16/2021      DUB   $     3,650,000          $   (190,744 )            $   0          $   (190,744 ) 

6-Month JPY-LIBOR

     1.68        01/25/2033      BCLY   JPY     268,900,000        (33,179 )      0        (33,179 ) 
           

 

 

    

 

 

    

 

 

  
                $   (223,923 )            $   0          $   (223,923 ) 
           

 

 

    

 

 

    

 

 

  

 

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

10-Year U.S. Treasury Note

      Short         (629 )       03/20/2014       $   1,241,126   

2-Year U.S. Treasury Note

      Long         415         03/31/2014         (121,177 ) 

5-Year U.S. Treasury Note

      Short         (233 )       03/31/2014         43,705   

90-Day Eurodollar

      Short         (87 )       12/14/2015         38,063   

German Euro Bund

      Short         (7 )       03/06/2014         19,370   

Long U.S. Treasury Bond

      Long         272         03/20/2014         (587,833 ) 

Ultra Long U.S. Treasury Bond

      Long         373         03/20/2014         (929,970 ) 
           

 

 

  
            $   (296,716 ) 
           

 

 

  

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    50

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

 

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

EUR

      BCLY         (12,831,000 )       01/22/2014       $   (17,326,649 )     $   (324,762 ) 

EUR

      BNP         5,276,000         01/22/2014         7,255,711         2,402   

GBP

      BCLY         (1,407,000 )       01/23/2014         (2,270,877 )       (58,678 ) 
              

 

 

  
               $   (381,038 ) 
              

 

 

  

VALUATION SUMMARY: (V)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

U.S. Government Obligations

   $             —      $ 133,305,996      $             —      $ 133,305,996   

U.S. Government Agency Obligations

     —        518,762,097        —        518,762,097   

Foreign Government Obligations

     —        17,022,246        —        17,022,246   

Mortgage-Backed Securities

     —        206,805,358        —        206,805,358   

Asset-Backed Securities

     —        229,286,169        —        229,286,169   

Municipal Government Obligations

     —        3,873,647        —        3,873,647   

Preferred Corporate Debt Securities

     —        1,068,439        —        1,068,439   

Corporate Debt Securities

                                

Airlines

     —        2,865,958        —        2,865,958   

Auto Components

     —        144,724        —        144,724   

Automobiles

     —        1,586,290        —        1,586,290   

Biotechnology

     —        2,290,270        —        2,290,270   

Building Products

                 —        158,137                    —        158,137   

Capital Markets

                 —        17,125,113                    —        17,125,113   

Chemicals

     —        8,080,690        —        8,080,690   

Commercial Banks

     —        15,846,657        —        15,846,657   

Commercial Services & Supplies

     —        4,202,486        —        4,202,486   

Communications Equipment

     —        1,450,960        —        1,450,960   

Construction & Engineering

     —        1,231,456        —        1,231,456   

Construction Materials

     —        154,601        —        154,601   

Consumer Finance

     —        1,228,980        —        1,228,980   

Containers & Packaging

     —        700,372        —        700,372   

Diversified Financial Services

     —        31,482,440        0        31,482,440   

Diversified Telecommunication Services

     —        31,574,401        —        31,574,401   

Electric Utilities

     —        15,151,557        —        15,151,557   

Electronic Equipment & Instruments

     —        286,077        —        286,077   

Energy Equipment & Services

     —        19,362,432        —        19,362,432   

Food & Staples Retailing

     —        1,842,781        —        1,842,781   

Food Products

     —        2,241,317        —        2,241,317   

Health Care Equipment & Supplies

     —        5,737,195        —        5,737,195   

Health Care Providers & Services

     —        13,184,826        —        13,184,826   

Hotels, Restaurants & Leisure

     —        4,398,959        —        4,398,959   

Household Durables

     —        182,171        —        182,171   

Household Products

     —        5,367,275        —        5,367,275   

Insurance

     —        24,173,576        —        24,173,576   

Internet Software & Services

     —        160,028        —        160,028   

IT Services

     —        2,119,111        —        2,119,111   

Life Sciences Tools & Services

     —        4,421,407        —        4,421,407   

Media

     —        34,460,736        —        34,460,736   

Metals & Mining

     —        6,013,795        —        6,013,795   

Multi-Utilities

     —        2,693,850        —        2,693,850   

Oil, Gas & Consumable Fuels

     —        52,329,379        —        52,329,379   

Paper & Forest Products

     —        6,166,812        —        6,166,812   

Personal Products

     —        164,190        —        164,190   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    51

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY (continued): (V)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

Pharmaceuticals

   $ —      $ 5,526,024      $ —      $ 5,526,024   

Professional Services

     —        322,821        —        322,821   

Real Estate Investment Trusts

     —        521,130        —        521,130   

Real Estate Management & Development

     —        2,380,761        —        2,380,761   

Road & Rail

     —        593,213        —        593,213   

Software

     —        1,244,634        —        1,244,634   

Specialty Retail

     —        1,864,675        —        1,864,675   

Tobacco

     —        3,494,719        —        3,494,719   

Trading Companies & Distributors

     —        144,792        —        144,792   

Transportation Infrastructure

     —        160,331        —        160,331   

Wireless Telecommunication Services

     —        10,793,301        —        10,793,301   

Preferred Stocks

     5,326,246        —        —        5,326,246   

Purchased Option

     447,525        —        —        447,525   

Purchased Swaptions

     —        329,641        —        329,641   

Short-Term Investment Company

     35,661,273        —        —        35,661,273   

Securities Lending Collateral

     80,612,269        —        —        80,612,269   

Total Investment Securities

   $ 122,047,313      $ 1,458,081,003      $ 0      $ 1,580,128,316   
                                 

Derivative Financial Instruments

                                

Credit Default Swap Agreements (W)

   $ —      $ 412,674      $ —      $ 412,674   

Interest Rate Swap Agreements (W)

     —        246,162        —        246,162   

Futures Contracts (W)

     1,342,264        —        —        1,342,264   

Forward Foreign Currency Contracts (W)

     —        2,402        —        2,402   

Total Derivative Financial Instruments

   $ 1,342,264      $ 661,238      $             —      $ 2,003,502   

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

LIABILITIES

                                

TBA Short Commitments

                                

U.S. Government Agency Obligations

   $ —      $ (98,292,806 )    $             —      $ (98,292,806 ) 

Total TBA Short Commitments

   $ —      $ (98,292,806 )    $ —      $ (98,292,806 ) 
                                 

Derivative Financial Instruments

                                

Written Option

   $ (107,738 )    $ —      $ —      $ (107,738 ) 

Written Swaptions

     —        (47,007 )      —        (47,007 ) 

Credit Default Swap Agreements (W)

     —        (315,954 )      —        (315,954 ) 

Interest Rate Swap Agreements (W)

     —        (268,318 )      —        (268,318 ) 

Futures Contracts (W)

     (1,638,980 )      —        —        (1,638,980 ) 

Forward Foreign Currency Contracts (W)

     —        (383,440 )      —        (383,440 ) 

Total Derivative Financial Instruments

   $ (1,746,718 )    $ (1,014,719 )    $             —      $ (2,761,437 ) 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    52

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY (continued): (V)

 

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) (X)		     Transfers
into
Level 3		     Transfers
out of
Level 3		     Ending Balance at
December 31, 2013 (Y)		     Net Change in
Unrealized
Appreciation
(Depreciation)
on Investments
Held at
December 31, 2013 (X)		  
Corporate Debt Securities   $ 0      $ —      $ —      $ (2,247 )    $ (1,335,397 )    $ 1,337,644      $ —      $ —      $ 0      $ 1,384   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  All or a portion of this security is on loan. The value of all securities on loan is $78,989,620. 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 December 31, 2013.
(C)  Step bond - Coupon rate changes in increments to maturity. Rate disclosed is as of December 31, 2013. Maturity date disclosed is the ultimate maturity date.
(D)  Percentage rounds to less than 0.1%.
(E)  The security has a perpetual maturity. The date shown is the next call date.
(F)  In default.
(G)  Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate fair value of securities is $2,933,846, or 0.22% of the portfolio’s net assets.
(H)  Illiquid. Total aggregate fair value of illiquid securities is $28,994, or less than 0.01% of the portfolio’s net assets.
(I)  Rate shown reflects the yield at December 31, 2013.
(J)  Non-income producing security.
(K)  Cash in the amount of $520,000 has been segregated by the custodian as collateral for open swap, swaptions and/or forward foreign currency contracts.
(L)  Cash in the amount of $100,000 has been segregated by the broker as collateral for open swap, swaptions and/or forward foreign currency contracts.
(M)  The investment issuer is affiliated with the sub-adviser of the portfolio.
(N)  Aggregate cost for federal income tax purposes is $1,586,669,785. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $21,152,981 and $27,694,450, respectively. Net unrealized depreciation for tax purposes is $6,541,469.
(O)  Cash in the amount of $855,000 has been segregated by the custodian with the broker as collateral for centrally cleared swaps.
(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 portfolio 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)  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.
(S)  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.
(T)  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.
(U)  Cash in the amount of $1,197,000 has been segregated by the custodian 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 Portfolios   Annual Report 2013

Page    53

Transamerica Partners Core Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

NOTES TO SCHEDULE OF INVESTMENTS (continued):

 

(V)  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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(W)  Derivative financial instruments valued at unrealized appreciation (depreciation) on the instrument.
(X)  Any difference between Net Change in Unrealized Appreciation (Depreciation) and Net Change in Unrealized Appreciation (Depreciation) on Investments Held at December 31, 2013 may be due to an investment no longer held or categorized as Level 3 at year end.
(Y)  Level 3 securities were not considered significant to the portfolio.

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 December 31, 2013, these securities aggregated $250,771,456, or 18.77% of the portfolio’s net assets.
BBA    British Bankers’ Association
BCLY    Barclays Bank PLC
BNP    BNP Paribas
BOA    Bank of America
BP    Basis Point
CITI    Citigroup, Inc.
CMBS    Commercial Mortgage-Backed Securities
DUB    Deutsche Bank AG
IO    Interest only portion of a STRIP (Separate Trading of Registered Interest and Principal Security) Security
LIBOR    London Interbank Offered Rate
MSC    Morgan Stanley
MTN    Medium Term Note
MXN TIIE Banxico    Tasa de Interés Interbancaria de Equilibrio (Interbank Equilibrium Interest Rate) (“TIIE”) for MXNde Equilibrio by the Banco de México
OJSC    Open Joint Stock Company
OTC    Over the Counter
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.
TBA    To Be Announced

CURRENCY ABBREVIATIONS:

 

AUD    Australian Dollar
EUR    Euro
GBP    Pound Sterling
JPY    Japanese Yen
MXN    Mexican Peso
USD    United States Dollar

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    54

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Principal      Value  

CORPORATE DEBT SECURITIES - 89.0%

  

   

Aerospace & Defense - 1.2%

     

Accudyne Industries Borrower / Accudyne Industries LLC
7.75%, 12/15/2020 - 144A

     $  1,785,000         $  1,892,100   

Alliant Techsystems, Inc.
5.25%, 10/01/2021 - 144A

     1,175,000         1,177,938   

GenCorp, Inc.
7.13%, 03/15/2021

     1,350,000         1,444,500   

Huntington Ingalls Industries, Inc.
7.13%, 03/15/2021

     1,465,000         1,607,837   

TransDigm, Inc.
7.75%, 12/15/2018

     3,750,000         4,021,875   

Air Freight & Logistics - 0.3%

     

Air Medical Group Holdings, Inc.
9.25%, 11/01/2018

     1,944,000         2,099,520   

Auto Components - 0.4%

     

American Axle & Manufacturing, Inc.
5.13%, 02/15/2019

     550,000         565,125   

Schaeffler Holding Finance BV
6.88%, 08/15/2018 - 144A (A)

     2,450,000         2,597,000   

Tomkins LLC / Tomkins, Inc.
9.00%, 10/01/2018

     436,000         477,420   

Automobiles - 0.4%

     

Chrysler Group LLC / CG Co.-Issuer, Inc.
8.25%, 06/15/2021

     2,815,000         3,202,063   

Beverages - 0.4%

     

Constellation Brands, Inc.

     

4.25%, 05/01/2023

     2,640,000         2,461,800   

6.00%, 05/01/2022

     1,240,000         1,323,700   

Biotechnology - 0.1%

     

STHI Holding Corp.
8.00%, 03/15/2018 - 144A

     1,115,000         1,193,050   

Building Products - 1.1%

     

Builders FirstSource, Inc.
7.63%, 06/01/2021 - 144A

     1,975,000         2,063,875   

Interline Brands, Inc.
10.00%, 11/15/2018 (A)

     2,665,000         2,911,512   

Nortek, Inc.

     

8.50%, 04/15/2021

     1,440,000         1,594,800   

10.00%, 12/01/2018

     1,560,000         1,721,850   

USG Corp.
5.88%, 11/01/2021 - 144A

     730,000         759,200   

Capital Markets - 0.3%

     

Darling Escrow Corp.
5.38%, 01/15/2022 - 144A (B)

     1,070,000         1,078,025   

E*TRADE Financial Corp.

     

6.00%, 11/15/2017

     250,000         265,625   

6.38%, 11/15/2019

     860,000         923,425   

Chemicals - 1.8%

     

Celanese US Holdings LLC

     

5.88%, 06/15/2021

     765,000         814,725   

6.63%, 10/15/2018

     655,000         699,212   

Chemtura Corp.
5.75%, 07/15/2021

     670,000         679,213   

Ineos Finance PLC
8.38%, 02/15/2019 - 144A

     3,190,000         3,548,875   

Kraton Polymers LLC / Kraton Polymers Capital Corp.
6.75%, 03/01/2019

     750,000         789,375   
     Principal      Value  

Chemicals (continued)

     

Rockwood Specialties Group, Inc.
4.63%, 10/15/2020

     $   2,380,000         $   2,430,575   

Tronox Finance LLC
6.38%, 08/15/2020

     3,780,000         3,855,600   

US Coatings Acquisition, Inc. / Axalta Coating Systems Dutch Holding B BV
7.38%, 05/01/2021 - 144A

     2,620,000         2,793,575   

Commercial Banks - 0.2%

     

CIT Group, Inc.

     

5.00%, 08/15/2022

     385,000         375,375   

5.25%, 03/15/2018

     525,000         563,063   

5.38%, 05/15/2020

     190,000         201,875   

5.50%, 02/15/2019 - 144A

     865,000         927,712   

Commercial Services & Supplies - 3.6%

  

   

ADS Waste Holdings, Inc.
8.25%, 10/01/2020

     960,000         1,041,600   

ADT Corp.
6.25%, 10/15/2021 - 144A

     2,580,000         2,709,000   

Alphabet Holding Co., Inc.

     

7.75%, 11/01/2017 (A)

     2,385,000         2,459,531   

7.75%, 11/01/2017 - 144A (A)

     2,415,000         2,490,469   

Clean Harbors, Inc.

     

5.13%, 06/01/2021

     865,000         873,650   

5.25%, 08/01/2020

     925,000         952,750   

Covanta Holding Corp.
6.38%, 10/01/2022

     1,700,000         1,745,421   

CTP Transportation Products LLC / CTP Finance, Inc.
8.25%, 12/15/2019 - 144A

     895,000         933,038   

Envision Healthcare Corp.
8.13%, 06/01/2019

     449,000         486,604   

Hertz Corp.

     

6.25%, 10/15/2022

     955,000         986,037   

7.50%, 10/15/2018

     735,000         792,881   

Interface, Inc.
7.63%, 12/01/2018

     657,000         706,275   

Iron Mountain, Inc.
6.00%, 08/15/2023

     2,485,000         2,547,125   

Nielsen Co. Luxembourg SARL
5.50%, 10/01/2021 - 144A

     985,000         999,775   

Polymer Group, Inc.
7.75%, 02/01/2019

     1,265,000         1,348,806   

ServiceMaster Co.

     

7.00%, 08/15/2020

     1,035,000         1,025,944   

8.00%, 02/15/2020

     430,000         438,600   

United Rentals North America, Inc.

     

7.38%, 05/15/2020

     4,950,000         5,488,312   

7.63%, 04/15/2022

     585,000         650,081   

8.25%, 02/01/2021

     290,000         326,975   

8.38%, 09/15/2020

     475,000         529,625   

10.25%, 11/15/2019

     1,075,000         1,217,975   

Communications Equipment - 2.1%

     

Alcatel-Lucent USA, Inc.

     

4.63%, 07/01/2017 - 144A

     935,000         936,169   

6.75%, 11/15/2020 - 144A

     1,880,000         1,952,850   

8.88%, 01/01/2020 - 144A

     5,315,000         5,926,225   

Avaya, Inc.

     

9.00%, 04/01/2019 - 144A

     2,975,000         3,108,875   

9.75%, 11/01/2015

     345,000         342,412   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    55

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Communications Equipment (continued)

  

   

Avaya, Inc. (continued)

     

10.50%, 03/01/2021 - 144A

     $   3,387,600         $   3,235,158   

CommScope Holding Co., Inc.
6.63%, 06/01/2020 - 144A (A)

     1,460,000         1,518,400   

CommScope, Inc.
8.25%, 01/15/2019 - 144A

     781,000         856,171   

Computers & Peripherals - 0.7%

     

NCR Corp.
5.00%, 07/15/2022

     1,145,000         1,089,181   

NCR Escrow Corp.

     

5.88%, 12/15/2021 - 144A

     615,000         626,531   

6.38%, 12/15/2023 - 144A

     1,090,000         1,113,163   

Seagate HDD Cayman
7.00%, 11/01/2021

     2,720,000         3,002,200   

Consumer Finance - 2.1%

     

Ally Financial, Inc.

     

3.50%, 07/18/2016

     3,340,000         3,446,359   

5.50%, 02/15/2017

     1,700,000         1,840,250   

6.25%, 12/01/2017

     3,830,000         4,270,450   

8.00%, 12/31/2018 - 11/01/2031

     2,430,000         2,900,794   

SLM Corp., Series MTN

     

5.50%, 01/15/2019

     4,230,000         4,389,691   

8.00%, 03/25/2020

     1,245,000         1,409,962   

Containers & Packaging - 1.6%

     

Ardagh Packaging Finance PLC / Ardagh MP Holdings USA, Inc.
7.00%, 11/15/2020 - 144A

     4,390,000         4,433,900   

Beverage Packaging Holdings
6.00%, 06/15/2017 - 144A

     915,000         926,437   

Beverage Packaging Holdings Luxembourg II SA / Beverage Packaging Holdings II Is
5.63%, 12/15/2016 - 144A

     645,000         657,900   

BOE Merger Corp.
9.50%, 11/01/2017 - 144A (A)

     1,670,000         1,774,375   

BWAY Holding Co.
10.00%, 06/15/2018

     455,000         493,675   

Crown Americas LLC / Crown Americas Capital Corp. IV
4.50%, 01/15/2023

     950,000         888,250   

Sealed Air Corp.
8.38%, 09/15/2021 - 144A

     3,625,000         4,114,375   

Distributors - 0.5%

     

HD Supply, Inc.

     

7.50%, 07/15/2020

     1,050,000         1,131,375   

8.13%, 04/15/2019

     695,000         774,056   

11.50%, 07/15/2020

     900,000         1,074,375   

VWR Funding, Inc.
7.25%, 09/15/2017

     1,325,000         1,421,063   

Diversified Consumer Services - 1.3%

  

   

CBC Ammo LLC / CBC FinCo, Inc.
7.25%, 11/15/2021 - 144A

     2,010,000         1,979,850   

Laureate Education, Inc.
9.25%, 09/01/2019 - 144A

     8,740,000         9,504,750   

Diversified Financial Services - 2.0%

  

   

AWAS Aviation Capital, Ltd.
7.00%, 10/17/2016 - 144A

     113,920         117,907   

CEVA Group PLC

     

8.38%, 12/01/2017 - 144A

     1,845,000         1,928,025   

11.63%, 10/01/2016 - 144A

     1,455,000         1,520,475   
     Principal      Value  

Diversified Financial Services (continued)

  

   

General Motors Financial Co., Inc.

     

3.25%, 05/15/2018 - 144A

     $   320,000         $   320,000   

4.25%, 05/15/2023 - 144A

     1,060,000         1,008,325   

4.75%, 08/15/2017 - 144A

     1,350,000         1,432,688   

6.75%, 06/01/2018

     1,075,000         1,225,500   

MPH Intermediate Holding Co. 2
8.38%, 08/01/2018 - 144A (A)

     4,755,000         4,945,200   

Neiman Marcus Group LTD, Inc.
8.00%, 10/15/2021 - 144A

     1,365,000         1,426,425   

Neuberger Berman Group LLC / Neuberger Berman Finance Corp.
5.63%, 03/15/2020 - 144A

     2,870,000         3,013,500   

Diversified Telecommunication Services - 4.8%

  

   

Altice Financing SA
6.50%, 01/15/2022 - 144A

     1,325,000         1,338,250   

Altice Finco SA
8.13%, 01/15/2024 - 144A

     425,000         440,938   

CenturyLink, Inc.
6.75%, 12/01/2023

     1,345,000         1,361,812   

Digicel, Ltd.
6.00%, 04/15/2021 - 144A

     1,525,000         1,471,625   

Frontier Communications Corp.
7.63%, 04/15/2024

     765,000         763,088   

Hughes Satellite Systems Corp.
6.50%, 06/15/2019

     2,725,000         2,949,812   

Intelsat Jackson Holdings SA
7.25%, 10/15/2020

     1,895,000         2,072,656   

Intelsat Luxembourg SA

     

7.75%, 06/01/2021 - 144A

     4,210,000         4,515,225   

8.13%, 06/01/2023 - 144A

     3,205,000         3,437,362   

SBA Telecommunications, Inc.

     

5.75%, 07/15/2020

     1,640,000         1,705,600   

8.25%, 08/15/2019

     429,000         460,103   

Sprint Capital Corp.
8.75%, 03/15/2032

     1,090,000         1,169,025   

UPCB Finance V, Ltd.
7.25%, 11/15/2021 - 144A

     4,730,000         5,132,050   

UPCB Finance VI, Ltd.
6.88%, 01/15/2022 - 144A

     1,620,000         1,721,250   

Virgin Media Finance PLC
6.38%, 04/15/2023 - 144A

     945,000         961,538   

Wind Acquisition Holdings Finance SA
12.25%, 07/15/2017 - 144A (A)

     1,955,835         1,948,039   

Windstream Corp.

     

6.38%, 08/01/2023

     2,385,000         2,229,975   

7.50%, 06/01/2022

     1,200,000         1,227,000   

7.75%, 10/01/2021

     5,410,000         5,734,600   

8.13%, 09/01/2018

     555,000         596,625   

Electric Utilities - 0.1%

     

Energy Future Intermediate Holding Co. LLC / EFIH Finance, Inc.
6.88%, 08/15/2017 - 144A

     640,000         662,400   

Energy Equipment & Services - 2.0%

     

Atlas Pipeline Partners, LP / Atlas Pipeline Finance Corp.
4.75%, 11/15/2021 - 144A

     2,635,000         2,411,025   

Atwood Oceanics, Inc.
6.50%, 02/01/2020

     1,035,000         1,104,863   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    56

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Energy Equipment & Services (continued)

  

Bristow Group, Inc.
6.25%, 10/15/2022

     $   1,050,000         $   1,108,485   

Calfrac Holdings, LP
7.50%, 12/01/2020 - 144A

     690,000         703,800   

Holly Energy Partners, LP / Holly Energy Finance Corp.
6.50%, 03/01/2020

     505,000         527,725   

Oil States International, Inc.
6.50%, 06/01/2019

     2,110,000         2,244,512   

Precision Drilling Corp.

     

6.50%, 12/15/2021

     1,835,000         1,954,275   

6.63%, 11/15/2020

     835,000         891,363   

Sabine Pass Liquefaction LLC
5.63%, 02/01/2021 - 04/15/2023 - 144A

     5,000,000         4,815,675   

SESI LLC
6.38%, 05/01/2019

     1,315,000         1,403,762   

Food & Staples Retailing - 0.4%

     

Dufry Finance SCA
5.50%, 10/15/2020 - 144A

     1,500,000         1,537,500   

Pantry, Inc.
8.38%, 08/01/2020

     1,885,000         2,002,813   

Food Products - 1.1%

     

ARAMARK Corp.
5.75%, 03/15/2020 - 144A

     895,000         935,275   

ASG Consolidated LLC / ASG Finance, Inc.
15.00%, 05/15/2017 - 144A (A) (C)

     2,105,200         1,691,177   

B&G Foods, Inc.
4.63%, 06/01/2021

     280,000         268,800   

Michael Foods Group, Inc.
9.75%, 07/15/2018

     1,025,000         1,114,688   

Michael Foods Holding, Inc.
8.50%, 07/15/2018 - 144A (A)

     3,025,000         3,198,937   

Pinnacle Operating Corp.
9.00%, 11/15/2020 - 144A

     1,055,000         1,119,619   

Post Holdings, Inc.

     

6.75%, 12/01/2021 - 144A

     570,000         589,950   

7.38%, 02/15/2022 - 144A

     380,000         406,600   

Gas Utilities - 1.0%

     

AmeriGas Finance LLC / AmeriGas Finance Corp.

     

6.75%, 05/20/2020

     985,000         1,076,113   

7.00%, 05/20/2022

     3,665,000         3,976,525   

AmeriGas Partners, LP / AmeriGas Finance Corp.
6.25%, 08/20/2019

     1,220,000         1,311,500   

Sabine Pass Lng, LP
6.50%, 11/01/2020

     1,915,000         1,986,812   

Health Care Equipment & Supplies - 3.7%

  

   

Accellent, Inc.
8.38%, 02/01/2017

     2,950,000         3,086,437   

Alere, Inc.

     

6.50%, 06/15/2020

     4,890,000         5,000,025   

8.63%, 10/01/2018

     1,180,000         1,274,400   

Biomet, Inc.
6.50%, 08/01/2020

     3,505,000         3,680,250   

ConvaTec Finance International SA
8.25%, 01/15/2019 - 144A (A)

     4,800,000         4,914,000   
     Principal      Value  

Health Care Equipment & Supplies (continued)

  

ConvaTec Healthcare E SA
10.50%, 12/15/2018 - 144A

     $   2,885,000         $   3,242,019   

Hologic, Inc.
6.25%, 08/01/2020

     4,430,000         4,673,650   

Kinetic Concepts, Inc. / KCI USA, Inc.
10.50%, 11/01/2018

     3,095,000         3,559,250   

Physio-Control International, Inc.
9.88%, 01/15/2019 - 144A

     1,235,000         1,383,200   

Teleflex, Inc.
6.88%, 06/01/2019

     1,000,000         1,050,000   

Health Care Providers & Services - 4.1%

  

   

Amsurg Corp.
5.63%, 11/30/2020

     625,000         650,000   

CHS / Community Health Systems, Inc.

     

5.13%, 08/15/2018

     2,170,000         2,240,525   

7.13%, 07/15/2020

     2,295,000         2,381,062   

DaVita HealthCare Partners, Inc.
5.75%, 08/15/2022

     3,765,000         3,812,062   

Fresenius Medical Care US Finance II, Inc.

     

5.63%, 07/31/2019 - 144A

     1,300,000         1,404,000   

5.88%, 01/31/2022 - 144A

     755,000         796,525   

HCA Holdings, Inc.
6.25%, 02/15/2021

     1,510,000         1,579,838   

HCA, Inc.

     

6.50%, 02/15/2020

     2,905,000         3,191,869   

7.50%, 02/15/2022

     3,410,000         3,742,475   

INC Research LLC
11.50%, 07/15/2019 - 144A

     1,470,000         1,635,375   

MultiPlan, Inc.
9.88%, 09/01/2018 - 144A

     2,885,000         3,173,500   

ResCare, Inc.
10.75%, 01/15/2019

     1,975,000         2,212,000   

Tenet Healthcare Corp.

     

6.00%, 10/01/2020 - 144A

     1,410,000         1,471,688   

8.13%, 04/01/2022

     2,800,000         3,017,000   

United Surgical Partners International, Inc.
9.00%, 04/01/2020

     1,180,000         1,321,600   

WellCare Health Plans, Inc.
5.75%, 11/15/2020

     2,265,000         2,315,962   

Health Care Technology - 0.5%

     

Healthcare Technology Intermediate, Inc. 7.38%, 09/01/2018 - 144A (A)

     1,970,000         2,048,800   

IMS Health, Inc.
6.00%, 11/01/2020 - 144A

     1,855,000         1,970,938   

Hotels, Restaurants & Leisure - 7.7%

  

   

Buffalo Thunder Development Authority
9.38%, 12/15/2014 - 144A (D)

     3,095,000         1,238,000   

Caesars Entertainment Operating Co., Inc.

     

5.63%, 06/01/2015

     4,410,000         4,354,875   

8.50%, 02/15/2020

     3,195,000         3,075,187   

9.00%, 02/15/2020

     1,435,000         1,395,538   

Carlson Wagonlit BV
6.88%, 06/15/2019 - 144A

     2,030,000         2,106,125   

Cinemark USA, Inc.
7.38%, 06/15/2021

     540,000         596,700   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    57

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Hotels, Restaurants & Leisure (continued)

  

GLP Capital, LP / GLP Financing II, Inc.

     

4.38%, 11/01/2018 - 144A

     $   250,000         $   255,625   

4.88%, 11/01/2020 - 144A

     2,885,000         2,885,000   

5.38%, 11/01/2023 - 144A

     625,000         614,063   

Greektown Holdings LLC (Escrow Shares) Zero Coupon, 12/01/2049 (E)

     1,495,000         0   

Hilton Worldwide Finance LLC / Hilton Worldwide Finance Corp.
5.63%, 10/15/2021 - 144A

     2,875,000         2,982,813   

Inn of the Mountain Gods Resort & Casino 8.75%, 11/30/2020 - 144A (C) (F)

     240,000         231,600   

MGM Resorts International

     

5.88%, 02/27/2014

     945,000         949,725   

6.63%, 12/15/2021

     3,185,000         3,368,137   

7.75%, 03/15/2022

     3,385,000         3,782,737   

MISA Investments, Ltd.
8.63%, 08/15/2018 - 144A (A) (C)

     1,480,000         1,531,800   

Mohegan Tribal Gaming Authority
11.00%, 09/15/2018 - 144A

     2,580,000         2,589,675   

National CineMedia LLC
6.00%, 04/15/2022

     1,045,000         1,078,963   

NCL Corp., Ltd.
5.00%, 02/15/2018

     810,000         834,300   

New Cotai LLC / New Cotai Capital Corp.
10.63%, 05/01/2019 - 144A (A)

     1,585,000         1,596,557   

NPC International, Inc. / NPC Operating Co. A, Inc.
10.50%, 01/15/2020

     3,175,000         3,667,125   

Playa Resorts Holding BV
8.00%, 08/15/2020 - 144A

     985,000         1,045,331   

Regal Cinemas Corp.
8.63%, 07/15/2019

     1,330,000         1,426,425   

Royal Caribbean Cruises, Ltd.
7.25%, 06/15/2016 - 03/15/2018

     970,000         1,102,850   

Seven Seas Cruises S de RL, LLC
9.13%, 05/15/2019

     2,700,000         2,973,375   

Station Casinos LLC
7.50%, 03/01/2021

     2,270,000         2,417,550   

Studio City Finance, Ltd.
8.50%, 12/01/2020 - 144A

     6,625,000         7,337,187   

Sugarhouse HSP Gaming Prop Mezz, LP / Sugarhouse HSP Gaming Finance Corp.
6.38%, 06/01/2021 - 144A

     485,000         468,025   

Tunica-Biloxi Gaming Authority
9.00%, 11/15/2015 - 144A (C)

     2,435,000         2,191,500   

Viking Cruises, Ltd.
8.50%, 10/15/2022 - 144A

     1,160,000         1,310,800   

Waterford Gaming LLC / Waterford Gaming Financial Corp.
8.63%, 09/15/2014 - 144A (C) (E)

     1,588,656         668,348   

WMG Acquisition Corp.

     

6.00%, 01/15/2021 - 144A

     868,000         901,635   

11.50%, 10/01/2018

     2,995,000         3,444,250   

Wynn Las Vegas LLC / Wynn Las Vegas Capital Corp.
7.75%, 08/15/2020

     1,435,000         1,610,788   

Household Durables - 0.5%

     

Brookfield Residential Properties, Inc.
6.50%, 12/15/2020 - 144A

     2,030,000         2,106,125   
     Principal      Value  

Household Durables (continued)

  

Libbey Glass, Inc.
6.88%, 05/15/2020

     $   603,000         $   651,240   

Tempur Sealy International, Inc.
6.88%, 12/15/2020

     1,065,000         1,160,850   

Household Products - 2.0%

     

Harbinger Group, Inc.
7.88%, 07/15/2019 - 144A

     890,000         955,638   

Reynolds Group Issuer, Inc. / Reynolds Group Issuer LLC

     

6.88%, 02/15/2021

     3,150,000         3,394,125   

7.13%, 04/15/2019

     1,795,000         1,911,675   

7.88%, 08/15/2019

     985,000         1,088,425   

9.88%, 08/15/2019

     4,600,000         5,117,500   

Spectrum Brands Escrow Corp.

     

6.38%, 11/15/2020 - 144A

     935,000         998,112   

6.63%, 11/15/2022 - 144A

     1,360,000         1,446,700   

Spectrum Brands, Inc.
6.75%, 03/15/2020

     1,345,000         1,447,556   

Sun Products Corp.
7.75%, 03/15/2021 - 144A

     635,000         558,800   

Independent Power Producers & Energy Traders - 0.8%

  

Edison Mission Energy
7.50%, 06/15/2013 (D)

     2,750,000         2,076,250   

NRG Energy, Inc.

     

7.88%, 05/15/2021

     1,665,000         1,843,988   

8.25%, 09/01/2020

     2,960,000         3,278,200   

Industrial Conglomerates - 1.0%

     

Amsted Industries, Inc.
8.13%, 03/15/2018 - 144A

     2,360,000         2,486,850   

Neiman Marcus Group LTD, Inc.
8.75%, 10/15/2021 - 144A (A)

     1,725,000         1,806,937   

Opal Acquisition, Inc.
8.88%, 12/15/2021 - 144A

     1,360,000         1,353,200   

Penn National Gaming, Inc.
5.88%, 11/01/2021 - 144A

     1,120,000         1,106,000   

Tms International Corp.
7.63%, 10/15/2021 - 144A

     1,335,000         1,418,438   

Insurance - 0.5%

     

A-S Co.-Issuer Subsidiary, Inc. / A-S Merger Sub LLC
7.88%, 12/15/2020 - 144A

     1,535,000         1,611,750   

Onex USI Acquisition Corp.
7.75%, 01/15/2021 - 144A

     2,955,000         3,021,488   

Internet Software & Services - 0.1%

     

Equinix, Inc.
7.00%, 07/15/2021

     1,100,000         1,201,750   

IT Services - 0.4%

     

Alliance Data Systems Corp.
6.38%, 04/01/2020 - 144A

     1,000,000         1,047,500   

Lender Processing Services, Inc.
5.75%, 04/15/2023

     1,425,000         1,474,875   

NeuStar, Inc.
4.50%, 01/15/2023

     675,000         609,188   

Life Sciences Tools & Services - 0.5%

     

Jaguar Holding Co. II / Jaguar Merger Sub, Inc.
9.50%, 12/01/2019 - 144A

     4,070,000         4,578,750   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    58

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Machinery - 0.8%

     

BC Mountain LLC / BC Mountain Finance, Inc.
7.00%, 02/01/2021 - 144A

     $   1,705,000         $   1,722,050   

CNH Capital LLC
6.25%, 11/01/2016

     1,640,000         1,810,150   

Milacron LLC / Mcron Finance Corp.
7.75%, 02/15/2021 - 144A

     475,000         498,750   

Navistar International Corp.
8.25%, 11/01/2021

     2,725,000         2,820,375   

Media - 5.2%

     

Adelphia Communications Corp. (Escrow Certificates)

     

9.25%, 10/01/2049 (G)

     1,305,000         9,135   

10.25%, 06/15/2049 - 11/01/2049

     1,460,000         10,220   

AMC Entertainment, Inc.
8.75%, 06/01/2019

     535,000         571,781   

AMC Networks, Inc.

     

4.75%, 12/15/2022

     885,000         842,963   

7.75%, 07/15/2021

     890,000         1,001,250   

Cablevision Systems Corp.
7.75%, 04/15/2018

     4,805,000         5,363,581   

CCO Holdings LLC / CCO Holdings Capital Corp.

     

5.25%, 09/30/2022

     2,885,000         2,693,869   

5.75%, 01/15/2024

     1,865,000         1,762,425   

6.50%, 04/30/2021

     1,125,000         1,155,937   

7.25%, 10/30/2017

     1,235,000         1,307,556   

8.13%, 04/30/2020

     100,000         108,500   

Clear Channel Communications, Inc.
11.25%, 03/01/2021

     2,430,000         2,612,250   

Clear Channel Worldwide Holdings, Inc.

     

6.50%, 11/15/2022

     2,740,000         2,791,250   

7.63%, 03/15/2020

     385,000         400,400   

Crown Media Holdings, Inc.
10.50%, 07/15/2019

     770,000         873,950   

CSC Holdings LLC
6.75%, 11/15/2021

     185,000         199,338   

DISH DBS Corp.

     

5.88%, 07/15/2022

     1,970,000         1,970,000   

6.75%, 06/01/2021

     3,215,000         3,407,900   

LBI Media, Inc.

     

10.00%, 04/15/2019 - 144A

     1,490,000         1,545,875   

13.50%, 04/15/2020 - 144A
(Cash Rate: 4.25%) (A) (C)

     164,545         119,818   

McGraw-Hill Global Education Holdings LLC / McGraw-Hill Global Education Finance
9.75%, 04/01/2021 - 144A

     3,070,000         3,392,350   

Mediacom LLC / Mediacom Capital Corp.
9.13%, 08/15/2019

     935,000         1,010,969   

National CineMedia LLC
7.88%, 07/15/2021

     3,010,000         3,311,000   

Regal Entertainment Group

     

5.75%, 02/01/2025

     720,000         678,600   

9.13%, 08/15/2018

     778,000         844,130   

Sirius XM Holdings, Inc.
5.88%, 10/01/2020 - 144A

     1,990,000         2,029,800   

Starz LLC / Starz Finance Corp.
5.00%, 09/15/2019

     1,250,000         1,278,125   
     Principal      Value  

Media (continued)

     

Unitymedia Hessen GmbH & Co. KG / Unitymedia NRW GmbH
5.50%, 01/15/2023 - 144A

     $   2,220,000         $   2,153,400   

Univision Communications, Inc.
5.13%, 05/15/2023 - 144A

     1,135,000         1,133,581   

Metals & Mining - 2.2%

     

AK Steel Corp.
8.75%, 12/01/2018

     870,000         972,225   

ArcelorMittal
6.75%, 02/25/2022

     985,000         1,071,188   

Eldorado Gold Corp.
6.13%, 12/15/2020 - 144A

     3,205,000         3,084,812   

FQM Akubra, Inc.

     

7.50%, 06/01/2021 - 144A

     1,310,000         1,368,950   

8.75%, 06/01/2020 - 144A

     900,000         976,500   

IAMGOLD Corp.
6.75%, 10/01/2020 - 144A

     1,870,000         1,608,200   

KGHM International, Ltd.
7.75%, 06/15/2019 - 144A

     2,985,000         3,149,175   

New Gold, Inc.

     

6.25%, 11/15/2022 - 144A

     1,300,000         1,257,750   

7.00%, 04/15/2020 - 144A

     770,000         791,175   

Novelis, Inc.

     

8.38%, 12/15/2017

     1,145,000         1,222,287   

8.75%, 12/15/2020

     2,205,000         2,453,062   

SunCoke Energy, Inc.
7.63%, 08/01/2019

     1,085,000         1,169,088   

Oil, Gas & Consumable Fuels - 9.9%

  

   

Antero Resources Finance Corp.
5.38%, 11/01/2021 - 144A

     2,220,000         2,242,200   

Atlas Energy Holdings Operating Co. LLC / Atlas Resource Finance Corp.
7.75%, 01/15/2021 - 144A

     755,000         724,800   

Berry Petroleum Co.
6.38%, 09/15/2022

     3,050,000         3,103,375   

Bonanza Creek Energy, Inc.
6.75%, 04/15/2021

     1,780,000         1,864,550   

Chesapeake Energy Corp.

     

5.75%, 03/15/2023

     265,000         272,950   

6.13%, 02/15/2021

     2,455,000         2,632,987   

Chesapeake Oilfield Operating LLC / Chesapeake Oilfield Finance, Inc.
6.63%, 11/15/2019

     875,000         916,563   

Concho Resources, Inc.

     

5.50%, 04/01/2023

     3,800,000         3,914,000   

6.50%, 01/15/2022

     1,070,000         1,158,275   

7.00%, 01/15/2021

     1,325,000         1,457,500   

Continental Resources, Inc.

     

5.00%, 09/15/2022

     1,725,000         1,791,844   

7.13%, 04/01/2021

     545,000         617,894   

CrownRock, LP / CrownRock Finance, Inc.
7.13%, 04/15/2021 - 144A

     1,875,000         1,940,625   

CVR Refining LLC / Coffeyville Finance, Inc.
6.50%, 11/01/2022

     2,355,000         2,313,787   

Denbury Resources, Inc.
8.25%, 02/15/2020

     1,360,000         1,497,700   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    59

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Oil, Gas & Consumable Fuels (continued)

  

   

EP Energy LLC / EP Energy Finance, Inc.
9.38%, 05/01/2020

     $   2,490,000         $   2,872,837   

EP Energy LLC / Everest Acquisition Finance, Inc.

     

6.88%, 05/01/2019

     3,385,000         3,643,106   

7.75%, 09/01/2022

     680,000         761,600   

EPL Oil & Gas, Inc.
8.25%, 02/15/2018

     1,430,000         1,537,250   

Halcon Resources Corp.
9.75%, 07/15/2020 - 144A

     905,000         942,331   

Harvest Operations Corp.
6.88%, 10/01/2017

     645,000         706,275   

Kinder Morgan, Inc.
5.00%, 02/15/2021 - 144A

     3,045,000         2,999,282   

Kodiak Oil & Gas Corp.

     

5.50%, 01/15/2021

     360,000         359,100   

8.13%, 12/01/2019

     3,020,000         3,352,200   

Laredo Petroleum, Inc.
7.38%, 05/01/2022

     1,645,000         1,784,825   

MEG Energy Corp.
6.38%, 01/30/2023 - 144A

     1,870,000         1,881,687   

Murphy Oil USA, Inc.
6.00%, 08/15/2023 - 144A

     3,680,000         3,698,400   

Newfield Exploration Co.
5.63%, 07/01/2024

     2,265,000         2,253,675   

Oasis Petroleum, Inc.

     

6.50%, 11/01/2021

     755,000         807,850   

6.88%, 03/15/2022 - 144A

     2,200,000         2,332,000   

6.88%, 01/15/2023

     2,510,000         2,673,150   

PBF Holding Co. LLC / PBF Finance Corp.
8.25%, 02/15/2020

     1,565,000         1,698,025   

Plains Exploration & Production Co.
6.88%, 02/15/2023

     3,510,000         3,913,650   

QEP Resources, Inc.
5.25%, 05/01/2023

     1,455,000         1,364,063   

Range Resources Corp.
6.75%, 08/01/2020

     1,320,000         1,428,900   

Rosetta Resources, Inc.

     

5.63%, 05/01/2021

     1,610,000         1,605,975   

5.88%, 06/01/2022

     1,815,000         1,801,387   

9.50%, 04/15/2018

     825,000         882,750   

Samson Investment Co.
10.50%, 02/15/2020 - 144A

     1,825,000         1,989,250   

SandRidge Energy, Inc.

     

7.50%, 03/15/2021

     890,000         932,275   

8.13%, 10/15/2022

     90,000         95,400   

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

     2,985,000         59,700   

Seven Generations Energy, Ltd.
8.25%, 05/15/2020 - 144A

     2,050,000         2,214,000   

SM Energy Co.
6.50%, 01/01/2023

     1,445,000         1,515,444   

SunCoke Energy Partners, LP / SunCoke Energy Partners Finance Corp.
7.38%, 02/01/2020 - 144A (C)

     465,000         485,925   

Tesoro Corp.
5.38%, 10/01/2022

     1,665,000         1,685,813   

Ultra Petroleum Corp. 5.75%, 12/15/2018 - 144A

     445,000         457,238   
     Principal      Value  

Oil, Gas & Consumable Fuels (continued)

  

   

WPX Energy, Inc.

     

5.25%, 01/15/2017

     $   615,000         $   656,513   

6.00%, 01/15/2022

     2,725,000         2,725,000   

Paper & Forest Products - 0.2%

     

Domtar Corp.
10.75%, 06/01/2017

     1,540,000         1,922,103   

Pharmaceuticals - 1.6%

     

Capsugel SA
7.00%, 05/15/2019 - 144A

     650,000         662,188   

ENDO Health Solutions, Inc.

     

7.00%, 07/15/2019 - 12/15/2020

     1,930,000         2,065,100   

7.25%, 01/15/2022

     2,275,000         2,434,250   

Salix Pharmaceuticals, Ltd.
6.00%, 01/15/2021 - 144A

     1,550,000         1,588,750   

Valeant Pharmaceuticals International
6.38%, 10/15/2020 - 144A

     4,365,000         4,599,619   

Valeant Pharmaceuticals International, Inc.
7.50%, 07/15/2021 - 144A

     1,945,000         2,134,637   

Professional Services - 1.2%

     

FTI Consulting, Inc.
6.00%, 11/15/2022

     1,045,000         1,058,062   

TransUnion Holding Co., Inc.

     

8.13%, 06/15/2018

     1,980,000         2,088,900   

9.63%, 06/15/2018

     3,545,000         3,810,875   

TransUnion LLC / TransUnion Financing Corp.
11.38%, 06/15/2018

     3,035,000         3,308,150   

Real Estate Investment Trusts - 0.0% (H)

     

RHP Hotel Properties, LP / RHP Finance Corp.
5.00%, 04/15/2021

     385,000         380,188   

Real Estate Management & Development - 0.5%

  

Algeco Scotsman Global Finance PLC
10.75%, 10/15/2019 - 144A

     1,670,000         1,761,850   

CBRE Services, Inc.
6.63%, 10/15/2020

     2,470,000         2,642,900   

Road & Rail - 0.5%

     

Avis Budget Car Rental LLC / Avis Budget Finance, Inc.

     

5.50%, 04/01/2023

     620,000         600,625   

9.75%, 03/15/2020

     2,165,000         2,538,463   

Watco Cos. LLC / Watco Finance Corp.
6.38%, 04/01/2023 - 144A

     950,000         940,500   

Semiconductors & Semiconductor Equipment - 0.3%

  

Freescale Semiconductor, Inc.
6.00%, 01/15/2022 - 144A

     1,390,000         1,407,375   

NXP BV / NXP Funding LLC
5.75%, 02/15/2021 - 144A

     990,000         1,034,550   

Software - 2.7%

     

Activision Blizzard, Inc.
6.13%, 09/15/2023 - 144A

     935,000         974,738   

Audatex North America, Inc.
6.00%, 06/15/2021 - 144A

     1,335,000         1,398,413   

BMC Software Finance, Inc.
8.13%, 07/15/2021 - 144A

     2,620,000         2,698,600   

First Data Corp.

     

6.75%, 11/01/2020 - 144A

     200,000         208,000   

7.38%, 06/15/2019 - 144A

     2,535,000         2,706,112   

10.63%, 06/15/2021 - 144A

     3,210,000         3,478,837   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    60

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Software (continued)

     

First Data Corp. (continued)

     

11.25%, 01/15/2021 - 144A

     $   1,725,000         $   1,903,969   

11.75%, 08/15/2021 - 144A (B)

     910,000         960,050   

Infor US, Inc.
9.38%, 04/01/2019

     1,605,000         1,805,625   

Nuance Communications, Inc.
5.38%, 08/15/2020 - 144A

     870,000         850,425   

Southern Graphics, Inc.
8.38%, 10/15/2020 - 144A

     1,565,000         1,619,775   

SSI Investments II, Ltd. / SSI Co.-Issuer LLC
11.13%, 06/01/2018

     4,375,000         4,746,875   

Specialty Retail - 5.8%

     

Academy, Ltd.
9.25%, 08/01/2019 - 144A

     2,170,000         2,397,850   

Burlington Holdings LLC / Burlington Holding Finance, Inc.
9.00%, 02/15/2018 - 144A (A)

     733,000         751,325   

Claire’s Stores, Inc.

     

6.13%, 03/15/2020 - 144A

     1,050,000         1,013,250   

9.00%, 03/15/2019 - 144A

     2,330,000         2,528,050   

Express LLC
8.75%, 03/01/2018

     5,145,000         5,421,544   

Hot Topic, Inc.
9.25%, 06/15/2021 - 144A

     3,590,000         3,760,525   

L Brands, Inc.

     

5.63%, 02/15/2022

     2,700,000         2,760,750   

6.63%, 04/01/2021

     4,135,000         4,538,162   

8.50%, 06/15/2019

     2,650,000         3,180,000   

Michaels FinCo Holdings LLC / Michaels FinCo, Inc.
7.50%, 08/01/2018 - 144A (A)

     3,875,000         4,030,000   

Michaels Stores, Inc.

     

7.75%, 11/01/2018

     450,000         488,250   

11.38%, 11/01/2016

     658,000         673,641   

New Academy Finance Co. LLC / New Academy Finance Corp.
8.00%, 06/15/2018 - 144A (A)

     3,995,000         4,094,915   

Party City Holdings, Inc.
8.88%, 08/01/2020

     2,320,000         2,598,400   

Petco Animal Supplies, Inc.
9.25%, 12/01/2018 - 144A

     3,325,000         3,566,062   

Petco Holdings, Inc.
8.50%, 10/15/2017 - 144A (A)

     3,895,000         3,972,900   

Radio Systems Corp.
8.38%, 11/01/2019 - 144A

     1,160,000         1,273,100   

Sally Holdings LLC / Sally Capital, Inc.
5.75%, 06/01/2022

     2,920,000         3,036,800   

Textiles, Apparel & Luxury Goods - 0.6%

  

   

Levi Strauss & Co.
6.88%, 05/01/2022

     1,075,000         1,182,500   

PVH Corp.
7.75%, 11/15/2023

     2,795,000         3,237,303   

Quiksilver, Inc. / QS Wholesale, Inc.

     

7.88%, 08/01/2018 - 144A

     285,000         309,225   

10.00%, 08/01/2020

     240,000         271,200   

Trading Companies & Distributors - 1.5%

  

   

International Lease Finance Corp.

     

8.25%, 12/15/2020

     2,775,000         3,246,750   

8.63%, 09/15/2015 - 01/15/2022

     3,555,000         4,097,088   
     Principal      Value  

Trading Companies & Distributors (continued)

  

International Lease Finance Corp. (continued)

  

   

8.75%, 03/15/2017

     $   2,455,000         $   2,890,762   

Rexel SA
5.25%, 06/15/2020 - 144A

     2,465,000         2,477,325   

Wireless Telecommunication Services - 4.7%

  

   

Digicel Group, Ltd.
10.50%, 04/15/2018 - 144A

     1,045,000         1,118,150   

Digicel, Ltd.
8.25%, 09/01/2017 - 144A

     2,574,000         2,676,960   

iPCS, Inc.
3.52%, 05/01/2014 (A)

     880,000         880,000   

MetroPCS Wireless, Inc.

     

6.25%, 04/01/2021 - 144A

     815,000         845,562   

6.63%, 04/01/2023 - 144A

     1,390,000         1,435,175   

NII International Telecom SCA
7.88%, 08/15/2019 - 144A

     1,895,000         1,430,725   

SBA Communications Corp.
5.63%, 10/01/2019

     1,110,000         1,143,300   

Softbank Corp.
4.50%, 04/15/2020 - 144A

     4,700,000         4,582,500   

Sprint Communications, Inc.

     

6.00%, 11/15/2022

     4,200,000         4,095,000   

7.00%, 08/15/2020

     775,000         838,937   

9.00%, 11/15/2018 - 144A

     6,075,000         7,320,375   

9.13%, 03/01/2017

     995,000         1,169,125   

Sprint Corp.

     

7.13%, 06/15/2024 - 144A

     1,575,000         1,598,625   

7.25%, 09/15/2021 - 144A

     1,940,000         2,083,075   

7.88%, 09/15/2023 - 144A

     4,520,000         4,859,000   

T-Mobile USA, Inc.

     

6.13%, 01/15/2022

     705,000         717,338   

6.50%, 01/15/2024

     655,000         663,188   

6.63%, 04/28/2021

     1,360,000         1,431,400   

6.73%, 04/28/2022

     905,000         943,462   

6.84%, 04/28/2023

     455,000         472,063   
    

 

 

  

Total Corporate Debt Securities (cost $729,767,989)

  

      762,336,649   
    

 

 

  

CONVERTIBLE BONDS - 0.0% (H)

     

Independent Power Producers & Energy Traders - 0.0%

  

Mirant Corp. (Escrow Certificates) Series 4, Class A
2.50%, 06/15/2021 (E)

     1,220,000         0   

Media - 0.0% (H)

     

Mood Media Corp. Series 1
10.00%, 10/31/2015 (C) (E) (I)

     7,000         5,033   
    

 

 

  

Total Convertible Bonds (cost $2,913)

  

      5,033   
    

 

 

  

LOAN ASSIGNMENTS - 5.2%

     

Chemicals - 0.6%

     

Ineos US Finance LLC, 6 Year Term Loan
4.00%, 05/04/2018 (G)

     3,911,507         3,920,065   

Tronox Pigments BV, Term Loan
4.50%, 03/19/2020 (G)

     1,094,500         1,107,422   

Commercial Services & Supplies - 0.2%

  

   

Rural/Metro Corp.
5.75%, 06/29/2018 (G)

     1,322,380         1,251,303   

Diversified Financial Services - 0.2%

  

   

Alixpartners LLP, 2nd Lien
9.00%, 07/12/2021 (G)

     250,000         255,000   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    61

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Diversified Financial Services (continued)

  

Nuveen Investments, Inc., 2nd Lien
6.50%, 02/28/2019 (G)

     $  1,700,000         $  1,678,750   

Food Products - 0.1%

     

New HB Acquisition LLC
6.75%, 04/09/2020 (G)

     700,000         724,500   

Hotels, Restaurants & Leisure - 1.0%

  

Hilton Worldwide Finance LLC
3.75%, 10/26/2020 (G)

     1,815,789         1,828,148   

Regent Seven Seas, Term Loan B
4.75%, 12/21/2018 (G)

     2,587,250         2,613,122   

Sheridan Holdings, Inc., 2nd Lien
–, 12/13/2021 (J)

     1,900,000         1,923,750   

WMG Acquisition Corp.
3.75%, 07/01/2020 (G)

     1,695,750         1,696,281   

Household Products - 0.3%

     

Sun Products Corporation
5.50%, 03/23/2020 (G)

     2,779,000         2,626,155   

Insurance - 0.7%

     

Asurion LLC, New Term Loan
3.50%, 07/08/2020 (G)

     1,293,500         1,268,439   

Lonestar Intermediate Super Holdings LLC, Term Loan B
11.00%, 09/02/2019 (G)

     4,300,000         4,434,375   

Machinery - 0.3%

     

Pacific Industrial Services BidCo Pty, Ltd., 2nd Lien
8.75%, 04/02/2019 (G)

     2,300,000         2,348,875   

Media - 0.2%

     

McGraw-Hill Global Education Holdings LLC
9.00%, 03/22/2019 (G)

     1,606,500         1,635,015   

Metals & Mining - 0.7%

     

FMG Resources PTY Ltd., Term Loan B
4.25%, 06/28/2019 (G)

     6,132,530         6,214,295   

Multiline Retail - 0.2%

     

Hudson’s Bay Company, 2nd Lien
8.25%, 11/04/2021 (G)

     1,700,000         1,755,250   

Oil, Gas & Consumable Fuels - 0.3%

  

EP Energy LLC, Term Loan B3
3.50%, 05/24/2018 (G)

     1,666,666         1,665,178   

Rice Energy LLC, 2nd Lien
8.50%, 10/25/2018 (G)

     1,193,985         1,217,864   

Specialty Retail - 0.2%

     

Rue21, Inc. Term Loan B
5.63%, 10/07/2020 (G)

     2,394,000         2,010,960   

Transportation Infrastructure - 0.2%

  

CEVA Group PLC, Extended
5.25%, 08/31/2016 (G)

     534,207         514,175   

CEVA Group PLC, Extended EGL
5.24%, 08/31/2016 (G)

     958,861         922,903   

CEVA Group PLC, Extended Synthetic
5.35%, 08/31/2016 (G)

     535,304         515,230   
    

 

 

  

Total Loan Assignments (cost $43,592,148)

  

      44,127,055   
    

 

 

  
     Shares      Value  

CONVERTIBLE PREFERRED STOCKS - 1.0%

  

   

Electronic Equipment & Instruments - 0.3%

  

   

Lucent Technologies Capital Trust I, 7.75% (K)

     2,375         2,386,875   
     Shares      Value  

Health Care Equipment & Supplies - 0.4%

  

   

Alere, Inc. - Series B, 3.00%

       12,775         $   3,657,482   

Oil, Gas & Consumable Fuels - 0.3%

  

Chesapeake Energy Corp., 4.50%

     12,015         1,101,655   

Chesapeake Energy Corp. 144A, 5.75%

     1,580         1,843,663   
    

 

 

  

Total Convertible Preferred Stocks (cost $8,103,189)

  

      8,989,675   
    

 

 

  

COMMON STOCKS - 0.2%

     

Building Products - 0.2%

     

Panolam Holdings Co. - 
GDR (C) (E) (I) (K)

     1,803         1,757,168   

Hotels, Restaurants & Leisure - 0.0% (H)

  

Greektown Superholdings, Inc. - Class A1 (K)

     1,131         1   

Independent Power Producers & Energy Traders - 0.0%

  

Mirant Corp. (Escrow Certificates) (E) (K)

     550,000         0   

Media - 0.0% (H)

     

New Cotai LLC / New Cotai Capital Corp. - Class B (C) (E) (K)

     6         185,250   
    

 

 

  

Total Common Stocks (cost $3,372,494)

  

      1,942,419   
    

 

 

  

RIGHT - 0.2%

     

Hotels, Restaurants & Leisure - 0.2%

  

BLB Contingent Value
Rights (C) (I) (K)

     2,010         1,381,875   
    

 

 

  

Total Right (cost $2,010,000)

  

      1,381,875   
    

 

 

  

WARRANTS - 0.0% (H)

     

Food Products - 0.0% (H)

     

American Seafoods Group LLC (K)
Expiration: 05/15/2018
Exercise Price: $0.01

     1,265         126,500   

Media - 0.0%

     

Reader’s Digest Association, Inc. (E) (K)
Expiration: 02/19/2014
Exercise Price: $47.35

     13,112         0   
    

 

 

  

Total Warrants (cost $0)

  

      126,500   
    

 

 

  

INVESTMENT COMPANY - 0.0%

  

Diversified Financial Services - 0.0%

  

Adelphia Recovery Trust -Series ACC1 (E) (K)

     2,697,805         0   
    

 

 

  

Total Investment Company (cost $2,633,431)

  

      0   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 3.3%

  

State Street Bank & Trust Co.
0.01% (L), dated 12/31/2013, to be repurchased at $28,643,517 on 01/02/2014. Collateralized by U.S. Government Agency Obligations,
3.50% - 4.00%, due 09/15/2040, and with a total value of $29,220,012.

     $  28,643,501         28,643,501   
    

 

 

  

Total Repurchase Agreement (cost $28,643,501)

  

      28,643,501   
    

 

 

  
    

Total Investment Securities (cost $818,125,665) (M)

  

      847,552,707   

Other Assets and Liabilities -
 Net  - 1.1%

        9,353,594   
    

 

 

  

Net Assets - 100.0%

        $  856,906,301   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    62

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY: (M)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

Corporate Debt Securities

                                

Aerospace & Defense

   $ —      $ 10,144,250      $ —      $ 10,144,250   

Air Freight & Logistics

     —        2,099,520        —        2,099,520   

Auto Components

     —        3,639,545        —        3,639,545   

Automobiles

     —        3,202,063        —        3,202,063   

Beverages

     —        3,785,500        —        3,785,500   

Biotechnology

     —        1,193,050        —        1,193,050   

Building Products

     —        9,051,237        —        9,051,237   

Capital Markets

     —        2,267,075        —        2,267,075   

Chemicals

     —        15,611,150        —        15,611,150   

Commercial Banks

     —        2,068,025        —        2,068,025   

Commercial Services & Supplies

     —        30,750,474        —        30,750,474   

Communications Equipment

     —        17,876,260        —        17,876,260   

Computers & Peripherals

     —        5,831,075        —        5,831,075   

Consumer Finance

     —        18,257,506        —        18,257,506   

Containers & Packaging

     —        13,288,912        —        13,288,912   

Distributors

     —        4,400,869        —        4,400,869   

Diversified Consumer Services

     —        11,484,600        —        11,484,600   

Diversified Financial Services

     —        16,938,045        —        16,938,045   

Diversified Telecommunication Services

     —        41,236,573        —        41,236,573   

Electric Utilities

     —        662,400        —        662,400   

Energy Equipment & Services

     —        17,165,485        —        17,165,485   

Food & Staples Retailing

     —        3,540,313        —        3,540,313   

Food Products

     —        9,325,046        —        9,325,046   

Gas Utilities

     —        8,350,950        —        8,350,950   

Health Care Equipment & Supplies

     —        31,863,231        —        31,863,231   

Health Care Providers & Services

     —        34,945,481        —        34,945,481   

Health Care Technology

     —        4,019,738        —        4,019,738   

Hotels, Restaurants & Leisure

     —        65,364,261        668,348        66,032,609   

Household Durables

     —        3,918,215        —        3,918,215   

Household Products

     —        16,918,531        —        16,918,531   

Independent Power Producers & Energy Traders

     —        7,198,438        —        7,198,438   

Industrial Conglomerates

     —        8,171,425        —        8,171,425   

Insurance

     —        4,633,238        —        4,633,238   

Internet Software & Services

     —        1,201,750        —        1,201,750   

IT Services

     —        3,131,563        —        3,131,563   

Life Sciences Tools & Services

     —        4,578,750        —        4,578,750   

Machinery

     —        6,851,325        —        6,851,325   

Media

     —        44,579,953        —        44,579,953   

Metals & Mining

     —        19,124,412        —        19,124,412   

Oil, Gas & Consumable Fuels

     —        84,565,926        —        84,565,926   

Paper & Forest Products

     —        1,922,103        —        1,922,103   

Pharmaceuticals

     —        13,484,544        —        13,484,544   

Professional Services

     —        10,265,987        —        10,265,987   

Real Estate Investment Trusts

     —        380,188        —        380,188   

Real Estate Management & Development

     —        4,404,750        —        4,404,750   

Road & Rail

     —        4,079,588        —        4,079,588   

Semiconductors & Semiconductor Equipment

     —        2,441,925        —        2,441,925   

Software

     —        23,351,419        —        23,351,419   

Specialty Retail

     —        50,085,524        —        50,085,524   

Textiles, Apparel & Luxury Goods

     —        5,000,228        —        5,000,228   

Trading Companies & Distributors

     —        12,711,925        —        12,711,925   

Wireless Telecommunication Services

     —        40,303,960        —        40,303,960   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    63

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY (continued): (M)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

Convertible Bonds

                                

Independent Power Producers & Energy Traders

   $ —      $ —      $ 0      $ 0   

Media

     —        —        5,033        5,033   

Loan Assignments

     —        44,127,055        —        44,127,055   

Convertible Preferred Stocks

     8,989,675        —        —        8,989,675   

Common Stocks

                                

Building Products

     —        —        1,757,168        1,757,168   

Hotels, Restaurants & Leisure

     1        —        —        1   

Independent Power Producers & Energy Traders

     —        —        0        0   

Media

     —        —        185,250        185,250   

Right

     1,381,875        —        —        1,381,875   

Warrants

                                

Food Products

     126,500        —        —        126,500   

Media

     —        —        0        0   

Investment Company

                                

Diversified Financial Services

     —        —        0        0   

Repurchase Agreement

     —        28,643,501        —        28,643,501   

Total Investment Securities

   $ 10,498,051      $ 834,438,857      $ 2,615,799      $ 847,552,707   

Level 3 Rollforward - Investment Securities

 

Securities   Beginning
Balance at
December 31, 2012		     Purchases (O)     Sales (P)     Accrued
Discounts
(Premiums)		     Total
Realized
Gain (Loss)		     Net Change in
Unrealized
Appreciation
(Depreciation) (Q)		     Transfers
into
Level 3		     Transfers
out of
Level 3		     Ending
Balance at
December 31, 2013 (R)		     Net Change in
Unrealized
Appreciation
(Depreciation)
on Investments
Held at
December  31, 2013 (Q)		  
Convertible Bonds   $ 7,252      $ —      $ —      $ 2,233      $ —      $ (4,452 )    $ —      $ —        5,033      $ (4,452 ) 
Corporate Debt Securities     1,059,269        —        (366,983 )      (2,944 )      (2,124,177 )      2,103,183        —        —        668,348        (24,846 ) 
Common Stocks     3,182,619        185,250        —        —        —        (1,425,451 )      —        —        1,942,418        (1,425,451 ) 
Investment Company     0        —        —        —        —        —        —        —        0        —   
Preferred Corporate Debt     0        —        —        —        (3,758,574 )      3,758,574        —        —        —        —   
Warrants     0        —        —        —        —        —        —        —        0        —   

Total

   $ 4,249,140      $ 185,250      $ (366,983 )    $ (711 )    $ (5,882,751 )    $ 4,431,854      $ —      $ —      $ 2,615,799      $ (1,454,749 ) 

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) When-issued security. A conditional transaction in a security authorized for issuance, but not yet issued.
(C) Illiquid. Total aggregate fair value of illiquid securities is $10,249,494, or 1.20% of the portfolio’s net assets.
(D) In default.
(E) Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate fair value of securities is $2,615,799, or 0.31% of the portfolio’s net assets.
(F) Step bond—Coupon rate changes in increments to maturity. Rate disclosed is as of December 31, 2013. Maturity date disclosed is the ultimate maturity date.
(G) Floating or variable rate note. Rate is listed as of December 31, 2013.
(H) Percentage rounds to less than 0.1%.

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    64

Transamerica Partners High Yield Bond Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

NOTES TO SCHEDULE OF INVESTMENTS (continued):

 

(I) Restricted security. At December 31, 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       $ 2,913         $ 5,033           0.00 %(s) 

Common Stocks

   

Panolam Holdings Co.

      11/29/2009         3,079,799           1,757,168           0.21   

Right

   

BLB Contingent Value Rights

      11/22/2010         2,010,000           1,381,875           0.16   
        

 

 

       

 

 

       

 

 

  
         $   5,092,712         $   3,144,076           0.37 % 
        

 

 

       

 

 

       

 

 

  

 

(J)  All or portion of this security represents unsettled loan commitment at December 31, 2013 where the rate will be determined at time of settlement.
(K) Non-income producing security.
(L) Rate shown reflects the yield at December 31, 2013.
(M) Aggregate cost for federal income tax purposes is $818,178,174. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $41,946,130 and $12,571,597, respectively. Net unrealized appreciation for tax purposes is $29,374,533.
(N)  Transfers between levels are considered to have occurred at the end of the reporting period. As of the period ended December 31, 2013, securities with fair market value of $1,381,875 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.
(O)  Purchases include all purchases of securities and securities received in corporate actions.
(P)  Sales include all sales of securities, maturities, paydowns and securities tendered in a corporate action.
(Q)  Any difference between Net Change in Unrealized Appreciation (Depreciation) and Net Change in Unrealized Appreciation (Depreciation) on Investments Held at December 31, 2013 may be due to an investment no longer held or categorized as Level 3 at year end.
(R)  Level 3 securities were not considered significant to the portfolio.
(S)  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 December 31, 2013, these securities aggregated $336,706,607, or 39.29% of the portfolio’s net assets.
GDR    Global Depositary Receipt
MTN    Medium Term Note

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    65

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Principal      Value  

U.S. GOVERNMENT OBLIGATIONS - 4.4%

  

   

U.S. Treasury Bond

     

2.75%, 11/15/2042

     $  5,000         $  3,953   

3.75%, 11/15/2043

     1,748,600         1,690,130   

U.S. Treasury Inflation Indexed Bond
0.75%, 02/15/2042

     160,217         128,800   

U.S. Treasury Inflation Indexed Note

     

0.13%, 01/15/2023

     91,070         86,011   

0.38%, 07/15/2023

     602,184         580,778   

U.S. Treasury Note

     

0.25%, 11/30/2015

     460,000         459,084   

0.63%, 12/15/2016

     615,000         612,502   

1.25%, 11/30/2018

     118,500         115,963   

1.50%, 12/31/2018

     420,000         415,275   

1.63%, 11/15/2022

     68,000         61,381   

2.00%, 11/30/2020

     500,000         486,719   

2.75%, 11/15/2023

     860,000         841,322   
    

 

 

  

Total U.S. Government Obligations (cost $5,616,112)

  

      5,481,918   
    

 

 

  

U.S. GOVERNMENT AGENCY OBLIGATIONS - 14.1%

  

Fannie Mae

     

2.50%, 09/01/2027

     634,071         628,263   

3.00%, 03/01/2041 (A)

     36,830         38,867   

3.00%, 02/01/2043 - 06/01/2043

     922,216         876,754   

3.13%, 03/01/2041 (A)

     31,057         32,602   

3.22%, 12/01/2040 (A)

     43,483         45,539   

3.33%, 10/25/2023 (A)

     55,000         53,735   

3.50%, 09/01/2041 (A)

     58,899         61,883   

3.50%, 06/01/2043 - 08/01/2043

     549,942         547,292   

4.00%, 02/01/2025 - 01/01/2044

     1,044,563         1,086,039   

4.50%, 02/01/2025 - 12/01/2043

     886,146         941,480   

5.00%, 09/01/2033 - 11/01/2040

     476,407         518,528   

5.50%, 09/01/2036 - 08/01/2037

     264,554         291,250   

6.00%, 02/01/2038 - 04/01/2040

     193,169         214,136   

6.50%, 05/01/2040

     188,535         209,455   

Fannie Mae, IO
2.40%, 01/25/2022 (A)

     177,979         22,807   

Fannie Mae, TBA

     

3.00%

     800,000         795,043   

3.50%

     200,000         209,148   

4.00%

     700,000         720,563   

4.50%

     200,000         212,031   

6.00%

     200,000         221,641   

Farmer Mac Guaranteed Notes Trust
Series 2007-1
5.13%, 04/19/2017 - 144A

     350,000         395,753   

Freddie Mac

     

2.64%, 01/25/2023

     185,000         173,739   

3.00%, 03/01/2043 - 04/01/2043

     429,747         407,641   

3.03%, 02/01/2041 (A)

     42,831         45,255   

3.06%, 07/25/2023 (A)

     85,000         81,863   

3.30%, 04/25/2023 (A)

     105,000         103,394   

3.46%, 08/25/2023 (A)

     50,000         49,687   

3.50%, 08/01/2042 - 04/01/2043

     121,195         120,489   

4.50%, 11/01/2043

     99,882         105,955   

5.50%, 06/01/2041

     96,322         104,979   

Freddie Mac, IO

     

0.90%, 10/25/2022 (A)

     558,310         34,031   

1.51%, 06/25/2022 (A)

     377,876         37,091   

1.56%, 12/25/2018 (A)

     277,723         18,301   
     Principal      Value  

U.S. GOVERNMENT AGENCY OBLIGATIONS (continued)

  

Freddie Mac, IO (continued)

     

1.78%, 05/25/2019 (A)

     $  218,590         $  17,592   

Freddie Mac, TBA

     

2.50%

     200,000         198,148   

3.00%

     100,000         101,852   

3.50%

     1,360,000         1,349,375   

4.00%

     400,000         409,531   

4.50%

     400,000         421,859   

5.00%

     400,000         431,375   

FREMF Mortgage Trust

     

Series 2012-K23, Class B

     

3.66%, 10/25/2045 - 144A (A)

     40,000         36,710   

Series 2012-K706, Class C

     

4.02%, 11/25/2044 - 144A (A)

     20,000         19,339   

Series 2012-K711, Class B

     

3.56%, 08/25/2045 - 144A (A)

     50,000         48,632   

Series 2013-K712, Class B

     

3.37%, 05/25/2045 - 144A (A)

     110,000         105,006   

Ginnie Mae

     

1.32%, 11/20/2059 (A)

     430,491         438,593   

4.00%, 09/15/2042 - 11/20/2043

     1,147,088         1,195,530   

4.50%, 05/20/2041 - 02/15/2042

     783,759         841,422   

5.00%, 12/15/2040

     80,113         87,035   

Ginnie Mae, IO
1.02%, 02/16/2053 (A)

     308,435         22,653   

Ginnie Mae, TBA

     

3.00%

     500,000         483,086   

3.50%

     600,000         605,273   

4.50%

     200,000         213,391   

5.00%

     300,000         325,160   

5.50%

     200,000         219,656   

Resolution Funding Corp.
Zero Coupon, 07/15/2018 - 10/15/2018

     500,000         458,419   
    

 

 

  

Total U.S. Government Agency Obligations (cost $17,493,128)

   

      17,434,871   
    

 

 

  

FOREIGN GOVERNMENT OBLIGATIONS - 0.4%

  

   

Brazilian Government International Bond
7.13%, 01/20/2037

     25,000         28,625   

Italy Buoni Poliennali Del Tesoro
2.55%, 10/22/2016 - Reg S

     EUR  84,709         119,302   

Mexico Government International Bond
4.00%, 10/02/2023

     $  180,000         178,200   

Poland Government International Bond Series 2013-NPL1, Class A
5.00%, 03/23/2022

     40,000         42,750   

Spain Government Bond
4.40%, 10/31/2023 - Reg S

     EUR  95,000         133,057   
    

 

 

  

Total Foreign Government Obligations (cost $502,097)

  

      501,934   
    

 

 

  

MORTGAGE-BACKED SECURITIES - 5.9%

  

Adjustable Rate Mortgage Trust
Series 2004-2, Class 7A2
1.01%, 02/25/2035 (A)

     $  40,803         40,311   

Banc of America Commercial
Mortgage Trust

     

Series 2007-1, Class AMFX

     

5.48%, 01/15/2049 (A)

     10,000         10,441   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    66

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Banc of America Commercial Mortgage Trust (continued)

     

Series 2007-3, Class A1A

     

5.65%, 06/10/2049 (A)

     $  112,455         $  122,456   

Series 2007-3, Class A4

     

5.65%, 06/10/2049 (A)

     60,000         66,302   

Series 2007-3, Class AM

     

5.65%, 06/10/2049 (A)

     55,000         60,544   

Banc of America Re-REMIC Trust
Series 2010-UB4, Class A4A
5.01%, 12/20/2041 - 144A (A)

     79,033         80,563   

BB-UBS Trust
Series 2012-TFT, Class A
2.89%, 06/05/2030 - 144A

     100,000         94,200   

Bear Stearns Commercial Mortgage
Securities
Series 2007-PW17, Class A3
5.74%, 06/11/2050

     71,847         73,750   

Bear Stearns Commercial Mortgage
Securities Trust

     

Series 2006-PW14, Class A1A

     

5.19%, 12/11/2038

     106,218         116,103   

Series 2007-PW15, Class A1A

     

5.32%, 02/11/2044

     71,852         78,684   

Series 2007-PW17, Class A1A

     

5.65%, 06/11/2050 (A)

     69,257         76,619   

Bear Stearns Mortgage Funding Trust
Series 2006-AR5, Class 1A2
0.38%, 12/25/2046 (A)

     294,704         81,365   

Citigroup Commercial Mortgage Trust

     

0.80%, 01/12/2018

     1,290,267         36,099   

3.01%, 01/12/2018

     250,000         244,764   

Series 2005-C3, Class AJ

     

4.96%, 05/15/2043 (A)

     90,000         91,003   

Citigroup Commercial Mortgage Trust, IO
Series 2013-GC15, Class XA
1.31%, 09/10/2046 (A)

     393,936         29,259   

Commercial Mortgage Pass-Through
Certificates

     

Series 2006-C8, Class AM

     

5.35%, 12/10/2046

     55,000         60,081   

Series 2013-CR11, Class AM

     

4.72%, 10/10/2046 (A)

     20,000         20,739   

Series 2013-FL3, Class A

     

1.68%, 10/13/2028 - 144A (A)

     100,000         100,341   

Series 2013-GAM, Class A2

     

3.37%, 02/10/2028 - 144A

     100,000         95,064   

Commercial Mortgage Pass-Through
Certificates, IO

     

Series 2013-CR10, Class XA

     

1.06%, 08/10/2046 (A)

     1,603,149         95,139   

Series 2013-CR6, Class XA

     

1.56%, 03/10/2046 (A)

     723,761         55,684   

Series 2013-CR7, Class XA

     

1.61%, 03/10/2046 (A)

     496,117         44,271   

Series 2013-LC6, Class XA

     

1.80%, 01/10/2046 (A)

     770,615         73,917   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Commercial Mortgage Trust
Series 2007-GG11, Class A4
5.74%, 12/10/2049

     $  30,000         $  33,503   

Countrywide Alternative Loan Trust
Series 2007-22, Class 2A16
6.50%, 09/25/2037

     291,635         225,114   

Credit Suisse First Boston Mortgage
Securities Corp.
Series 2005-C3, Class AJ
4.77%, 07/15/2037

     10,000         10,304   

Credit Suisse Mortgage Capital
Certificates

     

Series 2006-C3, Class AM

     

5.79%, 06/15/2038 (A)

     40,000         43,362   

Series 2010-RR1, Class 2A

     

5.70%, 09/15/2040 - 144A (A)

     90,000         98,248   

Series 2010-RR2, Class 2A

     

5.76%, 09/15/2039 - 144A (A)

     120,000         131,909   

DBRR Trust

     

Series 2012-EZ1, Class A

     

0.95%, 09/25/2045 - 144A

     98,294         98,298   

Series 2013-EZ3, Class A

     

1.64%, 12/18/2049 - 144A (A)

     99,225         99,380   

GE Capital Commercial Mortgage Corp.
Series 2007-C1, Class AAB
5.48%, 12/10/2049

     57,383         59,606   

GMAC Mortgage Corp., Loan Trust
Series 2005-AR1, Class 3A
3.08%, 03/18/2035 (A)

     290,665         279,440   

Greenwich Capital Commercial Funding
Corp.
Series 2007-GG11, Class AM
5.87%, 12/10/2049 (A)

     35,000         38,350   

GS Mortgage Securities Corp. II

     

Series 2012-ALOH, Class A

     

3.55%, 04/10/2034 - 144A

     100,000         98,321   

Series 2012-SHOP, Class A

     

2.93%, 06/05/2031 - 144A

     110,000         109,892   

Series 2013-KING, Class E

     

3.44%, 12/10/2027 - 144A (A)

     100,000         87,015   

GS Mortgage Securities Corp. II, IO

     

Series 2013-GC10, Class XA

     

1.77%, 02/10/2046 (A)

     987,402         105,470   

Series 2013-KYO, Class XB1

     

3.25%, 11/08/2029 - 144A (A)

     1,000,000         46,112   

GS Mortgage Securities Trust

     

Series 2006-GG8, Class AJ

     

5.62%, 11/10/2039

     45,000         44,072   

Series 2006-GG8, Class AM

     

5.59%, 11/10/2039

     20,000         21,922   

Series 2007-GG10, Class A1A

     

5.80%, 08/10/2045 (A)

     73,834         81,055   

Hilton USA Trust, IO
Series 2013-HLT, Class X1FX
1.67%, 11/05/2030 - 144A (A)

     4,500,000         74,988   

Impac CMB Trust
Series 2004-6, Class 1A1
0.97%, 10/25/2034 (A)

     137,426         130,119   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    67

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

IndyMac INDA Mortgage Loan
Trust Series 2007-AR7, Class 1A1
2.80%, 11/25/2037 (A)

     $  258,656         $  236,156   

IndyMac Index Mortgage Loan Trust
Series 2007-AR15, Class 2A1
4.52%, 08/25/2037 (A)

     272,809         227,248   

JPMBB Commercial Mortgage Securities
Trust, IO
Series 2013-C14, Class XA
1.04%, 08/15/2046 (A)

     995,099         50,470   

JPMorgan Chase Commercial Mortgage
Securities Corp.

     

Series 2004-CB8, Class A1A

     

4.16%, 01/12/2039 - 144A

     67,079         67,274   

Series 2006-CB14, Class AM

     

5.45%, 12/12/2044 (A)

     70,000         75,163   

Series 2006-LDP9, Class AM

     

5.37%, 05/15/2047

     10,000         10,565   

Series 2007-CB18, Class A3

     

5.45%, 06/12/2047

     17,044         17,240   

Series 2008-C2, Class ASB

     

6.13%, 02/12/2051 (A)

     147,049         157,566   

Series 2013-C10, Class C

     

4.16%, 12/15/2047 (A)

     30,000         28,309   

Series 2013-LC11, Class C

     

3.96%, 04/15/2046 (A)

     20,000         18,361   

JPMorgan Chase Commercial Mortgage
Securities Corp., IO
Series 2012-LC9, Class XA
1.95%, 12/15/2047 (A)

     993,348         103,801   

JPMorgan Chase Commercial Mortgage Securities Trust

     

Series 2007-CB18, Class A1A

     

5.43%, 06/12/2047 (A)

     140,575         154,127   

Series 2007-LD12, Class A1A

     

5.85%, 02/15/2051 (A)

     128,892         144,670   

Series 2007-LDPX, Class A1A

     

5.44%, 01/15/2049

     82,354         90,753   

LB-UBS Commercial Mortgage Trust

     

Series 2005-C2, Class AJ

     

5.21%, 04/15/2030 (A)

     40,000         41,412   

Series 2007-C7, Class A3

     

5.87%, 09/15/2045 (A)

     37,914         42,049   

Series 2007-C7, Class AM

     

6.16%, 09/15/2045 (A)

     30,000         34,290   

Merrill Lynch / Countrywide Commercial
Mortgage Trust
Series 2007-9, Class A4
5.70%, 09/12/2049

     200,000         222,220   

Merrill Lynch Mortgage Investors Trust

     

Series 2003-F, Class A1

     

0.81%, 10/25/2028 (A)

     90,529         89,498   

Series 2004-A3, Class 4A3

     

5.05%, 05/25/2034 (A)

     66,508         65,203   

Merrill Lynch Mortgage Trust

     

Series 2005-CKI1, Class AJ

     

5.28%, 11/12/2037 (A)

     55,000         57,844   

Series 2007-C1, Class A1A

     

5.86%, 06/12/2050 (A)

     40,827         43,701   
     Principal      Value  

MORTGAGE-BACKED SECURITIES (continued)

  

   

Morgan Stanley Bank of America Merrill
Lynch Trust
Series 2013-C13, Class C
4.90%, 11/15/2046 (A)

     $70,000         $  68,397   

Morgan Stanley Bank of America Merrill
Lynch Trust, IO
Series 2013-C13, Class XA
1.26%, 11/15/2046 (A)

     600,000         47,995   

Morgan Stanley Capital I Trust

     

Series 2007-HQ12, Class A2FX

     

5.60%, 04/12/2049 (A)

     51,563         52,232   

Series 2007-HQ12, Class AM

     

5.60%, 04/12/2049 (A)

     85,000         92,752   

Series 2007-IQ13, Class A1A

     

5.31%, 03/15/2044

     135,791         148,753   

Series 2007-IQ13, Class AM

     

5.41%, 03/15/2044

     30,000         32,610   

Series 2007-IQ14, Class A1A

     

5.67%, 04/15/2049 (A)

     51,766         56,511   

Series 2007-IQ15, Class AM

     

5.91%, 06/11/2049 (A)

     85,000         91,441   

Morgan Stanley Capital I Trust, IO
Series 2012-C4, Class XA
2.67%, 03/15/2045 - 144A (A)

     497,261         61,416   

Morgan Stanley Re-REMIC Trust

     

Series 2011-IO, Class A

     

2.50%, 03/23/2051 - 144A

     24,395         24,708   

Series 2012-XA, Class A

     

2.00%, 07/27/2049 - 144A

     63,381         63,888   

Motel 6 Trust
Series 2012-MTL6, Class B
2.74%, 10/05/2025 - 144A

     140,000         138,856   

Queens Center Mortgage Trust
Series 2013-QCA, Class D
3.47%, 01/11/2037 - 144A (A)

     130,000         110,336   

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

     504         504   

SCG Trust
Series 2013-SRP1, Class A
1.57%, 11/15/2026 - 144A (A)

     100,000         100,115   

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

     67,773         67,095   

Structured Asset Mortgage Investments, Inc.
Series 2003-AR4, Class A1
0.87%, 01/19/2034 (A)

     193,190         187,900   

Wachovia Bank Commercial Mortgage Trust
Series 2007-C33, Class AJ
5.92%, 02/15/2051 (A)

     55,000         55,089   

WF-RBS Commercial Mortgage Trust, IO

     

Series 2012-C10, Class XA

     

1.83%, 12/15/2045 - 144A (A)

     453,092         48,644   

Series 2013-C15, Class XA

     

0.72%, 08/15/2046 (A)

     538,124         22,720   
    

 

 

  

Total Mortgage-Backed Securities (cost $7,483,888)

  

      7,214,061   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    68

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

ASSET-BACKED SECURITIES - 6.8%

     

AmeriCredit Automobile Receivables Trust

     

Series 2011-5, Class C

     

3.44%, 10/08/2017

     $  40,000         $  41,409   

Series 2012-2, Class C

     

2.64%, 10/10/2017

     40,000         41,134   

Series 2012-3, Class C

     

2.42%, 05/08/2018

     40,000         40,712   

Series 2012-5, Class C

     

1.69%, 11/08/2018

     25,000         24,960   

Series 2013-4, Class B

     

1.66%, 09/10/2018

     50,000         50,173   

Series 2013-4, Class C

     

2.72%, 09/09/2019

     20,000         20,235   

Series 2013-4, Class D

     

3.31%, 10/08/2019

     25,000         25,351   

Series 2013-5, Class B

     

1.52%, 01/08/2019

     20,000         19,930   

Series 2013-5, Class C

     

2.29%, 11/08/2019

     10,000         10,000   

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

     EUR  53,646         74,376   

Avis Budget Rental Car Funding AESOP LLC
Series 2010-3A, Class A
4.64%, 05/20/2016 - 144A

     $  100,000         104,441   

CHLUPA Trust
Series 2013-VM, Class A
3.33%, 08/15/2020 - 144A

     89,432         89,543   

Chrysler Capital Auto Receivables Trust

     

Series 2013-BA, Class A2

     

0.56%, 12/15/2016 - 144A

     65,000         65,000   

Series 2013-BA, Class A3

     

0.85%, 05/15/2018 - 144A

     60,000         59,994   

Series 2013-BA, Class A4

     

1.27%, 03/15/2019 - 144A

     40,000         40,001   

Series 2013-BA, Class B

     

1.78%, 06/17/2019 - 144A

     20,000         19,998   

Series 2013-BA, Class C

     

2.24%, 09/16/2019 - 144A

     20,000         19,994   

Series 2013-BA, Class D

     

2.89%, 10/15/2020 - 144A

     15,000         14,995   

FGOLD 30YR TBA(REG A)
3.00%

     300,000         284,568   

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

     40,000         40,395   

Ford Credit Floorplan Master Owner Trust

     

Series 2012-1, Class C

     

1.67%, 01/15/2016 (A)

     100,000         100,042   

Series 2012-1, Class D

     

2.27%, 01/15/2016 (A)

     100,000         100,050   

Series 2012-4, Class D

     

2.09%, 09/15/2016

     100,000         100,589   

Hertz Vehicle Financing LLC
Series 2009-2A, Class A2
5.29%, 03/25/2016 - 144A

     120,000         125,485   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

     

HLSS Servicer Advance Receivables
Backed Notes

     

Series 2012-T2, Class B2

     

2.48%, 10/15/2045 - 144A

     $  100,000         $  100,910   

Series 2013-T1, Class A2

     

1.50%, 01/16/2046 - 144A

     210,000         209,223   

Series 2013-T1, Class B1

     

1.25%, 01/15/2044 - 144A

     100,000         99,970   

Series 2013-T3, Class A3

     

1.79%, 05/15/2046 - 144A

     215,000         210,356   

Series 2013-T4, Class AT4

     

1.18%, 08/15/2044 - 144A

     100,000         99,880   

Series 2013-T6, Class AT6

     

1.29%, 09/15/2044 - 144A

     80,000         79,952   

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

     30,000         30,795   

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

     182,171         189,465   

Nationstar Agency Advance Funding Trust

     

Series T2A, Class AT2

     

1.89%, 02/18/2048 - 144A

     110,000         107,207   

Series T2A, Class CT2

     

3.23%, 02/18/2048 - 144A

     150,000         150,727   

Nationstar Mortgage Advance Receivables Trust

     

Series 2013-T1A, Class A1

     

1.08%, 06/20/2044 - 144A

     120,000         119,924   

Series 2013-T2A, Class A2

     

1.68%, 06/20/2046 - 144A

     175,000         174,734   

Nelnet Student Loan Trust
Series 2008-3, Class A4
1.89%, 11/25/2024 (A)

     100,000         103,898   

PFS Financing Corp.

     

Series 2012-AA, Class A

     

1.37%, 02/15/2016 - 144A (A)

     100,000         100,066   

Series 2013-AA, Class B

     

1.27%, 02/15/2018 - 144A (A)

     100,000         99,572   

Prestige Auto Receivables Trust

     

Series 2011-1A, Class D

     

5.18%, 07/16/2018 - 144A

     100,000         103,014   

Series 2013-1A, Class A2

     

1.09%, 02/15/2018 - 144A

     85,204         85,426   

Santander Drive Auto Receivables Trust

     

Series 2011-S1A, Class B

     

1.48%, 05/15/2017 - 144A

     44,944         44,967   

Series 2012-1, Class B

     

2.72%, 05/16/2016

     25,000         25,277   

Series 2012-1, Class C

     

3.78%, 11/15/2017

     35,000         36,187   

Series 2012-3, Class B

     

1.94%, 12/15/2016

     85,000         85,782   

Series 2012-3, Class C

     

3.01%, 04/16/2018

     110,000         113,202   

Series 2012-4, Class C

     

2.94%, 12/15/2017

     20,000         20,583   

Series 2012-5, Class B

     

1.56%, 08/15/2018

     55,000         55,373   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    69

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

Santander Drive Auto Receivables Trust (continued)

  

   

Series 2012-5, Class C

     

2.70%, 08/15/2018

     $  25,000         $  25,680   

Series 2012-6, Class B

     

1.33%, 05/15/2017

     45,000         45,128   

Series 2012-6, Class C

     

1.94%, 03/15/2018

     50,000         50,401   

Series 2012-AA, Class B

     

1.21%, 10/16/2017 - 144A

     120,000         120,114   

Series 2012-AA, Class C

     

1.78%, 11/15/2018 - 144A

     245,000         244,341   

Series 2013-2, Class B

     

1.33%, 03/15/2018

     120,000         120,300   

Series 2013-3, Class B

     

1.19%, 05/15/2018

     105,000         104,535   

Series 2013-4, Class B

     

2.16%, 01/15/2020

     60,000         60,868   

Series 2013-4, Class C

     

3.25%, 01/15/2020

     50,000         51,366   

Series 2013-5, Class B

     

1.55%, 10/15/2018

     150,000         149,757   

Series 2013-5, Class C

     

2.25%, 06/17/2019

     70,000         69,761   

Series 2013-A, Class B

     

1.89%, 10/15/2019 - 144A

     75,000         75,486   

Series 2013-A, Class C

     

3.12%, 10/15/2019 - 144A

     30,000         30,768   

Series 2013-A, Class D

     

3.78%, 10/15/2019 - 144A

     20,000         20,618   

Scholar Funding Trust

  

   

Series 2011-A, Class A

     

1.14%, 10/28/2043 - 144A (A)

     99,763         99,871   

Series 2013-A, Class A

     

0.82%, 01/30/2045 - 144A (A)

     201,839         200,072   

SLC Private Student Loan Trust
Series 2006-A, Class A5
0.41%, 07/15/2036 (A)

     125,000         123,278   

SLM Private Credit Student Loan Trust

     

Series 2002-A, Class A2

     

0.79%, 12/16/2030 (A)

     62,578         61,002   

Series 2004-B, Class A2

     

0.44%, 06/15/2021 (A)

     183,803         181,633   

Series 2005-B, Class A2

     

0.42%, 03/15/2023 (A)

     45,760         44,758   

SLM Private Education Loan Trust

     

Series 2012-A, Class A1

     

1.57%, 08/15/2025 - 144A (A)

     62,353         62,952   

Series 2012-A, Class A2

     

3.83%, 01/17/2045 - 144A

     100,000         103,761   

Series 2012-C, Class A1

     

1.27%, 08/15/2023 - 144A (A)

     122,238         122,930   

Series 2012-C, Class A2

     

3.31%, 10/15/2046 - 144A

     135,000         139,606   

Series 2012-D, Class A2

     

2.95%, 02/15/2046 - 144A

     160,000         163,209   

Series 2012-E, Class A1

     

0.92%, 10/16/2023 - 144A (A)

     70,981         71,026   

Series 2012-E, Class A2B

     

1.92%, 06/15/2045 - 144A (A)

     145,000         147,713   
     Principal      Value  

ASSET-BACKED SECURITIES (continued)

  

SLM Private Education Loan Trust (continued)

  

   

Series 2013-A, Class A1

     

0.77%, 08/15/2022 - 144A (A)

     $  83,167         $  83,040   

Series 2013-A, Class A2A

     

1.77%, 05/17/2027 - 144A

     170,000         164,891   

Series 2013-A, Class A2B

     

1.22%, 05/17/2027 - 144A (A)

     150,000         147,944   

Series 2013-B, Class A1

     

0.82%, 07/15/2022 - 144A (A)

     173,202         173,115   

Series 2013-B, Class A2A

     

1.85%, 06/17/2030 - 144A

     200,000         192,875   

Series 2013-C, Class A1

     

1.02%, 02/15/2022 - 144A (A)

     107,269         107,564   

Series 2013-C, Class A2A

     

2.94%, 10/15/2031 - 144A

     100,000         101,054   

Series 2013-C, Class A2B

     

1.57%, 10/15/2031 - 144A (A)

     100,000         100,216   

SLM Student Loan Trust

     

Series 2008-5, Class A4

     

1.94%, 07/25/2023 (A)

     100,000         104,536   

Series 2013-6, Class A3

     

0.82%, 06/26/2028 (A)

     115,000         115,003   

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

     180,767         181,219   

World Financial Network Credit Card
Master Trust

     

Series 2012-C, Class A

     

2.23%, 08/15/2022

     110,000         109,014   

Series 2012-D, Class A

     

2.15%, 04/17/2023

     145,000         141,107   
    

 

 

  

Total Asset-Backed Securities (cost $8,367,081)

  

      8,372,377   
    

 

 

  

MUNICIPAL GOVERNMENT OBLIGATIONS - 0.1%

  

   

New York City Water & Sewer System (Revenue Bonds)

     

5.38%, 06/15/2043

     45,000         47,301   

5.50%, 06/15/2043

     55,000         58,252   
    

 

 

  

Total Municipal Government Obligations (cost $98,603)

  

      105,553   
    

 

 

  

PREFERRED CORPORATE DEBT SECURITIES - 0.0% (B)

  

Capital Markets - 0.0% (B)

     

State Street Capital Trust IV
1.24%, 06/15/2037 (A)

     10,000         7,555   

Diversified Financial Services - 0.0% (B)

     

Lehman Brothers Holdings Capital Trust VII, Series MTN
5.86%, 01/31/2014 (C) (D) (E) (F)

     200,000         20   

Lehman Brothers Holdings E-Capital Trust I
3.59%, 08/19/2065 (D) (E) (F)

     120,000         12   
    

 

 

  

Total Preferred Corporate Debt Securities (cost $276,441)

  

      7,587   
    

 

 

  

CORPORATE DEBT SECURITIES - 9.7%

  

   

Airlines - 0.1%

     

United Continental Holdings, Inc.

     

6.00%, 07/15/2028

     25,000         21,063   

8.00%, 07/15/2024

     80,000         80,240   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    70

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Automobiles - 0.0% (B)

     

General Motors Co.

     

4.88%, 10/02/2023 - 144A

     $  30,000         $  30,375   

6.25%, 10/02/2043 - 144A

     20,000         20,775   

General Motors Corp. (Escrow Shares)
8.25%, 07/15/2023 (E)

     453,000         0   

Biotechnology - 0.1%

     

Amgen, Inc.

     

5.15%, 11/15/2041

     30,000         29,888   

5.65%, 06/15/2042

     50,000         52,952   

Capital Markets - 0.6%

     

Bank of New York Mellon Corp.,
Series MTN
2.10%, 01/15/2019

     95,000         94,164   

Goldman Sachs Group, Inc.

     

3.63%, 02/07/2016

     40,000         41,979   

3.63%, 01/22/2023 (G)

     56,000         54,228   

5.75%, 01/24/2022

     88,000         99,061   

Goldman Sachs Group, Inc., Series MTN
1.84%, 11/29/2023 (A)

     95,000         96,470   

Morgan Stanley

     

3.45%, 11/02/2015

     123,000         128,031   

3.80%, 04/29/2016

     100,000         105,783   

Morgan Stanley, Series MTN
5.00%, 11/24/2025

     100,000         100,299   

Chemicals - 0.1%

     

LYB International Finance BV
5.25%, 07/15/2043

     2,000         2,011   

LyondellBasell Industries NV
5.00%, 04/15/2019

     60,000         66,637   

Commercial Banks - 0.5%

     

Caixa Economica Federal
2.38%, 11/06/2017 - 144A

     150,000         139,313   

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

     160,000         46,800   

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

     200,000         203,250   

Landsbanki Islands HF
6.10%, 08/25/2011 - 144A (D) (F)

     140,000         12,600   

U.S. Bancorp, Series MTN
1.95%, 11/15/2018

     85,000         84,544   

Wells Fargo & Co.

     

1.50%, 07/01/2015

     40,000         40,562   

2.15%, 01/15/2019

     33,000         32,897   

5.38%, 11/02/2043

     30,000         30,720   

Commercial Services & Supplies - 0.1%

     

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

     100,000         111,125   

Communications Equipment - 0.0% (B)

     

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

     52,000         48,677   

Containers & Packaging - 0.0% (B)

     

Rock Tenn Co.
4.00%, 03/01/2023

     14,000         13,371   

Diversified Financial Services - 1.0%

     

Bank of America Corp.

     

2.60%, 01/15/2019

     57,000         57,252   

3.70%, 09/01/2015

     150,000         156,797   
     Principal      Value  

Diversified Financial Services (continued)

  

Bank of America Corp. (continued)

     

4.10%, 07/24/2023

     $  172,000         $  172,730   

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

     211,000         199,662   

Citigroup, Inc.

     

4.45%, 01/10/2017

     33,000         35,765   

4.50%, 01/14/2022 (G)

     78,000         82,657   

Ford Motor Credit Co. LLC
5.00%, 05/15/2018

     200,000         222,782   

JPMorgan Chase & Co.

     

3.20%, 01/25/2023 (G)

     38,000         36,025   

3.25%, 09/23/2022

     32,000         30,666   

4.75%, 03/01/2015

     75,000         78,467   

Kaupthing Bank Hf

     

7.13%, 05/19/2016 - 144A (D) (E)

     130,000         0   

7.63%, 02/28/2015 - 144A (D)

     710,000         172,175   

Lehman Brothers Holdings Prod (Escrow shares)
1.00%, 02/06/2049 - 144A (F)

     100,000         21,250   

Lehman Brothers Holdings, Inc. (Escrow shares)
6.75%, 12/28/2017 (E) (F)

     480,000         0   

Diversified Telecommunication Services - 0.8%

  

   

AT&T, Inc.
2.38%, 11/27/2018

     46,000         46,039   

Intelsat Jackson Holdings SA
7.25%, 04/01/2019 (G)

     54,000         58,320   

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

     24,000         22,620   

Verizon Communications, Inc.

     

3.65%, 09/14/2018

     217,000         229,708   

3.85%, 11/01/2042 (G)

     224,000         182,964   

4.50%, 09/15/2020

     40,000         42,823   

5.15%, 09/15/2023

     95,000         102,001   

6.55%, 09/15/2043

     292,000         341,628   

Electric Utilities - 0.5%

     

Cleveland Electric Illuminating Co.

     

5.95%, 12/15/2036

     41,000         41,748   

8.88%, 11/15/2018

     9,000         11,384   

Dominion Gas Holdings LLC
4.80%, 11/01/2043 - 144A

     6,000         5,801   

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

     55,000         51,211   

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

     336,000         357,000   

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

     111,000         115,704   

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

     33,000         38,970   

Energy Equipment & Services - 0.6%

     

Enterprise Products Operating LLC
4.45%, 02/15/2043

     33,000         29,150   

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

     10,000         9,595   

Schlumberger Investment SA
3.65%, 12/01/2023

     31,000         30,730   

TransCanada PipeLines, Ltd.
3.75%, 10/16/2023

     35,000         34,113   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    71

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Energy Equipment & Services (continued)

  

Transocean, Inc.

     

2.50%, 10/15/2017

     $  111,000         $  112,176   

5.05%, 12/15/2016

     67,000         74,013   

6.00%, 03/15/2018

     293,000         328,584   

6.50%, 11/15/2020

     61,000         69,658   

6.80%, 03/15/2038

     30,000         33,390   

Food & Staples Retailing - 0.0% (B)

     

CVS Caremark Corp.
5.30%, 12/05/2043

     12,000         12,410   

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

     39,000         34,709   

Food Products - 0.1%

     

WM Wrigley Jr. Co.
2.90%, 10/21/2019 - 144A

     78,000         77,355   

Health Care Equipment & Supplies - 0.2%

  

Boston Scientific Corp.
2.65%, 10/01/2018

     108,000         108,735   

Edwards Lifesciences Corp.
2.88%, 10/15/2018

     81,000         80,527   

Health Care Providers & Services - 0.3%

  

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

     62,000         68,983   

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

     55,000         60,913   

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

     17,000         16,790   

WellPoint, Inc.

     

1.88%, 01/15/2018

     72,000         71,194   

2.30%, 07/15/2018

     165,000         163,691   

3.70%, 08/15/2021

     8,000         7,970   

Hotels, Restaurants & Leisure - 0.1%

     

Caesars Entertainment Resort Properties LLC

     

8.00%, 10/01/2020 - 144A (G)

     49,000         50,960   

11.00%, 10/01/2021 - 144A (G)

     54,000         55,350   

Carnival Corp.
3.95%, 10/15/2020

     13,000         13,010   

GLP Capital, LP / GLP Financing II, Inc.

     

4.38%, 11/01/2018 - 144A

     2,000         2,045   

4.88%, 11/01/2020 - 144A

     5,000         5,000   

Insurance - 0.8%

     

American International Group, Inc.

     

3.38%, 08/15/2020

     89,000         89,518   

3.80%, 03/22/2017

     118,000         126,012   

4.13%, 02/15/2024

     48,000         47,722   

8.18%, 05/15/2058 (A)

     39,000         47,190   

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

     50,000         55,886   

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

     55,000         57,251   

Metropolitan Life Global Funding I
5.13%, 06/10/2014 - 144A

     100,000         102,072   

Prudential Financial, Inc.
5.88%, 09/15/2042 (A) (G)

     28,000         28,455   

Prudential Financial, Inc., Series MTN

     

4.75%, 09/17/2015

     73,000         77,792   

5.38%, 06/21/2020

     133,000         150,305   
     Principal      Value  

Insurance (continued)

     

Swiss Re Capital I LP
6.85%, 05/25/2016 - 144A (A) (C)

     $  70,000         $  73,990   

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

     80,000         78,700   

XLIT, Ltd.

     

2.30%, 12/15/2018

     23,000         22,590   

5.25%, 12/15/2043 (G)

     11,000         11,074   

IT Services - 0.1%

     

International Business Machines Corp.
3.38%, 08/01/2023

     105,000         102,302   

Life Sciences Tools & Services - 0.1%

     

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

     64,000         73,537   

Thermo Fisher Scientific, Inc.

     

2.40%, 02/01/2019

     81,000         80,246   

5.30%, 02/01/2044

     6,000         6,067   

Media - 1.0%

     

CBS Corp.

     

4.63%, 05/15/2018

     22,000         23,850   

5.75%, 04/15/2020

     18,000         20,205   

8.88%, 05/15/2019

     33,000         42,192   

Comcast Corp.

     

4.65%, 07/15/2042

     244,000         227,067   

5.88%, 02/15/2018

     110,000         126,169   

COX Communications, Inc.

     

4.70%, 12/15/2042 - 144A

     3,000         2,520   

8.38%, 03/01/2039 - 144A

     105,000         127,341   

DIRECTV Holdings LLC / DIRECTV
Financing Co., Inc.

     

3.80%, 03/15/2022 (G)

     35,000         33,622   

5.00%, 03/01/2021

     65,000         68,283   

5.15%, 03/15/2042

     55,000         49,396   

NBCUniversal Media LLC

     

4.38%, 04/01/2021

     108,000         114,310   

4.45%, 01/15/2043 (G)

     44,000         39,416   

5.15%, 04/30/2020

     94,000         105,068   

Time Warner Cable, Inc.

     

8.25%, 04/01/2019

     192,000         224,929   

8.75%, 02/14/2019

     72,000         85,885   

Metals & Mining - 0.2%

     

BHP Billiton Finance USA, Ltd.

     

3.85%, 09/30/2023 (G)

     79,000         79,343   

5.00%, 09/30/2043

     31,000         31,519   

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

     110,000         122,375   

Multi-Utilities - 0.2%

     

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

     189,000         192,127   

Oil, Gas & Consumable Fuels - 1.4%

     

Apache Corp.

     

4.25%, 01/15/2044 (G)

     33,000         29,669   

4.75%, 04/15/2043

     20,000         19,399   

BP Capital Markets PLC
2.75%, 05/10/2023

     78,000         71,221   

Energy Transfer Partners, LP
4.15%, 10/01/2020

     120,000         121,750   

Kinder Morgan Energy Partners, LP
4.15%, 02/01/2024

     115,000         111,259   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    72

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

Oil, Gas & Consumable Fuels (continued)

  

Laredo Petroleum, Inc.
7.38%, 05/01/2022

     $  60,000         $  65,100   

Linn Energy LLC / Linn Energy Finance Corp.
7.00%, 11/01/2019 - 144A (G)

     80,000         80,800   

MEG Energy Corp.
6.50%, 03/15/2021 - 144A

     110,000         115,775   

Murphy Oil Corp.

     

2.50%, 12/01/2017

     81,000         81,493   

3.70%, 12/01/2022

     38,000         35,112   

Nexen Energy ULC
5.88%, 03/10/2035

     10,000         10,680   

Noble Energy, Inc.

     

4.15%, 12/15/2021

     12,000         12,339   

5.25%, 11/15/2043

     50,000         49,959   

6.00%, 03/01/2041

     44,000         47,048   

8.25%, 03/01/2019

     44,000         54,690   

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

     45,000         45,450   

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

     160,000         164,714   

Range Resources Corp.
5.75%, 06/01/2021 (G)

     10,000         10,600   

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

     25,000         500   

Shell International Finance BV

     

2.00%, 11/15/2018 (G)

     81,000         81,051   

4.55%, 08/12/2043

     78,000         76,077   

Statoil ASA
2.90%, 11/08/2020

     90,000         89,411   

Total Capital International SA
3.70%, 01/15/2024

     81,000         80,091   

Western Gas Partners, LP

     

4.00%, 07/01/2022

     34,000         32,450   

5.38%, 06/01/2021

     72,000         77,134   

Williams Cos., Inc.

     

3.70%, 01/15/2023

     83,000         72,443   

7.88%, 09/01/2021

     31,000         35,746   

Paper & Forest Products - 0.2%

     

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

     192,000         201,297   

Pharmaceuticals - 0.2%

     

AbbVie, Inc.
4.40%, 11/06/2042

     55,000         51,297   

Actavis, Inc.
4.63%, 10/01/2042 (G)

     55,000         50,039   

Bristol-Myers Squibb Co.
4.50%, 03/01/2044

     63,000         60,344   

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

     25,000         24,521   

Real Estate Investment Trusts - 0.0% (B)

     

Ventas Realty, LP / Ventas Capital Corp.
2.70%, 04/01/2020

     19,000         18,168   

Real Estate Management & Development - 0.0% (B)

  

   

Realogy Group LLC
7.88%, 02/15/2019 - 144A (G)

     55,000         60,363   

Road & Rail - 0.0% (B)

     

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

     16,000         14,900   
     Principal      Value  

Specialty Retail - 0.0% (B)

     

QVC, Inc.
7.50%, 10/01/2019 - 144A

     $  45,000         $  48,503   

Tobacco - 0.1%

     

Altria Group, Inc.
4.00%, 01/31/2024

     31,000         30,300   

Philip Morris International, Inc.

     

1.88%, 01/15/2019

     67,000         65,476   

4.88%, 11/15/2043

     23,000         22,784   

Wireless Telecommunication Services - 0.3%

     

America Movil SAB de CV
3.13%, 07/16/2022

     200,000         184,630   

MetroPCS Wireless, Inc.
7.88%, 09/01/2018 (G)

     4,000         4,295   

Sprint Communications, Inc.
9.00%, 11/15/2018 - 144A

     95,000         114,475   

Sprint Corp.
7.88%, 09/15/2023 - 144A

     45,000         48,375   

T-Mobile USA, Inc.

     

6.46%, 04/28/2019

     5,000         5,313   

6.63%, 04/28/2021

     15,000         15,787   

6.73%, 04/28/2022

     15,000         15,637   

6.84%, 04/28/2023 (G)

     5,000         5,188   
    

 

 

  

Total Corporate Debt Securities (cost $12,722,346)

  

      11,912,994   
    

 

 

  

SHORT-TERM U.S. GOVERNMENT OBLIGATION - 0.0% (B)

  

U.S. Treasury Bill
0.07%, 06/26/2014 (H) (I)

     55,000         54,982   
    

 

 

  

Total Short-Term U.S. Government Obligation (cost $54,982)

   

      54,982   
    

 

 

  
     Shares      Value  

PREFERRED STOCKS - 0.3%

     

Diversified Financial Services - 0.1%

     

Citigroup Capital XIII, 7.88% (A) (G)

     3,392         92,432   

Short-Term U.S. Government Obligations - 0.2%

  

   

Fannie Mae - Series O, 0.00% (A) (H) (J)

     600         8,520   

Fannie Mae - Series S, 8.25% (A) (J)

     10,800         94,500   

Freddie Mac - Series Z, 8.38% (A) (J)

     14,925         133,877   
    

 

 

  

Total Preferred Stocks (cost $767,642)

        329,329   
    

 

 

  

COMMON STOCKS - 59.5%

     

Aerospace & Defense - 1.9%

     

General Dynamics Corp.

     2,872         274,420   

Honeywell International, Inc.

     10,529         962,035   

United Technologies Corp.

     10,248         1,166,222   

Airlines - 0.2%

     

Delta Air Lines, Inc.

     4,650         127,736   

Southwest Airlines Co.

     4,418         83,235   

Auto Components - 0.2%

     

Johnson Controls, Inc.

     3,812         195,556   

Automobiles - 0.5%

     

General Motors Co. (J)

     15,824         646,727   

Beverages - 1.4%

     

Coca-Cola Co.

     12,990         536,617   

Constellation Brands, Inc. - Class A (J)

     1,289         90,720   

Dr. Pepper Snapple Group, Inc. (G)

     5,949         289,835   

Molson Coors Brewing Co. - Class B

     900         50,535   

PepsiCo, Inc.

     9,066         751,934   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    73

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Biotechnology - 1.9%

     

Alexion Pharmaceuticals, Inc. (J)

     1,936         $  257,604   

Biogen IDEC, Inc. (J)

     2,696         754,206   

Celgene Corp. (J)

     5,695         962,227   

Gilead Sciences, Inc. (J)

     2,180         163,827   

Vertex Pharmaceuticals, Inc. (J)

     2,118         157,368   

Building Products - 0.2%

     

Masco Corp.

     13,517         307,782   

Capital Markets - 1.6%

     

Bank of New York Mellon Corp.

     103         3,599   

Goldman Sachs Group, Inc.

     3,009         533,375   

Invesco, Ltd.

     10,713         389,953   

Morgan Stanley

     15,526         486,895   

State Street Corp.

     6,028         442,395   

TD Ameritrade Holding Corp.

     2,520         77,213   

Chemicals - 0.9%

     

Air Products & Chemicals, Inc.

     1,918         214,394   

Axiall Corp.

     2,600         123,344   

CF Industries Holdings, Inc. - Class B

     10         2,330   

Dow Chemical Co.

     6,961         309,069   

E.I. du Pont de Nemours & Co.

     524         34,044   

Monsanto Co.

     2,980         347,319   

Mosaic Co.

     1,180         55,779   

Commercial Banks - 1.7%

     

Comerica, Inc. - Class A (G)

     2,971         141,241   

Cullen / Frost Bankers, Inc. (G)

     500         37,215   

PNC Financial Services Group, Inc.

     1,168         90,614   

SVB Financial Group (J)

     360         37,750   

U.S. Bancorp - Class A

     2,280         92,112   

Wells Fargo & Co.

     37,868         1,719,207   

Commercial Services & Supplies - 0.1%

     

Tyco International, Ltd.

     1,748         71,738   

Communications Equipment - 1.4%

     

Cisco Systems, Inc.

     41,838         939,263   

QUALCOMM, Inc.

     10,667         792,025   

Computers & Peripherals - 2.2%

     

Apple, Inc.

     3,654         2,050,296   

EMC Corp.

     9,759         245,439   

Hewlett-Packard Co.

     9,503         265,894   

NetApp, Inc.

     2,180         89,685   

SanDisk Corp.

     1,067         75,266   

Construction & Engineering - 0.6%

     

Fluor Corp.

     9,490         761,952   

Consumer Finance - 0.4%

     

Capital One Financial Corp.

     5,639         432,004   

SLM Corp.

     1,150         30,222   

Containers & Packaging - 0.2%

     

Crown Holdings, Inc. (J)

     4,451         198,381   

Diversified Financial Services - 2.8%

     

Bank of America Corp.

     66,039         1,028,227   

Berkshire Hathaway, Inc. - Class B (J)

     5,361         635,600   

Citigroup, Inc.

     21,741         1,132,924   

IntercontinentalExchange Group, Inc.

     2,787         626,852   

Diversified Telecommunication Services - 0.8%

  

AT&T, Inc.

     3,106         109,207   

Verizon Communications, Inc.

     17,971         883,095   

Electric Utilities - 1.1%

     

American Electric Power Co., Inc.

     10,910         509,933   

Edison International

     6,017         278,587   

NextEra Energy, Inc.

     7,003         599,597   
     Shares      Value  

Electrical Equipment - 0.7%

     

Eaton Corp. PLC

     991         $  75,435   

Emerson Electric Co.

     11,102         779,138   

Electronic Equipment & Instruments - 0.2%

  

Corning, Inc.

     6,459         115,099   

TE Connectivity, Ltd.

     2,345         129,233   

Energy Equipment & Services - 1.5%

     

Baker Hughes, Inc.

     1,260         69,628   

Cameron International Corp. (J)

     1,334         79,413   

Ensco PLC - Class A

     7,410         423,704   

Halliburton Co.

     2,688         136,416   

Noble Corp. PLC

     4,513         169,102   

Schlumberger, Ltd.

     10,994         990,669   

Food & Staples Retailing - 1.2%

     

Costco Wholesale Corp.

     3,230         384,402   

CVS Caremark Corp.

     10,807         773,457   

Kroger Co.

     3,720         147,052   

Wal-Mart Stores, Inc.

     2,786         219,230   

Food Products - 1.5%

     

Archer-Daniels-Midland Co.

     10,625         461,125   

General Mills, Inc. (G)

     11,978         597,822   

Kellogg Co.

     3,980         243,058   

Mondelez International, Inc. - Class A

     15,823         558,552   

Gas Utilities - 0.2%

     

EQT Corp.

     1,200         107,736   

National Fuel Gas Co. (G)

     490         34,986   

Questar Corp. (G)

     4,936         113,479   

Health Care Equipment & Supplies - 0.8%

     

Abbott Laboratories

     8,806         337,534   

Baxter International, Inc.

     4,301         299,134   

Intuitive Surgical, Inc. (G) (J)

     182         69,903   

Stryker Corp.

     4,000         300,560   

Health Care Providers & Services - 1.1%

     

Humana, Inc. - Class A (G)

     4,100         423,202   

McKesson Corp.

     1,900         306,660   

UnitedHealth Group, Inc.

     8,633         650,065   

Health Care Technology - 0.0% (B)

     

Cerner Corp. (J)

     200         11,148   

Hotels, Restaurants & Leisure - 0.8%

     

Marriott International, Inc. - Class A (G)

     381         18,806   

McDonald’s Corp.

     515         49,970   

Royal Caribbean Cruises, Ltd. - Class A

     5,390         255,594   

Starbucks Corp.

     3,173         248,731   

Starwood Hotels & Resorts Worldwide, Inc.

     2,550         202,598   

Yum! Brands, Inc.

     2,026         153,186   

Household Durables - 0.2%

     

Lennar Corp. - Class A (G)

     719         28,444   

PulteGroup, Inc. (G)

     8,212         167,278   

Toll Brothers, Inc. (G) (J)

     1,056         39,072   

Household Products - 1.0%

     

Kimberly-Clark Corp.

     1,131         118,144   

Procter & Gamble Co.

     13,469         1,096,512   

Industrial Conglomerates - 0.5%

     

General Electric Co.

     23,469         657,836   

Insurance - 1.8%

     

ACE, Ltd.

     8,326         861,991   

Axis Capital Holdings, Ltd. (G)

     380         18,077   

Everest RE Group, Ltd. (G)

     238         37,097   

Hartford Financial Services Group, Inc.

     3,383         122,566   

Marsh & McLennan Cos., Inc.

     4,850         234,546   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    74

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Insurance (continued)

     

MetLife, Inc.

     12,631         $  681,063   

Prudential Financial, Inc.

     1,772         163,414   

RenaissanceRe Holdings, Ltd. (G)

     820         79,819   

XL Group PLC - Class A

     2,260         71,958   

Internet & Catalog Retail - 0.8%

     

Amazon.com, Inc. (J)

     1,732         690,704   

priceline.com, Inc. (J)

     257         298,737   

Internet Software & Services - 2.1%

     

eBay, Inc. (J)

     7,395         405,911   

Facebook, Inc. - Class A (J)

     5,210         284,779   

Google, Inc. - Class A (J)

     1,629         1,825,636   

LinkedIn Corp. - Class A (J)

     161         34,910   

IT Services - 1.6%

     

Alliance Data Systems Corp. (G) (J)

     475         124,892   

Cognizant Technology Solutions Corp. - Class A (J)

     4,899         494,701   

Fidelity National Information Services, Inc.

     1,277         68,549   

International Business Machines Corp.

     2,271         425,971   

Mastercard, Inc. - Class A

     330         275,702   

Visa, Inc. - Class A (G)

     2,897         645,104   

Life Sciences Tools & Services - 0.2%

     

Mettler-Toledo International, Inc. (J)

     1,076         261,027   

Thermo Fisher Scientific, Inc. (G)

     434         48,326   

Machinery - 0.8%

     

Caterpillar, Inc. (G)

     1,186         107,700   

Deere & Co. (G)

     1,696         154,896   

PACCAR, Inc.

     9,469         560,281   

SPX Corp.

     1,625         161,866   

Media - 2.6%

     

CBS Corp. - Class B

     6,260         399,012   

Comcast Corp. - Class A

     20,241         1,051,824   

DISH Network Corp. - Class A (J)

     2,775         160,728   

Omnicom Group, Inc.

     512         38,077   

Time Warner Cable, Inc.

     2,430         329,265   

Time Warner, Inc.

     14,005         976,429   

Walt Disney Co. - Class A

     3,432         262,205   

Metals & Mining - 0.6%

     

Alcoa, Inc. (G)

     27,615         293,548   

Freeport-McMoRan Copper & Gold, Inc.

     7,480         282,295   

U.S. Steel Corp. (G)

     4,930         145,435   

Multi-Utilities - 0.7%

     

CMS Energy Corp.

     8,237         220,504   

DTE Energy Co.

     765         50,788   

NiSource, Inc. - Class B

     8,878         291,909   

Sempra Energy

     3,368         302,312   

Multiline Retail - 0.4%

     

Macy’s, Inc.

     2,804         149,734   

Nordstrom, Inc. (G)

     1,959         121,066   

Target Corp.

     3,372         213,346   

Office Electronics - 0.0% (B)

     

Xerox Corp. (G)

     2,860         34,806   

Oil, Gas & Consumable Fuels - 4.3%

     

Anadarko Petroleum Corp. - Class A

     4,856         385,178   

Cheniere Energy, Inc. (J)

     1,990         85,809   

Chevron Corp.

     10,819         1,351,401   

EOG Resources, Inc.

     831         139,475   

Exxon Mobil Corp.

     14,843         1,502,112   

Marathon Oil Corp.

     6,040         213,212   

Marathon Petroleum Corp.

     6,334         581,018   
     Shares      Value  

Oil, Gas & Consumable Fuels (continued)

  

   

Occidental Petroleum Corp.

     5,661         $  538,361   

Phillips 66

     2,833         218,509   

Range Resources Corp.

     723         60,956   

Valero Energy Corp.

     2,055         103,572   

Williams Cos., Inc.

     1,938         74,749   

Paper & Forest Products - 0.1%

     

International Paper Co.

     1,928         94,530   

Pharmaceuticals - 3.5%

     

Actavis PLC (J)

     1,150         193,200   

Allergan, Inc.

     3,520         391,001   

Bristol-Myers Squibb Co.

     20,386         1,083,516   

Johnson & Johnson

     19,991         1,830,976   

Merck & Co., Inc.

     8,870         443,943   

Perrigo Co. PLC

     730         112,026   

Pfizer, Inc.

     6,211         190,243   

Valeant Pharmaceuticals International, Inc. (J)

     587         68,914   

Real Estate Investment Trusts - 1.1%

     

American Tower Corp. - Class A

     1,024         81,736   

AvalonBay Communities, Inc.

     1,430         169,069   

Boston Properties, Inc.

     600         60,222   

Brandywine Realty Trust (G)

     4,848         68,308   

Camden Property Trust

     1,028         58,473   

Excel Trust, Inc. (G)

     1,540         17,541   

HCP, Inc.

     3,522         127,919   

Highwoods Properties, Inc. (G)

     2,391         86,482   

Host Hotels & Resorts, Inc. (G)

     1,344         26,127   

Kilroy Realty Corp. (G)

     1,970         98,855   

Kimco Realty Corp.

     4,420         87,295   

Post Properties, Inc.

     975         44,099   

ProLogis, Inc. - Class A

     353         13,043   

Public Storage

     280         42,146   

Simon Property Group, Inc.

     1,887         287,126   

Ventas, Inc.

     2,627         150,474   

Road & Rail - 1.6%

     

CSX Corp.

     30,589         880,045   

Norfolk Southern Corp.

     1,442         133,861   

Union Pacific Corp.

     5,703         958,104   

Semiconductors & Semiconductor Equipment - 1.2%

  

Applied Materials, Inc. - Class A

     16,158         285,835   

Avago Technologies, Ltd. - Class A

     5,770         305,175   

KLA-Tencor Corp. (G)

     3,177         204,789   

LAM Research Corp. (G) (J)

     3,227         175,710   

Xilinx, Inc.

     10,381         476,696   

Software - 2.7%

     

Adobe Systems, Inc. (J)

     7,483         448,082   

CA, Inc.

     1,460         49,129   

Citrix Systems, Inc. (J)

     3,248         205,436   

Microsoft Corp.

     39,431         1,475,902   

Oracle Corp.

     26,980         1,032,255   

VMware, Inc. - Class A (G) (J)

     871         78,138   

Specialty Retail - 2.0%

     

AutoZone, Inc. (G) (J)

     878         419,631   

Gap, Inc. - Class A

     600         23,448   

Home Depot, Inc.

     11,296         930,113   

Lowe’s Cos., Inc.

     11,744         581,915   

TJX Cos., Inc.

     7,720         491,996   

Textiles, Apparel & Luxury Goods - 0.6%

     

Lululemon Athletica, Inc. (G) (J)

     897         52,950   

V.F. Corp.

     10,088         628,886   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    75

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Tobacco - 0.8%

     

Philip Morris International, Inc.

     11,997         $  1,045,299   

Trading Companies & Distributors - 0.2%

  

   

WW Grainger, Inc. (G)

     1,021         260,784   
    

 

 

  

Total Common Stocks (cost $57,227,275)

  

      73,405,035   
    

 

 

  
     Contracts      Value  

PURCHASED OPTION - 0.0% (B)

     

Put Option - 0.0% (B)

     

Eurodollar, Mid-Curve 2-Year Future Exercise Price $ 98.75
Expires 03/14/2014

     23         15,525   
    

 

 

  

Total Purchased Option (cost $6,657)

        15,525   
    

 

 

  
     Shares      Value  

SHORT-TERM INVESTMENT COMPANY - 3.6%

  

   

BlackRock Provident TempFund 24 (K)

     4,395,228         4,395,228   
    

 

 

  

Total Short-Term Investment Company (cost $4,395,228)

   

      4,395,228   
    

 

 

  

SECURITIES LENDING COLLATERAL - 5.1%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (H)

     6,288,574         6,288,574   
    

 

 

  

Total Securities Lending Collateral (cost $6,288,574)

   

      6,288,574   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 0.5%

     

State Street Bank & Trust Co.
0.01% (H), dated 12/31/2013, to be repurchased at $628,772 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $644,710.

     $  628,771         $  628,771   
    

 

 

  

Total Repurchase Agreement (cost $628,771)

  

      628,771   
    

 

 

  
    

Total Investment Securities (cost $121,928,825) (L)

  

      136,148,739   

Other Assets and Liabilities - Net  - (10.4)%

  

      (12,878,424 ) 
    

 

 

  

Net Assets  - 100.0%

        $  123,270,315   
    

 

 

  
     Principal      Value  

TBA SHORT COMMITMENTS - (1.7)%

     

U.S. GOVERNMENT AGENCY OBLIGATIONS - (1.7)%

  

Fannie Mae, TBA

     

3.50%

     $  (360,000 )       $  (356,541 ) 

4.00%

     (300,000 )       (317,883 ) 

5.00%

     (100,000 )       (108,289 ) 

Freddie Mac, TBA
3.00%

     (400,000 )       (378,875 ) 

Ginnie Mae, TBA

     

4.00%

     (600,000 )       (623,773 ) 

4.50%

     (300,000 )       (320,742 ) 
    

 

 

  

Total U.S. Government Agency Obligations (proceeds $2,113,355)

   

      (2,106,103 ) 
    

 

 

  

Total TBA Short Commitments (proceeds $2,113,355)

  

      (2,106,103 ) 
    

 

 

  
     Contracts      Value  

WRITTEN OPTION - (0.0)% (B)

     

Put Option - (0.0)% (B)

     

Eurodollar, Mid-Curve 2-Year Future Exercise Price $ 98.25
Expires 03/14/2014

     23         (3,738 ) 
    

 

 

  

Total Written Option (premiums $(1,680))

  

      (3,738 ) 
    

 

 

  
 

 

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

10-Year U.S. Treasury Note

      Short         (25 )       03/20/2014       $ 50,434   

2-Year U.S. Treasury Note

      Long         15         03/31/2014         (4,563 ) 

5-Year U.S. Treasury Note

      Short         (7 )       03/31/2014         1,106   

90-Day Eurodollar

      Short         (3 )       12/14/2015         1,312   

Long U.S. Treasury Bond

      Long         17         03/20/2014         (31,375 ) 

S&P 500 E-Mini Index

      Long         6         03/21/2014         12,068   

Ultra Long U.S. Treasury Bond

      Long         7         03/20/2014           (16,031 ) 
           

 

 

  
            $ 12,951   
           

 

 

  

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    76

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

 

FORWARD FOREIGN CURRENCY CONTRACTS:          
Currency    Counterparty    Contracts
Bought
(Sold)		      Settlement
Date		      Amount in U.S.
Dollars Bought
(Sold)		     

Net

Unrealized
Appreciation
(Depreciation)

  

EUR

    BCLY      (331,000 )       01/22/2014       $   (446,974 )     $   (8,378 ) 

EUR

    BNP      179,000         01/22/2014         246,166         82   
              

 

 

  
            $ (8,296 ) 
              

 

 

  

VALUATION SUMMARY: (N)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

U.S. Government Obligations

   $ —      $ 5,481,918      $ —      $ 5,481,918   

U.S. Government Agency Obligations

     —        17,434,871        —        17,434,871   

Foreign Government Obligations

     —        501,934        —        501,934   

Mortgage-Backed Securities

     —        7,214,061        —        7,214,061   

Asset-Backed Securities

     —        8,372,377        —        8,372,377   

Municipal Government Obligations

     —        105,553        —        105,553   

Preferred Corporate Debt Securities

     —        7,587        —        7,587   

Corporate Debt Securities

                                

Airlines

     —        101,303        —        101,303   

Automobiles

     —        51,150        0        51,150   

Biotechnology

     —        82,840        —        82,840   

Capital Markets

     —        720,015        —        720,015   

Chemicals

     —        68,648        —        68,648   

Commercial Banks

     —        590,686        —        590,686   

Commercial Services & Supplies

     —        111,125        —        111,125   

Communications Equipment

     —        48,677        —        48,677   

Containers & Packaging

     —        13,371        —        13,371   

Diversified Financial Services

     —        1,266,228        0        1,266,228   

Diversified Telecommunication Services

     —        1,026,103        —        1,026,103   

Electric Utilities

     —        621,818        —        621,818   

Energy Equipment & Services

     —        721,409        —        721,409   

Food & Staples Retailing

     —        47,119        —        47,119   

Food Products

     —        77,355        —        77,355   

Health Care Equipment & Supplies

     —        189,262        —        189,262   

Health Care Providers & Services

     —        389,541        —        389,541   

Hotels, Restaurants & Leisure

     —        126,365        —        126,365   

Insurance

     —        968,557        —        968,557   

IT Services

     —        102,302        —        102,302   

Life Sciences Tools & Services

     —        159,850        —        159,850   

Media

     —        1,290,253        —        1,290,253   

Metals & Mining

     —        233,237        —        233,237   

Multi-Utilities

     —        192,127        —        192,127   

Oil, Gas & Consumable Fuels

     —        1,671,961        —        1,671,961   

Paper & Forest Products

     —        201,297        —        201,297   

Pharmaceuticals

     —        186,201        —        186,201   

Real Estate Investment Trusts

     —        18,168        —        18,168   

Real Estate Management & Development

     —        60,363        —        60,363   

Road & Rail

     —        14,900        —        14,900   

Specialty Retail

     —        48,503        —        48,503   

Tobacco

     —        118,560        —        118,560   

Wireless Telecommunication Services

     —        393,700        —        393,700   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    77

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY (continued): (N)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

Short-Term U.S. Government Obligation

   $ —      $ 54,982      $ —      $ 54,982   

Preferred Stocks

     329,329        —        —        329,329   

Common Stocks

     73,405,035        —        —        73,405,035   

Purchased Option

     15,525        —        —        15,525   

Short-Term Investment Company

     4,395,228        —        —        4,395,228   

Securities Lending Collateral

     6,288,574        —        —        6,288,574   

Repurchase Agreement

     —        628,771        —        628,771   

Total Investment Securities

   $ 84,433,691      $ 51,715,048      $ 0      $ 136,148,739   
                                 

Derivative Financial Instruments

                                

Futures Contracts (O)

   $ 64,920      $ —      $ —      $ 64,920   

Forward Foreign Currency Contracts (O)

     —        82        —        82   

Total Derivative Financial Instruments

   $ 64,920      $ 82      $ —      $ 65,002   
       
     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

LIABILITIES

                                

TBA Short Commitments

                                

U.S. Government Agency Obligations

   $ —      $ (2,106,103 )    $ —      $ (2,106,103 ) 

Total TBA Short Commitments

   $ —      $ (2,106,103 )    $ —      $ (2,106,103 ) 
                                 

Derivative Financial Instruments

                                

Written Option

   $ (3,738 )    $ —      $ —      $ (3,738 ) 

Futures Contracts (O)

     (51,969 )      —        —        (51,969 ) 

Forward Foreign Currency Contracts (O)

     —        (8,378 )      —        (8,378 ) 

Total Derivative Financial Instruments

   $ (55,707 )    $ (8,378 )    $ —      $ (64,085 ) 

Level 3 Rollforward - Investment Securities

 

Securities   Beginning
Balance at
December 31, 2012		     Purchases     Sales (P)     Accrued
Discounts
(Premiums)		     Total
Realized
Gain (Loss)		     Net Change in
Unrealized
Appreciation
(Depreciation) (Q)		     Transfers
into
Level 3		     Transfers
out of
Level 3		     Ending Balance at
December 31, 2013 (R)		     Net Change in Unrealized
Appreciation (Depreciation)
on Investments Held at
December 31, 2013 (Q)		  
Corporate Debt Securities   $ 0      $ —      $ 0      $ —      $ (379,424 )    $ 379,424      $ —      $ —      $ 0      $ —   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Floating or variable rate note. Rate is listed as of December 31, 2013.
(B)  Percentage rounds to less than 0.1%.
(C)  The security has a perpetual maturity. The date shown is the next call date.
(D) In default.
(E) Fair valued as determined in good faith in accordance with procedures established by the Board of Trustees. Total aggregate fair value of securities is $32, or less than 0.01% of the portfolio’s net assets.
(F) Illiquid. Total aggregate fair value of illiquid securities is $33,882, or 0.03% of the portfolio’s net assets.
(G)  All or a portion of this security is on loan. The value of all securities on loan is $6,150,753. 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.
(H) Rate shown reflects the yield at December 31, 2013.

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    78

Transamerica Partners Balanced Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

NOTES TO SCHEDULE OF INVESTMENTS (continued):

 

(I) 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 $54,976.
(J) Non-income producing security.
(K) The investment issuer is affiliated with the sub-adviser of the portfolio.
(L) Aggregate cost for federal income tax purposes is $123,059,319. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $15,816,419 and $2,726,999, respectively. Net unrealized appreciation for tax purposes is $13,089,420.
(M) Cash in the amount of $31,000 has been segregated by the custodian with the broker as collateral to cover margin requirements for open futures contracts.
(N) 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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(O) Derivative financial instruments valued at unrealized appreciation (depreciation) on the instrument.
(P) Sales include all sales of securities, maturities, paydowns and securities tendered in a corporate action.
(Q) Any difference between Net Change in Unrealized Appreciation (Depreciation) and Net Change in Unrealized Appreciation (Depreciation) on Investments Held at December 31, 2013 may be due to an investment no longer held or categorized as Level 3 at year end.
(R) Level 3 securities were not considered significant to the portfolio.

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 December 31, 2013, these securities aggregated $9,489,099, or 7.70% of the portfolio’s net assets.
BCLY    Barclays Bank PLC
BNP    BNP Paribas
IO    Interest only portion of a STRIP (Separate Trading of Registered Interest and Principal Security) Security
MTN    Medium Term Note
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.
Re-REMIC    Re-Securitized Real Estate Mortgage Investment Conduits (consist of a fixed pool of mortgages broken apart and marketed to investors as individual securities)
TBA    To Be Announced

CURRENCY ABBREVIATION:

 

EUR    Euro

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    79

Transamerica Partners Large Value Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

COMMON STOCKS - 98.7%

     

Aerospace & Defense - 8.4%

     

Alliant Techsystems, Inc.

     91,100         $  11,085,048   

Exelis, Inc.

     572,300         10,908,038   

Huntington Ingalls Industries, Inc.

     129,270         11,635,593   

L-3 Communications Holdings, Inc. (A)

     109,900         11,743,914   

Lockheed Martin Corp.

     33,900         5,039,574   

Northrop Grumman Corp.

     115,000         13,180,150   

Raytheon Co.

     153,300         13,904,310   

Airlines - 1.0%

     

Delta Air Lines, Inc.

     158,500         4,353,995   

Southwest Airlines Co.

     258,600         4,872,024   

Auto Components - 3.2%

     

Goodyear Tire & Rubber Co.

     306,800         7,317,180   

Lear Corp. (A)

     142,400         11,530,128   

Magna International, Inc. - Class A

     129,000         10,585,740   

Automobiles - 0.7%

     

Ford Motor Co.

     431,300         6,654,959   

Biotechnology - 5.0%

     

Amgen, Inc.

     92,300         10,536,968   

Biogen IDEC, Inc. (B)

     35,100         9,819,225   

Celgene Corp. (B)

     62,900         10,627,584   

Cubist Pharmaceuticals, Inc. (B)

     37,000         2,548,190   

United Therapeutics Corp. (A) (B)

     113,600         12,845,888   

Capital Markets - 1.1%

     

Waddell & Reed Financial, Inc. - Class A

     156,000         10,158,720   

Chemicals - 1.3%

     

CF Industries Holdings, Inc. - Class B

     17,200         4,008,288   

LyondellBasell Industries NV - Class A

     102,600         8,236,728   

Commercial Banks - 7.3%

     

Comerica, Inc. - Class A (A)

     96,300         4,578,102   

Fifth Third Bancorp

     597,400         12,563,322   

First Niagara Financial Group, Inc.

     111,500         1,184,130   

Huntington Bancshares, Inc. - Class A

     1,251,800         12,079,870   

KeyCorp

     923,700         12,396,054   

PNC Financial Services Group, Inc.

     103,100         7,998,498   

Wells Fargo & Co.

     377,000         17,115,800   

Computers & Peripherals - 3.1%

     

Apple, Inc.

     10,800         6,059,988   

SanDisk Corp.

     150,500         10,616,270   

Western Digital Corp.

     146,700         12,308,130   

Construction & Engineering - 0.3%

     

AECOM Technology Corp. (B)

     81,500         2,398,545   

Consumer Finance - 4.2%

     

Capital One Financial Corp.

     177,900         13,628,919   

Discover Financial Services

     235,700         13,187,415   

SLM Corp.

     455,500         11,970,540   

Containers & Packaging - 1.3%

     

Packaging Corp. of America

     112,800         7,137,984   

Rock Tenn Co. - Class A

     47,200         4,956,472   

Diversified Financial Services - 1.9%

     

Bank of America Corp.

     216,000         3,363,120   

CBOE Holdings, Inc.

     142,500         7,404,300   

JPMorgan Chase & Co.

     72,900         4,263,192   

McGraw-Hill Financial, Inc.

     31,300         2,447,660   

Diversified Telecommunication Services - 1.9%

  

   

AT&T, Inc.

     143,400         5,041,944   

Frontier Communications Corp. (A)

     685,200         3,186,180   

Verizon Communications, Inc.

     197,600         9,710,064   
     Shares      Value  

Electric Utilities - 3.3%

     

American Electric Power Co., Inc.

     211,000         $  9,862,140   

Edison International

     250,100         11,579,630   

Entergy Corp. - Class B

     103,000         6,516,810   

Exelon Corp.

     79,700         2,182,983   

Electronic Equipment & Instruments - 2.6%

  

Arrow Electronics, Inc. (B)

     85,900         4,660,075   

Avnet, Inc.

     141,400         6,237,154   

Flextronics International, Ltd. (B)

     342,900         2,664,333   

Ingram Micro, Inc. - Class A (B)

     450,000         10,557,000   

Energy Equipment & Services - 2.3%

     

Baker Hughes, Inc.

     99,400         5,492,844   

Diamond Offshore Drilling, Inc. (A)

     104,900         5,970,908   

Halliburton Co.

     188,500         9,566,375   

Food & Staples Retailing - 1.1%

     

Kroger Co.

     255,300         10,092,009   

Food Products - 1.7%

     

Archer-Daniels-Midland Co.

     63,300         2,747,220   

Green Mountain Coffee Roasters, Inc. - Series C (A) (B)

     28,300         2,138,914   

Hershey Co.

     83,300         8,099,259   

Tyson Foods, Inc. - Class A (A)

     77,100         2,579,766   

Health Care Providers & Services - 8.5%

  

AmerisourceBergen Corp. - Class A

     146,100         10,272,291   

Cardinal Health, Inc.

     190,400         12,720,624   

CIGNA Corp.

     148,100         12,955,788   

Humana, Inc. - Class A

     77,400         7,989,228   

McKesson Corp.

     63,800         10,297,320   

Omnicare, Inc.

     183,600         11,082,096   

WellPoint, Inc.

     141,800         13,100,902   

Household Durables - 0.4%

     

Whirlpool Corp.

     23,400         3,670,524   

Independent Power Producers & Energy Traders - 1.3%

  

AES Corp.

     796,300         11,554,313   

Insurance - 13.4%

     

Allied World Assurance Co. Holdings AG

     82,800         9,340,668   

Allstate Corp.

     233,300         12,724,182   

American Financial Group, Inc.

     114,700         6,620,484   

American International Group, Inc.

     336,300         17,168,115   

Assurant, Inc.

     175,000         11,614,750   

Axis Capital Holdings, Ltd.

     225,800         10,741,306   

Chubb Corp. - Class A

     132,600         12,813,138   

Everest RE Group, Ltd.

     72,200         11,253,814   

Lincoln National Corp.

     86,400         4,459,968   

Old Republic International Corp.

     60,800         1,050,016   

PartnerRe, Ltd.

     19,900         2,098,057   

Reinsurance Group of America, Inc. - Class A

     27,200         2,105,552   

RenaissanceRe Holdings, Ltd.

     39,900         3,883,866   

Travelers Cos., Inc.

     150,000         13,581,000   

Unum Group

     120,800         4,237,664   

IT Services - 1.2%

     

Amdocs, Ltd.

     267,300         11,023,452   

Machinery - 0.7%

     

Oshkosh Corp.

     128,400         6,468,792   

Metals & Mining - 0.7%

     

Alcoa, Inc. (A)

     224,900         2,390,687   

Cliffs Natural Resources, Inc. (A)

     169,500         4,442,595   

Multi-Utilities - 0.6%

     

Public Service Enterprise Group, Inc.

     179,900         5,763,996   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    80

Transamerica Partners Large Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Oil, Gas & Consumable Fuels - 12.7%

     

Chevron Corp.

     183,300         $  22,896,003   

ConocoPhillips

     220,600         15,585,390   

Exxon Mobil Corp.

     342,000         34,610,400   

Marathon Oil Corp.

     346,100         12,217,330   

Murphy Oil Corp. (A)

     181,100         11,749,768   

Occidental Petroleum Corp.

     78,400         7,455,840   

SM Energy Co.

     113,300         9,416,363   

Valero Energy Corp.

     71,400         3,598,560   

Personal Products - 1.7%

     

Herbalife, Ltd. (A)

     59,700         4,698,390   

Nu Skin Enterprises, Inc. - Class A

     79,300         10,960,846   

Pharmaceuticals - 0.4%

     

Questcor Pharmaceuticals, Inc. (A)

     64,500         3,512,025   

Real Estate Investment Trusts - 0.3%

     

RLJ Lodging Trust

     104,900         2,551,168   

Semiconductors & Semiconductor Equipment - 1.2%

  

Marvell Technology Group, Ltd.

     785,400         11,294,052   

Software - 0.7%

     

CA, Inc.

     204,500         6,881,425   

Specialty Retail - 2.1%

     

Best Buy Co., Inc.

     272,800         10,879,264   

GameStop Corp. - Class A (A)

     170,600         8,403,756   

Tobacco - 1.1%

     

Lorillard, Inc.

     198,200         10,044,776   
    

 

 

  

Total Common Stocks (cost $727,830,605)

  

      912,316,707   
    

 

 

  
     Shares      Value  

SECURITIES LENDING COLLATERAL - 8.2%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

     76,167,901         $  76,167,901   
    

 

 

  

Total Securities Lending Collateral (cost $76,167,901)

  

      76,167,901   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 1.2%

  

   

State Street Bank & Trust Co. 0.01% (C), dated 12/31/2013, to be repurchased at $10,808,887 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $11,026,315.

     $  10,808,881         10,808,881   
    

 

 

  

Total Repurchase Agreement (cost $10,808,881)

  

      10,808,881   
    

 

 

  
    

Total Investment Securities (cost $814,807,387) (D)

  

      999,293,489   

Other Assets and Liabilities - Net - (8.1)%

  

      (75,016,965 ) 
    

 

 

  

Net Assets - 100.0%

        $  924,276,524   
    

 

 

  
 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

Common Stocks

   $ 912,316,707      $ —      $ —      $ 912,316,707   

Securities Lending Collateral

     76,167,901        —        —        76,167,901   

Repurchase Agreement

     —        10,808,881        —        10,808,881   

Total Investment Securities

   $ 988,484,608      $ 10,808,881      $ —      $ 999,293,489   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  All or a portion of this security is on loan. The value of all securities on loan is $74,521,042. 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 December 31, 2013.
(D) Aggregate cost for federal income tax purposes is $819,366,987. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $185,978,783 and $6,052,281, respectively. Net unrealized appreciation for tax purposes is $179,926,502.
(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 December 31, 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 Portfolios   Annual Report 2013

Page    81

Transamerica Partners Large Core Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

COMMON STOCKS - 98.6%

     

Aerospace & Defense - 5.4%

     

L-3 Communications Holdings, Inc.

     35,900         $  3,836,274   

Lockheed Martin Corp.

     30,400         4,519,264   

Northrop Grumman Corp.

     35,300         4,045,733   

Raytheon Co.

     46,700         4,235,690   

Air Freight & Logistics - 0.9%

     

United Parcel Service, Inc. - Class B

     25,400         2,669,032   

Airlines - 2.3%

     

Delta Air Lines, Inc.

     117,600         3,230,472   

Southwest Airlines Co.

     199,500         3,758,580   

Auto Components - 3.6%

     

Delphi Automotive PLC - Class A

     64,000         3,848,320   

Goodyear Tire & Rubber Co.

     152,500         3,637,125   

Magna International, Inc. - Class A

     43,300         3,553,198   

Automobiles - 1.3%

     

Ford Motor Co.

     263,700         4,068,891   

Beverages - 2.5%

     

Coca-Cola Enterprises, Inc.

     86,500         3,817,245   

Monster Beverage Corp. (A)

     58,600         3,971,322   

Biotechnology - 5.6%

     

Amgen, Inc.

     42,800         4,886,048   

Biogen IDEC, Inc. (A)

     16,000         4,476,000   

Celgene Corp. (A)

     29,100         4,916,736   

Gilead Sciences, Inc. (A)

     42,700         3,208,905   

Chemicals - 2.2%

     

CF Industries Holdings, Inc. - Class B

     11,200         2,610,048   

LyondellBasell Industries NV - Class A

     52,300         4,198,644   

Commercial Banks - 4.9%

     

Comerica, Inc. - Class A

     81,400         3,869,756   

Fifth Third Bancorp

     184,100         3,871,623   

Huntington Bancshares, Inc. - Class A

     382,800         3,694,020   

KeyCorp

     278,400         3,736,128   

Communications Equipment - 2.0%

     

Harris Corp.

     24,700         1,724,307   

QUALCOMM, Inc.

     60,500         4,492,125   

Computers & Peripherals - 7.4%

     

Apple, Inc.

     20,800         11,671,088   

SanDisk Corp.

     53,900         3,802,106   

Seagate Technology PLC

     64,500         3,622,320   

Western Digital Corp.

     45,800         3,842,620   

Construction & Engineering - 1.5%

     

Chicago Bridge & Iron Co. NV - Class Y

     8,900         739,946   

Fluor Corp.

     47,900         3,845,891   

Consumer Finance - 2.9%

     

Capital One Financial Corp.

     19,200         1,470,912   

Discover Financial Services

     71,200         3,983,640   

SLM Corp.

     135,500         3,560,940   

Containers & Packaging - 0.9%

     

Rock Tenn Co. - Class A

     26,100         2,740,761   

Diversified Financial Services - 0.7%

     

McGraw-Hill Financial, Inc.

     26,800         2,095,760   

Diversified Telecommunication Services - 2.0%

  

   

Frontier Communications Corp. (B)

     222,500         1,034,625   

Verizon Communications, Inc.

     103,000         5,061,420   

Electric Utilities - 1.6%

     

American Electric Power Co., Inc.

     13,200         616,968   

Edison International

     80,500         3,727,150   

Entergy Corp. - Class B

     8,900         563,103   
     Shares      Value  

Electronic Equipment & Instruments - 1.7%

  

Jabil Circuit, Inc.

     81,600         $  1,423,104   

TE Connectivity, Ltd.

     70,900         3,907,299   

Energy Equipment & Services - 3.6%

     

Baker Hughes, Inc.

     56,700         3,133,242   

Core Laboratories NV

     6,400         1,222,080   

Diamond Offshore Drilling, Inc. (B)

     50,500         2,874,460   

Halliburton Co.

     79,900         4,054,925   

Food & Staples Retailing - 1.1%

     

Kroger Co.

     90,500         3,577,465   

Food Products - 3.6%

     

Archer-Daniels-Midland Co.

     93,700         4,066,580   

Green Mountain Coffee Roasters, Inc. - Series C (A) (B)

     6,800         513,944   

Hershey Co.

     37,100         3,607,233   

Mead Johnson Nutrition Co. - Class A

     22,300         1,867,848   

Tyson Foods, Inc. - Class A (B)

     32,200         1,077,412   

Health Care Providers & Services - 7.7%

  

   

AmerisourceBergen Corp. - Class A

     54,700         3,845,957   

Cardinal Health, Inc.

     60,200         4,021,962   

CIGNA Corp.

     46,200         4,041,576   

Humana, Inc. - Class A

     36,800         3,798,496   

McKesson Corp.

     25,100         4,051,140   

WellPoint, Inc.

     43,000         3,972,770   

Household Durables - 0.3%

     

Whirlpool Corp.

     6,900         1,082,334   

Independent Power Producers & Energy Traders - 1.2%

  

AES Corp.

     247,000         3,583,970   

Insurance - 7.4%

     

Allstate Corp.

     72,700         3,965,058   

American International Group, Inc.

     92,800         4,737,440   

Assurant, Inc.

     53,500         3,550,795   

Chubb Corp. - Class A

     31,400         3,034,182   

CNA Financial Corp. - Class A

     26,900         1,153,741   

Travelers Cos., Inc.

     44,800         4,056,192   

Unum Group

     71,400         2,504,712   

Internet Software & Services - 0.4%

     

VeriSign, Inc. (A) (B)

     18,400         1,099,952   

IT Services - 2.7%

     

Amdocs, Ltd.

     31,600         1,303,184   

Computer Sciences Corp.

     31,900         1,782,572   

Mastercard, Inc. - Class A

     6,400         5,346,944   

Leisure Equipment & Products - 1.2%

     

Polaris Industries, Inc. (B)

     25,800         3,757,512   

Metals & Mining - 1.0%

     

Alcoa, Inc. (B)

     89,300         949,259   

Cliffs Natural Resources, Inc. (B)

     81,100         2,125,631   

Multiline Retail - 1.1%

     

Macy’s, Inc.

     62,500         3,337,500   

Oil, Gas & Consumable Fuels - 6.2%

     

Chesapeake Energy Corp. (B)

     61,100         1,658,254   

Chevron Corp.

     38,100         4,759,071   

ConocoPhillips

     45,400         3,207,510   

Exxon Mobil Corp.

     6,600         667,920   

Marathon Oil Corp.

     102,300         3,611,190   

Murphy Oil Corp. (B)

     56,000         3,633,280   

Occidental Petroleum Corp.

     16,300         1,550,130   

Road & Rail - 0.8%

     

Union Pacific Corp.

     15,300         2,570,400   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    82

Transamerica Partners Large Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

 

     Shares      Value  

Semiconductors & Semiconductor Equipment - 1.4%

  

LAM Research Corp. (A)

     64,900         $  3,533,805   

LSI Corp.

     76,200         839,724   

Software - 2.2%

  

CA, Inc.

     113,600         3,822,640   

Microsoft Corp.

     80,900         3,028,087   

Specialty Retail - 4.9%

     

Bed Bath & Beyond, Inc. (A)

     46,900         3,766,070   

Best Buy Co., Inc.

     85,300         3,401,764   

GameStop Corp. - Class A (B)

     75,100         3,699,426   

Gap, Inc. - Class A

     72,700         2,841,116   

TJX Cos., Inc.

     23,500         1,497,655   

Tobacco - 2.4%

     

Altria Group, Inc.

     74,500         2,860,055   

Lorillard, Inc.

     73,300         3,714,844   

Philip Morris International, Inc.

     11,400         993,282   
    

 

 

  

Total Common Stocks (cost $246,114,148)

  

      305,339,430   
    

 

 

  
     Shares      Value  

SECURITIES LENDING COLLATERAL - 6.7%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

     20,759,614         $  20,759,614   
    

 

 

  

Total Securities Lending Collateral (cost $20,759,614)

   

      20,759,614   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 1.3%

  

   

State Street Bank & Trust Co.
0.01% (C), dated 12/31/2013, to be repurchased at $3,929,332 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $4,009,569.

     $  3,929,330         3,929,330   
    

 

 

  

Total Repurchase Agreement (cost $3,929,330)

  

      3,929,330   
    

 

 

  
    

Total Investment Securities (cost $270,803,092) (D)

  

      330,028,374   

Other Assets and Liabilities - Net  - (6.6)%

  

      (20,293,295 ) 
    

 

 

  

Net Assets - 100.0%

        $  309,735,079   
    

 

 

  
 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

Common Stocks

   $ 305,339,430      $ —      $ —      $ 305,339,430   

Securities Lending Collateral

     20,759,614        —        —        20,759,614   

Repurchase Agreement

     —        3,929,330        —        3,929,330   

Total Investment Securities

   $ 326,099,044      $ 3,929,330      $ —      $ 330,028,374   

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 $20,310,565. 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 December 31, 2013.
(D)  Aggregate cost for federal income tax purposes is $271,143,282. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $60,762,110 and $1,877,018, respectively. Net unrealized appreciation for tax purposes is $58,885,092.
(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 December 31, 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 Portfolios   Annual Report 2013

Page    83

Transamerica Partners Large Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

 

     Shares      Value  

COMMON STOCKS - 99.5%

     

Aerospace & Defense - 5.8%

     

Boeing Co.

     156,044         $  21,298,446   

Honeywell International, Inc.

     63,504         5,802,360   

Precision Castparts Corp.

     34,520         9,296,236   

Rolls-Royce Holdings PLC (A)

     118,801         2,508,288   

United Technologies Corp.

     136,656         15,551,453   

Air Freight & Logistics - 0.6%

     

United Parcel Service, Inc. - Class B

     55,321         5,813,131   

Automobiles - 0.7%

     

Ford Motor Co.

     219,914         3,393,273   

Tesla Motors, Inc. (A) (B)

     24,475         3,680,551   

Beverages - 0.8%

     

Anheuser-Busch InBev NV - ADR

     27,903         2,970,553   

Diageo PLC

     135,787         4,497,130   

Biotechnology - 7.8%

     

Alexion Pharmaceuticals, Inc. (A)

     56,727         7,548,095   

Amgen, Inc.

     89,175         10,180,218   

Biogen IDEC, Inc. (A)

     63,640         17,803,290   

Celgene Corp. (A)

     97,036         16,395,202   

Gilead Sciences, Inc. (A)

     219,056         16,462,058   

Vertex Pharmaceuticals, Inc. (A)

     74,512         5,536,242   

Capital Markets - 1.1%

     

Goldman Sachs Group, Inc.

     41,115         7,288,045   

Morgan Stanley

     104,051         3,263,039   

Chemicals - 1.4%

     

Monsanto Co.

     95,516         11,132,390   

Sherwin-Williams Co.

     10,650         1,954,275   

Commercial Services & Supplies - 0.5%

  

   

ADT Corp. (B)

     37,213         1,506,010   

Tyco International, Ltd.

     72,905         2,992,021   

Communications Equipment - 1.5%

     

Cisco Systems, Inc.

     275,645         6,188,230   

QUALCOMM, Inc.

     104,873         7,786,821   

Computers & Peripherals - 5.4%

     

Apple, Inc.

     57,440         32,230,158   

NetApp, Inc.

     208,174         8,564,278   

SanDisk Corp.

     75,077         5,295,932   

Western Digital Corp.

     56,639         4,752,012   

Consumer Finance - 0.8%

     

American Express Co.

     80,689         7,320,913   

Diversified Financial Services - 1.2%

     

Bank of America Corp.

     311,111         4,843,998   

IntercontinentalExchange Group, Inc.

     19,471         4,379,418   

JPMorgan Chase & Co.

     41,471         2,425,224   

Electrical Equipment - 0.5%

     

Rockwell Automation, Inc. - Class B

     36,170         4,273,847   

Energy Equipment & Services - 1.6%

     

FMC Technologies, Inc. (A)

     49,026         2,559,647   

National Oilwell Varco, Inc.

     51,016         4,057,303   

Oceaneering International, Inc.

     38,850         3,064,488   

Schlumberger, Ltd.

     55,449         4,996,509   

Food & Staples Retailing - 2.5%

     

Costco Wholesale Corp.

     100,388         11,947,176   

CVS Caremark Corp.

     53,226         3,809,385   

Sprouts Farmers Market, Inc. (A) (B)

     26,887         1,033,267   

Whole Foods Market, Inc.

     110,272         6,377,030   

Food Products - 1.4%

     

Green Mountain Coffee Roasters, Inc. - Series C (A) (B)

     41,311         3,122,285   
     Shares      Value  

Food Products (continued)

     

Mead Johnson Nutrition Co. - Class A

     38,935         $  3,261,196   

Mondelez International, Inc. - Class A

     193,984         6,847,635   

Health Care Equipment & Supplies - 2.7%

  

   

Abbott Laboratories

     171,312         6,566,389   

Becton Dickinson and Co.

     38,837         4,291,100   

CR Bard, Inc.

     33,272         4,456,452   

Medtronic, Inc.

     94,637         5,431,217   

Zimmer Holdings, Inc. - Class A

     53,421         4,978,303   

Health Care Providers & Services - 2.0%

     

Aetna, Inc.

     52,713         3,615,585   

Express Scripts Holding Co. (A)

     133,917         9,406,330   

McKesson Corp.

     33,465         5,401,251   

Hotels, Restaurants & Leisure - 3.6%

     

Chipotle Mexican Grill, Inc. - Class A (A)

     15,495         8,255,426   

Dunkin’ Brands Group, Inc. (B)

     102,643         4,947,393   

Starbucks Corp.

     76,308         5,981,784   

Starwood Hotels & Resorts Worldwide, Inc.

     66,093         5,251,089   

Wyndham Worldwide Corp.

     78,426         5,779,212   

Wynn Resorts, Ltd.

     18,778         3,646,875   

Household Durables - 0.4%

     

PulteGroup, Inc. (B)

     173,576         3,535,743   

Industrial Conglomerates - 1.5%

     

3M Co.

     55,513         7,785,698   

Danaher Corp.

     88,325         6,818,690   

Internet & Catalog Retail - 5.1%

     

Amazon.com, Inc. (A)

     51,530         20,549,649   

HomeAway, Inc. (A)

     52,016         2,126,414   

NetFlix, Inc. (A)

     13,813         5,085,532   

priceline.com, Inc. (A)

     15,692         18,240,381   

TripAdvisor, Inc. (A)

     27,722         2,296,213   

Internet Software & Services - 9.2%

     

eBay, Inc. (A)

     115,332         6,330,574   

Facebook, Inc. - Class A (A)

     296,864         16,226,586   

Google, Inc. - Class A (A)

     35,586         39,881,586   

IAC/InterActiveCorp

     103,144         7,084,961   

LinkedIn Corp. - Class A (A)

     48,532         10,523,194   

Twitter, Inc. (A) (B)

     41,428         2,636,892   

Yahoo! Inc. (A)

     99,041         4,005,218   

IT Services - 5.0%

     

Alliance Data Systems Corp. (A) (B)

     16,240         4,269,983   

Mastercard, Inc. - Class A

     24,487         20,457,909   

Paychex, Inc. (B)

     64,412         2,932,679   

Visa, Inc. - Class A

     89,121         19,845,464   

Life Sciences Tools & Services - 0.7%

     

Illumina, Inc. (A) (B)

     59,501         6,582,001   

Machinery - 1.6%

     

Dover Corp.

     50,301         4,856,059   

Illinois Tool Works, Inc. - Class A

     45,369         3,814,625   

Parker Hannifin Corp.

     47,874         6,158,511   

Media - 4.6%

     

Comcast Corp. - Class A

     160,727         8,352,179   

Discovery Communications, Inc. - Series A (A) (B)

     101,779         9,202,857   

Omnicom Group, Inc.

     68,233         5,074,488   

Scripps Networks Interactive, Inc. - Class A

     36,926         3,190,776   

Twenty-First Century Fox, Inc. - Class A

     236,709         8,327,423   

Walt Disney Co. - Class A

     122,141         9,331,572   

Multiline Retail - 0.3%

     

Dollar Tree, Inc. (A)

     49,053         2,767,570   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    84

Transamerica Partners Large Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Oil, Gas & Consumable Fuels - 1.8%

     

Apache Corp.

     29,152         $  2,505,323   

Concho Resources, Inc. (A)

     54,825         5,921,100   

EOG Resources, Inc.

     31,838         5,343,690   

Valero Energy Corp.

     71,004         3,578,601   

Personal Products - 0.7%

     

Estee Lauder Cos., Inc. - Class A

     86,891         6,544,630   

Pharmaceuticals - 4.6%

     

Allergan, Inc.

     70,575         7,839,471   

Bristol-Myers Squibb Co.

     177,171         9,416,639   

Eli Lilly & Co.

     64,886         3,309,186   

Johnson & Johnson

     44,581         4,083,174   

Merck & Co., Inc.

     134,863         6,749,893   

Novo Nordisk A/S - ADR

     39,824         7,357,882   

Perrigo Co. PLC

     32,289         4,955,070   

Real Estate Investment Trusts - 0.5%

     

American Tower Corp. - Class A

     53,382         4,260,951   

Road & Rail - 1.1%

     

Canadian Pacific Railway, Ltd.

     35,783         5,414,684   

Union Pacific Corp.

     31,513         5,294,184   

Semiconductors & Semiconductor Equipment - 2.2%

  

   

Altera Corp.

     221,960         7,220,359   

ARM Holdings PLC - ADR (B)

     78,598         4,302,454   

Microchip Technology, Inc. (B)

     77,004         3,445,929   

Skyworks Solutions, Inc. (A)

     51,194         1,462,101   

Xilinx, Inc.

     98,842         4,538,825   

Software - 9.6%

     

Adobe Systems, Inc. (A)

     76,910         4,605,371   

Check Point Software Technologies, Ltd. - Class A (A) (B)

     106,054         6,842,604   

FireEye, Inc. (A) (B)

     22,840         996,052   

Informatica Corp. (A)

     47,846         1,985,609   

Intuit, Inc.

     49,146         3,750,823   

Microsoft Corp.

     608,638         22,781,320   

NetSuite, Inc. (A)

     23,047         2,374,302   

Oracle Corp.

     352,531         13,487,836   

Red Hat, Inc. (A)

     107,101         6,001,940   

Salesforce.com, Inc. (A) (B)

     206,823         11,414,561   

Splunk, Inc. (A)

     78,866         5,415,728   

Tableau Software, Inc. - Class A (A)

     13,730         946,409   

VMware, Inc. - Class A (A)

     65,017         5,832,675   

Workday, Inc. - Class A (A) (B)

     42,666         3,548,105   
     Shares      Value  

Specialty Retail - 5.5%

     

Buckle, Inc. (B)

     32,819         $  1,724,967   

Home Depot, Inc.

     114,219         9,404,792   

Inditex SA

     53,829         8,871,492   

Lowe’s Cos., Inc.

     200,283         9,924,023   

O’Reilly Automotive, Inc. (A)

     37,201         4,788,141   

PetSmart, Inc. - Class A (B)

     34,904         2,539,266   

TJX Cos., Inc.

     226,328         14,423,883   

Textiles, Apparel & Luxury Goods - 3.2%

     

Lululemon Athletica, Inc. (A) (B)

     20,420         1,205,393   

Michael Kors Holdings, Ltd. (A)

     55,054         4,469,834   

NIKE, Inc. - Class B

     154,749         12,169,461   

Ralph Lauren Corp. - Class A

     20,484         3,616,860   

Swatch Group AG

     7,125         4,722,474   

Under Armour, Inc. - Class A (A) (B)

     48,413         4,226,455   
    

 

 

  

Total Common Stocks (cost $662,254,715)

  

      937,923,413   
    

 

 

  

SECURITIES LENDING COLLATERAL - 5.9%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

     55,290,020         55,290,020   
    

 

 

  

Total Securities Lending Collateral
(cost $55,290,020)

   

      55,290,020   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 0.2%

  

   

State Street Bank & Trust Co.
0.01% (C), dated 12/31/2013, to
be repurchased at $1,844,518 on 01/02/2014. Collateralized by U.S. Government Agency Obligations, 2.50 - 3.50%, due 03/20/2028 - 09/15/2040 and with a total value of $1,892,327.

     $  1,844,517         1,844,517   
    

 

 

  

Total Repurchase Agreement (cost $1,844,517)

  

      1,844,517   
    

 

 

  
    

Total Investment Securities (cost $719,389,252) (D)

  

      995,057,950   

Other Assets and Liabilities - Net  -  (5.6)%

  

      (53,039,717 ) 
    

 

 

  

Net Assets - 100.0%

        $  942,018,233   
    

 

 

  
 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

Common Stocks

   $ 917,324,029      $ 20,599,384      $ —      $ 937,923,413   

Securities Lending Collateral

     55,290,020        —        —        55,290,020   

Repurchase Agreement

     —        1,844,517        —        1,844,517   

Total Investment Securities

   $ 972,614,049      $ 22,443,901      $ —      $ 995,057,950   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    85

Transamerica Partners Large Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

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 $54,075,659. 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 December 31, 2013.
(D)  Aggregate cost for federal income tax purposes is $723,843,565. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $272,570,382 and $1,355,997, respectively. Net unrealized appreciation for tax purposes is $271,214,385.
(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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

DEFINITION:

 

ADR    American Depositary Receipt

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    86

Transamerica Partners Mid Value Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

COMMON STOCKS - 98.1%

     

Automobiles - 0.7%

     

Harley-Davidson, Inc.

     103,650         $  7,176,726   

Beverages - 1.7%

     

Beam, Inc.

     145,300         9,889,118   

Brown-Forman Corp. - Class B

     19,250         1,454,723   

Dr. Pepper Snapple Group, Inc.

     101,700         4,954,824   

Building Products - 0.4%

     

Fortune Brands Home & Security, Inc.

     78,400         3,582,880   

Capital Markets - 5.7%

     

Ameriprise Financial, Inc.

     69,500         7,995,975   

Invesco, Ltd.

     346,100         12,598,040   

Legg Mason, Inc.

     42,300         1,839,204   

Northern Trust Corp.

     76,400         4,728,396   

Raymond James Financial, Inc.

     142,650         7,444,903   

State Street Corp.

     205,000         15,044,950   

T. Rowe Price Group, Inc.

     65,800         5,512,066   

Chemicals - 5.2%

     

Airgas, Inc.

     123,250         13,785,512   

Albemarle Corp.

     90,420         5,731,724   

FMC Corp. - Class A

     201,750         15,224,055   

Huntsman Corp.

     332,000         8,167,200   

Sherwin-Williams Co.

     13,500         2,477,250   

Sigma-Aldrich Corp. (A)

     53,400         5,020,134   

Commercial Banks - 6.0%

     

City National Corp. (A)

     48,900         3,873,858   

Cullen / Frost Bankers, Inc. (A)

     16,000         1,190,880   

Fifth Third Bancorp

     350,800         7,377,324   

First Republic Bank - Class A

     57,000         2,983,950   

Huntington Bancshares, Inc. - Class A

     238,200         2,298,630   

KeyCorp

     796,300         10,686,346   

M&T Bank Corp.

     50,600         5,890,852   

SunTrust Banks, Inc.

     575,750         21,193,357   

Zions Bancorporation

     81,400         2,438,744   

Commercial Services & Supplies - 1.3%

  

   

Tyco International, Ltd.

     314,350         12,900,924   

Communications Equipment - 0.2%

     

CommScope Holding Co., Inc. (A) (B)

     117,000         2,213,640   

Containers & Packaging - 2.6%

     

Ball Corp.

     186,100         9,613,926   

MeadWestvaco Corp.

     197,200         7,282,596   

Rock Tenn Co. - Class A

     41,400         4,347,414   

Silgan Holdings, Inc.

     92,000         4,417,840   

Distributors - 0.2%

     

Genuine Parts Co. (A)

     28,100         2,337,639   

Electric Utilities - 2.3%

     

Edison International

     87,300         4,041,990   

Northeast Utilities

     218,900         9,279,171   

Westar Energy, Inc. - Class A (A)

     150,800         4,851,236   

Xcel Energy, Inc.

     157,764         4,407,926   

Electrical Equipment - 1.5%

     

AMETEK, Inc. - Class A

     98,050         5,164,294   

Hubbell, Inc. - Class B

     35,100         3,822,390   

Regal Beloit Corp.

     74,500         5,492,140   

Electronic Equipment & Instruments - 1.5%

  

   

Amphenol Corp. - Class A

     87,720         7,822,870   

Arrow Electronics, Inc. (B)

     130,600         7,085,050   

Energy Equipment & Services - 1.8%

     

Cameron International Corp. (B)

     163,250         9,718,272   

Oceaneering International, Inc.

     101,900         8,037,872   
     Shares      Value  

Food & Staples Retailing - 0.5%

     

Kroger Co.

     114,000         $  4,506,420   

Food Products - 0.8%

     

Hershey Co.

     83,890         8,156,625   

Gas Utilities - 2.1%

     

EQT Corp.

     47,020         4,221,456   

National Fuel Gas Co.

     40,500         2,891,700   

Questar Corp.

     572,581         13,163,637   

Health Care Equipment & Supplies - 2.2%

  

   

CareFusion Corp. - Class A (B)

     339,250         13,508,935   

St. Jude Medical, Inc.

     133,000         8,239,350   

Health Care Providers & Services - 3.3%

  

   

AmerisourceBergen Corp. - Class A

     73,100         5,139,661   

Cardinal Health, Inc.

     72,350         4,833,703   

CIGNA Corp.

     167,900         14,687,892   

Henry Schein, Inc. (B)

     26,500         3,027,890   

Humana, Inc. - Class A

     42,680         4,405,430   

Hotels, Restaurants & Leisure - 2.3%

     

Darden Restaurants, Inc. (A)

     20,199         1,098,220   

Extended Stay America, Inc. (B)

     15,800         414,908   

Marriott International, Inc. - Class A

     95,766         4,727,010   

Starwood Hotels & Resorts Worldwide, Inc.

     59,400         4,719,330   

Wynn Resorts, Ltd.

     38,850         7,545,058   

Yum! Brands, Inc.

     52,400         3,961,964   

Household Durables - 3.0%

     

Jarden Corp. (B)

     71,500         4,386,525   

Mohawk Industries, Inc. (B)

     102,550         15,269,695   

Newell Rubbermaid, Inc.

     303,800         9,846,158   

Household Products - 0.4%

     

Energizer Holdings, Inc.

     34,300         3,712,632   

Industrial Conglomerates - 0.6%

  

Carlisle Cos., Inc.

     78,379         6,223,293   

Insurance - 5.7%

     

Alleghany Corp. (B)

     8,374         3,349,265   

Chubb Corp. - Class A

     35,400         3,420,702   

Hartford Financial Services Group, Inc.

     397,850         14,414,106   

Loews Corp.

     177,000         8,538,480   

Marsh & McLennan Cos., Inc.

     187,700         9,077,172   

Old Republic International Corp.

     216,100         3,732,047   

Unum Group

     126,900         4,451,652   

WR Berkley Corp.

     90,700         3,935,473   

XL Group PLC - Class A

     134,400         4,279,296   

Internet & Catalog Retail - 0.8%

     

Expedia, Inc.

     97,750         6,809,265   

TripAdvisor, Inc. (B)

     13,450         1,114,064   

Internet Software & Services - 1.0%

     

IAC/InterActiveCorp

     138,200         9,492,958   

IT Services - 2.2%

     

Jack Henry & Associates, Inc.

     115,200         6,820,992   

Teradata Corp. (B)

     329,400         14,984,406   

Life Sciences Tools & Services - 1.0%

     

Agilent Technologies, Inc.

     169,400         9,687,986   

Machinery - 4.4%

     

Dover Corp.

     99,650         9,620,211   

IDEX Corp.

     82,100         6,063,085   

Pall Corp.

     98,100         8,372,835   

Pentair, Ltd.

     144,540         11,226,422   

Rexnord Corp. (A) (B)

     95,900         2,590,259   

Snap-on, Inc.

     49,106         5,378,089   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    87

Transamerica Partners Mid Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Media - 2.5%

     

CBS Corp. - Class B

     59,400         $  3,786,156   

Clear Channel Outdoor Holdings, Inc. - Class A

     114,861         1,164,691   

DISH Network Corp. - Class A (B)

     119,700         6,933,024   

Gannett Co., Inc.

     108,700         3,215,346   

Interpublic Group of Cos., Inc.

     512,700         9,074,790   

Multi-Utilities - 3.3%

     

CenterPoint Energy, Inc.

     185,080         4,290,154   

CMS Energy Corp.

     173,700         4,649,949   

NiSource, Inc. - Class B

     400,500         13,168,440   

Sempra Energy

     66,800         5,995,968   

Wisconsin Energy Corp. (A)

     90,500         3,741,270   

Multiline Retail - 2.4%

     

Family Dollar Stores, Inc.

     71,300         4,632,361   

Kohl’s Corp. (A)

     134,860         7,653,305   

Macy’s, Inc.

     198,700         10,610,580   

Oil, Gas & Consumable Fuels - 4.3%

     

Cameco Corp. - Class A (A)

     542,050         11,258,378   

Energen Corp.

     71,821         5,081,336   

PBF Energy, Inc. - Class A (A)

     108,700         3,419,702   

QEP Resources, Inc.

     377,750         11,578,037   

Southwestern Energy Co. (B)

     54,100         2,127,753   

Whiting Petroleum Corp. (B)

     76,550         4,736,149   

Williams Cos., Inc.

     94,700         3,652,579   

Pharmaceuticals - 2.1%

     

Hospira, Inc. (B)

     217,620         8,983,354   

Zoetis, Inc. - Class A

     358,300         11,712,827   

Professional Services - 2.8%

     

Dun & Bradstreet Corp. (A)

     90,675         11,130,356   

Equifax, Inc.

     84,200         5,817,378   

Nielsen Holdings NV

     213,500         9,797,515   

Real Estate Investment Trusts - 4.3%

     

American Campus Communities, Inc.

     71,000         2,286,910   

American Homes 4 Rent - Class A

     145,200         2,352,240   

AvalonBay Communities, Inc.

     23,300         2,754,759   

Brixmor Property Group, Inc.

     59,700         1,213,701   

HCP, Inc.

     91,100         3,308,752   

Kimco Realty Corp.

     224,700         4,437,825   

Rayonier, Inc.

     56,500         2,378,650   

Regency Centers Corp.

     64,000         2,963,200   

Taubman Centers, Inc.

     108,500         6,935,320   

Vornado Realty Trust - Class A

     55,937         4,966,646   

Weyerhaeuser Co.

     266,600         8,416,562   

Real Estate Management & Development - 0.3%

  

Brookfield Office Properties, Inc. (A)

     168,000         3,234,000   

Road & Rail - 0.7%

     

Hertz Global Holdings, Inc. (B)

     252,450         7,225,119   

Semiconductors & Semiconductor Equipment - 2.9%

  

Analog Devices, Inc. - Class A

     135,240         6,887,773   

KLA-Tencor Corp.

     69,000         4,447,740   

LSI Corp.

     528,600         5,825,172   

Microchip Technology, Inc. (A)

     122,000         5,459,500   

Xilinx, Inc.

     128,800         5,914,496   

Software - 2.9%

     

Citrix Systems, Inc. (B)

     119,950         7,586,838   

PTC, Inc. (B)

     225,950         7,996,370   

Synopsys, Inc. (B)

     315,550         12,801,863   
     Shares      Value  

Specialty Retail - 3.5%

     

AutoZone, Inc. (B)

     16,000         $  7,647,040   

Bed Bath & Beyond, Inc. (B)

     48,400         3,886,520   

Gap, Inc. - Class A

     182,800         7,143,824   

PetSmart, Inc. - Class A (A)

     70,800         5,150,700   

Tiffany & Co.

     33,100         3,071,018   

TJX Cos., Inc.

     69,400         4,422,862   

Williams-Sonoma, Inc. - Class A

     38,267         2,230,201   

Textiles, Apparel & Luxury Goods - 1.9%

  

   

PVH Corp.

     118,900         16,172,778   

V.F. Corp.

     34,400         2,144,496   

Thrifts & Mortgage Finance - 0.1%

  

   

Hudson City Bancorp, Inc.

     130,700         1,232,501   

Trading Companies & Distributors - 1.6%

  

   

MSC Industrial Direct Co., Inc. - Class A

     194,500         15,729,215   

Water Utilities - 1.1%

     

American Water Works Co., Inc.

     245,150         10,360,039   
    

 

 

  

Total Common Stocks (cost $708,979,938)

  

      956,241,096   
    

 

 

  

SECURITIES LENDING COLLATERAL - 6.3%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

     61,362,203         61,362,203   
    

 

 

  

Total Securities Lending Collateral
(cost $61,362,203)

   

      61,362,203   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 2.3%

  

   

State Street Bank & Trust Co.
0.01% (C), dated 12/31/2013, to be repurchased at $22,506,127 on 01/02/2014. Collateralized by U.S. Government Agency Obligations, 3.50%, due 09/15/2040 - 10/15/2040, and with a total value of $22,962,579.

     $  22,506,114         22,506,114   
    

 

 

  

Total Repurchase Agreement (cost $22,506,114)

  

      22,506,114   
    

 

 

  
    

Total Investment Securities (cost $792,848,255) (D)

  

      1,040,109,413   

Other Assets and Liabilities - Net  - (6.7)%

  

      (65,028,249 ) 
    

 

 

  

Net Assets  - 100.0%

        $  975,081,164   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    88

Transamerica Partners Mid Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

Common Stocks

   $ 956,241,096      $ —      $ —      $ 956,241,096   

Securities Lending Collateral

     61,362,203        —        —        61,362,203   

Repurchase Agreement

     —        22,506,114        —        22,506,114   

Total Investment Securities

   $ 1,017,603,299      $ 22,506,114      $             —      $ 1,040,109,413   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  All or a portion of this security is on loan. The value of all securities on loan is $60,010,434. 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 December 31, 2013.
(D)  Aggregate cost for federal income tax purposes is $795,380,864. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $249,720,413 and $4,991,864, respectively. Net unrealized appreciation for tax purposes is $244,728,549.
(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 December 31, 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 Portfolios   Annual Report 2013

Page    89

Transamerica Partners Mid Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    90

 

     Shares      Value  

COMMON STOCKS - 98.6%

     

Aerospace & Defense - 4.8%

     

Rockwell Collins, Inc. (A)

     50,876         $  3,760,754   

Teledyne Technologies, Inc. (B)

     37,574         3,451,548   

Auto Components - 2.8%

     

Tenneco, Inc. (B)

     73,746         4,171,811   

Biotechnology - 7.0%

     

BioMarin Pharmaceutical, Inc. (B)

     68,108         4,785,949   

United Therapeutics Corp. (A) (B)

     50,726         5,736,096   

Chemicals - 3.7%

     

Axiall Corp. (A)

     47,635         2,259,804   

RPM International, Inc.

     79,921         3,317,521   

Commercial Banks - 2.5%

     

Comerica, Inc. - Class A (A)

     78,726         3,742,634   

Commercial Services & Supplies - 2.2%

  

   

Stericycle, Inc. (A) (B)

     28,863         3,353,015   

Containers & Packaging - 1.8%

     

Rock Tenn Co. - Class A

     25,480         2,675,655   

Electrical Equipment - 2.7%

     

AMETEK, Inc. - Class A (A)

     77,755         4,095,356   

Electronic Equipment & Instruments - 3.3%

  

   

Trimble Navigation, Ltd. (A) (B)

     142,466         4,943,570   

Food & Staples Retailing - 3.5%

     

Casey’s General Stores, Inc. (A)

     38,465         2,702,166   

Fresh Market, Inc. (A) (B)

     64,542         2,613,951   

Food Products - 1.9%

     

McCormick & Co., Inc. (A)

     40,840         2,814,693   

Gas Utilities - 1.5%

     

EQT Corp.

     25,706         2,307,885   

Health Care Equipment & Supplies - 7.2%

  

   

Alere, Inc. (A) (B)

     97,024         3,512,269   

Align Technology, Inc. (B)

     79,801         4,560,627   

Cyberonics, Inc. (B)

     41,107         2,692,919   

Hotels, Restaurants & Leisure - 2.7%

     

Cheesecake Factory, Inc. (A)

     84,250         4,066,747   

Household Durables - 3.1%

     

Whirlpool Corp. (A)

     29,469         4,622,507   

Insurance - 2.3%

     

CNO Financial Group, Inc.

     193,394         3,421,140   

IT Services - 2.5%

     

NeuStar, Inc. - Class A (A) (B)

     74,807         3,729,877   

Machinery - 2.7%

     

Stanley Black & Decker, Inc. (A)

     50,478         4,073,070   

Media - 1.6%

     

Scripps Networks Interactive, Inc. - Class A (A)

     27,036         2,336,181   

Oil, Gas & Consumable Fuels - 4.5%

     

Cimarex Energy Co.

     43,423         4,555,507   

Energen Corp.

     30,903         2,186,387   
     Shares      Value  

Professional Services - 2.3%

     

Equifax, Inc. (A)

     49,623         $  3,428,453   

Real Estate Investment Trusts - 1.7%

  

   

Colony Financial, Inc. (A)

     127,291         2,582,734   

Semiconductors & Semiconductor Equipment - 4.8%

  

KLA-Tencor Corp.

     45,449         2,929,643   

Synaptics, Inc. (A) (B)

     82,130         4,255,155   

Software - 7.1%

     

PTC, Inc. (B)

     164,609         5,825,512   

Solera Holdings, Inc. (A)

     67,429         4,771,276   

Specialty Retail - 12.3%

     

Dick’s Sporting Goods, Inc. (A)

     65,823         3,824,316   

DSW, Inc. - Class A (A)

     79,075         3,378,875   

Murphy USA, Inc. (A) (B)

     70,199         2,917,471   

Sally Beauty Holdings, Inc. (A) (B)

     125,921         3,806,592   

Williams-Sonoma, Inc. - Class A (A)

     78,144         4,554,232   

Textiles, Apparel & Luxury Goods - 2.5%

  

   

Under Armour, Inc. - Class A (A) (B)

     43,822         3,825,661   

Trading Companies & Distributors - 2.2%

  

   

Air Lease Corp. - Class A

     107,209         3,332,056   

Wireless Telecommunication Services - 1.4%

  

Telephone & Data Systems, Inc.

     84,086         2,167,737   
    

 

 

  

Total Common Stocks (cost $127,569,279)

  

      148,089,352   
    

 

 

  

SECURITIES LENDING COLLATERAL - 25.5%

  

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

     38,314,340         38,314,340   
    

 

 

  

Total Securities Lending Collateral
(cost $38,314,340)

   

      38,314,340   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 1.4%

  

   

State Street Bank & Trust Co.
0.01% (C), dated 12/31/2013, to be repurchased at $2,076,219 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $2,119,596.

     $  2,076,218         2,076,218   
    

 

 

  

Total Repurchase Agreement (cost $2,076,218)

  

      2,076,218   
    

 

 

  
    

Total Investment Securities (cost $167,959,837) (D)

  

      188,479,910   

Other Assets and Liabilities - Net - (25.5)%

  

      (38,336,848 ) 
    

 

 

  

Net Assets - 100.0%

        $  150,143,062   
    

 

 

  
 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 148,089,352      $ —      $ —      $ 148,089,352   

Securities Lending Collateral

     38,314,340        —        —        38,314,340   

Repurchase Agreement

     —        2,076,218        —        2,076,218   

Total Investment Securities

   $ 186,403,692      $ 2,076,218      $ —      $ 188,479,910   

Transamerica Partners Mid Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $37,487,131. 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 December 31, 2013.
(D) Aggregate cost for federal income tax purposes is $167,990,268. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $21,619,008 and $1,129,366, respectively. Net unrealized appreciation for tax purposes is $20,489,642.
(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 December 31, 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 Portfolios   Annual Report 2013

Page    91

Transamerica Partners Small Value Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

 

     Shares      Value  

COMMON STOCKS - 98.7%

     

Aerospace & Defense - 1.4%

     

Cubic Corp. (A)

     22,300         $  1,174,318   

Air Freight & Logistics - 2.4%

     

Atlas Air Worldwide Holdings, Inc. (A) (B)

     26,900         1,106,935   

UTi Worldwide, Inc. (A)

     49,000         860,440   

Capital Markets - 0.5%

     

Solar Capital, Ltd. (A)

     18,670         421,008   

Chemicals - 4.7%

     

Innospec, Inc.

     23,000         1,063,060   

Koppers Holdings, Inc.

     18,900         864,675   

Sensient Technologies Corp.

     17,700         858,804   

Zep, Inc. (A)

     59,400         1,078,704   

Commercial Banks - 11.1%

     

First Busey Corp. - Class B (A)

     110,230         639,334   

First Midwest Bancorp, Inc. (A)

     78,900         1,383,117   

First Niagara Financial Group, Inc.

     80,110         850,768   

Flushing Financial Corp. - Class A (A)

     38,133         789,353   

Hancock Holding Co.

     22,000         806,960   

International Bancshares Corp. (A)

     58,200         1,535,898   

MB Financial, Inc. (A)

     33,500         1,075,015   

Webster Financial Corp. (A)

     51,600         1,608,888   

Westamerica Bancorporation (A)

     7,310         412,723   

Commercial Services & Supplies - 7.5%

     

ACCO Brands Corp. (A) (B)

     138,500         930,720   

G&K Services, Inc. - Class A (A)

     30,700         1,910,461   

SP Plus Corp. (A) (B)

     55,000         1,432,200   

United Stationers, Inc. (A)

     41,630         1,910,401   

Computers & Peripherals - 1.5%

     

Diebold, Inc. (A)

     38,100         1,257,681   

Containers & Packaging - 0.8%

     

Greif, Inc. - Class A (A)

     13,300         696,920   

Diversified Consumer Services - 1.8%

     

Matthews International Corp. - Class A (A)

     34,000         1,448,740   

Electric Utilities - 1.2%

     

UNS Energy Corp. (A)

     16,000         957,600   

Electronic Equipment & Instruments - 7.1%

     

Belden, Inc. (A)

     42,100         2,965,945   

Coherent, Inc. (A) (B)

     12,600         937,314   

MTS Systems Corp. (A)

     10,232         729,030   

ScanSource, Inc. (B)

     28,200         1,196,526   

Energy Equipment & Services - 2.4%

     

Era Group, Inc. (A) (B)

     27,640         852,970   

SEACOR Holdings, Inc. (A) (B)

     12,540         1,143,648   

Food & Staples Retailing - 1.5%

     

Casey’s General Stores, Inc. (A)

     17,100         1,201,275   

Food Products - 0.9%

     

Post Holdings, Inc. (A) (B)

     14,600         719,342   

Gas Utilities - 3.2%

     

Atmos Energy Corp. (A)

     22,900         1,040,118   

Laclede Group, Inc. (A)

     13,500         614,790   

New Jersey Resources Corp. (A)

     7,900         365,296   

WGL Holdings, Inc. (A)

     16,300         652,978   

Health Care Equipment & Supplies - 2.9%

     

Haemonetics Corp. (A) (B)

     4,200         176,946   

ICU Medical, Inc. - Class B (A) (B)

     18,600         1,185,006   

STERIS Corp. (A)

     21,600         1,037,880   

Health Care Providers & Services - 3.3%

     

Amsurg Corp. - Class A (B)

     40,100         1,841,392   

Corvel Corp. (B)

     17,900         835,930   
      Shares      Value  

Health Care Technology - 1.2%

      

Allscripts Healthcare Solutions, Inc. (A) (B)

      61,300       $ 947,698   

Hotels, Restaurants & Leisure - 2.3%

      

CEC Entertainment, Inc. (A)

      36,400         1,611,792   

Choice Hotels International, Inc. (A)

      4,960         243,586   

Household Durables - 2.4%

      

Helen of Troy, Ltd. (A) (B)

      39,135         1,937,574   

Insurance - 4.7%

      

AMERISAFE, Inc. (A)

      17,900         756,096   

Assured Guaranty, Ltd. (A)

      38,900         917,651   

Platinum Underwriters Holdings, Ltd.

      13,600         833,408   

Primerica, Inc.

      32,600         1,398,866   

IT Services - 2.4%

      

Forrester Research, Inc. (A)

      32,220         1,232,737   

MAXIMUS, Inc. - Class A

      17,700         778,623   

Life Sciences Tools & Services - 4.0%

      

Charles River Laboratories International, Inc. (A) (B)

      41,600         2,206,464   

ICON PLC (B)

      27,300         1,103,193   

Machinery - 5.9%

      

Albany International Corp. - Class A (A)

      45,000         1,616,850   

ESCO Technologies, Inc.

      30,500         1,044,930   

Luxfer Holdings PLC - ADR

      7,600         158,536   

Mueller Industries, Inc.

      32,800         2,066,728   

Multiline Retail - 1.7%

      

Fred’s, Inc. - Class A (A)

      75,700         1,401,964   

Office Electronics - 1.3%

      

Zebra Technologies Corp. - Class A (B)

      20,000         1,081,600   

Oil, Gas & Consumable Fuels - 3.4%

  

Diamondback Energy, Inc. (B)

      17,300         914,478   

Scorpio Tankers, Inc.

      162,600         1,917,054   

Paper & Forest Products - 1.3%

      

Deltic Timber Corp. (A)

      16,340         1,110,140   

Real Estate Investment Trusts - 3.6%

      

Campus Crest Communities, Inc. (A)

      83,400         784,794   

DiamondRock Hospitality Co. (A)

      65,600         757,680   

Education Realty Trust, Inc.

      80,300         708,246   

Summit Hotel Properties, Inc.

      74,500         670,500   

Semiconductors & Semiconductor Equipment - 0.4%

  

   

Micrel, Inc. (A)

      31,497         310,875   

Software - 1.1%

      

Verint Systems, Inc. (B)

      20,400         875,976   

Specialty Retail - 5.5%

      

Ascena Retail Group, Inc. - Class B (B)

      78,300         1,656,828   

Cato Corp. - Class A (A)

      55,870         1,776,666   

Stage Stores, Inc. (A)

      47,700         1,059,894   

Thrifts & Mortgage Finance - 1.6%

      

Northwest Bancshares, Inc. (A)

      89,000         1,315,420   

Trading Companies & Distributors - 1.7%

  

   

GATX Corp. (A)

      27,500         1,434,675   
     

 

 

  

Total Common Stocks (cost $52,928,950)

  

      81,202,631   
     

 

 

  

SECURITIES LENDING COLLATERAL - 25.6%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

      21,105,684         21,105,684   
     

 

 

  

Total Securities Lending Collateral (cost $21,105,684)

  

      21,105,684   
     

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    92

Transamerica Partners Small Value Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

 

      Principal      Value  

REPURCHASE AGREEMENT - 1.3%

      

State Street Bank & Trust Co.
0.01% (C), dated 12/31/2013, to be repurchased at $1,094,007 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $1,117,204.

    $   1,094,007       $ 1,094,007   
     

 

 

  

Total Repurchase Agreement (cost $1,094,007)

  

      1,094,007   
     

 

 

  
     

Total Investment Securities (cost $75,128,641) (D)

  

      103,402,322   

Other Assets and Liabilities - Net  - (25.6)%

  

      (21,104,780 ) 
     

 

 

  

Net Assets  - 100.0%

       $   82,297,542   
     

 

 

  

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

Common Stocks

   $ 81,202,631      $ —      $ —      $ 81,202,631   

Securities Lending Collateral

     21,105,684        —        —        21,105,684   

Repurchase Agreement

     —        1,094,007        —        1,094,007   

Total Investment Securities

   $ 102,308,315      $ 1,094,007      $ —      $ 103,402,322   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $20,590,104. 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 December 31, 2013.
(D) Aggregate cost for federal income tax purposes is $75,300,553. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $28,377,809 and $276,040, respectively. Net unrealized appreciation for tax purposes is $28,101,769.
(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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

DEFINITION:

 

ADR    American Depositary Receipt

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    93

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

COMMON STOCKS - 97.7%

     

Aerospace & Defense - 1.0%

     

AAR Corp. (A)

     36,881         $  1,033,037   

American Science & Engineering, Inc.

     16,175         1,163,144   

Ducommun, Inc. (A) (B)

     43,195         1,287,643   

Air Freight & Logistics - 0.3%

     

Pacer International, Inc. (B)

     132,505         1,094,491   

Airlines - 1.0%

     

JetBlue Airways Corp. (A) (B)

     135,345         1,157,200   

Republic Airways Holdings, Inc. (A) (B)

     107,077         1,144,653   

SkyWest, Inc.

     71,805         1,064,868   

Auto Components - 0.7%

     

Stoneridge, Inc. (A) (B)

     89,211         1,137,440   

Tower International, Inc. (B)

     52,475         1,122,965   

Automobiles - 0.3%

     

Thor Industries, Inc. (A)

     21,230         1,172,533   

Biotechnology - 1.3%

     

Geron Corp. (A) (B)

     207,705         984,522   

Myriad Genetics, Inc. (A) (B)

     45,211         948,527   

PDL Biopharma, Inc. (A)

     133,237         1,124,520   

Repligen Corp. (A) (B)

     85,970         1,172,631   

Building Products - 0.4%

     

Simpson Manufacturing Co., Inc.

     32,420         1,190,787   

Capital Markets - 2.5%

     

Cowen Group, Inc. - Class A (B)

     302,720         1,183,635   

FBR & Co. (B)

     40,320         1,063,642   

Fortress Investment Group LLC - Class A

     140,646         1,203,930   

Janus Capital Group, Inc. (A)

     105,198         1,301,299   

Och-Ziff Capital Management Group LLC - Class A

     81,304         1,203,299   

Prospect Capital Corp. (A)

     102,265         1,147,413   

Stifel Financial Corp. (A) (B)

     25,460         1,220,043   

Chemicals - 1.8%

     

A. Schulman, Inc.

     33,636         1,186,005   

FutureFuel Corp. (A)

     73,010         1,153,558   

Koppers Holdings, Inc.

     24,423         1,117,352   

Minerals Technologies, Inc.

     20,399         1,225,368   

Olin Corp. (A)

     43,195         1,246,176   

Commercial Banks - 4.7%

     

BankUnited, Inc. (A)

     35,825         1,179,359   

Cathay General Bancorp (A)

     44,770         1,196,702   

Central Pacific Financial Corp.

     58,825         1,181,206   

Chemical Financial Corp. (A)

     36,660         1,161,022   

CVB Financial Corp. (A)

     71,495         1,220,420   

First Interstate Bancsystem, Inc. - Class A

     45,761         1,298,240   

First Merchants Corp. (A)

     55,192         1,256,170   

Glacier Bancorp, Inc. (A)

     41,130         1,225,263   

Hanmi Financial Corp. - Basis B (A)

     57,170         1,251,451   

Lakeland Financial Corp. (A)

     32,590         1,271,010   

Sandy Spring Bancorp, Inc. (A)

     40,680         1,146,769   

United Community Banks, Inc. (A) (B)

     64,635         1,147,271   

Wilshire Bancorp, Inc. (A)

     111,265         1,216,126   

Commercial Services & Supplies - 2.5%

     

ABM Industries, Inc.

     42,630         1,218,792   

ARC Document Solutions, Inc. - Class A (B)

     140,175         1,152,239   

Consolidated Graphics, Inc. (B)

     17,400         1,173,456   

R.R. Donnelley & Sons Co. (A)

     59,011         1,196,743   

Steelcase, Inc. - Class A

     70,635         1,120,271   

United Stationers, Inc. (A)

     26,880         1,233,523   

Viad Corp. (A)

     43,925         1,220,236   
     Shares      Value  

Communications Equipment - 2.5%

     

AudioCodes, Ltd. (B)

     181,250         $  1,292,313   

BlackBerry, Ltd. (A) (B)

     180,670         1,345,991   

Brocade Communications Systems, Inc. (B)

     140,751         1,248,461   

Comtech Telecommunications Corp.

     36,669         1,155,807   

Emulex Corp. (A) (B)

     155,710         1,114,884   

Harmonic, Inc. (B)

     142,508         1,051,709   

Polycom, Inc. (A) (B)

     107,697         1,209,437   

Computers & Peripherals - 1.4%

     

Lexmark International, Inc. - Class A (A)

     30,061         1,067,767   

Logitech International SA (A)

     99,495         1,362,086   

QLogic Corp. (B)

     98,185         1,161,528   

Super Micro Computer, Inc. (B)

     70,610         1,211,668   

Construction & Engineering - 1.4%

     

AECOM Technology Corp. (B)

     36,226         1,066,131   

Comfort Systems USA, Inc. - Class A

     57,085         1,106,878   

Pike Corp. (A) (B)

     111,591         1,179,517   

Tutor Perini Corp. (B)

     48,608         1,278,391   

Consumer Finance - 0.3%

     

Nelnet, Inc. - Class A

     26,520         1,117,553   

Containers & Packaging - 1.8%

     

Graphic Packaging Holding Co. (B)

     123,993         1,190,333   

Greif, Inc. - Class A (A)

     20,484         1,073,362   

Myers Industries, Inc. (A)

     60,625         1,280,400   

Silgan Holdings, Inc. (A)

     24,005         1,152,720   

Sonoco Products Co. (A)

     29,899         1,247,386   

Diversified Consumer Services - 2.3%

     

American Public Education, Inc. (B)

     24,875         1,081,316   

Apollo Education Group, Inc. - Class A (B)

     41,412         1,131,376   

Capella Education Co. (A)

     17,728         1,177,848   

DeVry Education Group, Inc. (A)

     30,776         1,092,548   

ITT Educational Services, Inc. (A) (B)

     28,080         942,927   

K12, Inc. (A) (B)

     60,737         1,321,030   

Strayer Education, Inc. (A) (B)

     31,854         1,098,007   

Diversified Financial Services - 0.3%

     

Gain Capital Holdings, Inc. - Class A (A)

     123,050         924,106   

Diversified Telecommunication Services - 1.0%

  

   

IDT Corp. - Class B

     51,498         920,269   

Inteliquent, Inc.

     104,690         1,195,560   

Vonage Holdings Corp. (B)

     331,515         1,103,945   

Electric Utilities - 1.0%

     

Hawaiian Electric Industries, Inc. (A)

     41,503         1,081,568   

IDACORP, Inc. (A)

     21,935         1,137,110   

UIL Holdings Corp. (A)

     29,614         1,147,543   

Electrical Equipment - 0.4%

     

Brady Corp. - Class A

     38,910         1,203,486   

Electronic Equipment & Instruments - 3.5%

  

   

AVX Corp. (A)

     87,898         1,224,419   

Benchmark Electronics, Inc. (B)

     48,475         1,118,803   

Celestica, Inc. (B)

     104,150         1,083,160   

Daktronics, Inc.

     75,630         1,185,878   

Insight Enterprises, Inc. (B)

     46,497         1,055,947   

Nam Tai Electronics, Inc. (A)

     150,168         1,072,200   

Orbotech, Ltd. (B)

     82,900         1,120,808   

Plexus Corp. (A) (B)

     29,465         1,275,540   

Sanmina Corp. (A) (B)

     76,340         1,274,878   

ScanSource, Inc. (A) (B)

     26,550         1,126,516   

Energy Equipment & Services - 3.6%

     

Bristow Group, Inc. (A)

     14,465         1,085,743   

Exterran Holdings, Inc. (A) (B)

     34,555         1,181,781   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    94

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Energy Equipment & Services (continued)

  

   

Hercules Offshore, Inc. (A) (B)

     159,818         $  1,043,612   

Matrix Service Co. (B)

     53,899         1,318,908   

Newpark Resources, Inc. (A) (B)

     91,542         1,125,051   

Parker Drilling Co. (A) (B)

     142,277         1,156,712   

Patterson-UTI Energy, Inc. (A)

     47,405         1,200,295   

Pioneer Energy Services Corp. (A) (B)

     155,075         1,242,151   

Tesco Corp. - Class B (B)

     69,791         1,380,466   

Unit Corp. (A) (B)

     22,770         1,175,387   

Food & Staples Retailing - 1.1%

     

Andersons, Inc. (A)

     13,145         1,172,140   

Roundy’s, Inc. (A)

     127,170         1,253,896   

Spartan Stores, Inc.

     49,300         1,197,004   

Food Products - 1.7%

     

Chiquita Brands International, Inc. (A) (B)

     100,820         1,179,594   

Dean Foods Co. (A) (B)

     62,164         1,068,599   

Omega Protein Corp. (B)

     87,895         1,080,230   

Pilgrim’s Pride Corp. (A) (B)

     69,025         1,121,656   

Sanderson Farms, Inc. (A)

     18,122         1,310,764   

Health Care Equipment & Supplies - 3.8%

  

   

Alere, Inc. (B)

     34,885         1,262,837   

Anika Therapeutics, Inc. (B)

     30,605         1,167,887   

Conmed Corp.

     29,000         1,232,500   

Hill-Rom Holdings, Inc. (A)

     28,287         1,169,385   

ICU Medical, Inc. - Class B (B)

     17,975         1,145,187   

Masimo Corp. (A) (B)

     41,232         1,205,211   

Meridian Bioscience, Inc. (A)

     45,870         1,216,931   

Natus Medical, Inc. (B)

     51,435         1,157,288   

NuVasive, Inc. (B)

     35,151         1,136,432   

PhotoMedex, Inc. (A) (B)

     81,794         1,059,232   

Thoratec Corp. (A) (B)

     28,600         1,046,760   

Health Care Providers & Services - 6.3%

  

   

Addus HomeCare Corp. (A) (B)

     39,525         887,336   

Alliance HealthCare Services, Inc. (B)

     37,000         915,380   

Amedisys, Inc. (A) (B)

     71,400         1,044,582   

AMN Healthcare Services, Inc. (B)

     91,615         1,346,740   

Amsurg Corp. - Class A (A) (B)

     24,655         1,132,158   

BioTelemetry, Inc. (B)

     120,175         954,190   

Centene Corp. (B)

     18,670         1,100,597   

Chemed Corp. (A)

     15,177         1,162,862   

Gentiva Health Services, Inc. (A) (B)

     94,724         1,175,525   

Health Net, Inc. (B)

     37,940         1,125,680   

Kindred Healthcare, Inc. (A)

     63,165         1,246,877   

LifePoint Hospitals, Inc. (B)

     23,890         1,262,348   

Magellan Health Services, Inc. (B)

     18,780         1,125,110   

Owens & Minor, Inc. (A)

     29,899         1,093,107   

PharMerica Corp. (A) (B)

     54,619         1,174,308   

Providence Service Corp. (B)

     38,411         987,931   

Triple-S Management Corp. - Class B (B)

     58,767         1,142,430   

VCA Antech, Inc. (B)

     38,140         1,196,070   

WellCare Health Plans, Inc. (B)

     15,410         1,085,172   

Health Care Technology - 0.7%

     

MedAssets, Inc. (B)

     53,664         1,064,157   

Omnicell, Inc. (B)

     48,081         1,227,508   

Hotels, Restaurants & Leisure - 2.5%

     

CEC Entertainment, Inc. (A)

     24,455         1,082,867   

International Speedway Corp. - Class A (A)

     34,065         1,208,967   

Jack in the Box, Inc. (B)

     24,195         1,210,234   

Marriott Vacations Worldwide Corp. (B)

     22,140         1,168,106   

Monarch Casino & Resort, Inc. (A) (B)

     65,415         1,313,533   
     Shares      Value  

Hotels, Restaurants & Leisure (continued)

  

   

Ruth’s Hospitality Group, Inc.

     82,843         $  1,177,199   

Wendy’s Co. (A)

     131,830         1,149,558   

Household Durables - 0.4%

     

Ethan Allen Interiors, Inc. (A)

     40,535         1,233,075   

Insurance - 2.5%

     

American Equity Investment Life Holding Co. (A)

     47,110         1,242,762   

Argo Group International Holdings, Ltd.

     24,250         1,127,382   

Aspen Insurance Holdings, Ltd.

     30,180         1,246,736   

Hanover Insurance Group, Inc. (A)

     18,960         1,132,101   

Navigators Group, Inc. (A) (B)

     17,785         1,123,301   

Platinum Underwriters Holdings, Ltd.

     18,345         1,124,182   

Protective Life Corp. (A)

     25,173         1,275,264   

Internet & Catalog Retail - 0.6%

     

NutriSystem, Inc.

     59,345         975,632   

PetMed Express, Inc. (A)

     71,529         1,189,527   

Internet Software & Services - 0.8%

     

IntraLinks Holdings, Inc. (B)

     106,475         1,289,412   

Perion Network, Ltd. (A) (B)

     114,743         1,387,243   

IT Services - 3.9%

     

CACI International, Inc. - Class A (A) (B)

     16,755         1,226,801   

Convergys Corp. (A)

     55,925         1,177,222   

CSG Systems International, Inc. (A)

     41,733         1,226,950   

DST Systems, Inc.

     13,600         1,234,064   

Euronet Worldwide, Inc. (A) (B)

     25,608         1,225,343   

ExlService Holdings, Inc. (A) (B)

     44,460         1,227,985   

Global Cash Access Holdings, Inc. (B)

     120,195         1,200,748   

Lionbridge Technologies, Inc. (B)

     196,250         1,169,650   

ManTech International Corp. - Class A (A)

     40,872         1,223,299   

Sykes Enterprises, Inc. (A) (B)

     53,263         1,161,666   

TeleTech Holdings, Inc. (A) (B)

     44,065         1,054,916   

Life Sciences Tools & Services - 1.4%

     

Affymetrix, Inc. (A) (B)

     139,320         1,193,972   

Albany Molecular Research, Inc. (A) (B)

     105,296         1,061,384   

Charles River Laboratories International, Inc. (B)

     23,925         1,268,982   

ICON PLC (B)

     30,555         1,234,728   

Machinery - 2.2%

     

Altra Industrial Motion Corp. (A)

     38,465         1,316,272   

Briggs & Stratton Corp. (A)

     60,415         1,314,631   

Greenbrier Cos., Inc. (A) (B)

     36,551         1,200,335   

ITT Corp.

     28,300         1,228,786   

NN, Inc.

     58,795         1,187,071   

Wabash National Corp. (A) (B)

     96,380         1,190,293   

Marine - 1.2%

     

Matson, Inc. (A)

     47,110         1,230,042   

Navios Maritime Holdings, Inc.

     132,782         1,481,847   

Seaspan Corp. - Class A

     52,060         1,194,777   

Media - 1.0%

     

Digital Generation, Inc. (A) (B)

     93,074         1,186,693   

Entravision Communications Corp. - Class A (A)

     169,522         1,032,389   

Harte-Hanks, Inc. (A)

     134,150         1,049,053   

Metals & Mining - 1.5%

     

Commercial Metals Co. (A)

     57,984         1,178,815   

Materion Corp.

     38,817         1,197,504   

Steel Dynamics, Inc. (A)

     63,750         1,245,675   

U.S. Steel Corp. (A)

     42,063         1,240,859   

Multi-Utilities - 0.7%

     

Avista Corp. (A)

     41,375         1,166,361   

Vectren Corp.

     30,066         1,067,343   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    95

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Multiline Retail - 0.7%

     

Big Lots, Inc. (A) (B)

     32,128         $  1,037,413   

Fred’s, Inc. - Class A (A)

     64,550         1,195,466   

Office Electronics - 0.4%

     

Zebra Technologies Corp. - Class A (B)

     22,075         1,193,816   

Oil, Gas & Consumable Fuels - 5.4%

     

Alon USA Energy, Inc. (A)

     82,538         1,365,179   

Alpha Natural Resources, Inc. (A) (B)

     174,910         1,248,857   

Arch Coal, Inc. (A)

     283,240         1,260,418   

Cloud Peak Energy, Inc. (A) (B)

     66,140         1,190,520   

Comstock Resources, Inc. (A)

     63,855         1,167,908   

EPL Oil & Gas, Inc. (A) (B)

     39,660         1,130,310   

Gran Tierra Energy, Inc. (A) (B)

     155,855         1,139,300   

Green Plains Renewable Energy, Inc. (A)

     66,331         1,286,158   

Knightsbridge Tankers, Ltd.

     143,900         1,322,441   

Pengrowth Energy Corp. (A)

     185,740         1,151,588   

Renewable Energy Group, Inc. (A) (B)

     100,905         1,156,371   

REX American Resources Corp. - Class A (B)

     24,945         1,115,291   

Stone Energy Corp. (B)

     34,480         1,192,663   

Warren Resources, Inc. (A) (B)

     363,655         1,141,877   

Western Refining, Inc. (A)

     30,640         1,299,443   

Paper & Forest Products - 1.1%

     

Domtar Corp.

     12,868         1,213,967   

Neenah Paper, Inc.

     27,500         1,176,175   

Schweitzer-Mauduit International, Inc.

     22,606         1,163,531   

Personal Products - 0.3%

     

USANA Health Sciences, Inc. (A) (B)

     14,744         1,114,351   

Pharmaceuticals - 1.0%

     

Cadence Pharmaceuticals, Inc. - Class A (A) (B)

     113,710         1,029,075   

Pozen, Inc. (A) (B)

     142,995         1,149,680   

Questcor Pharmaceuticals, Inc. (A)

     19,755         1,075,660   

Professional Services - 2.8%

     

Barrett Business Services, Inc.

     13,610         1,262,191   

CBIZ, Inc. (A) (B)

     130,830         1,193,170   

FTI Consulting, Inc. (A) (B)

     25,380         1,044,133   

ICF International, Inc. (A) (B)

     32,687         1,134,566   

Insperity, Inc.

     33,606         1,214,185   

Kelly Services, Inc. - Class A (A)

     49,443         1,233,109   

Navigant Consulting, Inc. (A) (B)

     61,527         1,181,318   

RPX Corp. - Class A (B)

     69,660         1,177,254   

Real Estate Investment Trusts - 6.3%

     

Agree Realty Corp.

     40,050         1,162,251   

ARMOUR Residential REIT, Inc.

     301,120         1,207,491   

Brandywine Realty Trust (A)

     79,746         1,123,621   

Capstead Mortgage Corp. (A)

     94,070         1,136,366   

CBL & Associates Properties, Inc.

     63,945         1,148,452   

Cedar Realty Trust, Inc. (A)

     193,947         1,214,108   

Corporate Office Properties Trust

     47,737         1,130,890   

DuPont Fabros Technology, Inc. (A)

     49,404         1,220,773   

EPR Properties (A)

     21,130         1,038,751   

Franklin Street Properties Corp.

     89,571         1,070,373   

Home Properties, Inc.

     18,640         999,477   

Inland Real Estate Corp. (A)

     106,489         1,120,264   

Investors Real Estate Trust

     123,407         1,058,832   

Mack-Cali Realty Corp.

     52,103         1,119,172   

Omega Healthcare Investors, Inc.

     33,765         1,006,197   

Piedmont Office Realty Trust, Inc. - Class A (A)

     69,195         1,143,101   

Resource Capital Corp. (A)

     193,577         1,147,912   

Two Harbors Investment Corp.

     125,220         1,162,042   

Winthrop Realty Trust

     90,985         1,005,384   
     Shares      Value  

Road & Rail - 1.7%

     

Arkansas Best Corp. (A)

     33,095         $  1,114,640   

Con-way, Inc. (A)

     26,030         1,033,651   

Marten Transport, Ltd.

     65,408         1,320,588   

USA Truck, Inc. (A) (B)

     81,475         1,090,135   

Werner Enterprises, Inc. (A)

     46,995         1,162,186   

Semiconductors & Semiconductor Equipment - 2.9%

  

Cabot Microelectronics Corp. - Class A (A) (B)

     26,344         1,203,921   

Cirrus Logic, Inc. (A) (B)

     56,045         1,144,999   

Entropic Communications, Inc. (A) (B)

     237,630         1,119,237   

International Rectifier Corp. (A) (B)

     49,945         1,302,066   

Intersil Corp. - Class A

     108,610         1,245,757   

Lattice Semiconductor Corp. (B)

     204,720         1,128,007   

MKS Instruments, Inc. (A)

     39,425         1,180,385   

Silicon Image, Inc. (B)

     225,252         1,385,300   

Software - 0.3%

     

Rovi Corp. (B)

     58,172         1,145,407   

Specialty Retail - 4.5%

     

Aaron’s, Inc. (A)

     39,460         1,160,124   

ANN, Inc. (A) (B)

     33,675         1,231,158   

Big 5 Sporting Goods Corp.

     63,411         1,256,806   

Brown Shoe Co., Inc. (A)

     46,505         1,308,651   

Children’s Place Retail Stores, Inc. (A) (B)

     21,440         1,221,437   

Christopher & Banks Corp. (B)

     139,465         1,191,031   

Destination Maternity Corp. (A)

     37,405         1,117,661   

Guess?, Inc. (A)

     33,466         1,039,788   

Haverty Furniture Cos., Inc.

     40,010         1,252,313   

hhgregg, Inc. (A) (B)

     80,268         1,121,344   

Kirkland’s, Inc. (A) (B)

     45,025         1,065,742   

Office Depot, Inc. (A) (B)

     202,530         1,071,384   

RadioShack Corp. (A) (B)

     397,320         1,033,032   

Textiles, Apparel & Luxury Goods - 0.3%

  

   

Unifi, Inc. (B)

     42,695         1,163,012   

Thrifts & Mortgage Finance - 1.0%

  

   

Home Loan Servicing Solutions, Ltd.

     47,880         1,099,804   

Northfield Bancorp, Inc. (A)

     88,580         1,169,256   

Washington Federal, Inc.

     49,860         1,161,239   

Trading Companies & Distributors - 0.7%

  

   

Applied Industrial Technologies, Inc.

     22,020         1,080,962   

Watsco, Inc.

     12,320         1,183,459   
    

 

 

  

Total Common Stocks (cost $293,047,528)

  

      326,602,627   
    

 

 

  

MASTER LIMITED PARTNERSHIP - 0.4%

  

   

Oil, Gas & Consumable Fuels - 0.4%

     

Alliance Resource Partners, LP

     15,275         1,176,175   
    

 

 

  

Total Master Limited Partnership (cost $1,155,749)

  

      1,176,175   
    

 

 

  

SECURITIES LENDING COLLATERAL - 25.7%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

     85,853,018         85,853,018   
    

 

 

  

Total Securities Lending Collateral
(cost $85,853,018)

   

      85,853,018   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    96

Transamerica Partners Small Core Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Principal      Value  

REPURCHASE AGREEMENT - 1.9%

  

   

State Street Bank & Trust Co.
0.01% (C), dated 12/31/2013, to be repurchased at $6,304,837 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $6,433,857.

     $  6,304,834         $  6,304,834   
    

 

 

  

Total Repurchase Agreement (cost $6,304,834)

  

      6,304,834   
    

 

 

  
    

Total Investment Securities (cost $386,361,129) (D)

  

      419,936,654   

Other Assets and Liabilities - Net  - (25.7)%

  

      (85,755,050 ) 
    

 

 

  

Net Assets - 100.0%

        $  334,181,604   
    

 

 

  
 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

Common Stocks

   $ 326,602,627      $ —      $ —      $ 326,602,627   

Master Limited Partnership

     1,176,175        —        —        1,176,175   

Securities Lending Collateral

     85,853,018        —        —        85,853,018   

Repurchase Agreement

     —        6,304,834        —        6,304,834   

Total Investment Securities

   $ 413,631,820      $ 6,304,834      $ —      $ 419,936,654   

Level 3 Rollforward - Investment Securities

 

Securities   Beginning
Balance at
December 31,
2012		     Purchases     Sales (F)     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
December 31,
2013 (H)		     Net Change in
Unrealized
Appreciation
(Depreciation)
on Investments
Held at
December 31, 2013		  
Common Stocks   $ —      $ —      $ 0      $ —      $ —      $ —      $ 0      $ —      $ —      $ —   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $83,459,379. 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 December 31, 2013.
(D) Aggregate cost for federal income tax purposes is $386,674,539. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $40,107,147 and $6,845,032, respectively. Net unrealized appreciation for tax purposes is $33,262,115.
(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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.
(F)  Sales include all sales of securities, maturities, paydowns and securities tendered in a corporate action.
(G) Transferred into Level 3 because of unavailability of observable inputs.
(H) Level 3 securities were not considered significant to the portfolio.

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    97

Transamerica Partners Small Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

COMMON STOCKS - 98.0%

     

Aerospace & Defense - 1.1%

     

Triumph Group, Inc. (A)

     10,340         $  786,564   

Auto Components - 0.9%

     

Dorman Products, Inc. (A) (B)

     11,562         648,281   

Commercial Banks - 12.0%

     

Bank of the Ozarks, Inc. (A)

     27,713         1,568,279   

Home Bancshares, Inc. (A)

     23,270         869,135   

Iberiabank Corp. (A)

     25,530         1,604,560   

PrivateBancorp, Inc. - Class A (A)

     82,616         2,390,081   

SVB Financial Group (B)

     8,640         905,990   

Texas Capital Bancshares, Inc. (A) (B)

     23,480         1,460,456   

Commercial Services & Supplies - 2.9%

     

Healthcare Services Group Inc. (A)

     75,260         2,135,126   

Communications Equipment - 2.4%

     

Aruba Networks, Inc. (A) (B)

     62,330         1,115,707   

Procera Networks, Inc. (A) (B)

     41,476         622,970   

Diversified Financial Services - 1.9%

     

MarketAxess Holdings, Inc. (A)

     20,460         1,368,160   

Electrical Equipment - 3.0%

     

EnerSys, Inc. (A)

     31,660         2,219,049   

Electronic Equipment & Instruments - 1.8%

  

   

InvenSense, Inc. - Class A (A) (B)

     63,360         1,316,621   

Energy Equipment & Services - 1.2%

     

Pacific Drilling SA (B)

     78,379         898,223   

Food Products - 2.5%

     

Annie’s, Inc. (A) (B)

     14,810         637,422   

TreeHouse Foods, Inc. (A) (B)

     17,468         1,203,895   

Health Care Equipment & Supplies - 2.4%

     

Cantel Medical Corp. (A)

     28,401         963,078   

Neogen Corp. (A) (B)

     17,517         800,527   

Health Care Providers & Services - 4.5%

     

Air Methods Corp. (A) (B)

     28,130         1,640,823   

Centene Corp. (B)

     27,560         1,624,662   

Health Care Technology - 2.2%

     

Medidata Solutions, Inc. (A) (B)

     26,660         1,614,796   

Hotels, Restaurants & Leisure - 5.7%

     

Krispy Kreme Doughnuts, Inc. (A) (B)

     72,480         1,398,139   

Red Robin Gourmet Burgers, Inc. (A) (B)

     19,140         1,407,555   

Sonic Corp. (A) (B)

     67,140         1,355,557   

Household Durables - 0.7%

     

Meritage Homes Corp. (B)

     9,829         471,694   

Insurance - 1.5%

     

Hilltop Holdings, Inc. (B)

     47,850         1,106,771   

Internet Software & Services - 4.7%

     

Envestnet, Inc. (B)

     25,390         1,023,217   

OpenTable, Inc. (A) (B)

     15,229         1,208,726   

SPS Commerce, Inc. (A) (B)

     18,830         1,229,599   

IT Services - 3.8%

     

MAXIMUS, Inc. - Class A

     62,380         2,744,096   

Life Sciences Tools & Services - 3.4%

     

ICON PLC (B)

     29,480         1,191,287   

PAREXEL International Corp. (B)

     28,790         1,300,732   

Machinery - 1.5%

     

Chart Industries, Inc. (A) (B)

     11,100         1,061,604   

Oil, Gas & Consumable Fuels - 4.6%

     

Gulfport Energy Corp. (A) (B)

     19,060         1,203,639   

Matador Resources Co. (A) (B)

     52,680         981,955   

PDC Energy, Inc. (A) (B)

     21,540         1,146,359   
     Shares      Value  

Personal Products - 1.3%

     

Inter Parfums, Inc. (A)

     26,530         $  950,039   

Pharmaceuticals - 5.0%

     

Akorn, Inc. - Class A (A) (B)

     73,490         1,810,059   

Lannett Co., Inc. (A) (B)

     13,548         448,439   

Prestige Brands Holdings, Inc. (A) (B)

     39,810         1,425,198   

Professional Services - 2.9%

     

Advisory Board Co. (A) (B)

     32,840         2,090,923   

Huron Consulting Group, Inc. (B)

     384         24,084   

Semiconductors & Semiconductor Equipment - 3.5%

  

   

Applied Micro Circuits Corp. (A) (B)

     94,779         1,268,143   

Ceva, Inc. (A) (B)

     46,130         702,099   

Inphi Corp. (A) (B)

     45,929         592,484   

Software - 6.2%

     

Ellie Mae, Inc. (A) (B)

     45,500         1,222,585   

Imperva, Inc. (A) (B)

     25,530         1,228,759   

QLIK Technologies, Inc. (A) (B)

     33,190         883,850   

Synchronoss Technologies, Inc. (A) (B)

     39,090         1,214,526   

Specialty Retail - 7.0%

     

Asbury Automotive Group, Inc. (B)

     33,116         1,779,654   

Express, Inc. (A) (B)

     48,510         905,682   

Group 1 Automotive, Inc. (A)

     17,484         1,241,713   

Pier 1 Imports, Inc. (A)

     50,339         1,161,824   

Textiles, Apparel & Luxury Goods - 4.8%

  

   

Deckers Outdoor Corp. (A) (B)

     22,990         1,941,736   

G-III Apparel Group, Ltd. (B)

     5,689         419,791   

Steven Madden, Ltd. - Class B (B)

     31,808         1,163,855   

Trading Companies & Distributors - 1.5%

  

   

Beacon Roofing Supply, Inc. (A) (B)

     27,400         1,103,672   

Transportation Infrastructure - 1.1%

  

   

WESCO Aircraft Holdings, Inc. (A) (B)

     36,760         805,779   
    

 

 

  

Total Common Stocks (cost $54,821,746)

  

      71,610,229   
    

 

 

  

SECURITIES LENDING COLLATERAL - 25.6%

  

   

State Street Navigator Securities Lending Trust - Prime Portfolio, 0.14% (C)

     18,728,818         18,728,818   
    

 

 

  

Total Securities Lending Collateral (cost $18,728,818)

   

      18,728,818   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 1.8%

  

   

State Street Bank & Trust Co.
0.01% (C), dated 12/31/2013, to be repurchased at $1,271,412 on 01/02/2014. Collateralized by a U.S. Government Agency Obligation, 3.50%, due 09/15/2040, and with a value of $1,298,253.

     $  1,271,411         1,271,411   
    

 

 

  

Total Repurchase Agreement (cost $1,271,411)

  

      1,271,411   
    

 

 

  
    

Total Investment Securities (cost $74,821,975) (D)

  

      91,610,458   

Other Assets and Liabilities - Net  - (25.4)%

  

      (18,546,077 ) 
    

 

 

  

Net Assets - 100.0%

        $  73,064,381   
    

 

 

  
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    98

Transamerica Partners Small Growth Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

VALUATION SUMMARY: (E)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                               

Investment Securities

                                

Common Stocks

   $ 71,610,229      $ —      $ —      $ 71,610,229   

Securities Lending Collateral

     18,728,818        —        —        18,728,818   

Repurchase Agreement

     —        1,271,411        —        1,271,411   

Total Investment Securities

   $ 90,339,047      $ 1,271,411      $ —      $ 91,610,458   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A) All or a portion of this security is on loan. The value of all securities on loan is $18,299,164. 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 December 31, 2013.
(D) Aggregate cost for federal income tax purposes is $74,982,657. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $17,267,488 and $639,687, respectively. Net unrealized appreciation for tax purposes is $16,627,801.
(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 December 31, 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 Portfolios   Annual Report 2013

Page    99

Transamerica Partners International Equity Portfolio

 

 

SCHEDULE OF INVESTMENTS

At December 31, 2013

 

     Shares      Value  

CONVERTIBLE PREFERRED STOCK - 1.5%

  

   

Canada - 1.5%

     

Suncor Energy, Inc., 1.95% (A)

     261,000         $  9,150,049   
    

 

 

  

Total Convertible Preferred Stock (cost $8,876,694)

  

      9,150,049   
    

 

 

  

PREFERRED STOCKS - 4.0%

     

Brazil - 1.2%

     

Investimentos Itau SA, 3.72% (A)

     1,935,700         7,312,918   

Korea, Republic of - 2.4%

     

Samsung Electronics Co., Ltd., 0.81% (A)

     15,086         14,508,332   

Russian Federation - 0.4%

     

Sberbank of Russia, 4.56% (A)

     1,198,313         2,756,120   
    

 

 

  

Total Preferred Stocks (cost $25,229,596)

  

      24,577,370   
    

 

 

  

COMMON STOCKS - 89.4%

     

Australia - 2.4%

     

APA Group

     901,381         4,829,060   

Asciano, Ltd.

     1,061,213         5,457,930   

Challenger Financial Services Group, Ltd.

     767,839         4,250,742   

Canada - 2.3%

     

Fairfax Financial Holdings, Ltd.

     15,100         6,028,770   

Horizon North Logistics, Inc.

     327,700         3,069,537   

Ithaca Energy, Inc. (B)

     1,187,600         2,985,071   

Newalta Corp.

     124,200         2,036,775   

Denmark - 2.2%

     

Carlsberg A/S - Class B

     71,177         7,875,999   

Danske Bank A/S - Class R (B)

     239,753         5,507,524   

Finland - 0.9%

     

UPM-Kymmene OYJ

     318,810         5,407,044   

France - 7.8%

     

Arkema SA

     53,895         6,286,612   

Cie Generale des Etablissements Michelin - Class B

     50,738         5,392,068   

Rexel SA

     220,124         5,776,376   

Sanofi

     89,001         9,442,467   

Total SA

     85,140         5,215,667   

Veolia Environnement SA

     227,570         3,711,420   

Vinci SA

     91,256         5,990,808   

Vivendi SA

     223,003         5,876,468   

Germany - 5.0%

     

Adidas AG

     32,641         4,162,309   

Allianz SE - Class A

     48,902         8,798,724   

Bayer AG

     29,031         4,076,257   

Metro AG

     112,824         5,469,687   

Siemens AG - Class A

     57,487         7,882,533   

Greece - 1.0%

     

Piraeus Bank SA (B)

     2,880,509         6,062,953   

Hong Kong - 9.4%

     

Cheung Kong Holdings, Ltd.

     566,000         8,941,491   

China Mobile, Ltd.

     836,500         8,657,019   

First Pacific Co., Ltd.

     4,860,000         5,527,926   

Fosun International, Ltd.

     6,183,000         6,123,756   

Guangdong Investment, Ltd.

     5,484,000         5,360,731   

HSBC Holdings PLC

     691,600         7,505,273   

Newocean Energy Holdings, Ltd.

     2,960,000         2,416,311   

Shenzhen Expressway Co., Ltd.

     4,042,000         1,803,557   

Sinotrans, Ltd.

     8,250,000         3,117,303   

SJM Holdings, Ltd.

     2,494,000         8,330,165   
     Shares      Value  

Ireland - 1.5%

     

Ryanair Holdings PLC - ADR (B)

     100,800         $  4,730,544   

Smurfit Kappa Group PLC - Class B

     172,115         4,228,864   

Israel - 0.9%

     

Israel Corp., Ltd. (B)

     10,837         5,702,534   

Italy - 2.9%

     

ENI SpA - Class B

     392,315         9,479,762   

Pirelli & C. SpA

     191,173         3,307,316   

Prysmian SpA

     189,638         4,882,620   

Japan - 16.1%

     

Aisin Seiki Co., Ltd.

     142,700         5,801,621   

Daito Trust Construction Co., Ltd.

     31,800         2,972,917   

Denki Kagaku Kogyo KK

     963,000         3,980,351   

FUJIFILM Holdings Corp.

     279,600         7,936,455   

Fukuoka Financial Group, Inc. - Class A

     953,000         4,183,142   

Hitachi, Ltd.

     1,363,000         10,334,472   

Japan Airlines Co., Ltd.

     104,200         5,140,318   

Kirin Holdings Co., Ltd.

     354,000         5,098,116   

Komatsu, Ltd.

     149,100         3,061,213   

Kuraray Co., Ltd.

     383,400         4,576,566   

Mitsubishi Corp.

     318,900         6,122,213   

MS&AD Insurance Group Holdings

     206,200         5,542,443   

Nippon Telegraph & Telephone Corp.

     143,300         7,718,195   

Nitori Holdings Co., Ltd.

     56,650         5,363,460   

ORIX Corp.

     433,300         7,613,887   

Resona Holdings, Inc.

     1,074,000         5,480,047   

Sony Corp.

     216,500         3,732,092   

USS Co., Ltd.

     304,400         4,175,300   

Korea, Republic of - 0.5%

     

Kangwon Land, Inc.

     98,170         2,882,518   

Malaysia - 1.1%

     

DRB-Hicom Bhd

     2,518,800         2,168,529   

Genting Bhd

     1,422,000         4,454,196   

Mexico - 0.2%

     

Grupo Aeroportuario del Centro Norte Sab de CV - Class B (B)

     303,420         1,016,939   

Netherlands - 4.4%

  

Delta Lloyd NV

     241,334         5,989,335   

Heineken Holding NV - Class A

     58,944         3,728,888   

Koninklijke Boskalis Westminster NV

     88,594         4,680,752   

Koninklijke Philips NV

     264,771         9,705,316   

Wolters Kluwer NV

     106,207         3,031,029   

Philippines - 0.7%

     

LT Group, Inc.

     12,230,300         4,271,776   

Russian Federation - 1.0%

     

Lukoil OAO - ADR

     96,180         6,070,882   

Singapore - 0.8%

     

Noble Group, Ltd.

     5,945,000         5,040,731   

South Africa - 0.8%

     

Kumba Iron Ore, Ltd.

     122,241         5,167,566   

Spain - 0.9%

     

Amadeus IT Holding SA - Class A

     131,487         5,626,477   

Sweden - 3.5%

     

Investor AB - Class B

     231,981         7,994,884   

Svenska Cellulosa AB SCA - Class B

     190,997         5,884,207   

Telefonaktiebolaget LM Ericsson - Class B

     618,900         7,556,452   

Switzerland - 4.9%

     

Galenica AG

     2,939         2,958,689   

GAM Holding AG (B)

     267,777         5,213,723   

Nestle SA

     72,664         5,325,546   
 

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    100

Transamerica Partners International Equity Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

     Shares      Value  

Switzerland (continued)

     

Novartis AG

     137,315         $  11,005,702   

UBS AG - Class A (B)

     288,574         5,525,424   

Thailand - 0.4%

     

Bangkok Bank PCL

     511,900         2,788,358   

Turkey - 0.7%

     

Tofas Turk Otomobil Fabrikasi AS

     658,035         4,103,150   

United Kingdom - 15.1%

     

Admiral Group PLC

     177,839         3,857,851   

BHP Billiton PLC - ADR

     122,800         7,628,336   

BP PLC - ADR

     148,700         7,228,307   

British Sky Broadcasting Group PLC

     375,260         5,244,715   

Etalon Group, Ltd. - GDR, Reg S (B)

     339,986         1,801,926   

IG Group Holdings PLC

     314,000         3,203,005   

Imperial Tobacco Group PLC

     125,294         4,850,896   

Inchcape PLC

     593,788         6,042,275   

Johnson Matthey PLC

     56,832         3,086,839   

Kingfisher PLC

     888,320         5,658,989   

National Grid PLC - Class B

     484,284         6,319,366   

Resolution, Ltd.

     836,853         4,905,685   

Rexam PLC

     780,005         6,852,199   

Sistema JSFC - GDR, Reg S

     150,509         4,834,349   

TMK OAO - GDR, Reg S

     396,907         4,679,534   

Unilever PLC

     240,958         9,903,537   

Vodafone Group PLC

     1,584,723         6,219,406   

United States - 2.0%

     

Flextronics International, Ltd. (B)

     816,700         6,345,759   

Noble Corp. plc

     160,800         6,025,176   
    

 

 

  

Total Common Stocks (cost $514,708,959)

  

      547,420,000   
    

 

 

  
     Principal      Value  

REPURCHASE AGREEMENT - 6.4%

  

   

State Street Bank & Trust Co.
0.01% (A), dated 12/31/2013, to be repurchased at $38,992,735 on 01/02/2014. Collateralized by U.S. Government Agency Obligations, 3.50%, due 09/15/2040 - 10/15/2040, and with a total value of $39,776,347.

     $  38,992,714         $  38,992,714   
    

 

 

  

Total Repurchase Agreement (cost $38,992,714)

  

      38,992,714   
    

 

 

  
    

Total Investment Securities (cost $587,807,963) (C)

  

      620,140,133   

Other Assets and Liabilities - Net  - (1.3)%

  

      (8,034,819 ) 
    

 

 

  

Net Assets - 100.0%

        $  612,105,314   
    

 

 

  
 

 

INVESTMENTS BY INDUSTRY (unaudited):   Percentage of
Total Investment
Securities		        Value  

Oil, Gas & Consumable Fuels

     6.9 %               $   42,546,049   

Commercial Banks

     6.7           41,596,335   

Insurance

     5.7           35,122,808   

Pharmaceuticals

     4.4           27,483,115   

Electronic Equipment & Instruments

     4.0           24,616,686   

Chemicals

     3.8           23,632,902   

Diversified Financial Services

     3.4           20,976,557   

Beverages

     3.4           20,974,779   

Wireless Telecommunication Services

     3.2           19,710,774   

Metals & Mining

     3.1           18,919,658   

Industrial Conglomerates

     2.8           17,587,849   

Trading Companies & Distributors

     2.7           16,939,320   

Hotels, Restaurants & Leisure

     2.5           15,666,879   

Food Products

     2.5           15,229,083   

Specialty Retail

     2.4           15,197,749   

Semiconductors & Semiconductor Equipment

     2.3           14,508,332   

Auto Components

     2.3           14,501,005   

Media

     2.3           14,152,212   

Real Estate Management & Development

     2.2           13,716,334   

Containers & Packaging

     1.8           11,081,063   

Capital Markets

     1.7           10,739,147   

Energy Equipment & Services

     1.7           10,704,710   

Construction & Engineering

     1.7           10,671,560   

Multi-Utilities

     1.6           10,030,786   

Airlines

     1.6           9,870,862   

Diversified Telecommunication Services

     1.2           7,718,195   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    101

Transamerica Partners International Equity Portfolio

 

 

SCHEDULE OF INVESTMENTS (continued)

At December 31, 2013

 

INVESTMENTS BY INDUSTRY (unaudited)
(continued):		   Percentage of
Total Investment
Securities		        Value  

Consumer Finance

     1.2 %               $ 7,613,887   

Communications Equipment

     1.2           7,556,452   

Automobiles

     1.0           6,271,679   

Distributors

     1.0           6,042,275   

Transportation Infrastructure

     1.0           5,937,799   

Household Products

     0.9           5,884,207   

IT Services

     0.9           5,626,477   

Food & Staples Retailing

     0.9           5,469,687   

Road & Rail

     0.9           5,457,930   

Paper & Forest Products

     0.9           5,407,044   

Water Utilities

     0.9           5,360,731   

Commercial Services & Supplies

     0.8           5,106,312   

Electrical Equipment

     0.8           4,882,620   

Tobacco

     0.8           4,850,896   

Gas Utilities

     0.8           4,829,060   

Textiles, Apparel & Luxury Goods

     0.7           4,162,309   

Household Durables

     0.6           3,732,092   

Machinery

     0.5           3,061,213   
 

 

 

       

 

 

  

Investment Securities, at Value

     93.7           581,147,419   

Short-Term Investments

     6.3           38,992,714   
 

 

 

       

 

 

  

Total Investments

     100.0 %               $   620,140,133   
 

 

 

       

 

 

  

VALUATION SUMMARY: (D)

 

     Level 1
Quoted Prices		     Level 2
Other
Significant
Observable
Inputs		     Level 3
Significant
Unobservable
Inputs		     Value at
December 31, 2013		  

ASSETS

                                

Investment Securities

                                

Convertible Preferred Stock

   $ 9,150,049      $ —      $ —      $ 9,150,049   

Preferred Stocks

     10,069,038        14,508,332        —        24,577,370   

Common Stocks

     64,481,905        482,938,095        —        547,420,000   

Repurchase Agreement

     —        38,992,714        —        38,992,714   

Total Investment Securities

   $   83,700,992      $   536,439,141      $             —      $   620,140,133   

NOTES TO SCHEDULE OF INVESTMENTS:

 

(A)  Rate shown reflects the yield at December 31, 2013.
(B)  Non-income producing security.
(C)  Aggregate cost for federal income tax purposes is $589,005,312. Aggregate gross unrealized appreciation and depreciation for all securities in which there is an excess of value over tax cost were $33,778,732 and $2,643,911, respectively. Net unrealized appreciation for tax purposes is $31,134,821.
(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 December 31, 2013. See the notes to the financial statements for more information regarding pricing inputs and valuation techniques.

DEFINITIONS:

 

ADR    American Depositary Receipt
GDR    Global Depositary Receipt
OAO    Otkrytoe Aktsionernoe Obschestvo (Open Joint Stock Corporation)
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.

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    102

 

STATEMENTS OF ASSETS AND LIABILITIES

At December 31, 2013

 

     Money Market     High Quality
Bond 		    Inflation-
Protected
Securities 		    Core Bond     High Yield
Bond 		 

Assets:

                    

Investment securities, at value

   $ 871,446,425      $ 389,287,943      $ 280,218,784      $ 1,580,128,316      $ 818,909,206   

Repurchase agreements, at value

     115,456,362        16,903,705        —        —        28,643,501   

Cash on deposit with broker

     —        —        475,000        855,000        —   

Foreign currency, at value

     —        —        12,646        806,219        —   

Cash on deposit with custodian

     —        —        —        1,717,000        —   

Cash

     —        1,020        —        —        202,007   

Unrealized appreciation on forward foreign currency contracts

     —        —        300,708        2,402        —   

Unrealized appreciation on OTC swap agreements

     —        —        —        480,091        —   

Premium paid on OTC swap agreements

     —        —        6,156        622,773        —   

Receivables:

                    

Investment securities sold

     —        —        2,600,142        270,066,333        691,635   

Interest

     226,262        1,647,576        1,250,043        7,560,165        13,538,885   

Dividends

     —        —        —        —        38,325   

Securities lending income (net)

     —        1,868        388        25,277        —   

Variation margin receivable on derivative financial instruments

     —        —        104,540        —        —   

Other

     —        —        —        —        91,350   

Prepaid expenses

     11,831        5,411        3,947        17,663        10,437   

Total assets

     987,140,880        407,847,523        284,972,354        1,862,281,239        862,125,346   

Liabilities:

                    

Due to custodian

     —        —        —        17,737        —   

Cash deposit due to broker

     —        —        500,000        100,000        —   

Premium received on OTC swap agreements

     —        —        —        487,393        —   

Accounts payable and accrued liabilities:

                    

Investment securities purchased

     —        —        4,929,225        344,735,825        2,666,750   

When-issued securities purchased

     —        —        —        —        2,076,005   

Advisory fees

     213,644        122,797        80,680        414,563        411,118   

Trustees and CCO fees

     173        78        57        245        149   

Audit and tax fees

     18,137        20,085        21,043        24,506        21,822   

Custody and accounting fees

     26,778        10,854        19,945        57,064        25,608   

Legal fees

     9,362        4,461        4,544        19,538        8,323   

Printing and shareholder reports fees

     4,156        1,940        1,481        6,537        3,523   

Variation margin payable on derivative financial instruments

     —        —        —        297,853        —   

Interest from TBA short commitments

     —        —        —        170,281        —   

Other

     6,668        2,953        2,230        9,732        5,747   

Collateral for securities on loan

     —        7,826,473        3,295,294        80,612,269        —   

Written options and swaptions, at value

     —        —        495,177        154,745        —   

TBA short commitments, at value

     —        —        —        98,292,806        —   

Unrealized depreciation on forward foreign currency contracts

     —        —        679,351        383,440        —   

Unrealized depreciation on OTC swap agreements

     —        —        155,603        285,841        —   

Total liabilities

     278,918        7,989,641        10,184,630        526,070,375        5,219,045   

Net assets

   $ 986,861,962      $ 399,857,882      $ 274,787,724      $ 1,336,210,864      $ 856,906,301   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment securities, at cost

   $     871,446,425      $     390,151,496      $     288,737,094      $     1,585,919,133      $     789,482,164   

Repurchase agreements, at cost

   $ 115,456,362      $ 16,903,705      $ —      $ —      $ 28,643,501   

Foreign currency, at cost

   $ —      $ —      $ 12,615      $ 775,829      $ —   

Securities loaned, at value

   $ —      $ 7,665,613      $ 3,229,515      $ 78,989,620      $ —   

Premium received on written option and swaptions

   $ —      $ —      $ 588,150      $ 140,355      $ —   

Proceeds received from TBA short commitments

   $ —      $ —      $ —      $ 98,595,703      $ —   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    103

 

STATEMENTS OF ASSETS AND LIABILITIES (continued)

At December 31, 2013

 

         
    
Balanced 		    Large Value     Large Core     Large Growth     Mid Value  

Assets:

                    

Investment securities, at value

   $ 135,519,968      $ 988,484,608      $ 326,099,044      $ 993,213,433      $ 1,017,603,299   

Repurchase agreements, at value

     628,771        10,808,881        3,929,330        1,844,517        22,506,114   

Cash on deposit with broker

     31,000        —        —        —        —   

Foreign currency, at value

     4,834        —        —        —        —   

Cash

     327        50,163        5,593        —        38,632   

Unrealized appreciation on forward foreign currency contracts

     82        —        —        —        —   

Receivables:

                    

Investment securities sold

     7,504,214        496,159        342,019        6,514,118        319,754   

Interest

     251,517        3        1        —        6   

Dividends

     99,617        969,459        302,057        520,655        884,619   

Dividend reclaims

     1        13,117        1,338        88,016        20,190   

Securities lending income (net)

     1,105        26,153        7,159        20,833        14,312   

Prepaid expenses

     1,412        10,964        3,444        10,812        11,276   

Total assets

     144,042,848            1,000,859,507            330,689,985            1,002,212,384            1,041,398,202   

Liabilities:

                    

Due to custodian

     —        —        —        38,387        —   

Accounts payable and accrued liabilities:

                    

Investment securities purchased

     12,270,144        —        —        4,319,621        4,333,195   

Advisory fees

     32,495        357,861        158,931        470,847        559,612   

Trustees and CCO fees

     23        171        79        197        229   

Audit and tax fees

     22,419        19,236        20,399        24,470        17,146   

Custody and accounting fees

     25,617        18,718        7,995        31,568        19,258   

Legal fees

     1,120        8,837        2,706        8,705        14,758   

Printing and shareholder reports fees

     491        3,877        1,155        4,154        3,724   

Variation margin payable on derivative financial instruments

     8,287        —        —        —        —   

Interest from TBA short commitments

     3,570        —        —        —        —   

Other

     1,574        6,382        4,027        6,182        6,913   

Collateral for securities on loan

     6,288,574        76,167,901        20,759,614        55,290,020        61,362,203   

Written options and swaptions, at value

     3,738        —        —        —        —   

TBA short commitments, at value

     2,106,103        —        —        —        —   

Unrealized depreciation on forward foreign currency contracts

     8,378        —        —        —        —   

Total liabilities

     20,772,533        76,582,983        20,954,906        60,194,151        66,317,038   

Net assets

   $     123,270,315      $ 924,276,524      $ 309,735,079      $ 942,018,233      $ 975,081,164   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment securities, at cost

   $ 121,300,054      $ 803,998,506      $ 266,873,762      $ 717,544,735      $ 770,342,141   

Repurchase agreements, at cost

   $ 628,771      $ 10,808,881      $ 3,929,330      $ 1,844,517      $ 22,506,114   

Foreign currency, at cost

   $ 4,828      $ —      $ —      $ —      $ —   

Securities loaned, at value

   $ 6,150,753      $ 74,521,042      $ 20,310,565      $ 54,075,659      $ 60,010,434   

Premium received on written option and swaptions

   $ 1,680      $ —      $ —      $ —      $ —   

Proceeds received from TBA short commitments

   $ 2,113,355      $ —      $ —      $ —      $ —   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    104

 

STATEMENTS OF ASSETS AND LIABILITIES (continued)

At December 31, 2013

 

     Mid Growth     Small Value     Small Core     Small Growth         
International
Equity 		 

Assets:

                    

Investment securities, at value

   $ 186,403,692      $ 102,308,315      $ 413,631,820      $ 90,339,047      $ 581,147,419   

Repurchase agreements, at value

     2,076,218        1,094,007        6,304,834        1,271,411        38,992,714   

Receivables:

                    

Investment securities sold

     —        —        —        472,322        71,582   

Interest

     1        —        2        —        11   

Dividends

     83,884        74,016        325,025        11,864        270,230   

Dividend reclaims

     —        —        —        —        2,263,202   

Securities lending income (net)

     5,412        2,938        36,350        4,476        6,929   

Prepaid expenses

     2,219        978        3,878        845        7,428   

Total assets

         188,571,426            103,480,254            420,301,909            92,099,965            622,759,515   

Liabilities:

                    

Due to custodian

     —        —        —        —        9,921,473   

Foreign currency, at value

     —        —        —        —        55,728   

Accounts payable and accrued liabilities:

                    

Investment securities purchased

     —        —        —        233,232        183,356   

Advisory fees

     85,957        53,343        230,809        46,757        392,979   

Trustees and CCO fees

     31        18        60        23        109   

Audit and tax fees

     18,326        18,241        18,064        18,320        23,541   

Custody and accounting fees

     5,313        3,179        9,633        4,563        58,661   

Legal fees

     1,877        757        4,016        2,888        9,955   

Printing and shareholder reports fees

     949        387        1,537        372        2,910   

Other

     1,571        1,103        3,168        611        5,489   

Collateral for securities on loan

     38,314,340        21,105,684        85,853,018        18,728,818        —   

Total liabilities

     38,428,364        21,182,712        86,120,305        19,035,584        10,654,201   

Net assets

   $ 150,143,062      $ 82,297,542      $ 334,181,604      $ 73,064,381      $ 612,105,314   
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Investment securities, at cost

   $ 165,883,619      $ 74,034,634      $ 380,056,295      $ 73,550,564      $ 548,815,249   

Repurchase agreements, at cost

   $ 2,076,218      $ 1,094,007      $ 6,304,834      $ 1,271,411      $ 38,992,714   

Foreign currency, at cost

   $ —      $ —      $ —      $ —      $ 54,202   

Securities loaned, at value

   $ 37,487,131      $ 20,590,104      $ 83,459,379      $ 18,299,164      $ —   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    105

 

STATEMENTS OF OPERATIONS

For the year ended December 31, 2013

 

     Money
Market 		    High Quality
Bond 		    Inflation-
Protected
Securities 		    Core Bond     High Yield
Bond		  

Investment Income:

                    

Dividend income

   $ —      $ —      $ —      $ 237,909      $ 619,470   

Interest income

     1,995,578        9,203,536        2,743,904        42,092,426        57,503,200   

Securities lending income (net)

     —        40,727        19,345        197,254        —   

Withholding taxes on foreign income

     —        (1,179 )      —        (29,882 )      (98 ) 

Total investment income

     1,995,578        9,243,084        2,763,249        42,497,707        58,122,572   
           

Expenses:

                    

Advisory

     2,320,573        1,469,748        1,101,940        4,900,783        4,596,773   

Trustees and CCO

     19,638        8,845        6,829        29,917        17,629   

Audit and tax

     16,268        19,555        21,484        25,211        21,155   

Custody and accounting

     151,127        63,906        124,352        352,020        165,415   

Legal

     60,922        26,890        14,248        93,411        51,595   

Printing and shareholder reports

     55,666        25,463        19,251        84,952        49,841   

Other

     26,054        9,658        7,595        32,305        18,925   

Total expenses

         2,650,248        1,624,065        1,295,699        5,518,599        4,921,333   

Expenses (waived/reimbursed)

     —        —        (36,338 )      —        —   

Net expenses

     2,650,248        1,624,065        1,259,361        5,518,599        4,921,333   

Net investment income (loss)

     (654,670 )      7,619,019        1,503,888        36,979,108        53,201,239   
           

Net realized gain (loss) on transactions from:

                    

Investment securities

     20,771        578,440        1,067,958        (6,772,905 )      978,231   

Futures contracts

     —        —        1,511,362        (5,754,334 )      —   

Written options and swaptions

     —        —        157,952        (741,605 )      —   

Swap agreements

     —        —        589,578        15,571,218        —   

Foreign currency transactions

     —        —        113,751        (201,645 )      —   

Net realized gain (loss)

     20,771        578,440        3,440,601        2,100,729        978,231   
           

Net change in unrealized appreciation (depreciation) on:

                    

Investment securities

     —        (6,501,402 )      (30,912,716 )      (51,077,788 )      5,528,464   

Futures contracts

     —        —        (323,022 )      (1,362,923 )      —   

Written options and swaptions

     —        —        48,271        (47,537 )      —   

Swap agreements

     —        —        (496,288 )      (1,039,438 )      —   

Translation of assets and liabilities denominated in foreign currencies

     —        —        (312,336 )      (227,454 )      —   

TBA short commitments

     —        —        —        535,685        —   

Net change in unrealized appreciation (depreciation)

     —            (6,501,402 )      (31,996,091 )      (53,219,455 )      5,528,464   

Net realized and change in unrealized gain (loss)

     20,771        (5,922,962 )      (28,555,490 )      (51,118,726 )      6,506,695   

Net increase (decrease) in net assets resulting from operations

   $ (633,899 )    $ 1,696,057      $     (27,051,602 )    $     (14,139,618 )    $     59,707,934   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    106

 

STATEMENTS OF OPERATIONS (continued)

For the year ended December 31, 2013

 

 

         
    
Balanced 		    Large Value     Large Core     Large Growth     Mid Value  

Investment Income:

                    

Dividend income

   $ 1,358,387      $ 18,881,062      $ 5,654,828      $ 10,520,768      $ 14,447,330   

Interest income

     853,255        2,484        836        1,056        6,551   

Securities lending income (net)

     13,950        155,139        51,504        195,400        136,548   

Withholding taxes on foreign income

     (969 )      (36,032 )      (10,464 )      (101,009 )      (43,971 ) 

Total investment income

     2,224,623        19,002,653        5,696,704        10,616,215        14,546,458   
           

Expenses:

                    

Advisory

     515,645        3,930,716        1,667,213        5,413,579        5,967,769   

Trustees and CCO

     2,412        18,274        5,815        18,320        18,565   

Audit and tax

     23,179        18,048        19,127        23,369        16,582   

Custody and accounting

     159,855        111,547        42,759        184,971        110,359   

Legal

     7,504        54,544        17,129        54,028        55,684   

Printing and shareholder reports

     6,888        53,187        16,744        53,531        54,158   

Other

     2,744        19,872        6,165        20,227        19,585   

Total expenses

     718,227        4,206,188        1,774,952        5,768,025        6,242,702   

Expenses (waived/reimbursed)

     (145,288 )      —        —        (92,499 )      (7,720 ) 

Net expenses

     572,939        4,206,188        1,774,952        5,675,526        6,234,982   

Net investment income (loss)

     1,651,684        14,796,465        3,921,752        4,940,689        8,311,476   
           

Net realized gain (loss) on transactions from:

                    

Investment securities

     8,031,717        177,405,771        58,081,271        96,593,710        100,682,194   

Futures contracts

     132,771        —        —        —        —   

Written options and swaptions

     (16,285 )      —        —        —        —   

Foreign currency transactions

     4,419        —        —        (1,898 )      12,734   

Net realized gain (loss)

     8,152,622        177,405,771        58,081,271        96,591,812        100,694,928   
           

Net change in unrealized appreciation (depreciation) on:

                    

Investment securities

     9,414,539        86,365,970        25,059,363        163,688,767        142,457,537   

Futures contracts

     14,528        —        —        —        —   

Written options and swaptions

     (2,057 )      —        —        —        —   

Translation of assets and liabilities denominated in foreign currencies

     (2,456 )      —        —        1,458        (37 ) 

TBA short commitments

     14,100        —        —        —        —   

Net change in unrealized appreciation (depreciation)

     9,438,654        86,365,970        25,059,363        163,690,225        142,457,500   

Net realized and change in unrealized gain (loss)

     17,591,276        263,771,741        83,140,634        260,282,037        243,152,428   

Net increase (decrease) in net assets resulting from operations

   $     19,242,960      $     278,568,206      $     87,062,386      $     265,222,726      $     251,463,904   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    107

 

STATEMENTS OF OPERATIONS (continued)

For the year ended December 31, 2013

 

 

     Mid Growth     Small Value     Small Core     Small Growth         
International
Equity 		 

Investment Income:

                    

Dividend income

   $ 1,162,520      $ 1,057,430      $ 4,625,292      $ 200,832      $ 14,054,114   

Interest income

     461        492        1,410        419        3,394   

Securities lending income (net)

     107,100        36,414        395,835        93,404        309,199   

Withholding taxes on foreign income

     (5,076 )      —        (20,299 )      —        (1,180,008 ) 

Total investment income

     1,265,005        1,094,336        5,002,238        294,655        13,186,699   
           

Expenses:

                    

Advisory

     1,221,174        633,821        2,528,790        563,801        4,578,894   

Trustees and CCO

     3,626        1,616        6,628        1,398        12,936   

Audit and tax

     17,105        17,200        17,099        17,206        126,750   

Custody and accounting

     31,031        17,169        65,781        24,926        367,787   

Legal

     10,905        4,824        19,827        8,668        33,668   

Printing and shareholder reports

     10,990        4,748        19,845        4,958        37,095   

Other

     4,073        1,716        7,065        1,545        14,194   

Total expenses

     1,298,904        681,094        2,665,035        622,502        5,171,324   

Expenses (waived/reimbursed)

     (26,847 )      (24,086 )      —        (18,429 )      —   

Net expenses

     1,272,057        657,008        2,665,035        604,073        5,171,324   

Net investment income (loss)

     (7,052 )      437,328        2,337,203        (309,418 )      8,015,375   
           

Net realized gain (loss) on transactions from:

                    

Investment securities

     41,797,631        7,673,016        102,679,628        4,048,714        170,599,027   

Futures contracts

     —        —        196,697        —        —   

Foreign currency transactions

     (693 )      —        (42 )      —        1,720,955   

Net realized gain (loss)

     41,796,938        7,673,016            102,876,283        4,048,714            172,319,982   
           

Net change in unrealized appreciation (depreciation) on:

                    

Investment securities

     2,753,869        14,403,424        (14,136,578 )      17,451,716        (101,941,351 ) 

Futures contracts

     —        —        (31,262 )      —        —   

Translation of assets and liabilities denominated in foreign currencies

     5        —        36        —        242,835   

Net change in unrealized appreciation (depreciation)

     2,753,874        14,403,424        (14,167,804 )      17,451,716        (101,698,516 ) 

Net realized and change in unrealized gain (loss)

     44,550,812        22,076,440        88,708,479        21,500,430        70,621,466   

Net increase (decrease) in net assets resulting from operations

   $     44,543,760      $     22,513,768      $ 91,045,682      $     21,191,012      $ 78,636,841   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    108

 

STATEMENTS OF CHANGES IN NET ASSETS

For the years ended:

 

     Money Market     High Quality Bond     Inflation-Protected Securities  
     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		  

From operations:

                        

Net investment income (loss)

   $ (654,670 )    $ (960,513 )    $ 7,619,019      $ 8,515,508      $ 1,503,888      $ 5,028,483   

Net realized gain (loss)

     20,771        86        578,440        1,238,247        3,440,601        15,124,782   

Net change in unrealized appreciation (depreciation)

     —        —        (6,501,402 )      2,393,318        (31,996,091 )      4,052,311   

Net increase (decrease) in net assets resulting from operations

     (633,899 )      (960,427 )      1,696,057        12,147,073        (27,051,602 )      24,205,576   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     653,764,501        607,906,945        248,234,781        150,407,683        52,376,827        52,452,782   

Withdrawals

         (614,626,579 )          (654,217,536 )          (236,118,950 )          (234,736,980 )      (91,673,855 )      (94,065,725 ) 

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

     39,137,922        (46,310,591 )      12,115,831        (84,329,297 )      (39,297,028 )      (41,612,943 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     38,504,023        (47,271,018 )      13,811,888        (72,182,224 )      (66,348,630 )      (17,407,367 ) 
             

Net assets:

                        

Beginning of year

     948,357,939        995,628,957        386,045,994        458,228,218        341,136,354        358,543,721   

End of year

   $ 986,861,962      $ 948,357,939      $ 399,857,882      $ 386,045,994      $     274,787,724      $     341,136,354   
           
     Core Bond     High Yield Bond     Balanced  
     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		  

From operations:

                        

Net investment income (loss)

   $ 36,979,108      $ 46,111,919      $ 53,201,239      $ 56,048,435      $ 1,651,684      $ 1,985,977   

Net realized gain (loss)

     2,100,729        29,636,680        978,231        15,614,503        8,152,622        4,620,041   

Net change in unrealized appreciation (depreciation)

     (53,219,455 )      47,071,976        5,528,464        37,127,582        9,438,654        7,067,798   

Net increase (decrease) in net assets resulting from operations

     (14,139,618 )      122,820,575        59,707,934        108,790,520        19,242,960        13,673,816   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     229,761,560        259,905,444        116,427,122        112,473,979        21,426,618        9,137,794   

Withdrawals

     (349,444,213 )      (501,283,416 )          (139,221,398 )          (130,547,942 )      (27,001,328 )      (17,320,402 ) 

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

     (119,682,653 )      (241,377,972 )      (22,794,276 )      (18,073,963 )      (5,574,710 )      (8,182,608 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     (133,822,271 )      (118,557,397 )      36,913,658        90,716,557        13,668,250        5,491,208   
             

Net assets:

                        

Beginning of year

     1,470,033,135        1,588,590,532        819,992,643        729,276,086        109,602,065        104,110,857   

End of year

   $     1,336,210,864      $     1,470,033,135      $ 856,906,301      $ 819,992,643      $     123,270,315      $     109,602,065   
           
     Large Value     Large Core     Large Growth  
     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		  

From operations:

                        

Net investment income (loss)

   $ 14,796,465      $ 17,614,276      $ 3,921,752      $ 4,205,876      $ 4,940,689      $ 6,849,377   

Net realized gain (loss)

     177,405,771        94,470,108        58,081,271        21,814,060        96,591,812        113,489,403   

Net change in unrealized appreciation (depreciation)

     86,365,970        29,113,417        25,059,363        13,087,450        163,690,225        23,287,865   

Net increase (decrease) in net assets resulting from operations

     278,568,206        141,197,801        87,062,386        39,107,386        265,222,726        143,626,645   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     67,473,165        62,284,142        27,612,712        15,282,782        50,143,117        68,357,724   

Withdrawals

     (206,804,126 )      (296,208,563 )      (49,923,765 )      (44,610,616 )      (198,361,205 )      (403,278,229 ) 

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

         (139,330,961 )          (233,924,421 )      (22,311,053 )      (29,327,834 )          (148,218,088 )      (334,920,505 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     139,237,245        (92,726,620 )      64,751,333        9,779,552        117,004,638        (191,293,860 ) 
             

Net assets:

                        

Beginning of year

     785,039,279        877,765,899        244,983,746        235,204,194        825,013,595            1,016,307,455   

End of year

   $ 924,276,524      $ 785,039,279      $     309,735,079      $     244,983,746      $ 942,018,233      $ 825,013,595   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    109

 

STATEMENTS OF CHANGES IN NET ASSETS (continued)

For the years ended:

 

 

     Mid Value     Mid Growth     Small Value  
     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		  

From operations:

                        

Net investment income (loss)

   $ 8,311,476      $ 10,393,561      $ (7,052 )    $ 191,875      $ 437,328      $ 1,151,661   

Net realized gain (loss)

     100,694,928        74,180,247        41,796,938        25,644,878        7,673,016        10,989,012   

Net change in unrealized appreciation (depreciation)

     142,457,500        52,088,706        2,753,874        1,869,722        14,403,424        1,661,200   

Net increase (decrease) in net assets resulting from operations

     251,463,904        136,662,514        44,543,760        27,706,475        22,513,768        13,801,873   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     71,316,736        55,523,930        14,172,136        15,871,932        9,361,371        5,249,082   

Withdrawals

         (125,663,958 )          (163,056,686 )      (73,505,761 )      (85,247,660 )          (19,760,939 )      (52,825,641 ) 

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

     (54,347,222 )      (107,532,756 )      (59,333,625 )      (69,375,728 )      (10,399,568 )      (47,576,559 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     197,116,682        29,129,758        (14,789,865 )      (41,669,253 )      12,114,200        (33,774,686 ) 
             

Net assets:

                        

Beginning of year

     777,964,482        748,834,724        164,932,927        206,602,180        70,183,342            103,958,028   

End of year

   $ 975,081,164      $ 777,964,482      $     150,143,062      $     164,932,927      $ 82,297,542      $ 70,183,342   
           
     Small Core     Small Growth     International Equity  
     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		     December 31,
2013		     December 31,
2012		  

From operations:

                        

Net investment income (loss)

   $ 2,337,203      $ 3,212,148      $ (309,418 )    $ (159,293 )    $ 8,015,375      $ 10,591,032   

Net realized gain (loss)

     102,876,283        28,699,445        4,048,714        10,769,184        172,319,982        47,769,505   

Net change in unrealized appreciation (depreciation)

     (14,167,804 )      10,199,488        17,451,716        (4,949,469 )      (101,698,516 )      49,185,516   

Net increase (decrease) in net assets resulting from operations

     91,045,682        42,111,081        21,191,012        5,660,422        78,636,841        107,546,053   
             

From transactions in investors’ beneficial interests:

                        

Contributions

     20,969,699        21,791,667        11,088,755        6,048,358        56,228,758        82,896,113   

Withdrawals

     (74,769,828 )      (63,026,884 )          (17,515,184 )      (61,533,273 )          (137,192,742 )          (256,180,194 ) 

Net increase (decrease) in net assets resulting from transactions in investors’ beneficial interests

     (53,800,129 )      (41,235,217 )      (6,426,429 )      (55,484,915 )      (80,963,984 )      (173,284,081 ) 
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets

     37,245,553        875,864        14,764,583        (49,824,493 )      (2,327,143 )      (65,738,028 ) 
             

Net assets:

                        

Beginning of year

     296,936,051        296,060,187        58,299,798            108,124,291        614,432,457        680,170,485   

End of year

   $     334,181,604      $     296,936,051      $ 73,064,381      $ 58,299,798      $ 612,105,314      $ 614,432,457   

 

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

Transamerica Partners Portfolios   Annual Report 2013

Page    110

 

FINANCIAL HIGHLIGHTS

For the years ended:

 

     Money Market  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   986,862      $   948,358      $   995,629      $   1,065,396      $   1,132,907   

Total return

     (0.07 )%      (0.11 )%      (0.04 )%      0.02 %      0.36 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.29 %      0.28 %      0.28 %      0.28 %      0.27 % 

Before (waiver/reimbursement)

     0.29 %      0.28 %      0.28 %      0.28 %      0.27 % 

Net investment income (loss) to average net assets

     (0.07 )%      (0.11 )%      (0.04 )%      0.02 %      0.37 % 

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

 

     High Quality Bond  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   399,858      $   386,046      $   458,228      $   463,701      $   477,088   

Total return

     0.41 %      2.95 %      2.16 %      4.20 %      9.83 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.39 %      0.38 %      0.38 %      0.38 %      0.38 % 

Before (waiver/reimbursement)

     0.39 %      0.38 %      0.38 %      0.38 %      0.38 % 

Net investment income (loss) to average net assets

     1.81 %      2.10 %      2.43 %      2.99 %      3.75 % 

Portfolio turnover rate

     77 %      68 %      84 %      87 %      104 % 

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

 

     Inflation-Protected Securities  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   274,788      $   341,136      $   358,544      $   328,010      $   370,010   

Total return

     (8.26 )%      7.06 %      12.33 %      6.23 %      10.22 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.40 %      0.40 %      0.40 %      0.38 %      0.40 % 

Before (waiver/reimbursement)

     0.41 %      0.40 %      0.40 %      0.38 %      0.40 % 

Net investment income (loss) to average net assets

     0.48 %      1.43 %      3.30 %      2.04 %      1.02 % 

Portfolio turnover rate

     99 %      103 %      134 %      117 %      118 % 

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

 

     Core Bond  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   1,336,211      $   1,470,033      $   1,588,591      $   1,622,006      $   1,749,531   

Total return

     (0.96 )%      8.28 %      6.20 %      8.26 %      12.89 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.39 %      0.39 %      0.39 %      0.39 %      0.38 % 

Before (waiver/reimbursement)

     0.39 %      0.39 %      0.39 %      0.39 %      0.38 % 

Net investment income (loss) to average net assets

     2.64 %      3.03 %      3.54 %      3.65 %      4.45 % 

Portfolio turnover rate

     200 %      297 %      406 %      633 %      1,014 %(A) 

 

(A) 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 Portfolios   Annual Report 2013

Page    111

 

FINANCIAL HIGHLIGHTS (continued)

For the years ended:

 

     High Yield Bond  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   856,906      $   819,993      $   729,276      $   709,083      $   641,917   

Total return

     7.48 %      15.14 %      4.93 %      15.81 %      57.21 % 

Ratio and supplemental data

                    

Expenses to average net assets(A)

                    

After (waiver/reimbursement)

     0.59 %      0.59 %      0.59 %      0.59 %      0.59 % 

Before (waiver/reimbursement)

     0.59 %      0.59 %      0.59 %      0.59 %      0.59 % 

Net investment income (loss) to average net assets

     6.37 %      7.23 %      8.04 %      8.84 %      10.10 % 

Portfolio turnover rate(B)

     51 %      102 %      81 %      98 %      98 % 

 

(A) Does not include expenses of the investment companies in which the portfolio invests.
(B)  Does not include the portfolio activity of the investment companies in which the portfolio invests.

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

 

     Balanced  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   123,270      $   109,602      $   104,111      $   116,337      $   137,734   

Total return

     18.33 %      13.47 %      3.60 %      13.91 %      23.45 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.50 %      0.50 %      0.50 %      0.50 %      0.50 % 

Before (waiver/reimbursement)

     0.63 %      0.61 %      0.62 %      0.59 %      0.55 % 

Net investment income (loss) to average net assets

     1.44 %      1.82 %      2.26 %      2.42 %      3.01 % 

Portfolio turnover rate

     123 %      150 %      245 %      211 %      167 % 

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

 

     Large Value  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   924,277      $   785,039      $   877,766      $   1,014,115      $   1,263,463   

Total return

     38.08 %      17.39 %      2.32 %      14.66 %      16.71 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.48 %      0.48 %      0.47 %      0.47 %      0.48 % 

Before (waiver/reimbursement)

     0.48 %      0.48 %      0.47 %      0.47 %      0.48 % 

Net investment income (loss) to average net assets

     1.69 %      2.08 %(A)      1.70 %      1.65 %      2.22 % 

Portfolio turnover rate

     99 %      48 %      55 %      62 %      124 %(B) 

 

(A) Includes litigation proceeds received during the year that represented 0.15%.
(B) 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  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   309,735      $   244,984      $   235,204      $   255,995      $   280,896   

Total return

     37.28 %      17.30 %      3.51 %      11.79 %      23.36 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.64 %      0.64 %      0.63 %      0.63 %      0.62 % 

Before (waiver/reimbursement)

     0.64 %      0.64 %      0.63 %      0.63 %      0.62 % 

Net investment income (loss) to average net assets

     1.41 %      1.68 %      1.37 %      1.47 %      1.57 % 

Portfolio turnover rate

     116 %      54 %      63 %      55 %      168 % 

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 Portfolios   Annual Report 2013

Page    112

 

FINANCIAL HIGHLIGHTS (continued)

For the years ended:

 

     Large Growth  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   942,018      $   825,014      $   1,016,307      $   1,176,583      $   1,341,520   

Total return

     35.32 %      14.91 %      (1.78 )%      16.62 %      35.56 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.65 %      0.65 %      0.65 %      0.65 %      0.65 % 

Before (waiver/reimbursement)

     0.66 %      0.66 %      0.65 %      0.66 %      0.65 % 

Net investment income (loss) to average net assets

     0.57 %      0.75 %      0.34 %      0.56 %      0.97 % 

Portfolio turnover rate

     49 %      53 %      53 %      119 %      102 %(A) 

 

(A) Excludes investment securities received in kind.

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

 

      Mid Value  
      December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

    $ 975,081      $ 777,964      $ 748,835      $ 909,134      $ 808,661   

Total return

      32.99 %      19.50 %      (2.19 )%      21.29 %      32.53 % 

Ratio and supplemental data

                     

Expenses to average net assets

                     

After (waiver/reimbursement)

      0.70 %      0.70 %      0.70 %      0.69 %      0.70 % 

Before (waiver/reimbursement)

      0.70 %      0.70 %      0.70 %      0.69 %      0.70 % 

Net investment income (loss) to average net assets

      0.93 %      1.36 %      1.08 %      1.14 %      1.44 % 

Portfolio turnover rate

      53 %      71 %      69 %      76 %      122 % 

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

 

      Mid Growth  
      December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

    $   150,143      $   164,933      $   206,602      $   269,733      $   251,749   

Total return

      30.35 %      13.93 %      (6.90) %      29.27 %      25.24 % 

Ratio and supplemental data

                     

Expenses to average net assets

                     

After (waiver/reimbursement)

      0.75 %      0.75 %      0.75 %      0.75 %      0.75 % 

Before (waiver/reimbursement)

      0.77 %      0.76 %      0.75 %      0.75 %      0.76 % 

Net investment income (loss) to average net assets

      (–) %(A)      0.10 %      (0.33) %      (0.36) %      (0.23) % 

Portfolio turnover rate

      234 %      178 %      135 %      199 %      214 % 

 

(A) Rounds to less than 0.01% or (0.01)%.

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

 

     Small Value  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   82,298      $   70,183      $   103,958      $   134,427      $   145,727   

Total return

     34.10 %      16.11 %      1.35 %      23.12 %      19.64 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.85 %      0.85 %      0.85 %      0.85 %      0.85 % 

Before (waiver/reimbursement)

     0.88 %      0.88 %      0.87 %      0.87 %      0.88 % 

Net investment income (loss) to average net assets

     0.57 %      1.41 %      0.63 %      0.84 %      1.24 % 

Portfolio turnover rate

     16 %      15 %      16 %      121 %      103 % 

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 Portfolios   Annual Report 2013

Page    113

 

FINANCIAL HIGHLIGHTS (continued)

For the years ended:

 

     Small Core  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   334,182      $   296,936      $   296,060      $   341,598      $   340,044   

Total return

     33.62 %      15.04 %      (2.19 )%      29.89 %      27.64 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.84 %      0.84 %      0.84 %      0.85 %      0.85 % 

Before (waiver/reimbursement)

     0.84 %      0.84 %      0.84 %      0.85 %      0.85 % 

Net investment income (loss) to average net assets

     0.74 %      1.07 %      0.32 %      0.43 %      0.67 % 

Portfolio turnover rate

     195 %      59 %      59 %      55 %      88 % 

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

 

     Small Growth  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   73,064      $   58,300      $   108,124      $   142,731      $   152,724   

Total return

     37.97 %      1.30 %      (6.45 )%      25.65 %      32.99 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.90 %      0.90 %      0.90 %      0.90 %      0.90 % 

Before (waiver/reimbursement)

     0.93 %      0.94 %      0.94 %      0.93 %      0.93 % 

Net investment income (loss) to average net assets

     (0.46 )%      (0.20 )%      (0.37 )%      (0.41 )%      (0.38 )% 

Portfolio turnover rate

     72 %      209 %      120 %      99 %      104 % 

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

 

     International Equity  
     December 31,
2013		     December 31,
2012		     December 31,
2011		     December 31,
2010		     December 31,
2009		  

Net assets end of year (000’s)

   $   612,105      $   614,432      $   680,170      $   893,260      $   1,044,049   

Total return

     13.92 %      17.35 %      (13.51 )%      14.94 %      26.10 % 

Ratio and supplemental data

                    

Expenses to average net assets

                    

After (waiver/reimbursement)

     0.85 %      0.82 %      0.82 %      0.81 %      0.82 % 

Before (waiver/reimbursement)

     0.85 %      0.82 %      0.82 %      0.81 %      0.82 % 

Net investment income (loss) to average net assets

     1.31 %      1.65 %      1.70 %      1.45 %      1.39 % 

Portfolio turnover rate

     116 %      23 %      24 %      29 %      138 % 

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 Portfolios   Annual Report 2013

Page    114

 

NOTES TO FINANCIAL STATEMENTS

At December 31, 2013

 

NOTE 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

 

Transamerica Partners Portfolios (the “Series Portfolio”) is an open-end management investment company registered 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 fund 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 registered public 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 Portfolios 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 Portfolios; from time to time, monitoring and verifying the custodian’s daily calculation of net asset value; 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 each Portfolio’s investments; recommending and implementing fund 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 Portfolios’ custodian and their dividend disbursing agent and monitoring their services to the Portfolios; assisting the Portfolios in preparing reports to shareholders; preparation of agendas and supporting documents for and minutes of meetings of the Board 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 Portfolios. State Street performs back office services to support TFS, including furnishing financial and performance information about the Portfolios for inclusion in regulatory filings and Trustees and shareholder reports; preparing drafts of regulatory filings, Trustees materials, tax returns, 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 Services Agreement with the exception of the costs of certain services specifically assumed by the Portfolios, as numerated within the Statements of Operations.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    115

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

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 its 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. State Street serves as securities lending agent to the Portfolios pursuant to a Securities Lending Agreement. 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 with a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities loaned. The lending agent has agreed to indemnify the Portfolios in the case of default of any securities borrower.

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 TAM family of mutual funds is a significant shareholder of the Navigator as of December 31, 2013. No individual portfolio has a significant holding in the Navigator.

By lending securities, a Portfolio seeks to increase its 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 December 31, 2013 are shown on a gross basis in the Schedules of Investments and Statements of Assets and Liabilities.

Repurchase agreements: In a repurchase agreement, a Portfolio purchases a security and simultaneously commits to resell that security to the seller at an agreed-upon price on an agreed-upon date. 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 December 31, 2013 are shown on a gross basis 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 based on the closing exchange rate each day. The cost of foreign securities purchased and any realized gains or losses are translated at the prevailing exchange rates in effect on the date of the respective transaction.

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.

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 or unrealized, 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.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    116

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 1. (continued)

 

Cash overdraft: Throughout the year, 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.

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 December 31, 2013 are listed in the Schedules of Investments.

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 investment. Writing put options tends to increase exposure to the underlying investment. 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 downside protection to the investments in inflation-linked products.

Foreign currency options: The Portfolios may write or purchase foreign currency options. Purchasing foreign currency options gives the Portfolios the right, but not the obligation to buy or sell the currency and will specify the amount of currency and a rate of exchange that may be exercised by a specified date. These options may be used as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies.

The underlying face amounts of open option and swaption contracts at December 31, 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

     587,388        2,222   

Closing Buys

     (229,227 )      (389 ) 

Expirations

     (255,292 )      (1,476 ) 

Exercised

     (96,544 )      (194 ) 
   

 

 

    

 

 

  

Balance at December 31, 2013

   $ 15,173        207   

 

Transamerica Partners Portfolios   Annual Report 2013

Page    117

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 1. (continued)

 

 

Core Bond   Premiums     Contracts  

Balance at December 31, 2012

   $ —        —   

Sales

     2,010,139        6,200   

Closing Buys

     (1,961,707 )      (5,537 ) 

Expirations

     —        —   

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at December 31, 2013

   $ 48,432        663   

 

Balanced   Premiums     Contracts  

Balance at December 31, 2012

   $ —        —   

Sales

     65,196        205   

Closing Buys

     (63,516 )      (182 ) 

Expirations

     —        —   

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at December 31, 2013

   $ 1,680        23   

Transactions in written swaptions, inflation cap and foreign exchange options were as follows:

 

Inflation-Protected Securities   Premiums     Notional
Amount		  

Balance at December 31, 2012

   $ 399,123      $ 38,505,000   

Sales

     740,404        104,110,000   

Closing Buys

     (665,649 )      (96,400,000 ) 

Expirations

     (156,595 )      (16,400,000 ) 

Exercised

     (27,194 )      (3,400,000 ) 
   

 

 

    

 

 

  

Balance at December 31, 2013

   $ 290,089      $ 26,415,000   

 

Inflation-Protected Securities   Premiums     Notional
Amount		  

Balance at December 31, 2012

   $ —      AUD —   

Sales

     34,576        3,400,000   

Closing Buys

     —        —   

Expirations

     (34,576 )      (3,400,000 ) 

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at December 31, 2013

   $ —      AUD —   

 

Inflation-Protected Securities   Premiums     Notional
Amount		  

Balance at December 31, 2012

   $ 224,437      EUR 4,270,000   

Sales

     171,842        16,965,000   

Closing Buys

     —        —   

Expirations

     (113,391 )      (12,645,000 ) 

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at December 31, 2013

   $ 282,888      EUR 8,590,000   

 

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 December 31, 2013

   $ —      $ —   

 

Transamerica Partners Portfolios   Annual Report 2013

Page    118

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 1. (continued)

 

 

Core Bond   Premiums    

Notional

Amount

  

Balance at December 31, 2012

   $ —      JPY —   

Sales

     91,923        3,560,000,000   

Closing Buys

     —        —   

Expirations

     —        —   

Exercised

     —        —   
   

 

 

    

 

 

  

Balance at December 31, 2013

   $ 91,923      JPY 3,560,000,000   

Futures contracts: The Portfolios are subject to equity and commodity risk, interest rate risks, 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 December 31, 2013 are listed in the Schedules of Investments.

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 exchange (“centrally cleared swaps”). Centrally cleared swaps listed or traded on a multilateral platform, are valued at the daily settlement price determined by the corresponding exchange. For centrally cleared credit default swaps the clearing exchange requires all members to provide applicable levels across complete term levels. Centrally cleared interest rate swaps are valued using a pricing model that references the underlying rates including but not limited to the overnight index swap rate and London Interbank Offered Rate (“LIBOR”) forward rate to calculate the daily settlement price. The Portfolios 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.

For OTC swap agreements, 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.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    119

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 1. (continued)

 

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 is 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 December 31, 2013 are listed in the Schedules of Investments. The centrally cleared swap agreements are marked to market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Portfolio, if applicable, and is included in the Statements of Assets and Liabilities.

The open OTC swap agreements at December 31, 2013 are listed in the Schedule of Investments. The premiums paid (received), as applicable, are included in the Statements of Assets and Liabilities along with the unrealized appreciation (depreciation).

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 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 December 31, 2013.

Open loan participations and assignments at December 31, 2013 are included in 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 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, if any, are included in the payable or receivable for investments purchased or sold in the Statements of Assets and Liabilities.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    120

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 1. (continued)

 

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.

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, the Portfolios will segregate with its custodian either cash, U.S. Government securities, or other liquid assets at least equal to the value or purchase 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. TIPS are fixed income securities whose principal value is periodically adjusted according to the rate of inflation/deflation. If the index measuring inflation/deflation rises or falls, the principal value of TIPS will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of a TIPS will be included as interest income in the Statements of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

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 December 31, 2013 are listed in the Schedules of Investments.

Restricted and illiquid securities: The Portfolios may invest in unregulated 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 under the Securities Act of 1933. 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 December 31, 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

 

Transamerica Partners Portfolios   Annual Report 2013

Page    121

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 1. (continued)

 

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 year ended December 31, 2013, are included in net realized gain (loss) in the Statements of Operations and are summarized as follows:

 

Portfolio Name   Commissions  

Large Growth

   $ 30,115   

Mid Value

     160,057   

Mid Growth

     18,530   

Small Value

     318   

Small Core

     44,658   

Small Growth

     3,896   

International Equity

     7,952   

Portfolios not listed in the above table did not have any commissions recaptured during the year ended December 31, 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 trusts (“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.

There are certain additional risks involved in investing in REITs. These include, but are not limited to, economic 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 4:00 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

 

Transamerica Partners Portfolios   Annual Report 2013

Page    122

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 2. (continued)

 

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 for which 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 the 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.

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 portfolios. 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.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    123

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 2. (continued)

 

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 inactive 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 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 passthroughs. Generally, agency issued debt securities are valued in a manner similar to U.S. government securities. Mortgage passthroughs include TBA securities and mortgage passthrough 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.

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 within Level 2 of the fair value hierarchy or Level 3 if inputs are unobservable.

The hierarchy classification of inputs used to value the Portfolios’ investments, at December 31, 2013, is disclosed in the Valuation Summary of each Portfolio’s Schedule of Investments.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    124

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

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 Partners Funds Group (“TPFG”) is a an open-end management investment company. The percentage of each Portfolio that is owned by TPFG is as follows:

 

Transamerica Partners Funds Group   Investments
in Portfolio		  

Money Market

     48.09 % 

High Quality Bond

     20.86   

Inflation-Protected Securities

     35.29   

Core Bond

     23.67   

High Yield Bond

     14.14   

Balanced

     42.75   

Large Value

     27.58   

Stock Index

     7.09   

Large Core

     26.14   

Large Growth

     26.42   

Mid Value

     16.06   

Mid Growth

     38.50   

Small Value

     43.49   

Small Core

     26.67   

Small Growth

     48.46   

International Equity

     25.74   

Transamerica Partners Funds Group II (“TPFG II”) is a an open-end management investment company. The percentage of each Portfolio that is owned by TPFG II is as follows:

 

Transamerica Partners Funds Group II   Investments
in Portfolio		  

Money Market

     32.09 % 

High Quality Bond

     16.09   

Inflation-Protected Securities

     31.64   

Core Bond

     29.98   

High Yield Bond

     36.99   

Balanced

     4.67   

Large Value

     13.01   

Stock Index

     19.14   

Large Core

     2.42   

Large Growth

     13.86   

Mid Value

     48.21   

Mid Growth

     22.58   

Small Value

     14.57   

Small Core

     9.20   

Small Growth

     18.75   

International Equity

     13.23   

 

Transamerica Partners Portfolios   Annual Report 2013

Page    125

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 3. (continued)

 

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

     3.31 % 

High Quality Bond

     14.50   

Inflation-Protected Securities

     12.44   

Core Bond

     12.15   

High Yield Bond

     5.79   

Balanced

     48.25   

Large Value

     38.40   

Large Core

     55.23   

Large Growth

     40.39   

Mid Value

     5.64   

Mid Growth

     0.86   

Small Value

     0.95   

Small Core

     51.65   

Small Growth

     1.02   

International Equity

     23.71   

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

     16.47 % 

High Quality Bond

     39.48   

Inflation-Protected Securities

     15.34   

Core Bond

     28.94   

High Yield Bond

     24.98   

Balanced

     3.96   

Large Value

     16.03   

Large Core

     12.93   

Large Growth

     16.48   

Mid Value

     6.72   

Mid Growth

     23.46   

Small Value

     33.12   

Small Core

     10.68   

Small Growth

     24.08   

International Equity

     32.44   

 

Transamerica Partners Portfolios   Annual Report 2013

Page    126

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 3. (continued)

 

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

     0.03 % 

High Quality Bond

     9.06   

Inflation-Protected Securities

     5.28   

Core Bond

     5.26   

High Yield Bond

     18.09   

Balanced

     —   

Large Value

     4.82   

Large Core

     3.28   

Large Growth

     2.77   

Mid Value

     23.37   

Mid Growth

     14.60   

Small Value

     7.88   

Small Core

     1.80   

Small Growth

     7.68   

International Equity

     4.89   

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 trustees 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 corresponding to the 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 Portfolios   Annual Report 2013

Page    127

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

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 Name  

Advisory

Fee

  

Money Market

     0.250 % 

High Quality Bond

     0.350   

Inflation-Protected Securities

     0.350   

Core Bond

     0.350   

High Yield Bond

     0.550   

Balanced

     0.450   

Large Value

     0.450   

Large Core

     0.600   

Large Growth

     0.620   

Mid Value

     0.670   

Mid Growth

     0.720   

Small Value

     0.820   

Small Core (Effective June 28, 2013)

    

First $300 million

     0.800   

Over $300 million

     0.770   

Small Core (Prior to June 28, 2013)

     0.800   

Small Growth

    

First $300 million

     0.840   

Over $300 million

     0.800   

International Equity (Effective December 15, 2013)

    

First $500 million

     0.740   

Over $500 million to $1 billion

     0.720   

Over $1 billion to $2 billion

     0.690   

Over $2 billion

     0.660   

International Equity (Prior to December 15, 2013)

     0.750   

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 Name   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   

The expenses reimbursed are included in the Statements of Operations. 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.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    128

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 3. (continued)

 

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 payable from the Portfolios 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.

Brokerage commissions: There were no brokerage commissions incurred on security transactions placed with affiliates of the adviser or sub-advisers for the year ended December 31, 2013.

NOTE 4. PURCHASES AND SALES OF SECURITIES

The cost of securities purchased and proceeds from securities sold (excluding short-term securities) for the year ended December 31, 2013 were as follows:

 

     Purchases of securities    

Proceeds from maturities and
sales of securities

  
Portfolio Name   Long-term     U.S. Government     Long-term     U.S. Government  

Money Market

   $ —      $ —      $ —      $ —   

High Quality Bond

     130,156,992        201,111,402            117,567,058        198,345,781   

Inflation-Protected Securities

     28,545,873        270,929,672        19,051,184        288,318,310   

Core Bond

     754,326,935            1,875,232,289        819,308,650            1,899,710,033   

High Yield Bond

     436,821,072        —        407,292,028        —   

Balanced

     75,384,689        58,614,540        80,319,335        60,332,844   

Large Value

     844,425,449        —        964,545,834        —   

Large Core

     316,581,000        —        335,146,265        —   

Large Growth

     426,454,218        —        550,421,160        —   

Mid Value

     452,737,541        —        478,949,608        —   

Mid Growth

     387,427,630        —        448,343,966        —   

Small Value

     11,663,624        —        19,749,690        —   

Small Core

     602,541,353        —        654,037,450        —   

Small Growth

     47,063,707        —        53,916,630        —   

International Equity

         682,227,090        —        768,960,004        —   

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 following table details the volume of derivative positions held during the year:

 

     Beginning number
of positions at
December 31, 2012		     Ending number of
positions at
December 31, 2013		     Average number
of positions (A)		  

Futures contracts

     7        10        8   

Purchased options and swaptions

     9        10        8   

Written options and swaptions

         10            10            14   

Swap agreements

     12        7        7   

Forward foreign currency contracts

     12        22        14   
  (A) Calculated based on positions held at each month end during the current year.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    129

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

The tables below highlight the types of risk associated with the derivative instruments:

Fair Value of Derivative Instruments in the Statements of Assets and Liabilities as of December 31, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Total  

Asset derivatives

                        

Purchased options and swaptions, at value (B) (C)

   $ 1,264,355      $ 5,292      $ 1,269,647   

Premium paid on swap agreements (C) (D)

     6,971        —        6,971   

Unrealized appreciation on futures contracts (C) (E)

     343,201        —        343,201   

Unrealized appreciation on swap agreements (C) (F)

     111,198        —        111,198   

Unrealized appreciation on forward foreign currency contracts

     —        300,708        300,708   

Total gross amount of assets (G)

   $ 1,725,725      $ 306,000      $ 2,031,725   

Liability derivatives

                        

Written options and swaptions, at value (C)

   $ (457,631 )    $ (37,546 )    $ (495,177 ) 

Unrealized depreciation on futures contracts (C) (E)

     (428,615 )      —        (428,615 ) 

Unrealized depreciation on swap agreements (C) (F)

     (259,537 )      —        (259,537 ) 

Unrealized depreciation on forward foreign currency contracts

     —        (679,351 )      (679,351 ) 

Total gross amount of liabilities (G)

   $   (1,145,783 )    $   (716,897 )    $   (1,862,680 ) 
  (B) Included within Investment securities, at value.
  (C) May include exchange-traded derivatives which are not subject to a master netting arrangement, or another similar arrangement.
  (D) Includes premium paid on OTC swap agreements as reported on the Statements of Assets and Liabilities, as well as the premium paid on centrally cleared swap agreements included in the variation margin receivable/payable on derivative financial instruments.
  (E) Includes cumulative appreciation (depreciation) on futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
  (F)  Includes unrealized appreciation (depreciation) on OTC swap agreements as reported on the Statements of Assets and Liabilities, as well as the unrealized appreciation (depreciation) on centrally cleared swap agreements included in the variation margin receivable/payable on derivative financial instruments.
  (G) The Portfolio does not offset assets and liabilities that are subject to a master netting agreement or similar arrangement on the Statements of Assets and Liabilities.

The following tables present the Portfolio’s derivative assets and liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received/pledged by the Portfolio as of December 31, 2013:

Gross Amounts Not Offset in the Statements of Assets and Liabilities

Financial Assets and Derivative Assets, and Collateral Received as of December 31, 2013:

 

Counterparty   Gross Amounts of
Assets Presented in
Statements of Assets
and Liabilities (G)		     Value Eligible for
Offset		     Collateral
Received (H)		     Net Amount
(not less than $0)		  

BNP Paribas SA

   $ 15,112      $ —      $ —      $ 15,112   

Barclays Bank PLC

     11,468        (11,468 )      —        —   

Citibank, N.A.

     6,541        —        —        6,541   

Credit Suisse International

     131,012        (91,980 )      —        39,032   

Deutsche Bank AG

     1,289,157        (660,723 )      —        628,434   

UBS AG

     22,309        (2,631 )      —        19,678   

Other Derivatives (I)

     556,126        —        —        556,126   

Total

   $     2,031,725      $     (766,802 )    $     —      $     1,264,923   

 

Transamerica Partners Portfolios   Annual Report 2013

Page    130

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

Financial Liabilities and Derivative Liabilities, and Collateral Pledged as of December 31, 2013:

 

Counterparty   Gross Amounts of
Liabilities Presented in
Statements of Assets
and Liabilities (G)		     Value Eligible for
Offset		     Collateral
Pledged (H)		     Net Amount
(not less than $0)		  

Barclays Bank PLC

   $ 551,509      $ (11,468 )    $ —      $ 540,041   

Credit Suisse International

     91,980        (91,980 )      —        —   

Deutsche Bank AG

     660,723        (660,723 )      —        —   

UBS AG

     2,631        (2,631 )      —        —   

Other Derivatives (I)

     555,837        —        —        555,837   

Total

   $     1,862,680      $     (766,802 )    $     —      $     1,095,878   
  (G) 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.
  (H) In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization.
  (I) 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 year ended December 31, 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 purchased options and swaptions (J)

   $ 457,809      $   (164,407 )    $ 293,402   

Net realized gain (loss) on futures contracts

     1,511,362        —        1,511,362   

Net realized gain (loss) on written options and swaptions

     (109,914 )      267,866        157,952   

Net realized gain (loss) on swap agreements

     589,578        —        589,578   

Net realized gain (loss) on forward foreign currency contracts (K)

     —        349,783        349,783   

Net change in unrealized appreciation (depreciation) on derivatives recognized in income

                        

Net change in unrealized appreciation (depreciation) on purchased options and swaptions (L)

     270,536        23,327        293,863   

Net change in unrealized appreciation (depreciation) on futures contracts

     (323,022 )      —        (323,022 ) 

Net change in unrealized appreciation (depreciation) on written options and swaptions

     (5,442 )      53,713        48,271   

Net change in unrealized appreciation (depreciation) on swap agreements

     (496,288 )      —        (496,288 ) 

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (M)

     —        (307,000 )      (307,000 ) 

Total

   $   1,894,619      $ 223,282      $   2,117,901   
  (J) Included within Net realized gain (loss) on transactions from Investment securities.
  (K) Included within Net realized gain (loss) on transactions from Foreign currency transactions.
  (L) Included within Net change in unrealized appreciation (depreciation) on Investment securities.
  (M) Included within Net change in unrealized appreciation (depreciation) on Translation of assets and liabilities denominated in foreign currencies.

For non-exchange traded derivatives, under standard derivatives agreements, the Portfolio may be required to post collateral on derivatives if the Portfolio 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.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    131

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

Core Bond:

The Portfolio is subject to various risks in the normal course of pursuing its investment objective. The following table details the volume of derivative positions held during the year:

 

     Beginning number
of positions at
December 31, 2012		     Ending number of
positions at
December 31, 2013		     Average number
of positions (A)		  

Futures contracts

     11        7        8   

Purchased options and swaptions

     3        5        3   

Written options and swaptions

     1        4        2   

Swap agreements

     10        16        18   

Forward foreign currency contracts

     4        3        5   
  (A) Calculated based on positions held at each month end during the current year.

The tables below highlight the types of risk associated with the derivative instruments:

Fair Value of Derivative Instruments in the Statements of Assets and Liabilities as of December 31, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Credit
contracts		     Total  

Asset derivatives

                                

Purchased options and swaptions, at value (B) (C)

   $ 777,166      $ —      $ —      $ 777,166   

Premium paid on swap agreements (C) (D)

     226        —        622,773        622,999   

Unrealized appreciation on futures contracts (C) (E)

     1,342,264        —        —        1,342,264   

Unrealized appreciation on swap agreements (C) (F)

     246,162        —        412,674        658,836   

Unrealized appreciation on forward foreign currency contracts

     —        2,402        —        2,402   

Total gross amount of assets (G)

   $ 2,365,818      $ 2,402      $ 1,035,447      $ 3,403,667   

Liability derivatives

                                

Written options and swaptions, at value (C)

   $ (154,745 )    $ —      $ —      $ (154,745 ) 

Premium received on swap agreements (C) (H)

     —        —        (1,427,754 )      (1,427,754 ) 

Unrealized depreciation on futures contracts (C) (E)

     (1,638,980 )      —        —        (1,638,980 ) 

Unrealized depreciation on swap agreements (C) (F)

     (268,318 )      —        (315,954 )      (584,272 ) 

Unrealized depreciation on forward foreign currency contracts

     —        (383,440 )      —        (383,440 ) 

Total gross amount of liabilities (G)

   $   (2,062,043 )    $   (383,440 )    $   (1,743,708 )    $   (4,189,191 ) 
  (B) Included within Investment securities, at value.
  (C) May include exchange-traded derivatives which are not subject to a master netting arrangement, or another similar arrangement.
  (D) Includes premium paid on OTC swap agreements as reported on the Statements of Assets and Liabilities, as well as the premium paid on centrally cleared swap agreements included in the variation margin receivable/payable on derivative financial instruments.
  (E) Includes cumulative appreciation (depreciation) on futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
  (F)  Includes unrealized appreciation (depreciation) on OTC swap agreements as reported on the Statements of Assets and Liabilities, as well as the unrealized appreciation (depreciation) on centrally cleared swap agreements included in the variation margin receivable/payable on derivative financial instruments.
  (G) The Portfolio does not offset assets and liabilities that are subject to a master netting agreement or similar arrangement on the Statements of Assets and Liabilities.
  (H) Includes premium received on OTC swap agreements as reported on the Statements of Assets and Liabilities, as well as premiums received on centrally cleared swap agreements included in the variation margin receivable/payable on derivative financial instruments.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    132

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

The following tables present the Portfolio’s derivative assets and liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received/pledged by the Portfolio as of December 31, 2013:

Gross Amounts Not Offset in the Statements of Assets and Liabilities

Financial Assets and Derivative Assets, and Collateral Received as of December 31, 2013:

 

Counterparty   Gross Amounts of
Assets Presented in
Statements of Assets
and Liabilities (H)		     Value Eligible for
Offset		     Collateral
Received (I)		     Net Amount
(not less than $0)		  

BNP Paribas SA

   $ 2,402      $ —      $ —      $ 2,402   

Bank of America, N.A.

     192,696        (19,826 )      —        172,870   

Barclays Bank PLC

     719,773        (444,199 )      —        275,574   

Citibank, N.A.

     67,417        —        (67,417 )      —   

Deutsche Bank AG

     399,542        (399,542 )      —        —   

Morgan Stanley Capital Services, Inc.

     53,077        (17,124 )      —        35,953   

Other Derivatives (J)

     1,968,760        —        —        1,968,760   

Total

   $     3,403,667      $     (880,691 )    $     (67,417 )    $     2,455,559   

Financial Liabilities and Derivative Liabilities, and Collateral Pledged as of December 31, 2013:

 

Counterparty   Gross Amounts of
Liabilities Presented in
Statements of Assets
and Liabilities (H)		     Value Eligible for
Offset		     Collateral
Pledged (I)		     Net Amount
(not less than $0)		  

Bank of America, N.A.

   $ 19,826      $ (19,826 )    $ —      $ —   

Barclays Bank PLC

     444,199        (444,199 )      —        —   

Deutsche Bank AG

     722,532        (399,542 )      (322,990 )      —   

Morgan Stanley Capital Services, Inc.

     17,124        (17,124 )      —        —   

Other Derivatives (J)

     2,985,510        —        —        2,985,510   

Total

   $     4,189,191      $     (880,691 )    $     (322,990 )    $     2,985,510   
  (H) 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.
  (I) In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization.
  (J) Other Derivatives are not subject to a master netting arrangement or another similar arrangement.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    133

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

Effect of Derivative Instruments in the Statements of Operations for the year ended December 31, 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 swaptions (K)

   $ 1,266,475      $ —      $ —      $ 1,266,475   

Net realized gain (loss) on futures contracts

     (5,754,334 )      —        —        (5,754,334 ) 

Net realized gain (loss) on written options and swaptions

     (741,605 )      —        —        (741,605 ) 

Net realized gain (loss) on swap agreements

       13,599,591        —        1,971,627          15,571,218   

Net realized gain (loss) on forward foreign currency contracts (L)

     —        (579,327 )      —        (579,327 ) 

Net change in unrealized appreciation (depreciation) on derivatives recognized in income

                                

Net change in unrealized appreciation (depreciation) on purchased options and swaptions (M)

     163,113        —        —        163,113   

Net change in unrealized appreciation (depreciation) on futures contracts

     (1,362,923 )      —        —        (1,362,923 ) 

Net change in unrealized appreciation (depreciation) on written options and swaptions

     (47,537 )      —        —        (47,537 ) 

Net change in unrealized appreciation (depreciation) on swap agreements

     786,360        —          (1,825,798 )      (1,039,438 ) 

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (N)

     —        (284,369 )      —        (284,369 ) 

Total

   $ 7,909,140      $   (863,696 )    $ 145,829      $ 7,191,273   
  (K) Included within Net realized gain (loss) on transactions from Investment securities.
  (L) Included within Net realized gain (loss) on transactions from Foreign currency transactions.
  (M) Included within Net change in unrealized appreciation (depreciation) on Investment securities.
  (N) Included within Net change in unrealized appreciation (depreciation) on Translation of assets and liabilities denominated in foreign currencies.

For non-exchange traded derivatives, under standard derivatives agreements, the Portfolio may be required to post collateral on derivatives if the Portfolio 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 following table details the volume of derivative positions held during the year:

 

     Beginning number
of positions at
December 31, 2012		     Ending number of
positions at
December 31, 2013		     Average number
of positions (A)		  

Futures contracts

     11        7        8   

Purchased options and swaptions

     1        1        2   

Written options and swaptions

     —        1        2 (B) 

Forward foreign currency contracts

     4        2        3   
  (A) Calculated based on positions held at each month end during the current year.
  (B) Although there were no open positions at the beginning and/or the end of the year the Portfolio periodically invested in this derivative during the year.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    134

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

The tables below highlight the types of risk associated with the derivative instruments:

Fair Value of Derivative Instruments in the Statements of Assets and Liabilities as of December 31, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Interest rate
contracts		     Foreign
exchange
contracts		     Equity
contracts		     Total  

Asset derivatives

                                

Purchased options and swaptions, at value (C) (D)

   $ 15,525      $ —      $ —      $ 15,525   

Unrealized appreciation on futures contracts (D) (E)

     52,852        —        12,068        64,920   

Unrealized appreciation on forward foreign currency contracts

     —        82        —        82   

Total gross amount of assets (F)

   $ 68,377      $ 82      $   12,068      $ 80,527   

Liability derivatives

                                

Written options and swaptions, at value (D)

   $ (3,738 )    $ —      $ —      $ (3,738 ) 

Unrealized depreciation on futures contracts (D) (E)

     (51,969 )      —        —        (51,969 ) 

Unrealized depreciation on forward foreign currency contracts

     —        (8,378 )      —        (8,378 ) 

Total gross amount of liabilities (F)

   $   (55,707 )    $   (8,378 )    $ —      $   (64,085 ) 
  (C) Included within Investment securities, at value.
  (D) May include exchange-traded derivatives which are not subject to a master netting arrangement, or another similar arrangement.
  (E) Includes cumulative appreciation (depreciation) on futures contracts as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.
  (F) The Portfolio does not offset assets and liabilities that are subject to a master netting agreement or similar arrangement on the Statements of Assets and Liabilities.

The following tables present the Portfolio’s derivative assets and liabilities by counterparty net of amounts available for offset under a master netting agreement and net of the related collateral received/pledged by the Portfolio as of December 31, 2013:

Gross Amounts Not Offset in the Statements of Assets and Liabilities

Financial Assets and Derivative Assets, and Collateral Received as of December 31, 2013:

 

Counterparty   Gross Amounts of
Assets Presented in
Statements of Assets
and Liabilities (G)		     Value Eligible for
Offset		     Collateral
Received (H)		     Net Amount
(not less than $0)		  

BNP Paribas SA

   $ 82      $ —      $ —      $ 82   

Other Derivatives (I)

     80,445        —        —        80,445   

Total

   $     80,527      $     —      $     —      $     80,527   

Financial Liabilities and Derivative Liabilities, and Collateral Pledged as of December 31, 2013:

 

Counterparty   Gross Amounts of
Liabilities Presented in
Statements of Assets
and Liabilities (G)		     Value Eligible for
Offset		     Collateral
Pledged (H)		     Net Amount
(not less than $0)		  

Barclays Bank PLC

   $ 8,378      $ —      $ —      $ 8,378   

Other Derivatives (I)

     55,707        —        —        55,707   

Total

   $     64,085      $     —      $     —      $     64,085   
  (G) 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.
  (H) In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization.
  (I) Other Derivatives are not subject to a master netting arrangement or another similar arrangement.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    135

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

Effect of Derivative Instruments in the Statement of Operations for the year ended December 31, 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 swaptions (J)

   $ 44,425      $ —      $ —      $ 44,425   

Net realized gain (loss) on futures contracts

     (53,852 )      —        186,623        132,771   

Net realized gain (loss) on written options and swaptions

     (16,285 )      —        —        (16,285 ) 

Net realized gain (loss) on forward foreign currency contracts (K)

     —        (16,125 )      —        (16,125 ) 

Net change in unrealized appreciation (depreciation) on derivatives recognized in income

                                

Net change in unrealized appreciation (depreciation) on purchased options and swaptions (L)

     7,675        —        —        7,675   

Net change in unrealized appreciation (depreciation) on futures contracts

     4,824        —        9,704        14,528   

Net change in unrealized appreciation (depreciation) on written options and swaptions

     (2,057 )      —        —        (2,057 ) 

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (M)

     —        (1,796 )      —        (1,796 ) 

Total

   $   (15,270 )    $   (17,921 )    $   196,327      $   163,136   
  (J) Included within Net realized gain (loss) on transactions from Investment securities.
  (K) Included within Net realized gain (loss) on transactions from Foreign currency transactions.
  (L) Included within Net change in unrealized appreciation (depreciation) on Investment securities.
  (M) Included within Net change in unrealized appreciation (depreciation) on Translation of assets and liabilities denominated in foreign currencies.

For non-exchange traded derivatives, under standard derivatives agreements, the Portfolio may be required to post collateral on derivatives if the Portfolio 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 following table details the volume of derivative positions held during the year:

 

     Beginning number
of positions at
December 31, 2012		     Ending number of
positions at
December 31, 2013		     Average number
of positions (A)		  

Futures contracts

     1        —        1  (B) 
  (A) Calculated based on positions held at each month end during the current year.
  (B) Although there were no open positions at the beginning and/or the end of the year the Portfolio periodically invested in this derivative during the year.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    136

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 5. (continued)

 

The table below highlights the types of risk associated with the derivative instruments:

Effect of Derivative Instruments in the Statements of Operations for the year ended December 31, 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

     (31,262 )      (31,262 ) 

Total

   $     165,435      $     165,435   

International Equity:

The Portfolio is subject to various risks in the normal course of pursuing its investment objective. The following table details the volume of derivative positions held during the year:

 

     Beginning number
of positions at
December 31, 2012		     Ending number of
positions at
December 31, 2013		     Average number
of positions (A)		  

Forward foreign currency contracts

     1        —        7  (B) 
  (A) Calculated based on positions held at each month end during the current year.
  (B) Although there were no open positions at the beginning and/or the end of the year the Portfolio periodically invested in this derivative during the year.

The table below highlights the types of risk associated with the derivative instruments:

Effect of Derivative Instruments in the Statements of Operations for the year ended December 31, 2013:

Derivatives not accounted for as hedging instruments

 

Location   Foreign
exchange
contracts		     Total  

Net realized gain (loss) on derivatives recognized in income

                

Net realized gain (loss) on forward foreign currency contracts (C)

   $ 1,750,709      $ 1,750,709   

Net change in unrealized appreciation (depreciation) on derivatives recognized in income

                

Net change in unrealized appreciation (depreciation) on forward foreign currency transactions (D)

     367,901        367,901   

Total

   $     2,118,610      $     2,118,610   
  (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.

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 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. The Portfolios’ federal tax returns remain subject to examination by the Internal Revenue Service and state tax authorities for the prior three years. Management has evaluated the Portfolios’ tax provisions taken for all open tax years, and has concluded that no provision for income tax is required in the Portfolios’ financial statements. If applicable, the Portfolios recognize interest accrued related to unrecognized tax benefits in interest and penalties expense in Other on the Statements of Operations. The Portfolios identify their major tax jurisdictions as U.S. Federal, the State of Florida, the state of New York, and foreign jurisdictions where the Portfolios make significant investments; however, the Portfolios are not aware of any tax positions for which it is reasonably possible that the total

 

Transamerica Partners Portfolios   Annual Report 2013

Page    137

 

NOTES TO FINANCIAL STATEMENTS (continued)

At December 31, 2013

 

NOTE 6. (continued)

 

amounts of unrecognized tax benefits will change materially in the next twelve months. 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. These differences are primarily due to different treatment for items including, but not limited to, wash sales, structured notes, foreign bonds, swaps, net operating losses, distribution reclasses for REITs, passive foreign investment companies, foreign currency transactions, capital loss carryforwards, post-October loss deferrals, paydown gain/loss, foreign capital gains tax, and return of capital distributions from underlying investments.

NOTE 7. ACCOUNTING PRONOUNCEMENTS

In June 2013, the Financial Accounting Standards Board issued an update which sets forth a new approach for determining whether a public or private company qualifies as an Investment Company and requires certain additional disclosures. The adoption of this disclosure requirement is effective for financial statements interim and annual reporting periods beginning on or after December 15, 2013. Management is currently evaluating the implication, if any, of the additional disclosure requirements and its impact on the Portfolio’s financial statements.

NOTE 8. SUBSEQUENT EVENTS

Effective on or about May 1, 2014, TAM will terminate its investment sub-advisory agreements with BlackRock Financial Management, Inc. with respect to Transamerica Partners Balanced Portfolio and Transamerica Partners Core Bond Portfolio and will enter into new sub advisory agreements with AUIM, subject to shareholder approval. Upon the effective date of this change, TAM’s advisory fee is subject to change. AUIM is an affiliated sub-adviser.

Effective on or about May 1, 2014, TAM will terminate its investment sub-advisory agreement with Eaton Vance Management with respect to Transamerica Partners High Yield Bond Portfolio and will enter into a new sub advisory agreement with AUIM, subject to shareholder approval. Upon the effective date of this change, TAM’s advisory fee is subject to change. AUIM is an affiliated sub-adviser.

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 Portfolios   Annual Report 2013

Page    138

 

 

Report of Independent Registered Public Accounting Firm

To the Board of Trustees and Owners of Beneficial Interests of the Transamerica Partners Portfolios:

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Transamerica Partners Portfolios (comprising, respectively, Money Market Portfolio, High Quality Bond Portfolio, Inflation-Protected Securities Portfolio, Core Bond Portfolio, High Yield Bond Portfolio, Balanced Portfolio, Large Value Portfolio, Large Core Portfolio, Large Growth Portfolio, Mid Value Portfolio, Mid Growth Portfolio, Small Value Portfolio, Small Core Portfolio, Small Growth Portfolio and International Equity Portfolio) (collectively, the “Portfolios”) as of December 31, 2013, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended. These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the period ended prior to January 1, 2010 were audited by another independent registered public accounting firm whose report, dated March 1, 2010, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Portfolios’ internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2013, by correspondence with the custodian and others or by other appropriate auditing procedures where replies from others were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the aforementioned portfolios comprising Transamerica Partners Portfolios at December 31, 2013, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, in conformity with U.S. generally accepted accounting principles.

 

LOGO

Boston, Massachusetts

February 28, 2014

 

Transamerica Partners Portfolios   Annual Report 2013

Page    139

 

 

Board Members and Officers

The Board Members and executive officers of each Trust are listed below.

Interested Board Member means a board member who may be deemed an “interested person” (as that term is defined in the 1940 Act) of each Trust because of his current or former service with TAM or an affiliate of TAM. Interested Board Members may also be referred to herein as “Interested Trustees.” Independent Board Member means a Board Member who is not an “interested person” (as defined under the 1940 Act) of each Trust and may also be referred to herein as an “Independent Trustee.”

The Board governs each fund and is responsible for protecting the interests of the shareholders. The Board Members are experienced executives who meet periodically throughout the year to oversee the business affairs of each fund and the operation of each fund by its officers. The Board also reviews the management of each fund’s assets by the investment adviser and its respective sub-adviser.

The funds are among the funds advised and sponsored by TAM (collectively, “Transamerica Mutual Funds”). The Transamerica Mutual Funds consist of Transamerica Funds, Transamerica Series Trust (“TST”), Transamerica Income Shares, Inc. (“TIS”), Transamerica Partners Funds Group (“TPFG”), Transamerica Partners Funds Group II (“TPFG II”), Transamerica Partners Portfolios (“TPP”) and Transamerica Asset Allocation Variable Funds (“TAAVF”) and consists of 172 funds as of the date of this Annual Report.

The mailing address of each Board Member is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716.

The Board Members of each Trust and each Portfolio Trust, their year of birth, their positions with the Trusts, and their principal occupations for the past five years (their titles may have varied during that period) the number of funds in Transamerica Mutual Funds the Board oversees, and other board memberships they hold are set forth in the table below. The length of time served is provided from the date a Trustee became a Trustee of either of the Trusts or Transamerica Partners Portfolios.

 

Name and

Year of Birth

  

Position(s)

Held with

Trust

  

Term of

Office and

Length

of Time

Served*

   

Principal Occupation(s)

During Past Five Years

  

Number of

Funds in

Complex

Overseen

by Board

Member

  

Other

Directorships

During the Past

Five Years

INTERESTED BOARD MEMBERS

Thomas A. Swank

(1960)

   Chairman, Board Member, President and Chief Executive Officer   Since 2012   

President and Chief Executive Officer, Transamerica Individual Savings & Retirement (2010 – present);

 

President and Chief Executive Officer, Transamerica Capital Management (2009 – present);

 

Chairman (2013 – present), Board Member (2012 – present), President and Chief Executive Officer, Transamerica Funds, TST, TIS (2012 – present);

 

Chairman (2013 – present), Board Member (2013 – present), President and Chief Executive Officer, TPP, TPFG, TPFG II and TAAVF (2012 – present);

 

Director, Chairman of the Board, Chief Executive Officer and President, Transamerica Asset Management, Inc. (“TAM”) (2012 – present);

 

Director, Chairman of the Board, Chief Executive Officer and President, Transamerica Fund Services, Inc. (“TFS”) (2012 – present);

   172   N/A

 

Transamerica Partners Portfolios   Annual Report 2013

Page    140

 

 

Name and

Year of Birth

  

Position(s)

Held with

Trust

  

Term of

Office and

Length

of Time

Served*

   

Principal Occupation(s)

During Past Five Years

  

Number of

Funds in

Complex

Overseen

by Board

Member

  

Other

Directorships

During the Past

Five Years

INTERESTED BOARD MEMBERS—continued

Thomas A. Swank

(continued)

           

Director and Trust Officer, Massachusetts Fidelity Trust Company (2012 – present);

 

Division President, Monumental Life Insurance Company (2011 – present);

 

Division President, Western Reserve Life Assurance Co. of Ohio (2011 – present);

 

Vice President, Money Services, Inc. (2011 – present);

 

Director and President, Aegon Financial Services Group, Inc. (2010 – present);

 

Director, AFSG Securities Corporation (2010 – present);

 

Director and President, Transamerica Advisors Life Insurance Company (2010 – present);

 

Director, Chairman of the Board and President, Transamerica Advisors Life Insurance Company of New York (2010 – present);

 

Director and President, Transamerica Resources, Inc. (2010 – present);

 

Executive Vice President, Transamerica Life Insurance Company (2010 – present);

 

Executive Vice President, Transamerica Financial Life Insurance Company (2009 – present);

 

Director, Transamerica Capital, Inc. (2009 – present); and

 

President and Chief Operating Officer (2007 – 2009), Senior Vice President, Chief Marketing Officer (2006 – 2007), Senior Vice President, Chief Financial Officer (2003 – 2006), Senior Vice President, Chief Risk Officer (2000 – 2003), Senior Vice President, Chief Investment Officer (1997 – 2000), and High Yield Portfolio Manager (1992 – 1997), Security Benefit Corporation.

        

 

Transamerica Partners Portfolios   Annual Report 2013

Page    141

 

 

Name and

Year of Birth

  

Position(s)

Held with

Trust

  

Term of

Office and

Length

of Time

Served*

   

Principal Occupation(s)

During Past Five Years

  

Number of

Funds in

Complex

Overseen

by Board

Member

  

Other

Directorships

During the Past

Five Years

INTERESTED BOARD MEMBERS—continued

Alan F. Warrick

(1948)

   Board Member   Since 2012   

Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2012 – present);

 

Consultant, Aegon USA (2010 – 2011);

 

Senior Advisor, Lovell Minnick Equity Partners (2010 – present);

 

Retired (2010 – present); and Managing Director for Strategic Business Development, Aegon USA (1994 – 2010).

   172   First Allied
Holdings Inc.
(2013 – 2014)

INDEPENDENT BOARD MEMBERS

Sandra N. Bane

(1952)

   Board Member   Since 2008   

Retired (1999 – present); Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2008 – present);

 

Board Member, Transamerica Investors, Inc. (“TII”) (2003 – 2010); and

 

Partner, KPMG (1975 – 1999).

   172   Big 5 Sporting
Goods (2002 –
present); AGL
Resources,
Inc. (energy
services holding
company)
(2008 – present)

Leo J. Hill

(1956)

   Lead Independent Board Member   Since 2007   

Principal, Advisor Network Solutions, LLC (business consulting) (2006 – present);

 

Board Member, TST (2001 – present);

 

Board Member, Transamerica Funds and TIS (2002 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Market President, Nations Bank of Sun Coast Florida (1998 – 1999);

 

Chairman, President and Chief Executive Officer, Barnett Banks of Treasure Coast Florida (1994 – 1998);

 

Executive Vice President and Senior Credit Officer, Barnett Banks of Jacksonville, Florida (1991 – 1994); and Senior Vice President and Senior Loan Administration Officer, Wachovia Bank of Georgia (1976 – 1991).

   172   Ameris Bancorp
(2013 –
present); Ameris
Bank (2013 –
present)

 

Transamerica Partners Portfolios   Annual Report 2013

Page    142

 

 

Name and

Year of Birth

  

Position(s)

Held with

Trust

  

Term of

Office and

Length

of Time

Served*

   

Principal Occupation(s)

During Past Five Years

  

Number of

Funds in

Complex

Overseen

by Board

Member

  

Other

Directorships

During the Past

Five Years

INDEPENDENT BOARD MEMBERS—continued

David W. Jennings

(1946)

   Board Member   Since 2009   

Board Member, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 – present);

 

Board Member, TII (2009 – 2010);

 

Managing Director, Hilton Capital (2010 – present);

 

Principal, Maxam Capital Management, LLC (2006 – 2008); and

 

Principal, Cobble Creek Management LP (2004 – 2006).

   172   N/A

Russell A. Kimball, Jr

(1944)

   Board Member   2007   

General Manager, Sheraton Sand Key Resort (1975 – present);

 

Board Member, TST (1986 – present);

 

Board Member, Transamerica Funds, (1986 – 1990), (2002 – present);

 

Board Member, TIS (2002 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present); and Board Member, TII (2008 – 2010).

   172   N/A

Eugene M. Mannella

(1954)

   Board Member   Since 1993   

Chief Executive Officer, HedgeServ Corporation (hedge fund administration) (2008 – present);

 

Self-employed consultant (2006 – present);

 

Managing Member and Chief Compliance Officer, HedgeServ Investment Services, LLC (limited purpose broker-dealer) (2011 – present);

 

President, ARAPAHO Partners LLC (limited purpose broker-dealer) (1998 – 2008);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present);

 

Board Member, Transamerica Funds, TST and TIS (2007 – present);

 

Board Member, TII (2008 – 2010); and

 

President, International Fund Services (alternative asset administration) (1993 – 2005).

 

   172   N/A

 

Transamerica Partners Portfolios   Annual Report 2013

Page    143

 

 

Name and

Year of Birth

  

Position(s)

Held with

Trust

  

Term of

Office and

Length

of Time

Served*

   

Principal Occupation(s)

During Past Five Years

  

Number of

Funds in

Complex

Overseen

by Board

Member

  

Other

Directorships

During the Past

Five Years

INDEPENDENT BOARD MEMBERS—continued

Norman R.

Nielsen, Ph.D.

(1939)

   Board Member   Since 2007   

Retired (2005 – present);

 

Board Member, Transamerica Funds, TST and TIS (2006 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Interim President, Mt. Mercy University (2013 – present);

 

Director, Aspire Inc. (formerly, Iowa Student Loan Service Corporation) (2006 – present);

 

Director, League for Innovation in the Community Colleges (1985 – 2005);

 

Director, Iowa Health Systems (1994 – 2003);

 

Director, U.S. Bank (1985 – 2006); and

 

President, Kirkwood Community College (1985 – 2005).

   172   Buena Vista
University Board
of Trustees
(2004 – present);
Chairman
(2012 – present)

Joyce G. Norden

(1939)

   Board Member   Since 2002   

Retired (2004 – present);

 

Board Member, TPFG, TPFG II and TAAVF (1993 – present);

 

Board Member, TPP (2002 – present);

 

Board Member, Transamerica Funds, TST and TIS (2007 – present);

 

Board Member, TII (2008 – 2010); and

 

Vice President, Institutional Advancement, Reconstructionist Rabbinical College (1996 – 2004).

   172   Board of
Governors,
Reconstructionist
Rabbinical
College

(2007 – 2012)

Patricia L. Sawyer

(1950)

   Board Member   Since 1993   

Retired (2007 – present); President/Founder, Smith & Sawyer LLC (management consulting) (1989 – 2007);

 

Board Member, Transamerica Funds, TST and TIS (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (1993 – present);

 

Trustee, Chair of Finance Committee and Chair of Nominating Committee (1987 – 1996), Bryant University;

   172   Honorary
Trustee, Bryant
University
(1996 – present)

 

Transamerica Partners Portfolios   Annual Report 2013

Page    144

 

 

Name and

Year of Birth

  

Position(s)

Held with

Trust

  

Term of

Office and

Length

of Time

Served*

   

Principal Occupation(s)

During Past Five Years

  

Number of

Funds in

Complex

Overseen

by Board

Member

  

Other

Directorships

During the Past

Five Years

INDEPENDENT BOARD MEMBERS—continued

Patricia L. Sawyer

(continued)

           

Vice President, American Express (1987 – 1989);

 

Vice President, The Equitable (1986 – 1987); and

 

Strategy Consultant, Booz, Allen & Hamilton (1982 – 1986).

        

John W. Waechter

(1952)

   Board Member   Since 2007   

Attorney, Englander Fischer (2008 – present);

 

Retired (2004 – 2008);

 

Board Member, TST and TIS (2004 – present);

 

Board Member, Transamerica Funds (2005 – present);

 

Board Member, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Board Member, TII (2008 – 2010);

 

Employee, RBC Dain Rauscher (securities dealer) (2004);

 

Executive Vice President, Chief Financial Officer and Chief Compliance Officer, William R. Hough & Co. (securities dealer) (1979 – 2004); and

 

Treasurer, The Hough Group of Funds (1993 – 2004).

   172   Operation PAR,
Inc.

(2008 – present);

West Central
Florida Council –
Boy Scouts of
America

(2008 – 2013);
Remember
Honor Support,
Inc. (non-profit
organization)
(2013 – present)

 

* Each Board Member shall hold office until: 1) his or her successor is elected and qualified or 2) he or she resigns, retires or his or her term as a Board Member is terminated in accordance with the Trust’s Declaration of Trust.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    145

 

 

OFFICERS

The mailing address of each officer is c/o Secretary, 570 Carillon Parkway, St. Petersburg, Florida 33716. The following table shows information about the officers, including their year of birth, their positions held with each Trust and their principal occupations during the past five years (their titles may have varied during that period). Each officer will hold office until his or her successor has been duly elected or appointed or until his or her earlier death, resignation or removal.

 

Name and
Year of Birth		   Position    Term of Office
and Length of
Time Served*		   Principal Occupation(s) or Employment
During Past Five  Years

Thomas A. Swank

(1960)

   Chairman, Board Member, President and Chief Executive Officer    Since 2012   See Table Above.

Timothy S. Galbraith

(1964)

   Vice President and Chief Investment Officer, Alternative Investments    Since 2012  

Vice President and Chief Investment Officer, Alternative Investments, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2012 – present);

 

Senior Vice President and Chief Investment Officer, Alternative Investments (2012 – present), TAM;

 

Head of Alternative Investment Strategies, Morningstar Associates, LLC (2009 – 2012); and Managing Director, Bear Stearns Asset Management (2001 – 2009).

Dennis P. Gallagher

(1970)

   Vice President, General Counsel and Secretary    Since 2007  

Vice President, General Counsel and Secretary, Transamerica Funds, TST and TIS (2006 – present);

 

Vice President, General Counsel and Secretary, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Vice President, General Counsel and Secretary, TII, (2006 – 2010);

 

Director, Senior Vice President, General Counsel, Operations and Secretary, TAM (2006 – present);

 

Director, Senior Vice President, General Counsel, Chief Administrative Officer and Secretary, TFS (2006 – present);

 

Assistant Vice President, TCI (2007 – present);

 

Director, Deutsche Asset Management (1998 – 2006); and Corporate Associate, Ropes & Gray LLP (1995 – 1998).

Todd R. Porter

(1961)

   Vice President and Chief Investment Officer, Asset Allocation    Since 2012  

Vice President and Chief Investment Officer, Asset Allocation, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2012 – present);

 

Senior Vice President and Chief Investment Officer, Asset Allocation (2012 – present), TAM;

 

Chief Investment Officer, Fund Architects, LLC (2007 – 2012); and

 

Chief Investment Strategist, Morningstar Associates, LLC (1999 – 2006).

Christopher A. Staples

(1970)

   Vice President and Chief Investment Officer, Advisory Services    Since 2007   Vice President and Chief Investment Officer, Advisory Services (2007 – present), Senior Vice President – Investment Management (2006 – 2007), Vice President – Investment Management (2005 – 2006), Transamerica Funds, TST and TIS;

 

Transamerica Partners Portfolios   Annual Report 2013

Page    146

 

 

Name and
Year of Birth		   Position    Term of Office
and Length of
Time Served*		   Principal Occupation(s) or Employment
During Past Five  Years

Christopher A. Staples

(continued)

           

Vice President and Chief Investment Officer, Advisory Services, TPP, TPFG, TPFG II and TAAVF (2007 – present);

 

Vice President and Chief Investment Officer (2007 – 2010); Vice President – Investment Administration (2005 – 2007), TII;

 

Director (2005 – present), Senior Vice President (2006 – present) and Chief Investment Officer, Advisory Services (2007 – present), TAM;

 

Director, TFS (2005 – present); and Assistant Vice President, Raymond James & Associates (1999 – 2004).

Erin E. King

(1976)

   Vice President, Chief Compliance Officer and Anti-Money Laundering Officer    Since 2013  

Vice President, Chief Compliance Officer and Anti-Money Laundering Officer, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2013 – present);

 

Vice President, Chief Compliance Officer and Chief Risk Officer, TAM (2013 – present); Vice President, TFS (2013 – present);

 

Managing Director and Chief Compliance Officer, Guggenheim Partners Investment Management, LLC (2007 – 2013);

 

Regulatory Affairs Compliance Officer, Western Asset Management Company (2004 – 2007);

 

Compliance Officer, Citigroup Asset Management (2002 – 2004); and Compliance Examiner, National Association of Securities Dealers (now, FINRA) (1999 – 2002).

Elizabeth Strouse

(1974)

   Vice President, Treasurer and Principal Financial Officer    Since 2010  

Vice President, Treasurer and Principal Financial Officer (2011 – present), Assistant Treasurer (2010 – 2011), Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF;

 

Vice President and Chief Accounting Officer, TAM and TFS (2009 – present);

 

Director, Fund Administration, TIAA-CREF (2007 – 2009); and

 

Manager (2006 – 2007) and Senior (2003 – 2006) Accounting and Assurance, PricewaterhouseCoopers, LLC.

Sarah L. Bertrand

(1967)

   Assistant Secretary    Since 2009  

Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 – present);

 

Assistant Secretary, TII (2009 – 2010);

 

Assistant Vice President and Director, Legal Administration, TAM and TFS (2007 – present);

 

Assistant Secretary and Chief Compliance Officer, 40|86 Series Trust and 40|86 Strategic Income Fund (2000 – 2007); and Second Vice President and Assistant Secretary, Legal and Compliance, 40|86 Capital Management, Inc. (1994 – 2007).

 

Transamerica Partners Portfolios   Annual Report 2013

Page    147

 

 

Name and
Year of Birth		   Position    Term of Office
and Length of
Time Served*		   Principal Occupation(s) or Employment
During Past Five  Years
Timothy J. Bresnahan (1968)   Assistant Secretary    Since 2009  

Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2009 – present);

 

Assistant Secretary, TII (2009 – 2010); and Vice President and Senior Counsel, TAM (2008 – present).

Richard J. Wirth

(1958)

   Assistant Secretary    Since 2013  

Assistant Secretary, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2013 – present);

 

Director, Senior Vice President, Division General Counsel and Secretary, Transamerica Advisors Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Transamerica Advisors Life Insurance Company of New York (2012 – present);

 

Vice President and Division General Counsel, Transamerica Financial Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Transamerica Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Monumental Life Insurance Company (2012 – present);

 

Senior Vice President and Division General Counsel, Western Reserve Life Assurance Co. of Ohio (2012 – present);

 

Secretary, Aegon Financial Services Group, Inc. (2012 – present); and

 

Assistant General Counsel, The Hartford (2004 – 2012).

Matthew H. Huckman, Sr.

(1968)

   Tax Manager    Since 2014  

Tax Manager, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2014 – present);

 

Tax Manager, TFS (2012 – present); and

 

Assistant Mutual Fund Tax Manager, Invesco (2007 – 2012).

Maria P. Sell

(1978)

   Assistant Treasurer    Since 2013  

Assistant Treasurer, Transamerica Funds, TST, TIS, TPP, TPFG, TPFG II and TAAVF (2013 – present);

 

Director, Fund Administration, TAM (2012 – present);

 

Vice President, Fund Administration, J.P. Morgan (2010 – 2012); and

 

Assurance Manager, PricewaterhouseCoopers LLP (2006 – 2010).

 

* Elected and serves at the pleasure of the Board of each Trust.

If an officer has held offices for different funds for different periods of time, the earliest applicable date is shown. No officer of the Trust, except for the Chief Compliance Officer, receives any compensation from the Trust.

 

Transamerica Partners Portfolios   Annual Report 2013

Page    148

TRANSAMERICA FINANCIAL LIFE INSURANCE COMPANY

c/o Transamerica Retirement Solutions

440 Mamaroneck Avenue

Harrison, NY 10528

 

 

Item 2: Code of Ethics.

 

(a) The Registrant has adopted a code of ethics that applies to its principal executive officer, principal financial officer, and any other officers who serve a similar function.
(b) The Registrant’s code of ethics is reasonably designed as described in this Form N-CSR.
(c) During the period covered by the report no amendments were made to the provisions of this code of ethics.
(d) During the period covered by the report, the Registrant did not grant any waivers, including implicit waivers, from the provisions of this code of ethics.
(e) Not Applicable.
(f) The Registrant has filed this code of ethics as an exhibit pursuant to Item 12(a)(1) of Form N-CSR.

Item 3: Audit Committee Financial Experts.

The Registrant’s Board of Trustees has determined that Sandra N. Bane, John W. Waechter and Eugene M. Mannella are “audit committee financial experts,” as such term is defined in Item 3 of Form N-CSR. Ms. Bane, Mr. Waechter and Mr. Mannella are “independent” under the standards set forth in Item 3 of Form N-CSR. The designation of Ms. Bane, Mr. Waechter and Mr. Mannella as “audit committee financial experts” pursuant to Item 3 of Form N-CSR does not (i) impose upon them any duties, obligations, or liabilities that are greater than the duties, obligations and liabilities imposed upon them as a member of the Registrant’s audit committee or Board of Trustees in the absence of such designation; or (ii) affect the duties, obligations or liabilities of any other member of the Registrant’s audit committee or Board of Trustees.

Item 4: Principal Accountant Fees and Services.

 

     (in thousands)    Fiscal Year Ended 12/31  
          2013     2012  

(a)

    Audit Fees      14        13   

(b)

    Audit-related Fees (1)      —          —     

(c)

    Tax Fees (2)      —          —     

(d)

    All Other Fees (3)      —          —     

(e) (1)

    Pre-approval policy (4)      —          —     

(e) (2)

    % of above that were pre-approved      0 %      0 % 

(f)

    If greater than 50%, disclose hours      N/A        N/A   

(g)

    Non-audit fees rendered to Adviser (or affiliate that provided services to the Registrant)      N/A        N/A   

(h)

    Disclose whether the Audit Committee has considered whether the provisions of non-audit services rendered to the Adviser that were NOT pre-approved is compatible with maintaining the auditor’s independence.      Yes        Yes   

 

  (1)  Audit-Related Fees represent assurance and related services provided that are reasonably related to the performance of the audit of the financial statements of the Registrant, specifically data verification and agreed-upon procedures related to asset securitizations and agreed-upon procedures engagements.

  (2)  Tax Fees represent tax compliance, tax planning and tax advice services provided in connection with the preparation and review of the Registrant’s tax returns.
  (3)  All Other Fees represent permissible non-audit services for the Registrant that it believes are routine and recurring services, and would not impair the independence of the accountant.
  (4)  Audit Committee Preapproval Policy (“Procedures”). Generally, the Registrant’s Audit Committee must preapprove (i) all audit and non-audit services performed for the Registrant by the independent accountant and (ii) all non-audit services performed by the Registrant’s independent accountant for the Registrant’s investment adviser, and certain of the adviser’s affiliates that provide ongoing services to the Registrant, if the services to be provided by the accountant relate directly to the operations and financial reporting of the Registrant.

The Audit Committee may delegate preapproval authority to one or more of its members. The member or members to whom such authority is delegated shall report any preapproval decisions to the Audit Committee at its next scheduled meeting.

In accordance with the Procedures, the annual audit services engagement terms and fees for the Registrant will be subject to the preapproval of the Audit Committee. In addition to the annual audit services engagement approved by the Audit Committee, the Audit Committee may grant preapproval for other audit services, which are those services that only the independent accountant reasonably can provide.

Requests or applications to provide services that require separate approval by the Audit Committee will be submitted to the Audit Committee by both the independent accountant and the Registrant’s treasurer, and must include a joint statement as to whether, in their view, the request or application is consistent with the Securities and Exchange Commissions’ rules on auditor independence.

Management will promptly report to the Chair of the Audit Committee any violation of this Procedure of which it becomes aware.

Item 5: Audit Committee of Listed Registrants.

The following individuals comprise the standing Audit Committee: Sandra N. Bane, Leo J. Hill, David W. Jennings, Russell A. Kimball, Jr., Eugene M. Mannella, Norman R. Nielsen, Joyce G. Norden, Patricia L. Sawyer and John W. Waechter.

Item 6: Schedule of Investments.

 

  (a) The schedules of investments are included in the 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)    The Registrant’s code of ethics (that is the subject of the disclosure required by Item 2(a)) is attached.
  (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

Date: February 28, 2014

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: February 28, 2014

 

By:   /s/ Elizabeth Strouse
 

Elizabeth Strouse

Principal Financial Officer

Date: February 28, 2014

EXHIBIT INDEX

 

Exhibit No.

  

Description of Exhibit

12(a)(1)   Code of Ethics for Principal Executive and Principal Financial Officers
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